HIGHLIGHTS:
Q4:
- Net sales of $1.6 billion, an increase of 70 percent
- Worldwide coronary stent sales of $730 million, an increase of 374 percent
- Net income, excluding net special charges, of $419 million, an increase of 197 percent
- Earnings per share, excluding net special charges, of $0.49 per share
2004:
- Net sales of $5.624 billion, an increase of 62 percent
- Worldwide coronary stent sales of $2.351 billion, an increase of 345 percent
- Net income, excluding net special charges, of $1.394 billion, an increase of 168 percent
- Earnings per share, excluding net special charges, of $1.63 per share
FOURTH QUARTER 2004
Net sales for the fourth quarter of 2004 were $1.6 billion as compared to $939 million for the fourth quarter of 2003, an increase of 70 percent. Excluding the favorable impact of $35 million of foreign currency fluctuations, net sales increased 67 percent.
Net income for the quarter, excluding net special charges, increased 197 percent to $419 million, or $0.49 per share, as compared to $141 million, excluding net special charges, or $0.17 per share in the fourth quarter of 2003. Reported net income for the quarter, including net special charges of $122 million, was $297 million, or $0.35 per share, as compared to reported net income of $137 million, or $0.16 per share, in the fourth quarter of 2003. The net special charges for the fourth quarter of 2004 consist primarily of a $60 million non-cash charge resulting from certain stock option modifications and a $61 million charge related to taxes on the approximately $1 billion that the Company plans to repatriate in 2005 under the American Jobs Creation Act of 2004.
YEAR-END 2004
Net sales for the year ended December 31, 2004 were $5.624 billion as compared to $3.476 billion in 2003, an increase of 62 percent. Excluding the favorable impact of $155 million of foreign currency fluctuations, net sales increased 57 percent.
Net income for the year, excluding net special charges, increased 168 percent to $1.394 billion, or $1.63 per share, as compared to $521 million, excluding net special charges, or $0.62 per share for the year ended December 31, 2003. Reported net income for the year, including net special charges of $332 million, was $1.062 billion, or $1.24 per share, as compared to reported net income of $472 million, or $0.56 per share, for the prior year.
"I would like to congratulate the entire Boston Scientific team for a year of historic achievement," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "Our performance in 2004, fueled by the success of our TAXUS® Express2™ stent system, was nothing short of remarkable and speaks to a truly global effort."
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: www.bostonscientific.com.
The Company discloses non-GAAP or pro forma measures that exclude certain charges. Non-GAAP measures may exclude such items as charges related to purchased in-process research and development and certain litigation. Management uses these measures to establish operational goals, and believes that non-GAAP measures may assist investors in analyzing the underlying trends in the Company's business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for, or as superior to, financial reporting measures prepared in accordance with GAAP.
This press release contains forward-looking statements. The Company wishes to caution the reader of this press release that actual results may differ from those discussed in the forward-looking statements and may be adversely affected by, among other things, risks associated with new product development and introduction, clinical trials, regulatory approvals, competitive offerings, intellectual property, litigation, the Company