What were the primary drivers of revenue growth in Q1 2016?

Revenue growth was primarily driven by the Cardiovascular segment (especially Interventional Cardiology) and the MedSurg segment. The acquisition of the AMS male urology portfolio in August 2015 also contributed significantly to the Urology and Pelvic Health business sales.

How did the company's profitability change compared to the prior year?

Boston Scientific achieved profitability in Q1 2016 with a net income of $202 million, a significant turnaround from a net loss of $1 million in Q1 2015. This improvement was driven by higher sales, improved gross margins, and a lower tax rate, despite increased operating expenses and amortization.

What is the current status of the company's legal and restructuring matters?

The company continues to manage significant litigation and restructuring charges. In Q1 2016, litigation-related charges were $10 million and restructuring charges were $3 million. While these items impact reported earnings, the company also reports 'adjusted' figures excluding these and other non-recurring items to provide a clearer view of operational performance. The company also notes ongoing tax disputes with the IRS, which could have a material impact.

How is the company managing its debt and liquidity?

Boston Scientific maintained a total debt of $5.677 billion as of March 31, 2016. The company had $338 million in cash and cash equivalents and a $2 billion revolving credit facility, with no amounts borrowed as of the reporting date. The company was in compliance with its debt covenants, demonstrating strong liquidity.

BSX 10-Q Quarterly Report Q1 FY2016 — Revenue, Net Income, EPS

Summary

Boston Scientific Corporation reported strong top-line growth in its first quarter of 2016, with net sales increasing by 11% to $1.964 billion compared to the prior year. This growth was primarily driven by the Cardiovascular and MedSurg segments, bolstered by the recent acquisition of the AMS male urology portfolio. The company also achieved positive net income of $202 million, a significant turnaround from a net loss in the same period last year, and improved operating cash flow. While the company continues to manage ongoing litigation and restructuring charges, the underlying operational performance appears robust, indicating a positive trajectory.

Financial Highlights

50 data points

Beta

Revenue

$1.96B

0.7% Gross Margin

Net Income

$202.00M

0.1% Net Margin

EPS (Diluted)

$0.15

Total Assets

$17.72B

Cash & Equivalents

$338.00M

Free Cash Flow

$56.00M

Financial Statements

Beta

Revenue	$1.96B
Cost of Revenue	$573.00M
Gross Profit	$1.39B
SG&A Expenses	$716.00M
Operating Expenses	$1.10B
Operating Income	$293.00M
Interest Expense	$59.00M
Net Income	$202.00M
EPS (Basic)	$0.15
EPS (Diluted)	$0.15
Shares Outstanding (Basic)	1.35B
Shares Outstanding (Diluted)	1.37B

Key Highlights

1Net sales increased by 11% year-over-year to $1.964 billion, driven by strong performance in Cardiovascular and MedSurg segments.
2The company reported a net income of $202 million ($0.15 per diluted share), a substantial improvement from a net loss of $1 million in the prior year's quarter.
3Operating cash flow turned positive, showing $116 million in the first quarter of 2016, a significant improvement from negative $197 million in Q1 2015.
4The acquisition of the AMS male urology portfolio contributed approximately $98 million in net sales during the quarter.
5Gross profit margin improved slightly to 70.8% from 70.6%, attributed to manufacturing cost reductions.
6Operating expenses, including SG&A and R&D, saw increases, but as a percentage of net sales, SG&A decreased.
7The company remains compliant with its debt covenants, with a leverage ratio of 2.9x and an interest coverage ratio of 7.0x as of March 31, 2016.

BOSTON SCIENTIFIC CORP Quarterly Report for Q1 Ended Mar 31, 2016

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions