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10-QPeriod: Q1 FY2022

BOSTON SCIENTIFIC CORP Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 5, 2022For Securities:BSX

Summary

Boston Scientific Corporation reported strong net sales growth of 10.0% to $3.026 billion for the first quarter of 2022, driven by the recovery of elective procedures and contributions from recent acquisitions, most notably Baylis Medical. While reported net income available to common stockholders decreased year-over-year due to significant non-GAAP adjustments, the company's operational performance remained robust. Adjusted net income available to common stockholders increased to $562 million, or $0.39 per diluted share, reflecting disciplined cost management and effective integration of new businesses. The company's balance sheet remains strong, with ample liquidity and a healthy leverage ratio well within its credit facility covenants, positioning it for continued investment in innovation and strategic growth.

Financial Statements
Beta
Revenue$3.03B
Cost of Revenue$955.00M
Gross Profit$2.07B
SG&A Expenses$1.06B
Operating Expenses$1.60B
Operating Income$466.00M
Interest Expense$279.00M
Net Income$110.00M
EPS (Basic)$0.07
EPS (Diluted)$0.07
Shares Outstanding (Basic)1.43B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Net sales increased by 10.0% to $3.026 billion, driven by a recovery in procedure volumes and the acquisition of Baylis Medical.
  • 2Gross profit margin improved to 68.4% from 67.5% in the prior year, benefiting from higher sales volumes and favorable mix, despite inflationary pressures.
  • 3Adjusted net income available to common stockholders grew to $562 million ($0.39 per diluted share), up from $524 million ($0.37 per diluted share) in Q1 2021, indicating strong underlying operational profitability.
  • 4Significant investments in Research and Development (R&D) increased by 16% to $319 million, underscoring the company's commitment to innovation.
  • 5The company completed the significant acquisition of Baylis Medical Company for $1.471 billion, enhancing its electrophysiology and structural heart product portfolios.
  • 6Total debt remained substantial at $9.305 billion, but the company maintained a leverage ratio of 2.72 times, well below the 3.75 times covenant limit on its revolving credit facility.
  • 7The company continues to manage significant legal and product liability matters, particularly related to transvaginal surgical mesh and vena cava filters, with ongoing settlement discussions and litigation.

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