Boston Scientific Corporation Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2012; Provides Earnings Guidance for the First Quarter and Year of 2013
For the year, the company reported net sales of $7,249 million against $7,622 million a year ago. Operating loss was $3,868 million against operating income of $904 million a year ago. Loss before income taxes was $4,107 million against income before income taxes of $642 million a year ago. Net loss was $4,068 million or $2.89 per diluted share against net income of $441 million or $0.29 per diluted share a year ago. Adjusted net income was $933 or $0.66 per diluted share against $1,018 million or $0.67 per diluted share a year ago. For the full year, capital expenditures were $226 million in 2012 compared to $304 million in 2011. The lower capital expenditure in 2012 compared to 2011 was primarily due to the timing of infrastructure investments. Full year reported operating cash flow was $1,260,000,000 compared to $1 billion in 2011.
The company estimates sales for the first quarter of 2013 in a range of $1.740 to $1.815 billion. The company estimates earnings on a GAAP basis in a range of $0.04 to $0.07 per share. Adjusted earnings, excluding acquisition- and restructuring-related charges; and amortization expense, are estimated in a range of $0.14 to $0.17 per share. The forecasted decline in the first quarter is primarily driven by tougher year-over-year comparisons and the impact of less selling days than in the prior period. On an adjusted days basis, first quarter operational revenues are expected to be more in the range of down 0 or flat to down 4%.
The company estimates sales for the full year 2013 in a range of $7.050 to $7.350 billion. The company estimates earnings on a GAAP basis in a range of $0.29 to $0.37 per share. Adjusted earnings, excluding divestiture-related net credits, acquisition- and restructuring-related charges; and amortization expense, are estimated in a range of $0.64 to $0.70 per share. The company expects its adjusted gross margin for the year, as a percent of sales, to be similar to 2012. For the full year, the company expects adjusted SG&A as a percent of sales to be between 35% and 36%. The company expects its adjusted tax rate for the full year 2013 to be between 11% and 13%. This reflects an operational tax rate for 2013 between 13% and 15%, reduced by 2% for the retroactive extension of the U.S. The company expects adjusted free cash flow to exceed $1.2 billion, CapEx of approximately $300 million, pretax amortization expense of roughly $100 million per quarter and stock comp expense of approximately $110 million.