Guidance

Boston Scientific Corporation (NYSE: BSX) today announced that it has reached an agreement in principle with the U.S. Department of Justice related to product advisories issued by its Guidant subsidiary in 2005. The alleged conduct and product sales occurred prior to Boston Scientific's 2006 acquisition of Guidant.

Boston Scientific had previously disclosed an investigation by the U.S. Attorney's Office in Minneapolis into alleged violations of the Food, Drug, and Cosmetic Act by Guidant. Under the terms of the agreement, Guidant will plead to two misdemeanor charges related to failure to include information in reports to the U.S. FDA, and Boston Scientific will pay $296 million on behalf of Guidant.

U.S. GAAP require that this agreement be recorded in the third quarter, as it occurred after the October 19 release of the Company's third quarter financial results and before the filing of the Company's Quarterly Report on Form 10-Q. Accordingly, the Company has updated its financial results for the third quarter and nine months ended September 30, 2009, recording a third quarter charge of $294 million, on both a pre-tax and after-tax basis. This amount represents the $296 million charge associated with the agreement net of a $2 million reversal of a related accrual.

"We are pleased this investigation has been resolved," said Ray Elliott, President and Chief Executive Officer of Boston Scientific. "Guidant and its employees acted in good faith and believed they complied with applicable laws and regulations. We elected to resolve this matter so we could put it behind us and devote our full energies and resources to developing our innovative technologies."

The only products involved in the investigation were the VENTAK PRIZM(®) 2, the CONTAK RENEWAL(®) and the CONTAK RENEWAL 2 devices, which were the subjects of the 2005 product advisories.

View the release to see the adjustments.

In addition, the Company has updated its FY09 GAAP earnings per share guidance as a result of recording this charge. The Company now expects net income on a GAAP basis of $0.23 to $0.28 per share for the full year ending December 31, 2009. The Company continues to expect adjusted earnings -- excluding intangible asset impairment charges; acquisition-, divestiture-, and litigation-related net charges; restructuring and restructuring-related costs; discrete tax items; and amortization expense -- of between $0.75 and $0.79 per share.

State Street Corporation (NYSE: STT) today announced that it has added $250 million, as of September 30, 2009, to the reserve it established in 2007 to address legal exposure related to losses incurred by investors in certain active fixed-income strategies managed by State Street Global Advisors. The Company believes the adjusted reserve should be sufficient to account for a potential resolution of proceedings by the Securities and Exchange Commission and other governmental authorities, and to address ongoing litigation with respect to this matter.

Since 2007, SSgA has made significant changes to its organization, including establishing new leadership, and has made substantial investments in its operating platform, including its risk management and compliance operations.

State Street also announced that it recently entered into a settlement of the purported class action with respect to ERISA participants in the active fixed -income strategies. The proposed settlement of $89.75 million is subject to court approval.

Prior to recording the $250 million provision for legal exposure, the legal reserve totaled $193 million. After giving effect to the $250 million provision, the reserve as of September 30, 2009, as adjusted is $443 million, and should be sufficient to settle the above matters, including the purported class action.

For Q309, updated reported results are EPS of $0.66 on net income of $327 million. Return on common shareholders' equity is 10.2%, down from the previously announced 16.0%. Operating-basis results for the third quarter of 2009 exclude the provision for legal exposure and are unchanged from the operating-basis results announced on October 20, 2009.

State Street's outlook for FY09 remains unchanged with operating basis revenue expected to decline about 16% from the record level of 2008; operating EPS, excluding the impact of the extraordinary loss recorded upon consolidation of the commercial paper conduits in the second quarter of 2009, and the provision for legal exposure announced today, to be between $4.13 and $4.17 and operating return on equity to be between 14 and 17%.

LifePoint Hospitals, Inc. (NASDAQ: LPNT) reports Q3 EPS of $0.59, 3 cents better than the analyst estimate of $0.56. Revenue for the quarter was $745 million, which compares to the estimate of $729.86 million.

Confirms FY09 guidance. Sees FY09 revs of $2.9 billion to $3 billion, and EPS of $2.35 - $2.55. Consensus sees $2.94 billion and $2.44, respectively.

Res-Care Inc. (NASDAQ: RSCR) reports Q3 EPS of $0.35, even with the analyst estimate of $0.35. Revenue for the quarter was $395.80 million, which compares to the estimate of $401.61 million.

Confirms FY09 revs of $1.60 - $1.63 billion and EPS of $1.30 - $1.34. Consensus is $1.61 billion and $1.32, respectively.

U-Store-It Trust (NYSE: YSI) reports Q3 FFO of $0.18, versus the analyst estimate of ($0.04). Revenue for the quarter was $54.86 million, which compares to the estimate of $55.12 million.

Sees FY09 FFO per share of $0.72 - $0.73