STAINES-UPON-THAMES,
Net sales were
"We continue to be very pleased with the underlying financial strength and cash flow generation capability of our business, resulting in the third consecutive increase to our EPS guidance this year," said
Trudeau continued, "We remain focused on strengthening our balance sheet through debt reduction and we also are working to resolve near term uncertainties in our business, particularly opioid litigation and the separation of our Specialty Generics segment."
COMPANY FINANCIAL RESULTS
Gross profit was
Selling, general and administrative (SG&A) expenses were
Research and development expenses were
Interest expense was
Income tax benefit was
Nine-Month Fiscal 2019 Results
Net sales were
On a GAAP1 basis, net income was
Adjusted net income was
BUSINESS SEGMENT RESULTS
Specialty Brands Segment
Net sales for the segment in the third quarter 2019 were
Specialty Generics Segment
The segment reported third quarter net sales in 2019 of
LIQUIDITY
Cash provided by operating activities in the third quarter was
During the quarter, the company drew the remaining
2019 FINANCIAL GUIDANCE UPDATE
CONFERENCE CALL AND WEBCAST
ABOUT
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted earnings per share, adjusted gross profit, adjusted SG&A, net sales growth on a constant-currency basis, adjusted effective tax rate, net debt and free cash flow, which are considered "non-GAAP" financial measures under applicable
Adjusted net income, adjusted gross profit and adjusted SG&A represent amounts prepared in accordance with accounting principles generally accepted in the U.S. (GAAP) and adjusted for certain items that management believes are not reflective of the operational performance of the business. The adjustments for these items are on a pre-tax basis for adjusted gross profit and adjusted SG&A and on an after-tax basis for adjusted net income. Adjustments to GAAP amounts include, as applicable to each measure, amortization and non-restructuring impairment charges; restructuring and related charges, net; inventory step-up expenses; discontinued operations; changes in fair value of contingent consideration obligations; acquisition-related expenses; significant legal and environmental charges; losses/gains on repurchase of debt; separation costs; research and development upfront payments; tax effects of aforementioned adjustments, changes in related uncertain tax positions, as well as impacts from certain transactions, such as acquisitions or reorganizations; and other items identified by the company. Adjusted diluted earnings per share represent adjusted net income divided by the number of diluted shares.
The adjusted effective tax rate is calculated as the income tax effects on continuing and discontinued operations plus the income tax impact included in
Net sales growth on a constant-currency basis measures the change in net sales between current- and prior-year periods using a constant currency, the exchange rate in effect during the applicable prior-year period.
Free cash flow for the third quarter represents net cash provided by operating activities of
Free cash flow for the year to date represents net cash provided by operating activities of
Net debt as of
The company has provided these adjusted financial measures because they are used by management, along with financial measures in accordance with GAAP, to evaluate the company's operating performance. In addition, the company believes that these adjusted measures will be used by certain investors to measure
These adjusted measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The company's definition of these adjusted measures may differ from similarly titled measures used by others.
Because adjusted financial measures exclude the effect of items that will increase or decrease the company's reported results of operations, management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. A reconciliation of certain of these historical adjusted financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release.
Guidance on the company's 2019 diluted earnings per share and effective tax rate has been provided only on a non-GAAP basis. This is due to the inherent difficulty of forecasting the timing or amount of items that would be included in the most directly comparable forward-looking GAAP financial measures. Because reconciliation is not available without unreasonable effort, it is not included in this release.
Further information regarding non-GAAP financial measures can be found on the Investor Relations page of the company's website.
CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING STATEMENTS
Statements in this document that are not strictly historical, including statements regarding future financial condition and operating results, economic, business, competitive and/or regulatory factors affecting
There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other things: general economic conditions and conditions affecting the industries in which
These and other factors are identified and described in more detail in the "Risk Factors" section of
CONTACTS
Investor Relations
Vice President, Investor Relations and IRO
314-654-3638
daniel.speciale@mnk.com
Media
Kekst CNC
212-521-4879
mallinckrodt@kekstcnc.com
1 Generally accepted accounting principles in
MALLINCKRODT PLC |
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
(unaudited, in millions, except per share data) |
|||||||||||
Three Months Ended |
|||||||||||
September 27, |
Percent of Net sales |
September 28, |
Percent of Net sales |
||||||||
Net sales |
$ |
743.7 |
100.0 |
% |
$ |
799.9 |
100.0 |
% |
|||
Cost of sales |
419.4 |
56.4 |
433.5 |
54.2 |
|||||||
Gross profit |
324.3 |
43.6 |
366.4 |
45.8 |
|||||||
Selling, general and administrative expenses |
205.7 |
27.7 |
193.4 |
24.2 |
|||||||
Research and development expenses |
103.1 |
13.9 |
86.1 |
10.8 |
|||||||
Restructuring charges, net |
7.2 |
1.0 |
14.8 |
1.9 |
|||||||
Non-restructuring impairment charge |
— |
— |
2.0 |
0.3 |
|||||||
Loss on divestiture |
— |
— |
0.6 |
0.1 |
|||||||
Operating income |
8.3 |
1.1 |
69.5 |
8.7 |
|||||||
Interest expense |
(77.6) |
(10.4) |
(93.6) |
(11.7) |
|||||||
Interest income |
2.9 |
0.4 |
2.0 |
0.3 |
|||||||
Other income, net |
37.9 |
5.1 |
13.4 |
1.7 |
|||||||
Loss from continuing operations before income taxes |
(28.5) |
(3.8) |
(8.7) |
(1.1) |
|||||||
Income tax benefit |
(27.6) |
(3.7) |
(122.9) |
(15.4) |
|||||||
(Loss) income from continuing operations |
(0.9) |
(0.1) |
114.2 |
14.3 |
|||||||
Loss from discontinued operations, net of income taxes |
(0.2) |
— |
(0.4) |
(0.1) |
|||||||
Net (loss) income |
$ |
(1.1) |
(0.1) |
% |
$ |
113.8 |
14.2 |
% |
|||
Basic earnings per share: |
|||||||||||
(Loss) income from continuing operations |
$ |
(0.01) |
$ |
1.37 |
|||||||
Loss from discontinued operations |
— |
— |
|||||||||
Net (loss) income |
$ |
(0.01) |
$ |
1.37 |
|||||||
Basic weighted-average shares outstanding |
84.0 |
83.2 |
|||||||||
Diluted earnings per share: |
|||||||||||
(Loss) income from continuing operations |
$ |
(0.01) |
$ |
1.34 |
|||||||
Loss from discontinued operations |
— |
— |
|||||||||
Net (loss) income |
$ |
(0.01) |
$ |
1.34 |
|||||||
Diluted weighted-average shares outstanding |
84.0 |
85.0 |
MALLINCKRODT PLC |
|||||||||||||||||||||||||||
NON-GAAP MEASURES |
|||||||||||||||||||||||||||
(unaudited, in millions except per share data) |
|||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||
September 27, 2019 |
September 28, 2018 |
||||||||||||||||||||||||||
Gross |
SG&A |
Net |
Diluted per share |
Gross |
SG&A |
Net |
Diluted |
||||||||||||||||||||
GAAP |
$ |
324.3 |
$ |
205.7 |
$ |
(1.1) |
$ |
(0.01) |
$ |
366.4 |
$ |
193.4 |
$ |
113.8 |
$ |
1.34 |
|||||||||||
Adjustments: |
|||||||||||||||||||||||||||
Intangible asset amortization |
208.9 |
(1.5) |
210.4 |
2.50 |
182.7 |
(1.6) |
184.2 |
2.17 |
|||||||||||||||||||
Non-restructuring impairment charge |
— |
— |
— |
— |
— |
— |
2.0 |
0.02 |
|||||||||||||||||||
Restructuring and related charges, net (2) |
— |
— |
7.2 |
0.09 |
2.9 |
(1.9) |
19.6 |
0.23 |
|||||||||||||||||||
Inventory step-up expense |
— |
— |
— |
— |
31.0 |
— |
31.0 |
0.36 |
|||||||||||||||||||
Loss from discontinued operations |
— |
— |
0.2 |
— |
— |
— |
0.4 |
— |
|||||||||||||||||||
Change in contingent consideration fair value |
— |
25.8 |
(25.8) |
(0.31) |
— |
4.2 |
(4.2) |
(0.05) |
|||||||||||||||||||
Acquisition-related expenses |
— |
— |
— |
— |
— |
(0.7) |
0.7 |
0.01 |
|||||||||||||||||||
Divestiture |
— |
— |
— |
— |
— |
— |
0.6 |
0.01 |
|||||||||||||||||||
Gain on repurchase of debt |
— |
— |
(18.7) |
(0.22) |
— |
— |
— |
— |
|||||||||||||||||||
Write off of unamortized debt discount and fees |
— |
— |
0.8 |
0.01 |
— |
— |
— |
— |
|||||||||||||||||||
Separation costs |
— |
(19.8) |
19.8 |
0.24 |
— |
— |
— |
— |
|||||||||||||||||||
Significant legal and environmental charges |
— |
(28.2) |
28.2 |
0.33 |
— |
11.8 |
(11.8) |
(0.14) |
|||||||||||||||||||
R&D upfront payment (3) |
— |
— |
20.0 |
0.24 |
— |
— |
— |
— |
|||||||||||||||||||
Legal entity and intercompany financing reorganization |
— |
— |
3.0 |
0.04 |
— |
— |
(82.3) |
(0.97) |
|||||||||||||||||||
U.S. Tax Reform |
— |
— |
— |
— |
— |
— |
(9.1) |
(0.11) |
|||||||||||||||||||
Income taxes (4) |
— |
— |
(69.5) |
(0.83) |
— |
— |
(54.0) |
(0.64) |
|||||||||||||||||||
As adjusted |
$ |
533.2 |
$ |
182.0 |
$ |
174.5 |
$ |
2.07 |
$ |
583.0 |
$ |
205.2 |
$ |
190.9 |
$ |
2.25 |
|||||||||||
Percent of net sales |
71.7 |
% |
24.5 |
% |
23.5 |
% |
72.9 |
% |
25.7 |
% |
23.9 |
% |
|||||||||||||||
(1) |
In periods where the Company reports a net loss from continuing operations, potential ordinary shares outstanding are excluded from the calculation of diluted earnings per share, prepared in accordance with GAAP, as they would be anti-dilutive. These potentially dilutive shares are included in the calculation of adjusted diluted earnings per share when dilutive. As a result, the adjusted diluted earnings per share utilized a weighted average share count of 84.2 shares for the three months ended September 27, 2019. |
(2) |
Includes pre-tax accelerated depreciation. |
(3) |
Represents research and development ("R&D") expense incurred related to an upfront payment made to Silence in connection with a license and collaboration agreement entered into in July 2019. |
(4) |
Includes tax effects of above adjustments (unless otherwise separately stated), changes in related uncertain tax positions, as well as certain installment sale transactions and other intercompany transactions. |
MALLINCKRODT PLC |
||||||||||||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||||||||
(unaudited, in millions) |
||||||||||||||||
Three Months Ended |
||||||||||||||||
September 27, |
September 28, |
Percent change |
Currency |
Constant- |
||||||||||||
Specialty Brands |
$ |
580.4 |
$ |
640.0 |
(9.3) |
% |
(0.2) |
% |
(9.1) |
% |
||||||
Specialty Generics (1) |
163.3 |
159.9 |
2.1 |
% |
— |
2.1 |
||||||||||
Net sales |
$ |
743.7 |
$ |
799.9 |
(7.0) |
% |
(0.2) |
% |
(6.8) |
% |
||||||
(1) |
Includes net sales from an ongoing, post-divestiture supply agreement with the acquirer of the contrast media and delivery systems ("CMDS") business. |
MALLINCKRODT PLC |
||||||||||||||||
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||||||||
(unaudited, in millions) |
||||||||||||||||
Three Months Ended |
||||||||||||||||
September 27, |
September 28, |
Percent change |
Currency |
Constant- |
||||||||||||
Specialty Brands |
||||||||||||||||
Acthar Gel |
$ |
229.8 |
$ |
290.1 |
(20.8) |
% |
— |
% |
(20.8) |
% |
||||||
Inomax |
136.8 |
133.2 |
2.7 |
(0.1) |
2.8 |
|||||||||||
Ofirmev |
86.1 |
87.1 |
(1.1) |
— |
(1.1) |
|||||||||||
Therakos |
60.9 |
60.0 |
1.5 |
(1.8) |
3.3 |
|||||||||||
Amitiza |
52.6 |
48.2 |
9.1 |
— |
9.1 |
|||||||||||
BioVectra |
10.5 |
13.9 |
(24.5) |
(0.6) |
(23.9) |
|||||||||||
Other |
3.7 |
7.5 |
(50.7) |
(1.3) |
(49.4) |
|||||||||||
Specialty Brands Total |
$ |
580.4 |
$ |
640.0 |
(9.3) |
% |
(0.2) |
% |
(9.1) |
% |
||||||
Specialty Generics |
||||||||||||||||
Hydrocodone (API) and hydrocodone-containing tablets |
$ |
15.7 |
$ |
15.5 |
1.3 |
% |
— |
% |
1.3 |
% |
||||||
Oxycodone (API) and oxycodone-containing tablets(1) |
17.2 |
13.6 |
26.5 |
— |
26.5 |
|||||||||||
Acetaminophen (API) (1) |
48.5 |
47.9 |
1.3 |
— |
1.3 |
|||||||||||
Other controlled substances (1) |
72.9 |
69.5 |
4.9 |
(0.1) |
5.0 |
|||||||||||
Other (1) |
9.0 |
13.4 |
(32.8) |
— |
(32.8) |
|||||||||||
Specialty Generics Total |
$ |
163.3 |
$ |
159.9 |
2.1 |
% |
— |
% |
2.1 |
% |
(1) |
Prior period amounts have been reclassified to conform to current period presentation. |
MALLINCKRODT PLC |
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
(unaudited, in millions, except per share data) |
|||||||||||
Nine Months Ended |
|||||||||||
September 27, |
Percent of Net sales |
September 28, |
Percent of Net sales |
||||||||
Net sales |
$ |
2,357.6 |
100.0 |
% |
$ |
2,380.7 |
100.0 |
% |
|||
Cost of sales |
1,309.3 |
55.5 |
1,272.8 |
53.5 |
|||||||
Gross profit |
1,048.3 |
44.5 |
1,107.9 |
46.5 |
|||||||
Selling, general and administrative expenses |
661.8 |
28.1 |
594.5 |
25.0 |
|||||||
Research and development expenses |
268.0 |
11.4 |
260.7 |
11.0 |
|||||||
Restructuring charges, net |
11.2 |
0.5 |
101.8 |
4.3 |
|||||||
Non-restructuring impairment charges |
113.5 |
4.8 |
2.0 |
0.1 |
|||||||
Loss on divestiture |
— |
— |
0.6 |
— |
|||||||
Operating (loss) income |
(6.2) |
(0.3) |
148.3 |
6.2 |
|||||||
Interest expense |
(231.8) |
(9.8) |
(280.1) |
(11.8) |
|||||||
Interest income |
6.6 |
0.3 |
6.6 |
0.3 |
|||||||
Other income, net |
128.6 |
5.5 |
17.8 |
0.7 |
|||||||
Loss from continuing operations before income taxes |
(102.8) |
(4.4) |
(107.4) |
(4.5) |
|||||||
Income tax benefit |
(256.6) |
(10.9) |
(203.9) |
(8.6) |
|||||||
Income from continuing operations |
153.8 |
6.5 |
96.5 |
4.1 |
|||||||
Income from discontinued operations, net of income taxes |
6.8 |
0.3 |
14.9 |
0.6 |
|||||||
Net income |
$ |
160.6 |
6.8 |
% |
$ |
111.4 |
4.7 |
% |
|||
Basic earnings per share: |
|||||||||||
Income from continuing operations |
$ |
1.84 |
$ |
1.15 |
|||||||
Income from discontinued operations |
0.08 |
0.18 |
|||||||||
Net income |
$ |
1.92 |
$ |
1.32 |
|||||||
Basic weighted-average shares outstanding |
83.8 |
84.2 |
|||||||||
Diluted earnings per share: |
|||||||||||
Income from continuing operations |
$ |
1.83 |
$ |
1.13 |
|||||||
Income from discontinued operations |
0.08 |
0.17 |
|||||||||
Net income |
$ |
1.91 |
$ |
1.31 |
|||||||
Diluted weighted-average shares outstanding |
84.2 |
85.2 |
MALLINCKRODT PLC |
|||||||||||||||||||||||||||
NON-GAAP MEASURES |
|||||||||||||||||||||||||||
(unaudited, in millions except per share data) |
|||||||||||||||||||||||||||
Nine Months Ended |
|||||||||||||||||||||||||||
September 27, 2019 |
September 28, 2018 |
||||||||||||||||||||||||||
Gross |
SG&A |
Net |
Diluted per share |
Gross |
SG&A |
Net |
Diluted |
||||||||||||||||||||
GAAP |
$ |
1,048.3 |
$ |
661.8 |
$ |
160.6 |
$ |
1.91 |
$ |
1,107.9 |
$ |
594.5 |
$ |
111.4 |
$ |
1.31 |
|||||||||||
Adjustments: |
|||||||||||||||||||||||||||
Intangible asset amortization |
645.1 |
(4.7) |
649.8 |
7.72 |
541.6 |
(5.0) |
546.5 |
6.41 |
|||||||||||||||||||
Non-restructuring impairment charges (1) |
— |
— |
113.5 |
1.35 |
— |
— |
2.0 |
0.02 |
|||||||||||||||||||
Restructuring and related charges, net (2) |
— |
— |
11.2 |
0.13 |
2.9 |
(1.9) |
106.6 |
1.25 |
|||||||||||||||||||
Inventory step-up expense |
10.0 |
— |
10.0 |
0.12 |
79.5 |
— |
79.5 |
0.93 |
|||||||||||||||||||
Income from discontinued operations |
— |
— |
(6.8) |
(0.08) |
— |
— |
(14.9) |
(0.17) |
|||||||||||||||||||
Change in contingent consideration fair value |
— |
23.5 |
(23.5) |
(0.28) |
— |
33.3 |
(33.3) |
(0.39) |
|||||||||||||||||||
Acquisition-related expenses |
— |
— |
— |
— |
— |
(3.8) |
3.8 |
0.04 |
|||||||||||||||||||
Divestiture |
— |
— |
— |
— |
— |
— |
0.6 |
0.01 |
|||||||||||||||||||
Gain on repurchase of debt |
— |
— |
(98.6) |
(1.17) |
— |
— |
(6.5) |
(0.08) |
|||||||||||||||||||
Write off of unamortized debt discount and fees |
— |
— |
9.4 |
0.11 |
— |
— |
— |
— |
|||||||||||||||||||
Significant legal and environmental charges |
— |
(28.2) |
28.2 |
0.33 |
— |
11.8 |
(11.8) |
(0.14) |
|||||||||||||||||||
R&D upfront payment (3) |
— |
— |
20.0 |
0.24 |
— |
— |
— |
— |
|||||||||||||||||||
Separation costs |
— |
(50.4) |
50.4 |
0.60 |
— |
— |
— |
— |
|||||||||||||||||||
Legal entity and intercompany financing reorganization |
— |
— |
(186.8) |
(2.22) |
— |
— |
(82.3) |
(0.97) |
|||||||||||||||||||
U.S. Tax Reform |
— |
— |
— |
— |
— |
— |
(9.1) |
(0.11) |
|||||||||||||||||||
Income taxes (4) |
— |
— |
(185.5) |
(2.20) |
— |
— |
(181.5) |
(2.13) |
|||||||||||||||||||
As adjusted |
$ |
1,703.4 |
$ |
602.0 |
$ |
551.9 |
$ |
6.55 |
$ |
1,731.9 |
$ |
628.9 |
$ |
511.0 |
$ |
6.00 |
|||||||||||
Percent of net sales |
72.3 |
% |
25.5 |
% |
23.4 |
% |
72.7 |
% |
26.4 |
% |
21.5 |
% |
|||||||||||||||
(1) |
Represents in-process research and development intangible asset impairment of $113.5 million related to stannsoporfin during the nine months ended September 27, 2019 and impairment of a license associated with a product we elected to discontinue during the three months ended September 28, 2018. |
(2) |
Includes pre-tax accelerated depreciation. |
(3) |
Represents R&D expense incurred related to an upfront payment made to Silence in connection with a license and collaboration agreement entered into in July 2019. |
(4) |
Includes tax effects of above adjustments (unless otherwise separately stated), changes in related uncertain tax positions, as well as certain installment sale transactions and other intercompany transactions. |
MALLINCKRODT PLC |
||||||||||||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||||||||
(unaudited, in millions) |
||||||||||||||||
Nine Months Ended |
||||||||||||||||
September 27, |
September 28, |
Percent change |
Currency |
Constant- |
||||||||||||
Specialty Brands |
$ |
1,812.4 |
$ |
1,844.3 |
(1.7) |
% |
(0.3) |
% |
(1.4) |
% |
||||||
Specialty Generics (1) |
545.2 |
536.4 |
1.6 |
(0.1) |
1.7 |
|||||||||||
Net sales |
$ |
2,357.6 |
$ |
2,380.7 |
(1.0) |
% |
(0.2) |
% |
(0.8) |
% |
||||||
(1) |
Includes net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. |
MALLINCKRODT PLC |
||||||||||||||||
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||||||||
(unaudited, in millions) |
||||||||||||||||
Nine Months Ended |
||||||||||||||||
September 27, |
September 28, |
Percent change |
Currency |
Constant- |
||||||||||||
Specialty Brands |
||||||||||||||||
Acthar Gel |
$ |
720.1 |
$ |
827.1 |
(12.9) |
% |
— |
% |
(12.9) |
% |
||||||
Inomax |
427.6 |
404.0 |
5.8 |
(0.1) |
5.9 |
|||||||||||
Ofirmev |
272.2 |
254.7 |
6.9 |
— |
6.9 |
|||||||||||
Therakos |
183.6 |
174.2 |
5.4 |
(1.9) |
7.3 |
|||||||||||
Amitiza |
157.6 |
119.2 |
32.2 |
— |
32.2 |
|||||||||||
BioVectra |
36.8 |
35.7 |
3.1 |
(3.3) |
6.4 |
|||||||||||
Other |
14.5 |
29.4 |
(50.7) |
(1.0) |
(49.7) |
|||||||||||
Specialty Brands Total |
$ |
1,812.4 |
$ |
1,844.3 |
(1.7) |
% |
(0.3) |
% |
(1.4) |
% |
||||||
Specialty Generics |
||||||||||||||||
Hydrocodone (API) and hydrocodone-containing tablets |
$ |
51.2 |
$ |
46.3 |
10.6 |
% |
— |
% |
10.6 |
% |
||||||
Oxycodone (API) and oxycodone-containing tablets(1) |
53.3 |
43.3 |
23.1 |
— |
23.1 |
|||||||||||
Acetaminophen (API) (1) |
143.1 |
149.0 |
(4.0) |
— |
(4.0) |
|||||||||||
Other controlled substances (1) |
265.7 |
258.0 |
3.0 |
(0.2) |
3.2 |
|||||||||||
Other (1) |
31.9 |
39.8 |
(19.8) |
— |
(19.8) |
|||||||||||
Specialty Generics Total |
$ |
545.2 |
$ |
536.4 |
1.6 |
% |
(0.1) |
% |
1.7 |
% |
(1) |
Prior period amounts have been reclassified to conform to current period presentation. |
MALLINCKRODT PLC |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(unaudited, in millions) |
|||||||
September 27, |
December 28, |
||||||
Assets |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ |
498.8 |
$ |
348.9 |
|||
Accounts receivable, net |
538.8 |
623.3 |
|||||
Inventories |
325.5 |
322.3 |
|||||
Prepaid expenses and other current assets |
122.2 |
132.7 |
|||||
Assets held for sale |
175.9 |
— |
|||||
Total current assets |
1,661.2 |
1,427.2 |
|||||
Property, plant and equipment, net |
894.7 |
982.0 |
|||||
Intangible assets, net |
7,496.1 |
8,282.8 |
|||||
Other assets |
304.1 |
185.3 |
|||||
Total Assets |
$ |
10,356.1 |
$ |
10,877.3 |
|||
Liabilities and Shareholders' Equity |
|||||||
Current Liabilities: |
|||||||
Current maturities of long-term debt |
$ |
716.1 |
$ |
22.4 |
|||
Accounts payable |
100.9 |
147.5 |
|||||
Accrued payroll and payroll-related costs |
83.7 |
124.0 |
|||||
Accrued interest |
90.9 |
77.6 |
|||||
Accrued and other current liabilities |
506.5 |
572.2 |
|||||
Liabilities held for sale |
55.8 |
— |
|||||
Total current liabilities |
1,553.9 |
943.7 |
|||||
Long-term debt |
5,048.7 |
6,069.2 |
|||||
Pension and postretirement benefits |
58.6 |
60.5 |
|||||
Environmental liabilities |
60.3 |
59.7 |
|||||
Deferred income taxes |
22.0 |
324.3 |
|||||
Other income tax liabilities |
253.5 |
228.0 |
|||||
Other liabilities |
278.7 |
304.6 |
|||||
Total Liabilities |
7,275.7 |
7,990.0 |
|||||
Shareholders' Equity: |
|||||||
Preferred shares |
— |
— |
|||||
Ordinary shares |
18.7 |
18.5 |
|||||
Ordinary shares held in treasury at cost |
(1,615.6) |
(1,617.4) |
|||||
Additional paid-in capital |
5,559.2 |
5,528.2 |
|||||
Retained deficit |
(859.8) |
(1,017.7) |
|||||
Accumulated other comprehensive loss |
(22.1) |
(24.3) |
|||||
Total Shareholders' Equity |
3,080.4 |
2,887.3 |
|||||
Total Liabilities and Shareholders' Equity |
$ |
10,356.1 |
$ |
10,877.3 |
MALLINCKRODT PLC |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(unaudited, in millions) |
|||||||
Nine Months Ended |
|||||||
September 27, |
September 28, |
||||||
Cash Flows From Operating Activities: |
|||||||
Net income |
$ |
160.6 |
$ |
111.4 |
|||
Adjustments to reconcile net cash from operating activities: |
|||||||
Depreciation and amortization |
723.5 |
597.0 |
|||||
Share-based compensation |
30.6 |
27.9 |
|||||
Deferred income taxes |
(301.9) |
(232.7) |
|||||
Non-cash impairment charges |
113.5 |
2.0 |
|||||
Loss on divestiture |
— |
0.6 |
|||||
Gain on repurchase of debt |
(98.6) |
(6.5) |
|||||
Other non-cash items |
(31.7) |
2.8 |
|||||
Changes in assets and liabilities, net of the effects of acquisitions: |
|||||||
Accounts receivable, net |
68.7 |
(59.0) |
|||||
Inventories |
(32.0) |
43.1 |
|||||
Accounts payable |
(27.8) |
(0.1) |
|||||
Income taxes |
17.2 |
16.7 |
|||||
Other |
(88.0) |
(22.1) |
|||||
Net cash from operating activities |
534.1 |
481.1 |
|||||
Cash Flows From Investing Activities: |
|||||||
Capital expenditures |
(108.7) |
(93.3) |
|||||
Acquisitions, net of cash |
— |
(699.9) |
|||||
Proceeds from divestiture, net of cash |
— |
313.2 |
|||||
Other |
13.7 |
28.8 |
|||||
Net cash from investing activities |
(95.0) |
(451.2) |
|||||
Cash Flows From Financing Activities: |
|||||||
Issuance of external debt |
695.0 |
657.2 |
|||||
Repayment of external debt |
(940.1) |
(1,563.4) |
|||||
Debt financing costs |
— |
(12.0) |
|||||
Proceeds from exercise of share options |
0.5 |
1.0 |
|||||
Repurchase of shares |
(2.5) |
(57.4) |
|||||
Other |
(18.1) |
(24.3) |
|||||
Net cash from financing activities |
(265.2) |
(998.9) |
|||||
Effect of currency rate changes on cash |
0.5 |
(0.9) |
|||||
Net change in cash, cash equivalents and restricted cash, including cash classified within assets held for sale |
174.4 |
(969.9) |
|||||
Less: Net change in cash classified within assets held for sale |
(15.1) |
— |
|||||
Net change in cash, cash equivalents and restricted cash |
159.3 |
(969.9) |
|||||
Cash, cash equivalents and restricted cash at beginning of period |
367.5 |
1,279.1 |
|||||
Cash, cash equivalents and restricted cash at end of period |
$ |
526.8 |
$ |
309.2 |
|||
Cash and cash equivalents at end of period |
$ |
498.8 |
$ |
290.7 |
|||
Restricted cash included in other assets at end of period |
28.0 |
18.5 |
|||||
Cash, cash equivalents and restricted cash at end of period |
$ |
526.8 |
$ |
309.2 |
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