Net sales were
On a non-GAAP(1) basis, adjusted net income for the third
fiscal quarter of 2014 was
On a GAAP basis, the company incurred a net loss for the third quarter
of fiscal 2014 of
“This has been another exceptionally strong quarter in what is shaping
up to be a very promising year for Mallinckrodt,” said
Gross profit was
Selling, general and administrative (SG&A) expenses for the third
quarter of fiscal 2014 were
R&D expenses for the third quarter of fiscal 2014 were
Separation costs for the third quarter of fiscal 2014 were
Under the previously announced
The fiscal 2014 third quarter non-GAAP effective tax rate was 23.4%.
Nine-Month Fiscal 2014 Results
In the first nine months of fiscal 2014, net sales were
On a non-GAAP basis, adjusted net income was
On a GAAP basis, net income for the first nine months of fiscal 2014 was
BUSINESS SEGMENT RESULTS
Specialty Pharmaceuticals Segment
Net sales in the
Segment operating income in the quarter was
Global Medical Imaging Segment
Net sales in the company's Global Medical Imaging segment were
FISCAL 2014 UPDATED GUIDANCE
Guidance Category | May 2014 | August 2014 | |||||||
Adjusted diluted earnings per share | $3.30 to $3.60 | $4.00 to $4.30 | |||||||
Total Mallinckrodt net sales(2) | $2.28 billion to $2.38 billion | $2.35 billion to $2.45 billion | |||||||
Specialty Pharmaceuticals segment net sales | $1.38 billion to $1.43 billion | $1.425 billion to $1.5 billion | |||||||
Global Medical Imaging segment net sales | $850 million to $900 million | $850 million to $900 million | |||||||
Methylphenidate ER net sales | At least $160 million | At least $190 million | |||||||
Non-GAAP effective tax rate | 23% to 26% | 22% to 25% | |||||||
Capital expenditures | $130 million to $150 million | $115 million to $135 million | |||||||
(2)Includes sales to former parent |
|||||||||
CONFERENCE CALL AND WEBCAST
ABOUT
(1)NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net
income, adjusted diluted earnings per share, adjusted gross profit,
operational growth and effective tax rate, which are considered
"non-GAAP" financial measures under applicable
Adjusted net income represents net income, prepared in accordance with accounting principles generally accepted in the U.S. (GAAP), excluding the after-tax effects related to separation costs; restructuring and related charges, net; amortization; discontinued operations; and other items identified by the company. Adjusted diluted earnings per share represents adjusted net income divided by the number of diluted shares. The non-GAAP effective tax rate reflects the tax impact of adjustments between net income and adjusted net income and certain effects associated with acquisitions.
Adjusted gross profit represents gross profit, prepared in accordance with GAAP, excluding amortization and inventory step-up expense.
Operational growth 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. This measure is one of the performance metrics that determines management incentive compensation.
The company has provided these non-GAAP 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 they will be used by certain investors to measure
These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The company's definition of these non-GAAP measures may differ from similarly titled measures used by others.
Because non-GAAP 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 the non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release.
Cautionary Statements Related to Forward-Looking Statements
Statements in this document that are not strictly historical,
including statements regarding the proposed acquisition, the expected
timetable for completing the transaction, future financial and operating
results, benefits and synergies of the transaction, future opportunities
for the combined businesses and any other statements regarding events or
developments that we believe or anticipate will or may occur in the
future, may be "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995, and involve a number
of risks and uncertainties. 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
Important Information for Investors and Shareholders
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. In connection with the proposed transaction between
MALLINCKRODT PLC | ||||||||||||||||||
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME | ||||||||||||||||||
(unaudited, in millions, except per share data) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 27, 2014 |
Percent of |
June 28, 2013 |
Percent of |
|||||||||||||||
Net sales | $ | 653.1 | 100.0 | % | $ | 570.0 | 100.0 | % | ||||||||||
Cost of sales | 368.8 | 56.5 | 304.2 | 53.4 | ||||||||||||||
Gross profit | 284.3 | 43.5 | 265.8 | 46.6 | ||||||||||||||
Selling, general and administrative expenses | 221.3 | 33.9 | 166.9 | 29.3 | ||||||||||||||
Research and development expenses | 42.7 | 6.5 | 44.8 | 7.9 | ||||||||||||||
Separation costs | 1.8 | 0.3 | 44.2 | 7.8 | ||||||||||||||
Restructuring charges, net | 23.8 | 3.6 | 11.3 | 2.0 | ||||||||||||||
Gains on divestiture and license | (0.9 | ) | (0.1 | ) | (0.8 | ) | (0.1 | ) | ||||||||||
Operating income | (4.4 | ) | (0.7 | ) | (0.6 | ) | (0.1 | ) | ||||||||||
Interest expense | (22.7 | ) | (3.5 | ) | (9.4 | ) | (1.6 | ) | ||||||||||
Interest income | 0.3 | — | — | — | ||||||||||||||
Other expense, net | 0.1 | — | 2.1 | 0.4 | ||||||||||||||
(Loss) income from continuing operations before income taxes | (26.7 | ) | (4.1 | ) | (7.9 | ) | (1.4 | ) | ||||||||||
Provision for income taxes | (2.4 | ) | (0.4 | ) | 19.8 | 3.5 | ||||||||||||
Income from continuing operations | (24.3 | ) | (3.7 | ) | (27.7 | ) | (4.9 | ) | ||||||||||
Loss from discontinued operations, net of income taxes | 0.2 | — | (0.2 | ) | — | |||||||||||||
Net income | $ | (24.1 | ) | (3.7 | ) | $ | (27.9 | ) | (4.9 | ) | ||||||||
Basic earnings per share: | ||||||||||||||||||
Income from continuing operations | $ | (0.42 | ) | $ | (0.48 | ) | ||||||||||||
Loss from discontinued operations | — | — | ||||||||||||||||
Net income | (0.41 | ) | (0.48 | ) | ||||||||||||||
Diluted earnings per share: | ||||||||||||||||||
Income from continuing operations | $ | (0.42 | ) | $ | (0.48 | ) | ||||||||||||
Loss from discontinued operations | — | — | ||||||||||||||||
Net income | (0.41 | ) | (0.48 | ) | ||||||||||||||
Weighted-average number of shares outstanding(1): | ||||||||||||||||||
Basic | 58.5 | 57.7 | ||||||||||||||||
Diluted | 58.5 | 57.7 | ||||||||||||||||
(1) For periods prior to the separation from Covidien, weighted-average number of shares reflects the number of ordinary shares of Mallinckrodt outstanding immediately following the separation. |
||||||||||||||||||
MALLINCKRODT PLC | ||||||||||||||||||||
NON-GAAP MEASURES | ||||||||||||||||||||
(unaudited, in millions except per share data, net of tax) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
June 27, 2014 | June 28, 2013 | |||||||||||||||||||
Net income |
Diluted net income per share (3) |
Net income |
Diluted
net income per share (4) |
|||||||||||||||||
GAAP | $ | (24.1 | ) | $ | (0.41 | ) | $ | (27.9 | ) | $ | (0.48 | ) | ||||||||
Adjustments: | ||||||||||||||||||||
Separation costs | 1.8 | 0.03 | 44.2 | 0.77 | ||||||||||||||||
Restructuring and related charges, net (1) | 24.2 | 0.41 | 12.1 | 0.21 | ||||||||||||||||
Amortization expense | 51.6 | 0.87 | 8.9 | 0.15 | ||||||||||||||||
(Gain) loss from discontinued operations | (0.2 | ) | — | 0.2 | — | |||||||||||||||
Acquisition related expenses | 16.6 | 0.28 | — | — | ||||||||||||||||
Inventory step-up expense | 9.5 | 0.16 | — | — | ||||||||||||||||
Up-front and milestone payments | 5.0 | 0.08 | — | — | ||||||||||||||||
Significant legal charge | 11.5 | 0.19 | — | — | ||||||||||||||||
Income taxes (2) | (24.3 | ) | (0.41 | ) | (9.1 | ) | (0.16 | ) | ||||||||||||
As adjusted | $ | 71.6 | $ | 1.20 | $ | 28.4 | $ | 0.49 | ||||||||||||
(1) Includes pre-tax accelerated depreciation of $0.4 million and $0.8 million for the three months ended June 27, 2014 and June 28, 2013, respectively.
|
||||||||||||||||||||
(2) Includes tax effect of above adjustments and certain effects associated with acquisitions. |
||||||||||||||||||||
(3) For the three months ended June 27, 2014 the weighted-average number of shares reflects 59.5 million shares as compared to 58.5 million shares used in determining diluted earnings per share prepared in accordance with GAAP. The above non-GAAP measure includes 1.0 million shares that would be antidilutive to GAAP diluted earnings per share. |
||||||||||||||||||||
(4) For periods prior to the separation from Covidien, weighted-average number of shares reflects the number of ordinary shares of Mallinckrodt outstanding immediately following the separation.
|
||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
June 27, 2014 | June 28, 2013 | |||||||||||||||||||
Gross profit |
Percent of Net sales |
Gross profit |
Percent of Net sales |
|||||||||||||||||
GAAP | $ | 284.3 | 43.5 | % | $ | 265.8 | 46.6 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||
Amortization expense | 51.6 | 7.9 | 8.9 | 1.6 | ||||||||||||||||
Inventory step-up expense | 9.5 | 1.5 | — | — | ||||||||||||||||
As adjusted | $ | 345.4 | 52.9 | % | $ | 274.7 | 48.2 | % | ||||||||||||
MALLINCKRODT PLC | ||||||||||||||||||||||
SEGMENT NET SALES AND OPERATIONAL GROWTH | ||||||||||||||||||||||
(unaudited, in millions) | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
June 27, 2014 |
June 28, 2013 |
Percent
change |
Currency impact |
Operational growth |
||||||||||||||||||
Specialty Pharmaceuticals | ||||||||||||||||||||||
Specialty Generics and API | $ | 329.4 | $ | 253.7 | 29.8 | % | (0.1 | )% | 29.9 | % | ||||||||||||
Brands | 84.9 | 54.9 | 54.6 | — | 54.6 | |||||||||||||||||
414.3 | 308.6 | 34.3 | (0.1 | ) | 34.4 | |||||||||||||||||
Global Medical Imaging | ||||||||||||||||||||||
Contrast Media and Delivery Systems | 116.7 | 138.9 | (16.0 | ) | (0.8 | ) | (15.2 | ) | ||||||||||||||
Nuclear Imaging | 110.4 | 109.0 | 1.3 | 1.6 | (0.3 | ) | ||||||||||||||||
227.1 | 247.9 | (8.4 | ) | 0.3 | (8.7 | ) | ||||||||||||||||
Other(1) | 11.7 | 13.5 | (13.3 | ) | (6.0 | ) | (7.3 | ) | ||||||||||||||
Net Sales | $ | 653.1 | $ | 570.0 | 14.6 | % | (0.1 | )% | 14.7 | % | ||||||||||||
(1) Represents net sales to our former parent. |
||||||||||||||||||||||
MALLINCKRODT PLC | ||||||||||||||
SELECT PRODUCT LINE NET SALES | ||||||||||||||
(unaudited, in millions) | ||||||||||||||
Three Months Ended | ||||||||||||||
June 27, 2014 |
June 28, 2013 |
Percent
change |
||||||||||||
Specialty Pharmaceuticals | ||||||||||||||
Methylphenidate ER | $ | 54.7 | $ | 17.4 | 214.4 | % | ||||||||
Hydrocodone (API) and hydrocodone-containing tablets | 25.3 | 36.2 | (30.1 | ) | ||||||||||
Oxycodone (API) and oxycodone-containing tablets | 53.8 | 35.8 | 50.3 | |||||||||||
Other controlled substances | 154.4 | 128.1 | 20.5 | |||||||||||
Other | 41.2 | 36.2 | 13.8 | |||||||||||
Specialty Generics and API | 329.4 | 253.7 | 29.8 | |||||||||||
EXALGO | 8.6 | 34.2 | (74.9 | ) | ||||||||||
OFIRMEV | 53.2 | — | — | |||||||||||
Other | 23.1 | 20.7 | 11.6 | |||||||||||
Brands | 84.9 | 54.9 | 54.6 | |||||||||||
Specialty Pharmaceuticals Total | $ | 414.3 | $ | 308.6 | 34.3 | % | ||||||||
Global Medical Imaging | ||||||||||||||
Optiray | $ | 76.0 | $ | 88.8 | (14.4 | )% | ||||||||
Other | 40.7 | 50.1 | (18.8 | ) | ||||||||||
Contrast Media and Delivery Systems | 116.7 | 138.9 | (16.0 | ) | ||||||||||
Nuclear Imaging | 110.4 | 109.0 | 1.3 | |||||||||||
Global Medical Imaging Total | $ | 227.1 | $ | 247.9 | (8.4 | )% |
MALLINCKRODT PLC | ||||||||||||||||||
SEGMENT OPERATING INCOME | ||||||||||||||||||
(unaudited, in millions) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 27, 2014 |
Percent of
segment Net sales |
June 28, 2013 |
Percent of
segment Net sales |
|||||||||||||||
Specialty Pharmaceuticals | $ | 125.6 | 30.3 | % | $ | 94.8 | 30.7 | % | ||||||||||
Global Medical Imaging | 11.2 | 4.9 | % | 13.5 | 5.4 | % | ||||||||||||
Segment operating income | 136.8 | 21.3 | % | 108.3 | 19.5 | % | ||||||||||||
Unallocated amounts: | ||||||||||||||||||
Corporate and allocated expenses | (63.6 | ) | (43.7 | ) | ||||||||||||||
Intangible asset amortization | (51.6 | ) | (8.9 | ) | ||||||||||||||
Restructuring and related charges, net (1) | (24.2 | ) | (12.1 | ) | ||||||||||||||
Separation costs | (1.8 | ) | (44.2 | ) | ||||||||||||||
Total operating income | $ | (4.4 | ) | $ | (0.6 | ) | ||||||||||||
(1) Includes accelerated depreciation of $0.4 million and $0.8 million for the three months ended June 27, 2014 and June 28, 2013, respectively. |
||||||||||||||||||
MALLINCKRODT PLC | ||||||||||||||||||
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME | ||||||||||||||||||
(unaudited, in millions, except per share data) | ||||||||||||||||||
Nine Months Ended | ||||||||||||||||||
June 27, 2014 |
Percent of
Net sales |
June 28, 2013 |
Percent of
Net sales |
|||||||||||||||
Net sales | $ | 1,751.1 | 100.0 | % | $ | 1,659.3 | 100.0 | % | ||||||||||
Cost of sales | 948.6 | 54.2 | 886.5 | 53.4 | ||||||||||||||
Gross profit | 802.5 | 45.8 | 772.8 | 46.6 | ||||||||||||||
Selling, general and administrative expenses | 561.6 | 32.1 | 474.4 | 28.6 | ||||||||||||||
Research and development expenses | 123.1 | 7.0 | 122.4 | 7.4 | ||||||||||||||
Separation costs | 6.6 | 0.4 | 70.6 | 4.3 | ||||||||||||||
Restructuring charges, net | 53.5 | 3.1 | 17.9 | 1.1 | ||||||||||||||
Gains on divestiture and license | (14.7 | ) | (0.8 | ) | (2.2 | ) | (0.1 | ) | ||||||||||
Operating income | 72.4 | 4.1 | 89.7 | 5.4 | ||||||||||||||
Interest expense | (44.9 | ) | (2.6 | ) | (9.6 | ) | (0.6 | ) | ||||||||||
Interest income | 1.1 | 0.1 | 0.1 | — | ||||||||||||||
Other (expense) income, net | (0.9 | ) | (0.1 | ) | 2.3 | 0.1 | ||||||||||||
Income from continuing operations before income taxes | 27.7 | 1.6 | 82.5 | 5.0 | ||||||||||||||
Provision for income taxes | (6.1 | ) | (0.3 | ) | 55.9 | 3.4 | ||||||||||||
Income from continuing operations | 33.8 | 1.9 | 26.6 | 1.6 | ||||||||||||||
Loss from discontinued operations, net of income taxes | (0.7 | ) | — | (1.3 | ) | (0.1 | ) | |||||||||||
Net income | $ | 33.1 | 1.9 | $ | 25.3 | 1.5 | ||||||||||||
Basic earnings per share: | ||||||||||||||||||
Income from continuing operations | $ | 0.58 | $ | 0.46 | ||||||||||||||
Loss from discontinued operations | (0.01 | ) | (0.02 | ) | ||||||||||||||
Net income | 0.57 | 0.44 | ||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||
Income from continuing operations | $ | 0.57 | $ | 0.46 | ||||||||||||||
Loss from discontinued operations | (0.01 | ) | (0.02 | ) | ||||||||||||||
Net income | 0.56 | 0.44 | ||||||||||||||||
Weighted-average number of shares outstanding(1): | ||||||||||||||||||
Basic | 58.2 | 57.7 | ||||||||||||||||
Diluted | 59.0 | 57.7 | ||||||||||||||||
(1) For periods prior to the separation from Covidien, weighted-average number of shares reflects the number of ordinary shares of Mallinckrodt outstanding immediately following the separation. |
||||||||||||||||||
MALLINCKRODT PLC | ||||||||||||||||||||
NON-GAAP MEASURES | ||||||||||||||||||||
(unaudited, in millions except per share data, net of tax) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
June 27, 2014 | June 28, 2013 | |||||||||||||||||||
Net income |
Diluted
net income per share |
Net income |
Diluted
net income per share (3) |
|||||||||||||||||
GAAP | $ | 33.1 | $ | 0.56 | $ | 25.3 | $ | 0.44 | ||||||||||||
Adjustments: | ||||||||||||||||||||
Separation costs | 6.6 | 0.11 | 70.6 | 1.22 | ||||||||||||||||
Restructuring and related charges, net (1) | 54.0 | 0.92 | 20.0 | 0.35 | ||||||||||||||||
Amortization expense | 75.9 | 1.29 | 26.6 | 0.46 | ||||||||||||||||
Loss from discontinued operations | 0.7 | 0.01 | 1.3 | 0.02 | ||||||||||||||||
Acquisition related expenses | 35.1 | 0.59 | — | — | ||||||||||||||||
Inventory step-up expense | 10.6 | 0.18 | — | — | ||||||||||||||||
Up-front and milestone payments | 5.0 | 0.08 | — | — | ||||||||||||||||
Gain on intellectual property license | (11.7 | ) | (0.20 | ) | — | — | ||||||||||||||
Significant environmental and legal charges | 34.6 | 0.59 | — | — | ||||||||||||||||
Income taxes (2) | (64.7 | ) | (1.10 | ) | (19.9 | ) | (0.34 | ) | ||||||||||||
As adjusted | $ | 179.2 | $ | 3.04 | $ | 123.9 | $ | 2.15 | ||||||||||||
(1) Includes pre-tax accelerated depreciation of $0.5 million and $2.1 million for the nine months ended June 27, 2014 and June 28, 2013, respectively. |
||||||||||||||||||||
(2) Includes tax effect of above adjustments and certain effects associated with acquisitions. |
||||||||||||||||||||
(3) For periods prior to the separation from Covidien, weighted-average number of shares reflects the number of ordinary shares of Mallinckrodt outstanding immediately following the separation. |
||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
June 27, 2014 | June 28, 2013 | |||||||||||||||||||
Gross profit |
Percent of Net sales |
Gross profit |
Percent of Net sales |
|||||||||||||||||
GAAP | $ | 802.5 | 45.8 | % | $ | 772.8 | 46.6 | % | ||||||||||||
Adjustments: | ||||||||||||||||||||
Amortization expense | 75.9 | 4.3 | 26.6 | 1.6 | ||||||||||||||||
Inventory step-up expense | 10.6 | 0.6 | — | — | ||||||||||||||||
As adjusted | $ | 889.0 | 50.8 | % | $ | 799.4 | 48.2 | % | ||||||||||||
MALLINCKRODT PLC | ||||||||||||||||||||||
SEGMENT NET SALES AND OPERATIONAL GROWTH | ||||||||||||||||||||||
(unaudited, in millions) | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||
June 27, 2014 |
June 28, 2013 |
Percent
change |
Currency impact | Operational growth | ||||||||||||||||||
Specialty Pharmaceuticals | ||||||||||||||||||||||
Specialty Generics and API | $ | 848.5 | $ | 763.9 | 11.1 | % | (0.1 | )% | 11.2 | % | ||||||||||||
Brands | 199.6 | 149.3 | 33.7 | — | 33.7 | |||||||||||||||||
1,048.1 | 913.2 | 14.8 | (0.1 | ) | 14.9 | |||||||||||||||||
Global Medical Imaging | ||||||||||||||||||||||
Contrast Media and Delivery Systems | 340.9 | 378.5 | (9.9 | ) | (1.8 | ) | (8.1 | ) | ||||||||||||||
Nuclear Imaging | 327.2 | 328.2 | (0.3 | ) | 0.9 | (1.2 | ) | |||||||||||||||
668.1 | 706.7 | (5.5 | ) | (0.5 | ) | (5.0 | ) | |||||||||||||||
Other(1) | 34.9 | 39.4 | (11.4 | ) | (6.5 | ) | (4.9 | ) | ||||||||||||||
Net Sales | $ | 1,751.1 | $ | 1,659.3 | 5.5 | % | (0.5 | )% | 6.0 | % | ||||||||||||
(1) Represents net sales to our former parent. |
||||||||||||||||||||||
MALLINCKRODT PLC | ||||||||||||||
SELECT PRODUCT LINE NET SALES | ||||||||||||||
(unaudited, in millions) | ||||||||||||||
Nine Months Ended | ||||||||||||||
June 27, 2014 |
June 28, 2013 |
Percent
change |
||||||||||||
Specialty Pharmaceuticals | ||||||||||||||
Methylphenidate ER | $ | 154.3 | $ | 88.3 | 74.7 | % | ||||||||
Hydrocodone (API) and hydrocodone-containing tablets | 75.1 | 105.2 | (28.6 | ) | ||||||||||
Oxycodone (API) and oxycodone-containing tablets | 101.7 | 121.0 | (16.0 | ) | ||||||||||
Other controlled substances | 408.6 | 342.3 | 19.4 | |||||||||||
Other | 108.8 | 107.1 | 1.6 | |||||||||||
Specialty Generics and API | 848.5 | 763.9 | 11.1 | |||||||||||
EXALGO | 73.7 | 92.2 | (20.1 | ) | ||||||||||
OFIRMEV | 58.5 | — | — | |||||||||||
Other | 67.4 | 57.1 | 18.0 | |||||||||||
Brands | 199.6 | 149.3 | 33.7 | |||||||||||
Specialty Pharmaceuticals Total | $ | 1,048.1 | $ | 913.2 | 14.8 | % | ||||||||
Global Medical Imaging | ||||||||||||||
Optiray | $ | 219.4 | $ | 243.3 | (9.8 | )% | ||||||||
Other | 121.5 | 135.2 | (10.1 | ) | ||||||||||
Contrast Media and Delivery Systems | 340.9 | 378.5 | (9.9 | ) | ||||||||||
Nuclear Imaging | 327.2 | 328.2 | (0.3 | ) | ||||||||||
Global Medical Imaging Total | $ | 668.1 | $ | 706.7 | (5.5 | )% |
MALLINCKRODT PLC | ||||||||||||||||||
SEGMENT OPERATING INCOME | ||||||||||||||||||
(unaudited, in millions) | ||||||||||||||||||
Nine Months Ended | ||||||||||||||||||
June 27, 2014 |
Percent of
segment Net sales |
June 28, 2013 |
Percent of
segment Net sales |
|||||||||||||||
Specialty Pharmaceuticals | $ | 344.5 | 32.9 | % | $ | 234.8 | 25.7 | % | ||||||||||
Global Medical Imaging | 25.9 | 3.9 | % | 81.5 | 11.5 | % | ||||||||||||
Segment operating income | 370.4 | 21.6 | % | 316.3 | 19.5 | % | ||||||||||||
Unallocated amounts: | ||||||||||||||||||
Corporate and allocated expenses | (161.5 | ) | (109.4 | ) | ||||||||||||||
Intangible asset amortization | (75.9 | ) | (26.6 | ) | ||||||||||||||
Restructuring and related charges, net (1) | (54.0 | ) | (20.0 | ) | ||||||||||||||
Separation costs | (6.6 | ) | (70.6 | ) | ||||||||||||||
Total operating income | $ | 72.4 | $ | 89.7 | ||||||||||||||
(1) Includes accelerated depreciation of $0.5 million and $2.1 million for the nine months ended June 27, 2014 and June 28, 2013, respectively. |
||||||||||||||||||
MALLINCKRODT PLC | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(unaudited, in millions) | |||||||||
June 27, 2014 |
September 27, 2013 |
||||||||
Assets | |||||||||
Current Assets: | |||||||||
Cash and cash equivalents | $ | 327.9 | $ | 275.5 | |||||
Accounts receivable, net | 437.8 | 400.8 | |||||||
Inventories | 398.3 | 403.1 | |||||||
Deferred income taxes | 357.7 | 171.1 | |||||||
Prepaid expenses and other current assets | 128.6 | 134.4 | |||||||
Total current assets | 1,650.3 | 1,384.9 | |||||||
Property, plant and equipment, net | 1,000.0 | 997.4 | |||||||
Goodwill | 854.2 | 532.0 | |||||||
Intangible assets, net | 1,663.4 | 422.1 | |||||||
Other assets | 255.5 | 220.2 | |||||||
Total Assets | $ | 5,423.4 | $ | 3,556.6 | |||||
Liabilities and Shareholders' Equity | |||||||||
Current Liabilities: | |||||||||
Current maturities of long-term debt | $ | 14.4 | $ | 1.5 | |||||
Accounts payable | 125.3 | 120.9 | |||||||
Accrued payroll and payroll-related costs | 76.4 | 66.5 | |||||||
Accrued branded rebates | 21.6 | 34.6 | |||||||
Accrued and other current liabilities | 400.9 | 376.7 | |||||||
Total current liabilities | 638.6 | 600.2 | |||||||
Long-term debt | 2,201.3 | 918.3 | |||||||
Pension and postretirement benefits | 97.7 | 108.0 | |||||||
Environmental liabilities | 60.9 | 39.5 | |||||||
Deferred income taxes | 772.6 | 310.1 | |||||||
Other income tax liabilities | 123.7 | 153.1 | |||||||
Other liabilities | 200.2 | 171.8 | |||||||
Total Liabilities | 4,095.0 | 2,301.0 | |||||||
Shareholders' Equity: | |||||||||
Preferred shares | — | — | |||||||
Ordinary shares | 11.7 | 11.5 | |||||||
Ordinary shares held in treasury at cost | (1.9 | ) | — | ||||||
Additional paid-in capital | 1,141.5 | 1,102.1 | |||||||
Retained earnings | 66.6 | 33.5 | |||||||
Accumulated other comprehensive income | 110.5 | 108.5 | |||||||
Total Shareholders' Equity | 1,328.4 | 1,255.6 | |||||||
Total Liabilities and Shareholders' Equity | $ | 5,423.4 | $ | 3,556.6 | |||||
MALLINCKRODT PLC | ||||||||||
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS | ||||||||||
(unaudited, in millions) | ||||||||||
Nine Months Ended | ||||||||||
June 27, 2014 |
June 28, 2013 |
|||||||||
Cash Flows From Operating Activities: | ||||||||||
Net income | $ | 33.1 | $ | 25.3 | ||||||
Loss from discontinued operations, net of income taxes | 0.7 | 1.3 | ||||||||
Income from continuing operations | 33.8 | 26.6 | ||||||||
Adjustments to reconcile net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 158.7 | 102.2 | ||||||||
Share-based compensation | 14.4 | 11.4 | ||||||||
Deferred income taxes | (20.5 | ) | 7.5 | |||||||
Non-cash restructuring charge | 2.6 | — | ||||||||
Other non-cash items | 17.3 | (4.3 | ) | |||||||
Changes in assets and liabilities, net of the effects of acquisitions: | ||||||||||
Accounts receivable, net | (25.7 | ) | (137.9 | ) | ||||||
Inventories | (7.5 | ) | 12.3 | |||||||
Accounts payable | (29.0 | ) | (8.9 | ) | ||||||
Income taxes | (46.9 | ) | 39.8 | |||||||
Accrued and other liabilities | 53.0 | (24.8 | ) | |||||||
Other | 17.9 | (17.7 | ) | |||||||
Net cash provided by operating activities | 168.1 | 6.2 | ||||||||
Cash Flows From Investing Activities: | ||||||||||
Capital expenditures | (80.1 | ) | (110.5 | ) | ||||||
Acquisition and intangibles, net of cash acquired | (1,303.2 | ) | (88.1 | ) | ||||||
Restricted cash | 4.1 | — | ||||||||
Other | 8.7 | 0.1 | ||||||||
Net cash (used in) investing activities | (1,370.5 | ) | (198.5 | ) | ||||||
Cash Flows From Financing Activities: | ||||||||||
Issuance of external debt | 1,296.8 | 898.1 | ||||||||
Repayment of external debt | (30.1 | ) | — | |||||||
Repayment of capital leases | (1.1 | ) | (1.0 | ) | ||||||
Debt financing costs | (32.2 | ) | (12.0 | ) | ||||||
Excess tax benefit from share-based compensation | 5.2 | 3.4 | ||||||||
Net transfers to parent | — | (515.9 | ) | |||||||
Proceeds from stock option exercises | 19.9 | — | ||||||||
Repurchase of shares | (1.9 | ) | — | |||||||
Other | — | 0.1 | ||||||||
Net cash provided by financing activities | 1,256.6 | 372.7 | ||||||||
Effect of currency rate changes on cash | (1.8 | ) | — | |||||||
Net increase in cash and cash equivalents | 52.4 | 180.4 | ||||||||
Cash and cash equivalents at beginning of period | 275.5 | — | ||||||||
Cash and cash equivalents at end of period | $ | 327.9 | $ | 180.4 |
Source:
Mallinckrodt plc
John Moten, 314-654-6650
Vice President,
Investor Relations
john.moten@mallinckrodt.com
or
Lynn
Phillips, 314-654-3263
Manager, Media Relations
lynn.phillips@mallinckrodt.com
or
Meredith
Fischer, 314-654-3318
Senior Vice President, Communications
meredith.fischer@mallinckrodt.com