Made Solid Progress on Launch of Terlivaz® with Significant Medical Community Interest
Appointed Chief Scientific Officer with Proven Record of Executing Clinical Programs and Advancing Product Development Pipelines
Increased Cash on Hand to
Fiscal 2023 Guidance for Adjusted EBITDA is
Conference Call and Webcast Today at
"We are pleased with our performance this quarter as we continued the steady execution of our strategic priorities," said
Fourth Quarter 2022 Financial Results1
Mallinckrodt's net sales in the fourth quarter 2022 were
The Company's Specialty Brands segment reported net sales of
Mallinckrodt's Specialty Generics segment reported net sales of
The Company recorded a net loss for the fourth quarter of
Mallinckrodt's Adjusted EBITDA in the fourth quarter was
Mallinckrodt's cash balance at the end of the fourth quarter was
Total principal debt outstanding at the end of the fourth quarter was
Fiscal Year 2022 Financial Results2
Mallinckrodt net sales for the 2022 fiscal year includes
The Company reported net loss in the Predecessor period of
Mallinckrodt's Adjusted EBITDA for the 2022 fiscal year was
2023 Financial Guidance3
For the full-year 2023, Mallinckrodt expects:
2023 Guidance |
|
Total net sales |
|
Adjusted EBITDA |
|
The Company does not provide a reconciliation of forward-looking non-GAAP guidance to the comparable GAAP measures as these items are inherently uncertain and difficult to estimate and cannot be predicted without unreasonable effort. Please see the "Reconciliation of Non-GAAP Financial Guidance" included in this release for a reconciliation of GAAP and non-GAAP financial measures for the fourth quarter and year to date.
Conference Call and Webcast
Mallinckrodt will hold a conference call today,
About Mallinckrodt
Mallinckrodt is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The Company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, hepatology, nephrology, pulmonology, ophthalmology and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; cultured skin substitutes and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. To learn more about Mallinckrodt, visit www.mallinckrodt.com.
Mallinckrodt uses its website as a channel of distribution of important company information, such as press releases, investor presentations and other financial information. It also uses its website to expedite public access to time-critical information regarding the Company in advance of or in lieu of distributing a press release or a filing with the
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted EBITDA, adjusted net income, adjusted diluted earnings per share, adjusted gross profit, adjusted SG&A, net sales growth (loss) on a constant-currency basis, and net debt, which are considered "non-GAAP" financial measures under applicable
Adjusted EBITDA represents net income or loss prepared in accordance with accounting principles generally accepted in the
Adjusted net income, adjusted gross profit and adjusted SG&A represent amounts prepared in accordance with GAAP, 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 expense; discontinued operations; changes in fair value of contingent consideration obligations; significant legal and environmental charges; divestitures; separation costs; gains on debt extinguishment, net; acquisition and fresh-start related expenses; unrealized gain or loss on equity investments; reorganization items, net; tax effects of the aforementioned adjustments, changes in uncertain tax positions, as well as tax impacts from certain transactions, such as acquisitions or legal entity or asset reorganizations; and other items identified by the company. Adjusted diluted earnings per share represent adjusted net income divided by the number of diluted shares.
Segment net sales growth (loss) on a constant-currency basis measures the change in segment net sales between current- and prior-year periods using a constant currency, the exchange rate in effect during the applicable prior-year period.
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 they will be used by investors to measure Mallinckrodt's operating results. Management believes that presenting these adjusted measures provides useful information about the Company's performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance.
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.
Further information regarding non-GAAP financial measures can be found on the Investor Relations page of the Company's website.
Predecessor and Successor Periods
Mallinckrodt's financial results for the year-to-date period ending
Mallinckrodt's results of operations as reported in its consolidated financial statements for the Successor and Predecessor periods are in accordance with GAAP. The presentation of the combined financial information of the Predecessor and Successor periods for the fiscal year ended
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, legal, economic, business, competitive and/or regulatory factors affecting Mallinckrodt's businesses, and any other statements regarding events or developments Mallinckrodt believes or anticipates 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: the comparability of Mallinckrodt's post-emergence financial results to its historical results and the projections filed with the bankruptcy court, changes in Mallinckrodt's business strategy that may be implemented by its board of directors, the listing of Mallinckrodt's ordinary shares on
The "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Mallinckrodt's Annual Report on Form 10-K for the fiscal year ended
CONTACTS
Investor Relations
Global Corporate Controller and Chief Investor Relations Officer
314-654-3638
daniel.speciale@mnk.com
Vice President, Investor Relations
314-654-3950
derek.belz@mnk.com
Media
Michael Freitag / Aaron Palash / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Mallinckrodt, the "M" brand mark and the Mallinckrodt Pharmaceuticals logo are trademarks of a Mallinckrodt company. Other brands are trademarks of a Mallinckrodt company or their respective owners. © 2023.
Exhibit 99.1
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
(unaudited, in millions, except per share data) |
||||||
Successor |
Predecessor |
|||||
Three Months |
Percent of Net sales |
Three Months |
Percent of Net sales |
|||
Net sales |
$ 489.3 |
100.0 % |
$ 597.2 |
100.0 % |
||
Cost of sales |
438.9 |
89.7 |
358.7 |
60.1 |
||
Gross profit |
50.4 |
10.3 |
238.5 |
39.9 |
||
Selling, general and administrative expenses |
130.6 |
26.7 |
173.5 |
29.1 |
||
Research and development expenses |
29.7 |
6.1 |
38.9 |
6.5 |
||
Restructuring charges, net |
7.8 |
1.6 |
9.4 |
1.6 |
||
Non-restructuring impairment charges |
— |
— |
90.4 |
15.1 |
||
Operating loss |
(117.7) |
(24.1) |
(73.7) |
(12.3) |
||
Interest expense |
(155.2) |
(31.7) |
(61.9) |
(10.4) |
||
Interest income |
2.5 |
0.5 |
— |
— |
||
Other income, net |
9.2 |
1.9 |
6.1 |
1.0 |
||
Reorganization items, net |
(5.5) |
(1.1) |
(99.0) |
(16.6) |
||
Loss from continuing operations before income taxes |
(266.7) |
(54.5) |
(228.5) |
(38.3) |
||
Income tax benefit |
(17.4) |
(3.6) |
(24.4) |
(4.1) |
||
Loss from continuing operations |
(249.3) |
(51.0) |
(204.1) |
(34.2) |
||
(Loss) income from discontinued operations, net of income taxes |
(0.2) |
— |
0.1 |
— |
||
Net loss |
$ (249.5) |
(51.0) % |
$ (204.0) |
(34.2) % |
||
Basic loss per share: |
||||||
Loss from continuing operations |
$ (18.93) |
$ (2.41) |
||||
(Loss) income from discontinued operations |
(0.02) |
— |
||||
Net loss |
$ (18.94) |
$ (2.41) |
||||
Diluted loss per share: |
||||||
Loss from continuing operations |
$ (18.93) |
$ (2.41) |
||||
(Loss) income from discontinued operations |
(0.02) |
— |
||||
Net loss |
$ (18.94) |
$ (2.41) |
||||
Weighted-average number of shares outstanding |
||||||
Basic weighted-average shares outstanding |
13.2 |
84.7 |
||||
Diluted weighted-average shares outstanding |
13.2 |
84.7 |
(1) |
The Company reports its results based on a "52-53 week" year ending on the last Friday of December. The three months ended |
|
||||
CONSOLIDATED ADJUSTED EBITDA |
||||
(unaudited, in millions) |
||||
Successor |
Predecessor |
|||
Three Months |
Three Months |
|||
Net loss |
$ (249.5) |
$ (204.0) |
||
Adjustments: |
||||
Interest expense, net |
152.7 |
61.9 |
||
Income tax benefit |
(17.4) |
(24.4) |
||
Depreciation (1) |
14.0 |
24.4 |
||
Amortization |
136.6 |
145.3 |
||
Restructuring charges, net |
7.8 |
9.4 |
||
Non-restructuring impairment charge |
— |
90.4 |
||
Loss (income) from discontinued operations |
0.2 |
(0.1) |
||
Change in contingent consideration fair value |
1.3 |
0.2 |
||
Significant legal and environmental charges (2) |
— |
34.3 |
||
Separation costs (3) |
5.1 |
0.2 |
||
Unrealized (gain) loss on equity investment |
(8.3) |
0.1 |
||
Reorganization items, net |
5.5 |
99.0 |
||
Share-based compensation |
0.9 |
1.8 |
||
Japanese consumption tax credit |
— |
(6.8) |
||
Gain on debt extinguishment at par |
(17.5) |
— |
||
Fresh-start impact on debt extinguishment |
18.3 |
— |
||
Bad debt expense - customer bankruptcy |
0.6 |
— |
||
Fresh-start inventory-related expense (4) |
125.2 |
— |
||
As adjusted: |
$ 175.5 |
$ 231.7 |
(1) |
Includes |
(2) |
Represents an increase in environmental liabilities during the three months ended |
(3) |
Represents costs included in SG&A expenses, primarily related to expenses incurred related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence coupled with the severance of certain former executives of the Predecessor during the three months ended |
(4) |
Includes |
|
|||||
NON-GAAP MEASURES |
|||||
(unaudited, in millions except per share data) |
|||||
Successor |
|||||
Three Months |
|||||
Gross profit |
SG&A |
Net (loss) income |
Diluted net |
||
Net loss |
$ 50.4 |
$ 130.6 |
$ (249.5) |
$ (18.94) |
|
Adjustments: |
|||||
Intangible asset amortization |
136.6 |
— |
136.6 |
10.37 |
|
Restructuring and related charges, net |
0.8 |
(0.2) |
8.8 |
0.67 |
|
Loss from discontinued operations |
— |
— |
0.2 |
0.02 |
|
Change in contingent consideration fair value |
— |
(1.3) |
1.3 |
0.10 |
|
Separation costs (1) |
— |
(5.1) |
5.1 |
0.39 |
|
Unrealized gain on equity investment |
— |
— |
(8.3) |
(0.63) |
|
Reorganization items, net |
— |
— |
5.5 |
0.42 |
|
Gain on debt extinguishment at par |
— |
— |
(17.5) |
(1.33) |
|
Fresh-start impact on debt extinguishment |
— |
— |
18.3 |
1.39 |
|
Bad debt expense - customer bankruptcy |
— |
(0.6) |
0.6 |
0.05 |
|
Fresh-start inventory-related expense (2) |
125.2 |
— |
125.2 |
9.51 |
|
Non-cash interest expense - accretion |
— |
— |
66.9 |
5.08 |
|
Income taxes (3) |
— |
— |
(39.6) |
(3.01) |
|
As adjusted: |
$ 313.0 |
$ 123.4 |
$ 53.6 |
$ 4.07 |
|
Percent of net sales |
64.0 % |
25.2 % |
11.0 % |
(1) |
Represents costs included in SG&A expenses, primarily related to expenses incurred related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence coupled with the severance of certain former executives of the Predecessor during the three months ended |
(2) |
Includes |
(3) |
Includes tax effects of above adjustments (unless otherwise separately stated), changes in uncertain tax positions and tax impacts from certain transactions, such as legal entity or asset reorganizations. |
|
||||
SEGMENT OPERATING INCOME |
||||
(unaudited, in millions) |
||||
Successor |
Predecessor |
|||
Three Months |
Three Months |
|||
Specialty Brands (1) |
$ 65.6 |
$ 224.2 |
||
Specialty Generics (2) |
5.1 |
34.1 |
||
Segment operating income |
70.7 |
258.3 |
||
Unallocated amounts: |
||||
Corporate and unallocated expenses (3) |
(23.4) |
(60.5) |
||
Depreciation and amortization |
(150.6) |
(169.7) |
||
Share-based compensation |
(0.9) |
(1.8) |
||
Restructuring charges, net |
(7.8) |
(9.4) |
||
Non-restructuring impairment charges |
— |
(90.4) |
||
Separation costs (4) |
(5.1) |
(0.2) |
||
Bad debt expense - customer bankruptcy |
(0.6) |
— |
||
Operating loss |
$ (117.7) |
$ (73.7) |
(1) |
Includes |
(2) |
Includes |
(3) |
Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. |
(4) |
Represents costs included in SG&A expenses, primarily related to expenses incurred related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence coupled with the severance of certain former executives of the Predecessor during the three months ended |
|
||||||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||
(unaudited, in millions) |
||||||||||
Successor |
Predecessor |
Non-GAAP Measure |
||||||||
Three Months |
Three Months |
Percent change |
Currency |
Constant- |
||||||
Specialty Brands |
$ 320.7 |
$ 397.4 |
(19.3) % |
(0.7) % |
(18.6) % |
|||||
Specialty Generics |
168.6 |
199.8 |
(15.6) |
(0.1) |
(15.5) |
|||||
Net sales |
$ 489.3 |
$ 597.2 |
(18.1) % |
(0.5) % |
(17.6) % |
|
||||||||||
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||
(unaudited, in millions) |
||||||||||
Successor |
Predecessor |
Non-GAAP Measure |
||||||||
Three Months |
Three Months |
Percent change |
Currency |
Constant- |
||||||
Specialty Brands |
||||||||||
Acthar Gel |
$ 140.9 |
$ 169.7 |
(17.0) % |
— |
(17.0) % |
|||||
INOmax |
79.7 |
110.2 |
(27.7) |
(0.1) |
(27.6) |
|||||
Ofirmev |
(0.1) |
4.9 |
(102.0) |
— |
(102.0) |
|||||
|
62.3 |
68.7 |
(9.3) |
(2.9) |
(6.4) |
|||||
Amitiza |
34.2 |
41.1 |
(16.8) |
(0.2) |
(16.6) |
|||||
Other |
3.7 |
2.8 |
32.1 |
(16.0) |
48.1 |
|||||
Specialty Brands |
320.7 |
397.4 |
(19.3) |
(0.7) |
(18.6) |
|||||
Specialty Generics |
||||||||||
Opioids |
62.7 |
58.2 |
7.7 |
— |
7.7 |
|||||
ADHD |
15.0 |
12.6 |
19.0 |
— |
19.0 |
|||||
Addiction treatment |
15.9 |
20.6 |
(22.8) |
(0.5) |
(22.3) |
|||||
Other |
3.8 |
3.6 |
5.6 |
— |
5.6 |
|||||
Generics |
97.4 |
95.0 |
2.5 |
(0.1) |
2.6 |
|||||
Controlled substances |
25.6 |
31.0 |
(17.4) |
— |
(17.4) |
|||||
APAP |
42.2 |
69.1 |
(38.9) |
— |
(38.9) |
|||||
Other |
3.4 |
4.7 |
(27.7) |
— |
(27.7) |
|||||
API |
71.2 |
104.8 |
(32.1) |
— |
(32.1) |
|||||
Specialty Generics |
168.6 |
199.8 |
(15.6) |
(0.1) |
(15.5) |
|||||
Net sales |
$ 489.3 |
$ 597.2 |
(18.1) % |
(0.5) |
(17.6) % |
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(unaudited, in millions, except per share data) |
|||||||||
Successor |
Predecessor |
||||||||
Period from |
Period from |
Fiscal Year Ended |
|||||||
Percent of Net sales |
Percent of Net sales |
Percent of Net sales |
|||||||
Net sales |
$ 1,039.7 |
100.0 % |
$ 874.6 |
100.0 % |
$ 2,208.8 |
100.0 % |
|||
Cost of sales |
991.0 |
95.3 |
582.0 |
66.5 |
1,317.1 |
59.6 |
|||
Gross profit |
48.7 |
4.7 |
292.6 |
33.5 |
891.7 |
40.4 |
|||
Selling, general and administrative expenses |
290.1 |
27.9 |
275.3 |
31.5 |
581.8 |
26.3 |
|||
Research and development expenses |
64.2 |
6.2 |
65.5 |
7.5 |
205.2 |
9.3 |
|||
Restructuring charges, net |
11.1 |
1.1 |
9.6 |
1.1 |
26.9 |
1.2 |
|||
Non-restructuring impairment charges |
— |
— |
— |
— |
154.9 |
7.0 |
|||
Losses on divestiture |
— |
— |
— |
— |
0.8 |
— |
|||
Opioid-related litigation settlement loss |
— |
— |
— |
— |
125.0 |
5.7 |
|||
Operating loss |
(316.7) |
(30.5) |
(57.8) |
(6.6) |
(202.9) |
(9.2) |
|||
Interest expense |
(324.3) |
(31.2) |
(108.6) |
(12.4) |
(222.6) |
(10.1) |
|||
Interest income |
3.9 |
0.4 |
0.6 |
0.1 |
1.9 |
0.1 |
|||
Other income (expense), net |
10.0 |
1.0 |
(14.6) |
(1.7) |
22.0 |
1.0 |
|||
Reorganization items, net |
(23.2) |
(2.2) |
(630.9) |
(72.1) |
(428.2) |
(19.4) |
|||
Loss from continuing operations before income taxes |
(650.3) |
(62.5) |
(811.3) |
(92.8) |
(829.8) |
(37.6) |
|||
Income tax benefit |
(52.0) |
(5.0) |
(497.3) |
(56.9) |
(106.3) |
(4.8) |
|||
Loss from continuing operations |
(598.3) |
(57.5) |
(314.0) |
(35.9) |
(723.5) |
(32.8) |
|||
Income from discontinued operations, net of income taxes |
0.2 |
— |
0.9 |
0.1 |
6.1 |
0.3 |
|||
Net loss |
$ (598.1) |
(57.5) % |
$ (313.1) |
(35.8) % |
$ (717.4) |
(32.5) % |
|||
Basic loss per share: |
|||||||||
Loss from continuing operations |
$ (45.43) |
$ (3.70) |
$ (8.54) |
||||||
Income from discontinued operations |
0.02 |
0.01 |
0.07 |
||||||
Net loss |
$ (45.41) |
$ (3.69) |
$ (8.47) |
||||||
Diluted loss per share: |
|||||||||
Loss from continuing operations |
$ (45.43) |
$ (3.70) |
$ (8.54) |
||||||
Income from discontinued operations |
0.02 |
0.01 |
0.07 |
||||||
Net loss |
$ (45.41) |
$ (3.69) |
$ (8.47) |
||||||
Weighted-average number of shares outstanding: |
|||||||||
Basic |
13.2 |
84.8 |
84.7 |
||||||
Diluted |
13.2 |
84.8 |
84.7 |
(1) |
The Company reports its results based on a "52-53 week" year ending on the last Friday of December. The period |
|
||||||||
CONSOLIDATED ADJUSTED EBITDA |
||||||||
(unaudited, in millions) |
||||||||
Successor |
Predecessor |
Non-GAAP Combined |
Predecessor |
|||||
Period from |
Period from |
Fiscal Year |
Fiscal Year |
|||||
Net loss |
$ (598.1) |
$ (313.1) |
$ (911.2) |
$ (717.4) |
||||
Adjustments: |
||||||||
Interest expense, net |
320.4 |
108.0 |
428.4 |
220.7 |
||||
Income tax benefit |
(52.0) |
(497.3) |
(549.3) |
(106.3) |
||||
Depreciation |
28.8 |
40.0 |
68.8 |
94.7 |
||||
Amortization |
318.7 |
281.8 |
600.5 |
581.1 |
||||
Restructuring charges, net (1) |
11.1 |
9.6 |
20.7 |
26.9 |
||||
Non-restructuring impairment charges |
— |
— |
— |
154.9 |
||||
Income from discontinued operations |
(0.2) |
(0.9) |
(1.1) |
(6.1) |
||||
Change in contingent consideration fair value |
0.5 |
— |
0.5 |
(7.4) |
||||
Significant legal and environmental charges (2) |
— |
11.1 |
11.1 |
159.3 |
||||
Losses on divestiture |
— |
— |
— |
0.8 |
||||
Separation costs (3) |
21.2 |
9.0 |
30.2 |
1.2 |
||||
Unrealized (gain) loss on equity investments |
(9.2) |
22.2 |
13.0 |
(4.7) |
||||
Reorganization items, net |
23.2 |
630.9 |
654.1 |
428.2 |
||||
Share-based compensation |
1.4 |
1.7 |
3.1 |
10.2 |
||||
Japanese consumption tax credit |
— |
— |
— |
(6.8) |
||||
Gain on debt extinguishment at par |
(21.4) |
— |
(21.4) |
— |
||||
Fresh-start impact on debt extinguishment |
22.4 |
— |
22.4 |
— |
||||
Bad debt expense - customer bankruptcy |
6.4 |
— |
6.4 |
— |
||||
Fresh-start inventory-related expense (4) |
298.7 |
— |
298.7 |
— |
||||
As adjusted: |
$ 371.9 |
$ 303.0 |
$ 674.9 |
$ 829.3 |
||||
(1) |
Includes |
(2) |
Fiscal 2021 (Predecessor) includes a |
(3) |
Non-GAAP combined fiscal year ended |
(4) |
Includes |
|
||||||
SEGMENT OPERATING INCOME |
||||||
(unaudited, in millions) |
||||||
Successor |
Predecessor |
|||||
Period from |
Period from |
Fiscal Year |
||||
Specialty Brands (1) |
$ 113.8 |
$ 267.2 |
$ 812.8 |
|||
Specialty Generics (2) |
(3.6) |
65.3 |
107.9 |
|||
Segment operating income |
110.2 |
332.5 |
920.7 |
|||
Unallocated amounts: |
||||||
Corporate and unallocated expenses (3) |
(39.3) |
(48.2) |
(129.6) |
|||
Depreciation and amortization |
(347.5) |
(321.8) |
(675.8) |
|||
Share-based compensation |
(1.4) |
(1.7) |
(10.2) |
|||
Restructuring charges, net |
(11.1) |
(9.6) |
(26.9) |
|||
Non-restructuring impairment charges |
— |
— |
(154.9) |
|||
Separation costs (4) |
(21.2) |
(9.0) |
(1.2) |
|||
Opioid-related litigation settlement loss |
— |
— |
(125.0) |
|||
Bad debt expense - customer bankruptcy |
(6.4) |
— |
— |
|||
Operating loss |
$ (316.7) |
$ (57.8) |
$ (202.9) |
(1) |
Includes |
(2) |
Includes |
(3) |
Includes administration expenses and certain compensation, legal, environmental and other costs not charged to our reportable segments. |
(4) |
Represents costs included in SG&A, primarily related to expenses incurred related to severance for the former CEO and certain former executives of the Predecessor and the Predecessor directors' and officers' insurance policies, in addition to professional fees and costs incurred as we explore potential sales of non-core assets to enable further deleveraging post-emergence. |
|
||||||
SEGMENT |
||||||
(unaudited, in millions) |
||||||
Successor |
Predecessor |
|||||
Period from |
Period from |
Fiscal Year |
||||
Specialty Brands |
$ 682.4 |
$ 587.1 |
$ 1,547.0 |
|||
Specialty Generics |
357.3 |
287.5 |
661.8 |
|||
Net sales |
$ 1,039.7 |
$ 874.6 |
$ 2,208.8 |
|
||||||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||
(unaudited, in millions) |
||||||||||
Non-GAAP |
Predecessor |
Non-GAAP Measure |
||||||||
Fiscal Year |
Fiscal Year |
Percent change |
Currency |
Constant- |
||||||
Specialty Brands |
$ 1,269.5 |
$ 1,547.0 |
(17.9) % |
(0.6) % |
(17.3) % |
|||||
Specialty Generics |
644.8 |
661.8 |
(2.6) |
— |
(2.6) |
|||||
Net sales |
$ 1,914.3 |
$ 2,208.8 |
(13.3) % |
(0.4) % |
(12.9) % |
|
||||||
SELECT PRODUCT |
||||||
(unaudited, in millions) |
||||||
Successor |
Predecessor |
|||||
Period from |
Period from |
Fiscal Year Ended December 31, |
||||
Specialty Brands |
||||||
Acthar |
$ 294.1 |
$ 221.9 |
$ 593.6 |
|||
INOmax |
173.9 |
165.8 |
448.5 |
|||
Ofirmev |
(0.3) |
2.5 |
28.9 |
|||
|
130.5 |
109.6 |
266.5 |
|||
Amitiza |
77.1 |
81.5 |
196.9 |
|||
Other |
7.1 |
5.8 |
12.6 |
|||
Specialty Brands |
682.4 |
587.1 |
1,547.0 |
|||
Specialty Generics |
||||||
Opioids |
117.9 |
88.8 |
213.2 |
|||
ADHD |
28.4 |
17.5 |
37.4 |
|||
Addiction treatment |
35.0 |
30.0 |
68.3 |
|||
Other |
6.8 |
4.9 |
12.0 |
|||
Generics |
188.1 |
141.2 |
330.9 |
|||
Controlled substances |
47.0 |
37.6 |
93.4 |
|||
APAP |
111.4 |
96.5 |
215.9 |
|||
Other |
10.8 |
12.2 |
21.6 |
|||
API |
169.2 |
146.3 |
330.9 |
|||
Specialty Generics |
357.3 |
287.5 |
661.8 |
|||
Net sales |
$ 1,039.7 |
$ 874.6 |
$ 2,208.8 |
|
||||||||||
SELECT PRODUCT |
||||||||||
(unaudited, in millions) |
||||||||||
Non-GAAP Combined |
Predecessor |
Non-GAAP Measures |
||||||||
Fiscal Year |
Fiscal Year |
Percent change |
Currency |
Constant- |
||||||
Specialty Brands |
||||||||||
Acthar |
$ 516.0 |
$ 593.6 |
(13.1) % |
— % |
(13.1) % |
|||||
INOmax |
339.7 |
448.5 |
(24.3) |
(0.1) |
(24.2) |
|||||
Ofirmev |
2.2 |
28.9 |
(92.4) |
— |
(92.4) |
|||||
|
240.1 |
266.5 |
(9.9) |
(3.0) |
(6.9) |
|||||
Amitiza |
158.6 |
196.9 |
(19.5) |
(0.1) |
(19.4) |
|||||
Other |
12.9 |
12.6 |
2.4 |
(7.6) |
10.0 |
|||||
Specialty Brands |
1,269.5 |
1,547.0 |
(17.9) |
(0.6) |
(17.3) |
|||||
Specialty Generics |
||||||||||
Opioids |
206.7 |
213.2 |
(3.0) |
— |
(3.0) |
|||||
ADHD |
45.9 |
37.4 |
22.7 |
— |
22.7 |
|||||
Addiction treatment |
65.0 |
68.3 |
(4.8) |
(0.5) |
(4.3) |
|||||
Other |
11.7 |
12.0 |
(2.5) |
— |
(2.5) |
|||||
Generics |
329.3 |
330.9 |
(0.5) |
(0.1) |
(0.4) |
|||||
Controlled substances |
84.6 |
93.4 |
(9.4) |
— |
(9.4) |
|||||
APAP |
207.9 |
215.9 |
(3.7) |
— |
(3.7) |
|||||
Other |
23.0 |
21.6 |
6.5 |
— |
6.5 |
|||||
API |
315.5 |
330.9 |
(4.7) |
— |
(4.7) |
|||||
Specialty Generics |
644.8 |
661.8 |
(2.6) |
— |
(2.6) |
|||||
Net sales |
$ 1,914.3 |
$ 2,208.8 |
(13.3) % |
(0.4) % |
(12.9) % |
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(unaudited, in millions) |
||||
Successor |
Predecessor |
|||
|
|
|||
Assets |
||||
Current Assets: |
||||
Cash and cash equivalents |
$ 409.5 |
$ 1,345.0 |
||
Accounts receivable, net |
405.3 |
439.1 |
||
Inventories |
947.6 |
347.2 |
||
Prepaid expenses and other current assets |
273.4 |
178.3 |
||
Total current assets |
2,035.8 |
2,309.6 |
||
Property, plant and equipment, net |
457.6 |
776.0 |
||
Intangible assets, net |
2,843.8 |
5,448.4 |
||
Deferred income taxes |
475.5 |
— |
||
Other assets |
201.1 |
382.3 |
||
Total Assets |
$ 6,013.8 |
$ 8,916.3 |
||
Liabilities and Shareholders' Equity |
||||
Current Liabilities: |
||||
Current maturities of long-term debt |
$ 44.1 |
$ 1,388.9 |
||
Accounts payable |
114.0 |
123.0 |
||
Accrued payroll and payroll-related costs |
49.5 |
84.6 |
||
Accrued interest |
29.0 |
17.0 |
||
Acthar-Gel Related Litigation Settlement liability |
16.5 |
— |
||
Opioid-Related Litigation Settlement liability |
200.0 |
— |
||
Accrued and other current liabilities |
290.7 |
328.7 |
||
Total current liabilities |
743.8 |
1,942.2 |
||
Long-term debt |
3,027.7 |
— |
||
Acthar Gel-Related Settlement liability |
75.0 |
— |
||
Opioid-Related Litigation Settlement liability |
379.9 |
— |
||
Pension and postretirement benefits |
41.0 |
30.1 |
||
Environmental liabilities |
35.8 |
43.0 |
||
Deferred income taxes |
0.3 |
20.9 |
||
Other income tax liabilities |
18.2 |
83.2 |
||
Other liabilities |
78.4 |
85.8 |
||
Liabilities subject to compromise |
— |
6,397.7 |
||
Total Liabilities |
4,400.1 |
8,602.9 |
||
Shareholders' Equity: |
||||
Preferred shares |
— |
— |
||
Ordinary shares |
0.1 |
18.9 |
||
Ordinary shares held in treasury at cost |
— |
(1,616.1) |
||
Additional paid-in capital |
2,191.0 |
5,597.8 |
||
Retained deficit |
(588.2) |
(3,678.9) |
||
Accumulated other comprehensive income (loss) |
10.8 |
(8.3) |
||
Total Shareholders' Equity |
1,613.7 |
313.4 |
||
Total Liabilities and Shareholders' Equity |
$ 6,013.8 |
$ 8,916.3 |
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(unaudited, in millions) |
||||||
Successor |
Predecessor |
|||||
Period from |
Period from |
Fiscal Year |
||||
Cash Flows From Operating Activities: |
||||||
Net loss |
$ (598.1) |
$ (313.1) |
$ (717.4) |
|||
Adjustments to reconcile net cash from operating activities: |
||||||
Depreciation and amortization |
347.5 |
321.8 |
675.8 |
|||
Share-based compensation |
1.4 |
1.7 |
10.2 |
|||
Deferred income taxes |
(24.9) |
(473.0) |
(59.9) |
|||
Non-cash impairment charges |
— |
— |
154.9 |
|||
Losses on divestiture |
— |
— |
0.8 |
|||
Reorganization items, net |
— |
425.4 |
22.5 |
|||
Non-cash accretion expense |
139.2 |
— |
— |
|||
Other non-cash items |
16.8 |
35.3 |
(1.6) |
|||
Changes in assets and liabilities: |
||||||
Accounts receivable, net |
(18.1) |
49.8 |
98.2 |
|||
Inventories |
267.9 |
(33.2) |
(14.0) |
|||
Accounts payable |
8.1 |
(3.6) |
(1.1) |
|||
Accrued consulting |
(90.7) |
0.1 |
14.3 |
|||
Income taxes |
(30.1) |
(26.9) |
108.5 |
|||
Opioid-related litigation settlement liability |
— |
— |
125.0 |
|||
Medicaid lawsuit |
— |
— |
(4.2) |
|||
Payment of claims |
— |
(629.0) |
— |
|||
Other |
28.1 |
2.4 |
43.4 |
|||
Net cash from operating activities |
47.1 |
(642.3) |
455.4 |
|||
Cash Flows From Investing Activities: |
||||||
Capital expenditures |
(28.8) |
(33.4) |
(55.3) |
|||
Proceeds related to divestiture, net of cash |
70.0 |
— |
15.7 |
|||
Other |
(13.7) |
0.4 |
1.8 |
|||
Net cash from investing activities |
27.5 |
(33.0) |
(37.8) |
|||
Cash Flows From Financing Activities: |
||||||
Issuance of external debt |
— |
650.0 |
— |
|||
Repayment of external debt |
(50.1) |
(904.6) |
(137.5) |
|||
Debt financing costs |
— |
(24.1) |
— |
|||
Other |
(4.0) |
— |
— |
|||
Net cash from financing activities |
(54.1) |
(278.7) |
(137.5) |
|||
Effect of currency rate changes on cash |
(1.1) |
(3.9) |