Launched Terlivaz® Following U.S.
Food and Drug Administration (FDA) Approval in September; Submitted
U.S. FDA Premarket Notification Application for Next-Generation
Delivery System of INOmax®
Strengthened Organization with Appointment of
New Executives and Directors; Ordinary Shares Commenced Trading on
NYSE American in October
Conference Call and Webcast Today at
8:30 a.m. ET
DUBLIN, Nov. 8, 2022
/PRNewswire/ -- Mallinckrodt
plc (NYSE American: MNK) ("Mallinckrodt" or the "Company"), a global specialty
pharmaceutical company, today reported results for the third
quarter ended September 30, 2022.1
"We are pleased to reaffirm our 2022 guidance following solid
performance in the third quarter," said Siggi Olafsson, President and Chief Executive
Officer. "We made important progress executing on our strategic
initiatives, including advancing Mallinckrodt's branded pipeline, improving our
balance sheet and strengthening the organization with key
leadership appointments at the executive and board levels, adding
deep commercial and human resources expertise. More recently, we
received approval and commenced trading on NYSE American, providing
enhanced liquidity and access for our shareholders."
Mr. Olafsson continued, "We are also excited to report that we
recently launched Terlivaz (terlipressin) for injection, which in
September became the first and only FDA-approved product indicated
to improve kidney function in adults with hepatorenal syndrome.
Looking ahead, I am confident we are well-positioned to continue
advancing our strategic initiatives and create long-term value for
shareholders while improving outcomes for patients with severe and
critical conditions."
Third Quarter 2022 Financial
Results1
Mallinckrodt's net sales in the
third quarter 2022 were $465.4
million, as compared to $507.2
million in the third quarter 2021. This reflects a decrease
of 8.2% on a reported basis and 7.5% on a constant currency
basis.
The Company's Specialty Brands segment reported net sales of
$303.5 million, as compared to
$359.7 million. This reflects a
decrease of 15.6% on a reported basis and 14.7% on a constant
currency basis, primarily due to the impact of competition;
utilization of certain products due to the continued impact of the
pandemic; and continued scrutiny on overall specialty
pharmaceutical spending.
Mallinckrodt's Specialty Generics
segment reported net sales of $161.9 million, as compared to $147.5 million. This reflects an increase of 9.8%
on a reported basis and 9.9% on a constant currency basis,
primarily due to growth in acetaminophen (APAP) and
attention-deficit hyperactivity disorder (ADHD) products.
The Company recorded a net loss for the third quarter of
$284.9 million, as compared to a net
loss of $263.7 million. Diluted loss
per share was $21.58 with adjusted
diluted earnings per share of $5.25
for the third quarter.
Mallinckrodt's Adjusted EBITDA in
the third quarter was $166.1 million,
as compared to $185.7 million. This
reflects a decrease of 10.6%, primarily due to lower net
sales; investments associated with the launches of
StrataGraft® (allogeneic cultured keratinocytes and
dermal fibroblasts in murine collagen - dsat) and Terlivaz; and the
impact from foreign currency, partially offset by other reductions
in selling, general and administrative (SG&A) expenses and
research and development (R&D) expenses as a result of the
Company's initiatives to improve its overall cost structure.
Mallinckrodt's cash balance at the
end of the third quarter was $391.2
million, and the Company continues to maintain an undrawn
$200 million accounts receivable
financing facility, ending the quarter with approximately
$590 million in liquidity. Total
principal debt outstanding at the end of the third quarter was
$3.584 billion, with net debt of
$3.193 billion, which reflects
certain repurchases of second lien notes due 2025 and 2029 at a
discount.
|
|
|
|
|
|
1 The
Company's quarterly comparisons
are to a Successor period (three months
ended September 30, 2022) and a Predecessor period (three months
ended September 24, 2021). As a result of the application of
fresh-start accounting, the Company's financial statements for
periods prior to June 16, 2022 are not comparable to those for
periods subsequent to June 16, 2022.
|
Pipeline Highlights
Mallinckrodt received U.S. Food and
Drug Administration (FDA) approval of Terlivaz (terlipressin) for
injection in September, ahead of its December 2022 PDUFA date. This enabled the
Company to subsequently launch Terlivaz ahead of schedule, and
product is now shipping across the United
States.
In addition, the Company made progress during the third quarter
toward its planned 2023 launch of its next-generation delivery
system of INOmax (nitric oxide) gas, for inhalation. In September,
Mallinckrodt submitted a 510(k)
premarket notification application to the FDA. Consistent with its
review process, the FDA asked Mallinckrodt to provide summary tables of certain
submitted data, which the Company anticipates submitting later this
month.
2022 Financial Guidance
For the full-year 2022, Mallinckrodt
reaffirmed the following guidance:
|
2022
Guidance
|
|
Total net
sales
|
$1.875 billion to
$1.925 billion
|
|
Total net sales for
Specialty Brands segment
|
$1.250 billion to
$1.280 billion
|
|
Total net sales for
Specialty Generics segment
|
$625 million to $645
million
|
|
Adjusted
EBITDA
|
$630 million to $660
million
|
Conference Call and Webcast
Mallinckrodt will hold a conference
call today, November 8, 2022, at
8:30 a.m. Eastern Time to discuss the
results of its financial performance for the third quarter 2022.
The live call and subsequent replay can be accessed as follows:
- Live Call Participant Registration (including dial-in):
https://register.vevent.com/register/BIf21622d19b2541d683e118c8be5a33c2
- Directly via the webcast link (live and replay):
https://edge.media-server.com/mmc/p/mqe6ixxi
- At the Company's website:
https://ir.mallinckrodt.com/
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 U.S.
Securities and Exchange Commission (SEC) disclosing the same
information. Therefore, investors should look to the Investor
Relations page of the website for important and time-critical
information. Visitors to the website can also register to receive
automatic e-mail and other notifications alerting them when new
information is made available on the Investor Relations page of the
website.
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
on a constant-currency basis, and net debt, which are considered
"non-GAAP" financial measures under applicable SEC rules and
regulations.
Adjusted EBITDA represents net income or loss 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. Adjustments to GAAP amounts include, as applicable to
each measure, interest expense, net; income taxes; depreciation;
amortization; restructuring charges, net; non-restructuring
impairment charges; 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;
unrealized gain or loss on equity investment; reorganization items,
net; share-based compensation; fresh-start related expenses; and
other items identified by the Company.
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 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 September 30, 2022 represents the total
principal debt outstanding of $3.584
billion, less cash of $391.2
million, each as prepared in accordance with GAAP.
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 certain 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 unaudited condensed 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 September 30,
2022 include Successor and Predecessor periods. The
Successor period runs from June 17,
2022 through September 30,
2022, while the Predecessor period includes January 1, 2022 through, and including,
June 16, 2022. As a result of the
application of fresh-start accounting, the Company's financial
statements for periods prior to June 16,
2022 are not comparable to those for periods subsequent to
June 16, 2022. Operating results for
the Successor and Predecessor periods are not necessarily
indicative of the results to be expected for a full fiscal
year.
Mallinckrodt's results of operations
as reported in its unaudited condensed 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 nine
months ended September 30, 2022 is
not in accordance with GAAP. However, the Company believes that for
purposes of discussion and analysis, the combined financial
information is useful for management and investors to assess
Mallinckrodt's ongoing financial and
operational performance and trends. Accordingly, in addition to
presenting results of operations as reported in unaudited condensed
consolidated financial statements in accordance with GAAP, certain
tables and discussion included within this release also present the
combined results for nine months ended September 30, 2022.
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 NYSE
American LLC, the emergence of an active trading market for
Mallinckrodt's ordinary shares and
fluctuations in market price and trading volume, Mallinckrodt's tax treatment by the Internal
Revenue Service under Section 7874 and Section 382 of the Internal
Revenue Code of 1986, as amended, Mallinckrodt repurchases of debt securities, the
effects of the Chapter 11 cases on the liquidity, results of
operations and businesses of Mallinckrodt and its subsidiaries; governmental
investigations and inquiries, regulatory actions and lawsuits
brought against Mallinckrodt by
government agencies and private parties with respect to its
historical commercialization of opioids, including the agreement
set forth in the Chapter 11 plan regarding a global settlement to
resolve all opioid-related claims; the settlement set forth in the
Chapter 11 plan with governmental parties to resolve certain
disputes relating to Acthar Gel; the ability to maintain
relationships with Mallinckrodt's
suppliers, customers, employees and other third parties as a result
of, and following, the Chapter 11 cases; the possibility that
Mallinckrodt may be unable to achieve
its business and strategic goals even now that the Chapter 11 plan
is successfully consummated; the non-dischargeability of certain
claims against Mallinckrodt as part of
the bankruptcy process; developing, funding and executing
Mallinckrodt's business plan and
continuing as a going concern; Mallinckrodt's post-bankruptcy capital structure;
scrutiny from governments, legislative bodies and enforcement
agencies related to sales, marketing and pricing practices; pricing
pressure on certain of Mallinckrodt's
products due to legal changes or changes in insurers' reimbursement
practices resulting from recent increased public scrutiny of
healthcare and pharmaceutical costs; the impact of the outbreak of
the COVID-19 coronavirus; the reimbursement practices of
governmental health administration authorities, private health
coverage insurers and other third-party payers; complex reporting
and payment obligations under the Medicare and Medicaid rebate
programs and other governmental purchasing and rebate programs;
cost containment efforts of customers, purchasing groups,
third-party payers and governmental organizations; changes in or
failure to comply with relevant laws and regulations; Mallinckrodt's and its partners' ability to
successfully develop or commercialize new products or expand
commercial opportunities; Mallinckrodt's ability to navigate price
fluctuations; competition; Mallinckrodt's and its partners' ability to protect
intellectual property rights; limited clinical trial data for
Acthar Gel; clinical studies and related regulatory processes;
product liability losses and other litigation liability; material
health, safety and environmental liabilities; potential
indemnification liabilities to Covidien pursuant to the separation
and distribution agreement; business development activities;
retention of key personnel; the effectiveness of information
technology infrastructure including cybersecurity and data leakage
risks; customer concentration; Mallinckrodt's reliance on certain individual
products that are material to its financial performance;
Mallinckrodt's ability to receive
procurement and production quotas granted by the U.S. Drug
Enforcement Administration; complex manufacturing processes;
conducting business internationally; Mallinckrodt's ability to achieve expected benefits
from restructuring activities; Mallinckrodt's significant levels of intangible
assets and related impairment testing; labor and employment laws
and regulations; natural disasters or other catastrophic events;
Mallinckrodt's substantial
indebtedness, its ability to generate sufficient cash to reduce its
indebtedness and its potential need and ability to incur further
indebtedness; Mallinckrodt's ability to
generate sufficient cash to service indebtedness even now that the
prepetition indebtedness has been restructured; restrictions on
Mallinckrodt's operations contained in
the agreements governing Mallinckrodt's
indebtedness; Mallinckrodt's variable
rate indebtedness; future changes to U.S. and foreign tax laws or
the impact of disputes with governmental tax authorities; and the
impact of Irish laws.
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 December 31,
2021 and Quarterly Reports on Form 10-Q for the quarterly
periods ended September 30, 2022,
July 1, 2022 and April 1, 2022, and other filings with the SEC,
all of which are on file with the SEC and available on Mallinckrodt's website at http://www.sec.gov and
http://www.mallinckrodt.com respectively, identify and describe in
more detail the risks and uncertainties to which Mallinckrodt's businesses are subject. The
forward-looking statements made herein speak only as of the date
hereof and Mallinckrodt does not assume
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events and
developments or otherwise, except as required by law.
CONTACTS
Investor
Relations
Daniel Speciale
Global Corporate Controller and Chief Investor Relations
Officer
314-654-3638
daniel.speciale@mnk.com
Derek Belz
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. © 2022
11/22.
|
Exhibit 99.1
|
MALLINCKRODT
PLC
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
September 30, 2022
|
|
|
Three Months
Ended
September 24, 2021
|
|
|
Percent
of
Net
sales
|
|
|
|
Percent
of
Net
sales
|
|
Net sales
|
$
465.4
|
100.0 %
|
|
|
$
507.2
|
100.0 %
|
|
Cost of
sales
|
449.9
|
96.7
|
|
|
319.2
|
62.9
|
|
Gross
profit
|
15.5
|
3.3
|
|
|
188.0
|
37.1
|
|
Selling, general and
administrative expenses
|
129.2
|
27.8
|
|
|
127.3
|
25.1
|
|
Research and
development expenses
|
28.3
|
6.1
|
|
|
47.3
|
9.3
|
|
Restructuring charges,
net
|
2.2
|
0.5
|
|
|
11.0
|
2.2
|
|
Opioid-related
litigation settlement loss
|
—
|
—
|
|
|
125.0
|
24.6
|
|
Operating
loss
|
(144.2)
|
(31.0)
|
|
|
(122.6)
|
(24.2)
|
|
Interest
expense
|
(148.0)
|
(31.8)
|
|
|
(48.7)
|
(9.6)
|
|
Interest
income
|
1.3
|
0.3
|
|
|
—
|
—
|
|
Other expense,
net
|
(5.1)
|
(1.1)
|
|
|
(3.5)
|
(0.7)
|
|
Reorganization items,
net
|
(14.2)
|
(3.1)
|
|
|
(126.2)
|
(24.9)
|
|
Loss from continuing
operations before income taxes
|
(310.2)
|
(66.7)
|
|
|
(301.0)
|
(59.3)
|
|
Income tax
benefit
|
(24.9)
|
(5.4)
|
|
|
(32.0)
|
(6.3)
|
|
Loss from continuing
operations
|
(285.3)
|
(61.3)
|
|
|
(269.0)
|
(53.0)
|
|
Income from
discontinued operations, net of income taxes
|
0.4
|
0.1
|
|
|
5.3
|
1.0
|
|
Net loss
|
$
(284.9)
|
(61.2) %
|
|
|
$
(263.7)
|
(52.0) %
|
|
|
|
|
|
|
|
|
Basic and diluted
(loss) income per share:
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$
(21.61)
|
|
|
|
$
(3.18)
|
|
|
Income from
discontinued operations
|
0.03
|
|
|
|
0.06
|
|
|
Net loss
|
$
(21.58)
|
|
|
|
$
(3.11)
|
|
|
Weighted-average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic and
diluted
|
13.2
|
|
|
|
84.7
|
|
|
MALLINCKRODT
PLC
|
|
CONSOLIDATED
ADJUSTED EBITDA
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
September 30, 2022
|
|
|
Three Months
Ended
September 24, 2021
|
|
Net loss
|
$
(284.9)
|
|
|
$
(263.7)
|
|
Adjustments:
|
|
|
|
|
|
Interest expense,
net
|
146.7
|
|
|
48.7
|
|
Income tax
benefit
|
(24.9)
|
|
|
(32.0)
|
|
Depreciation
(1)
|
11.9
|
|
|
23.2
|
|
Amortization
|
136.6
|
|
|
145.3
|
|
Restructuring charges,
net
|
2.2
|
|
|
11.0
|
|
Income from
discontinued operations
|
(0.4)
|
|
|
(5.3)
|
|
Change in contingent
consideration fair value
|
(0.8)
|
|
|
(2.1)
|
|
Significant legal and
environmental charges
|
—
|
|
|
125.0
|
|
Separation costs
(2)
|
6.9
|
|
|
0.1
|
|
Unrealized loss on
equity investment
|
5.1
|
|
|
6.9
|
|
Reorganization items,
net
|
14.2
|
|
|
126.2
|
|
Share-based
compensation
|
0.5
|
|
|
2.4
|
|
Gain on debt
extinguishment at par
|
(3.9)
|
|
|
—
|
|
Fresh-start impact on
debt extinguishment
|
4.1
|
|
|
|
|
Bad debt expense -
customer bankruptcy
|
5.8
|
|
|
—
|
|
Fresh-start
inventory-related expense (3)
|
147.0
|
|
|
—
|
|
As adjusted:
|
$
166.1
|
|
|
$
185.7
|
|
|
|
|
|
|
(1)
|
Includes $0.7 million
of accelerated depreciation in selling general and administrative
("SG&A") related to restructuring charges incurred during the
three months ended September 24, 2021.
|
|
|
|
(2)
|
Represents costs
included in SG&A expenses, primarily related to expenses
incurred related to the severance of certain former executives of
the Predecessor, in addition to professional fees and costs
incurred as the Company explores potential sales of non-core assets
to enable further deleveraging post-emergence.
|
|
|
|
(3)
|
Includes $129.1 million
and $17.9 million of inventory fair-value step up expense and
fresh-start inventory-related expense primarily related to a change
in accounting estimate, respectively, during the three months ended
September 30, 2022.
|
|
MALLINCKRODT
PLC
|
|
NON-GAAP
MEASURES
|
|
(unaudited, in
millions except per share data)
|
|
|
|
|
|
|
|
Successor
|
|
Three Months
Ended
September 30, 2022
|
|
Gross
profit
|
SG&A
|
Net (loss)
income
|
|
Diluted net
(loss) income
per share
|
|
Net loss
|
$
15.5
|
$
129.2
|
$
(284.9)
|
|
$
(21.58)
|
|
Adjustments:
|
|
|
|
|
|
|
Intangible asset
amortization
|
136.6
|
—
|
136.6
|
|
10.35
|
|
Restructuring charges,
net
|
—
|
—
|
2.2
|
|
0.17
|
|
Income from
discontinued operations
|
—
|
—
|
(0.4)
|
|
(0.03)
|
|
Change in contingent
consideration fair value
|
—
|
0.8
|
(0.8)
|
|
(0.06)
|
|
Separation costs
(1)
|
—
|
(6.9)
|
6.9
|
|
0.52
|
|
Unrealized loss on
equity investment
|
—
|
—
|
5.1
|
|
0.39
|
|
Reorganization items,
net
|
—
|
—
|
14.2
|
|
1.07
|
|
Gain on debt
extinguishment at par
|
—
|
—
|
(3.9)
|
|
(0.30)
|
|
Fresh-start impact on
debt extinguishment
|
—
|
—
|
4.1
|
|
0.31
|
|
Bad debt expense -
customer bankruptcy
|
—
|
(5.8)
|
5.8
|
|
0.44
|
|
Fresh-start
inventory-related expense (2)
|
147.0
|
—
|
147.0
|
|
11.14
|
|
Non-cash interest
expense - accretion
|
—
|
—
|
64.6
|
|
4.89
|
|
Income taxes
(3)
|
—
|
—
|
(27.2)
|
|
(2.06)
|
|
As adjusted:
|
$
299.1
|
$
117.3
|
$
69.3
|
|
$
5.25
|
|
|
|
|
|
|
|
Percent of net
sales
|
64.3 %
|
25.2 %
|
14.9 %
|
|
|
|
(1)
|
Represents costs
included in SG&A expenses, primarily related to expenses
incurred related to the severance of certain former executives of
the Predecessor, in addition to professional fees and costs
incurred as the Company explores potential sales of non-core assets
to enable further deleveraging post-emergence.
|
|
|
|
(2)
|
Includes $129.1 million
and $17.9 million of inventory fair-value step up expense and
fresh-start inventory-related expense primarily related to a change
in accounting estimate, respectively, during the three months ended
September 30, 2022.
|
|
|
|
(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.
|
|
MALLINCKRODT
PLC
|
|
SEGMENT OPERATING
INCOME
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
September 30,
2022
|
|
|
Three Months
Ended
September 24,
2021
|
|
Specialty Brands
(1)
|
$
43.7
|
|
|
$
189.9
|
|
Specialty Generics
(2)
|
(9.0)
|
|
|
15.2
|
|
Segment operating
income
|
34.7
|
|
|
205.1
|
|
Unallocated
amounts:
|
|
|
|
|
|
Corporate and
unallocated expenses
(3)
|
(15.0)
|
|
|
(20.8)
|
|
Depreciation and
amortization
|
(148.5)
|
|
|
(168.4)
|
|
Share-based
compensation
|
(0.5)
|
|
|
(2.4)
|
|
Restructuring charges,
net
|
(2.2)
|
|
|
(11.0)
|
|
Non-restructuring
impairment charge
|
—
|
|
|
—
|
|
Separation costs
(4)
|
(6.9)
|
|
|
(0.1)
|
|
Opioid-related
litigation settlement loss
|
—
|
|
|
(125.0)
|
|
Bad debt expense -
customer bankruptcy
|
(5.8)
|
|
|
—
|
|
Operating
loss
|
$
(144.2)
|
|
|
$
(122.6)
|
|
(1)
|
Includes $115.3 million
of inventory fair-value step-up expense during the three months
ended September 30, 2022.
|
|
|
|
(2)
|
Includes $17.9 million
of fresh-start inventory-related expense primarily driven by the
Company's change in accounting estimate and $13.8 million of
inventory fair-value step-up expense during the three months ended
September 30, 2022, respectively.
|
|
|
|
(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 the severance of certain former executives of
the Predecessor, in addition to professional fees and costs
incurred as the Company explores potential sales of non-core assets
to enable further deleveraging post-emergence.
|
|
MALLINCKRODT
PLC
|
|
SEGMENT NET
SALES
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
September 30,
2022
|
|
|
Three Months
Ended
September 24,
2021
|
|
Specialty
Brands
|
$
303.5
|
|
|
$
359.7
|
|
Specialty
Generics
|
161.9
|
|
|
147.5
|
|
Net sales
|
$
465.4
|
|
|
$
507.2
|
|
MALLINCKRODT
PLC
|
|
SEGMENT NET SALES
AND CONSTANT-CURRENCY GROWTH
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Three Months
Ended
September 30, 2022
|
|
|
Three Months
Ended
September 24, 2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
|
Specialty
Brands
|
$
303.5
|
|
|
$
359.7
|
|
(15.6) %
|
|
(0.9) %
|
|
(14.7) %
|
|
Specialty
Generics
|
161.9
|
|
|
147.5
|
|
9.8
|
|
(0.1)
|
|
9.9
|
|
Net sales
|
$
465.4
|
|
|
$
507.2
|
|
(8.2) %
|
|
(0.7) %
|
|
(7.5) %
|
|
MALLINCKRODT
PLC
|
|
SELECT PRODUCT LINE
NET SALES AND CONSTANT-CURRENCY GROWTH
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Three Months
Ended
September 30, 2022
|
|
|
Three Months
Ended
September 24, 2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
|
Specialty
Brands
|
|
|
|
|
|
|
|
|
|
|
|
Acthar Gel
|
$
125.7
|
|
|
$
143.4
|
|
(12.3) %
|
|
— %
|
|
(12.3) %
|
|
INOmax
|
80.7
|
|
|
98.4
|
|
(18.0)
|
|
(0.1)
|
|
(17.9)
|
|
Ofirmev
|
—
|
|
|
4.7
|
|
(100.0)
|
|
—
|
|
(100.0)
|
|
Therakos
|
58.0
|
|
|
62.5
|
|
(7.2)
|
|
(4.5)
|
|
(2.7)
|
|
Amitiza
|
37.1
|
|
|
49.6
|
|
(25.2)
|
|
(0.2)
|
|
(25.0)
|
|
Other
|
2.0
|
|
|
1.1
|
|
81.8
|
|
(15.7)
|
|
97.5
|
|
Specialty Brands
Total
|
303.5
|
|
|
359.7
|
|
(15.6)
|
|
(0.9)
|
|
(14.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Generics
|
|
|
|
|
|
|
|
|
|
|
|
Opioids
|
46.5
|
|
|
46.5
|
|
—
|
|
—
|
|
—
|
|
ADHD
|
11.6
|
|
|
8.7
|
|
33.3
|
|
—
|
|
33.3
|
|
Addiction
treatment
|
16.6
|
|
|
15.3
|
|
8.5
|
|
(0.6)
|
|
9.1
|
|
Other
|
2.9
|
|
|
2.9
|
|
—
|
|
—
|
|
—
|
|
Generics
|
77.6
|
|
|
73.4
|
|
5.7
|
|
(0.1)
|
|
5.8
|
|
Controlled
substances
|
19.7
|
|
|
19.4
|
|
1.5
|
|
—
|
|
1.5
|
|
APAP
|
57.9
|
|
|
49.6
|
|
16.7
|
|
—
|
|
16.7
|
|
Other
|
6.7
|
|
|
5.1
|
|
31.4
|
|
—
|
|
31.4
|
|
API
|
84.3
|
|
|
74.1
|
|
13.8
|
|
—
|
|
13.8
|
|
Specialty
Generics
|
161.9
|
|
|
147.5
|
|
9.8
|
|
(0.1)
|
|
9.9
|
|
Net sales
|
$
465.4
|
|
|
$
507.2
|
|
(8.2)
|
|
(0.7)
|
|
(7.5)
|
|
MALLINCKRODT
PLC
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
September 30, 2022
|
|
|
Period
from
January 1,
2022
through
June 16,
2022
|
|
Nine
Months
Ended
September 24,
2021
|
|
|
Percent
of
Net
sales
|
|
|
|
Percent
of
Net
sales
|
|
|
Percent
of
Net
sales
|
|
Net sales
|
$
550.4
|
100.0 %
|
|
|
$
874.6
|
100.0 %
|
|
$ 1,611.6
|
100.0 %
|
|
Cost of
sales
|
552.1
|
100.3
|
|
|
582.0
|
66.5
|
|
958.4
|
59.5
|
|
Gross (loss)
profit
|
(1.7)
|
(0.3)
|
|
|
292.6
|
33.5
|
|
653.2
|
40.5
|
|
Selling, general and
administrative expenses
|
159.5
|
29.0
|
|
|
275.3
|
31.5
|
|
408.3
|
25.3
|
|
Research and
development expenses
|
34.5
|
6.3
|
|
|
65.5
|
7.5
|
|
166.3
|
10.3
|
|
Restructuring charges,
net
|
3.3
|
0.6
|
|
|
9.6
|
1.1
|
|
17.5
|
1.1
|
|
Non-restructuring
impairment charges
|
—
|
—
|
|
|
—
|
—
|
|
64.5
|
4.0
|
|
Losses on
divestiture
|
—
|
—
|
|
|
—
|
—
|
|
0.8
|
—
|
|
Opioid-related
litigation settlement loss
|
—
|
—
|
|
|
—
|
—
|
|
125.0
|
7.8
|
|
Operating
loss
|
(199.0)
|
(36.2)
|
|
|
(57.8)
|
(6.6)
|
|
(129.2)
|
(8.0)
|
|
Interest
expense
|
(169.1)
|
(30.7)
|
|
|
(108.6)
|
(12.4)
|
|
(160.7)
|
(10.0)
|
|
Interest
income
|
1.4
|
0.3
|
|
|
0.6
|
0.1
|
|
1.9
|
0.1
|
|
Other income (expense),
net
|
0.8
|
0.1
|
|
|
(14.6)
|
(1.7)
|
|
15.9
|
1.0
|
|
Reorganization items,
net
|
(17.7)
|
(3.2)
|
|
|
(630.9)
|
(72.1)
|
|
(329.2)
|
(20.4)
|
|
Loss from continuing
operations before income taxes
|
(383.6)
|
(69.7)
|
|
|
(811.3)
|
(92.8)
|
|
(601.3)
|
(37.3)
|
|
Income tax
benefit
|
(34.6)
|
(6.3)
|
|
|
(497.3)
|
(56.9)
|
|
(81.9)
|
(5.1)
|
|
Loss from continuing
operations
|
(349.0)
|
(63.4)
|
|
|
(314.0)
|
(35.9)
|
|
(519.4)
|
(32.2)
|
|
Income from
discontinued operations, net of income taxes
|
0.4
|
0.1
|
|
|
0.9
|
0.1
|
|
6.0
|
0.4
|
|
Net loss
|
$
(348.6)
|
(63.3) %
|
|
|
$
(313.1)
|
(35.8) %
|
|
$
(513.4)
|
(31.9) %
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
(loss) income per share:
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$
(26.44)
|
|
|
|
$
(3.70)
|
|
|
$
(6.13)
|
|
|
Income from
discontinued operations
|
0.03
|
|
|
|
0.01
|
|
|
0.07
|
|
|
Net loss
|
$
(26.41)
|
|
|
|
$
(3.69)
|
|
|
$
(6.06)
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
13.2
|
|
|
|
84.8
|
|
|
84.7
|
|
|
MALLINCKRODT
PLC
|
|
CONSOLIDATED
ADJUSTED EBITDA
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
September 30, 2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Nine Months
Ended
September 24, 2021
|
|
Net loss
|
$
(348.6)
|
|
|
$
(313.1)
|
|
$
(513.4)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Interest expense,
net
|
167.7
|
|
|
108.0
|
|
158.8
|
|
Income tax
benefit
|
(34.6)
|
|
|
(497.3)
|
|
(81.9)
|
|
Depreciation
|
14.8
|
|
|
40.0
|
|
70.3
|
|
Amortization
|
182.1
|
|
|
281.8
|
|
435.8
|
|
Restructuring charges,
net
|
3.3
|
|
|
9.6
|
|
17.5
|
|
Non-restructuring
impairment charges
|
—
|
|
|
—
|
|
64.5
|
|
Income from
discontinued operations
|
(0.4)
|
|
|
(0.9)
|
|
(6.0)
|
|
Change in contingent
consideration fair value
|
(0.8)
|
|
|
—
|
|
(7.6)
|
|
Significant legal and
environmental charges
|
—
|
|
|
11.1
|
|
125.0
|
|
Losses on
divestiture
|
—
|
|
|
—
|
|
0.8
|
|
Separation costs
(1)
|
16.1
|
|
|
9.0
|
|
1.0
|
|
Unrealized (gain) loss
on equity investment
|
(0.9)
|
|
|
22.2
|
|
(4.8)
|
|
Reorganization items,
net
|
17.7
|
|
|
630.9
|
|
329.2
|
|
Share-based
compensation
|
0.5
|
|
|
1.7
|
|
8.4
|
|
Gain on debt
extinguishment at par
|
(3.9)
|
|
|
—
|
|
—
|
|
Fresh-start impact on
debt extinguishment
|
4.1
|
|
|
—
|
|
—
|
|
Bad debt expense -
customer bankruptcy
|
5.8
|
|
|
—
|
|
—
|
|
Fresh-start
inventory-related expense (2)
|
173.5
|
|
|
—
|
|
—
|
|
As adjusted:
|
$
196.4
|
|
|
$
303.0
|
|
$
597.6
|
|
|
|
|
|
|
|
|
(1)
|
Includes $2.0 million
of accelerated depreciation in selling general and administrative
("SG&A") related to restructuring charges incurred during the
nine months ended September 24, 2021.
|
|
|
|
(2)
|
Represents costs
included in SG&A expenses, primarily related to expenses
incurred related to severance for the former Chief Executive
Officer ("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.
|
|
|
|
(3)
|
Includes $153.2 million
and $20.3 million of inventory fair-value step up expense and
fresh-start inventory-related expense primarily related to a change
in accounting estimate, respectively, during the period from June
17, 2022 through September 30, 2022.
|
|
MALLINCKRODT
PLC
|
|
SEGMENT OPERATING
INCOME
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
September 30, 2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Nine Months
Ended
September 24, 2021
|
|
Specialty Brands
(1)
|
$
48.2
|
|
|
$
267.2
|
|
$
588.6
|
|
Specialty Generics
(2)
|
(8.7)
|
|
|
65.3
|
|
73.8
|
|
Segment operating
income
|
39.5
|
|
|
332.5
|
|
662.4
|
|
Unallocated
amounts:
|
|
|
|
|
|
|
|
Corporate and
unallocated expenses
(3)
|
(15.9)
|
|
|
(48.2)
|
|
(69.1)
|
|
Depreciation and
amortization
|
(196.9)
|
|
|
(321.8)
|
|
(506.1)
|
|
Share-based
compensation
|
(0.5)
|
|
|
(1.7)
|
|
(8.4)
|
|
Restructuring charges,
net
|
(3.3)
|
|
|
(9.6)
|
|
(17.5)
|
|
Non-restructuring
impairment charges
|
—
|
|
|
—
|
|
(64.5)
|
|
Separation costs
(4)
|
(16.1)
|
|
|
(9.0)
|
|
(1.0)
|
|
Opioid-related
litigation settlement (loss) gain
|
—
|
|
|
—
|
|
(125.0)
|
|
Bad debt expense -
customer bankruptcy
|
(5.8)
|
|
|
—
|
|
—
|
|
Operating
loss
|
$
(199.0)
|
|
|
$
(57.8)
|
|
$
(129.2)
|
|
(1)
|
Includes $136.6 million
of inventory fair-value step-up expense during the period from June
17, 2022 through September 30, 2022.
|
|
|
|
(2)
|
Includes $20.3 million
of fresh-start inventory-related expense primarily driven by the
Company's change in accounting estimate as disclosed in Note 1 of
the notes to the unaudited condensed consolidated financial
statements and $16.6 million of inventory fair-value step-up
expense during the period from June 17, 2022 through September 30,
2022.
|
|
|
|
(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.
|
|
MALLINCKRODT
PLC
|
|
SEGMENT NET
SALES
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
September 30, 2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Nine
Months
Ended
September 24,
2021
|
|
Specialty
Brands
|
$
361.7
|
|
|
$
587.1
|
|
$
1,149.6
|
|
Specialty
Generics
|
188.7
|
|
|
287.5
|
|
462.0
|
|
Net sales
|
$
550.4
|
|
|
$
874.6
|
|
$
1,611.6
|
|
MALLINCKRODT
PLC
|
|
SEGMENT NET SALES
AND CONSTANT-CURRENCY GROWTH
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Combined
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Nine Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 24, 2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
|
Specialty
Brands
|
$
948.8
|
|
$
1,149.6
|
|
(17.5) %
|
|
(0.6) %
|
|
(16.9) %
|
|
Specialty
Generics
|
476.2
|
|
462.0
|
|
3.1
|
|
—
|
|
3.1
|
|
Net sales
|
$
1,425.0
|
|
$
1,611.6
|
|
(11.6) %
|
|
(0.4) %
|
|
(11.2) %
|
|
MALLINCKRODT
PLC
|
|
SELECT PRODUCT LINE
NET SALES
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
September 30, 2022
|
|
|
Period
from
January 1,
2022
through
June 16,
2022
|
|
Nine Months
Ended
September 24, 2021
|
|
Specialty
Brands
|
|
|
|
|
|
|
|
Acthar Gel
|
$
153.2
|
|
|
$
221.9
|
|
$
423.9
|
|
INOmax
|
94.2
|
|
|
165.8
|
|
338.3
|
|
Ofirmev
|
(0.2)
|
|
|
2.5
|
|
24.0
|
|
Therakos
|
68.2
|
|
|
109.6
|
|
197.8
|
|
Amitiza
|
42.9
|
|
|
81.5
|
|
155.8
|
|
Other
|
3.4
|
|
|
5.8
|
|
9.8
|
|
Specialty Brands
Total
|
361.7
|
|
|
587.1
|
|
1,149.6
|
|
|
|
|
|
|
|
|
Specialty
Generics
|
|
|
|
|
|
|
|
Opioids
|
55.2
|
|
|
88.8
|
|
155.0
|
|
ADHD
|
13.4
|
|
|
17.5
|
|
24.8
|
|
Addiction
treatment
|
19.1
|
|
|
30.0
|
|
47.7
|
|
Other
|
3.0
|
|
|
4.9
|
|
8.4
|
|
Generics
|
90.7
|
|
|
141.2
|
|
235.9
|
|
Controlled
substances
|
21.4
|
|
|
37.6
|
|
62.4
|
|
APAP
|
69.2
|
|
|
96.5
|
|
146.8
|
|
Other
|
7.4
|
|
|
12.2
|
|
16.9
|
|
API
|
98.0
|
|
|
146.3
|
|
226.1
|
|
Specialty
Generics
|
188.7
|
|
|
287.5
|
|
462.0
|
|
Net sales
|
$
550.4
|
|
|
$
874.6
|
|
$
1,611.6
|
|
MALLINCKRODT
PLC
|
|
SELECT PRODUCT LINE
NET SALES AND CONSTANT-CURRENCY GROWTH
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Combined
|
|
Predecessor
|
|
Non-GAAP
Measures
|
|
Nine Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 24, 2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
|
Specialty
Brands
|
|
|
|
|
|
|
|
|
|
|
Acthar Gel
|
$
375.1
|
|
$
423.9
|
|
(11.5) %
|
|
— %
|
|
(11.5) %
|
|
INOmax
|
260.0
|
|
338.3
|
|
(23.1)
|
|
(0.1)
|
|
(23.0)
|
|
Ofirmev
|
2.3
|
|
24.0
|
|
(90.4)
|
|
—
|
|
(90.4)
|
|
Therakos
|
177.8
|
|
197.8
|
|
(10.1)
|
|
(3.0)
|
|
(7.1)
|
|
Amitiza
|
124.4
|
|
155.8
|
|
(20.2)
|
|
(0.1)
|
|
(20.1)
|
|
Other
|
9.2
|
|
9.8
|
|
(6.1)
|
|
(3.6)
|
|
(2.5)
|
|
Specialty Brands
Total
|
948.8
|
|
1,149.6
|
|
(17.5)
|
|
(0.6)
|
|
(16.9)
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Generics
|
|
|
|
|
|
|
|
|
|
|
Opioids
|
144.0
|
|
155.0
|
|
(7.1)
|
|
—
|
|
(7.1)
|
|
ADHD
|
30.9
|
|
24.8
|
|
24.6
|
|
—
|
|
24.6
|
|
Addiction
treatment
|
49.1
|
|
47.7
|
|
2.9
|
|
(0.5)
|
|
3.4
|
|
Other
|
7.9
|
|
8.4
|
|
(6.0)
|
|
—
|
|
(6.0)
|
|
Generics
|
231.9
|
|
235.9
|
|
(1.7)
|
|
(0.1)
|
|
(1.6)
|
|
Controlled
substances
|
59.0
|
|
62.4
|
|
(5.4)
|
|
—
|
|
(5.4)
|
|
APAP
|
165.7
|
|
146.8
|
|
12.9
|
|
—
|
|
12.9
|
|
Other
|
19.6
|
|
16.9
|
|
16.0
|
|
—
|
|
16.0
|
|
API
|
244.3
|
|
226.1
|
|
8.0
|
|
—
|
|
8.0
|
|
Specialty
Generics
|
476.2
|
|
462.0
|
|
3.1
|
|
—
|
|
3.1
|
|
Net sales
|
$
1,425.0
|
|
$
1,611.6
|
|
(11.6) %
|
|
(0.4) %
|
|
(11.2) %
|
|
MALLINCKRODT
PLC
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
September
30,
2022
|
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
391.2
|
|
|
$
1,345.0
|
|
Accounts receivable,
net
|
377.0
|
|
|
439.1
|
|
Inventories
|
1,071.6
|
|
|
347.2
|
|
Prepaid expenses and
other current assets
|
321.4
|
|
|
178.3
|
|
Assets held for
sale
|
7.2
|
|
|
—
|
|
Total current
assets
|
2,168.4
|
|
|
2,309.6
|
|
Property, plant and
equipment, net
|
448.3
|
|
|
776.0
|
|
Intangible assets,
net
|
2,980.4
|
|
|
5,448.4
|
|
Deferred income
taxes
|
464.2
|
|
|
—
|
|
Other assets
|
196.1
|
|
|
382.3
|
|
Total
Assets
|
$
6,257.4
|
|
|
$
8,916.3
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Current maturities of
long-term debt
|
$
44.1
|
|
|
$
1,388.9
|
|
Accounts
payable
|
89.1
|
|
|
123.0
|
|
Accrued payroll and
payroll-related costs
|
40.7
|
|
|
84.6
|
|
Accrued
interest
|
71.1
|
|
|
17.0
|
|
Acthar Gel-Related
Settlement
|
16.5
|
|
|
—
|
|
Opioid-Related
Litigation Settlement liability
|
200.0
|
|
|
—
|
|
Accrued and other
current liabilities
|
317.6
|
|
|
328.7
|
|
Total current
liabilities
|
779.1
|
|
|
1,942.2
|
|
Long-term
debt
|
3,034.3
|
|
|
—
|
|
Acthar Gel-Related
Settlement
|
69.2
|
|
|
—
|
|
Opioid-Related
Litigation Settlement liability
|
342.8
|
|
|
—
|
|
Pension and
postretirement benefits
|
53.6
|
|
|
30.1
|
|
Environmental
liabilities
|
36.4
|
|
|
43.0
|
|
Deferred income
taxes
|
1.5
|
|
|
20.9
|
|
Other income tax
liabilities
|
14.4
|
|
|
83.2
|
|
Other
liabilities
|
77.0
|
|
|
85.8
|
|
Liabilities subject to
compromise
|
—
|
|
|
6,397.7
|
|
Total
Liabilities
|
4,408.3
|
|
|
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
|
2,204.0
|
|
|
5,597.8
|
|
Accumulated other
comprehensive loss
|
(6.4)
|
|
|
(8.3)
|
|
Retained
deficit
|
(348.6)
|
|
|
(3,678.9)
|
|
Total Shareholders'
Equity
|
1,849.1
|
|
|
313.4
|
|
Total Liabilities
and Shareholders' Equity
|
$
6,257.4
|
|
|
$
8,916.3
|
|
MALLINCKRODT
PLC
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
September 30,
2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Nine Months
Ended
September 24,
2021
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
(348.6)
|
|
|
$
(313.1)
|
|
$
(513.4)
|
|
Adjustments to
reconcile net cash from operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
196.9
|
|
|
321.8
|
|
506.1
|
|
Share-based
compensation
|
0.5
|
|
|
1.7
|
|
8.4
|
|
Deferred income
taxes
|
(10.8)
|
|
|
(473.0)
|
|
(19.1)
|
|
Non-cash impairment
charges
|
—
|
|
|
—
|
|
64.5
|
|
Losses on
divestiture
|
—
|
|
|
—
|
|
0.8
|
|
Reorganization items,
net
|
—
|
|
|
425.4
|
|
22.5
|
|
Non-cash accretion
expense
|
72.3
|
|
|
—
|
|
—
|
|
Other non-cash
items
|
5.7
|
|
|
35.3
|
|
(6.0)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
9.2
|
|
|
49.8
|
|
105.7
|
|
Inventories
|
150.9
|
|
|
(33.2)
|
|
(30.9)
|
|
Accounts
payable
|
(11.6)
|
|
|
(3.6)
|
|
14.7
|
|
Income
taxes
|
(27.8)
|
|
|
(26.9)
|
|
92.5
|
|
Acthar-Gel-Related
Settlement
|
—
|
|
|
—
|
|
(4.8)
|
|
Opioid-Related
Litigation Settlement liability
|
—
|
|
|
—
|
|
125.0
|
|
Payments of
claims
|
—
|
|
|
(629.0)
|
|
—
|
|
Other
|
(17.4)
|
|
|
2.5
|
|
40.4
|
|
Net cash from
operating activities
|
19.3
|
|
|
(642.3)
|
|
406.4
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capital
expenditures
|
(15.6)
|
|
|
(33.4)
|
|
(39.2)
|
|
Proceeds from
divestitures, net of cash
|
65.0
|
|
|
—
|
|
15.7
|
|
Other
|
0.2
|
|
|
0.4
|
|
1.4
|
|
Net cash from
investing activities
|
49.6
|
|
|
(33.0)
|
|
(22.1)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Issuance of external
debt
|
—
|
|
|
650.0
|
|
—
|
|
Repayment of external
debt
|
(17.3)
|
|
|
(904.6)
|
|
(128.2)
|
|
Debt financing
costs
|
—
|
|
|
(24.1)
|
|
—
|
|
Net cash from
financing activities
|
(17.3)
|
|
|
(278.7)
|
|
(128.2)
|
|
Effect of currency rate
changes on cash
|
(3.7)
|
|
|
(3.9)
|
|
(0.9)
|
|
Net change in cash,
cash equivalents and restricted cash
|
47.9
|
|
|
(957.9)
|
|
255.2
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
447.3
|
|
|
1,405.2
|
|
1,127.0
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
495.2
|
|
|
$
447.3
|
|
$
1,382.2
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
391.2
|
|
|
$
297.9
|
|
$
1,322.6
|
|
Restricted cash
included in prepaid expenses and other current assets at end of
period
|
67.5
|
|
|
113.0
|
|
23.3
|
|
Restricted cash
included in other long-term assets at end of period
|
36.5
|
|
|
36.4
|
|
36.3
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
495.2
|
|
|
$
447.3
|
|
$
1,382.2
|
|
|
|
|
|
|
|
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SOURCE Mallinckrodt plc
