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 $409.5 Million, Underscoring Commitment to
Strengthening Balance Sheet and Disciplined Approach to Cost
Management
Fiscal 2023 Guidance for Adjusted EBITDA is
$510 Million to $560 Million
Conference Call and Webcast Today at
8:30 a.m. ET
DUBLIN, Feb. 28,
2023 /PRNewswire/ -- Mallinckrodt plc (NYSE American: MNK)
("Mallinckrodt" or the "Company"), a
global specialty pharmaceutical company, today reported results for
the fourth quarter ended December 30,
2022.
"We are pleased with our performance this quarter as we
continued the steady execution of our strategic priorities," said
Siggi Olafsson, President and
Chief Executive Officer. "We finished 2022 by exceeding our
EBITDA guidance and achieving the high end of our net sales
guidance for the year. We also increased cash on hand, reflecting
our ongoing efforts to strengthen the balance sheet and optimize
our cost structure. Rounding out our executive team, we welcomed
Chief Scientific Officer Dr. Peter
Richardson, who will play a critical role in leading our
portfolio and pipeline expansion efforts and bringing
value-enhancing therapies to market."
Mr. Olafsson continued, "Looking ahead, 2023 is an important
year for Mallinckrodt. We have some
meaningful opportunities in the business, namely the ongoing
launches of Terlivaz (terlipressin) and StrataGraft® (allogeneic
cultured keratinocytes and dermal fibroblasts in murine collagen –
dsat) and bringing INOmax Evolve™ to the market if approved.
We are encouraged by the momentum in our launch of Terlivaz, and we
will continue to focus on returning Therakos® to growth and
building on strong performance in our Specialty Generics segment.
We are also prepared to navigate a number of challenges, including
the loss of royalty revenue from Amitiza® (lubiprostone) and
Acthar® Gel (Repository Corticotropin Injection) competition. In
all, we believe Mallinckrodt is
well-positioned to stabilize the business in the near term and
achieve sustainable growth in the long term. We have made solid
progress on our key initiatives and remain committed to advancing
our business strategy while improving outcomes for patients with
severe and critical conditions."
Fourth Quarter 2022 Financial Results1
Mallinckrodt's net sales in the
fourth quarter 2022 were $489.3
million, as compared to $597.2
million in the fourth quarter 2021. This reflects a decrease
of 18.1% on a reported basis and 17.6% on a constant currency
basis. These year-over-year comparisons were negatively impacted
from an additional selling week in the comparable period in 2021.
The Company believes this negatively affected the reported growth
rate by approximately 6 to 9 percentage points for the quarter.
The Company's Specialty Brands segment reported net sales of
$320.7 million, as compared to
$397.4 million. This reflects a
decrease of 19.3% on a reported basis and 18.6% on a constant
currency basis, primarily due to the extra selling week in the
comparable period in 2021; the impact of competition; reduced
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 $168.6
million, as compared to $199.8
million. This reflects a decrease of 15.6% on a reported
basis and 15.5% on a constant currency basis, primarily due to the
extra selling week in the comparable period in 2021 and a decline
in acetaminophen (APAP) product sales due to the planned
manufacturing shutdown, partially offset by growth in finished
dosage products.
The Company recorded a net loss for the fourth quarter of
$249.5 million, as compared to a net
loss of $204.0 million. Diluted loss
per share for the fourth quarter was $18.94 with adjusted diluted earnings per share
of $4.07.
Mallinckrodt's Adjusted EBITDA in
the fourth quarter was $175.5
million, as compared to $231.7
million. This decrease is primarily due to lower net sales
and growth in investments associated with the launches of Terlivaz
and StrataGraft, partially offset by the impact from cost structure
improvements in both 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 and favorable impact from foreign currency.
Mallinckrodt's cash balance at the
end of the fourth quarter was $409.5
million. The Company continues to maintain an undrawn
accounts receivable financing facility up to $200 million, ending the quarter with
approximately $610 million in
liquidity.
Total principal debt outstanding at the end of the fourth
quarter was $3.534 billion, with net
debt of $3.125
billion. Mallinckrodt repurchased $47.7 million amount of its second lien notes due
2025 and 2029 at a discount of $21.4
million during the year.
Fiscal Year 2022 Financial Results2
Mallinckrodt net sales for the 2022
fiscal year includes $874.6 million
in the Predecessor period and $1.040
billion in the Successor period for total net sales in the
year of $1.914 billion as compared to
$2.209 billion in fiscal 2021, with
the annual decline driven by similar activities noted in the
quarterly comparisons, including the impact of the extra selling
week in the fiscal year 2021. The total net sales for the 2022
fiscal year includes net sales from the Specialty Brands segment of
$1.270 billion and Specialty Generics
segment of $644.8 million.
The Company reported net loss in the Predecessor period of
$313.1 million and a net loss in
the Successor period of $598.1 million for an aggregate net loss of
$911.2 million for the 2022
fiscal year.
Mallinckrodt's Adjusted EBITDA for
the 2022 fiscal year was $674.9
million.
2023 Financial Guidance3
For the full-year 2023, Mallinckrodt
expects:
|
2023
Guidance
|
Total net
sales
|
$1.700 billion to
$1.820 billion
|
Adjusted
EBITDA
|
$510 million to $560
million
|
|
|
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, February 28, 2023 at
8:30 a.m. Eastern Time to discuss its
financial results and performance for the fourth quarter and fiscal
2022. The live call and subsequent replay can be accessed as
follows:
- Live Call Participant Registration (including dial-in):
https://register.vevent.com/register/BI6e1a95af3f634687b3c55b1ae6b4ffd8
- Directly via the webcast link (live and replay):
https://edge.media-server.com/mmc/p/mfaw2pmz
- 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
(loss) 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 (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 December 30, 2022
represents the total principal debt outstanding of $3.534 billion, less cash of $409.5 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 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 December 30,
2022 include Successor and Predecessor periods. The
Successor period runs from June 17,
2022 through December 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 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
December 30, 2022 is not in
accordance with GAAP. However, the Company believes that 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 consolidated financial statements in accordance with
GAAP, certain tables and discussion included within this release
also present the combined results for fiscal year ended
December 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's repurchases of debt
securities, the effects of the emergence from bankruptcy 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 global
settlement to resolve all opioid-related claims; the settlement
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 emergence
from bankruptcy; the possibility that Mallinckrodt may be unable to achieve its business
and strategic goals even now that the emergence from bankruptcy
plan was 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 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; business development
activities; attraction and 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 30,
2022, which the Company expects to file in the coming days
with the SEC and will be available on Mallinckrodt's website at
http://www.mallinckrodt.com and http://www.sec.gov. The Form
10-K will 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. © 2023.
Exhibit 99.1
MALLINCKRODT
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
December 30,
2022 (1)
|
Percent
of
Net
sales
|
|
|
Three Months
Ended
December 31,
2021 (1)
|
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 December 30, 2022 (Successor)
refers to the thirteen week period ended December 30, 2022
(Successor) and the three months ended December 31, 2021
(Predecessor) refers to the fourteen week period ended December 31,
2021 (Predecessor).
|
MALLINCKRODT
PLC
|
CONSOLIDATED
ADJUSTED EBITDA
|
(unaudited, in
millions)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
December 30, 2022
|
|
|
Three Months
Ended
December 31, 2021
|
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 $0.8 million
and $0.2 million of accelerated depreciation in cost of sales and
selling general and administrative ("SG&A"), respectively,
related to restructuring charges incurred during the three months
ended December 30, 2022 (Successor) and $0.1 million of accelerated
depreciation in SG&A related to restructuring charges incurred
during the three months ended December 31, 2021
(Predecessor).
|
|
|
(2)
|
Represents an increase
in environmental liabilities during the three months ended December
31, 2021 (Predecessor).
|
|
|
(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 December 30, 2022 (Successor).
|
|
|
(4)
|
Includes $115.5 million
and $9.7 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
December 30, 2022 (Successor).
|
MALLINCKRODT
PLC
|
NON-GAAP
MEASURES
|
(unaudited, in
millions except per share data)
|
|
|
|
|
|
|
|
Successor
|
|
Three Months
Ended
December 30, 2022
|
|
Gross
profit
|
SG&A
|
Net (loss)
income
|
|
Diluted net
(loss) income
per share
|
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 December 30, 2022 (Successor).
|
|
|
(2)
|
Includes $115.5 million
and $9.7 million of inventory fair-value step up expense and
fresh-start inventory-related expense primarily related to a change
in accounting estimate, respectively.
|
|
|
(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
December 30,
2022
|
|
|
Three Months
Ended
December 31,
2021
|
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 $105.1 million
of inventory fair-value step-up expense during the three months
ended December 30, 2022 (Successor).
|
|
|
(2)
|
Includes $10.4 million
of inventory fair-value step-up expense and $9.7 million of
fresh-start inventory-related expense primarily driven by the
Company's change in accounting estimate, respectively, during the
three months ended December 30, 2022 (Successor).
|
|
|
(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 December 30, 2022 (Successor).
|
MALLINCKRODT
PLC
|
SEGMENT NET SALES
AND CONSTANT-CURRENCY GROWTH
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Three Months
Ended
December 30,
2022
|
|
|
Three Months
Ended
December 31,
2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
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) %
|
MALLINCKRODT
PLC
|
SELECT PRODUCT LINE
NET SALES AND CONSTANT-CURRENCY GROWTH
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Three Months
Ended
December 30,
2022
|
|
|
Three Months
Ended
December 31,
2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
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)
|
Therakos
|
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) %
|
MALLINCKRODT
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
December 30, 2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Fiscal
Year
Ended
December 31, 2021
(1)
|
|
|
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 June 17, 2022 through December 30, 2022
reflects the Successor period, while the period January 1, 2022
through, and including, June 16, 2022 reflects the Predecessor
period. Fiscal year ended December 31, 2021 (Predecessor) ("fiscal
2021") consisted of 53 weeks, while the combined periods of January
1, 2022 through June 16, 2022 and June 17, 2022 through December
30, 2022 ("fiscal 2022") and fiscal year ended December 25, 2020
(Predecessor) ("fiscal 2020") consisted of 52 weeks.
|
MALLINCKRODT
PLC
|
CONSOLIDATED
ADJUSTED EBITDA
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Non-GAAP
Combined
|
|
Predecessor
|
|
Period from
June 17, 2022
through
December 30,
2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Fiscal Year
Ended
December 30,
2022
|
|
Fiscal Year
Ended
December 31,
2021
|
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 $0.8 million
and $0.2 million of accelerated depreciation in cost of sales and
SG&A, respectively, related to restructuring charges incurred
during the period from June 17, 2022 through December 30, 2022
(Successor) and $2.1 million of accelerated depreciation in
SG&A related to restructuring charges incurred during the
twelve months ended December 31, 2021 (Predecessor).
|
|
|
(2)
|
Fiscal 2021
(Predecessor) includes a $125.0 million charge related to the
opioid-related litigation settlement liability and a $34.3 million
increase in environmental liabilities.
|
|
|
(3)
|
Non-GAAP combined
fiscal year ended December 30, 2022 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.
|
|
|
(4)
|
Includes $268.7 million
and $30.0 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 December 30, 2022 (Successor).
|
MALLINCKRODT
PLC
|
SEGMENT OPERATING
INCOME
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
December 30, 2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Fiscal Year
Ended
December 31, 2021
|
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 $241.7 million
of inventory fair-value step-up expense during the period from June
17, 2022 through December 30, 2022 (Successor).
|
|
|
(2)
|
Includes $30.0 million
of fresh-start inventory-related expense primarily driven by the
Company's change in accounting estimate and $27.0 million of
inventory fair-value step-up expense during the period from June
17, 2022 through December 30, 2022 (Successor).
|
|
|
(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
December 30, 2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Fiscal Year
Ended
December 31,
2021
|
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
|
MALLINCKRODT
PLC
|
SEGMENT NET SALES
AND CONSTANT-CURRENCY GROWTH
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Combined
|
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Fiscal Year
Ended
December 30,
2022
|
|
|
Fiscal Year
Ended
December 31,
2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
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) %
|
MALLINCKRODT
PLC
|
SELECT PRODUCT LINE
NET SALES
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
December 30, 2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Fiscal
Year
Ended
December
31,
2021
|
Specialty
Brands
|
|
|
|
|
|
|
Acthar
|
$
294.1
|
|
|
$
221.9
|
|
$
593.6
|
INOmax
|
173.9
|
|
|
165.8
|
|
448.5
|
Ofirmev
|
(0.3)
|
|
|
2.5
|
|
28.9
|
Therakos
|
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
|
MALLINCKRODT
PLC
|
SELECT PRODUCT LINE
NET SALES
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Combined
|
|
|
Predecessor
|
|
Non-GAAP
Measures
|
|
Fiscal Year
Ended
December 30,
2022
|
|
|
Fiscal Year
Ended
December 31,
2021
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
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)
|
Therakos
|
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) %
|
MALLINCKRODT
PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited, in
millions)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
December 30,
2022
|
|
|
December 31,
2021
|
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
|
MALLINCKRODT
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Period from
June 17, 2022
through
December 30,
2022
|
|
|
Period from
January 1, 2022
through
June 16, 2022
|
|
Fiscal Year
Ended
December 31,
2021
|
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)
|
|
(1.9)
|
Net change in cash,
cash equivalents and restricted cash
|
19.4
|
|
|
(957.9)
|
|
278.2
|
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
|
$
466.7
|
|
|
$
447.3
|
|
$
1,405.2
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
409.5
|
|
|
$
297.9
|
|
$
1,345.0
|
Restricted cash
included in prepaid expenses and other assets at end of
period
|
20.6
|
|
|
113.0
|
|
24.0
|
Restricted cash
included in other long-term assets at end of period
|
36.6
|
|
|
36.4
|
|
36.2
|
Cash, cash
equivalents and restricted cash at end of period
|
$
466.7
|
|
|
$
447.3
|
|
$
1,405.2
|
__________________________________
|
1 The
Company's quarterly comparisons are to a Successor period (three
months ended December 30, 2022) and a Predecessor period (three
months ended December 31, 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.
2 As a result of emerging from Chapter 11, the
Company's fiscal year 2022 consists of the Successor period (June
17, 2022 through December 30, 2022) and the Predecessor period
(January 1, 2022 through, and including, June 16, 2022).
3 2023 Adjusted EBITDA guidance excludes potential
fair value adjustments related to liability-based compensation
awards, which is a long-term incentive provided to employees that
the Company will settle in cash or stock, depending on the
availability of shares at vesting.
|
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SOURCE Mallinckrodt plc