Advanced Launch of Terlivaz® with
Rapid and Successful Uptake in Hospital Formulary Access and
Continued Medical Community Interest
Reports First Quarter Net Sales of
$424.6 Million; Net Loss of
$249.3 Million; Adjusted EBITDA of
$123.5 Million; Diluted Loss Per
Share of $18.93 and Adjusted Diluted
Earnings Per Share of $1.68
Increased Cash on Hand to $480.0 Million and Reduced Exposure to Interest
Rate Volatility Through Interest Rate Cap Agreement, Demonstrating
Ongoing Focus on Disciplined Balance Sheet Management
Reaffirmed 2023 Net Sales and Adjusted EBITDA
Guidance
Conference Call and Webcast Today at
8:30 a.m. ET
DUBLIN, May 9, 2023
/PRNewswire/ -- Mallinckrodt plc
(NYSE American: MNK) ("Mallinckrodt" or
the "Company"), a global specialty pharmaceutical company, today
reported results for the first quarter ended March 31,
2023.1
"Mallinckrodt had a solid start to
the year. We made steady progress on key opportunities in our
branded portfolio and delivered sales growth in the Specialty
Generics segment, which benefits from our high-quality United States based product manufacturing,"
said Siggi Olafsson, President
and Chief Executive Officer. "Within Specialty Brands, we were
particularly pleased with the ongoing launch of Terlivaz
(terlipressin). Momentum remained strong as we gained significant
formulary inclusion in target hospitals, and we continued to see
high engagement from the medical community around Terlivaz's
clinical benefits. We also remain focused on the ongoing launch of
StrataGraft® (allogeneic cultured keratinocytes and
dermal fibroblasts in murine collagen – dsat), and, if approved,
bringing INOmax Evolve™ to the market late this year. Further, we
increased cash on hand, demonstrating our continued commitment to
disciplined capital management."
Mr. Olafsson continued, "As we have stated, 2023 is a pivotal
year for Mallinckrodt. We have a number
of opportunities ahead, as well as challenges from competitive
pressures, while we work to stabilize the business in the near term
and position Mallinckrodt for
sustainable long-term growth. Overall, we are pleased with the
performance this quarter, as evidenced by our reaffirmation of 2023
guidance, despite the Acthar® Gel top-line softness. We
will continue to be sharply focused on advancing our strategic
priorities, all while keeping our mission to improve outcomes for
patients with severe and critical conditions at the core of
everything we do."
First Quarter 2023 Financial
Results1
____________________________
|
1 The
Company's quarterly comparisons are to a Successor period (three
months ended March 31, 2023) and a Predecessor period (three months
ended April 1, 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.
|
Mallinckrodt's net sales in the
first quarter 2023 were $424.6
million, as compared to $490.9
million in the first quarter 2022. This reflects a decrease
of 13.5% on a reported basis and 13.3% on a constant currency
basis.
The Company's Specialty Brands segment reported net sales of
$252.0 million, as compared to
$339.4 million. This reflects a
decrease of 25.8% on a reported basis and 25.5% on a constant
currency basis, primarily due to the impact of competition and
continued scrutiny on overall specialty pharmaceutical
spending.
Mallinckrodt's Specialty Generics
segment reported net sales of $172.6 million, as compared to $151.5 million. This reflects an increase of
13.9% on a reported basis and 14.0% on a constant currency basis,
primarily due to growth in finished dosage products as the broader
market has experienced disruption in product quality and
supply.
The Company recorded a net loss for the first quarter of
$249.3 million, as compared to a net
loss of $119.6 million. Diluted loss
per share for the first quarter was $18.93 with adjusted diluted earnings per share
of $1.68.
Mallinckrodt's Adjusted EBITDA in
the first quarter was $123.5 million,
as compared to $177.0 million. This
is primarily due to lower net sales coupled with investments in the
launches of Terlivaz and StrataGraft, 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 first quarter was $480.0
million, benefited in the quarter by the receipt of the
Coronavirus Aid, Relief, and Economic Security (CARES) Act
receivable offset by seasonality changes in working capital. The
Company continues to maintain an undrawn accounts receivable
financing facility up to $200
million, ending the quarter with approximately $680 million in liquidity. Total principal debt
outstanding at the end of the first quarter was $3.523 billion, with net debt of $3.043 billion. In the quarter, Mallinckrodt entered into an interest rate cap
agreement, which serves to reduce volatility on future interest
rate cash outflows.
Please see "Non-GAAP Financial Measures" included in this
release for a discussion of non-GAAP measures and reconciliation of
GAAP and non-GAAP financial measures for the first quarter.
2023 Financial Guidance
For the full-year 2023, Mallinckrodt
reaffirmed the following guidance:
|
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.
Conference Call and Webcast
Mallinckrodt will hold a conference
call today, May 9, 2023, at
8:30 a.m. Eastern Time to discuss its
financial results and performance for the first quarter 2023. The
live call and subsequent replay can be accessed as follows:
- Live Call Participant Registration (including
dial-in): https://register.vevent.com/register/BIbe1f9805fe5b4490acd8359f7bdd616d
- Directly via the webcast link (live and replay):
https://edge.media-server.com/mmc/p/24fqexpx
- 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 inventory 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 inventory and
accretion 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 March 31, 2023 represents the total
principal debt outstanding of $3.523
billion, less cash of $480.0
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 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
presented here within include Successor and Predecessor periods.
The Successor period runs from June 17,
2022 through March 31, 2023,
while the Predecessor period includes June
16, 2022 and prior. 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 comparison of the Predecessor and
Successor periods for the periods presented here within is not in
accordance with GAAP. However, the Company believes that the
comparison is useful for management and investors to assess
Mallinckrodt's ongoing financial and
operational performance and trends.
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 and Quarterly Reports on Form 10-Q for the quarterly
periods ended March 31, 2023, 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. © 2023.
Exhibit 99.1
MALLINCKRODT
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
March 31, 2023
|
|
|
Three Months
Ended
April 1, 2022
|
|
|
Percent
of
Net
sales
|
|
|
|
Percent
of
Net
sales
|
Net sales
|
$
424.6
|
100.0 %
|
|
|
$
490.9
|
100.0 %
|
Cost of
sales
|
374.8
|
88.3
|
|
|
315.2
|
64.2
|
Gross
profit
|
49.8
|
11.7
|
|
|
175.7
|
35.8
|
Selling, general and
administrative expenses
|
122.9
|
28.9
|
|
|
152.5
|
31.1
|
Research and
development expenses
|
28.3
|
6.7
|
|
|
37.2
|
7.6
|
Restructuring charges,
net
|
1.2
|
0.3
|
|
|
6.8
|
1.4
|
Operating
loss
|
(102.6)
|
(24.2)
|
|
|
(20.8)
|
(4.2)
|
Interest
expense
|
(162.0)
|
(38.2)
|
|
|
(58.2)
|
(11.9)
|
Interest
income
|
4.7
|
1.1
|
|
|
0.4
|
0.1
|
Other expense,
net
|
(14.6)
|
(3.4)
|
|
|
(4.1)
|
(0.8)
|
Reorganization items,
net
|
(5.6)
|
(1.3)
|
|
|
(43.4)
|
(8.8)
|
Loss from continuing
operations before income taxes
|
(280.1)
|
(66.0)
|
|
|
(126.1)
|
(25.7)
|
Income tax
benefit
|
(30.8)
|
(7.3)
|
|
|
(5.9)
|
(1.2)
|
Loss from continuing
operations
|
(249.3)
|
(58.7)
|
|
|
(120.2)
|
(24.5)
|
Income from
discontinued operations, net of income taxes
|
—
|
—
|
|
|
0.6
|
0.1
|
Net loss
|
$
(249.3)
|
(58.7) %
|
|
|
$
(119.6)
|
(24.4) %
|
|
|
|
|
|
|
|
Basic and diluted
(loss) income per share:
|
|
|
|
|
|
|
Loss from continuing
operations
|
$
(18.93)
|
|
|
|
$
(1.42)
|
|
Income from
discontinued operations
|
—
|
|
|
|
0.01
|
|
Net loss
|
$
(18.93)
|
|
|
|
$
(1.41)
|
|
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
March 31, 2023
|
|
|
Three Months
Ended
April 1, 2022
|
Net loss
|
$
(249.3)
|
|
|
$
(119.6)
|
Adjustments:
|
|
|
|
|
Interest expense,
net
|
157.3
|
|
|
57.8
|
Income tax
benefit
|
(30.8)
|
|
|
(5.9)
|
Depreciation
|
11.9
|
|
|
22.1
|
Amortization
|
133.2
|
|
|
155.1
|
Restructuring charges,
net
|
1.2
|
|
|
6.8
|
Income from
discontinued operations
|
—
|
|
|
(0.6)
|
Change in contingent
consideration fair value
|
0.4
|
|
|
(0.1)
|
Significant legal and
environmental charges
|
—
|
|
|
11.1
|
Separation costs
(1)
|
4.9
|
|
|
2.0
|
Unrealized loss on
equity investment
|
15.1
|
|
|
3.7
|
Reorganization items,
net
|
5.6
|
|
|
43.4
|
Share-based
compensation
|
2.6
|
|
|
1.2
|
Fresh-start
inventory-related expense (2)
|
71.4
|
|
|
—
|
As adjusted:
|
$
123.5
|
|
|
$
177.0
|
|
|
(1)
|
Represents costs
included in SG&A expenses, primarily related to professional
fees and costs incurred as the Company explores potential sales of
non-core assets to enable further deleveraging
post-emergence.
|
(2)
|
Represents $71.4
million of inventory fair-value step up expense during the three
months ended March 31, 2023 (Successor).
|
MALLINCKRODT
PLC
|
NON-GAAP
MEASURES
|
(unaudited, in
millions except per share data)
|
|
|
|
|
|
|
|
Successor
|
|
Three Months
Ended
March 31, 2023
|
|
Gross
profit
|
SG&A
|
Net (loss)
income
|
|
Diluted net
(loss) income
per share
|
Net loss
|
$
49.8
|
$
122.9
|
$
(249.3)
|
|
$
(18.93)
|
Adjustments:
|
|
|
|
|
|
Intangible asset
amortization
|
133.2
|
—
|
133.2
|
|
10.06
|
Restructuring charges,
net
|
—
|
(0.7)
|
1.9
|
|
0.14
|
Change in contingent
consideration fair value
|
—
|
(0.4)
|
0.4
|
|
0.03
|
Separation costs
(1)
|
—
|
(4.9)
|
4.9
|
|
0.37
|
Unrealized loss on
equity investment
|
—
|
—
|
15.1
|
|
1.14
|
Reorganization items,
net
|
—
|
—
|
5.6
|
|
0.42
|
Fresh-start
inventory-related expense (2)
|
71.4
|
—
|
71.4
|
|
5.39
|
Non-cash interest
expense - accretion
|
—
|
—
|
69.9
|
|
5.28
|
Income taxes
(3)
|
—
|
—
|
(30.9)
|
|
(2.33)
|
As adjusted:
|
$
254.4
|
$
116.9
|
$
22.2
|
|
1.68
|
|
|
|
|
|
|
Percent of net
sales
|
59.9 %
|
27.5 %
|
5.2 %
|
|
|
|
|
(1)
|
Represents costs
included in SG&A expenses, primarily related to professional
fees and costs incurred as the Company explores potential sales of
non-core assets to enable further deleveraging
post-emergence.
|
(2)
|
Represents $71.4
million of inventory fair-value step up expense during the three
months ended March 31, 2023 (Successor).
|
(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
March 31, 2023
|
|
|
Three Months
Ended
April 1, 2022
|
Specialty Brands
(1)
|
$
32.4
|
|
|
$
164.8
|
Specialty Generics
(2)
|
32.8
|
|
|
34.4
|
Segment operating
income
|
65.2
|
|
|
199.2
|
Unallocated
amounts:
|
|
|
|
|
Corporate and
unallocated expenses
(3)
|
(14.0)
|
|
|
(32.8)
|
Depreciation and
amortization
|
(145.1)
|
|
|
(177.2)
|
Share-based
compensation
|
(2.6)
|
|
|
(1.2)
|
Restructuring charges,
net
|
(1.2)
|
|
|
(6.8)
|
Separation costs
(4)
|
(4.9)
|
|
|
(2.0)
|
Operating
loss
|
$
(102.6)
|
|
|
$
(20.8)
|
|
|
(1)
|
Includes $61.1 million
of inventory fair-value step-up expense during the three months
ended March 31, 2023 (Successor).
|
(2)
|
Includes $10.3 million
of inventory fair-value step-up expense during the three months
ended March 31, 2023 (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 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
AND CONSTANT-CURRENCY GROWTH
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Three Months
Ended
March 31, 2023
|
|
|
Three Months
Ended
April 1, 2022
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
Specialty
Brands
|
$
252.0
|
|
|
$
339.4
|
|
(25.8) %
|
|
(0.3) %
|
|
(25.5) %
|
Specialty
Generics
|
172.6
|
|
|
151.5
|
|
13.9
|
|
(0.1)
|
|
14.0
|
Net sales
|
$
424.6
|
|
|
$
490.9
|
|
(13.5) %
|
|
(0.2) %
|
|
(13.3) %
|
MALLINCKRODT
PLC
|
SELECT PRODUCT LINE
NET SALES AND CONSTANT-CURRENCY GROWTH
|
(unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Non-GAAP
Measure
|
|
Three Months
Ended
March 31, 2023
|
|
|
Three Months
Ended
April 1, 2022
|
|
Percent
change
|
|
Currency
impact
|
|
Constant-
currency
growth
|
Specialty
Brands
|
|
|
|
|
|
|
|
|
|
|
Acthar Gel
|
$
82.0
|
|
|
$
127.7
|
|
(35.8) %
|
|
— %
|
|
(35.8) %
|
INOmax
|
82.7
|
|
|
99.0
|
|
(16.5)
|
|
—
|
|
(16.5)
|
Therakos
|
58.7
|
|
|
59.9
|
|
(2.0)
|
|
(1.5)
|
|
(0.5)
|
Amitiza
|
24.5
|
|
|
47.7
|
|
(48.6)
|
|
—
|
|
(48.6)
|
Terlivaz
|
2.2
|
|
|
—
|
|
—
|
|
—
|
|
—
|
Other
|
1.9
|
|
|
5.1
|
|
(62.7)
|
|
(4.8)
|
|
(57.9)
|
Specialty Brands
Total
|
252.0
|
|
|
339.4
|
|
(25.8)
|
|
(0.3)
|
|
(25.5)
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Generics
|
|
|
|
|
|
|
|
|
|
|
Opioids
|
62.2
|
|
|
50.0
|
|
24.4
|
|
—
|
|
24.4
|
ADHD
|
22.4
|
|
|
10.8
|
|
107.4
|
|
—
|
|
107.4
|
Addiction
treatment
|
15.6
|
|
|
15.9
|
|
(1.9)
|
|
(0.6)
|
|
(1.3)
|
Other
|
1.8
|
|
|
2.8
|
|
(35.7)
|
|
—
|
|
(35.7)
|
Generics
|
102.0
|
|
|
79.5
|
|
28.3
|
|
(0.1)
|
|
28.4
|
Controlled
substances
|
18.5
|
|
|
20.4
|
|
(9.3)
|
|
—
|
|
(9.3)
|
APAP
|
46.4
|
|
|
46.3
|
|
0.2
|
|
—
|
|
0.2
|
Other
|
5.7
|
|
|
5.3
|
|
7.5
|
|
—
|
|
7.5
|
API
|
70.6
|
|
|
72.0
|
|
(1.9)
|
|
—
|
|
(1.9)
|
Specialty
Generics
|
172.6
|
|
|
151.5
|
|
13.9
|
|
(0.1)
|
|
14.0
|
Net sales
|
$
424.6
|
|
|
$
490.9
|
|
(13.5)
|
|
(0.2)
|
|
(13.3)
|
MALLINCKRODT
PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited, in
millions)
|
|
|
|
|
|
Successor
|
|
March 31,
2023
|
|
December 30,
2022
|
Assets
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
480.0
|
|
$
409.5
|
Accounts receivable,
net
|
395.1
|
|
405.3
|
Inventories
|
895.4
|
|
947.6
|
Prepaid expenses and
other current assets
|
120.7
|
|
273.4
|
Total current
assets
|
1,891.2
|
|
2,035.8
|
Property, plant and
equipment, net
|
454.4
|
|
457.6
|
Intangible assets,
net
|
2,710.6
|
|
2,843.8
|
Deferred income
taxes
|
509.4
|
|
475.5
|
Other assets
|
205.2
|
|
201.1
|
Total
Assets
|
$
5,770.8
|
|
$
6,013.8
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
44.1
|
|
$
44.1
|
Accounts
payable
|
86.4
|
|
114.0
|
Accrued payroll and
payroll-related costs
|
35.4
|
|
49.5
|
Accrued
interest
|
76.8
|
|
29.0
|
Acthar Gel-Related
Settlement
|
16.5
|
|
16.5
|
Opioid-Related
Litigation Settlement liability
|
200.0
|
|
200.0
|
Accrued and other
current liabilities
|
234.5
|
|
290.7
|
Total current
liabilities
|
693.7
|
|
743.8
|
Long-term
debt
|
3,041.6
|
|
3,027.7
|
Acthar Gel-Related
Settlement
|
81.2
|
|
75.0
|
Opioid-Related
Litigation Settlement liability
|
419.6
|
|
379.9
|
Pension and
postretirement benefits
|
41.2
|
|
41.0
|
Environmental
liabilities
|
35.6
|
|
35.8
|
Other income tax
liabilities
|
18.5
|
|
18.2
|
Other
liabilities
|
75.0
|
|
78.7
|
Total
Liabilities
|
4,406.4
|
|
4,400.1
|
Shareholders'
Equity:
|
|
|
|
Preferred
shares
|
—
|
|
—
|
Ordinary
shares
|
0.1
|
|
0.1
|
Additional paid-in
capital
|
2,193.6
|
|
2,191.0
|
Accumulated other
comprehensive income
|
8.2
|
|
10.8
|
Retained
deficit
|
(837.5)
|
|
(588.2)
|
Total
Shareholders' Equity
|
1,364.4
|
|
1,613.7
|
Total
Liabilities and Shareholders' Equity
|
$
5,770.8
|
|
$
6,013.8
|
MALLINCKRODT
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited, in
millions)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Three Months
Ended
March 31, 2023
|
|
|
Three Months
Ended
April 1, 2022
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net loss
|
$
(249.3)
|
|
|
$
(119.6)
|
Adjustments to
reconcile net cash from operating activities:
|
|
|
|
|
Depreciation and
amortization
|
145.1
|
|
|
177.2
|
Share-based
compensation
|
2.6
|
|
|
1.2
|
Deferred income
taxes
|
(33.4)
|
|
|
(0.9)
|
Reorganization items,
net
|
—
|
|
|
2.9
|
Non-cash accretion
expense
|
69.9
|
|
|
—
|
Other non-cash
items
|
20.0
|
|
|
12.3
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts receivable,
net
|
9.6
|
|
|
73.8
|
Inventories
|
48.0
|
|
|
(27.0)
|
Accounts
payable
|
(20.4)
|
|
|
0.4
|
Income
taxes
|
138.9
|
|
|
(7.8)
|
Other
|
(31.1)
|
|
|
(63.3)
|
Net cash from
operating activities
|
99.9
|
|
|
49.2
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
(19.3)
|
|
|
(23.6)
|
Other
|
0.3
|
|
|
0.2
|
Net cash from
investing activities
|
(19.0)
|
|
|
(23.4)
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Repayment of external
debt
|
(11.0)
|
|
|
(4.6)
|
Net cash from
financing activities
|
(11.0)
|
|
|
(4.6)
|
Effect of currency rate
changes on cash
|
0.3
|
|
|
(0.7)
|
Net change in cash,
cash equivalents and restricted cash
|
70.2
|
|
|
20.5
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
466.7
|
|
|
1,405.2
|
Cash, cash
equivalents and restricted cash at end of period
|
$
536.9
|
|
|
$
1,425.7
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
480.0
|
|
|
$
1,365.3
|
Restricted cash
included in prepaid expenses and other current assets at end of
period
|
21.5
|
|
|
24.0
|
Restricted cash
included in other long-term assets at end of period
|
35.4
|
|
|
36.4
|
Cash, cash
equivalents and restricted cash at end of period
|
$
536.9
|
|
|
$
1,425.7
|
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