Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Mallinckrodt plc | mnk-20201103.htm |
Exhibit 99.1
| MALLINCKRODT PLC | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (unaudited, in millions, except per share data) | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| September 25, 2020 | Percent of Net sales | September 27, 2019 | Percent of Net sales | ||||||||||||||
Net sales | $ | 698.3 | 100.0 | % | $ | 743.7 | 100.0 | % | |||||||||
| Cost of sales | 403.0 | 57.7 | 419.4 | 56.4 | |||||||||||||
| Gross profit | 295.3 | 42.3 | 324.3 | 43.6 | |||||||||||||
| Selling, general and administrative expenses | 220.8 | 31.6 | 205.7 | 27.7 | |||||||||||||
| Research and development expenses | 65.5 | 9.4 | 103.1 | 13.9 | |||||||||||||
| Restructuring charges, net | 3.2 | 0.5 | 7.2 | 1.0 | |||||||||||||
| Gains on divestiture | (9.7) | (1.4) | — | — | |||||||||||||
| Opioid-related litigation settlement | (25.8) | (3.7) | — | — | |||||||||||||
| Medicaid lawsuit | (0.2) | — | — | — | |||||||||||||
| Operating income | 41.5 | 5.9 | 8.3 | 1.1 | |||||||||||||
| Interest expense | (62.2) | (8.9) | (77.6) | (10.4) | |||||||||||||
| Interest income | 0.9 | 0.1 | 2.9 | 0.4 | |||||||||||||
| Other income, net | — | — | 37.9 | 5.1 | |||||||||||||
| Loss from continuing operations before income taxes | (19.8) | (2.8) | (28.5) | (3.8) | |||||||||||||
| Income tax benefit | (211.6) | (30.3) | (27.6) | (3.7) | |||||||||||||
| Income (loss) from continuing operations | 191.8 | 27.5 | (0.9) | (0.1) | |||||||||||||
| Loss from discontinued operations, net of income taxes | (0.2) | — | (0.2) | — | |||||||||||||
| Net income (loss) | $ | 191.6 | 27.4 | % | $ | (1.1) | (0.1) | % | |||||||||
| Basic earnings (loss) per share: | |||||||||||||||||
| Income (loss) from continuing operations | $ | 2.27 | $ | (0.01) | |||||||||||||
| Loss from discontinued operations | — | — | |||||||||||||||
| Net income (loss) | $ | 2.26 | $ | (0.01) | |||||||||||||
| Diluted earnings (loss) per share: | |||||||||||||||||
| Income (loss) from continuing operations | $ | 2.27 | $ | (0.01) | |||||||||||||
| Loss from discontinued operations | — | — | |||||||||||||||
| Net income (loss) | $ | 2.26 | $ | (0.01) | |||||||||||||
| Weighted-average number of shares outstanding | |||||||||||||||||
| Basic weighted-average shares outstanding | 84.6 | 84.0 | |||||||||||||||
| Diluted weighted-average shares outstanding | 84.6 | 84.0 | |||||||||||||||
1
| MALLINCKRODT PLC | |||||||||||
| CONSOLIDATED ADJUSTED EBITDA | |||||||||||
| (unaudited, in millions) | |||||||||||
| Three Months Ended | |||||||||||
| September 25, 2020 | September 27, 2019 | ||||||||||
| Net income (loss) | $ | 191.6 | $ | (1.1) | |||||||
| Adjustments: | |||||||||||
| Interest expense, net | 61.3 | 74.7 | |||||||||
| Income taxes | (211.6) | (27.6) | |||||||||
| Depreciation and amortization | 236.1 | 234.9 | |||||||||
| Restructuring and related charges, net | 3.2 | 7.2 | |||||||||
| Loss from discontinued operations | 0.2 | 0.2 | |||||||||
| Change in contingent consideration fair value | 8.1 | (25.8) | |||||||||
Significant legal and environmental charges (1) | (11.9) | 28.2 | |||||||||
| Gains on divestiture | (9.7) | — | |||||||||
| Separation costs | 33.0 | 19.8 | |||||||||
| Gains on debt extinguishment, net | — | (17.9) | |||||||||
| Unrealized loss (gain) on equity investment | 0.8 | (6.5) | |||||||||
| R&D upfront payment | — | 20.0 | |||||||||
| Share-based compensation | 4.3 | 7.8 | |||||||||
| Adjusted EBITDA | $ | 305.4 | $ | 313.9 | |||||||
(1)Includes a $25.8 million decrease in the fair value of the opioid settlement warrants, partially offset by $13.4 million in opioid defense costs and a $0.5 million change to the retrospective Medicaid lawsuit liability. Opioid defense costs are considered to be non-recurring as a result of the opioid-related litigation settlement announced during the three months ended March 27, 2020; therefore, such costs are included as an adjustment to net income on a go-forward basis.
2
| MALLINCKRODT PLC | |||||||||||
SEGMENT OPERATING INCOME (1) | |||||||||||
| (unaudited, in millions) | |||||||||||
| Three Months Ended | |||||||||||
| September 25, 2020 | September 27, 2019 | ||||||||||
| Specialty Brands | $ | 291.8 | $ | 277.0 | |||||||
| Specialty Generics | 43.1 | 36.3 | |||||||||
| Segment operating income | 334.9 | 313.3 | |||||||||
| Unallocated amounts: | |||||||||||
Corporate and unallocated expenses (2) | (42.1) | (15.3) | |||||||||
| Depreciation and amortization | (236.1) | (234.9) | |||||||||
| Share-based compensation | (4.3) | (7.8) | |||||||||
| Restructuring charges, net | (3.2) | (7.2) | |||||||||
| Separation costs | (33.0) | (19.8) | |||||||||
| R&D upfront payment | — | (20.0) | |||||||||
| Opioid-related litigation settlement | 25.8 | — | |||||||||
| Medicaid lawsuit | (0.5) | — | |||||||||
| Operating income | $ | 41.5 | $ | 8.3 | |||||||
(1)During the three months ended September 25, 2020, the Company began excluding depreciation and share-based compensation from its evaluation of the operating results of its segments. As a result, prior period segment operating income has been recast to reflect this change on a comparable basis.
(2)Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments.
3
| MALLINCKRODT PLC | |||||||||||||||||||||||||||||
| SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH | |||||||||||||||||||||||||||||
| (unaudited, in millions) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| September 25, 2020 | September 27, 2019 | Percent change | Currency impact | Constant-currency growth | |||||||||||||||||||||||||
Specialty Brands (1) | $ | 539.6 | $ | 580.4 | (7.0) | % | 0.1 | % | (7.1) | % | |||||||||||||||||||
| Specialty Generics | 159.4 | 163.3 | (2.4) | — | (2.4) | ||||||||||||||||||||||||
| Segment net sales | 699.0 | 743.7 | (6.0) | 0.1 | (6.1) | ||||||||||||||||||||||||
| Medicaid lawsuit | (0.7) | — | * | * | * | ||||||||||||||||||||||||
| Net sales | $ | 698.3 | $ | 743.7 | (6.1) | % | 0.1 | % | (6.2) | % | |||||||||||||||||||
*Not meaningful
(1)The three months ended September 25, 2020 includes the prospective change to the Medicaid rebate calculation beginning in June 2020, which impacted Acthar Gel net sales by $22.2 million.
| MALLINCKRODT PLC | |||||||||||||||||||||||||||||
| SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH | |||||||||||||||||||||||||||||
| (unaudited, in millions) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| September 25, 2020 | September 27, 2019 | Percent change | Currency impact | Constant-currency growth | |||||||||||||||||||||||||
| Specialty Brands | |||||||||||||||||||||||||||||
Acthar Gel (1) | $ | 195.3 | $ | 229.8 | (15.0) | % | — | % | (15.0) | % | |||||||||||||||||||
| INOmax | 141.9 | 136.8 | 3.7 | — | 3.7 | ||||||||||||||||||||||||
| Ofirmev | 88.7 | 86.1 | 3.0 | — | 3.0 | ||||||||||||||||||||||||
| Therakos | 62.6 | 60.9 | 2.8 | 1.2 | 1.6 | ||||||||||||||||||||||||
| Amitiza | 47.7 | 52.6 | (9.3) | — | (9.3) | ||||||||||||||||||||||||
Other (2) | 3.4 | 14.2 | (76.1) | — | (76.1) | ||||||||||||||||||||||||
| Specialty Brands Total | 539.6 | 580.4 | (7.0) | 0.1 | (7.1) | ||||||||||||||||||||||||
| Specialty Generics | |||||||||||||||||||||||||||||
| Hydrocodone (API) and hydrocodone-containing tablets | 20.0 | 15.7 | 27.4 | — | 27.4 | ||||||||||||||||||||||||
| Oxycodone (API) and oxycodone-containing tablets | 16.1 | 17.2 | (6.4) | — | (6.4) | ||||||||||||||||||||||||
| Acetaminophen (API) | 54.9 | 48.5 | 13.2 | — | 13.2 | ||||||||||||||||||||||||
| Other controlled substances | 62.4 | 72.9 | (14.4) | (0.1) | (14.3) | ||||||||||||||||||||||||
| Other | 6.0 | 9.0 | (33.3) | — | (33.3) | ||||||||||||||||||||||||
| Specialty Generics Total | 159.4 | 163.3 | (2.4) | — | (2.4) | ||||||||||||||||||||||||
| Segment net sales | 699.0 | 743.7 | (6.0) | 0.1 | (6.1) | ||||||||||||||||||||||||
| Medicaid lawsuit | (0.7) | — | * | * | * | ||||||||||||||||||||||||
| Net sales | $ | 698.3 | $ | 743.7 | (6.1) | % | 0.1 | % | (6.2) | % | |||||||||||||||||||
*Not meaningful
(1)The three months ended September 25, 2020 includes the prospective change to the Medicaid rebate calculation beginning in June 2020, which impacted Acthar Gel net sales by $22.2 million.
(2)The three months ended September 27, 2019 includes $10.5 million of net sales related to BioVectra, Inc. ("BioVectra") prior to the completion of the sale of this business in November 2019.
4
| MALLINCKRODT PLC | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (unaudited, in millions, except per share data) | |||||||||||||||||
| Nine Months Ended | |||||||||||||||||
| September 25, 2020 | Percent of Net sales | September 27, 2019 | Percent of Net sales | ||||||||||||||
Net sales (includes refined estimate of the retrospective one-time charge of $535.1 million related to the Medicaid lawsuit for the nine months ended September 25, 2020) | $ | 1,530.6 | 100.0 | % | $ | 2,357.6 | 100.0 | % | |||||||||
| Cost of sales | 1,171.7 | 76.6 | 1,309.3 | 55.5 | |||||||||||||
| Gross profit | 358.9 | 23.4 | 1,048.3 | 44.5 | |||||||||||||
| Selling, general and administrative expenses | 683.2 | 44.6 | 661.8 | 28.1 | |||||||||||||
| Research and development expenses | 225.8 | 14.8 | 268.0 | 11.4 | |||||||||||||
| Restructuring charges, net | 15.8 | 1.0 | 11.2 | 0.5 | |||||||||||||
| Non-restructuring impairment charges | 63.5 | 4.1 | 113.5 | 4.8 | |||||||||||||
| Gains on divestiture | (10.1) | (0.7) | — | — | |||||||||||||
| Opioid-related litigation settlement | (34.1) | (2.2) | — | — | |||||||||||||
| Medicaid lawsuit | 105.1 | 6.9 | — | — | |||||||||||||
| Operating loss | (690.3) | (45.1) | (6.2) | (0.3) | |||||||||||||
| Interest expense | (200.9) | (13.1) | (231.8) | (9.8) | |||||||||||||
| Interest income | 5.4 | 0.4 | 6.6 | 0.3 | |||||||||||||
| Other income, net | 1.1 | 0.1 | 128.6 | 5.5 | |||||||||||||
Loss from continuing operations before income taxes | (884.7) | (57.8) | (102.8) | (4.4) | |||||||||||||
| Income tax benefit | (69.2) | (4.5) | (256.6) | (10.9) | |||||||||||||
| (Loss) income from continuing operations | (815.5) | (53.3) | 153.8 | 6.5 | |||||||||||||
Income from discontinued operations, net of income taxes | 23.8 | 1.6 | 6.8 | 0.3 | |||||||||||||
| Net (loss) income | $ | (791.7) | (51.7) | % | $ | 160.6 | 6.8 | % | |||||||||
| Basic (loss) earnings per share: | |||||||||||||||||
| (Loss) income from continuing operations | $ | (9.66) | $ | 1.84 | |||||||||||||
| Income from discontinued operations | 0.28 | 0.08 | |||||||||||||||
| Net (loss) income | $ | (9.38) | $ | 1.92 | |||||||||||||
| Diluted (loss) earnings per share: | |||||||||||||||||
| (Loss) income from continuing operations | $ | (9.66) | $ | 1.83 | |||||||||||||
| Income from discontinued operations | 0.28 | 0.08 | |||||||||||||||
| Net (loss) income | $ | (9.38) | $ | 1.91 | |||||||||||||
| Weighted-average number of shares outstanding: | |||||||||||||||||
| Basic | 84.4 | 83.8 | |||||||||||||||
| Diluted | 84.4 | 84.2 | |||||||||||||||
5
| MALLINCKRODT PLC | |||||||||||
| CONSOLIDATED ADJUSTED EBITDA | |||||||||||
| (unaudited, in millions) | |||||||||||
| Nine Months Ended | |||||||||||
| September 25, 2020 | September 27, 2019 | ||||||||||
| Net (loss) income | $ | (791.7) | $ | 160.6 | |||||||
| Adjustments: | |||||||||||
| Interest expense, net | 195.5 | 225.2 | |||||||||
| Income taxes | (69.2) | (256.6) | |||||||||
| Depreciation and amortization | 675.5 | 723.5 | |||||||||
| Restructuring and related charges, net | 15.8 | 11.2 | |||||||||
| Non-restructuring impairment charge | 63.5 | 113.5 | |||||||||
| Inventory step-up expense | — | 10.0 | |||||||||
| Income from discontinued operations | (23.8) | (6.8) | |||||||||
| Change in contingent consideration fair value | 2.4 | (23.5) | |||||||||
Significant legal and environmental charges (1) | 659.2 | 28.2 | |||||||||
| Gains on divestiture | (10.1) | — | |||||||||
| Separation costs | 75.0 | 50.4 | |||||||||
| Gain on debt extinguishment, net | — | (89.2) | |||||||||
| Unrealized gain on equity investment | (2.2) | (6.5) | |||||||||
| R&D upfront payment | 5.0 | 20.0 | |||||||||
| Share-based compensation | 17.6 | 30.6 | |||||||||
| Adjusted EBITDA | $ | 812.5 | $ | 990.6 | |||||||
(1)Includes a retrospective one-time charge of $640.2 million (the "Acthar Gel Medicaid Retrospective Rebate"), of which $535.1 million and $105.1 million have been reflected as a component of net sales and operating expenses, respectively, in the unaudited condensed consolidated statement of operations for the nine months ended September 25, 2020. The $105.1 million reflected as a component of operating expenses represents a pre-acquisition contingency related to the portion of the Acthar Gel Medicaid Retrospective Rebate that arose from sales of Acthar Gel prior to the Company’s acquisition of Questcor Pharmaceuticals, Inc. in August 2014. Also includes $53.1 million in opioid defense costs which are considered to be non-recurring as a result of the opioid-related litigation settlement announced during the three months ended March 27, 2020; therefore, such costs are included as an adjustment to net income on a go-forward basis. These costs were partially offset by a $34.1 million decrease in the fair value of the opioid settlement warrants.
6
| MALLINCKRODT PLC | |||||||||||
SEGMENT OPERATING INCOME (1) | |||||||||||
| (unaudited, in millions) | |||||||||||
| Nine Months Ended | |||||||||||
| September 25, 2020 | September 27, 2019 | ||||||||||
Specialty Brands (2) | $ | 765.0 | $ | 894.2 | |||||||
| Specialty Generics | 155.5 | 125.4 | |||||||||
| Segment operating income | 920.5 | 1,019.6 | |||||||||
| Unallocated amounts: | |||||||||||
Corporate and unallocated expenses (3) | (152.3) | (76.6) | |||||||||
| Depreciation and amortization | (675.5) | (723.5) | |||||||||
| Share-based compensation | (17.6) | (30.6) | |||||||||
| Restructuring and related charges, net | (15.8) | (11.2) | |||||||||
| Non-restructuring impairment charges | (63.5) | (113.5) | |||||||||
| Separation costs | (75.0) | (50.4) | |||||||||
| R&D upfront payment | (5.0) | (20.0) | |||||||||
| Opioid-related litigation settlement | 34.1 | — | |||||||||
| Medicaid lawsuit | (640.2) | — | |||||||||
| Operating loss | $ | (690.3) | $ | (6.2) | |||||||
(1)During the three months ended September 25, 2020, the Company began excluding depreciation and share-based compensation from its evaluation of the operating results of its segments. As a result, prior period segment operating income has been recast to reflect this change on a comparable basis.
(2)Includes $10.0 million of inventory fair-value step up expense, primarily related to Amitiza, during the nine months ended September 27, 2019.
(3)Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments.
7
| MALLINCKRODT PLC | |||||||||||||||||||||||||||||
| SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH | |||||||||||||||||||||||||||||
| (unaudited, in millions) | |||||||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 25, 2020 | September 27, 2019 | Percent change | Currency impact | Constant-currency growth | |||||||||||||||||||||||||
Specialty Brands (1) | $ | 1,553.0 | $ | 1,812.4 | (14.3) | % | — | % | (14.3) | % | |||||||||||||||||||
| Specialty Generics | 512.7 | 545.2 | (6.0) | — | (6.0) | ||||||||||||||||||||||||
| Segment net sales | 2,065.7 | 2,357.6 | (12.4) | — | (12.4) | ||||||||||||||||||||||||
| Medicaid lawsuit | (535.1) | — | * | * | * | ||||||||||||||||||||||||
| Net sales | $ | 1,530.6 | $ | 2,357.6 | (35.1) | % | — | % | (35.1) | % | |||||||||||||||||||
*Not meaningful
(1)The nine months ended September 25, 2020 includes the prospective change to the Medicaid rebate calculation beginning in June 2020, which impacted Acthar Gel net sales by $30.8 million.
| MALLINCKRODT PLC | |||||||||||||||||||||||||||||
| SELECT PRODUCT LINE NET SALES | |||||||||||||||||||||||||||||
| (unaudited, in millions) | |||||||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 25, 2020 | September 27, 2019 | Percent change | Currency impact | Constant-currency growth | |||||||||||||||||||||||||
| Specialty Brands | |||||||||||||||||||||||||||||
Acthar (1) | $ | 576.6 | $ | 720.1 | (19.9) | % | — | % | (19.9) | % | |||||||||||||||||||
| Inomax | 438.5 | 427.6 | 2.5 | — | 2.5 | ||||||||||||||||||||||||
| Ofirmev | 216.0 | 272.2 | (20.6) | — | (20.6) | ||||||||||||||||||||||||
| Therakos | 174.1 | 183.6 | (5.2) | — | (5.2) | ||||||||||||||||||||||||
| Amitiza | 138.2 | 157.6 | (12.3) | — | (12.3) | ||||||||||||||||||||||||
Other (2) | 9.6 | 51.3 | (81.3) | — | (81.3) | ||||||||||||||||||||||||
| Specialty Brands Total | 1,553.0 | 1,812.4 | (14.3) | — | (14.3) | ||||||||||||||||||||||||
| Specialty Generics | |||||||||||||||||||||||||||||
| Hydrocodone (API) and hydrocodone-containing tablets | 71.9 | 51.2 | 40.4 | — | 40.4 | ||||||||||||||||||||||||
| Oxycodone (API) and oxycodone-containing tablets | 48.0 | 53.3 | (9.9) | — | (9.9) | ||||||||||||||||||||||||
| Acetaminophen (API) | 154.5 | 143.1 | 8.0 | — | 8.0 | ||||||||||||||||||||||||
| Other controlled substances | 223.8 | 265.7 | (15.8) | (0.1) | (15.7) | ||||||||||||||||||||||||
| Other | 14.5 | 31.9 | (54.5) | — | (54.5) | ||||||||||||||||||||||||
| Specialty Generics Total | 512.7 | 545.2 | (6.0) | — | (6.0) | ||||||||||||||||||||||||
| Segment net sales | 2,065.7 | 2,357.6 | (12.4) | — | (12.4) | ||||||||||||||||||||||||
| Medicaid lawsuit | (535.1) | — | * | * | * | ||||||||||||||||||||||||
| Net sales | $ | 1,530.6 | $ | 2,357.6 | (35.1) | % | — | % | (35.1) | % | |||||||||||||||||||
*Not meaningful
(1)The nine months ended September 25, 2020 includes the prospective change to the Medicaid rebate calculation beginning in June 2020, which impacted Acthar Gel net sales by $30.8 million.
(2)The nine months ended September 27, 2019 includes $36.8 million of net sales related to BioVectra prior to the completion of the sale of this business in November 2019.
8
| MALLINCKRODT PLC | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (unaudited, in millions) | |||||||||||
| September 25, 2020 | December 27, 2019 | ||||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 844.2 | $ | 790.9 | |||||||
| Accounts receivable, net | 516.1 | 577.5 | |||||||||
| Inventories | 343.3 | 312.1 | |||||||||
| Prepaid expenses and other current assets | 360.9 | 150.2 | |||||||||
| Total current assets | 2,064.5 | 1,830.7 | |||||||||
| Property, plant and equipment, net | 851.4 | 896.5 | |||||||||
| Intangible assets, net | 6,355.9 | 7,018.0 | |||||||||
| Other assets | 433.1 | 593.7 | |||||||||
| Total Assets | $ | 9,704.9 | $ | 10,338.9 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Current Liabilities: | |||||||||||
| Current maturities of long-term debt | $ | 5,241.3 | $ | 633.6 | |||||||
| Accounts payable | 79.1 | 139.8 | |||||||||
| Accrued payroll and payroll-related costs | 73.1 | 105.2 | |||||||||
| Accrued interest | 89.1 | 62.9 | |||||||||
| Medicaid lawsuit | 640.2 | — | |||||||||
| Accrued and other current liabilities | 381.0 | 485.4 | |||||||||
| Total current liabilities | 6,503.8 | 1,426.9 | |||||||||
| Long-term debt | — | 4,741.2 | |||||||||
| Opioid-related litigation settlement liability | 1,609.3 | 1,643.4 | |||||||||
| Pension and postretirement benefits | 61.4 | 62.4 | |||||||||
| Environmental liabilities | 60.0 | 60.0 | |||||||||
| Other income tax liabilities | 118.5 | 227.1 | |||||||||
| Other liabilities | 186.2 | 237.2 | |||||||||
| Total Liabilities | 8,539.2 | 8,398.2 | |||||||||
| Shareholders' Equity: | |||||||||||
| Preferred shares | — | — | |||||||||
Ordinary shares | 18.8 | 18.7 | |||||||||
| Ordinary shares held in treasury at cost | (1,616.1) | (1,615.7) | |||||||||
| Additional paid-in capital | 5,580.0 | 5,562.5 | |||||||||
| Retained deficit | (2,808.6) | (2,016.9) | |||||||||
| Accumulated other comprehensive loss | (8.4) | (7.9) | |||||||||
| Total Shareholders' Equity | 1,165.7 | 1,940.7 | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 9,704.9 | $ | 10,338.9 | |||||||
9
| MALLINCKRODT PLC | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (unaudited, in millions) | |||||||||||
| Nine Months Ended | |||||||||||
| September 25, 2020 | September 27, 2019 | ||||||||||
| Cash Flows From Operating Activities: | |||||||||||
| Net (loss) income | $ | (791.7) | $ | 160.6 | |||||||
| Adjustments to reconcile net cash from operating activities: | |||||||||||
| Depreciation and amortization | 675.5 | 723.5 | |||||||||
| Share-based compensation | 17.6 | 30.6 | |||||||||
| Deferred income taxes | 304.0 | (301.9) | |||||||||
| Non-cash impairment charges | 63.5 | 113.5 | |||||||||
| Gains on divestiture | (10.1) | — | |||||||||
| Gain on repurchase of debt | — | (98.6) | |||||||||
| Other non-cash items | (21.6) | (31.7) | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable, net | 61.1 | 68.7 | |||||||||
| Inventories | (43.9) | (32.0) | |||||||||
| Accounts payable | (52.4) | (27.8) | |||||||||
| Income taxes | (431.2) | 17.2 | |||||||||
| Medicaid lawsuit | 640.2 | — | |||||||||
| Other | (116.3) | (88.0) | |||||||||
| Net cash from operating activities | 294.7 | 534.1 | |||||||||
| Cash Flows From Investing Activities: | |||||||||||
| Capital expenditures | (42.4) | (108.7) | |||||||||
| Proceeds from divestiture, net of cash | (0.7) | — | |||||||||
| Other | 6.7 | 13.7 | |||||||||
| Net cash from investing activities | (36.4) | (95.0) | |||||||||
| Cash Flows From Financing Activities: | |||||||||||
| Issuance of external debt | — | 695.0 | |||||||||
| Repayment of external debt | (134.6) | (940.1) | |||||||||
| Debt financing costs | (9.3) | — | |||||||||
| Repurchase of shares | (0.4) | (2.5) | |||||||||
| Other | (36.3) | (17.6) | |||||||||
| Net cash from financing activities | (180.6) | (265.2) | |||||||||
| Effect of currency rate changes on cash | 0.2 | 0.5 | |||||||||
| Net change in cash, cash equivalents and restricted cash, including cash classified within assets held for sale | 77.9 | 174.4 | |||||||||
| Less: Net change in cash classified within assets held for sale | — | (15.1) | |||||||||
| Net change in cash, cash equivalents and restricted cash | 77.9 | 159.3 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 822.6 | 367.5 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 900.5 | $ | 526.8 | |||||||
| Cash and cash equivalents at end of period | $ | 844.2 | $ | 498.8 | |||||||
| Restricted cash included in prepaid expenses and other assets at end of period | 20.2 | — | |||||||||
| Restricted cash included in other long-term assets at end of period | 36.1 | 28.0 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 900.5 | $ | 526.8 | |||||||
10