Exhibit 99.1
| | | | | | | | | | | | | | | | | |
| MALLINCKRODT PLC |
| (DEBTOR-IN-POSSESSION) |
| (IN EXAMINATION UNDER PART 10 OF THE IRISH COMPANIES ACT 2014) |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited, in millions, except per share data) |
| | | | | |
| Three Months Ended |
| April 1,
2022 | Percent of
Net sales | | March 26,
2021 | Percent of
Net sales |
| Net sales | $ | 490.9 | | 100.0 | % | | $ | 558.0 | | 100.0 | % |
| Cost of sales | 315.2 | | 64.2 | | | 307.6 | | 55.1 | |
| Gross profit | 175.7 | | 35.8 | | | 250.4 | | 44.9 | |
| Selling, general and administrative expenses | 152.5 | | 31.1 | | | 136.0 | | 24.4 | |
| Research and development expenses | 37.2 | | 7.6 | | | 66.2 | | 11.9 | |
| Restructuring charges, net | 6.8 | | 1.4 | | | 0.4 | | 0.1 | |
| Non-restructuring impairment charges | — | | — | | | 64.5 | | 11.6 | |
| Losses on divestiture | — | | — | | | 0.8 | | 0.1 | |
| | | | | |
| | | | | |
| Operating loss | (20.8) | | (4.2) | | | (17.5) | | (3.1) | |
| Interest expense | (58.2) | | (11.9) | | | (59.6) | | (10.7) | |
| Interest income | 0.4 | | 0.1 | | | 1.9 | | 0.3 | |
| Other (expense) income, net | (4.1) | | (0.8) | | | 8.1 | | 1.5 | |
| Reorganization items, net | (43.4) | | (8.8) | | | (93.5) | | (16.8) | |
| Loss from continuing operations before income taxes | (126.1) | | (25.7) | | | (160.6) | | (28.8) | |
| Income tax benefit | (5.9) | | (1.2) | | | (16.4) | | (2.9) | |
| Loss from continuing operations | (120.2) | | (24.5) | | | (144.2) | | (25.8) | |
| Income from discontinued operations, net of income taxes | 0.6 | | 0.1 | | | 0.3 | | 0.1 | |
| Net loss | $ | (119.6) | | (24.4) | % | | $ | (143.9) | | (25.8) | % |
| | | | | |
| Basic loss per share: | | | | | |
| Loss from continuing operations | $ | (1.42) | | | | $ | (1.70) | | |
| Income from discontinued operations | 0.01 | | | | — | | |
| Net loss | $ | (1.41) | | | | $ | (1.70) | | |
| Diluted loss per share: | | | | | |
| Loss from continuing operations | $ | (1.42) | | | | $ | (1.70) | | |
| Income from discontinued operations | 0.01 | | | | — | | |
| Net loss | $ | (1.41) | | | | $ | (1.70) | | |
| Weighted-average number of shares outstanding | | | | | |
| Basic | 84.7 | | | 84.6 | |
| Diluted | 84.7 | | | 84.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| MALLINCKRODT PLC |
| (DEBTOR-IN-POSSESSION) |
| (IN EXAMINATION UNDER PART 10 OF THE IRISH COMPANIES ACT 2014) |
| CONSOLIDATED ADJUSTED EBITDA |
| (unaudited, in millions) |
| | | | | | | | | |
| Three Months Ended |
| April 1, 2022 | | March 26, 2021 |
| Gross Profit | SG&A | R&D | Adjusted EBITDA | | Gross Profit | SG&A | R&D | Adjusted EBITDA |
| Net loss | $ | 175.7 | | $ | 152.5 | | $ | 37.2 | | $ | (119.6) | | | $ | 250.4 | | $ | 136.0 | | $ | 66.2 | | $ | (143.9) | |
| Adjustments: | | | | | | | | | |
| Interest expense, net | — | | — | | — | | 57.8 | | | — | | — | | — | | 57.7 | |
| Income taxes | — | | — | | — | | (5.9) | | | — | | — | | — | | (16.4) | |
| Depreciation | 18.1 | | (3.1) | | (0.9) | | 22.1 | | | 17.9 | | (4.8) | | (1.6) | | 24.3 | |
| Amortization | 154.2 | | (0.9) | | — | | 155.1 | | | 144.4 | | (0.9) | | — | | 145.3 | |
| Restructuring charges, net | — | | — | | — | | 6.8 | | | — | | — | | — | | 0.4 | |
| Non-restructuring impairment charge | — | | — | | — | | — | | | — | | — | | — | | 64.5 | |
| Income from discontinued operations | — | | — | | — | | (0.6) | | | — | | — | | — | | (0.3) | |
| Change in contingent consideration fair value | — | | 0.1 | | — | | (0.1) | | | — | | 10.8 | | — | | (10.8) | |
| Significant legal and environmental charges | — | | (11.1) | | — | | 11.1 | | | — | | — | | — | | — | |
| Losses on divestiture | — | | — | | — | | — | | | — | | — | | — | | 0.8 | |
Separation costs (1) | — | | (2.0) | | — | | 2.0 | | | — | | (0.6) | | — | | 0.6 | |
| | | | | | | | | |
| Unrealized loss (gain) on equity investment | — | | — | | — | | 3.7 | | | — | | — | | — | | (6.9) | |
| | | | | | | | | |
| Reorganization items, net | — | | — | | — | | 43.4 | | | — | | — | | — | | 93.5 | |
| Share-based compensation | 0.1 | | (1.0) | | (0.1) | | 1.2 | | | 0.2 | | (2.8) | | (0.6) | | 3.6 | |
| As adjusted: | $ | 348.1 | | $ | 134.5 | | $ | 36.2 | | $ | 177.0 | | | $ | 412.9 | | $ | 137.7 | | $ | 64.0 | | $ | 212.4 | |
| | | | | | | | | |
(1) Represents costs included in selling, general and administrative (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 |
| (DEBTOR-IN-POSSESSION) |
| (IN EXAMINATION UNDER PART 10 OF THE IRISH COMPANIES ACT 2014) |
| SEGMENT OPERATING INCOME |
| (unaudited, in millions) |
| | | |
| Three Months Ended |
| April 1,
2022 | | March 26,
2021 |
| Specialty Brands | $ | 164.8 | | | $ | 212.1 | |
| Specialty Generics | 34.4 | | | 31.7 | |
| Segment operating income | 199.2 | | | 243.8 | |
| Unallocated amounts: | | | |
Corporate and unallocated expenses (1) | (32.8) | | | (22.6) | |
| Depreciation and amortization | (177.2) | | | (169.6) | |
| Share-based compensation | (1.2) | | | (3.6) | |
| Restructuring charges, net | (6.8) | | | (0.4) | |
| Non-restructuring impairment charge | — | | | (64.5) | |
Separation costs (2) | (2.0) | | | (0.6) | |
| | | |
| | | |
| | | |
| Operating loss | $ | (20.8) | | | $ | (17.5) | |
(1)Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments.
(2)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 |
| (DEBTOR-IN-POSSESSION) |
| (IN EXAMINATION UNDER PART 10 OF THE IRISH COMPANIES ACT 2014) |
| SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH |
| (unaudited, in millions) |
| | | | | | | | | |
| Three Months Ended | | | | | | |
| April 1,
2022 | | March 26,
2021 | | Percent
change | | Currency impact | | Constant-currency growth |
| Specialty Brands | $ | 339.4 | | | $ | 408.4 | | | (16.9) | % | | (0.3) | % | | (16.6) | % |
| Specialty Generics | 151.5 | | | 149.6 | | | 1.3 | | | — | | | 1.3 | |
| Net sales | $ | 490.9 | | | $ | 558.0 | | | (12.0) | % | | (0.2) | % | | (11.8) | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| MALLINCKRODT PLC |
| (DEBTOR-IN-POSSESSION) |
| (IN EXAMINATION UNDER PART 10 OF THE IRISH COMPANIES ACT 2014) |
| SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH |
| (unaudited, in millions) |
| | | | | | | | | |
| Three Months Ended | | | | | | |
| April 1,
2022 | | March 26,
2021 | | Percent
change | | Currency impact | | Constant-currency growth |
| Specialty Brands | | | | | | | | | |
| Acthar Gel | $ | 127.7 | | | $ | 129.0 | | | (1.0) | % | | — | % | | (1.0) | % |
| INOmax | 99.0 | | | 134.0 | | | (26.1) | | | (0.1) | | | (26.0) | |
| Ofirmev | 2.6 | | | 12.8 | | | (79.7) | | | — | | | (79.7) | |
| Therakos | 59.9 | | | 66.8 | | | (10.3) | | | (1.8) | | | (8.5) | |
| Amitiza | 47.7 | | | 61.4 | | | (22.3) | | | — | | | (22.3) | |
| Other | 2.5 | | | 4.4 | | | (43.2) | | | — | | | (43.2) | |
| Specialty Brands Total | 339.4 | | | 408.4 | | | (16.9) | | | (0.3) | | | (16.6) | |
| | | | | | | | | |
| Specialty Generics | | | | | | | | | |
| Hydrocodone (API) and hydrocodone-containing tablets | 19.0 | | | 23.3 | | | (18.5) | | | — | | | (18.5) | |
| Oxycodone (API) and oxycodone-containing tablets | 16.6 | | | 17.2 | | | (3.5) | | | — | | | (3.5) | |
| Acetaminophen (API) | 46.3 | | | 45.5 | | | 1.8 | | | — | | | 1.8 | |
| Other controlled substances | 64.1 | | | 58.1 | | | 10.3 | | | — | | | 10.3 | |
| Other | 5.5 | | | 5.5 | | | — | | | — | | | — | |
| Specialty Generics Total | 151.5 | | | 149.6 | | | 1.3 | | | — | | | 1.3 | |
| Net sales | $ | 490.9 | | | $ | 558.0 | | | (12.0) | % | | (0.2) | % | | (11.8) | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | |
| MALLINCKRODT PLC |
| (DEBTOR-IN-POSSESSION) |
| (IN EXAMINATION UNDER PART 10 OF THE IRISH COMPANIES ACT 2014) |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (unaudited, in millions) |
| | | |
| April 1,
2022 | | December 31,
2021 |
| Assets | | | |
| Current Assets: | | | |
| Cash and cash equivalents | $ | 1,365.3 | | | $ | 1,345.0 | |
| Accounts receivable, net | 364.4 | | | 439.1 | |
| Inventories | 371.5 | | | 347.2 | |
| Prepaid expenses and other current assets | 179.4 | | | 178.3 | |
| | | |
| Total current assets | 2,280.6 | | | 2,309.6 | |
| Property, plant and equipment, net | 758.5 | | | 776.0 | |
| Intangible assets, net | 5,293.4 | | | 5,448.4 | |
| Other assets | 372.4 | | | 382.3 | |
| Total Assets | $ | 8,704.9 | | | $ | 8,916.3 | |
| | | |
| Liabilities and Shareholders' Equity | | | |
| Current Liabilities: | | | |
| Current maturities of long-term debt | $ | 1,389.5 | | | $ | 1,388.9 | |
| Accounts payable | 107.5 | | | 123.0 | |
| Accrued payroll and payroll-related costs | 63.0 | | | 84.6 | |
| Accrued interest | 17.4 | | | 17.0 | |
| | | |
| Accrued and other current liabilities | 269.9 | | | 328.7 | |
| | | |
| Total current liabilities | 1,847.3 | | | 1,942.2 | |
| | | |
| | | |
| Pension and postretirement benefits | 29.5 | | | 30.1 | |
| Environmental liabilities | 37.7 | | | 43.0 | |
| Deferred income taxes | 20.1 | | | 20.9 | |
| Other income tax liabilities | 77.5 | | | 83.2 | |
| Other liabilities | 64.6 | | | 85.8 | |
| Liabilities subject to compromise | 6,433.2 | | | 6,397.7 | |
| Total Liabilities | 8,509.9 | | | 8,602.9 | |
| Shareholders' Equity: | | | |
| Preferred shares | — | | | — | |
| Ordinary shares | 18.9 | | | 18.9 | |
| Ordinary shares held in treasury at cost | (1,616.1) | | | (1,616.1) | |
| Additional paid-in capital | 5,599.0 | | | 5,597.8 | |
| Retained deficit | (3,798.5) | | | (3,678.9) | |
| Accumulated other comprehensive loss | (8.3) | | | (8.3) | |
| Total Shareholders' Equity | 195.0 | | | 313.4 | |
| Total Liabilities and Shareholders' Equity | $ | 8,704.9 | | | $ | 8,916.3 | |
| | | | | | | | | | | |
| MALLINCKRODT PLC |
| (DEBTOR-IN-POSSESSION) |
| (IN EXAMINATION UNDER PART 10 OF THE IRISH COMPANIES ACT 2014) |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (unaudited, in millions) |
| | | |
| Three Months Ended |
| April 1,
2022 | | March 26,
2021 |
| Cash Flows From Operating Activities: | | | |
| Net loss | $ | (119.6) | | | $ | (143.9) | |
| Adjustments to reconcile net cash from operating activities: | | | |
| Depreciation and amortization | 177.2 | | | 169.6 | |
| Share-based compensation | 1.2 | | | 3.6 | |
| Deferred income taxes | (0.9) | | | (3.4) | |
| Non-cash impairment charges | — | | | 64.5 | |
| | | |
| | | |
| | | |
| Reorganization items, net | 2.9 | | | 15.7 | |
| Other non-cash items | 12.3 | | | (11.9) | |
| Changes in assets and liabilities: | | | |
| Accounts receivable, net | 73.8 | | | 61.8 | |
| Inventories | (27.0) | | | (22.8) | |
| Accounts payable | 0.4 | | | 0.5 | |
| Income taxes | (7.8) | | | (21.2) | |
| | | |
| | | |
| Other | (63.3) | | | 38.9 | |
| Net cash from operating activities | 49.2 | | | 151.4 | |
| Cash Flows From Investing Activities: | | | |
| Capital expenditures | (23.6) | | | (20.9) | |
| | | |
| | | |
| Other | 0.2 | | | (0.7) | |
| Net cash from investing activities | (23.4) | | | (21.6) | |
| Cash Flows From Financing Activities: | | | |
| | | |
| Repayment of external debt | (4.6) | | | (118.9) | |
| | | |
| | | |
| | | |
| Net cash from financing activities | (4.6) | | | (118.9) | |
| Effect of currency rate changes on cash | (0.7) | | | (0.4) | |
| Net change in cash, cash equivalents and restricted cash | 20.5 | | | 10.5 | |
| Cash, cash equivalents and restricted cash at beginning of period | 1,405.2 | | | 1,127.0 | |
| Cash, cash equivalents and restricted cash at end of period | $ | 1,425.7 | | | $ | 1,137.5 | |
| | | |
| Cash and cash equivalents at end of period | $ | 1,365.3 | | | $ | 1,077.9 | |
| Restricted cash included in prepaid expenses and other current assets at end of period | 24.0 | | | 23.4 | |
| Restricted cash included in other long-term assets at end of period | 36.4 | | | 36.2 | |
| Cash, cash equivalents and restricted cash at end of period | $ | 1,425.7 | | | $ | 1,137.5 | |
