EX-99.1 2 mnkexhibit991q12021.htm EX-99.1 Document

Exhibit 99.1

MALLINCKRODT PLC
(DEBTOR-IN-POSSESSION)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions, except per share data)
Three Months Ended
March 26,
2021		Percent of
Net sales		March 27,
2020		Percent of
Net sales
Net sales
$558.0 100.0 %$665.8 100.0 %
Cost of sales307.6 55.1 382.0 57.4 
Gross profit250.4 44.9 283.8 42.6 
Selling, general and administrative expenses136.0 24.4 231.1 34.7 
Research and development expenses66.2 11.9 77.4 11.6 
Restructuring charges, net0.4 0.1 (1.8)(0.3)
Non-restructuring impairment charges64.5 11.6 — — 
Losses on divestiture0.8 0.1 0.2 — 
Opioid-related litigation settlement gain— — (16.8)(2.5)
Operating loss(17.5)(3.1)(6.3)(0.9)
Interest expense(59.6)(10.7)(74.5)(11.2)
Interest income1.9 0.3 3.5 0.5 
Other income, net8.1 1.5 1.7 0.3 
Reorganization items, net(93.5)(16.8)— — 
Loss from continuing operations before income taxes(160.6)(28.8)(75.6)(11.4)
Income tax benefit(16.4)(2.9)(18.9)(2.8)
Loss from continuing operations(144.2)(25.8)(56.7)(8.5)
Income from discontinued operations, net of income taxes0.3 0.1 6.5 1.0 
Net loss$(143.9)(25.8)%$(50.2)(7.5)%
Basic loss per share:
Loss from continuing operations$(1.70)$(0.67)
Income from discontinued operations— 0.08 
Net loss$(1.70)$(0.60)
Diluted loss per share:
Loss from continuing operations$(1.70)$(0.67)
Income from discontinued operations— 0.08 
Net loss$(1.70)$(0.60)
Weighted-average number of shares outstanding
Basic weighted-average shares outstanding84.684.2
Diluted weighted-average shares outstanding84.684.2




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MALLINCKRODT PLC
(DEBTOR-IN-POSSESSION)
CONSOLIDATED ADJUSTED EBITDA
(unaudited, in millions)
Three Months Ended
March 26, 2021March 27, 2020
Gross ProfitSG&AR&DAdjusted EBITDAGross ProfitSG&AR&DAdjusted EBITDA
Net loss$250.4 $136.0 $66.2 $(143.9)$283.8 $231.1 $77.4 $(50.2)
Adjustments:
Interest expense, net— — — 57.7 — — — 71.0 
Income taxes— — — (16.4)— — — (18.9)
Depreciation17.9 (4.8)(1.6)24.3 18.4 (5.3)(1.8)25.5 
Amortization144.4 (0.9)— 145.3 196.7 (0.9)— 197.6 
Restructuring charges, net— — — 0.4 — — — (1.8)
Non-restructuring impairment charge— — — 64.5 — — — — 
Income from discontinued operations— — — (0.3)— — — (6.5)
Change in contingent consideration fair value— 10.8 — (10.8)— 0.8 — (0.8)
Significant legal and environmental charges— — — — — (22.5)— 5.7 
Losses on divestiture— — — 0.8 — — — 0.2 
Separation costs— (0.6)— 0.6 — (21.3)— 21.3 
Unrealized gain on equity investment— — — (6.9)— — — (5.4)
Reorganization items, net— — — 93.5 — — — — 
Share-based compensation 0.2 (2.8)(0.6)3.6 0.3 (5.4)(1.0)6.7 
As adjusted:$412.9 $137.7 $64.0 $212.4 $499.2 $176.5 $74.6 $244.4 




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MALLINCKRODT PLC
(DEBTOR-IN-POSSESSION)
SEGMENT OPERATING INCOME (1)
(unaudited, in millions)
Three Months Ended
March 26,
2021		March 27,
2020
Specialty Brands$212.1 $220.5 
Specialty Generics31.7 63.2 
Segment operating income243.8 283.7 
Unallocated amounts:
Corporate and unallocated expenses (2)
(22.6)(57.5)
Depreciation and amortization(169.6)(223.1)
Share-based compensation(3.6)(6.7)
Restructuring charges, net(0.4)1.8 
Non-restructuring impairment charges(64.5)— 
Separation costs(0.6)(21.3)
Opioid-related litigation settlement gain— 16.8 
Operating loss$(17.5)$(6.3)
(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.
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MALLINCKRODT PLC
(DEBTOR-IN-POSSESSION)
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH
(unaudited, in millions)
Three Months Ended
March 26,
2021		March 27,
2020		Percent
change		Currency impactConstant-currency growth
Specialty Brands$408.4 $490.6 (16.8)%0.4 %(17.2)%
Specialty Generics149.6 175.2 (14.6)0.1 (14.7)
Net sales$558.0 $665.8 (16.2)%0.3 %(16.5)%



MALLINCKRODT PLC
(DEBTOR-IN-POSSESSION)
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH
(unaudited, in millions)
Three Months Ended
March 26,
2021		March 27,
2020		Percent
change		Currency impactConstant-currency growth
Specialty Brands
Acthar Gel $129.0 $167.6 (23.0)%— %(23.0)%
INOmax134.0 141.7 (5.4)0.2 (5.6)
Ofirmev12.8 74.9 (82.9)— (82.9)
Therakos66.8 63.7 4.9 2.4 2.5 
Amitiza61.4 41.1 49.4 — 49.4 
Other4.4 1.6 175.0 — 175.0 
Specialty Brands Total$408.4 $490.6 (16.8)0.4 (17.2)
Specialty Generics
Hydrocodone (API) and hydrocodone-containing tablets$23.3 $26.5 (12.1)— (12.1)
Oxycodone (API) and oxycodone-containing tablets17.2 16.9 1.8 — 1.8 
Acetaminophen (API)45.5 44.1 3.2 — 3.2 
Other controlled substances58.1 83.6 (30.5)0.2 (30.7)
Other5.5 4.1 34.1 — 34.1 
Specialty Generics Total$149.6 $175.2 (14.6)0.1 (14.7)




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MALLINCKRODT PLC
(DEBTOR-IN-POSSESSION)
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
March 26,
2021		December 25,
2020
Assets
Current Assets:
Cash and cash equivalents$1,077.9 $1,070.6 
Accounts receivable, net477.4 538.8 
Inventories363.4 344.9 
Prepaid expenses and other current assets367.9 350.0 
Total current assets2,286.6 2,304.3 
Property, plant and equipment, net794.4 833.1 
Intangible assets, net5,974.7 6,184.5 
Other assets380.5 393.5 
Total Assets$9,436.2 $9,715.4 
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term debt$1,701.7 $3,587.9 
Accounts payable98.4 93.3 
Accrued payroll and payroll-related costs80.4 79.4 
Accrued interest27.8 26.9 
Accrued and other current liabilities357.2 331.2 
Total current liabilities2,265.5 4,118.7 
Pension and postretirement benefits33.6 34.6 
Environmental liabilities59.0 59.8 
Deferred income taxes77.2 80.6 
Other income tax liabilities106.7 100.1 
Other liabilities101.1 109.8 
Liabilities subject to compromise5,914.2 4,192.6 
Total Liabilities8,557.3 8,696.2 
Shareholders' Equity:
Preferred shares— — 
Ordinary shares
18.8 18.8 
Ordinary shares held in treasury at cost(1,616.1)(1,616.1)
Additional paid-in capital5,591.1 5,587.6 
Retained deficit(3,105.4)(2,961.5)
Accumulated other comprehensive loss(9.5)(9.6)
Total Shareholders' Equity878.9 1,019.2 
Total Liabilities and Shareholders' Equity$9,436.2 $9,715.4 


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MALLINCKRODT PLC
(DEBTOR-IN-POSSESSION)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Three Months Ended
March 26,
2021		March 27,
2020
Cash Flows From Operating Activities:
Net loss$(143.9)$(50.2)
Adjustments to reconcile net cash from operating activities:
Depreciation and amortization169.6 223.1 
Share-based compensation3.6 6.7 
Deferred income taxes(3.4)5.5 
Non-cash impairment charges64.5 — 
Reorganization items, net15.7 — 
Other non-cash items(11.9)(19.4)
Changes in assets and liabilities:
Accounts receivable, net61.8 49.4 
Inventories(22.8)(18.4)
Accounts payable0.5 (22.9)
Income taxes(21.2)(34.9)
Other38.9 (85.2)
Net cash from operating activities151.4 53.7 
Cash Flows From Investing Activities:
Capital expenditures(20.9)(19.9)
Other(0.7)3.2 
Net cash from investing activities(21.6)(16.7)
Cash Flows From Financing Activities:
Repayment of external debt(118.9)(4.9)
Debt financing costs— (4.0)
Net cash from financing activities(118.9)(8.9)
Effect of currency rate changes on cash(0.4)(1.5)
Net change in cash, cash equivalents and restricted cash10.5 26.6 
Cash, cash equivalents and restricted cash at beginning of period1,127.0 822.6 
Cash, cash equivalents and restricted cash at end of period$1,137.5 $849.2 
Cash and cash equivalents at end of period$1,077.9 $808.0 
Restricted cash included in prepaid expenses and other assets at end of period23.4 5.4 
Restricted cash included in other long-term assets at end of period36.2 35.8 
Cash, cash equivalents and restricted cash at end of period$1,137.5 $849.2 
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