Ireland | 001-35803 | 98-1088325 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(Title of each class) | (Trading Symbol(s)) | (Name of each exchange on which registered) |
Ordinary shares, par value $0.20 per share | MNK | New York Stock Exchange |
Exhibit No. | Exhibit | |
99.1 | ||
MALLINCKRODT PUBLIC LIMITED COMPANY | ||||
(registrant) | ||||
Date: | August 6, 2019 | By: | /s/ Bryan M. Reasons | |
Bryan M. Reasons | ||||
Executive Vice President and Chief Financial Officer (principal financial officer) |
• | Net sales of $823.3 million, led by continued strong growth across its hospital portfolio and AMITIZA® (lubiprostone), and continued growth in the Specialty Generics segment |
• | Diluted loss per share from continuing operations of $0.01; adjusted diluted earnings per share (EPS) of $2.53 |
• | Strong operating cash flows of $302.9 million and execution of capital allocation strategy led to reduction of net debt to $5.35 billion, the lowest level since 2015 |
• | Specialty Generics spin-off plans suspended based on current market conditions; company remains committed to becoming an innovation-driven Specialty Brands business |
• | Phase 3 topline results for StrataGraft® regenerative tissue and terlipressin development products expected in next three months |
• | Updated full year 2019 guidance ranges; adjusted diluted EPS raised to $8.40 to $8.70; net sales for both Specialty Brands and Specialty Generics revised to reflect recast segment mix and market uncertainty associated with Acthar® Gel |
• | Acthar Gel net sales were $266.4 million, a 9.1% decrease, driven primarily by continued reimbursement challenges impacting new and returning patients, and continued payer scrutiny on overall specialty pharmaceutical spending. |
• | INOMAX® (nitric oxide) gas, for inhalation, net sales were $139.7 million, up 6.6% due to continued, consistent demand, and multi-year contract renewals. |
• | OFIRMEV® (acetaminophen) injection net sales were $90.5 million, an increase of 5.7%, benefiting from continued strong demand partially offset by typical quarter-to-quarter order variability. |
• | Therakos® immunology platform net sales were $60.9 million, an increase of 7.2%, or 9.1% on a constant-currency basis, primarily on growth in the U.S. |
• | AMITZA net sales were $52.0 million, up 8.3% due to continued strong utilization in Japan, partially offset by a more competitive landscape in the U.S. |
Metric (excluding foreign currency impact) | 2019 Guidance (update) |
Total net sales for Specialty Brands segment | -5% to 1% |
Total net sales for Specialty Generics segment | 2% to 5% |
Net interest expense | $290 million to $320 million |
Adjusted effective tax rate | 15% to 17% |
Adjusted diluted EPS | $8.40 to $8.70 |
• | At the Mallinckrodt website: http://www.mallinckrodt.com/investors. |
• | By telephone: For both listen-only participants and those who wish to take part in the question-and-answer portion of the call, the telephone dial-in number in the U.S. is (877) 359-9508. For participants outside the U.S., the dial-in number is (224) 357-2393. Callers will need to provide the Conference ID of 1778267. |
• | Through an audio replay: A replay of the call will be available beginning at 11:30 a.m. Eastern Time on Tuesday, Aug 6, 2019, and ending at 11:59 p.m. Eastern Time on Tuesday, Aug 21, 2019. Dial-in numbers for U.S.-based participants are (855) 859-2056 or (800) 585-8367. Participants outside the U.S. should use the replay dial-in number of (404) 537-3406. All callers will be required to provide the Conference ID of 1778267. |
MALLINCKRODT PLC | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(unaudited, in millions, except per share data) | |||||||||||
Three Months Ended | |||||||||||
June 28, 2019 | Percent of Net sales | June 29, 2018 | Percent of Net sales | ||||||||
Net sales | $ | 823.3 | 100.0 | % | $ | 825.5 | 100.0 | % | |||
Cost of sales | 434.4 | 52.8 | 431.5 | 52.3 | |||||||
Gross profit | 388.9 | 47.2 | 394.0 | 47.7 | |||||||
Selling, general and administrative expenses | 225.9 | 27.4 | 189.9 | 23.0 | |||||||
Research and development expenses | 79.6 | 9.7 | 92.6 | 11.2 | |||||||
Restructuring charges, net | (0.2 | ) | — | 58.8 | 7.1 | ||||||
Non-restructuring impairment charge | 113.5 | 13.8 | — | — | |||||||
Operating (loss) income | (29.9 | ) | (3.6 | ) | 52.7 | 6.4 | |||||
Interest expense | (71.5 | ) | (8.7 | ) | (95.1 | ) | (11.5 | ) | |||
Interest income | 2.2 | 0.3 | 1.4 | 0.2 | |||||||
Other income (expense), net | 74.4 | 9.0 | (0.2 | ) | — | ||||||
Loss from continuing operations before income taxes | (24.8 | ) | (3.0 | ) | (41.2 | ) | (5.0 | ) | |||
Income tax benefit | (24.3 | ) | (3.0 | ) | (44.4 | ) | (5.4 | ) | |||
(Loss) income from continuing operations | (0.5 | ) | (0.1 | ) | 3.2 | 0.4 | |||||
Income from discontinued operations, net of income taxes | 7.3 | 0.9 | 12.4 | 1.5 | |||||||
Net income | $ | 6.8 | 0.8 | % | $ | 15.6 | 1.9 | % | |||
Basic earnings per share: | |||||||||||
(Loss) income from continuing operations | $ | (0.01 | ) | $ | 0.04 | ||||||
Income from discontinued operations | 0.09 | 0.15 | |||||||||
Net income | $ | 0.08 | $ | 0.19 | |||||||
Basic weighted-average shares outstanding | 83.8 | 83.2 | |||||||||
Diluted earnings per share: | |||||||||||
(Loss) income from continuing operations | $ | (0.01 | ) | $ | 0.04 | ||||||
Income from discontinued operations | 0.09 | 0.15 | |||||||||
Net income | $ | 0.08 | $ | 0.19 | |||||||
Diluted weighted-average shares outstanding | 83.8 | 83.5 |
MALLINCKRODT PLC | |||||||||||||||||||||||||||
NON-GAAP MEASURES | |||||||||||||||||||||||||||
(unaudited, in millions except per share data) | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
June 28, 2019 | June 29, 2018 | ||||||||||||||||||||||||||
Gross profit | SG&A | Net income | Diluted net income per share (1) | Gross profit | SG&A | Net income | Diluted net income per share | ||||||||||||||||||||
GAAP | $ | 388.9 | $ | 225.9 | $ | 6.8 | $ | 0.08 | $ | 394.0 | $ | 189.9 | $ | 15.6 | $ | 0.19 | |||||||||||
Adjustments: | |||||||||||||||||||||||||||
Intangible asset amortization | 215.0 | (1.6 | ) | 216.6 | 2.58 | 182.6 | (1.7 | ) | 184.3 | 2.21 | |||||||||||||||||
Non-restructuring impairment charge (2) | — | — | 113.5 | 1.35 | — | — | — | — | |||||||||||||||||||
Restructuring and related charges, net | — | — | (0.2 | ) | — | — | — | 58.8 | 0.70 | ||||||||||||||||||
Inventory step-up expense | — | — | — | — | 31.5 | — | 31.5 | 0.38 | |||||||||||||||||||
Income from discontinued operations | — | — | (7.3 | ) | (0.09 | ) | — | — | (12.4 | ) | (0.15 | ) | |||||||||||||||
Change in contingent consideration fair value | — | 3.2 | (3.2 | ) | (0.04 | ) | — | 27.5 | (27.5 | ) | (0.33 | ) | |||||||||||||||
Acquisition-related expenses | — | — | — | — | — | 0.1 | (0.1 | ) | — | ||||||||||||||||||
Gain on repurchase of debt | — | — | (65.0 | ) | (0.77 | ) | — | — | — | — | |||||||||||||||||
Write off of unamortized debt discount and fees | — | — | 2.7 | 0.03 | — | — | — | — | |||||||||||||||||||
Separation costs | — | (18.9 | ) | 18.9 | 0.22 | — | — | — | — | ||||||||||||||||||
Legal entity and intercompany financing reorganization | — | — | 3.0 | 0.04 | — | — | — | — | |||||||||||||||||||
Income taxes (3) | — | — | (72.8 | ) | (0.87 | ) | — | — | (70.0 | ) | (0.84 | ) | |||||||||||||||
As adjusted | $ | 603.9 | $ | 208.6 | $ | 213.0 | $ | 2.53 | $ | 608.1 | $ | 215.8 | $ | 180.2 | $ | 2.16 | |||||||||||
Percent of net sales | 73.4 | % | 25.3 | % | 25.9 | % | 73.7 | % | 26.1 | % | 21.8 | % | |||||||||||||||
(1) | In periods where the Company reports a net loss from continuing operations, potential ordinary shares outstanding are excluded from the calculation of diluted earnings per share, prepared in accordance with GAAP, as they would be anti-dilutive. These potentially dilutive shares are included in the calculation of adjusted diluted earnings per share when dilutive. As a result, the adjusted diluted earnings per share utilized a weighted average share count of 84.1 shares for the three months ended June 28, 2019. |
(2) | Represents in-process research and development ("IPR&D") intangible asset impairment of $113.5 million related to stannsoporfin. |
(3) | Includes tax effects of above adjustments (unless otherwise separately stated), changes in related uncertain tax positions, as well as certain installment sale transactions and other intercompany transactions. |
MALLINCKRODT PLC | ||||||||||||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH | ||||||||||||||||
(unaudited, in millions) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
June 28, 2019 | June 29, 2018 | Percent change | Currency impact | Constant-currency growth | ||||||||||||
Specialty Brands | $ | 627.8 | $ | 631.7 | (0.6 | )% | (0.3 | )% | (0.3 | )% | ||||||
Specialty Generics (1) | 195.5 | 193.8 | 0.9 | (0.1 | ) | 1.0 | ||||||||||
Net sales | $ | 823.3 | $ | 825.5 | (0.3 | )% | (0.2 | )% | (0.1 | )% | ||||||
(1) | Includes net sales from an ongoing, post-divestiture supply agreement with the acquirer of the contrast media and delivery systems ("CMDS") business. |
MALLINCKRODT PLC | ||||||||||||||||
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH | ||||||||||||||||
(unaudited, in millions) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
June 28, 2019 | June 29, 2018 | Percent change | Currency impact | Constant-currency growth | ||||||||||||
Specialty Brands | ||||||||||||||||
Acthar Gel | $ | 266.4 | $ | 293.2 | (9.1 | )% | — | % | (9.1 | )% | ||||||
Inomax | 139.7 | 131.0 | 6.6 | (0.1 | ) | 6.7 | ||||||||||
Ofirmev | 90.5 | 85.6 | 5.7 | — | 5.7 | |||||||||||
Therakos | 60.9 | 56.8 | 7.2 | (1.9 | ) | 9.1 | ||||||||||
Amitiza | 52.0 | 48.0 | 8.3 | — | 8.3 | |||||||||||
BioVectra | 13.9 | 11.3 | 23.0 | (4.6 | ) | 27.6 | ||||||||||
Other | 4.4 | 5.8 | (24.1 | ) | (1.9 | ) | (22.2 | ) | ||||||||
Specialty Brands Total | $ | 627.8 | $ | 631.7 | (0.6 | )% | (0.3 | )% | (0.3 | )% | ||||||
Specialty Generics | ||||||||||||||||
Hydrocodone (API) and hydrocodone-containing tablets | $ | 18.1 | $ | 16.9 | 7.1 | % | — | % | 7.1 | % | ||||||
Oxycodone (API) and oxycodone-containing tablets(1) | 19.6 | 13.1 | 49.6 | — | 49.6 | |||||||||||
Acetaminophen (API) (1) | 48.4 | 51.7 | (6.4 | ) | — | (6.4 | ) | |||||||||
Other controlled substances (1) | 98.6 | 99.5 | (0.9 | ) | (0.2 | ) | (0.7 | ) | ||||||||
Other (1) | 10.8 | 12.6 | (14.3 | ) | — | (14.3 | ) | |||||||||
Specialty Generics Total | $ | 195.5 | $ | 193.8 | 0.9 | % | (0.1 | )% | 1.0 | % |
(1) | Prior period amounts have been reclassified to conform to current period presentation. |
MALLINCKRODT PLC | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(unaudited, in millions, except per share data) | |||||||||||
Six Months Ended | |||||||||||
June 28, 2019 | Percent of Net sales | June 29, 2018 | Percent of Net sales | ||||||||
Net sales | $ | 1,613.9 | 100.0 | % | $ | 1,580.8 | 100.0 | % | |||
Cost of sales | 889.9 | 55.1 | 839.3 | 53.1 | |||||||
Gross profit | 724.0 | 44.9 | 741.5 | 46.9 | |||||||
Selling, general and administrative expenses | 456.1 | 28.3 | 401.1 | 25.4 | |||||||
Research and development expenses | 164.9 | 10.2 | 174.6 | 11.0 | |||||||
Restructuring charges, net | 4.0 | 0.2 | 87.0 | 5.5 | |||||||
Non-restructuring impairment charge | 113.5 | 7.0 | — | — | |||||||
Operating (loss) income | (14.5 | ) | (0.9 | ) | 78.8 | 5.0 | |||||
Interest expense | (154.2 | ) | (9.6 | ) | (186.5 | ) | (11.8 | ) | |||
Interest income | 3.7 | 0.2 | 4.6 | 0.3 | |||||||
Other income, net | 90.7 | 5.6 | 4.4 | 0.3 | |||||||
Loss from continuing operations before income taxes | (74.3 | ) | (4.6 | ) | (98.7 | ) | (6.2 | ) | |||
Income tax benefit | (229.0 | ) | (14.2 | ) | (81.0 | ) | (5.1 | ) | |||
Income (loss) from continuing operations | 154.7 | 9.6 | (17.7 | ) | (1.1 | ) | |||||
Income from discontinued operations, net of income taxes | 7.0 | 0.4 | 15.3 | 1.0 | |||||||
Net income (loss) | $ | 161.7 | 10.0 | % | $ | (2.4 | ) | (0.2 | )% | ||
Basic earnings per share: | |||||||||||
Income (loss) from continuing operations | $ | 1.85 | $ | (0.21 | ) | ||||||
Income from discontinued operations | 0.08 | 0.18 | |||||||||
Net income (loss) | $ | 1.93 | $ | (0.03 | ) | ||||||
Basic weighted-average shares outstanding | 83.7 | 84.7 | |||||||||
Diluted earnings per share: | |||||||||||
Income (loss) from continuing operations | $ | 1.84 | $ | (0.21 | ) | ||||||
Income from discontinued operations | 0.08 | 0.18 | |||||||||
Net income (loss) | $ | 1.92 | $ | (0.03 | ) | ||||||
Diluted weighted-average shares outstanding | 84.3 | 84.7 |
MALLINCKRODT PLC | |||||||||||||||||||||||||||
NON-GAAP MEASURES | |||||||||||||||||||||||||||
(unaudited, in millions except per share data) | |||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||
June 28, 2019 | June 29, 2018 | ||||||||||||||||||||||||||
Gross profit | SG&A | Net income | Diluted net income per share | Gross profit | SG&A | Net (loss) income | Diluted net (loss) income per share (3) | ||||||||||||||||||||
GAAP | $ | 724.0 | $ | 456.1 | $ | 161.7 | $ | 1.92 | $ | 741.5 | $ | 401.1 | $ | (2.4 | ) | $ | (0.03 | ) | |||||||||
Adjustments: | |||||||||||||||||||||||||||
Intangible asset amortization | 436.2 | (3.2 | ) | 439.4 | 5.21 | 358.9 | (3.4 | ) | 362.3 | 4.27 | |||||||||||||||||
Non-restructuring impairment charge (1) | — | — | 113.5 | 1.35 | — | — | — | — | |||||||||||||||||||
Restructuring and related charges, net | — | — | 4.0 | 0.05 | — | — | 87.0 | 1.02 | |||||||||||||||||||
Inventory step-up expense | 10.0 | — | 10.0 | 0.12 | 48.5 | — | 48.5 | 0.57 | |||||||||||||||||||
Income from discontinued operations | — | — | (7.0 | ) | (0.08 | ) | — | — | (15.3 | ) | (0.18 | ) | |||||||||||||||
Change in contingent consideration fair value | — | (2.3 | ) | 2.3 | 0.03 | — | 29.1 | (29.1 | ) | (0.34 | ) | ||||||||||||||||
Acquisition-related expenses | — | — | — | — | — | (3.1 | ) | 3.1 | 0.04 | ||||||||||||||||||
Gain on repurchase of debt | — | — | (79.9 | ) | (0.95 | ) | — | — | (6.5 | ) | (0.08 | ) | |||||||||||||||
Write off of unamortized debt discount and fees | — | — | 8.6 | 0.10 | — | — | — | — | |||||||||||||||||||
Separation costs | — | (30.6 | ) | 30.6 | 0.36 | — | — | — | — | ||||||||||||||||||
Legal entity and intercompany financing reorganization | — | — | (189.8 | ) | (2.25 | ) | — | — | — | — | |||||||||||||||||
Income taxes (2) | — | — | (116.0 | ) | (1.38 | ) | — | — | (127.5 | ) | (1.50 | ) | |||||||||||||||
As adjusted | $ | 1,170.2 | $ | 420.0 | $ | 377.4 | $ | 4.48 | $ | 1,148.9 | $ | 423.7 | $ | 320.1 | $ | 3.77 | |||||||||||
Percent of net sales | 72.5 | % | 26.0 | % | 23.4 | % | 72.7 | % | 26.8 | % | 20.2 | % | |||||||||||||||
(1) | Represents IPR&D intangible asset impairment of $113.5 million related to stannsoporfin. |
(2) | Includes tax effects of above adjustments (unless otherwise separately stated), changes in related uncertain tax positions, as well as certain installment sale transactions and other intercompany transactions. |
(3) | In periods where the Company reports a net loss from continuing operations, potential ordinary shares outstanding are excluded from the calculation of diluted earnings per share, prepared in accordance with GAAP, as they would be anti-dilutive. These potentially dilutive shares are included in the calculation of adjusted diluted earnings per share when dilutive. As a result, the adjusted diluted earnings per share utilized a weighted average share count of 84.9 shares for the six months ended June 29, 2018. |
MALLINCKRODT PLC | ||||||||||||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH | ||||||||||||||||
(unaudited, in millions) | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 28, 2019 | June 29, 2018 | Percent change | Currency impact | Constant-currency growth | ||||||||||||
Specialty Brands | $ | 1,232.0 | $ | 1,204.3 | 2.3 | % | (0.3 | )% | 2.6 | % | ||||||
Specialty Generics (1) | 381.9 | 376.5 | 1.4 | (0.1 | ) | 1.5 | ||||||||||
Net sales | $ | 1,613.9 | $ | 1,580.8 | 2.1 | % | (0.3 | )% | 2.4 | % | ||||||
(1) | Includes net sales from an ongoing, post-divestiture supply agreement with the acquirer of the CMDS business. |
MALLINCKRODT PLC | ||||||||||||||||
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH | ||||||||||||||||
(unaudited, in millions) | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 28, 2019 | June 29, 2018 | Percent change | Currency impact | Constant-currency growth | ||||||||||||
Specialty Brands | ||||||||||||||||
Acthar Gel | $ | 490.3 | $ | 537.0 | (8.7 | )% | — | % | (8.7 | )% | ||||||
Inomax | 290.8 | 270.8 | 7.4 | (0.1 | ) | 7.5 | ||||||||||
Ofirmev | 186.1 | 167.6 | 11.0 | — | 11.0 | |||||||||||
Therakos | 122.7 | 114.2 | 7.4 | (2.0 | ) | 9.4 | ||||||||||
Amitiza | 105.0 | 71.0 | 47.9 | — | 47.9 | |||||||||||
BioVectra | 26.3 | 21.8 | 20.6 | (5.0 | ) | 25.6 | ||||||||||
Other | 10.8 | 21.9 | (50.7 | ) | (1.0 | ) | (49.7 | ) | ||||||||
Specialty Brands Total | $ | 1,232.0 | $ | 1,204.3 | 2.3 | % | (0.3 | )% | 2.6 | % | ||||||
Specialty Generics | ||||||||||||||||
Hydrocodone (API) and hydrocodone-containing tablets | $ | 35.5 | $ | 30.8 | 15.3 | % | — | % | 15.3 | % | ||||||
Oxycodone (API) and oxycodone-containing tablets(1) | 36.1 | 29.7 | 21.5 | — | 21.5 | |||||||||||
Acetaminophen (API) (1) | 94.6 | 101.1 | (6.4 | ) | — | (6.4 | ) | |||||||||
Other controlled substances (1) | 192.8 | 188.5 | 2.3 | (0.2 | ) | 2.5 | ||||||||||
Other (1) | 22.9 | 26.4 | (13.3 | ) | — | (13.3 | ) | |||||||||
Specialty Generics Total | $ | 381.9 | $ | 376.5 | 1.4 | % | (0.1 | )% | 1.5 | % |
(1) | Prior period amounts have been reclassified to conform to current period presentation. |
MALLINCKRODT PLC | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited, in millions) | |||||||
June 28, 2019 | December 28, 2018 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 241.1 | $ | 348.9 | |||
Accounts receivable, net | 528.4 | 623.3 | |||||
Inventories | 337.4 | 322.3 | |||||
Prepaid expenses and other current assets | 112.5 | 132.7 | |||||
Total current assets | 1,219.4 | 1,427.2 | |||||
Property, plant and equipment, net | 994.2 | 982.0 | |||||
Intangible assets, net | 7,721.1 | 8,282.8 | |||||
Other assets | 287.0 | 185.3 | |||||
Total Assets | $ | 10,221.7 | $ | 10,877.3 | |||
Liabilities and Shareholders' Equity | |||||||
Current Liabilities: | |||||||
Current maturities of long-term debt | $ | 717.9 | $ | 22.4 | |||
Accounts payable | 148.6 | 147.5 | |||||
Accrued payroll and payroll-related costs | 79.8 | 124.0 | |||||
Accrued interest | 45.9 | 77.6 | |||||
Accrued and other current liabilities | 565.3 | 572.2 | |||||
Total current liabilities | 1,557.5 | 943.7 | |||||
Long-term debt | 4,823.0 | 6,069.2 | |||||
Pension and postretirement benefits | 59.5 | 60.5 | |||||
Environmental liabilities | 60.5 | 59.7 | |||||
Deferred income taxes | 53.4 | 324.3 | |||||
Other income tax liabilities | 262.5 | 228.0 | |||||
Other liabilities | 330.1 | 304.6 | |||||
Total Liabilities | 7,146.5 | 7,990.0 | |||||
Shareholders' Equity: | |||||||
Preferred shares | — | — | |||||
Ordinary shares | 18.7 | 18.5 | |||||
Ordinary shares held in treasury at cost | (1,617.4 | ) | (1,617.4 | ) | |||
Additional paid-in capital | 5,551.5 | 5,528.2 | |||||
Retained Deficit | (857.5 | ) | (1,017.7 | ) | |||
Accumulated other comprehensive loss | (20.1 | ) | (24.3 | ) | |||
Total Shareholders' Equity | 3,075.2 | 2,887.3 | |||||
Total Liabilities and Shareholders' Equity | $ | 10,221.7 | $ | 10,877.3 |
MALLINCKRODT PLC | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited, in millions) | |||||||
Six Months Ended | |||||||
June 28, 2019 | June 29, 2018 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income (loss) | $ | 161.7 | $ | (2.4 | ) | ||
Adjustments to reconcile net cash from operating activities: | |||||||
Depreciation and amortization | 488.6 | 397.1 | |||||
Share-based compensation | 22.8 | 16.4 | |||||
Deferred income taxes | (271.2 | ) | (101.0 | ) | |||
Non-restructuring impairment charge | 113.5 | — | |||||
Other non-cash items | (76.0 | ) | (19.0 | ) | |||
Changes in assets and liabilities, net of the effects of acquisitions: | |||||||
Accounts receivable, net | 95.5 | (21.8 | ) | ||||
Inventories | (23.8 | ) | 18.4 | ||||
Accounts payable | 7.2 | 2.1 | |||||
Income taxes | 22.4 | 7.4 | |||||
Other | (73.3 | ) | (35.4 | ) | |||
Net cash from operating activities | 467.4 | 261.8 | |||||
Cash Flows From Investing Activities: | |||||||
Capital expenditures | (77.6 | ) | (67.1 | ) | |||
Acquisitions, net of cash | — | (699.9 | ) | ||||
Proceeds from divestiture, net of cash | — | 298.3 | |||||
Other | 8.2 | 12.4 | |||||
Net cash from investing activities | (69.4 | ) | (456.3 | ) | |||
Cash Flows From Financing Activities: | |||||||
Issuance of external debt | 200.0 | 657.2 | |||||
Repayment of external debt | (685.9 | ) | (1,392.8 | ) | |||
Debt financing costs | — | (12.0 | ) | ||||
Proceeds from exercise of share options | 0.5 | — | |||||
Repurchase of shares | (2.5 | ) | (56.8 | ) | |||
Other | (18.5 | ) | (24.9 | ) | |||
Net cash from financing activities | (506.4 | ) | (829.3 | ) | |||
Effect of currency rate changes on cash | 0.8 | (1.2 | ) | ||||
Net change in cash, cash equivalents and restricted cash | (107.6 | ) | (1,025.0 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 367.5 | 1,279.1 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 259.9 | $ | 254.1 | |||
Cash and cash equivalents at end of period | $ | 241.1 | $ | 235.7 | |||
Restricted cash included in other assets at end of period | 18.8 | 18.4 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 259.9 | $ | 254.1 |