Net sales were $793.9M in the third quarter, down 10.5%, or 10.6% on a constant-currency basis.
-- Net sales of $793.9 million negatively impacted by 6 to 9 percentage points versus 14-week prior year period; H.P. Acthar® Gel also impacted by lower volumes; Hospital results solid; Specialty Generics segment consistent with guidance --
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| [07-November-2017] |
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STAINES-UPON-THAMES, United Kingdom, Nov. 7, 2017 /PRNewswire/ -- Mallinckrodt (NYSE: MNK), a leading global specialty pharmaceutical company, today reported results for the three-month and nine-month periods ended Sept. 29, 2017. Unless otherwise noted, all comparisons are to the prior year comparable three-month and nine-month periods ended Sept. 30, 2016. Net sales were $793.9 million in the third quarter, down 10.5%, or 10.6% on a constant-currency basis. Net sales growth rates were negatively impacted from an additional selling week in the comparable period in 2016. The company believes this negatively affected the reported growth rate by approximately 6 to 9 percentage points for the quarter for the company as a whole. GAAP gross profit was $400.6 million with gross profit as a percentage of net sales of 50.5%, compared with 55.3%, impacted by continued pricing and volume pressures within the Specialty Generics segment. Adjusted gross profit was $574.7 million, compared with $668.2 million. Adjusted gross profit as a percentage of net sales was 72.4% versus 75.3%. "In the quarter, after adjusting for the extra week comparison, we saw solid performance across the majority of our Specialty Brands products, most notably in the hospital business. Therakos® results were particularly strong, and INOMAX® and OFIRMEV® also performed well. Acthar growth slowed in the quarter, impacted by the extra week and lower volumes," said Mark Trudeau, Chief Executive Officer and President, Mallinckrodt. "We have continued to advance our business development activities, closing on the acquisition of stannsoporfin in the quarter and announcing more recently the inhaled xenon gas license agreement and planned acquisition of Ocera and its ammonia scavenger asset, a unique drug in development for treatment of hepatic encephalopathy, a serious and sometimes fatal condition." "These pipeline additions exemplify our investment into innovation, and illustrate how our growing portfolio of therapies has the potential not only to transform the company but also to change standards of care and give new hope to patients - many of whom have very few options," Trudeau concluded. GAAP selling, general and administrative (SG&A) expenses were $205.7 million, compared with $267.8 million, representing 25.9% and 30.2% of net sales, respectively. Adjusted SG&A expenses were $197.5 million or 24.9% of net sales, compared with $242.8 million or 27.4%, with the third quarter 2017 benefiting in part from one-time events, including adjustments to certain employee-related costs. Research and development expenses were $59.5 million or 7.5% of net sales, compared with $67.9 million or 7.7%. Income tax benefit was $31.2 million versus $56.4 million, resulting in GAAP effective tax rates of negative 94.3% and 105.2%, respectively. Income tax benefit in the third quarter includes a one-time expense of $36.1 million from commencing an internal legal entity reorganization. The adjusted effective tax rate was 17.0% compared with 15.7%. Upon completing the internal legal entity reorganization in the fourth quarter 2017, the company expects to record a one-time reduction to deferred income taxes in excess of $800 million, and will recognize a net tax benefit of an equal amount. The deferred income tax reduction will primarily decrease the interest-bearing deferred tax liabilities by at least $650 million. GAAP diluted earnings per share results from continuing operations were $0.66 in the third quarter compared with $1.01. This reduction reflects continued weakness in the Specialty Generics business impacting both net sales and gross profit. Adjusted diluted earnings per share were $1.97 versus $2.04. Nine-Month Fiscal 2017 Results On a GAAP basis, income from continuing operations was $163.8 million, compared with $385.2 million. Diluted earnings per share from continuing operations were $1.64 compared with $3.50, reflecting the impact of various transactions including legal settlements and defined benefit pension termination expenses, offset by a gain on the divesture of the Intrathecal Therapy business. Adjusted net income was $547.2 million, compared with $646.6 million. Adjusted diluted earnings per share were $5.48, compared with $5.88. BUSINESS SEGMENT RESULTS H.P. Acthar Gel net sales in the quarter were $308.7 million, a 5.6%2 decrease over $327.0 million impacted by comparison with the extra selling week in 2016 and volume decline. Although underlying prescribing behavior, or demand, remains solid, the company believes it is experiencing an issue more widely impacting some companies in the branded pharmaceutical industry where an increasing number of written prescriptions are going unfilled. The impact to Acthar increased at the end of the quarter and though actions are already being taken to address the issue, net sales of Acthar are expected to be down sequentially in the fourth quarter of 2017. INOMAX (nitric oxide) gas, for inhalation, generated net sales of $125.7 million, down 0.9%, or 1.0% on a constant-currency basis, over $126.9 million. OFIRMEV (acetaminophen) injection net sales were $75.4 million compared with $75.6 million, a decrease of 0.3%2. Net sales of the Therakos immunology platform were $55.3 million compared with $54.5 million, an increase of 1.5%, or 1.8% on a constant-currency basis, benefited by higher-than-usual sales of CELLEX® system devices as the company progresses its conversion of customers from the UVAR XTS® to the CELLEX systems. Specialty Generics Segment LIQUIDITY During the third quarter, the company continued share repurchases, buying 1.5 million ordinary shares for $56.7 million, bringing the total shares repurchased in the nine-month period to 9.5 million ordinary shares. The company's net debt repayments were $347.5 million for the nine months ended Sept. 29, 2017. Mallinckrodt's cash balance continued to increase to $371.8 million at the end of the third quarter, and its $900.0 million revolving credit facility is currently undrawn. CONFERENCE CALL AND WEBCAST
ABOUT MALLINCKRODT 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 Adjusted net income, adjusted gross profit and adjusted SG&A represent amounts 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. 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, restructuring and related charges, net; amortization and impairment charges; discontinued operations; acquisition-related expenses; changes in fair value of contingent consideration obligations; inventory step-up expenses; significant legal and environmental charges; pension settlement charges; recurrent cash tax payments to the IRS associated with internal installment sales transactions; and other items identified by the company. Adjusted diluted earnings per share represent adjusted net income divided by the number of diluted shares. The adjusted effective tax rate is calculated as the income tax effects on continuing and discontinued operations plus the income tax impact included in Mallinckrodt's reconciliation of net income, divided by income from continuing and discontinued operations plus the pre-tax, non-income, tax-related adjustments included in its reconciliation of adjusted net income (excluding dilutive share impact). The income tax impact item included in its reconciliation of adjusted net income primarily represents the tax impact of adjustments between net income and adjusted net income as well as deferred tax benefits recognized upon pay down of intercompany installment notes created by internal sales of acquired intangible assets. Net sales growth on a constant-currency basis measures the change in net sales between current- and prior-year periods using a constant currency, the exchange rate in effect during the applicable prior-year period. Free cash flow for the third quarter represents net cash provided by operating activities of $226.0 million less capital expenditures of $49.7 million, each as prepared in accordance with GAAP. Free cash flow for the nine-month period represents net cash provided by operating activities of $448.5 million less capital expenditures of $151.3 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 certain 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 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. CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING STATEMENTS 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: general economic conditions and conditions affecting the industries in which Mallinckrodt operates; the commercial success of Mallinckrodt's products; Mallinckrodt's ability to realize anticipated growth, synergies and cost savings from acquisitions; conditions that could necessitate an evaluation of Mallinckrodt's goodwill and/or intangible assets for possible impairment; changes in laws and regulations; Mallinckrodt's ability to successfully integrate acquisitions of operations, technology, products and businesses generally and to realize anticipated growth, synergies and cost savings; Mallinckrodt's and Mallinckrodt's licensers' ability to successfully develop or commercialize new products; Mallinckrodt's and Mallinckrodt's licensers' ability to protect intellectual property rights; Mallinckrodt's ability to receive procurement and production quotas granted by the U.S. Drug Enforcement Administration; customer concentration; Mallinckrodt's reliance on certain individual products that are material to its financial performance; cost containment efforts of customers, purchasing groups, third-party payers and governmental organizations; the reimbursement practices of a small number of public or private insurers; 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; limited clinical trial data for H.P. Acthar Gel; complex reporting and payment obligations under healthcare rebate programs; Mallinckrodt's ability to navigate price fluctuations; future changes to U.S. and foreign tax laws; Mallinckrodt's ability to achieve expected benefits from restructuring activities; complex manufacturing processes; competition; product liability losses and other litigation liability; ongoing governmental investigations; material health, safety and environmental liabilities; retention of key personnel; conducting business internationally; the effectiveness of information technology infrastructure; and cybersecurity and data leakage risks. These and other factors are identified and described in more detail in the "Risk Factors" section of Mallinckrodt's Annual Report on Form 10-K for the fiscal year ended September 30, 2016. 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. 1 Generally accepted accounting principles in the United States CONTACTS Investor Relations Daniel J. Speciale, CPA Media Meredith Fischer MALLINCKRODT PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in millions, except per share data)
Three Months Ended
September 29, Percent of September 30, Percent of
2017 Net sales 2016 Net sales
---- --------- ---- ---------
Net sales $793.9 100.0% $887.2 100.0%
Cost of sales 393.3 49.5 397.0 44.7
----- -----
Gross profit 400.6 50.5 490.2 55.3
Selling, general and
administrative
expenses 205.7 25.9 267.8 30.2
Research and
development expenses 59.5 7.5 67.9 7.7
Restructuring charges,
net 14.3 1.8 6.8 0.8
Loss on divestiture
and license 0.4 0.1 - -
--- ---
Operating income 120.7 15.2 147.7 16.6
Interest expense (92.6) (11.7) (94.0) (10.6)
Interest income 1.3 0.2 0.5 0.1
Other income
(expense), net 3.7 0.5 (0.6) (0.1)
--- ----
Income from continuing
operations before
income taxes 33.1 4.2 53.6 6.0
Income tax benefit (31.2) (3.9) (56.4) (6.4)
----- -----
Income from continuing
operations 64.3 8.1 110.0 12.4
(Loss) income from
discontinued
operations, net of
income taxes (0.6) (0.1) 5.0 0.6
---- ---
Net income $63.7 8.0% $115.0 13.0%
===== ======
Basic earnings per share:
Income from continuing
operations $0.66 $1.02
(Loss) income from
discontinued
operations (0.01) 0.05
Net income 0.66 1.07
Diluted earnings per share:
Income from continuing
operations $0.66 $1.01
(Loss) income from
discontinued
operations (0.01) 0.05
Net income 0.66 1.06
Weighted-average number of shares
outstanding:
Basic 96.7 107.6
Diluted 97.0 108.6
MALLINCKRODT PLC
NON-GAAP MEASURES
(unaudited, in millions except per share data)
Three Months Ended
September 29, 2017 September 30, 2016
Gross Selling, Net Diluted Gross Selling, Net Diluted
profit general income net profit general income net
and income and income
administrative per administrative per
expenses share expenses share
--- -----
GAAP $400.6 $205.7 $63.7 $0.66 $490.2 $267.8 $115.0 $1.06
Adjustments:
Intangible asset
amortization 170.9 (2.4) 173.2 1.79 174.0 (1.9) 175.9 1.62
Restructuring and related
charges, net (1) 0.5 (0.7) 15.5 0.16 0.6 (1.3) 8.7 0.08
Inventory step-up expense 2.7 - 2.7 0.03 3.4 - 3.4 0.03
Loss (Income) from
discontinued operations - - 0.6 0.01 - - (5.0) (0.05)
Change in contingent
consideration fair value - (3.9) 3.9 0.04 - (15.0) 15.0 0.14
Acquisition related
expenses - (1.2) 1.2 0.01 - (3.8) 3.8 0.03
Intrathecal divestiture - - 0.4 - - - - -
Significant legal and
environmental changes - - - - - (3.0) 3.0 0.03
Reorganization of legal
entity ownership (2) - - 36.1 0.37 - - - -
Income taxes (3) - - (106.5) (1.10) - - (97.8) (0.90)
--- --- ------
As adjusted $574.7 $197.5 $190.8 $1.97 $668.2 $242.8 $222.0 $2.04
====== ====== ====== ====== ====== ======
Percent of net sales 72.4% 24.9% 24.0% 75.3% 27.4% 25.0%
(1) Includes pre-tax accelerated
depreciation.
(2) Represents the incremental tax
expense associated with non-cash
internal legal entity
reorganization commenced during
the three months ended September
29, 2017.
(3) Includes tax effects of above
adjustments as well as the
elimination of deferred tax
benefits recognized upon pay down
of intercompany installment notes
created by internal sales of
acquired intangible assets.
MALLINCKRODT PLC
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH
(unaudited, in millions)
Three Months Ended
September 29, September 30, Percent Currency Constant-
currency
2017 2016 impact growth
change
------
Specialty
Brands $591.4 $633.1 (6.6)% - % (6.6)%
Specialty
Generics 189.1 239.8 (21.1) 0.3 (21.4)
-----
780.5 872.9 (10.6) 0.1 (10.7)
Other(1) 13.4 14.3 (6.3) - (6.3)
----
Net sales $793.9 $887.2 (10.5)% 0.1% (10.6)%
====== ======
(1) Represents net sales from an
ongoing, post-divestiture supply
agreement with the acquirer of the
CMDS business. Amounts for periods
prior to the divestiture represent
the reclassification of
intercompany sales to third-party
sales to conform with the
presentation of the ongoing supply
agreement.
MALLINCKRODT PLC
SELECT PRODUCT LINE NET SALES
(unaudited, in millions)
Three Months Ended
September 29, September 30, Percent Currency Constant-currency
2017 2016 change impact growth
---- ---- ------ ------ ------
Specialty Brands
Acthar $308.7 $327.0 (5.6)% - % (5.6)%
Inomax 125.7 126.9 (0.9) 0.1 (1.0)
Ofirmev 75.4 75.6 (0.3) - (0.3)
Therakos immunotherapy 55.3 54.5 1.5 (0.3) 1.8
Hemostasis products 16.2 17.2 (5.8) - (5.8)
Other 10.1 31.9 (68.3) 0.2 (68.5)
Specialty Brands Total $591.4 $633.1 (6.6)% - % (6.6)%
====== ======
Specialty Generics
Hydrocodone (API) and
hydrocodone-containing
tablets $10.0 $30.8 (67.5)% - % (67.5)%
Oxycodone (API) and oxycodone-
containing tablets 13.4 28.8 (53.5) - (53.5)
Methylphenidate ER 14.3 23.4 (38.9) - (38.9)
Other controlled substances 103.9 111.8 (7.1) - (7.1)
Other products 47.5 45.0 5.6 1.7 3.9
Specialty Generics Total $189.1 $239.8 (21.1)% 0.3% (21.4)%
====== ======
MALLINCKRODT PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in millions, except per share data)
Nine Months Ended
September 29, Percent of September 30, Percent of
2017 Net sales 2016 Net sales
---- --------- ---- ---------
Net sales $2,429.3 100.0% $2,569.6 100.0%
Cost of sales 1,194.0 49.1 1,165.5 45.4
------- -------
Gross profit 1,235.3 50.9 1,404.1 54.6
Selling, general and
administrative
expenses 745.9 30.7 702.0 27.3
Research and
development expenses 190.9 7.9 200.8 7.8
Restructuring charges,
net 32.1 1.3 29.2 1.1
Non-restructuring
impairments - - 16.9 0.7
Gains on divestiture
and license (56.6) (2.3) - -
----- ---
Operating income 323.0 13.3 455.2 17.7
Interest expense (279.0) (11.5) (286.8) (11.2)
Interest income 2.8 0.1 1.1 -
Other income
(expense), net 6.2 0.3 (2.6) (0.1)
--- ----
Income from continuing
operations before
income taxes 53.0 2.2 166.9 6.5
Income tax benefit (110.8) (4.6) (218.3) (8.5)
------ ------
Income from continuing
operations 163.8 6.7 385.2 15.0
Income from
discontinued
operations, net of
income taxes 361.9 14.9 47.4 1.8
----- ----
Net income $525.7 21.6% $432.6 16.8%
====== ======
Basic earnings per share:
Income from continuing
operations $1.65 $3.53
Income from
discontinued
operations 3.64 0.43
Net income 5.28 3.97
Diluted earnings per share:
Income from continuing
operations $1.64 $3.50
Income from
discontinued
operations 3.63 0.43
Net income 5.27 3.93
Weighted-average number of shares
outstanding:
Basic 99.5 109.1
Diluted 99.8 110.0
MALLINCKRODT PLC
NON-GAAP MEASURES
(unaudited, in millions except per share data)
Nine Months Ended
September 29, 2017 September 30, 2016
Gross Selling, Net Diluted Gross Selling, Net Diluted
profit general income net profit general income net
and income and income
administrative per administrative per
expenses share expenses share
--- -----
GAAP $1,235.3 $745.9 $525.7 $5.27 $1,404.1 $702.0 $432.6 $3.93
Adjustments:
Intangible asset
amortization 516.0 (7.0) 523.0 5.24 521.2 (5.5) 526.7 4.79
Restructuring and related
charges, net (1) 1.6 (2.1) 35.7 0.36 1.8 (3.1) 34.0 0.31
Inventory step-up expense 8.6 - 8.6 0.09 8.1 - 8.1 0.07
(Income) from discontinued
operations - - (361.9) (3.63) - - (47.4) (0.43)
Change in contingent
consideration fair value - (4.1) 4.1 0.04 - (4.4) 4.4 0.04
Acquisition related
expenses - (2.3) 2.3 0.02 - (5.8) 5.8 0.05
Non-restructuring
impairment charges - - - - - - 16.9 0.15
Debt refinancing - - 10.0 0.10 - - - -
Pension settlement charge - (69.2) 69.2 0.69 - - - -
Intrathecal divestiture - - (56.6) (0.57) - - - -
Significant legal and
environmental charges - - - - - (3.0) 3.0 0.03
Reorganization of legal
entity ownership (2) - - 36.1 0.36 - - - -
Income taxes (3) - - (249.0) (2.49) - - (337.5) (3.07)
--- --- ------ --- --- ------
As adjusted $1,761.5 $661.2 $547.2 $5.48 $1,935.2 $680.2 $646.6 $5.88
======== ====== ====== ======== ====== ======
Percent of net sales 72.5% 27.2% 22.5% 75.3% 26.5% 25.2%
(1) Includes pre-tax accelerated
depreciation.
(2) Represents the incremental tax
expense associated with non-cash
internal legal entity
reorganization commenced during
the three months ended September
29, 2017.
(3) Includes tax effects of above
adjustments as well as the
elimination of deferred tax
benefits recognized upon pay down
of intercompany installment notes
created by internal sales of
acquired intangible assets.
MALLINCKRODT PLC
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH
(unaudited, in millions)
Nine Months Ended
September 29, September 30, Percent Currency Constant-currency
2017 2016 change impact growth
---- ---- ------ ------ ------
Specialty
Brands $1,743.1 $1,757.4 (0.8)% (0.3)% (0.5)%
Specialty
Generics 643.7 767.6 (16.1) 0.1 (16.2)
-----
2,386.8 2,525.0 (5.5) (0.2) (5.3)
Other(1) 42.5 44.6 (4.7) - (4.7)
Net sales $2,429.3 $2,569.6 (5.5)% (0.1)% (5.4)%
======== ========
(1) Represents net sales from an
ongoing, post-divestiture supply
agreement with the acquirer of the
CMDS business. Amounts for periods
prior to the divestiture represent
the reclassification of
intercompany sales to third-party
sales to conform with the
presentation of the ongoing supply
agreement.
MALLINCKRODT PLC
SELECT PRODUCT LINE NET SALES
(unaudited, in millions)
Nine Months Ended
September 29, September 30, Percent Currency Constant-currency
2017 2016 change impact growth
---- ---- ------ ------ ------
Specialty Brands
Acthar $899.9 $873.7 3.0% - % 3.0%
Inomax 379.6 363.5 4.4 - 4.4
Ofirmev 224.5 217.4 3.3 - 3.3
Therakos immunotherapy 157.7 157.2 0.3 (2.9) 3.2
Hemostasis products 42.8 42.5 0.7 - 0.7
Other 38.6 103.1 (62.6) - (62.6)
Specialty Brands Total $1,743.1 $1,757.4 (0.8)% (0.3)% (0.5)%
======== ========
Specialty Generics
Hydrocodone (API) and
hydrocodone-containing
tablets $63.3 $109.8 (42.3)% - % (42.3)%
Oxycodone (API) and oxycodone-
containing tablets 60.6 97.3 (37.7) - (37.7)
Methylphenidate ER 58.2 72.3 (19.5) - (19.5)
Other controlled substances 319.0 358.4 (11.0) - (11.0)
Other products 142.6 129.8 9.9 0.5 9.4
Specialty Generics Total $643.7 $767.6 (16.1)% 0.1% (16.2)%
====== ======
MALLINCKRODT PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
September 29, December 30,
2017 2016
---- ----
Assets
Current Assets:
Cash
and
cash
equivalents $371.8 $342.0
Accounts
receivable,
net 464.3 431.0
Inventories 341.3 350.7
Prepaid
expenses
and
other
current
assets 121.1 131.9
Notes
receivable 154.0 -
Current
assets
held
for
sale - 310.9
---
Total
current
assets 1,452.5 1,566.5
Property,
plant
and
equipment,
net 962.4 881.5
Goodwill 3,459.5 3,498.1
Intangible
assets,
net 8,545.9 9,000.5
Other
assets 191.6 259.7
Total
Assets $14,611.9 $15,206.3
========= =========
Liabilities and
Shareholders' Equity
Current Liabilities:
Current
maturities
of
long-
term
debt $318.2 $271.2
Accounts
payable 104.9 112.1
Accrued
payroll
and
payroll-
related
costs 84.4 76.1
Accrued
interest 78.1 68.7
Income
taxes
payable 28.1 101.7
Accrued
and
other
current
liabilities 440.4 557.1
Current
liabilities
held
for
sale - 120.3
--- -----
Total
current
liabilities 1,054.1 1,307.2
Long-
term
debt 5,517.4 5,880.8
Pension
and
postretirement
benefits 67.5 136.4
Environmental
liabilities 73.1 73.0
Deferred
income
taxes 2,294.1 2,398.1
Other
income
tax
liabilities 78.5 70.4
Other
liabilities 414.2 356.1
Total
Liabilities 9,498.9 10,222.0
Shareholders' Equity:
Preferred
shares - -
Ordinary
shares 23.7 23.6
Ordinary
shares
held
in
treasury
at
cost (1,352.3) (919.8)
Additional
paid-
in
capital 5,474.1 5,424.0
Retained
earnings 980.6 529.0
Accumulated
other
comprehensive
income (13.1) (72.5)
----- -----
Total
Shareholders'
Equity 5,113.0 4,984.3
------- -------
Total
Liabilities
and
Shareholders'
Equity $14,611.9 $15,206.3
========= =========
MALLINCKRODT PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Nine Months Ended
September 29, September 30,
2017 2016
---- ----
Cash Flows From
Operating Activities:
Net
income $525.7 $432.6
Adjustments to reconcile
net cash from operating
activities:
Depreciation
and
amortization 606.5 628.5
Share-
based
compensation 46.1 34.4
Deferred
income
taxes (128.7) (324.0)
Non-
cash
impairment
charges - 16.9
Gain on
divestitures (418.1) 1.7
Other
non-
cash
items 40.8 54.7
Changes in assets and
liabilities, net of the
effects of
acquisitions:
Accounts
receivable,
net (34.7) (37.2)
Inventories (18.2) (2.8)
Accounts
payable (30.2) 3.3
Income
taxes (68.1) 11.6
Other (72.6) 53.5
----- ----
Net cash
from
operating
activities 448.5 873.2
----- -----
Cash Flows From
Investing Activities:
Capital
expenditures (151.3) (133.9)
Acquisitions
and
intangibles,
net of
cash
acquired (35.9) (245.4)
Proceeds
from
divestitures,
net of
cash 576.9 3.0
Other 0.5 5.3
--- ---
Net cash
from
investing
activities 390.2 (371.0)
----- ------
Cash Flows From
Financing Activities:
Issuance
of
external
debt 540.0 36.3
Repayment
of
external
debt
and
capital
leases (887.5) (439.0)
Debt
financing
costs (12.7) -
Proceeds
from
exercise
of share
options 4.0 10.4
Repurchase
of
shares (437.7) (377.5)
Other (18.6) (23.0)
----- -----
Net cash
from
financing
activities (812.5) (792.8)
------ ------
Effect
of
currency
rate
changes
on cash 2.7 1.8
--- ---
Net
change
in
cash,
cash
equivalents
and
restricted
cash 28.9 (288.8)
Cash,
cash
equivalents
and
restricted
cash at
beginning
of
period 361.1 588.4
Cash,
cash
equivalents
and
restricted
cash at
end of
period $390.0 $299.6
====== ======
Cash and
cash
equivalents
at end
of
period $371.8 $280.5
Restricted
cash of
included period
in
prepaid
expenses
and
other
current
assets
at end - 0.1
Restricted
cash
included
in
other
assets
at end
of
period 18.2 19.0
Cash,
cash
equivalents
and
restricted
cash at
end of
period $390.0 $299.6
====== ======
View original content with multimedia:http://www.prnewswire.com/news-releases/mallinckrodt-plc-reports-earnings-results-for-third-quarter-of-fiscal-2017-300550637.html SOURCE Mallinckrodt plc |
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Company Codes: NYSE:MNK |
