Exceeds High End of
Accomplished Key Milestones in Specialty Brands in 2023, Including Successful Launch of Terlivaz® (terlipressin) and FDA Clearance of INOmax® EVOLVE™ DS Delivery System With Rollout in 2024
Appointed New Board Members With Expertise in Pharmaceuticals, Healthcare, Finance and Operations
Provides 2024 Adjusted EBITDA Guidance of
"We are pleased with the meaningful progress we made in 2023 as we exceeded the high end of our annual net sales and Adjusted EBITDA guidance, drove significant growth in Specialty Generics, achieved key milestones in Specialty Brands, and strengthened Mallinckrodt's financial foundation," said
1 |
As a result of emerging from Chapter 11, the period |
Fourth Quarter 2023 Financial Results
Mallinckrodt's net sales in the fourth quarter of 2023 were
The Company's Specialty Brands segment reported net sales of
Mallinckrodt's Specialty Generics segment reported net sales of
The Company's net income for the fourth quarter of 2023 was
Mallinckrodt's Adjusted EBITDA in the fourth quarter of 2023 was
Adjusted gross profit as a percentage of sales was 62.3% for the fourth quarter of 2023, as compared to 65.9% for the fourth quarter of 2022. The decline in gross profit was primarily due to the Company's shift in overall product mix.
Mallinckrodt's cash balance at the end of the fourth quarter of 2023 was
Fiscal Year 2023 Results
Mallinckrodt's net sales for fiscal 2023 were
The Company's net loss for fiscal 2023 was
Mallinckrodt's Adjusted EBITDA for fiscal 2023 was
Fourth Quarter and Fiscal Year 2023 Business Segment Update
Specialty Brands Segment
Acthar Gel reported net sales of
Mallinckrodt expects fiscal 2024 Acthar Gel net revenue to decline in the low single digits, compared with fiscal 2023. This represents significant progress toward net revenue stabilization for the brand. In addition, Mallinckrodt expects Acthar Gel net sales performance to improve over the course of fiscal 2024, as prescribing momentum within the category continues to grow.
Terlivaz reported net sales of
INOmax (nitric oxide) gas sales grew outside of the
Specialty Generics Segment
The Company delivered strong growth in its Specialty Generics segment in fiscal 2023 versus prior years, with year over year net sales growth of 20.5%. Performance was driven by the finished-dosage products business, manufacturing excellence in the Acetaminophen (APAP) business and three successful new product launches, including generic Mydayis® and generic Vyvanse® capsules for ADHD and morphine sulfate tablets. The business also gained regulatory approval in the fourth quarter of 2023 for a reformulation of the Company's fentanyl patch product, which it reintroduced to the market in multiple strengths in the first quarter of 2024. Mallinckrodt's Specialty Generics business will continue to be differentiated as a reliable, consistent supplier, creating stable pricing dynamics and a competitive advantage with customers amidst ongoing shortages and supply chain constraints.
2024 Financial Guidance
For the full-year fiscal 2024, Mallinckrodt expects:
2024 Guidance |
|
Total |
|
Adjusted EBITDA |
|
The Company does not provide a reconciliation of forward-looking non-GAAP guidance to the comparable GAAP measures as these items are inherently uncertain and difficult to estimate and cannot be predicted without unreasonable effort. Please see the "Reconciliation of Non-GAAP Financial Guidance" included in this release for a reconciliation of GAAP and non-GAAP financial measures for the fourth quarter of 2023 and fiscal 2023.
Board Updates
On
These new board members bring seasoned experience in pharmaceuticals, healthcare, finance and operations. For full biographies of each director, please visit https://www.mallinckrodt.com/about/board-of-directors/.
About Mallinckrodt
Mallinckrodt is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The Company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, hepatology, nephrology, pulmonology, ophthalmology and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. To learn more about Mallinckrodt, visit www.mallinckrodt.com.
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
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including Adjusted EBITDA, adjusted gross profit, adjusted SG&A expenses, adjusted R&D expenses, and net sales growth (loss) on a constant-currency basis, which are considered "non-GAAP" financial measures under applicable
Adjusted EBITDA represents net income or loss prepared in accordance with accounting principles generally accepted in the
Adjusted gross profit, adjusted SG&A expenses and adjusted R&D expenses represent amounts prepared in accordance with GAAP, adjusted for certain items that management believes are not reflective of the operational performance of the business. Adjustments to GAAP amounts include, as applicable to each measure, the aforementioned items in the Adjusted EBITDA paragraph. The adjustments for these items are on a pre-tax basis for adjusted gross profit and adjusted SG&A expenses.
Segment net sales growth (loss) on a constant-currency basis measures the change in segment net sales between current- and prior-year periods using a constant currency, the exchange rate in effect during the applicable prior-year period.
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 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 unaudited condensed 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.
Predecessor and Successor Periods
Mallinckrodt's financial results presented in this press release include Successor and Predecessor periods.
The Company reports its results based on a "52-53 week" year ending on the last Friday of December. The period
Upon emergence from Chapter 11 on each of
Mallinckrodt's results of operations as reported in its consolidated financial statements for the Successor and Predecessor periods are in accordance with GAAP. The comparison of the Predecessor and Successor periods for the periods presented herein is not in accordance with GAAP. However, the Company believes that the comparison is useful for management and investors to assess Mallinckrodt's ongoing financial and operational performance and trends.
CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING STATEMENTS
Statements in this press release that are not strictly historical, including statements regarding future financial condition and operating results, expected product launches, legal, economic, business, competitive and/or regulatory factors affecting Mallinckrodt's businesses, the ongoing strategic review, and any other statements regarding events or developments Mallinckrodt believes or anticipates will or may occur in the future, may be "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties.
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: the effects of Mallinckrodt's recent emergence from bankruptcy; changes in Mallinckrodt's business strategy and performance; the uncertainties inherent in strategic review processes, and the challenges in effecting related transactions; Mallinckrodt's tax treatment by the
The "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Mallinckrodt's Annual Report on Form 10-K for the fiscal year ended
CONTACTS
Investor Relations
Vice President, Investor Relations
314-654-3950
derek.belz@mnk.com
Media
212-355-4449
Mallinckrodt, the "M" brand mark and the Mallinckrodt Pharmaceuticals logo are trademarks of a Mallinckrodt company. Other brands are trademarks of a Mallinckrodt company or their respective owners. © 2024.
Exhibit 99.1
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(unaudited, in millions, except per share data) |
|||||||||
Successor |
Predecessor |
||||||||
Period from
through December 29, |
Percent of Net sales |
Period from
through
|
Percent of Net sales |
Three Months |
Percent of Net sales |
||||
Net sales |
$ 243.0 |
100.0 % |
$ 226.3 |
100.0 % |
$ 489.3 |
100.0 % |
|||
Cost of sales |
179.1 |
73.7 |
209.4 |
92.5 |
438.9 |
89.7 |
|||
Gross profit |
63.9 |
26.3 |
16.9 |
7.5 |
50.4 |
10.3 |
|||
Selling, general and administrative |
64.2 |
26.4 |
78.6 |
34.7 |
130.6 |
26.7 |
|||
Research and development expenses |
15.9 |
6.5 |
14.1 |
6.2 |
29.7 |
6.1 |
|||
Restructuring charges, net |
— |
— |
— |
— |
7.8 |
1.6 |
|||
Non-restructuring impairment charges |
2.6 |
1.1 |
— |
— |
— |
— |
|||
Liabilities management and separation costs |
1.4 |
0.6 |
0.4 |
0.2 |
— |
— |
|||
Operating loss |
(20.2) |
(8.3) |
(76.2) |
(33.7) |
(117.7) |
(24.1) |
|||
Interest expense |
(28.3) |
(11.6) |
(49.5) |
(21.9) |
(155.2) |
(31.7) |
|||
Interest income |
0.9 |
0.4 |
1.9 |
0.8 |
2.5 |
0.5 |
|||
Other income, net |
5.4 |
2.2 |
0.2 |
0.1 |
9.2 |
1.9 |
|||
Reorganization items, net |
(4.0) |
(1.6) |
428.4 |
189.3 |
(5.5) |
(1.1) |
|||
(Loss) income from continuing operations |
(46.2) |
(19.0) |
304.8 |
134.7 |
(266.7) |
(54.5) |
|||
Income tax benefit |
(8.0) |
(3.3) |
(785.9) |
(347.3) |
(17.4) |
(3.6) |
|||
(Loss) income from continuing operations |
(38.2) |
(15.7) |
1,090.7 |
482.0 |
(249.3) |
(51.0) |
|||
Income (loss) from discontinued operations, |
— |
— |
(0.1) |
— |
(0.2) |
— |
|||
Net (loss) income |
$ (38.2) |
(15.7) % |
$ 1,090.6 |
481.9 % |
$ (249.5) |
(51.0) % |
|||
Basic loss per share: |
|||||||||
(Loss) income from continuing operations |
$ (1.94) |
$ 80.79 |
$ (18.93) |
||||||
Income (loss) from discontinued operations |
— |
(0.01) |
(0.02) |
||||||
Net (loss) income |
$ (1.94) |
$ 80.79 |
$ (18.94) |
||||||
Diluted loss per share: |
|||||||||
(Loss) income from continuing operations |
$ (1.94) |
$ 80.79 |
$ (18.93) |
||||||
Income (loss) from discontinued operations |
— |
(0.01) |
(0.02) |
||||||
Net (loss) income |
$ (1.94) |
$ 80.79 |
$ (18.94) |
||||||
Weighted-average number of shares |
|||||||||
Basic weighted-average shares outstanding |
19.7 |
13.5 |
13.2 |
||||||
Diluted weighted-average shares outstanding |
19.7 |
13.5 |
13.2 |
(1) |
The Company reports its results based on a "52-53 week" year ending on the last Friday of December. The period |
|
||||||||||||
CONSOLIDATED ADJUSTED EBITDA |
||||||||||||
(unaudited, in millions) |
||||||||||||
Successor |
Predecessor |
Non-GAAP |
||||||||||
Period from |
Period from |
Three Months |
||||||||||
Gross |
SG&A |
R&D |
Adjusted |
Gross |
SG&A |
R&D |
Adjusted |
Adjusted |
||||
Net income (loss) |
$ 63.9 |
$ 64.2 |
$ 15.9 |
$ (38.2) |
$ 16.9 |
$ 78.6 |
$ 14.1 |
$ 1,090.6 |
$ 1,052.4 |
|||
Adjustments: |
||||||||||||
Interest expense, net |
— |
— |
— |
27.4 |
— |
— |
— |
47.6 |
75.0 |
|||
Income tax benefit |
— |
— |
— |
(8.0) |
— |
— |
— |
(785.9) |
(793.9) |
|||
Depreciation (1) |
9.1 |
(0.3) |
(0.2) |
9.6 |
4.5 |
(0.8) |
(0.3) |
5.6 |
15.2 |
|||
Amortization |
16.2 |
— |
— |
16.2 |
61.5 |
— |
— |
61.5 |
77.7 |
|||
Restructuring charges, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||
Non-restructuring impairment charges (2) |
1.2 |
— |
— |
3.8 |
44.0 |
— |
— |
44.0 |
47.8 |
|||
Loss from discontinued operations |
— |
— |
— |
— |
— |
— |
— |
0.1 |
0.1 |
|||
Change in contingent consideration fair value |
— |
0.3 |
— |
(0.3) |
— |
— |
— |
— |
(0.3) |
|||
Change in derivative assets and liabilities |
— |
— |
— |
8.4 |
— |
— |
— |
— |
8.4 |
|||
Liabilities management and separation costs (3) |
— |
— |
— |
1.4 |
— |
— |
— |
0.4 |
1.8 |
|||
Unrealized (gain) loss on equity investment |
— |
— |
— |
(13.5) |
— |
— |
— |
1.0 |
(12.5) |
|||
Reorganization items, net |
— |
— |
— |
4.0 |
— |
— |
— |
(428.4) |
(424.4) |
|||
Share-based compensation |
— |
— |
— |
— |
— |
(1.1) |
(0.1) |
1.2 |
1.2 |
|||
Fresh-start inventory-related expense (4) |
57.5 |
— |
— |
57.5 |
17.8 |
— |
— |
17.8 |
75.3 |
|||
As adjusted: |
$ 147.9 |
$ 64.2 |
$ 15.7 |
$ 68.3 |
$ 144.7 |
$ 76.7 |
$ 13.7 |
$ 55.5 |
$ 123.8 |
(1) |
Includes |
(2) |
Includes |
(3) |
Represents costs primarily related to expenses incurred related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence from the respective bankruptcy proceedings. |
(4) |
Includes |
|
||||||||||
CONSOLIDATED ADJUSTED EBITDA |
||||||||||
(unaudited, in millions) |
||||||||||
Non-GAAP Combined |
Predecessor |
|||||||||
Three Months |
Three Months |
|||||||||
Gross |
SG&A |
R&D |
Adjusted |
Gross |
SG&A |
R&D |
Adjusted |
|||
Net income (loss) |
$ 80.8 |
$ 142.8 |
$ 30.0 |
$ 1,052.4 |
$ 50.4 |
$ 130.6 |
$ 29.7 |
|
||
Adjustments: |
||||||||||
Interest expense, net |
— |
— |
— |
75.0 |
— |
— |
— |
152.7 |
||
Income tax benefit |
— |
— |
— |
(793.9) |
— |
— |
— |
(17.4) |
||
Depreciation (1) |
13.6 |
(1.1) |
(0.5) |
15.2 |
10.4 |
(3.0) |
(0.6) |
14.0 |
||
Amortization |
77.7 |
— |
— |
77.7 |
136.6 |
— |
— |
136.6 |
||
Restructuring charges, net |
— |
— |
— |
— |
— |
— |
— |
7.8 |
||
Non-restructuring impairment charges (2) |
45.2 |
— |
— |
47.8 |
— |
— |
— |
— |
||
Loss from discontinued operations |
— |
— |
— |
0.1 |
— |
— |
— |
0.2 |
||
Change in contingent consideration fair value |
— |
0.3 |
— |
(0.3) |
— |
(1.3) |
— |
1.3 |
||
Change in derivative assets and liabilities fair value |
— |
— |
— |
8.4 |
||||||
Liabilities management and separation costs (3) |
— |
— |
— |
1.8 |
— |
— |
— |
5.1 |
||
Unrealized (gain) loss on equity investment |
— |
— |
— |
(12.5) |
— |
— |
— |
(8.3) |
||
Reorganization items, net |
— |
— |
— |
(424.4) |
— |
— |
— |
5.5 |
||
Share-based compensation |
— |
(1.1) |
(0.1) |
1.2 |
— |
— |
— |
0.9 |
||
Gain on debt extinguishment at par |
— |
— |
— |
— |
— |
— |
— |
(17.5) |
||
Fresh-start impact on debt extinguishment |
— |
— |
— |
— |
— |
— |
— |
18.3 |
||
Bad debt expense - customer bankruptcy |
— |
— |
— |
— |
— |
(0.6) |
— |
0.6 |
||
Fresh-start inventory-related expense (4) |
75.3 |
— |
— |
75.3 |
125.2 |
— |
— |
125.2 |
||
As adjusted: |
$ 292.6 |
$ 140.9 |
$ 29.4 |
$ 123.8 |
$ 322.6 |
$ 125.7 |
$ 29.1 |
$ 175.5 |
(1) |
Includes |
(2) |
Includes |
(3) |
Represents costs in both periods primarily related to expenses incurred related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence from the respective bankruptcy proceedings coupled with the severance of certain former executives of the Predecessor during the three months ended |
(4) |
Includes |
|
||||||
SEGMENT OPERATING INCOME |
||||||
(unaudited, in millions) |
||||||
Successor |
Predecessor |
|||||
Period from |
Period from |
Three Months |
||||
Specialty Brands (1) |
$ 9.0 |
$ 28.3 |
$ 65.6 |
|||
Specialty Generics (2) |
5.8 |
24.3 |
5.1 |
|||
Segment operating income |
14.8 |
52.6 |
70.7 |
|||
Unallocated amounts: |
||||||
Corporate and unallocated expenses (3) |
(4.0) |
(16.1) |
(23.4) |
|||
Depreciation and amortization |
(25.8) |
(67.1) |
(150.6) |
|||
Share-based compensation |
— |
(1.2) |
(0.9) |
|||
Restructuring charges, net |
— |
— |
(7.8) |
|||
Non-restructuring impairment charges (4) |
(3.8) |
(44.0) |
— |
|||
Liabilities management and separation costs (5) |
(1.4) |
(0.4) |
(5.1) |
|||
Bad debt expense - customer bankruptcy |
— |
— |
(0.6) |
|||
Operating loss |
$ (20.2) |
$ (76.2) |
$ (117.7) |
(1) |
Includes |
(2) |
Includes |
(3) |
Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. |
(4) |
Includes |
(5) |
Represents costs primarily related to expenses incurred related to the severance of certain former executives of the Predecessor during the three months ended |
|
||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||
(unaudited, in millions) |
||||||
Successor |
Predecessor |
|||||
Period from |
Period from |
Three Months |
||||
Specialty Brands |
$ 139.8 |
$ 130.9 |
$ 320.7 |
|||
Specialty Generics |
103.2 |
95.4 |
168.6 |
|||
Net sales |
$ 243.0 |
$ 226.3 |
$ 489.3 |
|
||||||||||
SEGMENT NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||
(unaudited, in millions) |
||||||||||
Non-GAAP Combined |
Predecessor |
Non-GAAP Measure |
||||||||
Three Months |
Three Months |
Percent change |
Currency |
Constant- |
||||||
Specialty Brands |
$ 270.7 |
$ 320.7 |
(15.6) % |
0.2 % |
(15.8) % |
|||||
Specialty Generics |
198.6 |
168.6 |
17.8 |
— |
17.8 |
|||||
Net sales |
$ 469.3 |
$ 489.3 |
(4.1) % |
0.2 % |
(4.3) % |
|
||||||
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||
(unaudited, in millions) |
||||||
Successor |
Predecessor |
|||||
Period from |
Period from |
Three Months |
||||
Specialty Brands |
||||||
Acthar Gel |
$ 57.0 |
$ 47.4 |
$ 140.9 |
|||
INOmax |
35.3 |
35.4 |
79.7 |
|||
|
39.1 |
32.4 |
62.3 |
|||
Amitiza |
5.0 |
10.6 |
34.2 |
|||
Terlivaz |
2.3 |
3.3 |
1.2 |
|||
Other |
1.1 |
1.8 |
2.4 |
|||
Specialty Brands |
139.8 |
130.9 |
320.7 |
|||
Specialty Generics |
||||||
Opioids |
31.6 |
30.5 |
62.7 |
|||
ADHD |
13.5 |
18.5 |
15.0 |
|||
Addiction treatment |
10.5 |
8.8 |
15.9 |
|||
Other |
1.6 |
0.6 |
3.8 |
|||
Generics |
57.2 |
58.4 |
97.4 |
|||
Controlled substances |
11.6 |
14.1 |
25.6 |
|||
APAP |
32.5 |
21.2 |
42.2 |
|||
Other |
1.9 |
1.7 |
3.4 |
|||
API |
46.0 |
37.0 |
71.2 |
|||
Specialty Generics |
103.2 |
95.4 |
168.6 |
|||
Net sales |
$ 243.0 |
$ 226.3 |
$ 489.3 |
|
||||||||||
SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH |
||||||||||
(unaudited, in millions) |
||||||||||
Non-GAAP Combined |
Predecessor |
Non-GAAP Measure |
||||||||
Three Months |
Three Months |
Percent change |
Currency |
Constant- |
||||||
Specialty Brands |
||||||||||
Acthar Gel |
$ 104.4 |
$ 140.9 |
(25.9) % |
— |
(25.9) % |
|||||
INOmax |
70.7 |
79.7 |
(11.3) |
— |
(11.3) |
|||||
|
71.5 |
62.3 |
14.8 |
1.3 |
13.5 |
|||||
Amitiza |
15.6 |
34.2 |
(54.4) |
— |
(54.4) |
|||||
Terlivaz |
5.6 |
1.2 |
366.7 |
— |
366.7 |
|||||
Other |
2.9 |
2.4 |
20.8 |
(1.3) |
22.1 |
|||||
Specialty Brands |
270.7 |
320.7 |
(15.6) |
0.2 |
(15.8) |
|||||
Specialty Generics |
||||||||||
Opioids |
62.1 |
62.7 |
(1.0) |
— |
(1.0) |
|||||
ADHD |
32.0 |
15.0 |
113.3 |
— |
113.3 |
|||||
Addiction treatment |
19.3 |
15.9 |
21.4 |
— |
21.4 |
|||||
Other |
2.2 |
3.8 |
(42.1) |
— |
(42.1) |
|||||
Generics |
115.6 |
97.4 |
18.7 |
— |
18.7 |
|||||
Controlled substances |
25.7 |
25.6 |
0.4 |
— |
0.4 |
|||||
APAP |
53.7 |
42.2 |
27.3 |
— |
27.3 |
|||||
Other |
3.6 |
3.4 |
5.9 |
— |
5.9 |
|||||
API |
83.0 |
71.2 |
16.6 |
— |
16.6 |
|||||
Specialty Generics |
198.6 |
168.6 |
17.8 |
— |
17.8 |
|||||
Net sales |
$ 469.3 |
$ 489.3 |
(4.1) % |
0.2 |
(4.3) % |
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||
(unaudited, in millions, except per share data) |
|||||||||||||
Successor |
Predecessor |
||||||||||||
Period from |
Period from |
Period from |
Period from |
||||||||||
Percent Net |
Percent Net |
Percent Net |
Percent Net |
||||||||||
Net sales |
$ 243.0 |
100.0 % |
$ 1,622.9 |
100.0 % |
$ 1,039.7 |
100.0 % |
$ 874.6 |
100.0 % |
|||||
Cost of sales |
179.1 |
73.7 |
1,300.5 |
80.1 |
991.0 |
95.3 |
582.0 |
66.5 |
|||||
Gross profit |
63.9 |
26.3 |
322.4 |
19.9 |
48.7 |
4.7 |
292.6 |
33.5 |
|||||
Selling, general and administrative expenses |
64.2 |
26.4 |
448.2 |
27.6 |
268.9 |
25.9 |
266.3 |
30.4 |
|||||
Research and development expenses |
15.9 |
6.5 |
97.1 |
6.0 |
64.2 |
6.2 |
65.5 |
7.5 |
|||||
Restructuring charges, net |
— |
— |
0.9 |
0.1 |
11.1 |
1.1 |
9.6 |
1.1 |
|||||
Non-restructuring impairment charges |
2.6 |
1.1 |
135.9 |
55.9 |
— |
— |
— |
— |
|||||
Liabilities management and separation costs |
1.4 |
0.6 |
157.7 |
64.9 |
21.2 |
2.4 |
9.0 |
1.0 |
|||||
Operating loss |
(20.2) |
(8.3) |
(517.4) |
(31.9) |
(316.7) |
(30.5) |
(57.8) |
(6.6) |
|||||
Interest expense |
(28.3) |
(11.6) |
(507.2) |
(31.3) |
(324.3) |
(31.2) |
(108.6) |
(12.4) |
|||||
Interest income |
0.9 |
0.4 |
14.7 |
0.9 |
3.9 |
0.4 |
0.6 |
0.1 |
|||||
Other income (expense), net |
5.4 |
2.2 |
(6.5) |
(0.4) |
10.0 |
1.0 |
(14.6) |
(1.7) |
|||||
Reorganization items, net |
(4.0) |
(1.6) |
(892.7) |
(55.0) |
(23.2) |
(2.2) |
(630.9) |
(72.1) |
|||||
Loss from continuing operations before income taxes |
(46.2) |
(19.0) |
(1,909.1) |
(117.6) |
(650.3) |
(62.5) |
(811.3) |
(92.8) |
|||||
Income tax benefit |
(8.0) |
(3.3) |
(277.8) |
(17.1) |
(52.0) |
(5.0) |
(497.3) |
(56.9) |
|||||
Loss from continuing operations |
(38.2) |
(15.7) |
(1,631.3) |
(100.5) |
(598.3) |
(57.5) |
(314.0) |
(35.9) |
|||||
Income from discontinued operations, net of income taxes |
— |
— |
— |
— |
0.2 |
— |
0.9 |
0.1 |
|||||
Net loss |
$ (38.2) |
(15.7) % |
$ (1,631.3) |
(100.5) % |
$ (598.1) |
(57.5) % |
$ (313.1) |
(35.8) % |
|||||
Basic loss per share: |
|||||||||||||
Loss from continuing operations |
$ (1.94) |
$ (122.75) |
$ (45.43) |
$ (3.70) |
|||||||||
Income from discontinued operations |
— |
— |
0.02 |
0.01 |
|||||||||
Net loss |
$ (1.94) |
$ (122.75) |
$ (45.41) |
$ (3.69) |
|||||||||
Diluted loss per share: |
|||||||||||||
Loss from continuing operations |
$ (1.94) |
$ (122.75) |
$ (45.43) |
$ (3.70) |
|||||||||
Income from discontinued operations |
— |
— |
0.02 |
0.01 |
|||||||||
Net loss |
$ (1.94) |
$ (122.75) |
$ (45.41) |
$ (3.69) |
|||||||||
Weighted-average number of shares outstanding: |
|||||||||||||
Basic |
19.7 |
13.3 |
13.2 |
84.8 |
|||||||||
Diluted |
19.7 |
13.3 |
13.2 |
84.8 |
(1) |
The Company reports its results based on a "52-53 week" year ending on the last Friday of December. The period |
|
||||||||||||
CONSOLIDATED ADJUSTED EBITDA |
||||||||||||
(unaudited, in millions) |
||||||||||||
Successor |
Predecessor |
Non-GAAP |
||||||||||
Period from |
Period from |
Fiscal Year |
||||||||||
Gross |
SG&A |
R&D |
Adjusted |
Gross |
SG&A |
R&D |
Adjusted |
Adjusted |
||||
Net loss |
$ 63.9 |
$ 64.2 |
$ 15.9 |
$ (38.2) |
$ 322.4 |
$ 448.2 |
$ 97.1 |
$ (1,631.3) |
$ (1,669.5) |
|||
Adjustments: |
||||||||||||
Interest expense, net |
— |
— |
— |
27.4 |
— |
— |
— |
492.5 |
519.9 |
|||
Income tax benefit |
— |
— |
— |
(8.0) |
— |
— |
— |
(277.8) |
(285.8) |
|||
Depreciation (1) |
9.1 |
(0.3) |
(0.2) |
9.6 |
32.4 |
(6.5) |
(1.8) |
40.7 |
50.3 |
|||
Amortization |
16.2 |
— |
— |
16.2 |
449.6 |
— |
— |
449.6 |
465.8 |
|||
Restructuring charges, net |
— |
— |
— |
— |
— |
— |
— |
0.9 |
0.9 |
|||
Non-restructuring impairment charges (2) |
1.2 |
— |
— |
3.8 |
44.0 |
— |
— |
179.9 |
183.7 |
|||
Change in contingent consideration fair value |
— |
0.3 |
— |
(0.3) |
— |
7.3 |
— |
(7.3) |
(7.6) |
|||
Change in derivative assets and liabilities fair value |
— |
— |
— |
8.4 |
— |
— |
— |
— |
8.4 |
|||
Liabilities management and separation costs (3) |
— |
— |
— |
1.4 |
— |
— |
— |
157.7 |
159.1 |
|||
Unrealized (gain) loss on equity investment |
— |
— |
— |
(13.5) |
— |
— |
— |
10.1 |
(3.4) |
|||
Reorganization items, net |
— |
— |
— |
4.0 |
— |
— |
— |
892.7 |
896.7 |
|||
Share-based compensation |
— |
— |
— |
— |
— |
(8.5) |
(0.4) |
8.9 |
8.9 |
|||
Fresh-start inventory-related expense (4) |
57.5 |
— |
— |
57.5 |
187.0 |
— |
— |
187.0 |
244.5 |
|||
As adjusted: |
$ 147.9 |
$ 64.2 |
$ 15.7 |
$ 68.3 |
$ 1,035.4 |
$ 440.5 |
$ 94.9 |
$ 503.6 |
$ 571.9 |
(1) |
Includes |
(2) |
Includes |
(3) |
Represents costs during the Successor period primarily related to expenses incurred related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 Bankruptcy Proceedings. Represents costs during the Predecessor period primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its evaluation of its financial situation and related discussions with its stakeholders prior to the commencement of the 2023 Chapter 11 Cases, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence from the 2020 Bankruptcy Proceedings. As of the 2023 Petition Date, professional fees directly related to the 2023 Bankruptcy Proceedings that were previously reflected as liabilities management and separation costs were classified on a go-forward basis as reorganization items, net. |
(4) |
Includes |
|
|||||||||||
CONSOLIDATED ADJUSTED EBITDA |
|||||||||||
(unaudited, in millions) |
|||||||||||
Predecessor |
Non-GAAP |
||||||||||
Period from |
Period from |
Fiscal Year |
|||||||||
Gross |
SG&A |
R&D |
Adjusted |
Gross |
SG&A |
R&D |
Adjusted |
Adjusted |
|||
Net loss |
$ 48.7 |
$ 290.1 |
$ 64.3 |
$ (598.1) |
$ 292.6 |
$ 266.3 |
$ 65.5 |
$ (313.1) |
$ (911.2) |
||
Adjustments: |
|||||||||||
Interest expense, net |
— |
— |
— |
320.4 |
— |
— |
— |
108.0 |
428.4 |
||
Income tax benefit |
— |
— |
— |
(52.0) |
— |
— |
— |
(497.3) |
(549.3) |
||
Depreciation (1) |
21.8 |
(5.6) |
(1.4) |
28.8 |
32.7 |
(5.7) |
(1.6) |
40.0 |
68.8 |
||
Amortization |
318.7 |
— |
— |
318.7 |
280.2 |
(1.6) |
— |
281.8 |
600.5 |
||
Restructuring charges, net |
— |
— |
— |
11.1 |
— |
— |
— |
9.6 |
20.7 |
||
Income from discontinued operations |
— |
— |
— |
(0.2) |
— |
— |
— |
(0.9) |
(1.1) |
||
Change in contingent consideration fair value |
— |
(0.5) |
— |
0.5 |
— |
— |
— |
— |
0.5 |
||
Significant legal and environmental charges |
— |
— |
— |
— |
— |
— |
— |
11.1 |
11.1 |
||
Liabilities management and separation costs (2) |
— |
— |
— |
21.2 |
— |
— |
— |
9.0 |
30.2 |
||
Unrealized (gain) loss on equity investment |
— |
— |
— |
(9.2) |
— |
— |
— |
22.2 |
13.0 |
||
Reorganization items, net |
— |
— |
— |
23.2 |
— |
— |
— |
630.9 |
654.1 |
||
Share-based compensation |
— |
(1.4) |
— |
1.4 |
0.1 |
(1.3) |
(0.3) |
1.7 |
3.1 |
||
Gain on debt extinguishment at par |
— |
— |
— |
(21.4) |
— |
— |
— |
— |
(21.4) |
||
Fresh-start impact on debt extinguishment |
— |
— |
— |
22.4 |
— |
— |
— |
— |
22.4 |
||
Bad debt expense - customer bankruptcy |
— |
(6.4) |
— |
6.4 |
— |
— |
— |
— |
6.4 |
||
Fresh-start inventory-related expense (3) |
298.7 |
— |
— |
298.7 |
— |
— |
— |
— |
298.7 |
||
As adjusted: |
$ 687.9 |
$ 276.2 |
$ 62.9 |
$ 371.9 |
$ 605.6 |
$ 257.7 |
$ 63.6 |
|
$ 674.9 |
(1) |
Includes |
(2) |
Represents costs primarily related to expenses incurred related to severance for the former chief executive officer ("CEO") and certain former executives of the Predecessor and the Predecessor directors' and officers' insurance policies, in addition to professional fees and costs incurred as we explore potential sales of non-core assets to enable further deleveraging post-emergence. |
(3) |
Includes |
|
|||||||||
CONSOLIDATED ADJUSTED EBITDA |
|||||||||
(unaudited, in millions) |
|||||||||
Non-GAAP Combined |
Non-GAAP Combined |
||||||||
Fiscal Year Ended |
Fiscal Year Ended |
||||||||
Gross |
SG&A |
R&D |
Adjusted |
Gross |
SG&A |
R&D |
Adjusted |
||
Net loss |
$ 386.3 |
$ 512.4 |
$ 113.0 |
|
$ 341.3 |
$ 566.4 |
$ 129.8 |
|
|
Adjustments: |
|||||||||
Interest expense, net |
— |
— |
— |
519.9 |
— |
— |
— |
428.4 |
|
Income tax benefit |
— |
— |
— |
(285.8) |
— |
— |
— |
(549.3) |
|
Depreciation (1) |
41.5 |
(6.8) |
(2.0) |
50.3 |
54.5 |
(11.3) |
(3.0) |
68.8 |
|
Amortization |
465.8 |
— |
— |
465.8 |
598.9 |
(1.6) |
— |
600.5 |
|
Restructuring charges, net |
— |
— |
— |
0.9 |
— |
— |
— |
20.7 |
|
Non-restructuring impairment charges (2) |
45.2 |
— |
— |
183.7 |
— |
— |
— |
— |
|
Income from discontinued operations |
— |
— |
— |
— |
— |
— |
— |
(1.1) |
|
Change in contingent consideration fair value |
— |
7.6 |
— |
(7.6) |
— |
(0.5) |
— |
0.5 |
|
Change in derivative assets and liabilities fair value |
— |
— |
— |
8.4 |
— |
— |
— |
— |
|
Significant legal and environmental charges |
— |
— |
— |
— |
— |
— |
— |
11.1 |
|
Liabilities management and separation costs (3) |
— |
— |
— |
159.1 |
— |
— |
— |
30.2 |
|
Unrealized (gain) loss on equity investment |
— |
— |
— |
(3.4) |
— |
— |
— |
13.0 |
|
Reorganization items, net |
— |
— |
— |
896.7 |
— |
— |
— |
654.1 |
|
Share-based compensation |
— |
(8.5) |
(0.4) |
8.9 |
0.1 |
(2.7) |
(0.3) |
3.1 |
|
Gain on debt extinguishment at par |
— |
— |
— |
— |
— |
— |
— |
(21.4) |
|
Fresh-start impact on debt extinguishment |
— |
— |
— |
— |
— |
— |
— |
22.4 |
|
Bad debt expense - customer bankruptcy |
— |
— |
— |
— |
— |
(6.4) |
— |
6.4 |
|
Fresh-start inventory-related expense (4) |
244.5 |
— |
— |
244.5 |
298.7 |
— |
— |
298.7 |
|
As adjusted: |
$ 1,183.3 |
$ 504.7 |
$ 110.6 |
$ 571.9 |
$ 1,293.5 |
$ 543.9 |
$ 126.5 |
$ 674.9 |
(1) |
Includes |