Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Mallinckrodt plc | a8-kshell.htm |
Exhibit 99.1 | ||||||||||||
THE PHARMACEUTICALS BUSINESS OF COVIDIEN PLC | ||||||||||||
COMBINED STATEMENTS OF INCOME (Unaudited) | ||||||||||||
(dollars in millions) | ||||||||||||
Six Months Ended | Quarter Ended | |||||||||||
March 29, 2013 | March 29, 2013 | December 28, 2012 | ||||||||||
Net sales | $ | 1,089.3 | $ | 585.3 | $ | 504.0 | ||||||
Cost of sales | 582.3 | 311.8 | 270.5 | |||||||||
Gross profit | 507.0 | 273.5 | 233.5 | |||||||||
Selling, general and administrative expenses | 307.5 | 160.7 | 146.8 | |||||||||
Research and development expenses | 77.6 | 39.2 | 38.4 | |||||||||
Separation costs | 26.4 | 14.4 | 12.0 | |||||||||
Restructuring charges, net | 6.6 | 6.4 | 0.2 | |||||||||
Gain on divestiture | (1.4 | ) | (0.7 | ) | (0.7 | ) | ||||||
Operating income | 90.3 | 53.5 | 36.8 | |||||||||
Other income, net | 0.2 | — | 0.2 | |||||||||
Interest expense | (0.2 | ) | (0.1 | ) | (0.1 | ) | ||||||
Interest income | 0.1 | 0.1 | — | |||||||||
Income from continuing operations before income taxes | 90.4 | 53.5 | 36.9 | |||||||||
Provision for income taxes | 36.1 | 19.0 | 17.1 | |||||||||
Income from continuing operations | 54.3 | 34.5 | 19.8 | |||||||||
Loss from discontinued operations, net of income taxes | (1.1 | ) | (0.5 | ) | (0.6 | ) | ||||||
Net income | $ | 53.2 | $ | 34.0 | $ | 19.2 | ||||||
THE PHARMACEUTICALS BUSINESS OF COVIDIEN PLC | ||||||||||||||||||||
COMBINED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Fiscal Year Ended | Quarter Ended | |||||||||||||||||||
September 28, 2012 | September 28, 2012 | June 29, 2012 | March 30, 2012 | December 30, 2011 | ||||||||||||||||
Net sales | $ | 2,056.2 | $ | 513.1 | $ | 516.3 | $ | 523.1 | $ | 503.7 | ||||||||||
Cost of sales | 1,091.4 | 279.8 | 273.1 | 269.6 | 268.9 | |||||||||||||||
Gross profit | 964.8 | 233.3 | 243.2 | 253.5 | 234.8 | |||||||||||||||
Selling, general and administrative expenses | 551.7 | 140.4 | 137.2 | 144.0 | 130.1 | |||||||||||||||
Research and development expenses | 144.1 | 36.6 | 35.2 | 35.2 | 37.1 | |||||||||||||||
Separation costs | 25.5 | 8.1 | 7.2 | 6.2 | 4.0 | |||||||||||||||
Restructuring charges, net | 11.2 | 0.7 | 5.0 | 1.8 | 3.7 | |||||||||||||||
Gain on divestiture | (2.9 | ) | (0.7 | ) | (0.8 | ) | (0.7 | ) | (0.7 | ) | ||||||||||
Operating income | 235.2 | 48.2 | 59.4 | 67.0 | 60.6 | |||||||||||||||
Other income, net | 1.0 | 0.2 | 0.1 | 0.2 | 0.5 | |||||||||||||||
Interest expense | (0.5 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | ||||||||||
Interest income | 0.4 | — | 0.1 | — | 0.3 | |||||||||||||||
Income from continuing operations before income taxes | 236.1 | 48.3 | 59.5 | 67.1 | 61.2 | |||||||||||||||
Provision for income taxes | 94.8 | 21.0 | 24.4 | 24.8 | 24.6 | |||||||||||||||
Income from continuing operations | 141.3 | 27.3 | 35.1 | 42.3 | 36.6 | |||||||||||||||
Loss from discontinued operations, net of income taxes | (6.7 | ) | (1.1 | ) | (1.9 | ) | (3.4 | ) | (0.3 | ) | ||||||||||
Net income | $ | 134.6 | $ | 26.2 | $ | 33.2 | $ | 38.9 | $ | 36.3 | ||||||||||
THE PHARMACEUTICALS BUSINESS OF COVIDIEN PLC | ||||||||||||
ADJUSTED EBITDA RECONCILIATIONS (Unaudited) | ||||||||||||
(dollars in millions) | ||||||||||||
Six Months Ended | Quarter Ended | |||||||||||
March 29, 2013 | March 29, 2013 | December 28, 2012 | ||||||||||
Net income | $ | 53.2 | $ | 34.0 | $ | 19.2 | ||||||
Adjustments: | ||||||||||||
Interest expense, net | 0.1 | — | 0.1 | |||||||||
Provision for income taxes | 36.1 | 19.0 | 17.1 | |||||||||
Depreciation expense (1) | 49.2 | 24.4 | 24.8 | |||||||||
Amortization expense | 17.7 | 8.8 | 8.9 | |||||||||
Loss from discontinued operations, net of income taxes | 1.1 | 0.5 | 0.6 | |||||||||
Other income, net | (0.2 | ) | — | (0.2 | ) | |||||||
Restructuring charges, net | 6.6 | 6.4 | 0.2 | |||||||||
Separation costs | 26.4 | 14.4 | 12.0 | |||||||||
Adjusted EBITDA | $ | 190.2 | $ | 107.5 | $ | 82.7 | ||||||
(1) Includes restructuring-related accelerated depreciation included in cost of sales of $1.3 million, $0.5 million and $0.8 million for the six months ended March 29, 2013, and quarters ended March 29, 2013 and December 28, 2012, respectively.
NON-GAAP FINANCIAL MEASURES
This schedule presents adjusted EBITDA, a “non-GAAP” financial measure under applicable Securities & Exchange Commission rules and regulations.
Adjusted EBITDA represents earnings before interest, income taxes, depreciation and amortization, adjusted to exclude certain items. These items, if applicable, include discontinued operations; other income, net; separation costs; restructuring charges, net; immediately expensed up-front and milestone payments; acquisition-related costs; and non-cash impairment charges.
We have provided this non-GAAP financial measure because it is used by management, along with financial measures in accordance with accounting principles generally accepted in the U.S. (“GAAP”), to evaluate our operating performance. Management believes that presenting adjusted EBITDA to investors provides useful information about our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
This non-GAAP financial measure should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. Our definition of this non-GAAP measure may differ from similarly titled measures used by others.
THE PHARMACEUTICALS BUSINESS OF COVIDIEN PLC | ||||||||||||||||||||
ADJUSTED EBITDA RECONCILIATIONS (Unaudited) | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Fiscal Year Ended | Quarter Ended | |||||||||||||||||||
September 28, 2012 | September 28, 2012 | June 29, 2012 | March 30, 2012 | December 30, 2011 | ||||||||||||||||
Net income | $ | 134.6 | $ | 26.2 | $ | 33.2 | $ | 38.9 | $ | 36.3 | ||||||||||
Adjustments: | ||||||||||||||||||||
Interest expense (income), net | 0.1 | 0.1 | — | 0.1 | (0.1 | ) | ||||||||||||||
Provision for income taxes | 94.8 | 21.0 | 24.4 | 24.8 | 24.6 | |||||||||||||||
Depreciation expense (1) | 103.6 | 26.5 | 25.4 | 26.8 | 24.9 | |||||||||||||||
Amortization expense | 27.3 | 7.0 | 6.8 | 6.7 | 6.8 | |||||||||||||||
Loss from discontinued operations, net of income taxes | 6.7 | 1.1 | 1.9 | 3.4 | 0.3 | |||||||||||||||
Other income, net | (1.0 | ) | (0.2 | ) | (0.1 | ) | (0.2 | ) | (0.5 | ) | ||||||||||
Restructuring charges, net | 11.2 | 0.7 | 5.0 | 1.8 | 3.7 | |||||||||||||||
Separation costs | 25.5 | 8.1 | 7.2 | 6.2 | 4.0 | |||||||||||||||
Adjusted EBITDA | $ | 402.8 | $ | 90.5 | $ | 103.8 | $ | 108.5 | $ | 100.0 | ||||||||||
(1) Includes restructuring-related accelerated depreciation included in cost of sales of $8.0 million, $1.2 million, $1.4 million, $3.2 million and $2.2 million for the fiscal year ended September 28, 2012, and quarters ended September 28, 2012, June 29, 2012, March 30, 2012 and December 30, 2011, respectively.
NON-GAAP FINANCIAL MEASURES
This schedule presents adjusted EBITDA, a “non-GAAP” financial measure under applicable Securities & Exchange Commission rules and regulations.
Adjusted EBITDA represents earnings before interest, income taxes, depreciation and amortization, adjusted to exclude certain items. These items, if applicable, include discontinued operations; other income, net; separation costs; restructuring charges, net; immediately expensed up-front and milestone payments; acquisition-related costs; and non-cash impairment charges.
We have provided this non-GAAP financial measure because it is used by management, along with financial measures in accordance with accounting principles generally accepted in the U.S. (“GAAP”), to evaluate our operating performance. Management believes that presenting adjusted EBITDA to investors provides useful information about our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
This non-GAAP financial measure should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. Our definition of this non-GAAP measure may differ from similarly titled measures used by others.