Mallinckrodt Slips To Loss In Q3 - Quick Facts

(RTTNews) - Mallinckrodt plc. (MNK) reported that its third quarter of 2013 net loss was $27.9 million, or $0.48 per share, compared to net income of $33.2 million, or $0.58 per share, in the year-ago period.

The net loss in the latest-period reflected an increase in raw material costs, restructuring charges of $11.3 million, as well as $27.5 million of corporate build-out and $44.2 million of separation costs relating to Mallinckrodt's June 28, 2013 spin-off from Covidien plc. (COV). Separation costs include legal, accounting, tax, and other professional fees.

On a non-GAAP basis, adjusted net income for the third quarter was $28.4 million, down from $50.6 million a year ago. Non-GAAP adjusted earnings per share were $0.49, compared with $0.88 last year. Third fiscal quarter 2013 adjusted net income, all net of tax, excluded a $42.5 million of separation costs, $8.0 million of restructuring charges, $5.6 million of amortization expense, and a $0.2 million loss on discontinued operations.

Net sales for the third quarter were $570.0 million, an increase of 10.4%, compared with $516.3 million in the prior year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.79 per share and revenues of $560.17 million for the quarter. Analysts' estimates typically exclude special items.

Mallinckrodt updated the guidance for fiscal 2013 that was provided on May 3, 2013. Adjusted EBITDA margin is now expected to be in the range of 17% to 19%, compared to previous estimate of 17% to 21%. Total Mallinckrodt sales growth is anticipated to be in the range of 8% to 10%, compared to previous outlook of 7% to 11%. Capital expenditures are anticipated to remain in the range of $140 million to $160 million.