Taro Provides Third Quarter and Fiscal Year to Date Results
Favorable Performance Over 2011 Periods Continues
HAWTHORNE, N.Y.--(BUSINESS WIRE)--
Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the
“Company”) today provided unaudited financial results for the three and
nine month periods ended December 31, 2012.
Quarter ended December 31, 2012 Highlights - compared to December 31,
2011
Net sales of $185.7 million, increased $37.6 million, or 25.4%,
however, sales volumes have slightly declined
Gross profit, as a percentage of net sales was 75.4%, compared to 71.6%
Research and development expenses increased 33.5% to $11.8 million
Selling, marketing, general and administrative expenses, which
included a $3.3 million litigation provision in 2012, increased $2.1
million
Operating income increased to $104.0 million, or 56.0% of net sales,
compared to $74.5 million, or 50.3% of net sales
Net income attributable to Taro was $88.8 million compared to $62.4
million, resulting in diluted earnings per share of $1.98 compared to
$1.40.
Nine months ended December 31, 2012 Highlights - compared to December
31, 2011
Net sales of $505.8 million, increased $107.9 million, or 27.1%,however,
sales volumes have marginally declined
Gross profit, as a percentage of net sales was 74.2%, compared to 66.9%
Research and development expenses increased 45.3% to $34.3 million
Selling, marketing, general and administrative expenses, which
included $11.3 million litigation provisions in 2012, increased $4.2
million
Operating income increased to $265.4 million, or 52.5% of net sales,
compared to $170.6 million, or 42.9% of net sales
Income tax expense increased $33.5 million from $18.2 million to $51.7
million
Net income attributable to Taro was $217.0 million compared to $157.0
million, a $60.0 million increase, resulting in diluted earnings per
share of $4.86 compared to $3.52.
Cash Flow and Balance Sheet Highlights
Cash flow provided by operations for the nine months ended December
31, 2012, as compared to December 31, 2011,was $173.1 million
compared to $157.0 million, primarily due to the payment of income
taxes as reflected in the significant decrease in trade and other
payables
Cash, including marketable securities, increased $152.2 million to
$486.6 million from March 31, 2012.
FDA Approvals and Filings
During the quarter, the Company filed one ANDA with the FDA. With this,
ANDAs representing seventeen products as well as two NDAs await FDA
approval.
About Taro
Taro Pharmaceutical Industries Ltd. is a multinational, science-based
pharmaceutical company, dedicated to meeting the needs of its customers
through the discovery, development, manufacturing and marketing of the
highest quality healthcare products. For further information on Taro
Pharmaceutical Industries Ltd., please visit the Company’s website at www.taro.com.
SAFE HARBOR STATEMENT
The unaudited consolidated financial statements have been prepared on
the same basis as the annual consolidated financial statements and, in
the opinion of management, reflect all adjustments necessary to present
fairly the financial condition and results of operations of the Company.The unaudited consolidated financial statements should be read in
conjunction with the Company’s audited consolidated financial statements
included in the Company’s Annual Report on Form 20-F, as filed with the
SEC.
Certain statements in this release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995.These statements include, but are not limited to,
statements that do not describe historical facts and statements that
refer or relate to events or circumstances the Company “estimates,”
“believes,” or “expects” to happen or similar language, and statements
with respect to the Company’s financial performance, availability of
financial information, and estimates of financial results and financial
information for fiscal year 2013.Although the Company believes
the expectations reflected in such forward-looking statements to be
based on reasonable assumptions, it can give no assurances that its
expectations will be attained.Factors that could cause actual
results to differ include actions of the Company's lenders and
creditors, general domestic and international economic conditions,
industry and market conditions, changes in the Company's financial
position, litigation brought by any party in any court in Israel, the
United States, or any country in which Taro operates, regulatory and
legislative actions in the countries in which Taro operates, and other
risks detailed from time to time in the Company’s SEC reports, including
its Annual Reports on Form 20-F.Forward-looking statements are
applicable only as of the date on which they are made.The
Company undertakes no obligations to update, change or revise any
forward-looking statement, whether as a result of new information,
additional or subsequent developments or otherwise.
**Financial Tables Follow**
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(U.S. dollars in thousands, except share data)
Quarter Ended
December 31,
Year to Date
December 31,
2012
2011
2012
2011
Sales, net
$
185,695
$
148,105
$
505,821
$
397,941
Cost of sales
45,769
42,056
130,470
131,526
Gross Profit
139,926
106,049
375,351
266,415
Operating Expenses:
Research and development, net
11,838
8,867
34,306
23,609
Selling, marketing, general and administrative
24,053
21,930
75,612
71,458
Impairment
-
784
-
784
Operating income
104,035
74,468
265,433
170,564
Financial Expenses, net:
Interest and other financial (income) expenses, net
(581
)
315
(440
)
2,445
Foreign exchange (income) expense
(1,992
)
6,312
(1,736
)
(7,329
)
Other income (loss), net
1,359
(565
)
1,952
358
Income before income taxes
107,967
67,276
269,561
175,806
Tax expense
18,779
4,584
51,713
18,183
Income from continuing operations
89,188
62,692
217,848
157,623
Net loss from discontinued operations
(37
)
(344
)
(44
)
(298
)
Net income
89,151
62,348
217,804
157,325
Net income (loss) attributable to non-controlling interest
374
(52
)
765
303
Net income attributable to Taro
$
88,777
$
62,400
$
217,039
$
157,022
Net income per ordinary share from continuing
operations attributable to Taro:
Basic
$
1.98
$
1.41
$
4.86
$
3.53
Diluted
$
1.98
$
1.41
$
4.86
$
3.53
Net loss per ordinary share from discontinued
operations attributable to Taro:
Basic
($0.00)*
($0.01)
($0.00)*
($0.01)
Diluted
($0.00)*
($0.01)
($0.00)*
($0.01)
Net income per ordinary share attributable to Taro:
Basic
$
1.98
$
1.40
$
4.86
$
3.53
Diluted
$
1.98
$
1.40
$
4.86
$
3.52
Weighted-average number of shares used to compute
net income per share:
Basic
44,725,898
44,474,727
44,651,534
44,527,689
Diluted
44,740,427
44,550,022
44,699,715
44,587,620
* Amount is less than $0.01. May not foot due to rounding.
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited)
(U.S. dollars in thousands)
December 31,
March 31,
2012
2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
276,995
$
238,266
Short-term bank deposits
198,973
72,440
Restricted short-term bank deposits
7,430
15,780
Marketable securities
3,172
7,835
Accounts receivable and other:
Trade, net
134,590
111,130
Other receivables and prepaid expenses
109,711
98,501
Inventories
110,732
109,638
Long-term assets held for sale, net
69
71
TOTAL CURRENT ASSETS
841,672
653,661
Long-term receivables and other assets
27,929
19,972
Property, plant and equipment, net
145,762
150,750
Other assets
29,945
32,041
TOTAL ASSETS
$
1,045,308
$
856,424
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt
$
11,086
$
10,957
Trade payables and other current liabilities
162,756
187,942
TOTAL CURRENT LIABILITIES
173,842
198,899
Long-term debt, net of current maturities
17,244
27,949
Deferred taxes and other long-term liabilities
6,116
6,618
TOTAL LIABILITIES
197,202
233,466
Taro shareholders’ equity
843,391
619,008
Non-controlling interest
4,715
3,950
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
1,045,308
$
856,424
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(U.S. dollars in thousands)
Nine Months Ended December 31,
2012
2011
Operating Activities:
Net income
$
217,804
$
157,325
Adjustments required to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
13,493
14,021
Impairment of long-lived assets
-
784
Share-based compensation expense
8
39
Loss on sale of long-lived assets and marketable securities, net
106
571
Decrease in long-term debt due to currency fluctuations
(23
)
(2,971
)
Increase in trade receivables, net
(23,417
)
(39,295
)
Change in derivative instruments, net
1,048
6,070
Increase in other receivables, prepaid expenses and other assets
(10,622
)
(23,544
)
Increase in inventories, net
(1,021
)
(22,872
)
Effect of exchange differences on inter-company balances
367
(2,881
)
(Decrease) increase in trade and other payables and liabilities
(24,647
)
69,802
Net cash provided by operating activities
173,096
157,049
Investing Activities:
Purchase of property, plant & equipment
(6,183
)
(5,406
)
Investment in other intangible assets
(765
)
-
(Investment in) proceeds from long-term security deposits and other
assets
(5,289
)
1,127
Investment in short-term bank deposits
(126,415
)
(49,928
)
Proceeds from (investment in) restricted bank deposits
Press Release $TARO Taro Pharmaceutical Industries Ltd.
Favorable Performance Over 2011 Periods Continues
HAWTHORNE, N.Y.--(BUSINESS WIRE)-- Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the three and nine month periods ended December 31, 2012.
Quarter ended December 31, 2012 Highlights - compared to December 31, 2011
Nine months ended December 31, 2012 Highlights - compared to December 31, 2011
Cash Flow and Balance Sheet Highlights
FDA Approvals and Filings
During the quarter, the Company filed one ANDA with the FDA. With this, ANDAs representing seventeen products as well as two NDAs await FDA approval.
About Taro
Taro Pharmaceutical Industries Ltd. is a multinational, science-based pharmaceutical company, dedicated to meeting the needs of its customers through the discovery, development, manufacturing and marketing of the highest quality healthcare products. For further information on Taro Pharmaceutical Industries Ltd., please visit the Company’s website at www.taro.com.
SAFE HARBOR STATEMENT
The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments necessary to present fairly the financial condition and results of operations of the Company. The unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 20-F, as filed with the SEC.
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements that do not describe historical facts and statements that refer or relate to events or circumstances the Company “estimates,” “believes,” or “expects” to happen or similar language, and statements with respect to the Company’s financial performance, availability of financial information, and estimates of financial results and financial information for fiscal year 2013. Although the Company believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurances that its expectations will be attained. Factors that could cause actual results to differ include actions of the Company's lenders and creditors, general domestic and international economic conditions, industry and market conditions, changes in the Company's financial position, litigation brought by any party in any court in Israel, the United States, or any country in which Taro operates, regulatory and legislative actions in the countries in which Taro operates, and other risks detailed from time to time in the Company’s SEC reports, including its Annual Reports on Form 20-F. Forward-looking statements are applicable only as of the date on which they are made. The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.
**Financial Tables Follow**
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(U.S. dollars in thousands, except share data)
Quarter Ended
December 31,
Year to Date
December 31,
2012
Operating Expenses:
Financial Expenses, net:
Net income per ordinary share from continuing
operations attributable to Taro:
Net loss per ordinary share from discontinued
operations attributable to Taro:
($0.01)
($0.01)
Weighted-average number of shares used to compute
net income per share:
* Amount is less than $0.01.
May not foot due to rounding.
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(Unaudited)
(U.S. dollars in thousands)
December 31,
March 31,
2012
Accounts receivable and other:
Trade, net
111,130
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(U.S. dollars in thousands)
Nine Months Ended December 31,
2012
2011
Operating Activities:
(Decrease) increase in trade and other payables and liabilities
Purchase of property, plant & equipment
238,266
Taro Pharmaceutical Industries Ltd.
Michael Kalb, 914-345-9001
GVP, CFO
Michael.Kalb@taro.com
or
William J. Coote, 914-345-9001
VP, Treasurer
William.Coote@taro.com
Source: Taro Pharmaceutical Industries Ltd.