Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Taro Provides Third Quarter and Fiscal Year to Date Results



  Taro Provides Third Quarter and Fiscal Year to Date Results

              Favorable Performance Over 2011 Periods Continues

Business Wire

HAWTHORNE, N.Y. -- February 4, 2013

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                       Year to Date
                                                              
                           December 31,                        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             11,838           8,867              34,306           23,609
    development, net
    Selling,
    marketing,               24,053           21,930             75,612           71,458
    general and
    administrative
    Impairment               -                784                -                784         
    Operating income         104,035          74,468             265,433          170,564
                                                                                                
    Financial
    Expenses, net:
    Interest and
    other financial          (581       )     315                (440       )     2,445
    (income)
    expenses, net
    Foreign exchange         (1,992     )     6,312              (1,736     )     (7,329     )
    (income) expense
    Other income             1,359            (565       )       1,952            358         
    (loss), net
    Income before            107,967          67,276             269,561          175,806
    income taxes
    Tax expense              18,779           4,584              51,713           18,183      
    Income from
    continuing               89,188           62,692             217,848          157,623
    operations
                                                                                                
    Net loss from
    discontinued             (37        )     (344       )       (44        )     (298       )
    operations
    Net income               89,151           62,348             217,804          157,325
    Net income
    (loss)
    attributable to          374              (52        )       765              303         
    non-controlling
    interest
                                                                                                
    Net income
    attributable to        $ 88,777         $ 62,400           $ 217,039        $ 157,022     
    Taro
                                                                                                
    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                   7,430               15,780
deposits
Marketable securities                        3,172               7,835
Accounts receivable and other:
Trade, net                                   134,590             111,130
Other receivables and prepaid                109,711             98,501
expenses
Inventories                                  110,732             109,638
Long-term assets held for sale,              69                  71
net
TOTAL CURRENT ASSETS                         841,672             653,661
                                                                              
Long-term receivables and other              27,929              19,972
assets
Property, plant and equipment,               145,762             150,750
net
Other assets                                 29,945              32,041
TOTAL ASSETS                              $  1,045,308       $   856,424
                                                                              
LIABILITIES AND SHAREHOLDERS’
EQUITY
                                                                              
CURRENT LIABILITIES:
Current maturities of long-term           $  11,086          $   10,957
debt
Trade payables and other current             162,756             187,942
liabilities
TOTAL CURRENT LIABILITIES                    173,842             198,899
                                                                              
Long-term debt, net of current               17,244              27,949
maturities
Deferred taxes and other                     6,116               6,618
long-term liabilities
TOTAL LIABILITIES                            197,202             233,466
                                                                              
Taro shareholders’ equity                    843,391             619,008
Non-controlling interest                     4,715               3,950
TOTAL LIABILITIES AND                     $  1,045,308       $   856,424
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:
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              106              571
and marketable securities, net
Decrease in long-term debt due to              (23      )       (2,971  )
currency fluctuations
Increase in trade receivables, net             (23,417  )       (39,295 )
Change in derivative instruments,              1,048            6,070
net
Increase in other receivables,                 (10,622  )       (23,544 )
prepaid expenses and other assets
Increase in inventories, net                   (1,021   )       (22,872 )
Effect of exchange differences on              367              (2,881  )
inter-company balances
(Decrease) increase in trade and               (24,647  )       69,802   
other payables and liabilities
Net cash provided by operating                 173,096          157,049  
activities
 
Investing Activities:
Purchase of property, plant &                  (6,183   )       (5,406  )
equipment
Investment in other intangible                 (765     )       -
assets
(Investment in) proceeds from
long-term security deposits and                (5,289   )       1,127
other assets
Investment in short-term bank                  (126,415 )       (49,928 )
deposits
Proceeds from (investment in)                  8,350            (15,562 )
restricted bank deposits
Proceeds from sale of long-lived               1                431      
assets
Net cash used in investing                     (130,301 )       (69,338 )
activities
                                                                              
Financing Activities:
Proceeds from issuance of shares,              5,877            296
net
Repayments of long-term debt                   (10,554  )       (12,907 )
Repayments of short-term bank debt,            -                (2,428  )
net
Net cash used in financing                     (4,677   )       (15,039 )
activities
                                                                              
Effect of exchange rate changes                611              (1,543  )
Net increase in cash                           38,729           71,129
Cash at beginning of period                    238,266          78,872   
                                                                              
Cash at end of period                        $ 276,995        $ 150,001  
                                                                              

Contact:

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
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement