Quarter ended
-
Net sales of
$215 million , reflects an increase of$85 million . Last year's quarter net sales were negatively impacted by a$79 million provision for price protection (current quarter's price protection provision was$14 million ). On a pro-forma basis, adjusted for the price protection provisions, the net sales increase would have been 10%. Sales volumes declined 10% as the result of an increase in competitor activity in the U.S. market. -
Gross profit was
$172 million as compared to$85 million . Excluding the impact of the aforementioned price adjustments in both periods, the gross profit increase would have been 13% over the same period last year. - Research and development (R&D) and Selling, marketing, general and administrative expenses remained relatively flat.
-
Operating income increased
$80 million to $134 million , primarily due to the benefits realized from the price adjustments in the prior year. Excluding the non-recurring items, operating income on a comparable basis, would have increased approximately 17%. -
Net income attributable to Taro was
$104 million compared to$46 million , a$58 million increase, resulting in diluted earnings per share of$2.42 compared to$1.08 .
Cash Flow and Balance Sheet Highlights
-
Cash flow provided by operations was
$68 million compared to$36 million for the three months endedJune 30, 2014 . -
Cash, including short-term bank deposits and marketable securities, increased
$77 million to $998 million fromMarch 31, 2015 .
Mr.
FDA Approvals and Filings
The Company recently received approvals from the
Form 20-F Filings with the
On
The Company cautions that the foregoing financial information is presented on an unaudited basis and is subject to change.
About Taro
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
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 or 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 information for fiscal year 2016.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 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
TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (U.S. dollars in thousands, except share data) |
|||||||||||
Three Months Ended June 30, | |||||||||||
2015 | 2014 | ||||||||||
Sales, net | $ | 215,278 | $ | 130,230 | |||||||
Cost of sales | 43,474 | 44,863 | |||||||||
Gross profit | 171,804 | 85,367 | |||||||||
Operating Expenses: | |||||||||||
Research and development | 14,540 | 14,988 | |||||||||
Selling, marketing, general and administrative | 22,892 | 22,386 | |||||||||
Settlements and loss contingencies | - | (6,500 | ) | ||||||||
Operating income | 134,372 | 54,493 | |||||||||
Financial Expenses, net: | |||||||||||
Interest and other financial income | (3,269 | ) | (1,568 | ) | |||||||
Foreign exchange expense | 4,200 | 5,242 | |||||||||
Other income, net | 352 | 406 | |||||||||
Income before income taxes | 133,793 | 51,225 | |||||||||
Tax expense | 30,089 | 4,903 | |||||||||
Income from continuing operations | 103,704 | 46,322 | |||||||||
Net loss from discontinued operations | (31 | ) | (124 | ) | |||||||
Net income | 103,673 | 46,198 | |||||||||
Net income attributable to non-controlling interest | 37 | 100 | |||||||||
Net income attributable to Taro | $ | 103,636 | $ | 46,098 | |||||||
Net income per ordinary share from continuing operations attributable to Taro: | |||||||||||
Basic | $ | 2.42 | $ | 1.08 | |||||||
Diluted | $ | 2.42 | $ | 1.08 | |||||||
Net loss per ordinary share from discontinued operations attributable to Taro: | |||||||||||
Basic | $ (0.00)* | $ (0.00)* | |||||||||
Diluted | $ (0.00)* | $ (0.00)* | |||||||||
Net income per ordinary share attributable to Taro: | |||||||||||
Basic | $ | 2.42 | $ | 1.08 | |||||||
Diluted | $ | 2.42 | $ | 1.08 | |||||||
Weighted-average number of ordinary shares used to compute net income per ordinary share: | |||||||||||
Basic | 42,833,533 | 42,832,648 | |||||||||
Diluted | 42,833,533 | 42,833,325 | |||||||||
*Amount is less than $0.01 | |||||||||||
TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) |
|||||||||
June 30,
2015 |
March 31,
2015 |
||||||||
(unaudited) | (audited) | ||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash and cash equivalents | $ | 438,998 | $ | 481,641 | |||||
Short-term bank deposits | 555,122 | 434,899 | |||||||
Restricted short-term bank deposits | - | 199 | |||||||
Marketable securities | 3,425 | 3,458 | |||||||
Accounts Receivable and other: | |||||||||
Trade, net | 196,795 | 222,427 | |||||||
Other receivables and prepaid expenses | 257,228 | 250,911 | |||||||
Inventories | 119,382 | 120,272 | |||||||
TOTAL CURRENT ASSETS | 1,570,950 | 1,513,807 | |||||||
Long-term receivables | 41,419 | 46,330 | |||||||
Property, plant and equipment, net | 152,902 | 153,045 | |||||||
Other assets | 23,746 | 24,563 | |||||||
TOTAL ASSETS | $ | 1,789,017 | $ | 1,737,745 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
CURRENT LIABILITIES: | |||||||||
Current maturities of long-term debt | $ | 925 | $ | 912 | |||||
Trade payable and other current liabilities | 248,079 | 309,093 | |||||||
TOTAL CURRENT LIABILITIES | 249,004 | 310,005 | |||||||
Long -term debt, net of current maturities | 4,740 | 4,976 | |||||||
Deferred income taxes and other long-term liabilities | 5,260 | 5,381 | |||||||
TOTAL LIABILITIES | 259,004 | 320,362 | |||||||
Taro shareholders' equity | 1,524,312 | 1,411,720 | |||||||
Non-controlling interest | 5,701 | 5,663 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,789,017 | $ | 1,737,745 | |||||
TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (U.S. dollars in thousands) |
|||||||||||
Three Months Ended June 30, | |||||||||||
2015 | 2014 | ||||||||||
Operating Activities |
|||||||||||
Net Income | $ | 103,673 | $ | 46,198 | |||||||
Adjustments required to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 3,913 | 3,964 | |||||||||
Gain (loss) on sale of marketable securities and long-lived assets | 48 | (39 | ) | ||||||||
Increase in long-term debt due to currency fluctuations | - | 206 | |||||||||
Decrease in trade receivables | 25,809 | 35,636 | |||||||||
Change in derivative instruments, net | (5,198 | ) | (3,989 | ) | |||||||
Increase in other receivables, prepaid expenses and other assets | (5,785 | ) | (42,651 | ) | |||||||
Decrease (increase) in inventories | 1,317 | (8,656 | ) | ||||||||
Foreign exchange effect on intercompany balances | 1,716 | 5,209 | |||||||||
Decrease in trade and other payables and accruals | (57,226 | ) | (144 | ) | |||||||
Net cash provided by operating activities | 68,267 | 35,734 | |||||||||
Investing Activities: | |||||||||||
Purchase of property plant & equipment |
(2,393 | ) | (6,058 | ) | |||||||
(Investment in) proceeds from sale of property plant & equipment and other intangible assets |
(15 | ) | 78 | ||||||||
Investment in long-term deposits and other assets | (20,000 | ) | (14,708 | ) | |||||||
(Investment in) proceeds from short-term and bank deposits | (92,124 | ) | 90,078 | ||||||||
Investment in marketable securities, net | (16 | ) | - | ||||||||
Net cash (used in) provided by investing activities | (114,548 | ) | 69,390 | ||||||||
Financing Activities: | |||||||||||
Proceeds from the issuance of shares, net | - | 13 | |||||||||
Repayments of long-term debt | (223 | ) | (209 | ) | |||||||
Net cash used in financing activities | (223 | ) | (196 | ) | |||||||
Effect of exchange rate changes | 3,861 | 2,978 | |||||||||
Net (decrease) increase in cash | (42,643 | ) | 107,906 | ||||||||
Cash at beginning of period | 481,641 | 209,967 | |||||||||
Cash at end of period | $ | 438,998 | $ | 317,873 |
View source version on businesswire.com:http://www.businesswire.com/news/home/20150806006668/en/
Source:
Taro Pharmaceutical Industries Ltd.
Michael Kalb, GVP, CFO, 914-345-9001
[email protected]
or
William J. Coote, 914-345-9001
[email protected]