[February 10, 2016] |
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Taro Provides Results for December 31, 2015
Taro Pharmaceutical Industries Ltd. (NYSE:TARO) ("Taro" or the
"Company") today provided unaudited financial results for the three and
nine months ended December 31, 2015.
Quarter ended December 31, 2015 Highlights - compared to December 31,
2014
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Net sales of $258.3 million, increased $20.6 million, or 8.7%, on
marginally increased volumes
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Gross profit of $214.2 million increased $20.7 million as Cost of
Goods remained flat; and as a percentage of net sales, was 82.9%
compared to 81.4%
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Research and development expenses increased 39.9% to $17.9 million
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Selling, marketing, general and administrative expenses increased $1.5
million to $22.9 million
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Operating income increased $14.1 million to $173.4 million
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Net Income was favorably impacted by a $15.6 million increase in
foreign exchange (FX) income to $23.9 million, principally the result
of the strength of the U.S. dollar vs. Canadian dollar
-
Tax expense decreased $16.3 million to $11.8 million resulting in an
effective tax rate of 5.9% compared to 16.5%; we expect the tax
benefits realized this quarter to continue for the remainder of the
2015/16 fiscal year
-
Net income attributable to Taro was $189.0 million compared to $142.5
million, resulting in diluted earnings per share of $4.41 compared to
$3.33
Nine Months ended December 31, 2015 Highlights - compared to December
31, 2014
-
Net sales of $685.7 million, increased $66.9 million, or 10.8%,
despite a 5% volume decline and a change in product mix
-
Gross profit increased $77.8 million to $554.7 million and as a
percentage of net sales, was 80.9% compared to 77.1%
-
Research and development expenses increased 23.0% to $51.2 million
-
Selling, marketing, general and administrative expenses increased $4.4
million to $69.8 million
-
Operating income increased $58.7 million to $432.7 million
-
FX income increased $45.4 million to $54.5 million
-
Tax expense increased $13.2 million due to the $106.6 million increase
in pre-tax income, however the effective tax rate decreased from 15.1%
to 14.5%
-
Net income attributable to Taro was $426.0 million compared to $332.0
million, a $94.0 million increase, resulting in diluted earnings per
share of $9.95 compared to $7.75
Mr. Kal Sundaram, Taro's CEO stated, "We are satisfied with our overall
performance, which is in-line with our expectations, given a competitive
landscape that continues to intensify." Mr. Sundaram continued,
"Regarding Keveyis, the first medicine approved by the FDA for the
treatment of primary periodic paralysis, the patient feedback we have
received is extremely positive, however its use is less than
anticipated. We will continue to invest in medical and marketing
initiatives to build the brand and monitor the sales performance of
Keveyis in the coming quarters."
Cash Flow and Balance Sheet Highlights
-
Cash provided by operations for the period ended December 31, 2015 was
$239.7 million, as compared to $192.8 million at December 31, 2014
-
Cash, including marketable securities of $1.2 billion, increased
$262.5 million from March 31, 2015
-
During the quarter, the Company paid-off its remaining debt of $5.9
million
FDA Approvals and Filings
The Company recently received an approval from the U.S. Food and Drug
Administration ("FDA") for an Abbreviated New Drug Application ("ANDA")
Naftifine Hydrochloride Cream USP, 2%. The Company currently has a total
of thirty-five ANDAs awaiting 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 (News - Alert).
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 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.
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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (U.S. dollars in thousands, except share data)
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Quarter Ended
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Nine Months Ended
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December 31,
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December 31,
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2015
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2014
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2015
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2014
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Sales, net
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$
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258,342
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$
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237,700
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$
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685,678
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$
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618,764
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Cost of sales
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44,166
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44,206
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128,994
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141,814
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Impairment
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-
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-
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1,947
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-
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Gross profit
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214,176
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193,494
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554,737
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476,950
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Operating Expenses:
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Research and development
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17,944
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12,829
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51,212
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41,645
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Selling, marketing, general and administrative
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22,866
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21,345
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69,804
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65,415
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Settlements and loss contingencies
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(27
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-
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973
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(4,200
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Operating income
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173,393
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159,320
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432,748
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374,090
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Financial Income, net:
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Interest and other financial income
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(3,038
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(2,968
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(9,708
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(6,590
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)
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Foreign exchange income
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(23,887
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(8,264
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(54,545
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(9,153
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Other gain, net
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710
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362
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1,820
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2,343
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Income before income taxes
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201,028
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170,914
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498,821
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392,176
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Tax expense
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11,831
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28,174
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72,363
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59,187
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Income from continuing operations
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189,197
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142,740
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426,458
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332,989
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Net loss from discontinued operations
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(101
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(126
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(202
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(473
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)
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Net income
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189,096
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142,614
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426,256
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332,516
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Net income attributable to non-controlling interest
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98
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132
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274
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551
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Net income attributable to Taro
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$
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188,998
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$
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142,482
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$
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425,982
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$
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331,965
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Net income per ordinary share from continuing operations attributable
to Taro:
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Basic
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$
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4.41
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$
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3.33
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$
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9.95
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$
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7.76
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Diluted
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$
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4.41
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$
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3.33
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$
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9.95
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$
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7.76
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Net loss per ordinary share from discontinued operations attributable
to Taro:
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Basic
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$
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(0.00
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*
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$
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(0.00
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)
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*
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$
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(0.00
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*
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$
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(0.01
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Diluted
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$
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(0.00
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*
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$
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(0.00
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*
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$
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(0.00
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*
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$
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(0.01
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Net income per ordinary share attributable to Taro:
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Basic
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$
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4.41
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$
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3.33
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$
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9.95
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$
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7.75
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Diluted
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$
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4.41
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$
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3.33
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$
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9.95
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$
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7.75
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Weighted-average number of shares used to compute net income
per share:
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Basic
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42,833,533
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42,833,533
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42,833,533
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42,833,162
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Diluted
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42,833,533
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42,833,533
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42,833,533
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42,833,452
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* Amount is less than $0.01
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May not foot due to rounding.
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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
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December 31,
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March 31,
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2015
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2015
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ASSETS
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(unaudited)
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(audited)
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CURRENT ASSETS:
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Cash and cash equivalents
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$
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523,214
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$
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481,641
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Short-term bank deposits
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655,982
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434,899
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Restricted short-term bank deposits
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-
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199
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Marketable securities
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3,502
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3,458
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Accounts receivable and other:
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Trade, net
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279,538
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222,427
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Other receivables and prepaid expenses
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275,025
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250,911
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Inventories
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126,875
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120,272
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Long-term assets held for sale, net
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1,034
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-
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TOTAL CURRENT ASSETS
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1,865,170
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1,513,807
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Long-term receivables and other assets
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31,356
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46,330
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Property, plant and equipment, net
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153,343
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153,045
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Other assets
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20,604
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|
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24,563
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TOTAL ASSETS
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|
$
|
2,070,473
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$
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1,737,745
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Current maturities of long-term debt
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$
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-
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$
|
912
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Trade payables and other current liabilities
|
|
|
|
|
290,418
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|
|
|
309,093
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TOTAL CURRENT LIABILITIES
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|
|
290,418
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|
|
|
310,005
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Long-term debt, net of current maturities
|
|
|
|
|
-
|
|
|
|
4,976
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Deferred taxes and other long-term liabilities
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|
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|
|
4,595
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|
|
|
5,381
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TOTAL LIABILITIES
|
|
|
|
|
295,013
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|
|
|
320,362
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|
|
|
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Taro shareholders' equity
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|
|
|
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1,769,522
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|
|
|
1,411,720
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Non-controlling interest
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|
|
|
|
5,938
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|
|
|
5,663
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
$
|
2,070,473
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|
|
$
|
1,737,745
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|
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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
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Nine Months Ended December 31,
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2015
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2014
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(unaudited)
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(unaudited)
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Operating Activities:
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Net income
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$
|
426,256
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|
|
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$
|
332,516
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|
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Adjustments required to reconcile net income to net cash
provided by operating activities:
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Depreciation and amortization
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11,304
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|
|
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11,933
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Loss (gain) on sale of long-lived assets and marketable securities,
net
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|
|
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91
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|
|
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(199
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)
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Impairment for long-lived assets
|
|
|
|
|
1,947
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|
|
|
|
-
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|
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Decrease in long-term debt due to currency fluctuations
|
|
|
|
|
-
|
|
|
|
|
(1,030
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)
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Increase in trade receivables, net
|
|
|
|
|
(58,129
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)
|
|
|
|
(87,406
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)
|
|
Change in derivative instruments, net
|
|
|
|
|
(6,242
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)
|
|
|
|
4,965
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|
|
Increase in other receivables, prepaid expenses and other assets
|
|
|
|
|
(60,545
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)
|
|
|
|
(68,213
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)
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Increase in inventories, net
|
|
|
|
|
(9,878
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)
|
|
|
|
(9,063
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)
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Effect of change in exchange rate on bank and inter-company balances
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|
|
|
|
(52,860
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)
|
|
|
|
(11,436
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)
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|
(Decrease) increase in trade and other payables and liabilities
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|
|
|
|
(12,233
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)
|
|
|
|
20,775
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|
|
Net cash provided by operating activities
|
|
|
|
|
239,711
|
|
|
|
|
192,842
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|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
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Purchase of plant, property & equipment
|
|
|
|
|
(13,111
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)
|
|
|
|
(14,019
|
)
|
|
(Investment in) proceeds from other intangible assets
|
|
|
|
|
(134
|
)
|
|
|
|
60
|
|
|
Proceeds from (investment in) other assets
|
|
|
|
|
35,000
|
|
|
|
|
(31,050
|
)
|
|
Investment in long-term security deposits and other assets
|
|
|
|
|
(8,808
|
)
|
|
|
|
(17,810
|
)
|
|
Investment in short-term bank deposits
|
|
|
|
|
(200,676
|
)
|
|
|
|
(42,321
|
)
|
|
Proceeds from restricted bank deposits
|
|
|
|
|
199
|
|
|
|
|
23
|
|
|
(Investment in) proceeds from the sale of marketable securities
|
|
|
|
|
(105
|
)
|
|
|
|
81
|
|
|
Net cash used in investing activities
|
|
|
|
|
(187,635
|
)
|
|
|
|
(105,036
|
)
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance of shares, net
|
|
|
|
|
-
|
|
|
|
|
26
|
|
|
Repayment of long-term debt
|
|
|
|
|
(5,888
|
)
|
|
|
|
(10,725
|
)
|
|
Net cash used in financing activities
|
|
|
|
|
(5,888
|
)
|
|
|
|
(10,699
|
)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
|
|
|
|
|
(4,615
|
)
|
|
|
|
(3,855
|
)
|
|
Net increase in cash
|
|
|
|
|
41,573
|
|
|
|
|
73,252
|
|
|
Cash at beginning of period
|
|
|
|
|
481,641
|
|
|
|
|
209,967
|
|
|
Cash at end of period
|
|
|
|
$
|
523,214
|
|
|
|
$
|
283,219
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160210006628/en/
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