Taro Provides Results for Quarter Ended June 30, 2021
Quarter ended
- Net sales increased
$29.5 million , or 25.1%, to$147.1 million . - Gross profit increased
$12.8 million to$77.7 million (52.8% of net sales compared to 55.2%). - Research and development expenses of
$13.0 million were in line with the prior year quarter. - Selling, marketing, general and administrative expenses of
$24.0 million , increased$1.7 million . - Settlements and loss contingencies of
$60.0 million reflect an additional legal contingency provision related to ongoing multi-jurisdiction civil antitrust matters. In the prior year quarter, settlements and loss contingencies of$478.9 million reflects the one-time settlement charge of$418.9 million related to the global resolution of theDepartment of Justice (DOJ) investigations into theU.S. generic pharmaceutical industry; and a provision of$60.0 million related to the multi-jurisdiction civil antitrust matters; however, there can be no assurance as to the ultimate outcome. - Operating loss of
$(19.2) million compared to$(449.2) million . Excluding the settlement and loss contingencies charges in both periods, operating income was$40.8 million as compared to$29.8 million , an increase of$11.0 million , and as a percentage of net sales was 27.8% as compared to 25.3%. - Interest and other financial income of
$3.0 million decreased$4.3 million , reflecting the continuing lower global interest rate environment. - Foreign Exchange expense of
$0.3 million compared to income of$0.2 million in the comparable quarter ─ an unfavorable impact of$0.5 million . - Tax expense of
$2.7 million compared to$8.9 million . Excluding the impact from the settlement and loss contingencies charges, the effective tax rate for the quarter was 6.1% as compared to 23.4%. The reduced tax rate is primarily the result of acquired net operating losses. - Net loss attributable to Taro was
$(18.8) million as compared to$(434.9) million . Excluding the settlement and loss contingencies charges in both periods, net income was$41.2 million compared to$29.0 million . Diluted loss per share for the quarter was$(0.50) as compared to$(11.37) . Excluding the settlement and loss contingencies charges in the both periods, diluted earnings per share was$1.09 as compared to$0.76 .
Cash Flow and Balance Sheet Highlights
- Cash flow provided by operations was
$44.0 million compared to$64.1 million for the three months endedJune 30, 2020 . - As of
June 30, 2021 , cash and cash equivalents and marketable securities (both short and long-term) of$1.59 billion increased$13.5 million fromMarch 31, 2021 . Cash and cash equivalents reflects the impact from the share repurchases of$18.3 million .
Mr.
FDA Approvals and Filings
The Company recently received an approval from the
Share Repurchase Program – Maximizing Shareholder Value
On
During the quarter, the Company repurchased 254,717 shares at an average price of
Form 20-F Filings with the
On
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Taro 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 2022. 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
**Financial Tables Follow**
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) ( |
|||||||
Quarter Ended |
|||||||
|
2021 |
|
|
2020 |
|
||
Sales, net |
$ |
147,113 |
|
$ |
117,634 |
|
|
Cost of sales |
|
69,415 |
|
|
52,688 |
|
|
Gross profit |
|
77,698 |
|
|
64,946 |
|
|
Operating Expenses: | |||||||
Research and development |
|
12,952 |
|
|
12,932 |
|
|
Selling, marketing, general and administrative |
|
23,976 |
|
|
22,248 |
|
|
Settlements and loss contingencies |
|
60,000 |
|
|
478,924 |
|
|
Operating loss * |
|
(19,230 |
) |
|
(449,158 |
) |
|
Financial income, net: | |||||||
Interest and other financial income |
|
(3,042 |
) |
|
(7,310 |
) |
|
Foreign exchange expense (income) |
|
275 |
|
|
(197 |
) |
|
Other gain, net |
|
384 |
|
|
549 |
|
|
Loss before income taxes |
|
(16,079 |
) |
|
(441,102 |
) |
|
Tax expense |
|
2,688 |
|
|
8,854 |
|
|
Net loss |
|
(18,767 |
) |
|
(449,956 |
) |
|
Net loss attributable to non-controlling interest |
|
— |
|
|
(15,038 |
) |
|
Net loss attributable to Taro * |
$ |
(18,767 |
) |
$ |
(434,918 |
) |
|
Net loss per ordinary share attributable to Taro: | |||||||
Basic and Diluted * |
$ |
(0.50 |
) |
$ |
(11.37 |
) |
|
Weighted-average number of shares used to compute net loss per share: | |||||||
Basic and Diluted |
|
37,794,430 |
|
|
38,258,337 |
|
* Excluding the settlement and loss contingencies charges of |
SUMMARY CONSOLIDATED BALANCE SHEETS ( |
||||||
|
|
|||||
|
2021 |
|
2021 |
|
||
ASSETS | (unaudited) | (audited) | ||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents |
$ |
614,888 |
$ |
605,177 |
|
|
Marketable securities |
|
410,590 |
|
418,480 |
|
|
Accounts receivable and other: | ||||||
Trade, net |
|
216,833 |
|
213,539 |
|
|
Other receivables and prepaid expenses |
|
55,596 |
|
53,347 |
|
|
Inventories |
|
182,860 |
|
180,292 |
|
|
TOTAL CURRENT ASSETS |
|
1,480,767 |
|
1,470,835 |
|
|
Marketable securities |
|
568,878 |
|
557,209 |
|
|
Property, plant and equipment, net |
|
202,031 |
|
205,508 |
|
|
Deferred income taxes |
|
130,832 |
|
142,007 |
|
|
Other assets |
|
30,797 |
|
31,314 |
|
|
TOTAL ASSETS |
$ |
2,413,305 |
$ |
2,406,873 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Trade payables |
$ |
62,066 |
$ |
61,166 |
|
|
Other current liabilities |
|
667,084 |
|
615,135 |
|
|
TOTAL CURRENT LIABILITIES |
|
729,150 |
|
676,301 |
|
|
Deferred taxes and other long-term liabilities |
|
26,099 |
|
35,115 |
|
|
TOTAL LIABILITIES |
|
755,249 |
|
711,416 |
|
|
Taro shareholders' equity |
|
1,658,056 |
|
1,703,649 |
|
|
Non-controlling interest |
|
— |
|
(8,192 |
) |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
2,413,305 |
$ |
2,406,873 |
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) ( |
|||||||
Quarter Ended |
|||||||
|
2021 |
|
|
2020 |
|
||
Cash flows from operating activities: | |||||||
Net loss |
$ |
(18,767 |
) |
$ |
(449,956 |
) |
|
Adjustments required to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization |
|
6,346 |
|
|
5,571 |
|
|
Realized gain on sale of long-lived assets |
|
(4 |
) |
|
— |
|
|
Change in derivative instruments, net |
|
(166 |
) |
|
(923 |
) |
|
Effect of change in exchange rate on marketable securities and bank deposits |
|
(589 |
) |
|
(1,728 |
) |
|
Deferred income taxes, net |
|
11,244 |
|
|
(2,367 |
) |
|
(Increase) decrease in trade receivables, net |
|
(3,295 |
) |
|
45,921 |
|
|
Increase in inventories, net |
|
(2,568 |
) |
|
(13,150 |
) |
|
Increase in other receivables, income tax receivables, prepaid expenses and other |
|
(2,598 |
) |
|
(3,462 |
) |
|
Increase in trade, income tax, accrued expenses and other payables |
|
52,211 |
|
|
483,957 |
|
|
Expense from amortization of marketable securities bonds, net |
|
2,179 |
|
|
247 |
|
|
Net cash provided by operating activities |
|
43,993 |
|
|
64,110 |
|
|
Cash flows from investing activities: | |||||||
Purchase of plant, property & equipment, net |
|
(3,855 |
) |
|
(5,133 |
) |
|
Investment in other intangible assets |
|
(72 |
) |
|
(63 |
) |
|
Investment in marketable securities, net |
|
(12,500 |
) |
|
(40,825 |
) |
|
Net cash used in investing activities |
|
(16,427 |
) |
|
(46,021 |
) |
|
Cash flows from financing activities: | |||||||
Purchase of treasury stock |
|
(18,319 |
) |
|
— |
|
|
Net cash used in financing activities |
|
(18,319 |
) |
|
— |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
464 |
|
|
601 |
|
|
Increase in cash and cash equivalents |
|
9,711 |
|
|
18,690 |
|
|
Cash and cash equivalents at beginning of period |
|
605,177 |
|
|
513,354 |
|
|
Cash and cash equivalents at end of period |
$ |
614,888 |
|
$ |
532,044 |
|
|
Cash Paid during the year for: | |||||||
Income taxes |
$ |
3,333 |
|
$ |
7,119 |
|
|
Cash Received during the year for: | |||||||
Income taxes |
$ |
2,351 |
|
$ |
— |
|
|
Non-cash investing transactions: | |||||||
Purchase of property, plant and equipment included in accounts payable |
$ |
1,225 |
|
$ |
1,304 |
|
|
Non-cash financing transactions: | |||||||
Purchase of treasury stock |
$ |
430 |
|
$ |
— |
|
|
Purchase (sale) of marketable securities |
$ |
3,179 |
|
$ |
(745 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210727006186/en/
VP, CFO
(914) 345-9001
Daphne.Huang@taro.com
AVP, Treasurer and Investor Relations – Interim CFO
(914) 345-9001
William.Coote@taro.com
Source: