Taro Provides Results for Year Ended March 31, 2016
Quarter ended
- Net sales of
$265.1 million , increased$20.9 million , or 8.6%, on relatively flat volumes - Gross profit of
$224.2 million increased$24.6 million , as Cost of Goods decreased$3.8 million ; and as a percentage of net sales increased to 84.6% as compared to 81.8% - Research and development expenses decreased 16.4% to
$19.9 million - Selling, marketing, general and administrative expenses remained relatively flat
- Operating income increased
$28.2 million to $181.7 million - Net Income was unfavorably impacted by an
$80.0 million fluctuation in foreign exchange (FX) from income of$32.5 million in 2015 to an expense of$47.5 million in 2016, principally the result of the strength of the Canadian dollar vs. U.S. dollar - Tax expense decreased
$13.9 million to $23.0 million resulting in an effective tax rate of 16.6% compared to 19.5% - Net income attributable to Taro was
$115.0 million compared to$152.3 million , resulting in diluted earnings per share of$2.68 compared to$3.56
Year ended
- Net sales of
$950.8 million , increased$87.8 million , or 10.2%, despite a 5% volume decline - Gross profit increased
$102.4 million to $779.0 million and as a percentage of net sales, was 81.9% compared to 78.4% - Research and development expenses increased 8.6% to
$71.2 million - Selling, marketing, general and administrative expenses increased
$4.7 million to $92.4 million - Settlements and loss contingencies was a
$1.0 million expense compared to a$4.2 million creditin 2015 - Operating income increased
$86.8 million to $614.5 million - FX income decreased
$34.6 million to $7.1 million , principally the result of the strength of the Canadian dollar vs. U.S. dollar in the fourth quarter of 2016 - Tax expense remained relatively flat, however the effective tax rate improved to 15.0% from 16.5%
- Net income attributable to Taro was
$540.9 million compared to$484.3 million , a$56.7 million increase, resulting in diluted earnings per share of$12.62 compared to$11.31
Cash Flow and Balance Sheet Highlights - compared to
- Cash, including marketable securities increased to
$1.2 billion from$920.2 million - Cash provided by operations for the period ended
March 31, 2016 was$395.1 million , as compared to$406.8 million - Debt of
$5.9 million was paid-off during the year
Mr.
FDA Approvals and Filings
The Company recently received approvals from the
Share Repurchase Program
On
Period |
Total Number of |
Average |
Dollar Value of |
||||||
March 17, 2016 - March 31, 2016 | 67,339 | $140.30 | |||||||
April 1, 2016 - May 24, 2016 | 599,504 | $135.76 | |||||||
TOTAL | 666,843 | $136.22 |
$159,165,488 |
|
|||||
Keveyis
On
Earnings Call (
As previously announced, the Company will host an earnings call at
- Participant Toll-Free Dial-In Number: +1 (844) 421-0601 ID: 18504447
- Participant International Dial-In Number: +1 (716) 247-5800 ID: 18504447
- Web-cast: More details are provided on our website, www.taro.com
To participate in the audio call, please dial the numbers provided above five to ten minutes ahead of the scheduled start time. The operator will provide instructions on asking questions before the call. The transcript of the event will be available on the Company’s website at www.taro.com. An audio playback will be available for fifteen (15) days following the call.
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 2017. 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 | ||||||||||||||||
(U.S. dollars in thousands, except share data) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||||
Sales, net | $ | 265,073 | $ | 244,180 | $ | 950,751 | $ | 862,944 | ||||||||
Cost of sales | 40,749 | 44,545 | 169,743 | 186,359 | ||||||||||||
Impairment | 95 | - | 2,042 | - | ||||||||||||
Gross profit | 224,229 | 199,635 | 778,966 | 676,585 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Research and development | 19,948 | 23,865 | 71,160 | 65,510 | ||||||||||||
Selling, marketing, general and administrative | 22,561 | 22,229 | 92,365 | 87,644 | ||||||||||||
Settlements and loss contingencies | - | - | 973 | (4,200 | ) | |||||||||||
Operating income | 181,720 | 153,541 | 614,468 | 527,631 | ||||||||||||
Financial (income) expense, net: | ||||||||||||||||
Interest and other financial income | (2,896 | ) | (3,087 | ) | (12,604 | ) | (9,677 | ) | ||||||||
Foreign exchange expense (income) | 47,478 | (32,481 | ) | (7,068 | ) | (41,634 | ) | |||||||||
Other gain, net | 860 | 395 | 2,680 | 2,738 | ||||||||||||
Income before income taxes | 137,999 | 189,504 | 636,820 | 581,680 | ||||||||||||
Tax expense | 22,950 | 36,872 | 95,313 | 96,059 | ||||||||||||
Income from continuing operations | 115,049 | 152,632 | 541,507 | 485,621 | ||||||||||||
Net loss from discontinued operations attributable to Taro | (34 | ) | (314 | ) | (236 | ) | (787 | ) | ||||||||
Net income | 115,015 | 152,318 | 541,271 | 484,834 | ||||||||||||
Net income attributable to non-controlling interest | 65 | 26 | 339 | 577 | ||||||||||||
Net income attributable to Taro | $ | 114,950 | $ | 152,292 | $ | 540,932 | $ | 484,257 | ||||||||
Net income per ordinary share from continuing operations attributable to Taro: | ||||||||||||||||
Basic | $ | 2.68 | $ | 3.56 | $ | 12.63 | $ | 11.32 | ||||||||
Diluted | $ | 2.68 | $ | 3.56 | $ | 12.63 | $ | 11.32 | ||||||||
Net loss per ordinary share from discontinued operations attributable to Taro: | ||||||||||||||||
Basic | $ | (0.00 | ) | * | $ | (0.00 | ) | * | $ | (0.01 | ) | $ | (0.01 | ) | ||
Diluted | $ | (0.00 | ) | * | $ | (0.00 | ) | * | $ | (0.01 | ) | $ | (0.01 | ) | ||
Net income per ordinary share attributable to Taro: | ||||||||||||||||
Basic | $ | 2.68 | $ | 3.56 | $ | 12.62 | $ | 11.31 | ||||||||
Diluted | $ | 2.68 | $ | 3.56 | $ | 12.62 | $ | 11.31 | ||||||||
Weighted-average number of shares used to compute net income per share: | ||||||||||||||||
Basic | 42,828,338 | 42,833,533 | 42,832,241 | 42,833,533 | ||||||||||||
Diluted | 42,828,338 | 42,833,533 | 42,832,241 | 42,833,750 | ||||||||||||
* Amount is less than $0.01 | ||||||||||||||||
May not foot due to rounding. |
TARO PHARMACEUTICAL INDUSTRIES LTD. | ||||||||
SUMMARY CONSOLIDATED BALANCE SHEETS | ||||||||
(U.S. dollars in thousands) | ||||||||
March 31, | March 31, | |||||||
2016 |
2015 |
|||||||
ASSETS | (unaudited) | (audited) | ||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 576,757 | $ | 481,641 | ||||
Short-term and current maturities of long-term bank deposits | 648,297 | 434,899 | ||||||
Restricted short-term bank deposits | - | 199 | ||||||
Marketable securities | 3,572 | 3,458 | ||||||
Accounts receivable and other: | ||||||||
Trade, net | 238,611 | 222,427 | ||||||
Other receivables and prepaid expenses | 270,724 | 250,911 | ||||||
Inventories | 138,553 | 120,272 | ||||||
Long-term assets held for sale, net | 1,081 | - | ||||||
TOTAL CURRENT ASSETS | 1,877,595 | 1,513,807 | ||||||
Long-term bank deposits | 115,173 | 30,175 | ||||||
Property, plant and equipment, net | 159,459 | 153,045 | ||||||
Other assets | 35,806 | 40,718 | ||||||
TOTAL ASSETS | $ | 2,188,033 | $ | 1,737,745 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current maturities of long-term debt | $ | - | $ | 912 | ||||
Trade payables and other current liabilities | 245,462 | 309,093 | ||||||
TOTAL CURRENT LIABILITIES | 245,462 | 310,005 | ||||||
Long-term debt, net of current maturities | - | 4,976 | ||||||
Deferred taxes and other long-term liabilities | 5,427 | 5,381 | ||||||
TOTAL LIABILITIES | 250,889 | 320,362 | ||||||
Taro shareholders' equity | 1,931,142 | 1,411,720 | ||||||
Non-controlling interest | 6,002 | 5,663 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,188,033 | $ | 1,737,745 | ||||
TARO PHARMACEUTICAL INDUSTRIES LTD. | ||||||||
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(U.S. dollars in thousands) | ||||||||
Year Ended March 31, | ||||||||
2016 | 2015 | |||||||
(unaudited) | (audited) | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 541,271 | $ | 484,834 | ||||
Adjustments required to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 14,848 | 15,798 | ||||||
Impairment for long-lived assets | 2,042 | 90 | ||||||
Realized loss (gain) on sale of marketable securities and long-lived assets | 74 | (209 | ) | |||||
Change in derivative instruments, net | (6,137 | ) | 5,483 | |||||
Effect of change in exchange rate on inter-company balances | (2,268 | ) | (18,167 | ) | ||||
Foreign exchange effect of bank deposits | (5,510 | ) | - | |||||
Decrease in long-term debt due to currency fluctuations | - | (1,030 | ) | |||||
Deferred income taxes, net | (11,976 | ) | (70,387 | ) | ||||
Increase in trade receivables, net | (16,386 | ) | (85,277 | ) | ||||
Increase in inventories, net | (19,013 | ) | (7,027 | ) | ||||
(Decrease) increase in other receivables, income tax receivable, prepaid expenses and other | (42,858 | ) | 14,359 | |||||
(Decrease) increase in trade, income tax and other payables and accrued expenses | (58,959 | ) | 68,321 | |||||
Net cash provided by operating activities | 395,128 | 406,788 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of plant, property & equipment | (18,972 | ) | (19,997 | ) | ||||
(Investment in) proceeds from other intangible assets and long-lived assets | (134 | ) | 59 | |||||
Proceeds from (investment in) other assets | 35,000 | (31,050 | ) | |||||
Investment in short-term bank deposits | (220,102 | ) | (43,344 | ) | ||||
Proceeds from restricted bank deposits | 199 | 28 | ||||||
(Investment in) proceeds from long-term deposits and other assets | (80,587 | ) | 2,112 | |||||
(Investment in) proceeds from marketable securities, net | (135 | ) | 111 | |||||
Net cash used in investing activities | (284,731 | ) | (92,081 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of shares, net | - | 26 | ||||||
Purchase of treasury stock | (9,450 | ) | - | |||||
Repayment of long-term debt | (5,888 | ) | (10,944 | ) | ||||
Net cash used in financing activities | (15,338 | ) | (10,918 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 57 | (32,115 | ) | |||||
Increase in cash and cash equivalents | 95,116 | 271,674 | ||||||
Cash and cash equivalents at beginning of period | 481,641 | 209,967 | ||||||
Cash and cash equivalents at end of period | $ | 576,757 | $ | 481,641 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160526006537/en/
Source:
Taro Pharmaceutical Industries Ltd.
Michael Kalb, 914-345-9001
GVP, CFO
Michael.Kalb@taro.com
or
William J. Coote, 914-345-9001
William.Coote@taro.com