Taro Provides Preliminary 2011 Full Year And Q4 Results

Taro Pharmaceutical Industries Ltd. (“Taro,” or the “Company,” Pink Sheets: TAROF) today provided unaudited financial results for the quarter and full year ended December 31, 2011.

Fourth Quarter 2011 Highlights vs. 2010

• Net sales of $148.1 million, increased $45.5 million, or 44.3%,
• Gross profit, as a percentage of net sales was 71.6%, compared to 59.6%, principally driven by increased selling prices on select products in the U.S. market as overall volumes were flat,
• Selling, marketing, general and administrative expenses decreased $6.2 million, or 22.0%,
• Operating income of $74.5 million, or 50.3% of net sales, compared to $21.6 million, or 21.0% of net sales,
• Net income was negatively impacted by foreign exchange (FX) expense of $6.3 million, compared to $3.7 million,
• Net income attributable to Taro was $62.4 million, compared to $16.5 million, an increase of $45.9 million, resulting in diluted earnings per share of $1.40 compared to $0.38.

Year to Date 2011 Highlights vs. 2010

• Net sales of $505.7 million, increased $113.1 million, or 28.8%,
• Gross profit, as a percentage of net sales was 65.2%, compared to 59.5%,
• Selling, marketing, general and administrative expenses decreased $14.0 million, or 13.0%,
• Operating income of $204.0 million, or 40.3% of net sales, compared to $86.5 million, or 22.0% of net sales,
• Net income was favorably impacted by FX income of $6.9 million, compared to FX expense of $5.3 million - a $12.2 million benefit,
• Net income attributable to Taro was $182.7 million compared to $64.1 million, a $118.6 million increase, resulting in diluted earnings per share of $4.11 compared to $1.53.

Taro’s Interim Chief Executive Officer, Jim Kedrowski, stated, “We are very pleased with both 2011’s fourth quarter and full year performance. The successful execution of our strategic plans and changes we have implemented are reflected in these solid financial results. The Company’s performance across all markets was very positive, however, a significant portion of the quarter’s growth in net sales and profits was derived from price increases on select products in the U.S. market and may not be sustainable.”