Taro Provides Third Quarter And Fiscal Year To Date Results

Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the three and nine month periods ended December 31, 2012.

Quarter ended December 31, 2012 Highlights - compared to December 31, 2011
  • Net sales of $185.7 million, increased $37.6 million, or 25.4%, however, sales volumes have slightly declined
  • Gross profit, as a percentage of net sales was 75.4%, compared to 71.6%
  • Research and development expenses increased 33.5% to $11.8 million
  • Selling, marketing, general and administrative expenses, which included a $3.3 million litigation provision in 2012, increased $2.1 million
  • Operating income increased to $104.0 million, or 56.0% of net sales, compared to $74.5 million, or 50.3% of net sales
  • Net income attributable to Taro was $88.8 million compared to $62.4 million, resulting in diluted earnings per share of $1.98 compared to $1.40.

Nine months ended December 31, 2012 Highlights - compared to December 31, 2011
  • Net sales of $505.8 million, increased $107.9 million, or 27.1%, however, sales volumes have marginally declined
  • Gross profit, as a percentage of net sales was 74.2%, compared to 66.9%
  • Research and development expenses increased 45.3% to $34.3 million
  • Selling, marketing, general and administrative expenses, which included $11.3 million litigation provisions in 2012, increased $4.2 million
  • Operating income increased to $265.4 million, or 52.5% of net sales, compared to $170.6 million, or 42.9% of net sales
  • Income tax expense increased $33.5 million from $18.2 million to $51.7 million
  • Net income attributable to Taro was $217.0 million compared to $157.0 million, a $60.0 million increase, resulting in diluted earnings per share of $4.86 compared to $3.52.

Cash Flow and Balance Sheet Highlights
  • Cash flow provided by operations for the nine months ended December 31, 2012, as compared to December 31, 2011, was $173.1 million compared to $157.0 million, primarily due to the payment of income taxes as reflected in the significant decrease in trade and other payables
  • Cash, including marketable securities, increased $152.2 million to $486.6 million from March 31, 2012.

FDA Approvals and Filings

During the quarter, the Company filed one ANDA with the FDA. With this, ANDAs representing seventeen products as well as two NDAs await FDA approval.

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