HAWTHORNE, N.Y., May 22, 2009 (GLOBE NEWSWIRE) -- Taro Pharmaceutical Industries Ltd. ("Taro," the "Company") (Pink Sheets:TAROF) today provided information on its financial performance for the first quarter of 2009.
First Quarter 2009 Results
For the quarter ended March 31, 2009, Taro estimates net sales of approximately $85 million, compared to $78 million for the same quarter in 2008, an increase of 8%. Gross profit for the first quarter of 2009 was approximately $47 million, or 55% of net sales, compared to $41 million, or 52% of net sales, for same quarter in 2008, an increase of 14%. Net income for the first quarter of 2009 was approximately $11 million, compared to $7 million for the first quarter of 2008, an increase of 47%. Diluted earnings per ordinary share were $0.27 for the first quarter of 2009, compared to $0.19 for the first quarter of 2008.
The Company believes that results for the first quarter of 2009 demonstrate the continuation of the significant financial and operational improvements at the Company over the past nine quarters.
Balance Sheet
Cash and cash equivalents were $81 million on March 31, 2009, compared to $78 million on December 31, 2008. As of March 31, 2009, the Company's total debt was approximately $184 million, compared to $188 million on December 31, 2008. After accounting for the value of ongoing currency protection instruments and cash balances, net debt was $97 million on March 31, 2009, compared to $104 million on December 31, 2008. The Company believes, in the ordinary course, that it should have sufficient liquidity to meet its cash requirements for the foreseeable future, subject to the continuing support of its lenders. The Company continues to be out of compliance with certain financial reporting requirements in certain of its debt instruments due to the lack of audited financial statements and continues to discuss the situation with its lenders. Taro noted that it is current with its payments to lenders and that in the near term it does not foresee the need for additional sources of outside liquidity to fund its ongoing business operations.
Accounts receivable - trade at March 31, 2009 were approximately $64 million, which represents 68 days sales outstanding, compared to $71 million at December 31, 2008. Inventories were approximately $67 million at March 31, 2009, compared to $71 million at December 31, 2008.
Total liabilities were approximately $269 million at March 31, 2009, compared to $289 million on December 31, 2008. Total shareholders' equity at March 31, 2009 was approximately $199 million, compared to $191 million on December 31, 2008.
The Company cautioned that the financial information presented herein does not constitute complete financial information, has not been reviewed by its independent auditors and is subject to possible change. However, subject to the foregoing caveats, the Company believes that the information herein represents the best information currently available to Taro management.
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.
The Taro Pharmaceutical Industries Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4733
SAFE HARBOR STATEMENT
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 and statements that refer or relate to events or circumstances the Company "estimates," "believes," or "expects" to happen, "should" happen, or similar language, the Company's financial performance, including its financial performance during the last two years, availability of financial information, estimates of financial results and financial information for outstanding audits, review of results for prior years and estimates of expenses and reserves. Although Taro Pharmaceutical Industries Ltd. 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 the possible unavailability of financial information, completion of audits of 2006, 2007 and/or 2008, actions of the Company's lenders, creditors and Sun Pharmaceutical Industries Ltd. ("Sun"), including but not limited to the outcome of litigation with Sun, 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 actions 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 speak 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.
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(US dollars in thousands, except per share data)
Unaudited and Unreviewed
--------------------------
Three Months Ended March 31,
--------------------------
2009 2008
----------- -----------
NET SALES $ 84,893 $ 78,059
Cost of Sales 38,351 37,167
----------- -----------
Gross Profit 46,542 40,892
Operating Expenses:
Selling and Administrative 23,665 20,182
----------- -----------
Operating Income before Research
and Development 22,877 20,710
Research and Development 8,856 9,202
----------- -----------
Operating Income 14,021 11,508
Financial Expenses:
Interest and other Financial Expenses 2,266 3,327
Foreign Exchange Fluctuations (2,576) (638)
Other Income - Net 138 300
----------- -----------
14,469 9,119
Taxes on Income 3,365 1,581
----------- -----------
NET INCOME $ 11,104 $ 7,538
=========== ===========
Basic Earnings Per Ordinary Share $ 0.28 $ 0.19
Diluted Earnings Per Ordinary Share $ 0.27 $ 0.19
Weighted Average Number of Shares
Basic EPS 39,188,100 39,186,478
Diluted EPS 40,584,834 40,262,114
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)
Unaudited and Unreviewed
--------------------------
March 31, December 31,
--------------------------
2009 2008
----------- -----------
Current Assets:
Cash and Cash Equivalents $ 80,755 $ 78,052
Restricted Short-Term Bank Deposits 6,250 6,250
Accounts Receivable - Trade 64,179 71,200
Accounts Receivable - Other and Prepaid
Expenses 14,789 11,773
Inventories 66,647 70,734
----------- -----------
Total Current Assets 232,620 238,009
Long-Term Investments 19,959 21,737
Property, Plant and Equipment, net 183,111 187,843
Other Assets 31,430 32,161
----------- -----------
TOTAL ASSETS $ 467,120 $ 479,750
=========== ===========
Liabilities and Shareholders' Equity
Current Liabilities:
Short-Term Bank Credits $ 90,292 $ 91,371
Current Maturities of Long-Term
Liabilities 28,679 29,887
Accounts Payable and Accrued Expenses 66,207 81,894
----------- -----------
Total Current Liabilities 185,178 203,152
Long-Term Liabilities 64,700 66,696
Deferred Taxes and Other Liabilities 18,650 18,715
----------- -----------
Total Liabilities 268,528 288,563
Shareholders' Equity 198,592 191,187
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 467,120 $ 479,750
=========== ===========