TARO Taro Pharmaceutical Industries Ltd

 

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of May 2024

 

Commission File Number 001-35463

Taro Pharmaceutical Industries Ltd.

(Translation of registrant’s name into English)

 

14 Hakitor Street, Haifa Bay 2624761, Israel

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  Form 40-F 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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TARO PROVIDES RESULTS FOR YEAR ENDED MARCH 31, 2024

Hawthorne, NY, May 20, 2024 - Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and year ended March 31, 2024.

Quarter ended March 31, 2024 Highlights ─ compared to March 31, 2023

Year ended March 31, 2024 Highlights ─ compared to March 31, 2023

Cash Flow and Balance Sheet Highlights

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The Company cautions that the foregoing 2024 financial information is unaudited and is subject to change.

 

 

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About Taro

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.

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 SEC.

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 2025. 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 Israel, the United States, or any country in which Taro operates, regulatory 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 are applicable 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.

 

 

 

**Financial Tables Follow**
 

 

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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share data)
	Quarter Ended								Twelve Months Ended
	March 31,								March 31,
	2024				2023				2024				2023
Sales, net	$	164,941			$	146,587			$	629,182			$	572,952
Cost of sales		77,552				70,879				324,203				304,629
Impairment		—				—				23				—
Gross profit		87,389				75,708				304,956				268,323
Operating Expenses:
Research and development		20,478				16,306				64,536				52,243
Selling, marketing, general and administrative		58,127				50,128				218,935				198,366
Operating income *		8,784				9,274				21,485				17,714
Financial (income)/expense, net:
Interest and other financial income		(15,834	)			(8,036	)			(56,192	)			(20,850	)
Foreign exchange expense/(income)		588				469				(9	)			2,813
Other gain, net		2,198				1,059				4,981				2,462
Income before income taxes		26,228				17,900				82,668				38,213
Tax expense		11,150				10,987				28,801				12,768
Net income *	$	15,078			$	6,913			$	53,867			$	25,445
Net income/ per ordinary share:
Basic and Diluted *	$	0.40			$	0.18			$	1.43			$	0.68
Weighted-average number of shares used to compute net income per share:
Basic and Diluted		37,584,891				37,584,891				37,584,891				37,584,891
May not foot due to rounding.

 

 

 

* For the quarter ended March 31, 2024, excluding the impact from the certain one-time charges of $1.0 million (see page one of release for a description), operating income was $9.8 million. compared to operating income of $8.8 million. Excluding the impact of the certain one-time charges, net income was $16.1 million, resulting in earnings per share of $0.43.

* For the full year ended March 31, 2024, excluding the impact from the certain one-time charges of $14.2 million (see page one of release for a description), operating income was $35.7 million compared to $21.5 million. Excluding the impact of the certain one-time charges, net income was $66.3 million, resulting in earnings per share of $1.77.

 

 

 

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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		March 31,				March 31,
		2024				2023
ASSETS		(unaudited)				(audited)
CURRENT ASSETS:
Cash and cash equivalents		$	362,909			$	154,495
Short-term bank deposits			58,947				119,980
Marketable securities			457,495				575,814
Accounts receivable and other:
Trade, net			177,463				202,260
Other receivables and prepaid expenses			41,772				57,210
Inventories			204,817				226,669
TOTAL CURRENT ASSETS			1,303,403				1,336,428
Marketable securities			457,991				404,896
Property, plant and equipment, net			217,592				190,139
Deferred income taxes			83,397				103,672
Goodwill			17,231				17,231
Other assets			82,455				83,147
TOTAL ASSETS		$	2,162,069			$	2,135,513
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	44,664			$	68,484
Other current liabilities			316,443				317,064
TOTAL CURRENT LIABILITIES			361,107				385,548
Deferred taxes and other long-term liabilities			7,956				19,106
TOTAL LIABILITIES			369,063				404,654
Taro shareholders' equity			1,793,006				1,730,859
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,162,069			$	2,135,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
		Twelve Months Ended March 31,
		2024				2023
Cash flows from operating activities:
Net income		$	53,867			$	25,445
Adjustments required to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			31,094				32,127
Impairment of long-lived assets			23				—
Realized loss on sale of long-lived assets			—				136
Change in derivative instruments, net			—				(24	)
Adjustments to opening balance sheet (PPA)			—				(15,292	)
Decrease in goodwill and intangible assets			242				—
Effect of change in exchange rate on marketable securities and bank deposits			(86	)			2,291
Deferred income taxes, net			19,148				16,802
Decrease in trade receivables, net			24,481				37,482
Decrease (increase) in inventories, net			21,728				(16,922	)
Decrease in other receivables, income tax receivables, prepaid expenses and other			15,730				2,240
Decrease in trade, income tax, accrued expenses and other payables			(33,839	)			(60,707	)
(Income)/expense from amortization of marketable securities bonds, net			(7,833	)			8,172
Net cash provided by operating activities			124,555				31,750
Cash flows from investing activities:
Purchase of plant, property & equipment, net			(53,971	)			(17,553	)
Investment in other intangible assets			(247	)			(294	)
Proceeds from (Investment in) short-term bank deposits, net			58,338				(72,394	)
Proceeds from (Investment in) marketable securities, net			81,723				(33,315	)
Investment in other investments			(1,500	)			(2,000	)
Net cash provided by (used in) investing activities			84,343				(125,556	)
Effect of exchange rate changes on cash and cash equivalents			(483	)			(2,833	)
Increase (decrease) in cash and cash equivalents			208,415				(96,639	)
Cash and cash equivalents at beginning of period			154,495				251,134
Cash and cash equivalents at end of period		$	362,910			$	154,495
Cash Paid during the year for:
Income taxes		$	18,309			$	4,175
Cash Received during the year for:
Income taxes		$	12,931			$	14,156
Non-cash investing transactions:
Purchase of property, plant and equipment included in accounts payable		$	2,041			$	1,242
Non-cash financing transactions:
Purchase of marketable securities, net		$	4,602			$	3,038

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 20, 2024

TARO PHARMACEUTICAL INDUSTRIES LTD.
 

By: /s/ Uday Baldota

Name: Uday Baldota

Title: Chief Executive Officer and Director

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