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 March 2023

 

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, 2023

 

Hawthorne, NY, May 23, 2023 - Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and year ended March 31, 2023.

 

Quarter ended March 31, 2023* Highlights ─ compared to March 31, 2022

 

Year ended March 31, 2023* Highlights ─ compared to March 31, 2022

 

Cash Flow and Balance Sheet Highlights

 

* The March 31, 2023 results include full-year results from the February 28, 2022 acquisition of Alchemee.

 

 

 

The Company cautions that the foregoing 2023 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 2024. 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 31st								March 31st
	2023				2022				2023				2022
Sales, net	$	146,587			$	143,264			$	572,952			$	561,347
Cost of sales		70,879				65,919				304,629				268,212
Impairment		—				—				—				13
Gross profit		75,708				77,345				268,323				293,122
Operating Expenses:
Research and development		16,306				14,892				52,243				54,540
Selling, marketing, general and administrative		50,128				41,175				198,366				113,677
Settlements and loss contingencies		—				—				—				61,446
Operating income *		9,274				21,278				17,714				63,459
Financial (income) expense, net:
Interest and other financial income		(8,036	)			(685	)			(20,850	)			(8,187	)
Foreign exchange (income) expense		469				(2,541	)			2,813				(1,986	)
Other gain, net		1,059				512				2,462				4,226
Income before income taxes		17,900				25,016				38,213				77,858
Tax expense		10,987				(2,388	)			12,768				19,592
Net income attributable to Taro *	$	6,913			$	27,404			$	25,445			$	58,266
Net income per ordinary share attributable to Taro:
Basic and Diluted *	$	0.18			$	0.73			$	0.68			$	1.55
Diluted	$	0.18			$	0.73			$	0.68			$	1.55
Weighted-average number of shares used to compute net income per share:
Basic and Diluted		37,584,891				37,584,891				37,584,891				37,641,087
May not foot due to rounding.

 

 

 

 

 

 

 

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TARO PHARMACEUTICAL INDUSTRIES LTD.

SUMMARY CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

		March 31,				March 31,
		2023				2022
ASSETS		(unaudited)				(audited)
CURRENT ASSETS:
Cash and cash equivalents		$	154,495			$	251,134
Short-term bank deposits			119,980				47,586
Marketable securities			575,814				522,028
Accounts receivable and other:
Trade, net			202,260				246,973
Other receivables and prepaid expenses			57,210				59,726
Inventories			226,669				210,439
TOTAL CURRENT ASSETS			1,336,428				1,337,886
Marketable securities			404,896				435,189
Property, plant and equipment, net			190,139				199,692
Deferred income taxes			103,672				124,882
Goodwill			17,231				11,820
Other assets			83,147				66,892
TOTAL ASSETS		$	2,135,513			$	2,176,361
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	68,485			$	68,232
Other current liabilities			317,064				363,887
TOTAL CURRENT LIABILITIES			385,549				432,119
Deferred taxes and other long-term liabilities			19,106				32,799
TOTAL LIABILITIES			404,655				464,918
Taro shareholders' equity			1,730,858				1,711,443
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,135,513			$	2,176,361

 

 

 

 

 

 

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TARO PHARMACEUTICAL INDUSTRIES LTD.

SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

 

		Twelve Months Ended March 31,
		2023				2022
		(unaudited)				(audited)
Cash flows from operating activities:
Net income		$	25,445			$	58,266
Adjustments required to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			32,127				25,915
Impairment of long-lived assets			—				13
Realized losss on sale of long-lived assets			136				689
Change in derivative instruments, net			(24	)			(631	)
Adjustments to Opening Balance-Sheet (PPA)			(15,292	)			—
Effect of change in exchange rate on marketable securities and bank deposits			2,291				(449	)
Deferred income taxes, net			16,802				23,200
Increase (decrease) in trade receivables, net			37,482				(6,229	)
Increase in inventories, net			(16,922	)			(2,082	)
Increase (decrease) in other receivables, income tax receivables, prepaid expenses and other			2,240				(5,451	)
Decrease in trade, income tax, accrued expenses and other payables			(60,707	)			(265,278	)
Expense from amortization of marketable securities bonds, net			8,172				13,339
Net cash provided by (used in) operating activities			31,750				(158,698	)
Cash flows from investing activities:
Purchase of plant, property & equipment, net			(17,553	)			(11,796	)
Acquisition, net of cash acquired			—				(91,872	)
Investment in other intangible assets			(294	)			(243	)
Investment in short-term bank deposits, net			(72,394	)			(47,586	)
Proceeds from (investment in) marketable securities, net			(33,315	)			(19,084	)
Investment in other investments			(2,000	)			—
Net cash used in investing activities			(125,556	)			(170,581	)
Cash flows from financing activities:
Purchase of treasury stock			—				(24,934	)
Net cash used in financing activities			—				(24,934	)
Effect of exchange rate changes on cash and cash equivalents			(2,833	)			170
Decrease in cash and cash equivalents			(96,639	)			(354,043	)
Cash and cash equivalents at beginning of period			251,134				605,177
Cash and cash equivalents at end of period		$	154,495			$	251,134
Cash Paid during the year for:
Income taxes		$	4,175			$	7,753
Cash Received during the year for:
Income taxes		$	14,156			$	2,351
Non-cash investing transactions:
Purchase of property, plant and equipment included in accounts payable		$	1,242			$	1,468
Non-cash financing transactions:
Purchase of intangible assets		$	—			$	—
Purchase of treasury stock		$	—			$	—
Purchase of marketable securities, net		$	3,038			$	3,890
Sale of marketable securities		$	(314	)		$	21

 

 

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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 24, 2023

TARO PHARMACEUTICAL INDUSTRIES LTD.
 

By: /s/ Uday Baldota

Name: Uday Baldota

Title: Chief Executive Officer and Director

 

 

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