Here's today's earnings from TARO, a company I mentioned this past weekend. I picked up a few more shares today. Chart remains strong.
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Monday April 30, 7:00 am Eastern Time
Press Release
Taro Pharmaceutical Industries Reports Record First Quarter Sales and Earnings
HAWTHORNE, N.Y.--(BUSINESS WIRE)--April 30, 2001--Taro Pharmaceutical Industries Ltd. (NASDAQ:TARO - news):
First Quarter Highlights:
Sales Increase to a Record $28.4 Million, a 28% Increase Over Q1 2000
Net Income Increases 70% to $2.8 Million, or $0.22 per Diluted Share, from $1.6 Million, or $0.14 per Diluted Share in Q1 2000
Operating Income Up 33% to $4.2 Million, from $3.1 Million in Q1 2000
Approval of ANDA for Amiodarone Hydrochloride Tablets and Enalapril Maleate Tablets in Two Strengths
Tentative Approval of Enalapril Maleate/Hydrochlorothiazide Tablets in Two Strengths
Taro Pharmaceutical Industries Ltd. (NASDAQ:TARO - news) today reported record sales and earnings in the first quarter of 2001.
Financial Results
The Company's sales increased to a record $28,368,000 for the first quarter ended March 31, 2001, compared with $22,232,000 for the first quarter of 2000, an increase of 28%.
In the first quarter of 2001, R&D expenditures increased to record levels, but decreased as a percentage of sales, at $4,014,000, or 14% of sales, from $3,532,000, or 16% of sales in the first quarter of 2000. Operating income for the first quarter of 2001 increased to $4,191,000, or 15% of sales, compared with $3,155,000, or 14% of sales for the first quarter of 2000.
Net income for the first quarter of 2001 was a record $2,770,000, or $0.22 per diluted share, compared with $1,628,000, or $0.14 per diluted share in the first quarter of 2000. Gross profit was $17,023,000 or 60% of sales, compared with $13,443,000 or 60% of sales in the year ago quarter.
``Our strong performance continued in the first quarter of 2001. Taro has now achieved 21 consecutive quarters of record sales, and 10 consecutive quarters of record earnings,'' stated Barrie Levitt, M.D., FACC, Chairman of the Company. ``We are committed to our successful strategy of growth through investment in research and marketing.''
The Company continues to invest in its capital expenditure program, expanding its warehousing, manufacturing and research facilities in both Israel and Canada, to accommodate anticipated growth. In addition to these expenditures, a reduction in payables and an increase in inventories due to growing sales impacted cash and cash equivalents in the first quarter of 2001. As of March 31, 2001, the Company reported cash and cash equivalents of $1,779,000, inventories of $23,506,000, and accounts payable and accrued expenses of $17,644,000. The Company, with shareholders' equity in excess of $52,000,000, has a strong balance sheet and sufficient resources to fulfill its growth objectives.
ANDA Approvals
In the first quarter of 2001, Taro received approval from the United States Food and Drug Administration (FDA) on its Abbreviated New Drug Application (ANDA) for Amiodarone Hydrochloride Tablets, 200 mg. Earlier this month, the Company received a tentative approval on its ANDA for Enalapril Maleate/Hydrochlorothiazide Tablets, (5 mg/12.5 mg and 10 mg/25 mg). Earlier this quarter, the Company also received approval of its ANDA for Enalapril Maleate Tablets in two strengths.
``In 1996, Taro made a commitment to introduce oral dosage form products in the U.S. generic market,'' stated Dr. Levitt. ``Since that time our oral product offering has increased to 14 products in 33 strengths, 5 of which are used in the field of cardiology.''
The Company currently has 9 ANDAs submitted to the FDA (including the tentative approval for Enalapril/HCTZ), and multiple international filings with regulatory agencies around the world.
Taro 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.
To receive additional information on Taro Pharmaceutical Industries Ltd., at no charge, dial 1-800-PRO-INFO and enter company code 104 or ticker symbol TARO.
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Taro Pharmaceutical Industries Ltd. believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ include industry and market conditions, slower than anticipated penetration of new markets, changes in the Company's financial position, regulatory actions, and other risks detailed from time to time in the Company's SEC reports, including its Annual Report on Form 20-F for the last fiscal year ended December 31, 1999.
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(US dollars in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
SALES $ 28,368 $ 22,232
Cost of Sales 11,345 8,789
Gross Profit 17,023 13,443
Operating Expenses:
Selling and Administrative 8,818 6,756
Operating Income before
Research and Development 8,205 6,687
Research and Development 4,014 3,532
Operating Income 4,191 3,155
Financial Expenses - Net 548 958
3,643 2,197
Other Income - Net (23) 3
3,620 2,200
Taxes on Income 666 555
2,954 1,645
Minority Share in Profits (Losses) of Subsidiaries (10) 17
Net income before cumulative effect
on an accounting change $ 2,964 $ 1,628
Cumulative effect of an accounting change at
the beginning of the year (a) 194 --
NET INCOME $ 2,770 $ 1,628
Earnings per Ordinary Share Before
Cumulative Effect of an Accounting Change $ 0.27 $ 0.15
Diluted Earnings per Ordinary Share Before
Cumulative Effect of an Accounting Change $ 0.24 $ 0.14
Earnings per Ordinary Share $ 0.26 $ 0.15
Diluted Earnings per Ordinary Share $ 0.22 $ 0.14
Weighted Average Number of Shares -
Basic EPS 10,785,224 10,692,386
Diluted EPS 12,451,534 11,839,764
(a) Impact of SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities."
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)
March 31, Dec. 31,
2001 2000
Assets
Current Assets:
Cash and Cash Equivalents $ 1,779 $ 7,245
Restricted Short-Term Bank Deposits 2,606 2,307
Accounts Receivable 44,232 42,568
Inventories 23,506 19,618
Total Current Assets 72,123 71,738
Property, Plant and Equipment, net 44,814 41,827
Other Assets 6,817 6,881
TOTAL ASSETS $123,754 $120,446
Liabilities and Shareholders' Equity
Current Liabilities:
Short-Term Bank Credits $ 4,026 $ 2,170
Current Maturities of Long-Term Liabilities 5,983 6,321
Accounts Payable and Accrued Expenses 17,644 19,659
Total Current Liabilities 27,653 28,150
Long-Term Liabilities 40,107 38,250
Deferred Taxes and Other Liabilities 3,564 3,664
Total Liabilities 71,324 70,064
Minority Interest 172 168
Shareholders' Equity 52,258 50,214
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $123,754 $120,446 |
