Taro Pharmaceuticals Reports Record 2001 Results -- 24 Consecutive Quarters of Record Sales, 14 Consecutive Quarters of Record Net Income.Business Editors HAWTHORNE, N.Y.--(BUSINESS WIRE)--Feb. 21, 2002 Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS: TARO)-- 2001 Highlights - Q4 Sales Increase 47% to $44,013,000 - Q4 Gross Profit Increases 58% to $28,459,000 - Q4 Net Income Increases 180% to $9,826,000, or $0.34 per Diluted Share - 2001 Sales Increase 45% to $150,134,000 - 2001 Net Income Increases 159% to $25,994,000, or $0.99 per Diluted Share - Taro Closed Public Offering of 5,750,000 Ordinary Shares in Q4 2001 Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS: TARO) today reported record fourth quarter and year end results. Fourth Quarter Results The Company's 2001 financial performance reflects profitability from both the introduction of new products and growth of its baseline business. Sales for the fourth quarter of 2001 increased 47% to $44,013,000, compared with sales of $29,951,000 for the fourth quarter of 2000. Net income for the fourth quarter of 2001 increased 180% to $9,826,000, or $0.34 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, based on 29,252,457 weighted average shares outstanding, compared with $3,514,000, or $0.14 per diluted share, based on 24,578,564 weighted average shares outstanding, for the fourth quarter of 2000. Per share data are adjusted to reflect a two-for-one stock split in the form of a stock dividend paid on July 26, 2001. Taro's gross profit in the fourth quarter of 2001 increased 58% to $28,459,000, or 65% of sales, from $18,014,000, or 60% of sales, for the fourth quarter of 2000. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before R&D expenses increased 88% to $17,007,000, or 39% of sales, up from $9,034,000, or 30% of sales, for the fourth quarter of 2000. Selling, general and administrative expenses for the fourth quarter of 2001 were $11,452,000, or 26% of sales, compared with $8,980,000, or 30% of sales, in the fourth quarter of 2000. R&D expenses for the fourth quarter of 2001 were $5,811,000, compared with $3,866,000, or 13% of sales, for both periods. Year End Results "Taro's performance results from our long-term strategy of investment in R&D and infrastructure," said Barrie Levitt, M.D., Chairman of the Company. "This strategy is the basis for the operational leverage we achieved in 2001, during which a 45% increase in sales produced a 159% increase in earnings." Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the year ended December 31, 2001 increased 45% to $150,134,000, compared with sales of $103,797,000 in 2000. Net income for 2001 increased 159% to $25,994,000, or $0.99 per diluted share, based on 26,301,929 weighted average shares outstanding, compared with net income of $10,027,000, or $0.42 per diluted share, based on 23,864,020 weighted average shares outstanding, in 2000. Gross profit for the year ended December 31, 2001 was $95,398,000, or 64% of sales, compared with $62,591,000, or 60% of sales for the prior year. Operating income before R&D expenses was $52,408,000, or 35% of sales, compared with $30,689,000, or 30% of sales, for the prior year. Selling, general and administrative expenses for the year ended December 31, 2001 were $42,990,000, or 29% of sales, compared with $31,902,000, or 31% of sales, in 2000. R&D expenses for 2001 were $19,633,000, or 13% of sales, compared with $14,593,000, or 14% of sales, in the prior year. Strong Balance Sheet On October 5, 2001, Taro completed a public offering which resulted in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Company in excess of $126,000,000. At December 31, 2001, total assets were $307,762,000, compared with $120,446,000 at the end of 2000. Cash and cash equivalents were $150,732,000, compared with $7,245,000 at the end of 2000. Total liabilities were $88,622,000, compared with $70,064,000 at the end of the prior year. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $218,364,000, compared with $50,214,000 at December 31, 2000. "The public offering we completed in 2001 put Taro in an excellent financial position to take advantage of new opportunities for growth," Dr. Levitt stated. Approvals in 2001 In 2001 Taro received approval of several Abbreviated New Drug Applications abbreviated new drug application Pharmacology An application made in the US by a pharmaceutical company requesting authority to market a 'new' drug for which both its therapeutic indications and formulation were previously approved by the FDA in another similar from the U.S. Food and Drug Administration, including the first generic approval for Clotrimazole clotrimazole /clo·trim·a·zole/ (klo-trim´ah-zol) an imidazole derivative used as a broad-spectrum antifungal agent. clo·trim·a·zole n. and Betamethasone betamethasone /be·ta·meth·a·sone/ (ba?tah-meth´ah-son) a synthetic glucocorticoid, the most active of the antiinflammatory steroids; used topically as the benzoate, dipropionate, or valerate salts as an antiinflammatory, topically or Dipropionate Cream ("CB Cream"). CB Cream is bioequivalent bi·o·e·quiv·a·lent n. A value indicating the rate at which a substance enters the bloodstream and becomes available to the body. to Schering Plough's Lotrisone(R) Cream, a combination antifungal/corticosteroid used in the treatment of a variety of dermatological dermatological, dermatologic pertaining to dermatology; of or affecting the skin. conditions. Taro received additional approvals for the cardiovascular products Amiodarone Hydrochloride a·mi·o·da·rone hydrochloride n. A vasodilator for the heart used to control ventricular and supraventricular arrhythmias and to manage stenocardia. Tablets, 200 mg (bioequivalent to Wyeth-Ayerst Laboratories' Cordarone(R)), Enalapril Maleate e·nal·a·pril maleate n. An angiotensin-converting enzyme inhibitor used as an antihypertensive agent. enalapril maleate (enal´ Tablets in four strengths (bioequivalent to Merck's Vasotec(R)), as well as Enalapril Maleate and Hydrochlorothiazide hydrochlorothiazide /hy·dro·chlo·ro·thi·a·zide/ (-klor?o-thi´ah-zid) a thiazide diuretic, used for treatment of hypertension and edema. hy·dro·chlo·ro·thi·a·zide n. Abbr. Tablets in two strengths (bioequivalent to Merck's Vaseretic(R) Tablets). Acquisition of Dermovate(R) Brand in Canada In October 2001, Taro announced that its Canadian subsidiary, Taro Pharmaceuticals Inc., acquired the Canadian rights to Dermovate(R) (clobetasol propionate clobetasol propionate (klōbā´t  sol´ prō´pē 0.05%) Cream, Ointment ointment /oint·ment/ (oint´ment) a semisolid preparation for external application to the skin or mucous membranes, usually containing a medicinal substance. oint·ment n. and Topical Solution from GlaxoSmithKline. Dermovate(R) is an ultra-high potency potency /po·ten·cy/ (po´ten-se) 1. the ability of the male to perform coitus. 2. the relationship between the therapeutic effect of a drug and the dose necessary to achieve that effect. 3. topical corticosteroid corticosteroid /cor·ti·co·ster·oid/ (-ster´oid) any of the steroids elaborated by the adrenal cortex (excluding the sex hormones) or any synthetic equivalents; divided into two major groups, the glucocorticoids and used in treating dermatological conditions such as psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the and eczema eczema (ĕk`səmə), acute or chronic skin disease characterized by redness, itching, serum-filled blisters, crusting, and scaling. . The Canadian market size of Dermovate(R) and generic clobetasol propionate products is estimated to be approximately U.S. $3.8 million according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. industry sources. The Dermovate(R) line is currently being detailed by Taro's professional dermatology dermatology (dûrmətŏl`əjē), branch of medicine concerned with diagnosis and treatment of diseases and disorders of the skin. field sales force in Canada. Warfarin Approved in the UK Early in the first quarter of 2002, Taro announced that it received approval in the UK for Warfarin Tablets in the four strengths currently in use in that country. The annual market in the UK for Warfarin Tablets is estimated by industry sources to be approximately U.S. $30 million. Warfarin is an anticoagulant anticoagulant (ăn'tēkōăg`yələnt), any of several substances that inhibit blood clot formation (see blood clotting). indicated for the prevention and treatment of blood clotting blood clotting, process by which the blood coagulates to form solid masses, or clots. In minor injuries, small oval bodies called platelets, or thrombocytes, tend to collect and form plugs in blood vessel openings. disorders and in the prevention of thromboembolic thromboembolic pertaining to or emanating from thromboembolism. thromboembolic meningoencephalitis see hemophilosis. thromboembolic parasitism see thromboembolic colic. complications associated with heart attacks and certain rhythm disorders of the heart such as atrial fibrillation atrial fibrillation Irregular rhythm (arrhythmia) of contraction of the atria (upper heart chambers). The most common major arrhythmia, it may result as a consequence of increased fibrous tissue in the aging heart, of heart disease, or in association with severe infection. . Taro currently markets Warfarin Tablets in nine strengths in the U.S., Canada, and Israel. The Company has manufactured Warfarin Tablets in Israel for more than 40 years under the brand name Coumadin(R)(a) and will market Warfarin Tablets in the UK under the generic name generic name n. 1. The official nonproprietary name of a drug, under which it is licensed and identified by the manufacturer. 2. . Proprietary Research The Company's proprietary research program includes NonSpil(TM), a patented, spill-resistant liquid delivery system which has potential applications in a wide variety of both prescription and over-the-counter pharmaceutical products. The Company holds several patents relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc this unique delivery system and has additional patents pending in the U.S. and worldwide. Taro also continues development of T2000, the first of a class of patented, non-sedating barbiturates Barbiturates Definition Barbiturates are medicines that act on the central nervous system and cause drowsiness and can control seizures. Purpose . Taro is currently nearing the end of Phase I clinical testing for the product. While there can be no assurances of successful development or commercialization of any member of this new class of barbiturates, T2000 has not produced significant toxicity toxicity /tox·ic·i·ty/ (tok-sis´i-te) the quality of being poisonous, especially the degree of virulence of a toxic microbe or of a poison. in humans during testing conducted to date. Outlook "Taro's growing base business and new products approved in the U.S., Israel, Canada and the UK have produced continued improvement in the Company's financial results," said Dr. Levitt. "Taro's successful research programs, the strength of our marketing and manufacturing organization, and the business development opportunities afforded by our public offering, provide the basis for our confidence in Taro's future." The Company currently has 12 filings with the U.S. Food and Drug Administration and multiple filings with regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. around the world. Conference Call The Company will conduct a conference call to discuss fourth quarter and year end results on Thursday, February 21 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time). The call will be available live via the Internet by accessing www.taro.com. For those who cannot listen to the live broadcast, an online replay will be available through February 27, 2002, on www.taro.com. A telephone replay will also be available through February 27, 2002, by dialing 800-428-6051 (domestic U.S.) or 973-709-2089 (international) and entering the passcode 231333 when prompted. 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. Certain statements in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements include, but are not limited to, comments regarding Taro's expectations regarding operational leverage and profitability, business development and other growth opportunities, use of proceeds from the Company's 2001 public offering, research programs, the growth of the Company's base business, contribution of new products, and international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. . Although Taro 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 regulatory approval of new generic products, other regulatory actions, slower than anticipated penetration of new markets, changes in the Company's financial position, and other risks detailed from time to time in the Company's SEC reports, including its Prospectus dated October 1, 2001, and its 2000 Annual Report on Form 20-F. (a) In Israel, Coumadin(R)is a registered trademark of Taro Pharmaceuticals U.S.A., Inc. Elsewhere in the world, Coumadin(R)is a registered trademark of the DuPont Pharmaceuticals Company. There is no affiliation between the two companies. Financial Tables Follow
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)
DECEMBER 31, DECEMBER 31,
2001 2000
---- ----
Assets
Current Assets:
Cash and Cash Equivalents $150,732 $7,245
Restricted short-term bank
deposits 2,416 2,307
Accounts Receivable - Trade 41,131 38,670
Accounts Receivable - Other and
prepaid expenses 8,134 3,898
Inventories 29,081 19,618
------------------------------------
Total Current Assets 231,494 71,738
Long Term Investments 2,677 913
Property, Plant and Equipment, net 54,024 41,827
Deferred Taxes and Other Assets 19,567 5,968
------------------------------------
TOTAL ASSETS $307,762 $120,446
======================================================================
Liabilities and Shareholders' Equity
Current Liabilities:
Short-Term Bank Credits $2,221 $2,170
Current Maturities of Long-Term
Liabilities 6,010 6,321
Accounts Payable and Accrued
Expenses 26,552 19,659
------------------------------------
Total Current Liabilities 34,783 28,150
Long -Term Liabilities 49,285 38,250
Deferred Taxes and Other Liabilities 4,554 3,664
------------------------------------
Total Liabilities 88,622 70,064
Minority Interest 776 168
Shareholders' Equity 218,364 50,214
------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $307,762 $120,446
======================================================================
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(US dollars in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
SALES $44,013 $29,951 $150,134 $103,797
Cost of Sales 15,554 11,937 54,736 41,206
------------------------------------------------
Gross Profit 28,459 18,014 95,398 62,591
Operating Expenses:
Selling and
Administrative 11,452 8,980 42,990 31,902
------------------------------------------------
Operating Income
before
Research and
Development 17,007 9,034 52,408 30,689
Research and Development 5,811 3,866 19,633 14,593
-----------------------------------------------
Operating Income 11,196 5,168 32,775 16,096
Financial (Income)
Expenses - Net (98) 1,199 2,594 3,855
-----------------------------------------------
11,294 3,969 30,181 12,241
Other Income - Net 120 173 272 344
-----------------------------------------------
11,414 4,142 30,453 12,585
Taxes on Income 1,532 651 4,378 2,538
-----------------------------------------------
9,882 3,491 26,075 10,047
Minority Share in Profits
(Losses) of
Subsidiary 56 (23) 81 20
NET INCOME $9,826 $3,514 $25,994 $10,027
===============================================
Earnings per Ordinary
Share $0.35 $0.16 $1.11 $0.47
Diluted Earnings per
Ordinary Share $0.34 $0.14 $0.99 $0.42
Weighted Average Number of
Shares-
BASIC EPS 28,236,982 21,464,182 23,370,224 21,419,810
DILUTED EPS 29,252,457 24,578,564 26,301,929 23,864,020
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion