Taro Reports Increases in Third-Quarter Revenues and Operating Income; New Products Drive Record Sales for Third Consecutive Quarter.HAWTHORNE, N.Y.--(BUSINESS WIRE)--Nov. 4, 1997--Taro Pharmaceutical Industries Ltd. (Nasdaq/NMS:TAROF) Tuesday reported record sales for the third quarter and the nine months ended Sept. 30, 1997. Record Sales Continue Third-quarter 1997 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 increased 14 percent to a record $16,684,000, compared with $14,688,000 for the third quarter of 1996. R&D expenditures increased to $2,429,000, or 15 percent of sales, for the third quarter of 1997 from $2,059,000, or 14 percent of sales, for the third quarter of 1996. Net income was $752,000, or $0.07 per share, compared with $706,000, or $0.07 per share, for the third quarter of 1996. For the nine months ended Sept. 30, 1997, net sales were a record $44,937,000, compared with $41,464,000 over the same period in 1996, an 8 percent increase. R&D expenditures remained steady as a percentage of sales at $6,702,000, or 15 percent of sales, compared with $6,395,000, or 15 percent of sales, for the prior year. Net income for the period was $1,234,000, or $0.12 per share, compared with $1,482,000, or $0.14 per share, in 1996. New Product Sales Growth The company has increased market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of its first three solid-dosage form products in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (carbamazepine carbamazepine /car·ba·maz·e·pine/ (kahr?bah-maz´e-pen) an anticonvulsant and analgesic used in the treatment of pain associated with trigeminal neuralgia and in epilepsy manifested by certain types of seizures. tablets, an epilepsy treatment; clomipramine hydrochloride clomipramine hydrochloride a tricyclic antidepressant. clomipramine hydrochloride Anafranil, Apo-Clomipramine (CA), Gen-Clomipramine (CA), Novo-Clopamine (CA) Pharmacologic class: Tricyclic antidepressant (TCA) capsules, an antidepressant antidepressant, any of a wide range of drugs used to treat psychic depression. They are given to elevate mood, counter suicidal thoughts, and increase the effectiveness of psychotherapy. used to treat obsessive-compulsive disorders obsessive-compulsive disorder Mental disorder in which an individual experiences obsessions or compulsions, either singly or together. An obsession is a persistent disturbing preoccupation with an unreasonable idea or feeling (such as of being contaminated through shaking ; and acetazolamide tablets, a glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). treatment). In addition, Taro realized an increase in unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. volume for several of its new generic dermatological dermatological, dermatologic pertaining to dermatology; of or affecting the skin. products. "Company sales should continue to grow based on current demand for Taro's products, existing contractual commitments and those that are under negotiation, as well as anticipated new generic product introductions," stated Rebecca Pike, group vice president, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Controlled Expenses The company continues to control operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. despite larger ongoing investments in R&D. Selling, general and administrative expenses decreased as a percentage of sales to $4,490,000, or 27 percent of sales, in the third quarter of 1997 from $4,450,000, or 30 percent of sales, in the third quarter of 1996. Proprietary Products The company continues development of its non-spill product, a novel multipurpose mul·ti·pur·pose adj. Designed or used for several purposes: a multipurpose room; multipurpose software. multipurpose Adjective delivery system that allows for administering a wide variety of both prescription and over-the-counter products in a liquid vehicle that resists spilling and allows for accurate dosage. "Taro is making excellent progress in developing its one-day treatment for vaginal yeast infections Vaginal yeast infection An overgrowth of fungus in the vaginal area. Mentioned in: Jock Itch and its novel anticonvulsant anticonvulsant /an·ti·con·vul·sant/ (-kon-vul´sant) inhibiting convulsions, or an agent that does this. an·ti·con·vul·sant n. A drug that prevents or relieves convulsions. , and is maintaining a strong generic drug generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. development pipeline," said Barrie Levitt, M.D., chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Strong Balance Sheet The company maintains a strong balance sheet. As of Sept. 30, 1997, 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 $27,517,000, total assets were $70,646,000, and total liabilities were $43,056,000. Bright Outlook The company has multiple regulatory filings in Canada and Israel and nine ANDAs (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 ) currently submitted to the U.S. Food and Drug Administration. Industry sources estimate that the current markets in the United States for the drugs targeted by these ANDAs have an aggregate value of approximately $400 million. "Taro is producing solid results while building for the future through increased R&D investments and capital improvements. In the third quarter of 1997, the company enhanced profitability and reduced selling, general and administrative expenses as a percentage of sales despite continued pricing pressures in the generic pharmaceutical industry," commented Levitt. "Based on our new product introductions and significant investments in R&D, we look forward to continued growth in the current quarter and fiscal 1998." Taro Pharmaceutical Industries is a multinational pharmaceutical company whose research and development program has resulted in the company being the first generic marketer of several branded drugs, as well as the developer of several novel pharmaceutical compounds. For further information on Taro Pharmaceutical Industries, visit the company's Web site at http://www.taropharma.com . To receive additional information on Taro via fax at no charge, dial 800/PRO-INFO and enter company code TAROF. -0- Certain statements in this release regarding expected success in various markets by the company's products, with respect to the results expected from research and development, and as to expected approvals by the U.S. Food and Drug Administration, are forward-looking statements 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. 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 materially from the company's expectations 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, which ended on Dec. 31, 1996. -0-
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except per-share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Sales $ 16,684 $ 14,688 $ 44,937 $ 41,464
Cost of sales 8,001 6,724 21,629 18,260
Gross profit 8,683 7,964 23,308 23,204
Operating expenses:
Research and
development 2,429 2,059 6,702 6,395
Selling and
administrative 4,490 4,450 13,355 13,157
6,919 6,509 20,057 19,552
Operating income 1,764 1,455 3,251 3,652
Financial expenses
-- net 627 538 1,530 1,314
1,137 917 1,721 2,338
Other income
(expense) -- net 4 103 13 115
1,141 1,020 1,734 2,453
Taxes on income 388 311 509 956
753 709 1,225 1,497
Minority share
in profits
(losses) of
subsidiaries 1 3 (9) 15
Net income $ 752 $ 706 $ 1,234 $ 1,482
Earnings per
ordinary share(a) $ 0.07 $ 0.07 $ 0.12 $ 0.14
Weighted average
number of shares
used
in computation 10,324,670 10,418,130 10,510,626 10,374,199
(a) Earnings per ordinary share.
Earnings per share is based on the weighted average number of
outstanding ordinary (common) shares and common stock equivalents
(options). The difference between primary and fully diluted earnings
per share is not significant.
-0-
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
Sept. 30, Dec. 31,
1997 1996
(Unaudited) (Audited)
Assets
Current assets:
Cash and
cash equivalents $ 2,514 $ 2,422
Accounts receivable 25,005 17,479
Inventories 12,709 13,109
Total current assets 40,228 33,010
Property, plant
and equipment, net 25,402 23,672
Other assets 5,016 5,198
Total assets $70,646 $61,880
Liabilities
and Shareholders' Equity
Current liabilities:
Short-term bank credits $10,856 $ 7,883
Current maturities
of long-term liabilities 1,601 1,131
Accounts payable
and accrued expenses 14,450 11,200
Total current liabilities 26,907 20,214
Long-term liabilities 15,643 14,740
Deferred taxes
and other liabilities 506 526
Total liabilities 43,056 35,480
Minority interest 73 82
Shareholders' equity 27,517 26,318
Total liabilities
and shareholders' equity $70,646 $61,880
CONTACT: Taro Pharmaceutical Industries Ltd., Hawthorne Kevin Connelly Kevin Connelly was born in Middlesbrough, England. He is an impressionist comedian, and after dinner speaker and is probably most famous for his role on the popular BBC television programme 'Dead Ringers'. , 914/345-9001 or Financial Relations Board Daniel Saks, 310/442-0599 (general info) Kathy Brunson, 312/266-7800 (analyst contact) |
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