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 October 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 SEPTEMBER 30, 2023

Hawthorne, NY, October 26, 2023 - Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and six months ended September 30, 2023.

Quarter ended September 30, 2023 Highlights ─ compared to September 30, 2022

Six Months ended September 30, 2023 Highlights ─ compared to September 30, 2022

 

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Cash Flow and Balance Sheet Highlights

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
(Unaudited)
(U.S. dollars in thousands, except share data)
	Quarter Ended								Six Months Ended
	September 30,								September 30,
	2023				2022				2023				2022
Sales, net	$	148,202			$	130,498			$	307,096			$	287,163
Cost of sales		74,600				83,536				169,410				158,595
Gross profit		73,602				46,962				137,686				128,568
Operating Expenses:
Research and development		14,325				11,522				30,470				23,030
Selling, marketing, general and administrative		54,537				42,255				110,398				98,377
Operating income/(loss) *		4,740				(6,815	)			(3,182	)			7,161
Financial (income)/expense, net:
Interest and other financial income		(13,972	)			(4,296	)			(24,862	)			(6,222	)
Foreign exchange (income)/expense		1,623				2,788				(460	)			3,082
Other gain, net		566				395				956				839
Income/(loss) before income taxes		17,655				(4,913	)			23,096				11,140
Tax expense/(benefit)		9,108				(2,100	)			4,515				(126	)
Net income/(loss) *	$	8,547			$	(2,813	)		$	18,581			$	11,266
Net income/(loss) per ordinary share:
Basic and Diluted *	$	0.23			$	(0.07	)		$	0.49			$	0.30
Weighted-average number of shares used to compute net income/(loss) per share:
Basic and Diluted		37,584,891				37,584,891				37,584,891				37,584,891
May not foot due to rounding.

 

 

 

 

 

 

 

 

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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		September 30,				March 31,
		2023				2023
ASSETS		(unaudited)				(audited)
CURRENT ASSETS:
Cash and cash equivalents		$	269,011			$	154,495
Short-term bank deposits			119,980				119,980
Marketable securities			518,058				575,814
Accounts receivable and other:
Trade, net			181,064				202,260
Other receivables and prepaid expenses			46,254				57,210
Inventories			208,188				226,669
TOTAL CURRENT ASSETS			1,342,555				1,336,428
Marketable securities			388,370				404,896
Property, plant and equipment, net			189,893				190,139
Deferred income taxes			100,807				103,672
Goodwill			17,231				17,231
Other assets			80,617				83,147
TOTAL ASSETS		$	2,119,473			$	2,135,513
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	43,059			$	68,485
Other current liabilities			318,429				317,064
TOTAL CURRENT LIABILITIES			361,488				385,549
Deferred taxes and other long-term liabilities			10,429				19,106
TOTAL LIABILITIES			371,917				404,655
Taro shareholders' equity			1,747,556				1,730,858
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,119,473			$	2,135,513

 

 

 

 

 

 

 

 

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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
		Six Months Ended September 30,
		2023				2022
Cash flows from operating activities:
Net income		$	18,581			$	11,266
Adjustments required to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			15,498				13,994
Change in derivative instruments, net			—				(24	)
Decrease in goodwill and intangible assets			250				—
Effect of change in exchange rate on marketable securities and bank deposits			202				1,358
Deferred income taxes, net			2,539				2,245
Decrease (increase) in trade receivables, net			20,927				(2,071	)
Decrease (increase) in inventories, net			18,356				(5,316	)
Decrease in other receivables, income tax receivables, prepaid expenses and other			10,862				5,739
Decrease in trade, income tax, accrued expenses and other payables			(28,837	)			(71,798	)
(Income)/expense from amortization of marketable securities bonds, net			(3,085	)			6,940
Net cash provided by (used in) operating activities			55,293				(37,667	)
Cash flows from investing activities:
Purchase of plant, property & equipment, net			(13,800	)			(3,443	)
Investment in other intangible assets			(50	)			(68	)
Investment in short-term bank deposits, net			—				(48,044	)
Proceeds from marketable securities, net			73,716				15,516
Net cash used in (provided by) investing activities			59,866				(36,039	)
Cash flows from financing activities:
Net cash used in financing activities			—				—
Effect of exchange rate changes on cash and cash equivalents			(643	)			(2,237	)
Increase (decrease) in cash and cash equivalents			114,516				(75,943	)
Cash and cash equivalents at beginning of period			154,495				251,134
Cash and cash equivalents at end of period		$	269,011			$	175,191
Cash Paid during the year for:
Income taxes		$	6,232			$	3,091
Cash Received during the year for:
Income taxes		$	12,930			$	14,156
Non-cash investing transactions:
Purchase of property, plant and equipment included in accounts payable		$	1,097			$	3,206
Non-cash financing transactions:
Purchase of marketable securities, net		$	157			$	6,199
Sale of marketable securities		$	157			$	—

 

 

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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: October 26, 2023

TARO PHARMACEUTICAL INDUSTRIES LTD.
 

By: /s/ Uday Baldota

Name: Uday Baldota

Title: Chief Executive Officer and Director

 

 

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