Taro Pharma (TARO) Reports Q1 Loss of $11.37 on Revenues of $117.6M

Taro Pharma (NYSE: TARO) reported Q1 EPS of ($11.37), versus $1.72 reported last year. Revenue for the quarter came in at $117.6 million versus the consensus estimate of $158.35 million.

Quarter ended June 30, 2020 Highlights - compared to Quarter ended June 30, 2019

• Net sales of $117.6 million, decreased $43.7 million.
• Gross profit of $64.9 million decreased $36.8 million, and as a percentage of net sales was 55.2% compared to 63.1%.
• Research and development expenses of $12.9 million decreased slightly from the prior year.
• Selling, marketing, general and administrative expenses of $22.2 million, which includes the impact of COVID-19 related expenses and higher legal expenses, increased $2.5 million.
• Settlements and loss contingencies of $478.9 million reflect the one-time settlement charge of $418.9 million related to the global resolution of the Department of Justice investigations into the U.S. generic pharmaceutical industry. An additional provision of $60.0 million has been taken for the related ongoing multi-jurisdiction civil antitrust matters; however, there can be no assurance as to the ultimate outcome.
• Operating (loss) income was $(449.2) million. Excluding the settlement and loss contingencies charges, operating income was $29.8 million, a decrease of $38.8 million, and as a percentage of net sales was 25.3% as compared to 42.5%.
• Interest and other financial income decreased $2.3 million to $7.3 million, reflecting the lower global interest rate environment.
• Foreign Exchange income of $0.2 million compared to $7.9 million in the comparable quarter ─ an unfavorable impact of $7.7 million.
• Tax expense of $8.9 million compared to a tax expense of $20.4 million ─ a favorable impact of $11.5 million. Excluding the impact from the settlement and loss contingencies charges, the effective tax rate for the quarter was 23.4% as compared to 23.6%.
• Net (loss) income attributable to Taro was $(434.9) million. Excluding the settlement and loss contingencies charges, net income was $29.0 million compared to $66.2 million. Diluted (loss) per share for the quarter was $(11.37). Excluding the settlement and loss contingencies charges, diluted earnings per share was $0.76 compared to $1.72.

Mr. Uday Baldota, Taro’s CEO stated, “Regarding our results — they reflect the challenging times that we are facing, not only due to the continuing uncertainty of the duration and impact of the COVID─19 pandemic, but also in the overall U.S. generic industry — which we believe will continue in the foreseeable future. We are happy to have reached a resolution with the DOJ, so that we can move forward and sharpen our focus on growing our business.”

For earnings history and earnings-related data on Taro Pharma (TARO) click here.

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