Form 6-K TARO PHARMACEUTICAL INDU For: Aug 06

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August 6, 2015 5:25 PM EDT
 
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 August, 2015

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   x     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): _____

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  Yes   ¨     No   x

 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____.
 
 
 
 
 
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:  August 6, 2015
 
TARO PHARMACEUTICAL INDUSTRIES LTD.

By:   /s/ Subramanian Kalyanasundaram                                                                           
        Name:  Subramanian Kalyanasundaram
        Title:    Chief Executive Officer and Director
 
 
 
 
 
 
 
 logo
Taro Pharmaceutical Industries Ltd.
c/o Taro Pharmaceuticals U.S.A., Inc
Three Skyline Drive
Hawthorne, New York 10532
(NYSE: TARO)
 
 
FOR IMMEDIATE RELEASE
 

 
CONTACTS:
 
Michael Kalb
William J. Coote
GVP, CFO  
(914) 345-9001 (914) 345-9001
[email protected] [email protected]
 
 

TARO PROVIDES RESULTS FOR QUARTER ENDED JUNE 2015

Hawthorne, NY, August 6, 2015 - Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter ended June 30, 2015.

Quarter ended June 30, 2015 Highlights - compared to June 30, 2014
●
Net sales of $215 million, reflects an increase of $85 million.  Last year’s quarter net sales were negatively impacted by a $79 million provision for price protection (current quarter’s price protection provision was $14 million).  On a pro-forma basis, adjusted for the price protection provisions, the net sales increase would have been 10%.  Sales volumes declined 10% as the result of an increase in competitor activity in the U.S. market.
●
Gross profit was $172 million as compared to $85 million. Excluding the impact of the aforementioned price adjustments in both periods, the gross profit increase would have been 13% over the same period last year.
●
Research and development (R&D) and Selling, marketing, general and administrative expenses remained relatively flat.
●
Operating income increased $80 million to $134 million, primarily due to the benefits realized from the price adjustments in the prior year.  Excluding the non-recurring items, operating income on a comparable basis, would have increased approximately 17%.
●
Net income attributable to Taro was $104 million compared to $46 million, a $58 million increase, resulting in diluted earnings per share of $2.42 compared to $1.08.

Cash Flow and Balance Sheet Highlights
●
Cash flow provided by operations was $68 million compared to $36 million for the three months ended June 30, 2014.
●
Cash, including short-term bank deposits and marketable securities, increased $77 million to $998 million from March 31, 2015.

Mr. Kal Sundaram, Taro’s CEO stated, “As we have stated in the past, we remain cautious of the ever-increasing pressure on our business from strong competition and the continuing industry and customer consolidations.  We continue our commitment to building a strong, quality pipeline of products through our investment in our R&D efforts which, along with our business development efforts, will help to fuel our medium and long-term growth”.

- more -
 
 
 
 
 
 
Taro Pharmaceutical Industries Ltd.
Page 2 of  5
 
FDA Approvals and Filings

The Company recently received approvals from the U.S. Food and Drug Administration (“FDA”) for the Abbreviated New Drug Applications (“ANDAs”) Desloratadine Oral Solution, 0.5 mg/mL and Loratadine Oral Solution USP, 1 mg/mL (Sugar Free, Bubble Gum Flavor, OTC).  The Company has a total of thirty-two ANDAs and one NDA for Orphan indication, awaiting FDA approval.


Form 20-F Filings with the SEC

On July 1, the Company filed its Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (“SEC”) for the fiscal year ended March 31, 2015.


The Company cautions that the foregoing financial information is presented on an unaudited basis and is subject to change.

************************

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 2016.  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**
 
 
 
 
 
Taro Pharmaceutical Industries Ltd.
Page 3 of 5
 
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(U.S. dollars in thousands, except share data)
 
   
Three Months Ended June 30,
  
   
2015
    
2014
  
             
Sales, net
   $ 215,278     $ 130,230  
Cost of sales
     43,474       44,863  
Gross profit
     171,804       85,367  
                 
Operating Expenses:
                
Research and development
     14,540       14,988  
Selling, marketing, general and administrative
     22,892       22,386  
Settlements and loss contingencies
     -       (6,500 )
Operating income
     134,372       54,493  
                 
Financial Expenses, net:
                
Interest and other financial income
     (3,269 )     (1,568 )
Foreign exchange expense
     4,200       5,242  
                 
Other income, net
     352       406  
Income before income taxes
     133,793       51,225  
Tax expense
     30,089       4,903  
Income from continuing operations
     103,704       46,322  
Net loss from discontinued operations
     (31 )     (124 )
Net income
     103,673       46,198  
Net income attributable to non-controlling interest
     37       100  
Net income attributable to Taro
   $ 103,636     $ 46,098  
                 
Net income per ordinary share from continuing operations
attributable to Taro:
                
Basic
   $ 2.42     $ 1.08  
Diluted
   $ 2.42     $ 1.08  
                 
Net loss per ordinary share from discontinued operations
attributable to Taro:
                
Basic
   $ (0.00 )*   $ (0.00 )*
Diluted
   $ (0.00 )*   $ (0.00 )*
                 
Net income per ordinary share attributable to Taro:
                
                 
Basic
   $ 2.42     $ 1.08  
Diluted
   $ 2.42     $ 1.08  
                 
Weighted-average number of ordinary shares used to
compute net income per ordinary share:
                
Basic
     42,833,533       42,832,648  
Diluted
     42,833,533       42,833,325  
                 
                 
*Amount is less than $0.01
                
 
 
 
 
 
 
Taro Pharmaceutical Industries Ltd.
Page 4 of 5
 
 
TARO PHARMACEUTICAL INDUSTRIES LTD.
 SUMMARY CONSOLIDATED BALANCE SHEETS
 (U.S. dollars in thousands)

   
June 30,
2015
    
March 31,
2015
  
   
(unaudited)
    
(audited)
  
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 438,998     $ 481,641  
Short-term bank deposits
     555,122       434,899  
Restricted short-term bank deposits
     -       199  
Marketable securities
     3,425       3,458  
Accounts Receivable and other:
                
Trade, net
     196,795       222,427  
Other receivables and prepaid expenses
     257,228       250,911  
Inventories
     119,382       120,272  
TOTAL CURRENT ASSETS
     1,570,950       1,513,807  
                 
Long-term receivables
     41,419       46,330  
Property, plant and equipment, net
     152,902       153,045  
Other assets
     23,746       24,563  
TOTAL  ASSETS
   $ 1,789,017     $ 1,737,745  
                 
                 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Current maturities of long-term debt
   $ 925     $ 912  
Trade payable and other current liabilities
     248,079       309,093  
TOTAL CURRENT LIABILITIES
     249,004       310,005  
                 
Long -term debt, net of current maturities
     4,740       4,976  
Deferred income taxes and other long-term liabilities
     5,260       5,381  
TOTAL LIABILITIES
     259,004       320,362  
                 
Taro shareholders' equity
     1,524,312       1,411,720  
Non-controlling interest
     5,701       5,663  
                 
TOTAL LIABILITIES AND SHAREHOLDERS'  EQUITY
   $ 1,789,017     $ 1,737,745  
 
 
 
 
 
Taro Pharmaceutical Industries Ltd.
Page 5 of 5
 
 
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(U.S. dollars in thousands)
 
 
   
Three Months Ended June 30,
  
   
2015
    
2014
  
Operating Acitivities
            
Net Income
   $ 103,673     $ 46,198  
Adjustments required to reconcile net income to net cash provided by operating
activities:
                
                 
Depreciation and amortization
     3,913       3,964  
Gain (loss) on sale of marketable securities and long-lived assets
     48       (39 )
Increase in long-term debt due to currency fluctuations
     -       206  
Decrease in trade receivables
     25,809       35,636  
Change in derivative instruments, net
     (5,198 )     (3,989 )
Increase in other receivables, prepaid expenses and other assets
     (5,785 )     (42,651 )
Decrease (increase) in inventories
     1,317       (8,656 )
Foreign exchange effect on intercompany balances
     1,716       5,209  
Decrease in trade and other payables and accruals
     (57,226 )     (144 )
Net cash provided by operating activities
     68,267       35,734  
                 
Investing Activities:
                
Purchase of property plant & equiptment
     (2,393 )     (6,058 )
 (Investment in) proceeds from sale of property plant & equipment and other intangible assets     (15 )      78  
Investment in long-term deposits and other assets
     (20,000 )     (14,708 )
(Investment in) proceeds from short-term and bank deposits
     (92,124 )     90,078  
Investment in marketable securities, net
     (16 )     -  
Net cash (used in) provided by investing activities
     (114,548 )     69,390  
                 
Financing Activities:
                
Proceeds from the issuance of shares, net
     -       13  
Repayments of long-term debt
     (223 )     (209 )
Net cash used in financing activities
     (223 )     (196 )
                 
Effect of exchange rate changes
     3,861       2,978  
Net (decrease) increase in cash
     (42,643 )     107,906  
Cash at beginning of period
     481,641       209,967  
                 
Cash at end of period
   $ 438,998     $ 317,873  
                 
 
 
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