QualityStocks would like to highlight Taro Pharmaceutical Industries Ltd. (OTCQB: TAROF), a multinational, science-based pharmaceutical company. Taro is dedicated to meeting the needs of its customers through the discovery, development, manufacturing, and marketing of the highest quality healthcare products.
In the company’s news Friday, Taro Pharmaceutical provided unaudited financial results for the quarter and full year ended December 31, 2011. Fourth-quarter revenues for 2011 were $148.1 million, a 44.3 percent increase over fourth-quarter revenue for 2010. Gross profit as a percentage of net sales was 71.6 percent, compared to 59.6 percent.
Fourth quarter 2011 operating income of $74.5 million, or 50.3 percent of net sales, represents a significant increase compared to $21.6 million, or 21.0 percent of net sales, reported for the comparable quarter of 2010. Net income for the fourth quarter of 2011 was negatively impacted by foreign exchange (FX) expense of $6.3 million, compared to $3.7 million. Net income attributable to Taro increased to $62.4 million, or diluted earnings per share of $1.40, compared to $16.5 million, or diluted earnings per share of $0.38, reported for the fourth quarter of 2010.
Full year 2011 net sales increased 28.8 percent to $505.7 million. Gross profit as a percentage of net sales was 65.2 percent for full year 2011, compared to 59.5 percent for full year 2010. The company reported 2011 operating income of $204.0 million, or 40.3 percent of net sales, compared to $86.5 million, or 22.0 percent of net sales, for 2010.
Net income for full year 2011 was favorably impacted by FX income of $6.9 million, compared to FX expense of $5.3 million reported in 2010. Net income attributable to Taro was $182.7 million, or diluted earnings per share of $4.11, compared to $64.1 million, or diluted earnings per share of $1.53, for full year 2010.
As of December 31, 2011, Taro reported cash flows from operations at $181.4 million compared to $70.5 million in 2010; cash, including marketable securities, increased $170.0 million from December 31, 2010, to $258.8 million.
“We are very pleased with both 2011′s fourth quarter and full-year performance. The successful execution of our strategic plans and changes we have implemented are reflected in these solid financial results,” Taro’s interim CEO Jim Kedrowski stated in the press release. “The company’s performance across all markets was very positive; however, a significant portion of the quarter’s growth in net sales and profits was derived from price increases on select products in the U.S. market and may not be sustainable.”
Taro also noted that in the fourth quarter of 2011 the company filed an Abbreviated New Drug Application (ANDA) for one product with the U.S. Food and Drug Administration (FDA). For the full year, Taro filed ANDAs for three products and has received approval for ANDAs representing seven products. In addition, the company awaits FDA approval for ANDAs for 23 products and one New Drug Application.
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Forward-Looking Statement: This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
