-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CG/h6RunWD4+sRpj5nPYKdjXCoSnWekKnwiq5Onvx56ix9aIDppR+bOqGq+CNjeE U7St2ckX0iVgbGr2maaoAQ== 0001157523-05-007140.txt : 20050805 0001157523-05-007140.hdr.sgml : 20050805 20050805171801 ACCESSION NUMBER: 0001157523-05-007140 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050728 FILED AS OF DATE: 20050805 DATE AS OF CHANGE: 20050805 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TARO PHARMACEUTICAL INDUSTRIES LTD CENTRAL INDEX KEY: 0000906338 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22286 FILM NUMBER: 051003755 BUSINESS ADDRESS: STREET 1: 14 HAKTOR ST CITY: HAIFA BAY STATE: L3 ZIP: 26110 MAIL ADDRESS: STREET 1: FIVE SKYLINE DR CITY: HAWTHORNE STATE: NY ZIP: 10532 FORMER COMPANY: FORMER CONFORMED NAME: TARO VIT INDUSTRIES LTD /ISRAEL/ DATE OF NAME CHANGE: 19930601 6-K 1 a4940676.txt TARO PHARMACEUTICALS 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a - 16 or 15d - 16 under the Securities Exchange Act of 1934 For the month of July, 2005 Commission File Number 000-22286 Taro Pharmaceutical Industries Ltd. (Translation of registrant's name into English) 14 Hakitor Street, Haifa Bay 26110, 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-_____ Taro Reports Record Sales for Second Quarter and First Half HAWTHORNE, N.Y.--(BUSINESS WIRE)--July 28, 2005--Taro Pharmaceutical Industries Ltd. (Nasdaq:TARO) today reported results for the Company's second quarter and six months ended June 30, 2005. Second Quarter 2005 Results Taro reported record second-quarter sales of $78.6 million, compared with $49.1 million in the second quarter of 2004. Gross profit for the quarter was $43.5 million, compared with $23.5 million for the second quarter of 2004. The results for the second quarter of 2005 did not include certain sales and gross profit from proprietary consumer products divested in the first quarter of 2005. Selling, general and administrative ("SG&A") expenses for the quarter were $23.3 million, compared with $30.6 million in the year-ago quarter. The reduction in SG&A expenses for the second quarter of 2005 reflects the impact of cost reduction initiatives and a decrease in selling costs following the March 2005 divestiture of the Company's proprietary over-the-counter products in the U.S. R&D expenses in the second quarter of 2005 were $11.8 million, compared with $10.5 million for the year-ago quarter. The Company reported net income for the quarter of $6.5 million, or $0.22 per diluted share, compared with a net loss of $8.9 million, or a net loss of $0.31 per share, for the year-ago quarter. "In addition to reporting record sales for the second quarter and first half of 2005, the Company continued to show sequential improvement in operating income and net income despite intensifying competition in the U.S. market for generic pharmaceutical products," said Barrie Levitt, M.D., Chairman of the Company. "Net income increased 29% compared with the first quarter of 2005 even after Taro increased its investment in research by $2.1 million. In addition, SG&A expenses, on both an absolute basis and as a percentage of sales, are lower. Inventories decreased as we continued to be vigilant in our expense control and cash management programs." First Half 2005 Results Taro reported record first-half sales for 2005 of $157.1 million, compared with $133.2 million for the same period in 2004. The Company's gross profit in the six-month period was $86.9 million, compared with $79.9 million for the same period in 2004. Selling, general and administrative expenses for the period were $49.7 million, compared with $64.7 million for the first half of last year. R&D expenses were $21.6 million, compared with $22.2 million for the year-ago period. Net income for the first half of 2005 was $11.5 million, or $0.39 per diluted share, compared with $2.3 million, or $0.08 per diluted share, for the year-ago period. Financial Position At June 30, 2005, Taro's total assets were $702.5 million, an increase of $5.7 million compared with $696.8 million at December 31, 2004. Total liabilities were $324.1 million at June 30, 2005, a decrease of $3.9 million compared with $328.0 million at the end of 2004. Shareholders' equity at June 30, 2005 was $377.7 million, an increase of $9.6 million compared with $368.1 million at the end of 2004. Proprietary Research Taro is conducting preliminary clinical research in preparation for a Phase III clinical study in Canada of T2000 for the treatment of essential tremor. The Company is also conducting research on T2000 and other proprietary non-sedating barbiturate compounds for a variety of neurological indications. There can be no assurance of the successful completion of Phase III testing, or of the approval by any regulatory authority of any of these drugs for any indication, or their commercial success if and when approved. U.S. FDA Approvals and Filings During the second quarter, Taro reported that it had received FDA approval of its ANDA for ciclopirox olamine cream USP, 0.77%, a topical antifungal product used for treating fungal infections of the skin. This prescription pharmaceutical product is bioequivalent to Medicis Pharmaceutical Corp.'s Loprox(R) Topical Cream. In the second quarter, the Company also received approval of its ANDA for fluticasone propionate ointment 0.005%, a topical corticosteroid product used for treating inflammatory skin disorders. This prescription pharmaceutical product is bioequivalent to GlaxoSmithKline's Cutivate(R) Ointment. Currently, Taro has 28 filings at the FDA. These consist of 27 ANDAs, including two tentative approvals, plus a New Drug Application related to the Company's proprietary NonSpil(R) liquid drug delivery system. In addition, the Company has regulatory filings in Israel, Canada and other countries. According to industry sources, the ANDAs address U.S. markets with annual sales in excess of $1 billion. Conference Call The Company will conduct a conference call to discuss second quarter and six month results on Thursday, July 28, 2005 at 11 a.m. Eastern Time (8 a.m. Pacific Time). The call will be available live via the Internet by accessing www.taro.com. An online replay will be available through August 4, 2005 on www.taro.com. A telephone replay will also be available through August 5, 2005 by dialing 1-888-286-8010 (domestic U.S.) or +617-801-6888 (international) and providing the passcode 82524360 when prompted. Taro 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. Certain statements in this release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements that do not describe historical facts and statements that refer or relate to events or circumstances the Company "anticipates," "expects," "plans," "intends," "designs," "believes," "hopes," or "wants" to happen or exist; statements about which the Company is "optimistic" or has "confidence," or, similar language. Although Taro Pharmaceutical Industries Ltd. 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 economic conditions, industry and market conditions, slower than anticipated penetration of new markets, changes in the Company's financial position, regulatory actions and legislative actions in the countries in which Taro operates, future demand and market size for products under development, marketplace acceptance of new or existing products, either generic or proprietary, sold directly by Taro or through other companies, 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 speak 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. TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (US dollars in thousands) June 30, March 31, December 31, 2005 2005 2004 ---- ---- ---- Assets Current Assets: Cash and Cash Equivalents $78,665 $78,010 $98,630 Restricted Short-Term Bank Deposits 6,750 6,796 6,598 Accounts Receivable - Trade 138,965 129,955 124,674 Accounts Receivable - Other and Prepaid Expenses 19,203 16,434 16,621 Inventories 79,003 80,618 86,591 - ------------------------------------- -------- -------- -------- Total Current Assets 322,586 311,813 333,114 Long Term Investments 18,512 21,300 19,984 Property, Plant and Equipment, net 260,383 257,935 241,966 Deferred Taxes and Other Assets 101,060 102,160 101,783 - ------------------------------------- -------- -------- -------- TOTAL ASSETS $702,541 $693,208 $696,847 ===================================== ======== ======== ======== Liabilities and Shareholders' Equity Current Liabilities: Short-Term Bank Credits $67,282 $58,966 $64,961 Current Maturities of Long-Term Liabilities 19,325 15,517 16,944 Accounts Payable and Accrued Expenses 50,036 51,592 49,624 - ------------------------------------- -------- -------- -------- Total Current Liabilities 136,643 126,075 131,529 Long -Term Liabilities 179,495 183,723 187,346 Deferred Taxes and Other Liabilities 8,003 8,644 9,158 - ------------------------------------- -------- -------- -------- Total Liabilities 324,141 318,442 328,033 Minority Interest 664 654 694 Shareholders' Equity 377,736 374,112 368,120 - ------------------------------------- -------- -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $702,541 $693,208 $696,847 ===================================== ======== ======== ======== TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF INCOME (US dollars in thousands, except per share data) Quarter Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 ---- ---- ---- ---- SALES $78,571 $49,103 $157,112 $133,180 Cost of Sales 35,069 25,613 70,165 53,327 ---------- ---------- ---------- ---------- Gross Profit 43,502 23,490 86,947 79,853 Operating Expenses: Selling, General and Administrative 23,322 30,575 49,739 64,723 Research and Development 11,848 10,510 21,599 22,229 ---------- ---------- ---------- ---------- Operating Income (Loss) 8,332 (17,595) 15,609 (7,099) Financial and Other Expenses Net 1,595 2,183 3,630 3,987 ---------- ---------- ---------- ---------- 6,737 (19,778) 11,979 (11,086) Taxes on Income 233 (10,352) 488 (12,610) ---------- ---------- ---------- ---------- 6,504 (9,426) 11,491 1,524 Minority Share in Profits (Loss) of Subsidiary 11 (566) (30) (736) ---------- ---------- ---------- ---------- NET INCOME (LOSS) $6,493 $(8,860) $11,521 $2,260 ========== ========== ========== ========== Earnings (Loss) per Ordinary Share $0.22 $(0.31) $0.39 $0.08 Diluted Earnings per Ordinary Share $0.22 $0.39 $0.08 Weighted Average Number of Shares: BASIC 29,235,878 29,023,594 29,213,941 29,006,821 DILUTED 29,646,402 29,630,724 29,762,244 CONTACT: Taro Pharmaceutical Industries Ltd. Daniel Saks, 914-345-9000 ext. 6208 OR Kevin Connelly, 914-345-9000 ext. 6338 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: July 28, 2005 Taro Pharmaceutical Industries Ltd. By: /s/ Kevin Connelly ----------------------------------- Name: Kevin Connelly Title: Senior Vice President Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----