Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Taro Provides Results for Year Ended March 31, 2023 By: Taro Pharmaceutical Industries Ltd. via Business Wire May 23, 2023 at 19:00 PM EDT Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and year ended March 31, 2023. Quarter ended March 31, 2023* Highlights ─ compared to March 31, 2022 Net sales of $146.6 million increased $3.3 million, or 2.3%. Gross profit of $75.7 million (51.6% of net sales) compared to $77.3 million (54.0% of net sales). Research and development (R&D) expenses of $16.3 million increased $1.4 million. Selling, marketing, general and administrative expenses (SG&A) of $50.1 million increased $9.0 million. Operating income of $9.3 million compared to operating income of $21.3 million. Interest and other financial income of $8.0 million increased $7.4 million. Foreign Exchange (FX) expense of $0.5 million compared to FX income of $2.5 million ─ an unfavorable impact of $3.0 million. Tax expense of $11.0 million compared to a tax benefit of $2.4 million ─ an unfavorable impact of $13.4 million. Net income attributable to Taro was $6.9 million compared to net income of $27.4 million, resulting in earnings per share of $0.18 compared to earnings per share of $0.73. Year ended March 31, 2023* Highlights ─ compared to March 31, 2022 Net sales of $573.0 million increased $11.6 million. Gross profit of $268.3 million (46.8% of net sales compared to 52.2%) decreased $24.8 million. R&D expenses of $52.2 million decreased $2.3 million. SG&A of $198.4 million increased $84.7 million. In the prior year, settlements and loss contingencies of $61.4 million consisted of a $60.0 million legal contingency related to ongoing multi-jurisdiction civil antitrust matters and $1.4 million related to the global resolution with the Department of Justice (“DOJ”) in connection with its investigations into the U.S. generic pharmaceutical industry. Operating income of $17.7 million compared to $63.5 million. Excluding the $61.4 million impact from the settlement and loss contingencies charges in the prior year, operating income was $124.9 million. Interest and other financial income of $20.9 million increased $12.7 million. FX expense of $2.8 million compared to FX income of $2.0 million ─ an unfavorable impact of $4.8 million. Tax expense of $12.8 million compared to tax expense of $19.6 million, a decrease of $6.8 million. Net income attributable to Taro was $25.4 million compared to $58.3 million, resulting in earnings per share of $0.68 compared to earnings per share of $1.55. Excluding the impact from the settlement and loss contingencies charges in the prior year, net income was $126.4 million, resulting in diluted earnings per share of $3.36. Cash Flow and Balance Sheet Highlights Cash flow provided by operations for the year ended March 31, 2023 was $31.8 million compared to cash used in operations of $158.7 million for the year ended March 31, 2022. Excluding the impact from the settlement payments and settlement and loss contingencies charges impacting both periods, cash flow provided by operations was $99.0 million compared to $165.6 million for the year ended March 31, 2022. As of March 31, 2023, cash and cash equivalents, short-term bank deposits and marketable securities (both short- and long-term) was $1.3 billion in line with March 31, 2022; principally the result of settlement payments. * The March 31, 2023 results include full-year results from the February 28, 2022 acquisition of Alchemee. The Company cautions that the foregoing 2023 financial information is unaudited 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 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** TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share data) Quarter Ended Twelve Months Ended March 31st March 31st 2023 2022 2023 2022 Sales, net $ 146,587 $ 143,264 $ 572,952 $ 561,347 Cost of sales 70,879 65,919 304,629 268,212 Impairment — — — 13 Gross profit 75,708 77,345 268,323 293,122 Operating Expenses: Research and development 16,306 14,892 52,243 54,540 Selling, marketing, general and administrative 50,128 41,175 198,366 113,677 Settlements and loss contingencies — — — 61,446 Operating income * 9,274 21,278 17,714 63,459 Financial (income) expense, net: Interest and other financial income (8,036 ) (685 ) (20,850 ) (8,187 ) Foreign exchange (income) expense 469 (2,541 ) 2,813 (1,986 ) Other gain, net 1,059 512 2,462 4,226 Income before income taxes 17,900 25,016 38,213 77,858 Tax expense 10,987 (2,388 ) 12,768 19,592 Net income attributable to Taro * $ 6,913 $ 27,404 $ 25,445 $ 58,266 Net income per ordinary share attributable to Taro: Basic and Diluted * $ 0.18 $ 0.73 $ 0.68 $ 1.55 Diluted $ 0.18 $ 0.73 $ 0.68 $ 1.55 Weighted-average number of shares used to compute net income per share: Basic and Diluted 37,584,891 37,584,891 37,584,891 37,641,087 May not foot due to rounding. Note: Quarter and year ended March 2023 includes results from Alchemee (acquired February 28, 2022). * Excluding the settlement and loss contingencies charges of $61.4 million for the year ended March 31, 2022, Operating income was $124.9 million, Net income attributable to Taro was $126.4 million, and basic and diluted earnings per share was $3.36. TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) March 31, March 31, 2023 2022 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 154,495 $ 251,134 Short-term bank deposits 119,980 47,586 Marketable securities 575,814 522,028 Accounts receivable and other: Trade, net 202,260 246,973 Other receivables and prepaid expenses 57,210 59,726 Inventories 226,669 210,439 TOTAL CURRENT ASSETS 1,336,428 1,337,886 Marketable securities 404,896 435,189 Property, plant and equipment, net 190,139 199,692 Deferred income taxes 103,672 124,882 Goodwill 17,231 11,820 Other assets 83,147 66,892 TOTAL ASSETS $ 2,135,513 $ 2,176,361 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 68,485 $ 68,232 Other current liabilities 317,064 363,887 TOTAL CURRENT LIABILITIES 385,549 432,119 Deferred taxes and other long-term liabilities 19,106 32,799 TOTAL LIABILITIES 404,655 464,918 Taro shareholders' equity 1,730,858 1,711,443 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,135,513 $ 2,176,361 TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Twelve Months Ended March 31, 2023 2022 (unaudited) (audited) Cash flows from operating activities: Net income $ 25,445 $ 58,266 Adjustments required to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 32,127 25,915 Impairment of long-lived assets — 13 Realized loss on sale of long-lived assets 136 689 Change in derivative instruments, net (24 ) (631 ) Adjustments to Opening Balance-Sheet (PPA) (15,292 ) — Effect of change in exchange rate on marketable securities and bank deposits 2,291 (449 ) Deferred income taxes, net 16,802 23,200 Increase (decrease) in trade receivables, net 37,482 (6,229 ) Increase in inventories, net (16,922 ) (2,082 ) Increase (decrease) in other receivables, income tax receivables, prepaid expenses and other 2,240 (5,451 ) Decrease in trade, income tax, accrued expenses and other payables (60,707 ) (265,278 ) Expense from amortization of marketable securities bonds, net 8,172 13,339 Net cash provided by (used in) operating activities 31,750 (158,698 ) Cash flows from investing activities: Purchase of plant, property & equipment, net (17,553 ) (11,796 ) Acquisition, net of cash acquired — (91,872 ) Investment in other intangible assets (294 ) (243 ) Investment in short-term bank deposits, net (72,394 ) (47,586 ) Proceeds from (investment in) marketable securities, net (33,315 ) (19,084 ) Investment in other investments (2,000 ) — Net cash used in investing activities (125,556 ) (170,581 ) Cash flows from financing activities: Purchase of treasury stock — (24,934 ) Net cash used in financing activities — (24,934 ) Effect of exchange rate changes on cash and cash equivalents (2,833 ) 170 Decrease in cash and cash equivalents (96,639 ) (354,043 ) Cash and cash equivalents at beginning of period 251,134 605,177 Cash and cash equivalents at end of period $ 154,495 $ 251,134 Cash Paid during the year for: Income taxes $ 4,175 $ 7,753 Cash Received during the year for: Income taxes $ 14,156 $ 2,351 Non-cash investing transactions: Purchase of property, plant and equipment included in accounts payable $ 1,242 $ 1,468 Non-cash financing transactions: Purchase of intangible assets $ — $ — Purchase of treasury stock $ — $ — Purchase of marketable securities, net $ 3,038 $ 3,890 Sale of marketable securities $ (314 ) $ 21 View source version on businesswire.com: https://www.businesswire.com/news/home/20230523006054/en/Contacts William J. Coote VP, CFO (914) 345-9001 William.Coote@taro.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Taro Provides Results for Year Ended March 31, 2023 By: Taro Pharmaceutical Industries Ltd. via Business Wire May 23, 2023 at 19:00 PM EDT Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and year ended March 31, 2023. Quarter ended March 31, 2023* Highlights ─ compared to March 31, 2022 Net sales of $146.6 million increased $3.3 million, or 2.3%. Gross profit of $75.7 million (51.6% of net sales) compared to $77.3 million (54.0% of net sales). Research and development (R&D) expenses of $16.3 million increased $1.4 million. Selling, marketing, general and administrative expenses (SG&A) of $50.1 million increased $9.0 million. Operating income of $9.3 million compared to operating income of $21.3 million. Interest and other financial income of $8.0 million increased $7.4 million. Foreign Exchange (FX) expense of $0.5 million compared to FX income of $2.5 million ─ an unfavorable impact of $3.0 million. Tax expense of $11.0 million compared to a tax benefit of $2.4 million ─ an unfavorable impact of $13.4 million. Net income attributable to Taro was $6.9 million compared to net income of $27.4 million, resulting in earnings per share of $0.18 compared to earnings per share of $0.73. Year ended March 31, 2023* Highlights ─ compared to March 31, 2022 Net sales of $573.0 million increased $11.6 million. Gross profit of $268.3 million (46.8% of net sales compared to 52.2%) decreased $24.8 million. R&D expenses of $52.2 million decreased $2.3 million. SG&A of $198.4 million increased $84.7 million. In the prior year, settlements and loss contingencies of $61.4 million consisted of a $60.0 million legal contingency related to ongoing multi-jurisdiction civil antitrust matters and $1.4 million related to the global resolution with the Department of Justice (“DOJ”) in connection with its investigations into the U.S. generic pharmaceutical industry. Operating income of $17.7 million compared to $63.5 million. Excluding the $61.4 million impact from the settlement and loss contingencies charges in the prior year, operating income was $124.9 million. Interest and other financial income of $20.9 million increased $12.7 million. FX expense of $2.8 million compared to FX income of $2.0 million ─ an unfavorable impact of $4.8 million. Tax expense of $12.8 million compared to tax expense of $19.6 million, a decrease of $6.8 million. Net income attributable to Taro was $25.4 million compared to $58.3 million, resulting in earnings per share of $0.68 compared to earnings per share of $1.55. Excluding the impact from the settlement and loss contingencies charges in the prior year, net income was $126.4 million, resulting in diluted earnings per share of $3.36. Cash Flow and Balance Sheet Highlights Cash flow provided by operations for the year ended March 31, 2023 was $31.8 million compared to cash used in operations of $158.7 million for the year ended March 31, 2022. Excluding the impact from the settlement payments and settlement and loss contingencies charges impacting both periods, cash flow provided by operations was $99.0 million compared to $165.6 million for the year ended March 31, 2022. As of March 31, 2023, cash and cash equivalents, short-term bank deposits and marketable securities (both short- and long-term) was $1.3 billion in line with March 31, 2022; principally the result of settlement payments. * The March 31, 2023 results include full-year results from the February 28, 2022 acquisition of Alchemee. The Company cautions that the foregoing 2023 financial information is unaudited 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 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** TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share data) Quarter Ended Twelve Months Ended March 31st March 31st 2023 2022 2023 2022 Sales, net $ 146,587 $ 143,264 $ 572,952 $ 561,347 Cost of sales 70,879 65,919 304,629 268,212 Impairment — — — 13 Gross profit 75,708 77,345 268,323 293,122 Operating Expenses: Research and development 16,306 14,892 52,243 54,540 Selling, marketing, general and administrative 50,128 41,175 198,366 113,677 Settlements and loss contingencies — — — 61,446 Operating income * 9,274 21,278 17,714 63,459 Financial (income) expense, net: Interest and other financial income (8,036 ) (685 ) (20,850 ) (8,187 ) Foreign exchange (income) expense 469 (2,541 ) 2,813 (1,986 ) Other gain, net 1,059 512 2,462 4,226 Income before income taxes 17,900 25,016 38,213 77,858 Tax expense 10,987 (2,388 ) 12,768 19,592 Net income attributable to Taro * $ 6,913 $ 27,404 $ 25,445 $ 58,266 Net income per ordinary share attributable to Taro: Basic and Diluted * $ 0.18 $ 0.73 $ 0.68 $ 1.55 Diluted $ 0.18 $ 0.73 $ 0.68 $ 1.55 Weighted-average number of shares used to compute net income per share: Basic and Diluted 37,584,891 37,584,891 37,584,891 37,641,087 May not foot due to rounding. Note: Quarter and year ended March 2023 includes results from Alchemee (acquired February 28, 2022). * Excluding the settlement and loss contingencies charges of $61.4 million for the year ended March 31, 2022, Operating income was $124.9 million, Net income attributable to Taro was $126.4 million, and basic and diluted earnings per share was $3.36. TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) March 31, March 31, 2023 2022 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 154,495 $ 251,134 Short-term bank deposits 119,980 47,586 Marketable securities 575,814 522,028 Accounts receivable and other: Trade, net 202,260 246,973 Other receivables and prepaid expenses 57,210 59,726 Inventories 226,669 210,439 TOTAL CURRENT ASSETS 1,336,428 1,337,886 Marketable securities 404,896 435,189 Property, plant and equipment, net 190,139 199,692 Deferred income taxes 103,672 124,882 Goodwill 17,231 11,820 Other assets 83,147 66,892 TOTAL ASSETS $ 2,135,513 $ 2,176,361 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 68,485 $ 68,232 Other current liabilities 317,064 363,887 TOTAL CURRENT LIABILITIES 385,549 432,119 Deferred taxes and other long-term liabilities 19,106 32,799 TOTAL LIABILITIES 404,655 464,918 Taro shareholders' equity 1,730,858 1,711,443 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,135,513 $ 2,176,361 TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Twelve Months Ended March 31, 2023 2022 (unaudited) (audited) Cash flows from operating activities: Net income $ 25,445 $ 58,266 Adjustments required to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 32,127 25,915 Impairment of long-lived assets — 13 Realized loss on sale of long-lived assets 136 689 Change in derivative instruments, net (24 ) (631 ) Adjustments to Opening Balance-Sheet (PPA) (15,292 ) — Effect of change in exchange rate on marketable securities and bank deposits 2,291 (449 ) Deferred income taxes, net 16,802 23,200 Increase (decrease) in trade receivables, net 37,482 (6,229 ) Increase in inventories, net (16,922 ) (2,082 ) Increase (decrease) in other receivables, income tax receivables, prepaid expenses and other 2,240 (5,451 ) Decrease in trade, income tax, accrued expenses and other payables (60,707 ) (265,278 ) Expense from amortization of marketable securities bonds, net 8,172 13,339 Net cash provided by (used in) operating activities 31,750 (158,698 ) Cash flows from investing activities: Purchase of plant, property & equipment, net (17,553 ) (11,796 ) Acquisition, net of cash acquired — (91,872 ) Investment in other intangible assets (294 ) (243 ) Investment in short-term bank deposits, net (72,394 ) (47,586 ) Proceeds from (investment in) marketable securities, net (33,315 ) (19,084 ) Investment in other investments (2,000 ) — Net cash used in investing activities (125,556 ) (170,581 ) Cash flows from financing activities: Purchase of treasury stock — (24,934 ) Net cash used in financing activities — (24,934 ) Effect of exchange rate changes on cash and cash equivalents (2,833 ) 170 Decrease in cash and cash equivalents (96,639 ) (354,043 ) Cash and cash equivalents at beginning of period 251,134 605,177 Cash and cash equivalents at end of period $ 154,495 $ 251,134 Cash Paid during the year for: Income taxes $ 4,175 $ 7,753 Cash Received during the year for: Income taxes $ 14,156 $ 2,351 Non-cash investing transactions: Purchase of property, plant and equipment included in accounts payable $ 1,242 $ 1,468 Non-cash financing transactions: Purchase of intangible assets $ — $ — Purchase of treasury stock $ — $ — Purchase of marketable securities, net $ 3,038 $ 3,890 Sale of marketable securities $ (314 ) $ 21 View source version on businesswire.com: https://www.businesswire.com/news/home/20230523006054/en/Contacts William J. Coote VP, CFO (914) 345-9001 William.Coote@taro.com
Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and year ended March 31, 2023. Quarter ended March 31, 2023* Highlights ─ compared to March 31, 2022 Net sales of $146.6 million increased $3.3 million, or 2.3%. Gross profit of $75.7 million (51.6% of net sales) compared to $77.3 million (54.0% of net sales). Research and development (R&D) expenses of $16.3 million increased $1.4 million. Selling, marketing, general and administrative expenses (SG&A) of $50.1 million increased $9.0 million. Operating income of $9.3 million compared to operating income of $21.3 million. Interest and other financial income of $8.0 million increased $7.4 million. Foreign Exchange (FX) expense of $0.5 million compared to FX income of $2.5 million ─ an unfavorable impact of $3.0 million. Tax expense of $11.0 million compared to a tax benefit of $2.4 million ─ an unfavorable impact of $13.4 million. Net income attributable to Taro was $6.9 million compared to net income of $27.4 million, resulting in earnings per share of $0.18 compared to earnings per share of $0.73. Year ended March 31, 2023* Highlights ─ compared to March 31, 2022 Net sales of $573.0 million increased $11.6 million. Gross profit of $268.3 million (46.8% of net sales compared to 52.2%) decreased $24.8 million. R&D expenses of $52.2 million decreased $2.3 million. SG&A of $198.4 million increased $84.7 million. In the prior year, settlements and loss contingencies of $61.4 million consisted of a $60.0 million legal contingency related to ongoing multi-jurisdiction civil antitrust matters and $1.4 million related to the global resolution with the Department of Justice (“DOJ”) in connection with its investigations into the U.S. generic pharmaceutical industry. Operating income of $17.7 million compared to $63.5 million. Excluding the $61.4 million impact from the settlement and loss contingencies charges in the prior year, operating income was $124.9 million. Interest and other financial income of $20.9 million increased $12.7 million. FX expense of $2.8 million compared to FX income of $2.0 million ─ an unfavorable impact of $4.8 million. Tax expense of $12.8 million compared to tax expense of $19.6 million, a decrease of $6.8 million. Net income attributable to Taro was $25.4 million compared to $58.3 million, resulting in earnings per share of $0.68 compared to earnings per share of $1.55. Excluding the impact from the settlement and loss contingencies charges in the prior year, net income was $126.4 million, resulting in diluted earnings per share of $3.36. Cash Flow and Balance Sheet Highlights Cash flow provided by operations for the year ended March 31, 2023 was $31.8 million compared to cash used in operations of $158.7 million for the year ended March 31, 2022. Excluding the impact from the settlement payments and settlement and loss contingencies charges impacting both periods, cash flow provided by operations was $99.0 million compared to $165.6 million for the year ended March 31, 2022. As of March 31, 2023, cash and cash equivalents, short-term bank deposits and marketable securities (both short- and long-term) was $1.3 billion in line with March 31, 2022; principally the result of settlement payments. * The March 31, 2023 results include full-year results from the February 28, 2022 acquisition of Alchemee. The Company cautions that the foregoing 2023 financial information is unaudited 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 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** TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share data) Quarter Ended Twelve Months Ended March 31st March 31st 2023 2022 2023 2022 Sales, net $ 146,587 $ 143,264 $ 572,952 $ 561,347 Cost of sales 70,879 65,919 304,629 268,212 Impairment — — — 13 Gross profit 75,708 77,345 268,323 293,122 Operating Expenses: Research and development 16,306 14,892 52,243 54,540 Selling, marketing, general and administrative 50,128 41,175 198,366 113,677 Settlements and loss contingencies — — — 61,446 Operating income * 9,274 21,278 17,714 63,459 Financial (income) expense, net: Interest and other financial income (8,036 ) (685 ) (20,850 ) (8,187 ) Foreign exchange (income) expense 469 (2,541 ) 2,813 (1,986 ) Other gain, net 1,059 512 2,462 4,226 Income before income taxes 17,900 25,016 38,213 77,858 Tax expense 10,987 (2,388 ) 12,768 19,592 Net income attributable to Taro * $ 6,913 $ 27,404 $ 25,445 $ 58,266 Net income per ordinary share attributable to Taro: Basic and Diluted * $ 0.18 $ 0.73 $ 0.68 $ 1.55 Diluted $ 0.18 $ 0.73 $ 0.68 $ 1.55 Weighted-average number of shares used to compute net income per share: Basic and Diluted 37,584,891 37,584,891 37,584,891 37,641,087 May not foot due to rounding. Note: Quarter and year ended March 2023 includes results from Alchemee (acquired February 28, 2022). * Excluding the settlement and loss contingencies charges of $61.4 million for the year ended March 31, 2022, Operating income was $124.9 million, Net income attributable to Taro was $126.4 million, and basic and diluted earnings per share was $3.36. TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) March 31, March 31, 2023 2022 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 154,495 $ 251,134 Short-term bank deposits 119,980 47,586 Marketable securities 575,814 522,028 Accounts receivable and other: Trade, net 202,260 246,973 Other receivables and prepaid expenses 57,210 59,726 Inventories 226,669 210,439 TOTAL CURRENT ASSETS 1,336,428 1,337,886 Marketable securities 404,896 435,189 Property, plant and equipment, net 190,139 199,692 Deferred income taxes 103,672 124,882 Goodwill 17,231 11,820 Other assets 83,147 66,892 TOTAL ASSETS $ 2,135,513 $ 2,176,361 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 68,485 $ 68,232 Other current liabilities 317,064 363,887 TOTAL CURRENT LIABILITIES 385,549 432,119 Deferred taxes and other long-term liabilities 19,106 32,799 TOTAL LIABILITIES 404,655 464,918 Taro shareholders' equity 1,730,858 1,711,443 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,135,513 $ 2,176,361 TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Twelve Months Ended March 31, 2023 2022 (unaudited) (audited) Cash flows from operating activities: Net income $ 25,445 $ 58,266 Adjustments required to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 32,127 25,915 Impairment of long-lived assets — 13 Realized loss on sale of long-lived assets 136 689 Change in derivative instruments, net (24 ) (631 ) Adjustments to Opening Balance-Sheet (PPA) (15,292 ) — Effect of change in exchange rate on marketable securities and bank deposits 2,291 (449 ) Deferred income taxes, net 16,802 23,200 Increase (decrease) in trade receivables, net 37,482 (6,229 ) Increase in inventories, net (16,922 ) (2,082 ) Increase (decrease) in other receivables, income tax receivables, prepaid expenses and other 2,240 (5,451 ) Decrease in trade, income tax, accrued expenses and other payables (60,707 ) (265,278 ) Expense from amortization of marketable securities bonds, net 8,172 13,339 Net cash provided by (used in) operating activities 31,750 (158,698 ) Cash flows from investing activities: Purchase of plant, property & equipment, net (17,553 ) (11,796 ) Acquisition, net of cash acquired — (91,872 ) Investment in other intangible assets (294 ) (243 ) Investment in short-term bank deposits, net (72,394 ) (47,586 ) Proceeds from (investment in) marketable securities, net (33,315 ) (19,084 ) Investment in other investments (2,000 ) — Net cash used in investing activities (125,556 ) (170,581 ) Cash flows from financing activities: Purchase of treasury stock — (24,934 ) Net cash used in financing activities — (24,934 ) Effect of exchange rate changes on cash and cash equivalents (2,833 ) 170 Decrease in cash and cash equivalents (96,639 ) (354,043 ) Cash and cash equivalents at beginning of period 251,134 605,177 Cash and cash equivalents at end of period $ 154,495 $ 251,134 Cash Paid during the year for: Income taxes $ 4,175 $ 7,753 Cash Received during the year for: Income taxes $ 14,156 $ 2,351 Non-cash investing transactions: Purchase of property, plant and equipment included in accounts payable $ 1,242 $ 1,468 Non-cash financing transactions: Purchase of intangible assets $ — $ — Purchase of treasury stock $ — $ — Purchase of marketable securities, net $ 3,038 $ 3,890 Sale of marketable securities $ (314 ) $ 21 View source version on businesswire.com: https://www.businesswire.com/news/home/20230523006054/en/