Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) today provided information about its results for 2007. The company estimates a net profit of $21.1 million on net sales at $313 million for the year. It added that it still cannot predict when it will be able to publish its 2006 or 2007 audited financial statements.
Taro explicitly cautioned, "The financial information being presented is both unaudited and subject to further review and possible change. Additionally, these results do not provide complete financial information and both the 2006 and the 2007 results are subject to audit by the company's outside auditors. These results have not been and will not be subject to quarterly review procedures." The company added, however, that, despite these caveats, it believes that the information "represents the best information currently available to Taro management."
Taro added that its results include $12 million in one-time charges and non-recurring expenses, including significantly higher professional fees due to a restatement of 2003 and 2004 results, a related investigation, and the proposed transaction with Sun Pharmaceutical Industries Ltd. (BSE: 524715). The company had $45 million in cash or cash equivalents at the end of the year after paying off $35 million in debt payments.
Taro noted that Sun Pharmaceutical has invested $59 million in the company since May 2007, including $41 million to help it avoid an impending payment default on certain debt obligations. The two companies are continuing to work on implementing the merger agreement between them.
Taro is scheduled to make principal and interest payments totaling $42 million in 2008, and added that it expects to finance a separate $28 million credit facility due late in the year. The company’s total debt was $218 million at the end of 2007, and it predicts that it will be able to meet all debt payments.
Taro added that the US Food and Drug Administration (FDA) approved the company's New Drug Application for Flo-Pred, which it expects to launch during the third quarter.
As for the financial reports for 2006, Taro said it cannot predict when the review will be completed, but "on the basis of present information, changes in the estimates for those years, if made, may be material. However, the company does not expect that any such changes would affect the results for 2006 and prior years, when taken in the aggregate." It added that it does not think that any changes will affect the 2007 results.
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008