Taro Pharmaceutical Industries .(TARO) - 2023 Q1 - Quarterly Report

Financial Performance - Net sales increased by $9.6 million, or 6.5%, to $156.7 million compared to the same quarter last year[8] - Gross profit was $81.6 million, representing 52.1% of net sales, down from 52.8% in the prior year[8] - Operating income was $14.0 million, or 8.9% of net sales, compared to an operating loss of $(19.2) million in the prior year[8] - Net income attributable to Taro was $14.1 million, resulting in earnings per share of $0.37, compared to a net loss of $(18.8) million and a loss per share of $(0.50) in the prior year[8] - Net income for the quarter ended June 30, 2022, was $14,079, compared to a net loss of $18,767 in the same quarter of 2021[19] Expenses - Research and development (R&D) expenses decreased by $1.4 million to $11.5 million[8] - Selling, marketing, general and administrative expenses increased by $32.1 million to $56.1 million[8] - The company reported a depreciation and amortization expense of $6,978, an increase from $6,346 in the previous year[19] - The company paid $2,410 in income taxes during the year, down from $3,333 in the previous year[19] Cash Flow and Liquidity - Cash flow used in operations for the quarter was $58.0 million, with cash flow provided by operations at $9.6 million, down from $44.0 million in the prior year[8] - Cash flows from operating activities resulted in a net cash used of $58,028, a significant decrease from the net cash provided of $43,993 in the prior year[19] - Cash and cash equivalents at the end of the period were $225,801, down from $614,888 at the beginning of the period[19] - As of June 30, 2022, cash and cash equivalents and marketable securities decreased by $74.7 million to $1.18 billion, primarily due to a $67.6 million settlement payment[8] - The effect of exchange rate changes on cash and cash equivalents resulted in a decrease of $2,060[19] Investments and Approvals - The company has a total of eighteen ANDAs awaiting FDA approval, including four tentative approvals[6] - The company invested $25,000 in short-term bank deposits during the quarter[19] - The net cash provided by investing activities was $34,755, compared to a net cash used of $16,427 in the prior year[19] Legal and Settlements - Taro made a $67.6 million settlement payment related to the Generic Drug Pricing Antitrust Litigation[7] - The company did not repurchase any treasury stock during the quarter, contrasting with a purchase of $18,319 in the same quarter of 2021[19] Trade Receivables - The increase in trade receivables was $19,321, compared to an increase of $3,295 in the same quarter of 2021[19]