Taro Pharmaceutical Industries .(TARO) - 2023 Q4 - Annual Report

Financial Performance - Net sales for the quarter ended March 31, 2023, were $146.6 million, an increase of $3.3 million or 2.3% compared to the same quarter in 2022[7] - Gross profit for the year ended March 31, 2023, was $268.3 million, representing 46.8% of net sales, a decrease of $24.8 million from the previous year[7] - Operating income for the year was $17.7 million, down from $63.5 million, with a significant impact from prior year settlements and loss contingencies of $61.4 million[7] - Net income attributable to Taro for the year was $25.4 million, compared to $58.3 million in the previous year, resulting in earnings per share of $0.68 compared to $1.55[7] - Net income for the twelve months ended March 31, 2023, was $25,445 million, a decrease of 56.4% compared to $58,266 million in 2022[17] Expenses - Research and development (R&D) expenses for the year were $52.2 million, a decrease of $2.3 million compared to the prior year[7] - Selling, general and administrative (SG&A) expenses increased by $84.7 million to $198.4 million for the year ended March 31, 2023[7] - The company incurred $4,175 million in cash paid for income taxes during the year, down from $7,753 million in the previous year[17] Cash Flow and Liquidity - Cash flow provided by operations for the year was $31.8 million, a significant improvement from cash used in operations of $158.7 million in the prior year[7] - Cash flows from operating activities provided $31,750 million, a significant recovery from a cash outflow of $158,698 million in the previous year[17] - Cash and cash equivalents at the end of the period were $154,495 million, down from $251,134 million at the beginning of the period, reflecting a decrease of 38.5%[17] - As of March 31, 2023, total cash and cash equivalents, short-term bank deposits, and marketable securities amounted to $1.3 billion, consistent with the previous year[7] Investments and Assets - The company reported a net cash used in investing activities of $125,556 million, compared to $170,581 million in the prior year, indicating a reduction of 26.4%[17] - The company experienced a decrease in trade receivables, net, amounting to $37,482 million, compared to a decrease of $6,229 million in the previous year[17] - The company reported an increase in inventories, net, of $16,922 million, compared to an increase of $2,082 million in the previous year[17] - The company had a realized loss on the sale of long-lived assets of $136 million, down from $689 million in the previous year[17] - The company did not engage in any acquisitions during the year, contrasting with a cash outflow of $91,872 million for acquisitions in the previous year[17] - The company reported a decrease in cash received for income taxes to $14,156 million from $2,351 million in the previous year[17] Strategic Focus - The company anticipates continued focus on R&D and market expansion strategies in the upcoming fiscal year[10] - Taro's management emphasizes the importance of navigating regulatory challenges and market conditions to achieve future growth[10]