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Trinity Biotech Announces Results for Q3, 2019

DUBLIN, Ireland, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Trinity Biotech plc (TRIB), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced results for the quarter ended September 30, 2019.

Quarter 3 Results

Total revenues for Q3, 2019 were $24.6m, which is broken down as follows:

  2018 2019  
  Quarter 3 Quarter 3 Change
  US$’000 US$’000 %
Point-of-Care 3,005 3,880 29.1%
Clinical Laboratory 20,707 20,714 (0.0%)
Total 23,712 24,594 3.7%

Point-of-Care revenues for Q3, 2019 increased from $3.0m to $3.9m. This was due to higher HIV sales in Africa, partially offset by a reduction in U.S. HIV revenues.

Meanwhile, Clinical Laboratory sales for the quarter were $20.7m which is flat compared to the same period last year.  However, excluding the impact of currency movements, due to the strength of the U.S. dollar versus a basket of currencies in which the company invoices, Q3 Clinical Laboratory revenues would have increased by over 1%. During the quarter, both Premier and Autoimmunity revenues continued to increase, though this was offset by lower Infectious Diseases revenues in the USA, including Lyme revenues. 

The gross margin for the quarter was 41.0%, which compares to 42.1% in Q3, 2018. This decrease was due to the impact of the higher number of instruments sold during the quarter, in addition to the strengthening of the US dollar, in particular against the Brazilian Real.

Research and Development expenses decreased from $1.3m in Q3, 2018 to $1.2m in Q3, 2019. Meanwhile, Selling, General and Administrative (SG&A) expenses increased from $7.1m to $7.3m in Q3, 2019. The increase in SG&A expenses was due to higher sales and marketing expenditure, particularly in relation to trade shows and other marketing activities plus higher professional fees associated with the settlement of the Company’s recent tax audit.

Operating profit increased by $0.1m for the quarter to $1.3m when compared to the same period last year. This was due to the impact of higher revenues being offset by a lower gross margin, whilst total indirect expenses remained flat during the quarter.

The cash based interest expense increased by $0.2m to $1.2m this quarter. Of this $1.0m was related to interest due on the Company’s Exchangeable Notes with the remaining $0.2m being financing charges arising on leased assets following the introduction of the new accounting standard for leases, IFRS 16 earlier this year.  Meanwhile, non-cash income of $0.1m was recognised in this quarter’s income statement, again in relation to the Exchangeable Notes.  This was due to a non-cash interest charge of $0.2m which was offset by a gain of $0.1m arising on a decrease in the fair value of the derivatives embedded in these notes.

Financial income for the quarter saw a reduction of less than $0.1m due to the lower level of cash deposits.

Overall, the Company recorded a profit of $25,000 for the quarter, which equates to a profit per share of 0.1 cents.  Fully diluted EPS for the quarter was 4.3 cents compared to 5.1 cents in Q3, 2018.

EBITDA before share option expense (EBITDASO) for the quarter was $3.1m.

  $m
Operating Profit 1.3
Depreciation 0.8
Amortisation 0.7
Share Option Expense 0.3
EBITDASO 3.1

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said “Operating profit this quarter, at $1.3m was $0.1m higher than the equivalent period last year. Whilst revenues were 4% higher, this was largely offset by the impact of a lower gross margin. Overall indirect costs for the quarter were flat quarter on quarter with an increase in SG&A expenses being offset by lower R&D and share option expense. Meanwhile our cash balance for the quarter increased by $0.1m to $25.1m.”

Ronan O’Caoimh, CEO said “As anticipated revenues were stronger this quarter, being 4% higher than the equivalent period last year and over 9% higher than quarter 2 of this year.  Point-of-care revenues were higher due to increased sales of HIV products in Africa. Meanwhile, Autoimmune and Diabetes revenues also grew, with the latter being driven by particularly strong instrument placements during the quarter.  Further revenue growth will be derived from our entry into to the HIV screening market with our TrinSreen product, which we expect to submit to the WHO in January next, with approval to follow during 2020.  Given the quality of this product and our knowledge and experience of the African HIV market, we are ideally positioned to take a meaningful share of this substantial market.”

Forward-looking statements in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, the results of research and development efforts, the effect of regulation by the United States Food and Drug Administration and other agencies, the impact of competitive products, product development commercialisation and technological difficulties, and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission.

Trinity Biotech develops, acquires, manufactures and markets diagnostic systems, including both reagents and instrumentation, for the point-of-care and clinical laboratory segments of the diagnostic market. The products are used to detect infectious diseases and to quantify the level of Haemoglobin A1c and other chemistry parameters in serum, plasma and whole blood. Trinity Biotech sells direct in the United States, Germany, France and the U.K. and through a network of international distributors and strategic partners in over 75 countries worldwide. For further information please see the Company's website: www.trinitybiotech.com.

Trinity Biotech plc
Consolidated Income Statements
 
(US$000’s except share data)   Three Months   Three Months   Nine Months   Nine Months  
    Ended   Ended   Ended   Ended  
    September 30,   September 30,   September 30,   September 30,  
    2019   2018   2019   2018  
    (unaudited)   (unaudited)   (unaudited)   (unaudited)  
                   
Revenues   24,594   23,712   69,117   72,512  
           
Cost of sales   (14,523 ) (13,731 ) (40,270 ) (41,296 )
           
Gross profit   10,071   9,981   28,847   31,216  
Gross margin %   41.0 % 42.1 % 41.7 % 43.0 %
           
Other operating income   21   27   67   76  
           
Research & development expenses   (1,233 ) (1,292 ) (3,994 ) (3,983 )
Selling, general and administrative expenses   (7,274 ) (7,113 ) (20,455 ) (21,412 )
Indirect share based payments   (252 ) (367 ) (609 ) (1,130 )
           
Operating profit   1,333   1,236   3,856   4,767  
           
Financial income   104   175   376   577  
Financial expenses   (1,226 ) (1,061 ) (3,703 ) (3,378 )
Net financing expense   (1,122 ) (886 ) (3,327 ) (2,801 )
           
Profit before tax & non-cash financial income / (expense)   211   350   529   1,966  
           
Income tax expense   (114 ) (76 ) (5,875 ) (366 )
                   
Profit/(Loss) for the period before non-cash financial income / (expense)   97   274   (5,346 ) 1,600  
                   
Non-cash financial (expense)/income   (72 ) 622   (245 ) 268  
                   
                   
Profit/(Loss) after tax and once-off items   25   896   (5,591 ) 1,868  
                   
Earnings per ADR (US cents)   0.1   4.3   (26.8 ) 8.9  
                   
Earnings per ADR excluding non-cash financial income/expense (US cents)   0.5   1.3   (25.6 ) 7.6  
           
Diluted earnings per ADR (US cents)*   4.3   5.1   (9.2 ) 18.9  
           
Weighted average no. of ADRs used in computing basic earnings per ADR   20,901,703   20,901,703   20,901,703   20,902,386  
           
Weighted average no. of ADRs used in computing diluted earnings per ADR   25,467,517   26,157,644   25,467,517   26,158,326  

* Under IAS 33 Earnings per Share, diluted earnings per share cannot be anti-dilutive. In a reporting period where it is anti-dilutive, diluted earnings per ADR should be constrained to equal basic earnings per ADR.

The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company’s accounting policies but do not constitute an interim financial report as defined in IAS 34 (Interim Financial Reporting).

 
Trinity Biotech plc
Consolidated Balance Sheets
         
  September 30,   June 30,   Mar 31,   Dec 31,  
  2019   2019   2019   2018  
  US$ ‘000   US$ ‘000   US$ ‘000   US$ ‘000  
  (unaudited)   (unaudited)   (unaudited)   (unaudited)  
ASSETS                
Non-current assets                
Property, plant and equipment 26,306   26,293   26,586   5,362  
Goodwill and intangible assets 57,948   56,079   54,377   52,951  
Deferred tax assets 7,339   6,744   5,996   5,703  
Other assets 555   591   535   558  
Total non-current assets 92,148   89,707   87,494   64,574  
         
Current assets        
Inventories 29,960   31,487   30,942   30,359  
Trade and other receivables 24,811   24,333   23,568   24,441  
Income tax receivable 1,243   1,187   1,209   1,584  
Cash and cash equivalents 25,090   24,990   29,433   30,277  
Total current assets 81,104   81,997   85,152   86,661  
         
TOTAL ASSETS 173,252   171,704   172,646   151,235  
         
EQUITY AND LIABILITIES        
Equity attributable to the equity holders of the parent        
Share capital 1,213   1,213   1,213   1,213  
Share premium 16,187   16,187   16,187   16,187  
Accumulated surplus 50,462   50,151   55,341   55,342  
Other reserves (28,930 ) (28,479 ) (28,573 ) (28,688 )
Total equity 38,932   39,072   44,168   44,054  
         
Current liabilities        
Income tax payable 5,717   5,885   125   210  
Trade and other payables 20,135   18,472   19,639   17,344  
Provisions 50   50   50   50  
Total current liabilities 25,902   24,407   19,814   17,604  
         
Non-current liabilities        
Exchangeable senior note payable 81,865   81,793   81,942   81,620  
Other payables 17,803   18,351   18,994   526  
Deferred tax liabilities 8,750   8,081   7,728   7,431  
Total non-current liabilities 108,418   108,225   108,664   89,577  
         
TOTAL LIABILITIES 134,320   132,632   128,478   107,181  
         
TOTAL EQUITY AND LIABILITIES 173,252   171,704   172,646   151,235  

The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company’s accounting policies but do not constitute an interim financial report as defined in IAS 34 (Interim Financial Reporting).

 
Trinity Biotech plc
Consolidated Statement of Cash Flows
         
(US$000’s) Three Months   Three Months   Nine Months   Nine Months  
  Ended   Ended   Ended   Ended  
  September 30,   September 30,   September 30,   September 30,  
  2019   2018   2019   2018  
  (unaudited)   (unaudited)   (unaudited)   (unaudited)  
                 
Cash and cash equivalents at beginning of period 24,990   49,426   30,277   57,607  
         
Operating cash flows before changes in working capital 3,184   3,445   9,495   9,907  
Changes in working capital 1,631   (512 ) (475 ) (4,656 )
Cash generated from operations 4,815   2,933   9,020   5,251  
         
Net Interest and Income taxes (paid)/received (181 ) (125 ) 34   49  
         
Capital Expenditure & Financing (net) (3,776 ) (4,308 ) (9,970 ) (12,247 )
         
Payments for leases (IFRS 16) (758 ) -   (2,273 ) -  
         
Free cash flow 100   (1,500 ) (3,189 ) (6,947 )
         
Share buyback -   -   -   (434 )
         
30 year Exchangeable Note interest payment -   (205 ) (1,998 ) (2,505 )
         
Purchase of Exchangeable Notes -   (12,042 ) -   (12,042 )
         
Cash and cash equivalents at end of period 25,090   35,679   25,090   35,679  

The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company’s accounting policies but do not constitute an interim financial report as defined in IAS 34 (Interim Financial Reporting).

     
Contact: Trinity Biotech plc Lytham Partners LLC
  Kevin Tansley Joe Diaz, Joe Dorame & Robert Blum
  (353)-1-2769800 602-889-9700
  E-mail: kevin.tansley@trinitybiotech.com