SOURCE: Trinity Biotech plc

March 06, 2006 08:36 ET

Trinity Biotech Announces 2005 Results

Revenues Increase 23.2%

DUBLIN, IRELAND -- (MARKET WIRE) -- March 6, 2006 -- Trinity Biotech plc (NASDAQ: TRIB) (ISE:TRIB.I), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced results for the year ended December 31, 2005.

Revenues in 2005 increased 23.2% to US$98.6 million compared to US$80.0 million in 2004. Operating profit before share option expenses increased from US$6.9 million in 2004 to US$8.0 million in the current year. Quarter on quarter operating profit before share options has increased from US$2.1 million in Quarter 3 to US$2.7 million in Quarter 4.

Revenues for the year by key product area were as follows :

                              2004      2005
                             US$000    US$000   % Increase

Infectious Disease           36,402    44,078       21.1
Coagulation                  26,836    29,766       10.9
Clinical Chemistry            6,963    11,880       70.6
Point of Care                 9,807    12,836       30.9
Total                        80,008    98,560       23.2
Revenues by geographical location were as follows :
                              2004      2005
                             US$000    US$000   % Increase

USA                          41,380    50,627       22.3
Europe                       22,718    25,301       11.4
Asia / Africa                15,910    22,632       42.3
Total                        80,008    98,560       23.2
Gross profit for the year amounted to US$47.2 million, representing a gross margin of 48%. This compares to a gross profit of US$40.0 million in 2004.

R&D expenses have increased from US$4.6 million in 2004 to US$5.9 million in the current year. The increase in Selling, General and Administrative costs from US$28.8 million in 2004 to US$33.6 million in the current year is primarily attributable to the acquisitions of RDI and Primus in March and July respectively and to a once off charge in quarter 4 of US$240,000 associated with the conversion of our accounts from Irish GAAP to IFRS.

The net effect of the above was an operating profit before share options of US$8.0 million for the year and US$2.7 million for the quarter which represents an operating margin before share options of 8.1% and 9.8% respectively.

Commenting on the results, Rory Nealon, Chief Financial Officer, said, "We have experienced strong sequential growth in all of our product areas and geographical locations during the year. In particular our point of care product range has grown by 31% during the year and our US sales have increased by 22% due to the ongoing success of our direct sales model and the recent acquisitions. Overall the business has grown by 23% of which half was organic growth and half was acquisition led growth.

"We are particularly pleased with the ongoing improvement in our operating margins before share option expense which has increased from 8% in quarter 3 to 10% in quarter 4 and with our earnings per ADR of US 36 cents which is in line with analyst expectations."

Ronan O'Caoimh, CEO, commented, "2005 has been another strong year for Trinity. The ongoing growth in our revenues combined with strong cost control has increased our operating margin before share option expenses from 7% in quarter 1 to 10% in quarter 4.

"During March we completed the acquisition of RDI. RDI is a natural fit with our existing Fitzgerald operation in that it is particularly strong in supplying product to research facilities worldwide whereas Fitzgerald's focus is on diagnostic manufacturers. RDI has since been fully integrated into the operations of Fitzgerald and turned earnings positive during the year.

"We acquired Primus, a Kansas City, Missouri-based corporation, during July 2005. Primus is a leading player in the manufacture of glycohaemoglobin instruments and reagents to serve customers from physicians' offices to the largest reference laboratories worldwide. We are particularly excited about the new Primus Rapid Gel product which is currently awaiting CLIA waiver from the FDA and which we expect will be granted in the coming months. Primus has been a significant contributor to the growth of our Clinical Chemistry product range which has grown by 71% during the year. Both of these acquisitions were funded from the Company's own resources and from bank debt.

"In September the Directors of Trinity acquired a total of 4,501,675 Ordinary Shares (1,125,419 ADRs) in the Company through a combination of 1,954,800 Ordinary Shares purchased on the open market and 2,546,875 share options exercised. The Directors believe that these transactions reflect the confidence and belief that the senior executives and Board of the Company have in the future of Trinity Biotech."

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 over 500 diagnostic products for the point-of-care and clinical laboratory segments of the diagnostic market. The broad line of test kits are used to detect infectious diseases, sexually transmitted diseases, blood coagulation disorders, and autoimmune diseases. Trinity Biotech sells worldwide in over 80 countries through its own salesforce and a network of international distributors and strategic partners. For further information please see the Company's website: www.trinitybiotech.com.


                              Trinity Biotech plc
                       Consolidated Statements of Income

(US$000's  except
 share data)       Three Months  Three Months  Twelve Months Twelve Months
                       Ended         Ended         Ended         Ended
                    December 31,  December 31,  December 31,  December 31,
                       2005          2004          2005          2004
                    (unaudited)   (unaudited)   (unaudited)   (unaudited)

Revenues                  27,742        22,073        98,560        80,008

Cost of sales            (14,841)      (11,153)      (51,268)      (39,966)
Cost of sales -
 share based
 payments                    (61)          (59)         (110)          (81)
                   ------------- ------------- ------------- -------------

Gross profit              12,840        10,861        47,182        39,961

Other operating
 income                       38            41           161           302

Research &
 development
 expenses                 (1,628)         (946)       (5,860)       (4,648)
S,G&A expenses            (8,577)       (8,205)      (33,603)      (28,751)
Indirect share
 based payments             (700)         (493)       (1,258)         (677)
                   ------------- ------------- ------------- -------------

Operating profit           1,973         1,258         6,622         6,187

Financial income              89            67           389           302
Financial expenses          (327)         (208)       (1,058)         (824)
                   ------------- ------------- ------------- -------------
Net financing costs         (238)         (141)         (669)         (522)
                   ------------- ------------- ------------- -------------

Profit before tax          1,735         1,117         5,953         5,665

Income tax
 (expense) / credit         (281)           73          (673)           49
                   ------------- ------------- ------------- -------------

Profit for the
 period                    1,454         1,190         5,280         5,714

Earnings per ADR             9.5           8.5          36.0          41.5
Earnings per share
 (US cents)                  2.4           2.1           9.0          10.4

Diluted earnings
 per ADR                     9.2           7.8          34.8          37.8
Diluted earnings
 per share (US
 cents)                      2.3           2.0           8.7           9.4

Weighted average
 no. of shares used
 in computing
 earnings per share   61,434,766    56,273,201    58,890,084    55,132,024



                          Trinity Biotech plc
                       Consolidated Balance Sheet

                                               December 31,  December 31,
                                                   2005          2004
                                                 US$ '000      US$ '000
                                               (unaudited)   (unaudited)
ASSETS
Non-current assets
Property, plant and equipment                        19,202        16,017
Goodwill and intangible assets                       85,197        63,554
Deferred tax assets                                   3,277         2,338
Other assets                                             61            35
                                               ------------  ------------
Total non-current assets                            107,737        81,944
                                               ------------  ------------

Current assets
Inventories                                          36,450        37,519
Trade and other receivables                          20,885        13,337
Income tax receivable                                   649           815
Financial assets  restricted cash                    9,000         7,148
Cash and cash equivalents                             9,881        15,139
                                               ------------  ------------
Total current assets                                 76,865        73,958
                                               ------------  ------------

TOTAL ASSETS                                        184,602       155,902
                                               ============  ============

EQUITY AND LIABILITIES
Equity attributable to the equity holders of
 the parent
Share capital                                           830           776
Share premium                                       124,227       120,444
Retained earnings                                     6,280           (71)
Translation reserve                                  (1,622)          118
Other reserves                                        3,903        (2,373)
                                               ------------  ------------
Total equity                                        133,618       118,894
                                               ------------  ------------

Current liabilities
Interest-bearing loans and borrowings                 7,720         4,056
Convertible notes                                     7,203         7,031
Current tax payable                                     260           792
Trade and other payables                             12,768         8,569
Other financial liabilities                           3,707             -
Derivative financial instruments                         44             -
Provisions                                              199            62
                                               ------------  ------------
Total current liabilities                            31,901        20,510
                                               ------------  ------------

Non-current liabilities
Interest-bearing loans and borrowings                10,369         4,135
Convertible notes                                     1,836         8,788
Other tax payable                                        48           161
Other payables                                          102            35
Deferred tax liabilities                              6,728         3,379
                                               ------------  ------------
Total non-current liabilities                        19,083        16,498
                                               ------------  ------------
TOTAL LIABILITIES                                    50,984        37,008
                                               ------------  ------------

TOTAL EQUITY AND LIABILITIES                        184,602       155,902
                                               ============  ============



                             Trinity Biotech plc
                     Consolidated Statement of Cash Flows

                                                 Year ended December 31

                                                   2005          2004
                                                 US$ '000      US$ '000
                                               (unaudited)   (unaudited)
Cash flows from operating activities
Profit for the financial year                         5,280         5,714
Adjustments to reconcile net profit to cash
 provided by operating activities:
Depreciation                                          2,434         1,629
Amortisation                                          1,803         1,111
Income tax expense / (credit)                           673           (49)
Financial income                                       (389)         (302)
Financial expense                                     1,058           824
Share-based payments                                  1,368           758
Foreign exchange losses on non-operating
 cash flows                                            (292)         (131)
Loss on disposal / retirement of property,
 plant & equipment                                      393            14
Other non-cash items                                    308            76
                                               ------------  ------------
Operating cash flows before changes in
 working capital                                     12,636         9,644
(Increase) / decrease in trade and other
 receivables                                         (8,034)        1,447
Decrease / (increase) in inventories                  1,311        (5,883)
Increase / (decrease) in trade and other
 payables                                             4,689        (2,419)
                                               ------------  ------------
Cash generated from operations                       10,602         2,789
Interest paid                                          (972)         (931)
Interest received                                       371           291
Income taxes paid                                      (792)       (1,666)
                                               ------------  ------------
Net cash from operating activities                    9,209           483
                                               ============  ============

Cash flows from investing activities
Payments to acquire subsidiaries and
 businesses                                         (13,129)      (19,090)
Payment to acquire intangible assets                 (5,509)       (3,601)
(Acquisition) / disposal of financial asset          (1,852)       10,852
Proceeds from disposal of property, plant
 and equipment                                            4            31
Acquisition of property, plant and equipment         (4,039)       (3,824)
                                               ------------  ------------
Net cash from investing activities                  (24,525)      (15,632)
                                               ============  ============

Cash flows from financing activities
Proceeds from issue of ordinary share capital         4,755        31,708
Proceeds from borrowings, short term debt             1,800             -
Proceeds from borrowings, long term debt              7,200             -
Expenses paid in connection with share issue
 and debt financing                                    (195)       (2,238)
Repayment of long-term debt                          (1,217)       (2,214)
Proceeds from new finance leases                        154             -
Payment of finance lease liabilities                   (348)         (267)
Issue of convertible notes                                -         5,000
Repayment of convertible notes in cash               (1,822)       (1,822)
Repayment of other financial liabilities               (648)       (2,675)
                                               ------------  ------------
Net cash inflow from financing activities             9,679        27,492
                                               ============  ============

(Decrease) / increase in cash and cash
 equivalents                                         (5,637)       12,343
Effects of exchange rate movements on cash
 held                                                   252           233
Cash acquired with subsidiary                           127             -
Cash and cash equivalents at beginning of
 year                                                15,139         2,563
                                               ------------  ------------
Cash and cash equivalents at end of year              9,881        15,139
                                               ============  ============

Basis of preparation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. These are the Group's first annual consolidated financial statements prepared under IFRS and IFRS 1 has been applied. The Group has availed of the exemption in IFRS 1 and is not presenting comparative information for convertible notes and derivative financial instruments under IFRS. The transition date for compliance with IAS 32 and IAS 39 is January 1, 2005 and the comparative information for convertible notes and derivative financial instruments is stated under Irish GAAP.

The financial information set out in this document does not constitute full statutory consolidated accounts for the years ended 31 December 2005 or 2004 but is derived from such accounts. The statutory consolidated accounts have not been audited and will be attached to the next annual return of the company.

Contact Information

  • Contact :
    Trinity Biotech plc
    Rory Nealon
    (353)-1-2769800
    E-mail: Email Contact