SOURCE: Trinity Biotech plc

Trinity Biotech plc

April 29, 2009 10:03 ET

Trinity Biotech Announces First Quarter 2009 Financial Results

EPS Increases to $0.12 From $0.055. Revenues Decrease 3.5% on a Constant Currency Basis

DUBLIN, IRELAND--(Marketwire - April 29, 2009) - Trinity Biotech plc (NASDAQ: 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 March 31, 2009.

Revenues for the quarter decreased to US$31.1m from US$32.2m, on a constant currency basis, compared to the same period last year, representing a fall of US$1.1m or 3.5%. Point-of-Care revenues increased substantially, growing by 43.3% largely driven by increased HIV sales in Africa. Clinical Laboratory revenues decreased by 8.7%, primarily attributable to a slowdown in the Company's antigen/antibody trading business, Fitzgerald, where customers have made conscious decisions to reduce inventory levels due to the current global recession and secondly due to a fall in haemostasis revenues in line with expectations.

Revenues for the three months by key product area were as follows :

                                             2008
                                  2008     Quarter 1    2009    %Increase/
                                Quarter 1  Adjusted*  Quarter 1 (decrease)
                               ---------- ---------- ---------- ---------
                                 US$000     US$000     US$000
                               ---------- ---------- ---------- ---------

                               ---------- ---------- ---------- ---------
Total Clinical Laboratory          30,917     28,959     26,435      (8.7%)
                               ---------- ---------- ---------- ---------
Point-of-Care                       3,336      3,260      4,671      43.3%
                               ---------- ---------- ---------- ---------
Total                              34,253     32,219     31,106      (3.5%)
                               ---------- ---------- ---------- ---------

* Revenues for the first quarter of 2008 have been adjusted to reflect
  exchange rates prevailing in the first quarter of 2009

Gross profit for the quarter amounted to US$14.3 million representing a gross margin of 46% which is in line with the same period in 2008. Research and Development expenses amounted to US$1.8m, representing a decrease of 4%. SG&A expenses have fallen by 20% from US$12.0 million in quarter 1, 2008 to US$9.6m million in the current quarter. This reduction reflects the impact of the cost saving measures which we have implemented, lower depreciation and amortization charges due to the impairment charge taken in quarter 4, 2008 and more favourable exchange rates. The tax charge for the quarter was US$0.3m representing an effective tax rate of 9.1%.

Operating profit for the quarter amounted to US$3.0 million, which represents an increase of 71% over the first quarter of 2008. Net income for the quarter increased by 139% to US$2.5 million, or US$0.12 per share (ADR) from US$1.0 million, or US$0.055 per share (ADR) versus the first quarter of 2008.

Ronan O'Caoimh, CEO, commented, "This quarter has shown that Trinity is not immune to the current economic crisis. Overall we have seen our revenues fall in real terms by 3.5%, principally driven by lower Fitzgerald revenues and a fall in haemostasis revenues as expected. However, on a more positive note our point-of-care revenues have grown significantly quarter on quarter, primarily driven by increased HIV sales in Africa. Also, and most importantly, we have seen a substantial increase in profitability, which as I have stated before, is our main focus this year.

The highlight for us this quarter was the tremendous reception that Destiny Max has received in worldwide markets since its launch in December 2008. We have been hugely encouraged by the feedback that we have received from customers and are eagerly awaiting our launch in the U.S. market in the next couple of months."

Commenting on the results, Kevin Tansley, Chief Financial Officer, said "We are very pleased that, notwithstanding lower revenues, we have been able to achieve substantially improved profitability this quarter. While some of this increase in profitability is attributable to the favourable impact of the impairment charge taken in 2008, the net increase reflects the progress made in recent quarters to reduce our operating cost structure. As the first quarter typically represents our weakest quarter due to seasonal factors, we are now, given our reduced cost base, well positioned for greater profitability in the future as revenues increase."

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 Income Statements


                                                    Three        Three
                                                    Months       Months
                                                  Ended March  Ended March
                                                   31, 2009     31, 2008
(US$000's  except share data)                     (unaudited)  (unaudited)

Revenues                                               31,106       34,253

Cost of sales (excluding service costs)               (15,423)     (16,887)
                                                  -----------  -----------

Gross profit (excluding service costs)                 15,683       17,366
Gross profit % (excluding service costs)                 50.4%        50.7%
                                                  -----------  -----------
Cost of sales - instrument servicing costs             (1,370)      (1,603)
Gross profit (including service costs)                 14,313       15,763
Gross profit % (including service costs)                 46.0%        46.0%

Other operating income                                    204           89

Research & development expenses                        (1,776)      (1,845)
Selling, general and administrative expenses           (9,601)     (12,035)
Indirect share based payments                             (98)        (191)
                                                  -----------  -----------

Operating profit                                        3,042        1,781

Interest income                                             1            9
Interest expenses                                        (289)        (675)
                                                  -----------  -----------
Net financing costs                                      (288)        (666)
                                                  -----------  -----------

Profit before tax                                       2,754        1,115

Income tax expense                                       (250)         (66)
                                                  -----------  -----------

Profit for the period                                   2,504        1,049

Earnings per ADR (US cents)                              12.0          5.5

Diluted earnings per ADR (US cents)                      12.0          5.5

Weighted average no. of ADRs used in computing
 earnings per ADR                                  20,854,395   19,039,191


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

                                                 March 31,    December 31,
                                                   2009           2008
                                                 US$ '000       US$ '000
                                                (unaudited)     (audited)
ASSETS
Non-current assets
Property, plant and equipment                         11,489        11,836
Goodwill and intangible assets                        39,750        38,544
Deferred tax assets                                    2,879         3,051
Other assets                                             773           877
                                                ------------  ------------
Total non-current assets                              54,891        54,308
                                                ------------  ------------

Current assets
Inventories                                           40,984        42,317
Trade and other receivables                           25,950        27,418
Income tax receivable                                    324           282
Cash and cash equivalents                              2,589         5,184
                                                ------------  ------------
Total current assets                                  69,847        75,201
                                                ------------  ------------

                                                ------------  ------------
TOTAL ASSETS                                         124,738       129,509
                                                ============  ============

EQUITY AND LIABILITIES
Equity attributable to the equity holders of
 the parent
Share capital                                          1,070         1,070
Share premium                                        159,854       159,864
Accumulated deficit                                  (96,881)      (99,493)
Translation reserve                                   (1,109)           (9)
Other reserves                                         4,488         4,473
                                                ------------  ------------
Total equity                                          67,422        65,905
                                                ------------  ------------

Current liabilities
Interest-bearing loans and borrowings                 13,835        12,656
Income tax payable                                        54             5
Trade and other payables                              18,677        22,969
Derivative Financial Instruments                          13            27
Provisions                                                50            50
                                                ------------  ------------
Total current liabilities                             32,629        35,707
                                                ------------  ------------

Non-current liabilities
Interest-bearing loans and borrowings                 20,251        23,465
Other payables                                            59            59
Deferred tax liabilities                               4,377         4,373
                                                ------------  ------------
Total non-current liabilities                         24,687        27,897
                                                ------------  ------------

                                                ------------  ------------
TOTAL LIABILITIES                                     57,316        63,604
                                                ------------  ------------

                                                ------------  ------------
TOTAL EQUITY AND LIABILITIES                         124,738       129,509
                                                ============  ============


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

                                                   March 31,    March 31,
                                                      2009         2008
                                                    US$ '000     US$ '000
                                                  (unaudited)  (unaudited)
Cash and cash equivalents at beginning of period        5,184        8,700

Operating cash flows before changes in working
 capital                                                4,081        3,911
Changes in Working Capital                             (1,769)      (2,066)
                                                  -----------  -----------
Cash generated from operations                          2,312        1,845

Net Interest and Income taxes paid                       (260)        (664)

Capital Expenditure                                    (2,501)      (2,623)

Repayment of bank debt                                 (2,146)      (4,183)

                                                  -----------  -----------
Cash and cash equivalents at end of period              2,589        3,075
                                                  -----------  -----------

Contact Information

  • Contact:
    Trinity Biotech plc
    Niamh Long
    (353)-1-2769800
    E-mail: Email Contact

    Lytham Partners LLC
    Joe Diaz, Joe Dorame & Robert Blum
    602-889-9700