SOURCE: Trinity Biotech plc

October 26, 2006 08:48 ET

Trinity Biotech Announces Quarter 3 Results Revenues Increase 25% and EBITDA Exceeds US$5 Million

DUBLIN, IRELAND -- (MARKET WIRE) -- October 26, 2006 -- Trinity Biotech plc (NASDAQ: TRIB) (DUBLIN: TRIB.I), 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, 2006.

Revenues in quarter 3 2006 increased 25% to US$33.3 million compared to US$26.7 million in quarter 3 2005. During the same period operating profit before share option expenses increased from US$2.2 million to US$3.3 million. Profit for the period increased from US$1.5 million in quarter 3 2005 to US$2.6 million, representing an increase of 71%.

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

                               2005            2006
                          --------------- ---------------
                             Q1 – Q3         Q1 – Q3
                          --------------- ---------------
                              US$000          US$000        % Increase
                          --------------- --------------- -------------

                          --------------- --------------- -------------
Clinical Chemistry                  6,731          11,128          65.3%
                          --------------- --------------- -------------
Haemostasis                        21,490          29,828          38.8 %
                          --------------- --------------- -------------
Infectious Diseases                33,130          32,109          (3.1)%
                          --------------- --------------- -------------
Point of Care                       9,157          12,281          34.1 %
                          --------------- --------------- -------------
Total                              70,508          85,346          21.0 %
                          --------------- --------------- -------------
Revenues for the nine months by geographical location were as follows :
                               2005            2006
                          --------------- ---------------
                              Q1 – Q3         Q1 – Q3
                          --------------- ---------------
                              US$000          US$000        % Increase
                          --------------- --------------- --------------

                          --------------- --------------- --------------
USA                                36,200          42,402           17.1%
                          --------------- --------------- --------------
Europe                             18,339          23,957           30.6%
                          --------------- --------------- --------------
Asia / Africa                      15,969          18,987           18.9%
                          --------------- --------------- --------------
Total                              70,508          85,346           21.0%
                          --------------- --------------- --------------
Gross profit for the quarter amounted to US$15.3 million, representing a gross margin of 46.0%. This compares to a gross margin of 48.1% for the same period in 2005 and 48.2% for Quarter 2. The reduction in gross margin is associated with the recent bioMerieux haemostasis acquisition which is comparable with the Trinity haemostasis business and has inherently lower gross margins than the Point of Care, Clinical Chemistry and Infectious Disease product lines.

R&D expenses are broadly consistent with the same period last year at US$1.7 million. The increase in selling, general and administrative expenses from US$9.2 million in 2005 to US$10.3 million in the current quarter is primarily attributable to the impact of the recent bioMerieux haemostasis acquisition.

The net effect of the above was an operating profit before share options of US$3.3 million for the quarter compared to US$2.2 million for the same period last year which represents margins of 9.9% and 8.1% respectively.

Commenting on the results, Rory Nealon, Chief Financial Officer, said, "Our operating margin has increased from 8.1% in 2005 and 8.6% last quarter to 9.9% in the current quarter. This is reflected in our EPS which has increased by 18% from 11.4 cents in the previous quarter to 13.5 cents this quarter and by 38% over the same period in 2005. This significant improvement in profitability has primarily resulted from the increased sales volumes created by the recent bioMerieux acquisition. It has also resulted in an increase in our EBITDA from US$3.6 million last quarter to US$5.1 million in the current quarter."

Ronan O'Caoimh, CEO, commented, "The completion of the bioMerieux haemostasis acquisition has had a significant impact on the profitability and scale of Trinity. The Haemostasis product line represented 35% of total sales in quarter 3 and we anticipate that this will continue to grow as the bioMerieux related revenues increase in quarter 4.

We are also pleased to announce that we have just acquired the French distribution business of Nephrotek for a consideration of US$730,000. The acquired distribution business is based in Paris and currently distributes Trinity's product lines to the French market. This acquisition will enable Trinity to sell directly in France which is one of the largest diagnostics markets in Europe. Trinity is now selling directly in the USA, Germany, the UK and France and through a combination of distributors in approximately 75 other countries around the world. Trinity plans to integrate the French activities of its recently acquired bioMérieux haemostasis business into this new operation which will increase the margins earned by Trinity on these sales and enable us to further drive growth within this market.

Trinity is also pleased to announce that it has recently recruited Mr. David Oxley as Corporate Vice President of Point of Care and OTC Business. David was previously VP of Government Affairs with Orasure.

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  Three Months  Three Months  Nine Months   Nine Months
 share data)              Ended         Ended        Ended         Ended
                      September     September    September     September
                       30, 2006      30, 2005     30, 2006      30, 2005
                     (unaudited)   (unaudited)  (unaudited)   (unaudited)

Revenues                 33,319        26,740        85,346        70,508

Cost of sales           (17,962)      (13,842)      (44,296)      (36,470)
Cost of sales –
 inventory write
 off                          -             -        (5,800)            -
Cost of sales –
 share based
 payments                   (23)          (29)          (72)          (80)
                   ------------  ------------  ------------  ------------

Gross profit             15,334        12,869        35,178        33,958
Gross profit
 before inventory
 write off               15,334        12,869        40,978        33,958

Other operating
 income                      36            60           157           186


Research &
 development
 expenses                (1,738)       (1,610)       (4,696)       (4,290)
S,G&A expenses          (10,344)       (9,172)      (28,904)      (24,653)
Indirect share
 based payments            (330)         (307)         (915)         (966)
                   ------------  ------------  ------------  ------------

Operating profit          2,958         1,840           820         4,235
Operating  profit
 before inventory
 write off                2,958         1,840         6,620         4,235

Financial income            331            70           796           300
Financial expenses         (982)         (270)       (1,724)         (731)
                   ------------  ------------  ------------  ------------
Net financing
 costs                     (651)         (200)         (928)         (431)
                   ------------  ------------  ------------  ------------

Profit / (Loss)
 before tax               2,307         1,640          (108)        3,804

Income tax
 (expense) /
 credit                     244          (148)        1,786          (392)
                   ------------  ------------  ------------  ------------

Profit / (Loss)
 for the period           2,551         1,492         1,678         3,412
Profit for the
 period before
 inventory write
 off                      2,551         1,492         5,906         3,412

Earnings per ADR           13.8          10.0           9.7          23.5
Earnings per ADR
 before inventory
write off                  13.8          10.0          34.1          23.5

Diluted earnings
 per ADR                   13.5           9.6           9.7          23.0
Diluted earnings
 before inventory
 write off                 13.5           9.6          33.2          23.0

Weighted average
 no. of shares
 used in computing
 earnings per
 share               73,995,302    59,402,312    69,260,423    58,032,535


The above financial statements have been prepared in accordance with the
principles of International Financial Reporting Standards and the Company’s
accounting policies but does not constitute an interim financial report as
defined in IAS34 (Interim Financial Reporting).


                            Trinity Biotech plc
                        Consolidated Balance Sheet


                                              December 31,   September 30,
                                                     2005            2006
                                                 US$ ‘000        US$ ‘000
                                                               (unaudited)
ASSETS
Non-current assets
Property, plant and equipment                       19,202          21,824
Goodwill and intangible assets                      85,197         119,753
Deferred tax assets                                  3,277           6,713
Other assets                                            61              61
                                            --------------  --------------
Total non-current assets                           107,737         148,351
                                            --------------  --------------

Current assets
Inventories                                         36,450          41,592
Trade and other receivables                         20,885          34,937
Income tax receivable                                  649             625
Financial assets – restricted cash                   9,000          15,500
Cash and cash equivalents                            9,881           4,572
Derivative financial instruments                         -              67
                                            --------------  --------------
Total current assets                                76,865          97,293
                                            --------------  --------------

                                            --------------  --------------
TOTAL ASSETS                                       184,602         245,644
                                            ==============  ==============

EQUITY AND LIABILITIES
Equity attributable to the equity holders
 of the parent
Share capital                                          830             967
Share premium                                      124,227         149,804
Retained earnings                                    6,280           8,946
Translation reserve                                 (1,622)           (657)
Other reserves                                       3,903           4,014
                                            --------------  --------------
Total equity                                       133,618         163,074
                                            --------------  --------------

Current liabilities
Interest-bearing loans and borrowings                7,720          10,415
Convertible notes – interest bearing                 7,203           3,657
Income tax payable                                     260           1,816
Trade and other payables                            12,768          19,336
Other financial liabilities                          3,707           3,074
Derivative financial instruments                        44               -
Provisions                                             199             100
                                            --------------  --------------
Total current liabilities                           31,901          38,398
                                            --------------  --------------

Non-current liabilities
Interest-bearing loans and borrowings               10,369          32,970
Convertible notes – interest bearing                 1,836               -
Other tax payable                                       48              52
Other payables                                         102           2,632
Deferred tax liabilities                             6,728           8,518
                                            --------------  --------------
Total non-current liabilities                       19,083          44,172
                                            --------------  --------------
TOTAL LIABILITIES                                   50,984          82,570
                                            --------------  --------------

                                            --------------  --------------
TOTAL EQUITY AND LIABILITIES                       184,602         245,644
                                            ==============  ==============

The above financial statements have been prepared in accordance with the
principles of International Financial Reporting Standards and the Company’s
accounting policies but does not constitute an interim financial report as
defined in IAS34 (Interim Financial Reporting).

Contact Information

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