SOURCE: Trinity Biotech plc

Trinity Biotech Plc

October 21, 2009 09:49 ET

Trinity Biotech Announces Third Quarter 2009 Financial Results

EPS Increases by 131% to 14.6 Cent From 6.3 Cent

DUBLIN, IRELAND--(Marketwire - October 21, 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 September 30, 2009.

Total revenues for the quarter were $31.7 million. On a constant currency basis this compares to $34.5 million in quarter 3, 2008, and $32.8m in quarter 2, 2009, representing a decrease of 8.2% and 3.3% respectively. Point-of-Care revenues decreased by over 23% versus quarter 3, 2008, mainly due to a decision by the company not to ship HIV products to a major customer for credit related reasons. Clinical Laboratory revenues, fell by 5.6%, on a constant currency basis, when compared to quarter 3, 2008. However, when compared with quarter 2, 2009, Clinical Laboratory revenues have increased by 3.4%. This has been partly due to an increase in coagulation revenues this quarter, following a period of decline prior to the launch of Destiny Max.

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

                                             2008       2009
                                  2008     Quarter 3  Quarter 2    2009
                                Quarter 3  Adjusted*  Adjusted*  Quarter 3
                                ---------- ---------- ---------- ----------
                                 US$'000    US$'000    US$'000    US$'000
                                ---------- ---------- ---------- ----------

Total Clinical Laboratory           30,388     29,450     26,903     27,814
                                ---------- ---------- ---------- ----------
Point-of-Care                        5,194      5,090      5,908      3,891
                                ---------- ---------- ---------- ----------
Total                               35,582     34,540     32,812     31,705
                                ---------- ---------- ---------- ----------

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

Gross profit for the quarter amounted to $14.3 million representing a gross margin of approximately 45%, which is an improvement of 1% over the same period in 2008. By excluding instruments service costs the gross margin rises to 49%.

Research and Development expenses amounted to $1.8m, representing a decrease of 3%. SG&A expenses have fallen by 26% from $11.8 million in the third quarter of 2008 to $8.7 million in the current quarter. As has been the case in previous quarters this year, the fall in SG&A expenses is due to cost base management, the impact of lower depreciation and amortization charges and more favourable exchange rates. The tax charge for the quarter was $0.4 million representing an effective tax rate of 11.2%, which is broadly in line with the rate for the year as a whole.

Operating profit for the quarter increased to $3.7 million representing an increase of over 85% compared to the same period last year. Net income for the quarter has increased to $3.1m compared with $1.3m in quarter 3, 2008, an increase of over 131%. Similarly EPS per share (ADR) has increased from 6.3 cent per share (ADR) to 14.6 cent per share (ADR) during the same period.

During the quarter, the Company generated more than $4.1 million of cash from operations. Following a repayment of $3.2 million during the quarter, the company has brought its bank debt to under $30 million.

Since quarter end, a U.S. court (Southern District of New York) has issued a Default Judgement ordering Mr. Tom Reidy to pay Trinity Biotech a total of US$266,000. This follows a legal action taken by the company in relation to the calculation of an earnout paid to Mr. Reidy as a former shareholder of Primus Corporation. The other shareholders of Primus, representing 60% of the shares, had previously settled with the company. Mr. Reidy, who held the remaining 40% shareholding at the time of Trinity's acquisition of Primus, was responsible for managing the Primus business during the earnout period. Trinity Biotech will now seek to enforce this Default Judgement and recover the money, which consists of US$201,000 in relation to the earnout calculation plus interest of $65,000.

Ronan O'Caoimh, CEO, commented, "The results this quarter show that we have continued to make strong progress throughout 2009. Our main focus for this year is to drive profits forward. EPS of 14.6 cent this quarter represents an increase of 131% over the equivalent period last year and brings the EPS for the year to date to 41 cent per share.

During this quarter, we achieved the key milestone of obtaining FDA approval for our new coagulation analyzer, Destiny Max. We have now commenced our formal launch of this state of the art instrument in the USA, the largest coagulation market in the world.

Whilst our quarter 3 Clinical Laboratory revenues have fallen by 5.6% year on year, it should be noted that compared to quarter 2, 2009 they have actually increased by 3.4%. This growth has been partly attributable to a 4.7% increase in our coagulation revenues. This improvement in coagulation revenues coupled with the US launch of Destiny Max reflects our belief that that we have largely arrested our decline in this area and that in 2010 we will commence growing the coagulation business.

The decrease in our of point-of-care revenues this quarter was principally due to a decision taken by the company not to supply HIV products to one of our major customers, as a result of credit issues. Notwithstanding this, our HIV business remains very strong and represents an area of major growth potential for the company. We remain very proud of the strong market positions that our Uni-gold products have achieved in the key markets of Africa and the USA."

Commenting on the results, Kevin Tansley, Chief Financial Officer, said "This represents the third successive quarter of strong earnings for the company. For the nine months to September 30, 2009 we have reported EPS of 41 cent per share (ADR), which is more than double that achieved in the equivalent period in 2008.

Quarter 2, 2009 was the first time that Trinity achieved profits of $3 million in a single quarter and we are very happy to have increased profits further this quarter."

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 blood coagulation disorders, 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

                              Three        Three
                             Months       Months  Nine Months  Nine Months
                         Ended Sept   Ended Sept   Ended Sept   Ended Sept
(US$000's  except share    30, 2009     30, 2008     30, 2009     30, 2008
 data)                   (unaudited)  (unaudited)  (unaudited)  (unaudited)

Revenues                     31,705       35,582       95,113      106,130

Cost of sales (excluding
 service costs)             (16,183)     (18,090)     (47,912)     (53,363)
                        -----------  -----------  -----------  -----------

Gross profit (excluding
 service costs)              15,522       17,492       47,201       52,767
Gross profit % (excluding
 service costs)                49.0%        49.2%        49.6%        49.7%
                        -----------  -----------  -----------  -----------
Cost of sales -
 instrument servicing
 costs                       (1,251)      (1,821)      (3,877)      (5,098)
Gross profit (including
 service costs)              14,271       15,671       43,324       47,669
Gross profit % (including
 service costs)                45.0%        44.0%        45.6%        44.9%

Other operating income          143          363          415          551

Research & development
 expenses                    (1,843)      (1,899)      (5,400)      (5,683)
Selling, general and
 administrative
 expenses                    (8,729)     (11,819)     (27,341)     (35,703)
Indirect share based
 payments                      (111)        (302)        (384)        (728)
                        -----------  -----------  -----------  -----------

Operating profit              3,731        2,014       10,614        6,106

Financial income                  -           16            4           54
Financial expenses             (289)        (478)        (929)      (1,705)
                        -----------  -----------  -----------  -----------
Net financing costs            (289)        (462)        (925)      (1,651)
                        -----------  -----------  -----------  -----------

Profit before tax             3,442        1,552        9,689        4,455

Income tax expense             (385)        (231)      (1,123)        (576)
                        -----------  -----------  -----------  -----------

Profit for the period         3,057        1,321        8,566        3,879

Earnings per ADR
 (US cents)                    14.6          6.3         41.0         19.2

Diluted earnings per
 ADR (US cents)                14.5          6.3         41.0         19.2

Weighted average no. of
 ADR's used in Computing
 earnings per ADR.       20,943,038   20,854,395   20,885,092   20,178,662

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

                           Sept 30,     June 30,    March 31,      Dec 31,
                               2009         2009         2009         2008
                           US$ '000     US$ '000     US$ '000     US$ '000
                         (unaudited)  (unaudited)  (unaudited)    (audited)
ASSETS
Non-current assets
Property, plant and
 equipment                   12,143       11,908       11,489       11,836
Goodwill and intangible
 assets                      42,866       41,029       39,750       38,544
Deferred tax assets           2,926        3,099        2,879        3,051
Other assets                    636          661          773          877
                        -----------  -----------  -----------  -----------
Total non-current
 assets                      58,571       56,697       54,891       54,308
                        -----------  -----------  -----------  -----------

Current assets
Inventories                  41,254       41,667       40,984       42,317
Trade and other
 receivables                 26,192       27,385       25,950       27,418
Derivative Financial
 Instruments                    284          344            -            -
Income tax receivable           345          329          324          282
Cash and cash
 equivalents                  3,697        4,791        2,589        5,184
                        -----------  -----------  -----------  -----------
Total current assets         71,772       74,516       69,847       75,201
                        -----------  -----------  -----------  -----------

                        -----------  -----------  -----------  -----------
TOTAL ASSETS                130,343      131,213      124,738      129,509
                        ===========  ===========  ===========  ===========

EQUITY AND LIABILITIES
Equity attributable to
 the equity holders of
 the parent
Share capital                 1,079        1,072        1,070        1,070
Share premium               160,641      160,031      159,854      159,864
Accumulated deficit         (90,522)     (93,698)     (96,881)     (99,493)
Translation reserve             199         (108)      (1,109)          (9)
Other reserves                4,781        4,822        4,488        4,473
                        -----------  -----------  -----------  -----------
Total equity                 76,178       72,119       67,422       65,905
                        -----------  -----------  -----------  -----------

Current liabilities
Interest-bearing loans
 and borrowings              14,164       13,943       13,835       12,656
Income tax payable               64           35           54            5
Trade and other
 payables                    16,907       19,279       18,677       22,969
Derivative Financial
 Instruments                      -            -           13           27
Provisions                       50           50           50           50
                        -----------  -----------  -----------  -----------
Total current
 liabilities                 31,185       33,307       32,629       35,707
                        -----------  -----------  -----------  -----------

Non-current liabilities
Interest-bearing loans
 and borrowings              17,683       20,609       20,251       23,465
Other payables                   59           59           59           59
Deferred tax liabilities      5,238        5,119        4,377        4,373
                        -----------  -----------  -----------  -----------
Total non-current
 liabilities                 22,980       25,787       24,687       27,897
                        -----------  -----------  -----------  -----------

TOTAL LIABILITIES            54,165       59,094       57,316       63,604
                        -----------  -----------  -----------  -----------

                        -----------  -----------  -----------  -----------
TOTAL EQUITY AND
 LIABILITIES                130,343      131,213      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

                                                 Three Months Three Months
                                                        Ended        Ended
                                                     Sept 30,     Sept 30,
                                                         2009         2008
                                                     US$ '000     US$ '000
                                                   (unaudited)  (unaudited)

Cash and cash equivalents at beginning of period        4,791        6,246

Operating cash flows before changes in working
 capital                                                4,701        3,951
Changes in Working Capital                               (584)      (1,862)
                                                  -----------  -----------
Cash generated from operations                          4,117        2,089

Net Interest and Income taxes paid                       (396)        (586)

Capital Expenditure (Net)                              (1,600)      (3,176)

Repayment of bank debt                                 (3,215)      (1,071)

                                                  -----------  -----------
Cash and cash equivalents at end of period              3,697        3,502
                                                  -----------  -----------

Contact Information

  • Contact:

    Trinity Biotech plc
    Kevin Tansley
    (353)-1-2769800
    E-mail: Email Contact

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