SOURCE: Trinity Biotech plc

March 06, 2007 09:00 ET

Trinity Biotech Announces Year End Results and a Unigold Contract With the U.S. President's Emergency Plan for AIDS Relief (PEPFAR)

DUBLIN, IRELAND -- (MARKET WIRE) -- March 6, 2007 --Trinity Biotech plc (NASDAQ: TRIB) (DUBLIN: TRIB), 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, 2006 and a new contract for the supply of rapid HIV products to fifteen countries under President Bush's PEPFAR programme.

Revenues for the year increased 20.4% to US$118.7 million compared to US$98.6 million in 2005. During the same period operating profit before share option expenses increased from US$8.0 million to US$8.9 million before the impact of the once off inventory write-off of US$5.8 million associated with the bioMerieux acquisition. Profit after tax for the period increased from US$5.3 million in 2005 to US$7.5 million before the inventory write off, representing an increase of 42%.

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

                               2005            2006
                          --------------- --------------- -------------
                              US$000          US$000        % Increase
                          --------------- --------------- -------------

Clinical Chemistry                 11,880          14,868          25.2 %
                          --------------- --------------- -------------
Haemostasis                        29,766          46,476          56.1 %
                          --------------- --------------- -------------
Infectious Diseases                44,078          42,051          (4.6)%
                          --------------- --------------- -------------
Point of Care                      12,836          15,279          19.0 %
                          --------------- --------------- -------------
Total                              98,560         118,674          20.4 %
                          --------------- --------------- -------------


Revenues for the year by geographical location were as follows:

                               2005            2006
                          --------------- --------------- --------------
                              US$000          US$000        % Increase
                          --------------- --------------- --------------

USA                                50,627          60,748           20.0%
                          --------------- --------------- --------------
Europe                             25,301          34,452           36.2%
                          --------------- --------------- --------------
Asia / Africa                      22,632          23,474            3.7%
                          --------------- --------------- --------------
Total                              98,560         118,674           20.4%
                          --------------- --------------- --------------
Gross profit for the year amounted to US$50.8 million or US$56.6 million before the once off inventory write off, representing a gross margin of 47.7%. This compares to a gross margin of 47.9% for 2005. The once off inventory write-off of US$5.8 million (US$4.2 million after tax) is primarily attributable to the discontinuation of various product lines following the acquisition of the bioMerieux haemostasis business in June.

R&D expenses are 13.7% higher than last year at US$6.7 million. The increase in selling, general and administrative expenses from US$33.6 million in 2005 to US$41.4 million in the current year is primarily attributable to the impact of the bioMerieux haemostasis acquisition in June and the direct selling operations in France which commenced in October.

Commenting on the results, Rory Nealon, Chief Financial Officer, said, "The conclusion of 2006 represents an important inflection point for Trinity. In June we completed our largest acquisition to date with the acquisition of bioMerieux's haemostasis product line which will have a significant impact on the profitability and scale of Trinity going forward. This acquisition has increased Trinity's share of the global haemostasis market from 4% to 13% and will provide us with the scale necessary to compete profitably in this market segment. In particular the acquisition has strengthened our position in our direct markets in the USA, the UK and Germany and has given us the scale to go direct in France.

Equally important to the strategic acquisition and integration of the haemostasis business, our Clinical Chemistry, Haemostasis and Point-of-Care product lines all delivered strong sequential growth during the year and are now positioned to drive material organic growth for 2007 and beyond. Our profit after tax and before the once off inventory write-off has increased by 42% during the year from US$5.3 million to US$7.5 million.

Due to a delay in the collection of cash from a large contract, we have decided to defer the revenue on this transaction and this deferral has had a US$1.7 million impact on our profitability for the year. We are fully confident that these funds will be collected during 2007 and will therefore increase our levels of profitability above current market expectations."

In 2003, the United States established the U.S. President's Emergency Plan for AIDS Relief (PEPFAR) with a pledge of $15 billion over five years to enable scale up of HIV/AIDS prevention, treatment and care programs in the developing world, with an urgent focus on 15 countries that are among the most affected by the disease.

As part of PEPFAR, the Partnership for Supply Chain Management (PSCM), which is a nonprofit public health organization, have been awarded the Supply Chain Management System (SCMS) project which works to strengthen existing national supply chain efforts in the field in order to ensure long-term sustainability of distribution systems. To further enable scale up, SCMS operates a full-scale supply chain to procure and distribute test kits, medicines, lab supplies and other essential products.

Trinity announces today that it has been awarded a two-year contract with PSCM for Uni-Gold and Capillus rapid HIV test kits in support of PEPFAR. Commenting on the contract, Ronan O' Caoimh, CEO said, "We anticipate driving substantial revenue growth in our African point-of-care segment with the execution of this contract. Trinity is delighted to be selected as an approved supplier of rapid HIV test kits and we look forward to working with our new partners at PSCM and the 15 focus countries to quickly deploy the needed rapid test kits for this critical global initiative."

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 is 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 Months  Three Months
                        Ended         Ended      Year Ended    Year Ended
                    December 31,  December 31,  December 31,  December 31,
(US$000’s  except       2006          2005          2006          2005
 share data)        (unaudited)   (unaudited)   (unaudited)

Revenues                  33,328        28,052       118,674        98,560

Cost of sales            (17,703)      (14,798)      (61,998)      (51,268)
Cost of sales -
 inventory write
 off                           -             -        (5,800)            -
Cost of sales -
 share based
 payments                    (17)          (30)          (89)         (110)
                    ------------  ------------  ------------  ------------

Gross profit              15,608        13,224        50,787        47,182
Gross profit before
 inventory write
 off                      15,608        13,224        56,587        47,182

Other operating
 income                      115           (25)          275           161

Research &
 development
 expenses                 (1,964)       (1,570)       (6,663)       (5,860)
Selling, general
 and administrative
 expenses                (12,503)       (8,950)      (41,406)      (33,603)
Indirect share
 based payments             (136)         (292)       (1,052)       (1,258)
                    ------------  ------------  ------------  ------------

Operating profit
                           1,120         2,387         1,941         6,622
Operating profit
 before inventory
 write off                 1,120         2,387         7,741         6,622

Financial income             368            89         1,164           389
Financial expenses          (929)         (327)       (2,653)       (1,058)
                    ------------  ------------  ------------  ------------
Net financing costs         (561)         (238)       (1,489)         (669)
                    ------------  ------------  ------------  ------------
Profit before tax            559         2,149           452         5,953

Income tax
 (expense) / credit        1,038          (281)        2,824          (673)
                    ------------  ------------  ------------  ------------

Profit for the
 period                    1,597         1,868         3,276         5,280
                           
Profit for the
 period before
 inventory write
 off                       1,597         1,868         7,503         5,280

Earnings per ADR
 (US cents)                  8.5          12.0          18.5          36.0
Earnings per ADR
 before inventory
 write off                   8.5          12.0          42.5          36.0

Diluted earnings
 per ADR (US cents)          8.5          11.7          18.5          34.8
Diluted earnings
 per ADR before
 inventory write
 off                         8.5          11.7          41.5          34.8

 Weighted average
  no. of shares used
  in computing
  earnings per share  74,947,004    61,434,766    70,693,753    58,890,084


The above financial statements have been prepared in accordance with the
 principles of International Financial Reporting Standards and the
 Company's accounting policies.


                            Trinity Biotech plc
                        Consolidated Balance Sheets

                                          December 31,    December 31,
                                         2006 US$ ‘000   2005 US$ ‘000
                                           (unaudited)     (audited)
ASSETS
Non-current assets
Property, plant and equipment                    22,255          19,202
Goodwill and intangible assets                  121,768          85,197
Deferred tax assets                               7,656           3,277
Other assets                                         76              61
                                         --------------  --------------
Total non-current assets                        151,755         107,737
                                         --------------  --------------

Current assets
Inventories                                      45,572          36,450
Trade and other receivables                      33,115          20,885
Income tax receivable                               368             649
Financial assets - restricted cash               15,500           9,000
Cash and cash equivalents                         2,821           9,881
                                         --------------  --------------
Total current assets                             97,376          76,865
                                         --------------  --------------

                                         --------------  --------------
TOTAL ASSETS                                    249,131         184,602
                                         ==============  ==============

EQUITY AND LIABILITIES
Equity attributable to the equity
 holders of the parent
Share capital                                       978             830
Share premium                                   151,774         124,227
Retained earnings                                10,818           6,280
Translation reserve                                (275)         (1,622)
Other reserves                                    3,967           3,903
                                         --------------  --------------
Total equity                                    167,262         133,618
                                         --------------  --------------

Current liabilities
Interest-bearing loans and borrowings            10,382           7,720
Convertible notes - interest bearing              1,836           7,203
Income tax payable                                   44             260
Trade and other payables                         20,459          12,768
Other financial liabilities                       3,120           3,707
Derivative financial instruments                      -              44
Provisions                                          100             199
                                         --------------  --------------
Total current liabilities                        35,941          31,901
                                         --------------  --------------
Non-current liabilities
Interest-bearing loans and borrowings            33,076          10,369
                                                 
Other financial liabilities                       2,568               -
Convertible notes - interest bearing                  -           1,836
Other tax payable                                     -              48
Other payables                                      838             102
Deferred tax liabilities                          9,446           6,728
                                         --------------  --------------
Total non-current liabilities                    45,928          19,083
                                         --------------  --------------
                                         --------------  --------------
TOTAL LIABILITIES                                81,869          50,984
                                         --------------  --------------
                                         --------------  --------------
TOTAL EQUITY AND LIABILITIES                    249,131         184,602
                                         ==============  ==============


The above financial statements have been prepared in accordance with the
principles of International Financial Reporting Standards and the Company’s
accounting policies.

Contact Information

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