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, 2016.
Quarter 1 Results
Total revenues for Q1, 2016 were $23.5m which
compares to $25.2m in Q1, 2015, a decrease of 7%. However, when the
impact of foreign exchange movements, due to the strength of the US
dollar against a range of other currencies is removed, revenues on
a like-for-like basis would have been $24.3m this quarter, thus
representing a decrease of 4% versus the equivalent quarter in
2015.
|
|
|
|
|
|
2015Quarter 1 |
2016Quarter 1 |
2016Quarter 1FX
adjusted* |
Increase/(decrease) |
|
US$’000 |
US$’000 |
US$’000 |
% |
Point-of-Care |
4,585 |
3,268 |
3,287 |
|
(28 |
%) |
Clinical Laboratory |
20,655 |
20,248 |
21,037 |
|
2 |
% |
Total |
25,240 |
23,516 |
24,324 |
|
(4 |
%) |
* Q1, 2016 revenues have been recalculated on a
constant currency basis using the exchange rates prevailing in Q1,
2015
Point-of-Care revenues for Q1, 2016 fell by
$1.3m compared to Q1, 2015. This was attributable to lower than
expected HIV sales in Africa. Such fluctuations are a feature of
the African HIV market which exhibits irregular ordering patterns
from customers. Meanwhile, Clinical Laboratory revenues increased
from $20.7m to $21.0m, an increase of 2% compared to Q1, 2015
mainly due to higher Premier and Immco revenues.
Gross margins for the quarter were 43.1%. This
is lower than the gross margin reported in Q1, 2015 of 47.9% though
was similar to the 43.2% reported in Q4, 2015. Production levels
were lower in response to this quarter’s lower revenues – thus
resulting in an underabsorption of fixed labour and overhead costs
and hence resulting in lower gross margins. It was also impacted by
lower HIV sales, which tend to have higher than average
margins.
Research and Development expenses increased from
$1m to $1.1m. Meanwhile Selling, General and Administrative
(SG&A) expenses increased from $6.3m to $7.0m, mainly due to
non-cash foreign currency retranslation charges.
Operating profit for the quarter decreased from
$4.3m to $1.8m – largely due to the lower revenues and gross margin
this quarter.
Financing expenses for the quarter amounted to
$3m. Of this, $0.2m consisted of deposit interest income and $1.2m
of interest payable on the Company’s exchangeable notes. A
further non-cash charge of $2m was recognised in the quarter mainly
due an increase in the fair value of the embedded derivatives
associated with these exchangeable notes.
The Company recorded a loss of $1.3m for the
quarter which equated to a loss per share of 5.8 cents.
However, excluding non-cash items the profit for the quarter was
$0.7m or an EPS of 2.9 cents. Fully diluted EPS for the quarter was
6.4 cents.
EBITDA before share option expense for the
quarter was $3.4m.
Cardiac Update
Trinity submitted a 510(k) application for its
high sensitivity cardiac Troponin-I assay and Meritas Point-of-Care
Analyzer to the FDA at the end of 2015. The application is being
reviewed according to the FDA’s published review process, and is
currently in the substantive review phase. We are happy that the
review process and our interactions with the FDA are proceeding
well and in accordance with our expectations. As part of this
review process, the Company has received a detailed list of
questions and comments from the FDA. We are now working through
this list and are confident that comprehensive responses can be
provided to satisfactorily address all of the FDA’s questions.
The US clinical validation studies in support of
a 510(k) submission to the FDA for a second cardiac marker assay,
B-type Natriuretic Protein (BNP), are progressing well. There are
10 clinical sites, geographically dispersed across the US, that are
actively enrolling. Enrolment is currently 70% complete and is on
track to be fully completed by the end of Q2, 2016. Consequently,
we are anticipating submission of our BNP 510(k) application to the
FDA by the end of Q3, 2016.
Share Buyback
The Company announced the commencement of a
share repurchase program in March, 2016. During the quarter, the
Company repurchased 132,000 ADRs at an average price of
$11.41. The total value of the repurchases was $1.5m, of
which $1.3m was settled during the quarter.
Comments
Commenting on the results, Kevin Tansley, Chief
Financial Officer, said “Results this quarter were adversely
impacted by lower HIV sales in Africa. However these lower sales
were driven by the variable sales patterns that characterise this
market, rather than by any deterioration in the underlying
business. The decrease of the relatively higher margin HIV sales,
resulted in both lower gross margins and operating profit being
reported this quarter. Notwithstanding this, the Company achieved
operating profits of over $1.8m. Meanwhile, excluding non-cash
items relating to the Company’s exchangeable notes, profit after
tax for the quarter amounted to $0.7m.”
Ronan O’Caoimh, CEO of Trinity said “At the end
of 2015 we submitted our Meritas Troponin product to the FDA. We
recently received the FDA’s formal review document relating to this
submission and we are pleased to state that we are confident of
addressing all of their queries by the end of July. We are also
making excellent progress with our BNP trials and we remain on
target to submit this product to the FDA during quarter 3, this
year.
We recently announced the commencement of a
share buyback program as we felt that this represented the best
deployment of the Company’s capital, particularly given its current
share price. During the quarter a total of 132,000 shares with a
value of $1.5m were repurchased. We intend to continue repurchasing
in the months ahead, though the exact number of shares that will be
repurchased will depend on market conditions, whilst being subject
to applicable securities laws and regulations.”
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 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 |
|
|
|
|
|
(US$000’s except share data) |
|
Three Months
Ended Mar
31,
2016 (unaudited) |
Three Months
Ended Dec
31, 2015
(unaudited) |
Three Months
Ended Mar
31,
2015 (unaudited) |
|
|
|
|
|
Revenues |
|
|
23,516 |
|
|
24,937 |
|
|
25,240 |
|
|
|
|
|
|
Cost of
sales |
|
|
(13,385 |
) |
|
(14,170 |
) |
|
(13,140 |
) |
|
|
|
|
|
Gross
profit |
|
|
10,131 |
|
|
10,767 |
|
|
12,100 |
|
Gross profit
% |
|
|
43.1 |
% |
|
43.2 |
% |
|
47.9 |
% |
|
|
|
|
|
Other
operating income |
|
|
69 |
|
|
65 |
|
|
78 |
|
|
|
|
|
|
Research & development expenses |
|
|
(1,147 |
) |
|
(1,508 |
) |
|
(998 |
) |
Selling,
general and administrative expenses |
|
|
(6,961 |
) |
|
(6,009 |
) |
|
(6,287 |
) |
Indirect share
based payments |
|
|
(267 |
) |
|
(184 |
) |
|
(558 |
) |
|
|
|
|
|
Operating profit |
|
|
1,825 |
|
|
3,131 |
|
|
4,335 |
|
|
|
|
|
|
Financial
income |
|
|
220 |
|
|
132 |
|
|
1 |
|
Financial
expenses |
|
|
(1,181 |
) |
|
(1,189 |
) |
|
(24 |
) |
Non-cash
financial (expense) / income |
|
|
(2,029 |
) |
|
975 |
|
|
- |
|
Net
financing (expense) / income |
|
|
(2,990 |
) |
|
(82 |
) |
|
(23 |
) |
|
|
|
|
|
Profit
/ (loss) before tax |
|
|
(1,165 |
) |
|
3,049 |
|
|
4,312 |
|
|
|
|
|
|
Income tax
expense |
|
|
(182 |
) |
|
(223 |
) |
|
(304 |
) |
|
|
|
|
|
|
|
|
|
|
|
Profit
/ (loss) for the period |
|
|
(1,347 |
) |
|
2,826 |
|
|
4,008 |
|
|
|
|
|
|
Earnings per
ADR (US cents) |
|
|
(5.8 |
) |
|
12.1 |
|
|
17.0 |
|
|
|
|
|
|
Earnings per
ADR excluding non-cash financial income (US cents) |
|
|
2.9 |
|
|
8.0 |
|
|
17.0 |
|
|
|
|
|
|
Diluted
earnings per ADR (US cents) |
|
|
6.4* |
|
|
10.5 |
|
|
17.4 |
|
|
|
|
|
|
|
|
|
|
Weighted
average no. Of ADRs used in computing basic earnings per ADR |
|
|
23,287,867 |
|
|
23,259,669 |
|
|
22,985,234 |
|
|
|
|
|
|
Weighted
average no. Of ADRs used in computing diluted earnings per ADR |
|
|
28,656,394 |
|
|
28,690,599 |
|
|
23,604,244 |
|
|
|
|
|
|
* Under IAS 33 Earnings per Share, diluted earnings per share
cannot be anti-dilutive. Therefore, diluted earnings per ADR in
accordance with IFRS would be a loss of 5.8 cents (i.e. equal to
basic earnings per ADR).
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 |
|
|
|
|
|
|
Mar
31, 2016 US$
‘000 (unaudited) |
|
Dec 31, 2015 US$
‘000 (unaudited) |
ASSETS |
|
|
|
Non-current
assets |
|
|
|
Property, plant and
equipment |
|
|
21,460 |
|
|
|
20,659 |
|
Goodwill and intangible
assets |
|
|
165,157 |
|
|
|
161,324 |
|
Deferred tax assets |
|
|
13,096 |
|
|
|
12,792 |
|
Other assets |
|
|
860 |
|
|
|
954 |
|
Total non-current
assets |
|
|
200,573 |
|
|
|
195,729 |
|
|
|
|
|
Current
assets |
|
|
|
Inventories |
|
|
35,709 |
|
|
|
35,125 |
|
Trade and other
receivables |
|
|
26,260 |
|
|
|
25,602 |
|
Income tax receivable |
|
|
664 |
|
|
|
550 |
|
Cash and cash
equivalents |
|
|
96,829 |
|
|
|
101,953 |
|
Total current
assets |
|
|
159,462 |
|
|
|
163,230 |
|
|
|
|
|
TOTAL
ASSETS |
|
|
360,035 |
|
|
|
358,959 |
|
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
Equity
attributable to the equity holders of the parent |
|
|
|
Share capital |
|
|
1,220 |
|
|
|
1,220 |
|
Share premium |
|
|
15,521 |
|
|
|
15,526 |
|
Accumulated surplus |
|
|
199,453 |
|
|
|
201,951 |
|
Other reserves |
|
|
(3,723 |
) |
|
|
(4,809 |
) |
Total
equity |
|
|
212,471 |
|
|
|
213,888 |
|
|
|
|
|
Current
liabilities |
|
|
|
Income tax payable |
|
|
1,026 |
|
|
|
1,163 |
|
Trade and other
payables |
|
|
19,195 |
|
|
|
18,874 |
|
Provisions |
|
|
75 |
|
|
|
75 |
|
Total current
liabilities |
|
|
20,296 |
|
|
|
20,112 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
Exchangeable senior note
payable |
|
|
100,073 |
|
|
|
98,044 |
|
Other payables |
|
|
2,057 |
|
|
|
2,096 |
|
Deferred tax
liabilities |
|
|
25,138 |
|
|
|
24,819 |
|
Total non-current
liabilities |
|
|
127,268 |
|
|
|
124,959 |
|
|
|
|
|
TOTAL
LIABILITIES |
|
|
147,564 |
|
|
|
145,071 |
|
|
|
|
|
TOTAL EQUITY AND
LIABILITIES |
|
|
360,035 |
|
|
|
358,959 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
(US$000’s) |
|
Three Months
Ended March
31,
2016 (unaudited) |
|
Three Months
Ended March
31,
2015 (unaudited) |
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
|
101,953 |
|
|
|
9,102 |
|
|
|
|
|
Operating cash flows
before changes in working capital |
|
|
2,503 |
|
|
|
6,298 |
|
Changes in working
capital |
|
|
(628 |
) |
|
|
(4,322 |
) |
Cash generated from
operations |
|
|
1,875 |
|
|
|
1,976 |
|
|
|
|
|
Net Interest and Income
taxes (paid)/received |
|
|
(241 |
) |
|
|
(108 |
) |
|
|
|
|
Capital Expenditure &
Financing (net) |
|
|
(5,431 |
) |
|
|
(4,113 |
) |
|
|
|
|
Free cash flow |
|
|
(3,797 |
) |
|
|
(2,245 |
) |
|
|
|
|
Payment of HIV-2 licence
fee |
|
|
- |
|
|
|
(1,112 |
) |
|
|
|
|
Share buyback |
|
|
(1,327 |
) |
|
|
- |
|
|
|
|
|
Cash and cash
equivalents at end of period |
|
|
96,829 |
|
|
|
5,745 |
|
|
|
|
|
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).
Contact:
Trinity Biotech plc
Kevin Tansley
(353)-1-2769800
E-mail: kevin.tansley@trinitybiotech.com
Lytham Partners LLC
Joe Diaz, Joe Dorame & Robert Blum
602-889-9700
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