Trinity Biotech Announces Results for Q1, 2017
April 27 2017 - 8:09AM
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, 2017.
Quarter 1 Results
Total revenues for Q1, 2017 were $23.5m which
was marginally higher than that recorded in Q1, 2016.
|
2016Quarter 1 |
2017Quarter 1 |
Increase/
(decrease) |
|
US$’000 |
US$’000 |
% |
Point-of-Care |
3,268 |
4,010 |
22.7 |
% |
Clinical Laboratory |
20,248 |
19,526 |
(3.6 |
%) |
Total |
23,516 |
23,536 |
|
Point-of-Care revenues for Q1, 2017 increased by
$0.7m compared to Q1, 2016. This was attributable to higher HIV
sales in Africa. This is reflective of the fluctuating nature
of this market particularly in the context of Q1, 2016 revenues
being unusually low.
Meanwhile, Clinical Laboratory revenues
decreased from $20.2m to $19.5m, a decrease of 3.6% compared to Q1,
2016. This decrease was attributable to the impact of culling
a range of older declining product at the end of 2016.
Gross margin for the quarter was 42%. This was a
decrease when compared to the gross margin reported in Q1, 2016 of
43.1% though higher than the 40% reported in Q4, 2016. This
decrease was partly due to lower production levels in the immediate
aftermath of our recent product cull.
Research and Development expenses increased from
$1.1m to $1.3m. Meanwhile Selling, General and Administrative
(SG&A) remained constant at $7.0m.
Operating profit for the quarter decreased from
$1.8m to $1.3m – due to the combined impact of the lower gross
margin and slightly higher indirect costs.
Financing income for the quarter was marginally
lower at $0.2m reflecting lower deposit levels and interest rates.
Meanwhile, interest payable, mainly arising on the Company’s
exchangeable notes, was static at $1.2m. Further non-cash
income of $1m was recognised in the quarter. This was due to
a gain of $1.2m arising on a decrease in the fair value of the
embedded derivatives associated with the exchangeable notes and was
partly offset by non-cash interest of $0.2m.
The Company recorded a profit of $1.2m for the
quarter which equated to earnings per share of 5.6 cents.
However, excluding non-cash items the profit for the quarter was
$0.2m or an EPS of 1.0 cents. Fully diluted EPS for the quarter was
5.0 cents compared to 6.4 cents in Q1, 2016.
EBITDA before share option expense for the
quarter was $2.7m.
Share Buyback
During the quarter, the Company repurchased
181,000 ADRs at an average price of $6.40 and with a total value of
$1.2m. A further 134,000 ADRs at an average price of $5.63 have
been repurchased since quarter end. This brings the total purchased
since the beginning of the program to over 1.4m shares with a total
value of $11.9m.
Comments
Commenting on the results, Kevin Tansley, Chief
Financial Officer, said “Our operating profit of $1.3m this quarter
was lower than the $1.8m recorded in the equivalent quarter last
year due to slightly lower gross margins and marginally higher
indirect costs. However, it represents a significant increase
on Q4, 2016’s operating profit of $0.6m. Margins have started
to rebound towards more normal levels and this will continue with
revenue growth in the future, whilst indirect costs are being kept
under control.”
Ronan O’Caoimh, CEO of Trinity said “We were
pleased to see an improvement in profitability from the last
quarter of 2016, particularly as we are now seeing the impact of
culling some of our older products at the end of last year. Quarter
1 typically represents our lowest revenue quarter and we believe
that future profitability growth can be achieved by concentrating
on growing our key business lines with a particular emphasis on
Diabetes, Autoimmunity and HIV. At the same time we will
continue our share buyback program which is now approaching $12m
since being initiated in 2016.”
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,
2017(unaudited) |
|
Three Months
Ended Mar
31,
2016(unaudited) |
|
Three Months
Ended Dec
31, 2016
(unaudited) |
|
|
|
|
|
|
|
|
Revenues |
|
23,536 |
|
23,516 |
|
23,681 |
|
|
|
|
|
|
|
|
Cost of
sales |
|
(13,645 |
) |
(13,385 |
) |
(14,202 |
) |
|
|
|
|
|
|
|
Gross profit |
|
9,891 |
|
10,131 |
|
9,479 |
|
|
Gross
margin % |
|
42.0 |
% |
43.1 |
% |
40.0 |
% |
|
|
|
|
|
|
|
Other
operating income |
|
23 |
|
69 |
|
28 |
|
|
|
|
|
|
|
|
Research & development expenses |
|
(1,328 |
) |
(1,147 |
) |
(1,330 |
) |
|
Selling,
general and administrative expenses |
|
(7,028 |
) |
(6,961 |
) |
(7,206 |
) |
|
Indirect
share based payments |
|
(250 |
) |
(267 |
) |
(378 |
) |
|
|
|
|
|
|
|
Operating profit |
|
1,308 |
|
1,825 |
|
593 |
|
|
|
|
|
|
|
|
Financial
income |
|
177 |
|
220 |
|
221 |
|
|
Financial
expenses |
|
(1,170 |
) |
(1,181 |
) |
(1,182 |
) |
|
Net
financing (expense) |
|
(993 |
) |
(961 |
) |
(850 |
) |
|
|
|
|
|
|
|
Profit / (loss) before tax & non-cash financial income
/ (expense) |
|
315 |
|
864 |
|
(368 |
) |
|
|
|
|
|
|
|
Income tax
(expense) / credit |
|
(99 |
) |
(182 |
) |
421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the
period before once-off items & non-cash financial income /
(expense) |
|
|
|
|
216 |
|
|
682 |
|
|
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash financial
income / (expense) |
|
|
|
|
1,030 |
|
|
(2,029) |
|
|
4,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Once-off charges (net
of tax) |
|
|
|
|
- |
|
|
- |
|
|
(105,779) |
|
|
|
|
|
|
|
|
|
|
|
Profit / (loss) after tax and once-off items |
|
1,246 |
|
(1,347 |
) |
(100,866 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(loss) per ADR (US cents) |
|
5.6 |
|
(5.8 |
) |
(443.1 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings
per ADR excluding non-cash financial income (US cents)** |
|
1.0 |
|
2.9 |
|
0.2 |
|
|
|
|
|
|
|
|
Diluted
earnings per ADR (US cents) |
|
5.0 |
|
|
6.4* |
|
(373.1 |
) |
|
|
|
|
|
|
|
|
|
Diluted
earnings per ADR (US cents)** |
|
5.0 |
|
|
6.4* |
|
4.3 |
|
|
|
|
|
|
|
|
|
Weighted
average no. Of ADRs used in computing basic earnings per ADR |
|
22,102,620 |
|
23,287,867 |
|
22,761,641 |
|
|
|
|
|
|
|
|
Weighted
average no. Of ADRs used in computing diluted earnings per ADR |
|
27,362,174 |
|
28,656,394 |
|
28,031,122 |
|
|
|
|
|
|
|
|
* Under IAS 33 Earnings per Share, diluted earnings per share
cannot be anti-dilutive. Therefore, diluted earnings per ADR in
quarter 1, 2016 in accordance with IFRS would be a loss of 5.8
cents (i.e. equal to basic earnings per ADR).** Excluding once-off
charges
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 31,2017US$
‘000(unaudited) |
|
Dec 31,2016US$
‘000(unaudited) |
|
|
ASSETS |
|
|
|
Non-current
assets |
|
|
|
Property, plant and
equipment |
14,163 |
|
13,403 |
|
|
Goodwill and intangible
assets |
88,996 |
|
87,275 |
|
|
Deferred tax
assets |
14,669 |
|
14,556 |
|
|
Other assets |
828 |
|
870 |
|
|
Total
non-current assets |
118,656 |
|
116,104 |
|
|
|
|
|
|
Current
assets |
|
|
|
Inventories |
32,659 |
|
32,589 |
|
|
Trade and other
receivables |
22,683 |
|
22,586 |
|
|
Income tax
receivable |
1,290 |
|
1,205 |
|
|
Cash and cash
equivalents |
69,851 |
|
77,108 |
|
|
Total current
assets |
126,483 |
|
133,488 |
|
|
|
|
|
|
TOTAL
ASSETS |
245,139 |
|
249,592 |
|
|
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
Equity
attributable to the equity holders of the parent |
|
|
|
Share capital |
1,176 |
|
1,224 |
|
|
Share premium |
16,122 |
|
16,187 |
|
|
Accumulated
surplus |
93,171 |
|
93,004 |
|
|
Other reserves |
(1,193 |
) |
(1,688 |
) |
|
Total
equity |
109,276 |
|
108,727 |
|
|
|
|
|
|
Current
liabilities |
|
|
|
Income tax payable |
181 |
|
175 |
|
|
Trade and other
payables |
20,893 |
|
25,028 |
|
|
Provisions |
75 |
|
75 |
|
|
Total current
liabilities |
21,149 |
|
25,278 |
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
Exchangeable senior
note payable |
95,462 |
|
96,491 |
|
|
Other payables |
698 |
|
735 |
|
|
Deferred tax
liabilities |
18,554 |
|
18,361 |
|
|
Total
non-current liabilities |
114,714 |
|
115,587 |
|
|
|
|
|
|
TOTAL
LIABILITIES |
135,863 |
|
140,865 |
|
|
|
|
|
|
TOTAL EQUITY
AND LIABILITIES |
245,139 |
|
249,592 |
|
|
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, 2017
(unaudited) |
|
Three Months
Ended March
31, 2016
(unaudited) |
|
|
|
|
Cash and cash
equivalents at beginning of period |
77,108 |
|
101,953 |
|
|
|
|
Operating cash flows
before changes in working capital |
2,267 |
|
2,503 |
|
Changes in working
capital |
(2,208 |
) |
(628 |
) |
|
|
|
|
|
Cash generated from
operations |
59 |
|
1,875 |
|
|
|
|
Net Interest and Income
taxes (paid)/received |
177 |
|
(241 |
) |
|
|
|
Capital Expenditure
& Financing (net) |
(3,646 |
) |
(5,431 |
) |
|
|
|
Free cash flow |
(3,410 |
) |
(3,797 |
) |
|
|
|
Payment of HIV-2
licence fee |
(1,112 |
) |
- |
|
|
|
|
Share buyback |
(1,833 |
) |
(1,327 |
) |
|
|
|
Once-off items |
(902 |
) |
|
|
|
|
Cash and cash
equivalents at end of period |
69,851 |
|
96,829 |
|
|
|
|
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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