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 June 30, 2017.
Quarter 2 Results
Total revenues for Q2, 2017 were $25.4m compared
to $26.3m in Q2, 2016.
|
2016Quarter 2 |
2017Quarter 2 |
Increase/
(decrease) |
|
US$’000 |
US$’000 |
% |
Point-of-Care |
4,786 |
4,350 |
(9.1 |
%) |
Clinical Laboratory |
21,502 |
21,098 |
(1.9 |
%) |
Total |
26,288 |
25,448 |
(3.2 |
%) |
Point-of-Care revenues for Q2, 2017 decreased
from $4.8m to $4.4m. This was attributable to lower sales of HIV
products in Africa. Due to the nature of the African HIV
market, these sales tend to fluctuate significantly and this
quarter’s decrease is well within the normal range for such
fluctuations.
Meanwhile, Clinical Laboratory sales for the
quarter were $21.1m versus $21.5m for the corresponding period last
year, thus representing a decrease of 1.9%. However, when the
impact of recently culled products is taken into account,
underlying Clinical Laboratory sales rose by approximately
2%. This growth was mainly driven by higher Premier revenues,
including new placements of the Premier Resolution version of this
instrument, which specifically targets the haemoglobin variant
market.
The gross margin for the quarter was 42.5% which
compares to 45% in Q2, 2016. This decrease was due to lower
distributor pricing due to the strength of the US dollar against a
range of currencies and a less favourable sales mix i.e. lower
higher margin point-of-care revenues coupled with higher instrument
sales which tend to have significantly lower than average margins.
However, this quarter’s gross margin was higher than the two
previous quarters of 40% (Q4 2016) and 42% (Q1 2017).
Research and Development expenses remained
constant at $1.3m. Meanwhile Selling, General and Administrative
(SG&A) expenses fell from $7.8m to $7.6m in Q2 2017, due to
lower discretionary sales and marketing expenses, particularly
Meritas related costs incurred in Q2, 2016 which were not
replicated in the current quarter.
Operating profit for the quarter decreased from
$2.4m to $1.8m. This was due to the combined impact of the lower
revenues and gross margin though these factors were partially
offset by lower indirect costs incurred during the quarter.
Financial income for the quarter remained
constant at $0.2m whilst interest payable, mainly arising on the
Company’s exchangeable notes, was static at $1.2m. Further
non-cash income of $0.2m was also recognised in this quarter’s
income statement. This was due to a gain of $0.4m arising on
a decrease in the fair value of the embedded derivatives associated
with the exchangeable notes as offset by a non-cash interest charge
of $0.2m.
The Company recorded a profit of $0.9m for the
quarter which equates to earnings per share of 4.1 cents.
However, excluding non-cash items the profit for the quarter was
$0.7m or an EPS of 3.1 cents. Fully diluted EPS for the quarter was
6.8 cents compared to 8.5 cents in Q2, 2016.
EBITDA before share option expense for the
quarter was $3.3m.
Share Buyback
During the quarter, the Company repurchased
554,000 ADRs at an average price of $5.59 and with a total value of
$3.1m. A further 67,000 ADRs at an average price of $5.65 have been
repurchased since quarter end. This brings the total purchased
since the beginning of the program to approximately 1.9m shares
with a total value of $14.6m.
Comments
Commenting on the results, Kevin Tansley, Chief
Financial Officer, said “Our operating profit for the quarter of
$1.8m represented a decrease when compared to the equivalent
quarter last year. This was due to the combination of lower
revenues and a lower gross margin, though the impact of these
factors was partially offset by lower indirect costs. This
resulted in an EPS (before non-cash items) of 3.1 cents which,
whilst lower than the equivalent quarter last year, was higher than
the 1 cent per ADR reported in quarter one of this year.”
Ronan O’Caoimh, CEO of Trinity said “This
quarter’s revenues were down 3% when compared to Q2, 2016.
However, this was due to the impact of culling older non-economic
products in late 2016 and to the normal fluctuations which impact
our HIV sales, particularly in Africa. The remainder of our
business remains strong and demonstrated underlying revenue growth
this quarter. We were particularly pleased with the increase
in sales of our new Premier Resolution instrument. This instrument,
which is a sister product of the Premier Hb9210 A1c instrument,
specifically addresses the haemoglobin variant market. Though
it has only been launched relatively recently, it has been very
positively received by customers and I am confident that in common
with the Premier Hb9210, it will serve as a growth driver for the
company in the years ahead. Meanwhile, we bought back over
500,000 shares during the quarter and at current share price levels
it is our intention to continue to be active purchasers in the
market.”
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
MonthsEndedJune
30,2017(unaudited) |
Three
MonthsEndedJune
30,2016(unaudited) |
Six
MonthsEndedJune
30,2017(unaudited) |
Six
MonthsEndedJune
30,2016(unaudited) |
|
|
|
|
|
|
Revenues |
|
25,448 |
|
26,288 |
|
48,984 |
|
49,804 |
|
|
|
|
|
|
|
Cost of sales |
|
(14,629 |
) |
(14,472 |
) |
(28,274 |
) |
(27,856 |
) |
|
|
|
|
|
|
Gross
profit |
|
10,819 |
|
11,816 |
|
20,710 |
|
21,948 |
|
Gross margin % |
|
42.5 |
% |
45.0 |
% |
42.3 |
% |
44.1 |
% |
|
|
|
|
|
|
Other operating
income |
|
26 |
|
72 |
|
49 |
|
141 |
|
|
|
|
|
|
|
Research & development expenses |
|
(1,322 |
) |
(1,267 |
) |
(2,651 |
) |
(2,414 |
) |
Selling, general and
administrative expenses |
|
(7,561 |
) |
(7,797 |
) |
(14,588 |
) |
(14,758 |
) |
Indirect share based
payments |
|
(130 |
) |
(468 |
) |
(380 |
) |
(735 |
) |
|
|
|
|
|
|
Operating
profit |
|
1,832 |
|
2,356 |
|
3,140 |
|
4,182 |
|
|
|
|
|
|
|
Financial income |
|
196 |
|
223 |
|
373 |
|
443 |
|
Financial expenses |
|
(1,169 |
) |
(1,185 |
) |
(2,339 |
) |
(2,366 |
) |
Net financing
expense |
|
(973 |
) |
(962 |
) |
(1,966 |
) |
(1,923 |
) |
|
|
|
|
|
|
Profit before
tax & non-cash financial income / (expense) |
|
859 |
|
1,394 |
|
1,174 |
|
2,259 |
|
|
|
|
|
|
|
Income tax expense |
|
(176 |
) |
(131 |
) |
(275 |
) |
(313 |
) |
|
|
|
|
|
|
|
|
|
|
Profit for the
period before non-cash financial income / (expense) |
|
683 |
|
1,263 |
|
899 |
|
1,946 |
|
|
|
|
|
|
|
|
|
|
|
Non-cash financial
income / (expense) |
|
219 |
|
841 |
|
1,249 |
|
(1,188 |
) |
|
|
|
|
|
|
|
|
|
|
Profit after
tax and once-off items |
|
902 |
|
2,104 |
|
2,148 |
|
758 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADR (US
cents) |
|
4.1 |
|
9.1 |
|
9.8 |
|
3.3 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADR
excluding non-cash financial income (US cents) |
|
3.1 |
|
5.5 |
|
4.1 |
|
8.4 |
|
|
|
|
|
|
|
Diluted earnings per
ADR (US cents) |
|
6.8* |
|
8.5 |
|
11.7* |
|
14.9* |
|
|
|
|
|
|
|
Weighted average no. of
ADRs used in computing basic earnings per ADR |
|
21,847,528 |
|
23,016,169 |
|
21,974,369 |
|
23,152,018 |
|
|
|
|
|
|
|
Weighted average no. of
ADRs used in computing diluted earnings per ADR |
|
27,104,994 |
|
28,409,024 |
|
27,231,931 |
|
28,526,486 |
|
|
|
|
|
|
|
* Under IAS 33 Earnings per Share, diluted earnings per share
cannot be anti-dilutive. In a reporting period where it is
anti-dilutive, diluted earnings per ADR should be constrained to
equal 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 |
|
|
June
30,2017US$
‘000(unaudited) |
March
31,2017US$
‘000(unaudited) |
Dec
31,2016US$
‘000(audited) |
ASSETS |
|
|
|
Non-current
assets |
|
|
|
Property, plant and
equipment |
14,462 |
|
14,163 |
|
13,403 |
|
Goodwill and intangible
assets |
90,438 |
|
88,996 |
|
87,275 |
|
Deferred tax
assets |
15,352 |
|
14,669 |
|
14,556 |
|
Other assets |
873 |
|
828 |
|
870 |
|
Total
non-current assets |
121,125 |
|
118,656 |
|
116,104 |
|
|
|
|
|
Current
assets |
|
|
|
Inventories |
33,620 |
|
32,659 |
|
32,589 |
|
Trade and other
receivables |
24,856 |
|
22,683 |
|
22,586 |
|
Income tax
receivable |
1,220 |
|
1,290 |
|
1,205 |
|
Cash and cash
equivalents |
63,977 |
|
69,851 |
|
77,108 |
|
Total current
assets |
123,673 |
|
126,483 |
|
133,488 |
|
|
|
|
|
TOTAL
ASSETS |
244,798 |
|
245,139 |
|
249,592 |
|
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
Equity
attributable to the equity holders of the parent |
|
|
|
Share capital |
1,176 |
|
1,176 |
|
1,224 |
|
Share premium |
16,122 |
|
16,122 |
|
16,187 |
|
Accumulated
surplus |
90,977 |
|
93,171 |
|
93,004 |
|
Other reserves |
(1,409 |
) |
(1,193 |
) |
(1,688 |
) |
Total
equity |
106,866 |
|
109,276 |
|
108,727 |
|
|
|
|
|
Current
liabilities |
|
|
|
Income tax payable |
582 |
|
181 |
|
175 |
|
Trade and other
payables |
22,572 |
|
20,893 |
|
25,028 |
|
Provisions |
75 |
|
75 |
|
75 |
|
Total current
liabilities |
23,229 |
|
21,149 |
|
25,278 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
Exchangeable senior
note payable |
95,245 |
|
95,462 |
|
96,491 |
|
Other payables |
640 |
|
698 |
|
735 |
|
Deferred tax
liabilities |
18,818 |
|
18,554 |
|
18,361 |
|
Total
non-current liabilities |
114,703 |
|
114,714 |
|
115,587 |
|
|
|
|
|
TOTAL
LIABILITIES |
137,932 |
|
135,863 |
|
140,865 |
|
|
|
|
|
TOTAL EQUITY
AND LIABILITIES |
244,798 |
|
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
MonthsEndedJune
30,2017
(unaudited) |
Three Months
Ended June
30, 2016
(unaudited) |
Six Months
EndedJune
30,2017
(unaudited) |
Six Months
Ended June
30, 2016
(unaudited) |
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
69,851 |
|
96,829 |
|
77,108 |
|
101,953 |
|
|
|
|
|
|
Operating cash flows
before changes in working capital |
3,739 |
|
5,282 |
|
6,006 |
|
7,786 |
|
Changes in working
capital |
(367 |
) |
(3,234 |
) |
(2,575 |
) |
(3,862 |
) |
Cash generated from
operations |
3,372 |
|
2,048 |
|
3,431 |
|
3,924 |
|
|
|
|
|
|
Net Interest and Income
taxes (paid)/received |
62 |
|
149 |
|
239 |
|
(92 |
) |
|
|
|
|
|
Capital Expenditure
& Financing (net) |
(3,185 |
) |
(5,995 |
) |
(6,832 |
) |
(11,427 |
) |
|
|
|
|
|
Free cash flow |
249 |
|
(3,798 |
) |
(3,162 |
) |
(7,595 |
) |
|
|
|
|
|
Share buyback |
(3,096 |
) |
(4,699 |
) |
(4,929 |
) |
(6,026 |
) |
|
|
|
|
|
Payment of HIV-2
licence fee |
- |
|
(1,112 |
) |
(1,112 |
) |
(1,112 |
) |
|
|
|
|
|
30 year Exchangeable
Note interest payment |
(2,300 |
) |
(2,300 |
) |
(2,300 |
) |
(2,300 |
) |
|
|
|
|
|
Once-off items |
(727 |
) |
- |
|
(1,628 |
) |
- |
|
|
|
|
|
|
Cash and cash
equivalents at end of period |
63,977 |
|
84,920 |
|
63,977 |
|
84,920 |
|
|
|
|
|
|
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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