DUBLIN, Ireland, April 27, 2017 (GLOBE NEWSWIRE) -- 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 $23.5m which was marginally higher than that recorded in Q1, 2016.
  2016 Quarter 1 2017 Quarter 1 Increase/ (decrease)
  US$'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, 2017 US$ '000 (unaudited)   Dec 31, 2016 US$ '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 plcKevin Tansley(353)-1-2769800E-mail: kevin.tansley@trinitybiotech.comLytham Partners LLCJoe Diaz, Joe Dorame & Robert Blum602-889-9700

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