DUBLIN, Ireland, Oct. 26, 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 September 30, 2017.

Quarter 3 Results

Total revenues for Q3, 2017 were $25.6m which is broken down as follows:
  2016 Quarter 3 2017 Quarter 3 Increase/ (decrease)
  US$'000 US$'000 %
Point-of-Care 4,903 4,598 (6.2 %)
Clinical Laboratory 21,224 21,006 (1.0 %)
Total 26,127 25,604 (2.0 %)

Point-of-Care revenues for Q3, 2017 decreased from $4.9m to $4.6m. This was primarily due to lower sales of HIV products in Africa. 

Meanwhile, Clinical Laboratory sales for the quarter were $21.0m versus $21.2m for the corresponding period last year, thus representing a decrease of 1.0%.  However, when the impact of recently culled products is taken into account, underlying Clinical Laboratory sales increased by approximately 2.6%.  This growth was mainly driven by higher Premier revenues, including the impact of Premier Resolution, as well as higher autoimmune sales largely driven by strong laboratory services revenues.

The gross margin for the quarter was 43%, which compares to 44.7% in Q3, 2016. This decrease is largely due to lower high margin point-of-care revenues and foreign exchange factors, including the impact of exchange rates on distributor pricing. Whilst the gross margin is lower than in the comparative period it continues the trend of sequentially improving gross margins witnessed in recent quarters.

Research and Development expenses increased from $1.3m in Q3, 2016 to $1.5m in Q3, 2017. Meanwhile, Selling, General and Administrative (SG&A) expenses increased from $7.5m to $7.8m in Q3, 2017, an increase of approximately 3%. This increase was due to normal inflationary pressures and higher discretionary sales and marketing expenses such as trade shows and travel costs. 

Operating profit for the quarter decreased from $2.7m to $1.5m. This was due to the combined impact of the lower revenues and gross margin and the higher indirect costs incurred during the quarter.

Both financial income and interest payable for the quarter remained static at $0.2m and $1.2m respectively. The interest payable arises mainly on the Company's exchangeable notes.  A further non-cash expense of $0.1m was recognised in this quarter's income statement, again in relation to the exchangeable notes.  This was due to a non-cash interest charge of $0.2m partially offset by a gain of $0.1m arising on a decrease in the fair value of the derivatives embedded in these notes.

Overall, the Company recorded a profit of $0.4m for the quarter, which equates to earnings per share of 2.1 cents.  However, excluding non-cash items the profit for the quarter was $0.5m or an EPS of 2.4 cents. Fully diluted EPS for the quarter was 6.3 cents compared to 9.7 cents in Q3, 2016.

EBITDA before share option expense for the quarter was $3.1m.

Share Buyback

During the quarter, the Company repurchased 281,000 ADRs at an average price of $5.49 and with a total value of $1.5m. This brings the total purchased since the beginning of the program to approximately 2.1m shares with a total value of $15.8m.

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said "This quarter we demonstrated continued progress from a financial perspective. As well achieving underlying growth in our Clinical Laboratory revenues, we also reported an increase in gross margins for the third quarter in a row. However, this has not immediately translated into higher profits as our indirect costs were slightly higher this quarter, due to increased investment in both R&D and sales and marketing activities as we seek to drive future revenue growth. Another positive aspect was that we generated positive free cash flows this quarter, thus reflecting the improved cash flows of the Company following the suspension of the Meritas project in late 2016."

Ronan O'Caoimh, CEO of Trinity said "This quarter underlying growth in our key Clinical Laboratory segment was driven by higher haemoglobin and autoimmune revenues. Our haemoglobin revenues are now being boosted by new sales of our recently launched Premier Resolution instrument, which specifically targets the haemogloblin variant market. This instrument is building on the continued success of our Premier 9210 Diabetes instrument, which is now the market leader in a number of countries. Meanwhile, our autoimmune revenues are increasing as we grow our laboratory services business through a combination of increased testing menu and the ongoing development of key commercial relationships.  We continue to retain our pre-eminent position in the confirmatory HIV testing market in Africa and whilst revenues were down this quarter, year to date sales are in line with last year. Future growth opportunities in the HIV market will come from our forthcoming entry into the HIV screening market in Africa.

We believe that the current strength of our product portfolio and the growth opportunities inherent in our business are not fully reflected in our current share price. Consequently we remain committed to buying back a significant number of Trinity shares at these levels."

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 September 30, 2017 (unaudited)   Three Months Ended September 30, 2016 (unaudited)   Nine Months Ended September 30, 2017 (unaudited)   Nine Months Ended September 30, 2016 (unaudited)  
           
Revenues   25,604   26,127   74,588   75,931  
           
Cost of sales   (14,606 ) (14,460 ) (42,889 ) (42,316 )
           
Gross profit   10,998   11,667   31,699   33,615  
Gross margin %   43.0 % 44.7 % 42.5 % 44.3 %
           
Other operating income   25   70   73   211  
           
Research & development expenses   (1,469 ) (1,296 ) (4,119 ) (3,711 )
Selling, general and administrative expenses   (7,761 ) (7,487 ) (22,341 ) (22,245 )
Indirect share based payments   (265 ) (236 ) (644 ) (971 )
           
Operating profit   1,528   2,718   4,668   6,899  
           
Financial income   212   212   584   657  
Financial expenses   (1,168 ) (1,179 ) (3,506 ) (3,545 )
Net financing expense   (956 ) (967 ) (2,922 ) (2,888 )
           
Profit before tax & non-cash financial income / (expense)   572   1,751   1,746   4,011  
           
Income tax expense   (56 ) (148 ) (331 ) (462 )
                   
Profit for the period before non-cash financial income / (expense)   516   1,603   1,415   3,549  
                   
Non-cash financial income / (expense)   (71 ) (2,120 ) 1,178   (3,308 )
                   
Profit / (loss) after tax and once-off items   445     (517 ) 2,593   241  
                   
Earnings per ADR (US cents)   2.1   (2.3 ) 11.9   1.0  
                   
Earnings per ADR excluding non-cash financial income (US cents)   2.4   7.0   6.5   15.4  
           
Diluted earnings per ADR (US cents)   6.3*   9.7*   18.0*   24.6*  
           
Weighted average no. of ADRs used in computing basic earnings per ADR   21,379,422   22,797,208   21,773,874   23,032,885  
           
Weighted average no. of ADRs used in computing diluted earnings per ADR   26,636,857   28,379,444   27,031,396   28,452,580  
           

* 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
         
  September 30, 2017 US$ '000 (unaudited)   June 30, 2017 US$ '000 (unaudited)   March 31, 2017 US$ '000 (unaudited)   Dec 31, 2016 US$ '000 (unaudited)  
ASSETS        
Non-current assets        
Property, plant and equipment 15,191   14,462   14,163   13,403  
Goodwill and intangible assets 92,185   90,438   88,996   87,275  
Deferred tax assets 15,074   15,352   14,669   14,556  
Other assets 904   873   828   870  
Total non-current assets 123,354   121,125   118,656   116,104  
         
Current assets        
Inventories 32,711   33,620   32,659   32,589  
Trade and other receivables 24,603   24,856   22,683   22,586  
Income tax receivable 1,427   1,220   1,290   1,205  
Cash and cash equivalents 62,529   63,977   69,851   77,108  
Total current assets 121,270   123,673   126,483   133,488  
         
TOTAL ASSETS 244,624   244,798   245,139   249,592  
         
EQUITY AND LIABILITIES        
Equity attributable to the equity holders of the parent        
Share capital 1,224   1,176   1,176   1,224  
Share premium 16,077   16,122   16,122   16,187  
Accumulated surplus 89,878   90,977   93,171   93,004  
Other reserves (792 ) (1,409 ) (1,193 ) (1,688 )
Total equity 106,387   106,866   109,276   108,727  
         
Current liabilities        
Income tax payable 502   582   181   175  
Trade and other payables 22,923   22,572   20,893   25,028  
Provisions 75   75   75   75  
Total current liabilities 23,500   23,229   21,149   25,278  
         
Non-current liabilities        
Exchangeable senior note payable 95,316   95,245   95,462   96,491  
Other payables 582   640   698   735  
Deferred tax liabilities 18,839   18,818   18,554   18,361  
Total non-current liabilities 114,737   114,703   114,714   115,587  
         
TOTAL LIABILITIES 138,237   137,932   135,863   140,865  
         
TOTAL EQUITY AND LIABILITIES 244,624   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 Months Ended September 30, 2017 (unaudited)   Three Months Ended September 30, 2016 (unaudited)   Nine Months Ended September 30, 2017 (unaudited)   Nine Months Ended September 30, 2016 (unaudited)  
         
Cash and cash equivalents at beginning of period 63,977   84,920   77,109   101,953  
         
Operating cash flows before changes in working capital 3,672   5,164   9,679   12,950  
Changes in working capital 313   393   (2,262 ) (3,469 )
Cash generated from operations 3,985   5,557   7,417   9,481  
         
Net Interest and Income taxes (paid)/received 86   (171 ) 324   (263 )
         
Capital Expenditure & Financing (net) (3,727 ) (5,555 ) (10,559 ) (16,982 )
         
Free cash flow 344   (169 ) (2,818 ) (7,764 )
         
Share buyback (1,543 ) -   (6,472 ) (6,026 )
         
Payment of HIV-2 licence fee -   -   (1,112 ) (1,112 )
         
30 year Exchangeable Note interest payment -   -   (2,300 ) (2,300 )
         
Once-off items (249 ) -   (1,878 ) -  
         
Cash and cash equivalents at end of period 62,529   84,751   62,529   84,751  
         

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.com

Lytham Partners LLCJoe Diaz, Joe Dorame & Robert Blum602-889-9700

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