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Mon, October 26, 2009
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Wed, October 21, 2009 Trinity Biotech Plc: Trinity Biotech Announces Third Quarter 2009 Financial Results
DUBLIN, IRELAND--(Marketwire - October 21, 2009) - Trinity Biotech plc (
Total revenues for the quarter were $31.7 million. On a constant currency basis this compares to $34.5 million in quarter 3, 2008, and $32.8m in quarter 2, 2009, representing a decrease of 8.2% and 3.3% respectively. Point-of-Care revenues decreased by over 23% versus quarter 3, 2008, mainly due to a decision by the company not to ship HIV products to a major customer for credit related reasons. Clinical Laboratory revenues, fell by 5.6%, on a constant currency basis, when compared to quarter 3, 2008. However, when compared with quarter 2, 2009, Clinical Laboratory revenues have increased by 3.4%. This has been partly due to an increase in coagulation revenues this quarter, following a period of decline prior to the launch of Destiny Max.
Revenues for the three months by key product area were as follows: 2008 2009 2008 Quarter 3 Quarter 2 2009 Quarter 3 Adjusted* Adjusted* Quarter 3 ---------- ---------- ---------- ---------- US$'000 US$'000 US$'000 US$'000 ---------- ---------- ---------- ---------- Total Clinical Laboratory 30,388 29,450 26,903 27,814 ---------- ---------- ---------- ---------- Point-of-Care 5,194 5,090 5,908 3,891 ---------- ---------- ---------- ---------- Total 35,582 34,540 32,812 31,705 ---------- ---------- ---------- ---------- * Revenues for the third quarter of 2008 have been adjusted to reflect exchange rates prevailing in the third quarter of 2009
Gross profit for the quarter amounted to $14.3 million representing a gross margin of approximately 45%, which is an improvement of 1% over the same period in 2008. By excluding instruments service costs the gross margin rises to 49%.
Research and Development expenses amounted to $1.8m, representing a decrease of 3%. SG&A expenses have fallen by 26% from $11.8 million in the third quarter of 2008 to $8.7 million in the current quarter. As has been the case in previous quarters this year, the fall in SG&A expenses is due to cost base management, the impact of lower depreciation and amortization charges and more favourable exchange rates. The tax charge for the quarter was $0.4 million representing an effective tax rate of 11.2%, which is broadly in line with the rate for the year as a whole.
Operating profit for the quarter increased to $3.7 million representing an increase of over 85% compared to the same period last year. Net income for the quarter has increased to $3.1m compared with $1.3m in quarter 3, 2008, an increase of over 131%. Similarly EPS per share (ADR) has increased from 6.3 cent per share (ADR) to 14.6 cent per share (ADR) during the same period.
During the quarter, the Company generated more than $4.1 million of cash from operations. Following a repayment of $3.2 million during the quarter, the company has brought its bank debt to under $30 million.
Since quarter end, a U.S. court (Southern District of New York) has issued a Default Judgement ordering Mr. Tom Reidy to pay Trinity Biotech a total of US$266,000. This follows a legal action taken by the company in relation to the calculation of an earnout paid to Mr. Reidy as a former shareholder of Primus Corporation. The other shareholders of Primus, representing 60% of the shares, had previously settled with the company. Mr. Reidy, who held the remaining 40% shareholding at the time of Trinity's acquisition of Primus, was responsible for managing the Primus business during the earnout period. Trinity Biotech will now seek to enforce this Default Judgement and recover the money, which consists of US$201,000 in relation to the earnout calculation plus interest of $65,000.
Ronan O'Caoimh, CEO, commented, "The results this quarter show that we have continued to make strong progress throughout 2009. Our main focus for this year is to drive profits forward. EPS of 14.6 cent this quarter represents an increase of 131% over the equivalent period last year and brings the EPS for the year to date to 41 cent per share.
During this quarter, we achieved the key milestone of obtaining FDA approval for our new coagulation analyzer, Destiny Max. We have now commenced our formal launch of this state of the art instrument in the USA, the largest coagulation market in the world.
Whilst our quarter 3 Clinical Laboratory revenues have fallen by 5.6% year on year, it should be noted that compared to quarter 2, 2009 they have actually increased by 3.4%. This growth has been partly attributable to a 4.7% increase in our coagulation revenues. This improvement in coagulation revenues coupled with the US launch of Destiny Max reflects our belief that that we have largely arrested our decline in this area and that in 2010 we will commence growing the coagulation business.
The decrease in our of point-of-care revenues this quarter was principally due to a decision taken by the company not to supply HIV products to one of our major customers, as a result of credit issues. Notwithstanding this, our HIV business remains very strong and represents an area of major growth potential for the company. We remain very proud of the strong market positions that our Uni-gold products have achieved in the key markets of Africa and the USA."
Commenting on the results, Kevin Tansley, Chief Financial Officer, said "This represents the third successive quarter of strong earnings for the company. For the nine months to September 30, 2009 we have reported EPS of 41 cent per share (ADR), which is more than double that achieved in the equivalent period in 2008.
Quarter 2, 2009 was the first time that Trinity achieved profits of $3 million in a single quarter and we are very happy to have increased profits further this quarter."
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 blood coagulation disorders, 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 Three Three Months Months Nine Months Nine Months Ended Sept Ended Sept Ended Sept Ended Sept (US$000's except share 30, 2009 30, 2008 30, 2009 30, 2008 data) (unaudited) (unaudited) (unaudited) (unaudited) Revenues 31,705 35,582 95,113 106,130 Cost of sales (excluding service costs) (16,183) (18,090) (47,912) (53,363) ----------- ----------- ----------- ----------- Gross profit (excluding service costs) 15,522 17,492 47,201 52,767 Gross profit % (excluding service costs) 49.0% 49.2% 49.6% 49.7% ----------- ----------- ----------- ----------- Cost of sales - instrument servicing costs (1,251) (1,821) (3,877) (5,098) Gross profit (including service costs) 14,271 15,671 43,324 47,669 Gross profit % (including service costs) 45.0% 44.0% 45.6% 44.9% Other operating income 143 363 415 551 Research & development expenses (1,843) (1,899) (5,400) (5,683) Selling, general and administrative expenses (8,729) (11,819) (27,341) (35,703) Indirect share based payments (111) (302) (384) (728) ----------- ----------- ----------- ----------- Operating profit 3,731 2,014 10,614 6,106 Financial income - 16 4 54 Financial expenses (289) (478) (929) (1,705) ----------- ----------- ----------- ----------- Net financing costs (289) (462) (925) (1,651) ----------- ----------- ----------- ----------- Profit before tax 3,442 1,552 9,689 4,455 Income tax expense (385) (231) (1,123) (576) ----------- ----------- ----------- ----------- Profit for the period 3,057 1,321 8,566 3,879 Earnings per ADR (US cents) 14.6 6.3 41.0 19.2 Diluted earnings per ADR (US cents) 14.5 6.3 41.0 19.2 Weighted average no. of ADR's used in Computing earnings per ADR. 20,943,038 20,854,395 20,885,092 20,178,662
The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company's accounting policies but do not constitute an interim financial report as defined in IAS 34 (Interim Financial Reporting).
Trinity Biotech plc Consolidated Balance Sheets Sept 30, June 30, March 31, Dec 31, 2009 2009 2009 2008 US$ '000 US$ '000 US$ '000 US$ '000 (unaudited) (unaudited) (unaudited) (audited) ASSETS Non-current assets Property, plant and equipment 12,143 11,908 11,489 11,836 Goodwill and intangible assets 42,866 41,029 39,750 38,544 Deferred tax assets 2,926 3,099 2,879 3,051 Other assets 636 661 773 877 ----------- ----------- ----------- ----------- Total non-current assets 58,571 56,697 54,891 54,308 ----------- ----------- ----------- ----------- Current assets Inventories 41,254 41,667 40,984 42,317 Trade and other receivables 26,192 27,385 25,950 27,418 Derivative Financial Instruments 284 344 - - Income tax receivable 345 329 324 282 Cash and cash equivalents 3,697 4,791 2,589 5,184 ----------- ----------- ----------- ----------- Total current assets 71,772 74,516 69,847 75,201 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- TOTAL ASSETS 130,343 131,213 124,738 129,509 =========== =========== =========== =========== EQUITY AND LIABILITIES Equity attributable to the equity holders of the parent Share capital 1,079 1,072 1,070 1,070 Share premium 160,641 160,031 159,854 159,864 Accumulated deficit (90,522) (93,698) (96,881) (99,493) Translation reserve 199 (108) (1,109) (9) Other reserves 4,781 4,822 4,488 4,473 ----------- ----------- ----------- ----------- Total equity 76,178 72,119 67,422 65,905 ----------- ----------- ----------- ----------- Current liabilities Interest-bearing loans and borrowings 14,164 13,943 13,835 12,656 Income tax payable 64 35 54 5 Trade and other payables 16,907 19,279 18,677 22,969 Derivative Financial Instruments - - 13 27 Provisions 50 50 50 50 ----------- ----------- ----------- ----------- Total current liabilities 31,185 33,307 32,629 35,707 ----------- ----------- ----------- ----------- Non-current liabilities Interest-bearing loans and borrowings 17,683 20,609 20,251 23,465 Other payables 59 59 59 59 Deferred tax liabilities 5,238 5,119 4,377 4,373 ----------- ----------- ----------- ----------- Total non-current liabilities 22,980 25,787 24,687 27,897 ----------- ----------- ----------- ----------- TOTAL LIABILITIES 54,165 59,094 57,316 63,604 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- TOTAL EQUITY AND LIABILITIES 130,343 131,213 124,738 129,509 =========== =========== =========== ===========
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 Three Months Three Months Ended Ended Sept 30, Sept 30, 2009 2008 US$ '000 US$ '000 (unaudited) (unaudited) Cash and cash equivalents at beginning of period 4,791 6,246 Operating cash flows before changes in working capital 4,701 3,951 Changes in Working Capital (584) (1,862) ----------- ----------- Cash generated from operations 4,117 2,089 Net Interest and Income taxes paid (396) (586) Capital Expenditure (Net) (1,600) (3,176) Repayment of bank debt (3,215) (1,071) ----------- ----------- Cash and cash equivalents at end of period 3,697 3,502 ----------- -----------
