Revenues Up 23%, Operating Profit Up
16%
Increase in Dividend to 22
Cents
DUBLIN, April 29, 2014 (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, 2014.
Quarter 1 Results
Total revenues for Q1, 2014 were $25.0m which compares to $20.3m
in Q1, 2013, an increase of 23%.
Point-Of-Care revenues for Q1, 2014 decreased by 5% when
compared to Q1, 2013. HIV sales in the USA were slightly up
compared with the comparative period, thus arresting the decline in
recent quarters due to the lower availability of federal funding.
This reflects the initial impact of Trinity's recent FDA approval
for a claim for HIV-2 on its Uni-gold product. Meanwhile, sales in
Africa were lower, reflecting the fact that African sales tend to
fluctuate significantly quarter on quarter.
Clinical Laboratory revenues increased from $15.6m to $20.5m,
which represents an increase of nearly 32% compared to Q1, 2013.
The main factors contributing to this increase have been the
continued growth in Premier instrument and related reagent revenues
plus the impact of the Immco and blood bank screening acquisitions
which were undertaken during 2013, though this was partly offset by
lower Fitzgerald revenues.
Revenues for Q1, 2014 by key product area were as follows:
|
|
2013 |
2014 |
Increase/ |
|
Quarter 1 |
Quarter 1 |
(decrease) |
|
US$'000 |
US$'000 |
% |
Point-of-Care |
4,765 |
4,506 |
-5.4% |
Clinical Laboratory |
15,563 |
20,519 |
31.8% |
Total |
20,328 |
25,025 |
23.1% |
Gross profit for Q1, 2014 amounted to $12.2m, which compares to
$10.2m for the same period in 2013. Gross margin for the quarter
was 48.6%. This represents a reduction from 50% in Q1, 2013, which
was mainly due to the impact of higher Premier instrument sales
this quarter.
Research and Development expenses increased from $0.9m to $1.0m,
whilst Selling, General and Administrative (SG&A) expenses also
increased from $5.0m in Q1, 2013 to $6.3m this quarter. These
increases were mainly due to the impact of the acquisitions
undertaken in 2013 and also initial sales and marketing costs in
relation to launching the first test on the Meritas platform.
Operating profit for the quarter was $4.5m which represents an
increase of 16% compared to Q1, 2013. Operating margin for the
quarter was 18%. Profit before tax for the quarter increased from
$4.3m to $4.5m, whilst profit after tax increased by 6% to
$4.4m. Meanwhile, EPS for Q1, 2014 increased from 19.3 cents
to 19.6 cents. EBITDA and before share option expense for the
quarter increased from $5.2m to $6m – an increase of 16%.
The tax charge for the quarter was $0.1m which represents an
effective tax rate of 2.5%. This unusually low rate has been
driven by the availability of R&D tax credits in both Ireland
and North America, in addition to the normal low rate of
corporation tax rate in Ireland.
Notwithstanding that Q1 tends to be our weakest quarter due to
seasonal factors (i.e. very low lyme sales), 23% growth in revenues
represented a very strong performance. However, overall
profitability this quarter was impacted by a number of factors:
- Higher instrument sales:- This quarter saw the highest number
of Premier instruments shipped in a single quarter – instrument
sales on average earn a lower gross margin.
- Acquisitions undertaken in 2013:- Whilst Immco was profitable
during the period, the operating losses associated with the blood
banking acquisition have more than offset this. These losses are
due to the carrying costs associated with two manufacturing plants
in the UK and had been anticipated at the time of acquisition.
Manufacturing is currently being transferred from these two plants
to Trinity's existing plants in Bray, Ireland and Jamestown, New
York. Following the completion of the transfer of
manufacturing in early Q3, 2014 the two plants in the UK will be
closed, resulting in considerable cost savings.
- Meritas costs:- This quarter we are seeing the initial costs
associated with launching our Meritas product range. We are
currently in the process of building a sales and technical
organisation to support this product range with a consequent
increase in costs. To date we have recruited a number of sales and
technical specialists and have incurred significant branding and
marketing costs. Given that CE marking for the first Meritas
product, Troponin I, has only been received recently this has
created a temporary imbalance as these costs are not yet being
offset by associated revenues. As revenues increase in the quarters
ahead, this imbalance will be addressed resulting in improved
profitability.
Other Developments
Meritas (Cardiac)
During the quarter, CE marking was obtained for the company's
new high sensitivity Troponin I test which is being marketed under
the Meritas name. As well as representing EU approval for the
product, the associated trials demonstrated that it is the only
point-of-care Troponin test capable of meeting all of the
guidelines stipulated by the world's leading cardiac organisations
for diagnosis of heart attacks. Following the granting of CE
marking, clinical trials for FDA approval for the Troponin test
commenced. These trials, which are being carried out at six
trial sites in the USA, are progressing well and we remain on
target to submit the results to the FDA in late 2014. The
product has already been launched in Europe where distributors have
been appointed in each of the main markets with the exception of
Scandinavia and the UK where Trinity will be selling the product
using its own direct sales forces.
During the quarter, significant progress was also made with
regard to finalising the development of the company's BNP test for
heart failure on the same platform. CE marking for this
product is expected to be received by the end of Q2, 2014. This
will be followed soon thereafter by the commencement of FDA
clinical trials with submission expected in Q4, 2014 and FDA
approval anticipated in the first half of 2015.
Meanwhile, development has commenced on the third test on this
platform, D-dimer. This product will be launched in 2016 and will
be followed by a range of other tests suitable for the
point-of-care/emergency room environment.
Premier
During the quarter the Company sold 101 Premier instruments,
which compares to 67 instruments sold in Q1, 2013 – an increase of
51%. This represents the highest number of instruments sold in a
single quarter since the product was launched and included the
first 21 instruments to be sold in Brazil following its approval by
the Brazilian regulatory authority, Anvisa. We were very pleased
with such strong instrument sales so soon after approval and also
with the very positive sales pipeline that is already in place for
future quarters in Brazil. In addition, a significant number of
instruments were sold in China where the instrument continues to
gain traction. In 2014, the Company is targeting worldwide
sales in excess of 460 Premier instruments.
Annual Dividend
The company is proposing a dividend of 22 cents per ADR,
representing an increase of 10% on the dividend paid in 2013. The
payment of this dividend is subject to shareholder approval, which
will be sought at the company's forthcoming AGM to be held on June
6, 2014. Subject to this approval being granted, the record date
will be June 10, 2014 and payment will follow approximately 3 weeks
later.
Comments
Commenting on the results, Kevin Tansley, Chief Financial
Officer, said "Operating profit increased by 16% this quarter,
whilst overall profit increased from $4.2m to over $4.4m resulting
in an EPS of 19.6 cents. These results were achieved
notwithstanding the additional operating costs associated with the
blood banking acquisition prior to the transfer of manufacturing
operations from the UK to other existing Trinity plants in early
quarter 3, 2014. In addition, we have started to incur costs
associated with launching the first of our Meritas products,
Troponin, though given the recent launch date these have yet to be
matched by equivalent revenues. With the closure of the UK
manufacturing operations and increased revenues, profitability can
be expected to improve further as the year progresses."
Ronan O'Caoimh, CEO, stated that "During quarter 1 we achieved a
key milestone with the CE marking of our new high sensitivity
point-of-care Troponin product. We are also very happy to
announce that we have commenced FDA trials for this product at six
trial sites located in the USA. To date, these trials have
been progressing well and we are on target to file our submission
with the FDA late in 2014. This will soon be followed by a similar
submission for our BNP test which is nearing completion and which
will commence its CE marking trials shortly.
This quarter was very successful for sales of our diabetes
analyzer, Premier. With 101 instruments sold this quarter,
this represents the highest number of these instruments sold in any
quarter since its launch and is a 51% increase over the same period
last year. We are delighted that our direct sales force in
Brazil sold 21 Premier instruments this quarter, immediately
following registration. With over 12m diabetics, Brazil now
has the fourth highest number of sufferers of diabetes in the
world. Consequently, we have identified Brazil as a key market
for the Premier instrument and one in which we expect to deliver
significant growth going forward. We have also commenced the
registration process for our infectious diseases product range in
Brazil, approval for which is expected to be received in 2015.
Finally, we are proposing an annual dividend of 22 cents this
year. This represents an increase of 10% over last
year. This is just the fourth year of our dividend program and
we have already established a strong track record of dividend
growth."
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$000's except share data) |
Three Months |
Three Months |
|
Ended |
Ended |
|
March 31, |
March 31, |
|
2014 |
2013 |
|
(unaudited) |
(unaudited) |
|
|
|
Revenues |
25,025 |
20,328 |
|
|
|
Cost of sales |
(12,864) |
(10,161) |
|
|
|
Gross profit |
12,161 |
10,167 |
Gross profit % |
48.6% |
50.0% |
|
|
|
Other operating income |
149 |
110 |
|
|
|
Research & development expenses |
(1,037) |
(855) |
Selling, general and administrative
expenses |
(6,314) |
(5,033) |
Indirect share based payments |
(455) |
(498) |
|
|
|
Operating profit |
4,504 |
3,891 |
|
|
|
Financial income |
43 |
477 |
Financial expenses |
(20) |
(26) |
Net financing income |
23 |
451 |
|
|
|
Profit before tax |
4,527 |
4,342 |
|
|
|
Income tax expense |
(114) |
(174) |
|
|
|
Profit for the period |
4,413 |
4,168 |
|
|
|
Earnings per ADR (US cents) |
19.6 |
19.3 |
|
|
|
Diluted earnings per ADR (US cents) |
18.2 |
18.3 |
|
|
|
Weighted average no. of ADRs used in
computing basic earnings per ADR |
22,465,202 |
21,631,713 |
Weighted average no. of ADRs used in
computing diluted earnings per ADR |
24,209,680 |
22,809,958 |
|
|
|
The above financial statements
have been prepared in accordance with the principles of
International Financial Reporting Standards and the Company's
accounting policies but do not constitute an interim financial
report as defined in IAS 34 (Interim Financial Reporting). |
|
Trinity Biotech
plc |
Consolidated Balance
Sheets |
|
|
|
|
March 31, |
Dec 31, |
|
2014 |
2013 |
|
US$ '000 |
US$ '000 |
|
(unaudited) |
(audited) |
ASSETS |
|
|
Non-current assets |
|
|
Property, plant and equipment |
13,841 |
12,991 |
Goodwill and intangible assets |
133,881 |
128,547 |
Deferred tax assets |
7,570 |
7,044 |
Other assets |
1,131 |
1,162 |
Total non-current
assets |
156,423 |
149,744 |
|
|
|
Current assets |
|
|
Inventories |
30,864 |
29,670 |
Trade and other receivables |
24,130 |
24,268 |
Income tax receivable |
493 |
487 |
Cash and cash equivalents |
17,008 |
22,317 |
Total current assets |
72,495 |
76,742 |
|
|
|
TOTAL ASSETS |
228,918 |
226,486 |
|
|
|
EQUITY AND LIABILITIES |
|
|
Equity attributable to the equity
holders of the parent |
|
|
Share capital |
1,187 |
1,170 |
Share premium |
9,731 |
8,842 |
Accumulated surplus |
174,023 |
168,670 |
Other reserves |
4,073 |
4,329 |
Total equity |
189,014 |
183,011 |
|
|
|
Current liabilities |
|
|
Income tax payable |
998 |
770 |
Trade and other payables |
15,679 |
20,131 |
Provisions |
75 |
75 |
Total current
liabilities |
16,752 |
20,976 |
|
|
|
Non-current liabilities |
|
|
Other payables |
4,634 |
4,596 |
Deferred tax liabilities |
18,518 |
17,903 |
Total non-current
liabilities |
23,152 |
22,499 |
|
|
|
TOTAL LIABILITIES |
39,904 |
43,475 |
|
|
|
TOTAL EQUITY AND
LIABILITIES |
228,918 |
226,486 |
|
|
|
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 |
Three Months |
|
Ended |
Ended |
|
March 31, |
March 31, |
|
2014 |
2013 |
|
(unaudited) |
(unaudited) |
|
|
|
Cash and cash equivalents at
beginning of period |
22,317 |
74,947 |
|
|
|
Operating cash flows before changes in
working capital |
4,993 |
5,177 |
|
|
|
Changes in working capital |
(4,212) |
(2,551) |
|
|
|
Cash generated from operations |
781 |
2,626 |
|
|
|
Net Interest and Income taxes received |
2 |
432 |
|
|
|
Capital Expenditure & Financing
(net) |
(5,042) |
(4,910) |
|
|
|
Free cash flow |
(4,259) |
(1,852) |
|
|
|
Deferred consideration |
(1,050) |
-- |
|
|
|
Cash and cash equivalents at end of
period |
17,008 |
73,095 |
|
|
|
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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