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Trinity Biotech Announces Quarter 2 Financial Results EPS of 20 Cents Per ADR -- an Increase of 11%

Date : 07/12/2012 @ 7:59AM
Source : GlobeNewswire Inc.
Stock : Trinity Biotech Plc ADS Each Representing 4 A Ordinary Shares (MM) (TRIB)
Quote : 23.16  -0.1 (-0.43%) @ 8:10PM
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Trinity Biotech Announces Quarter 2 Financial Results EPS of 20 Cents Per ADR -- an Increase of 11%

Trinity Biotech (NASDAQ:TRIB)
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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, 2012.

Quarter 2 Results                                                                                     

Total revenues for Q2, 2012 were $20.8m which compares to $19.5m in Q2, 2011, an increase of 7%. However, if exchange rate movements are taken into account, the underlying organic growth in revenues would have been 8.5% for the quarter.

Point-Of-Care revenues for Q2, 2012 increased by 6.1% when compared to Q2, 2011. This increase was mainly attributable to increased HIV sales in Africa and in particular in Eastern Africa where the Company's Unigold product has improved its position in some of the national testing algorithms.

Clinical Laboratory revenues increased from $15.3m to $16.4m, which represents an increase of 7.2% compared to Q2, 2011. This growth included additional Premier revenues, of which sales in the quarter increased to 52 instruments, compared with 31 in Q1, 2012. Other growth areas included increased sales of infectious diseases products in China and the USA.

Revenues for Q2, 2012 by key product area were as follows:

  2011 Quarter 2 2012 Quarter 2   Increase
  US$'000 US$'000 %
Point-of-Care 4,157 4,410 6.1%
Clinical Laboratory 15,298 16,399 7.2%
Total 19,455 20,809 7.0%

Gross profit for Q2, 2012 amounted to $10.7m representing a gross margin of 51.6% which is broadly in line with the 51.4% achieved in Q2, 2011. The impact of lower margin instrument sales has been offset by higher margin point-of-care and Lyme sales.

Both Research and Development expenses and Selling, General and Administrative (SG&A) expenses have remained in line with Q2, 2011 at $0.8m and $5.2m respectively.

Meanwhile, Operating Profit has increased by 10.5% to $4.3m for the quarter and this is reflected in an increase in operating margin from 20.0% to 20.6%. This reflects the on-going improvements being achieved in profitability as the Company continues to grow revenues whilst holding the cost base steady. 

Net financial income was almost $0.6m and is broadly consistent with the equivalent period last year.

Profit After Tax increased by over 11% to $4.3m, from $3.9m in the comparative period last year. EPS for Q2, 2012 grew from 18.1 US cents to 20 US cents, representing an increase of over 10.5% . The tax charge for Q2, 2012 was $0.6m which represents an effective tax rate of approximately 12%.

Free Cash Flows for the quarter were $2.1m, which is in line with expectations, following the inclusion of the first full quarter of Fiomi, the Company's new subsidiary for the development of cardiac assays. The Company paid a dividend of $3.2m during the quarter with other significant cash movements including the receipt of $11.25m from Stago, being the final tranche of deferred consideration, and share repurchases of $2.0m. This has resulted in an increase in cash balances by $8.1m to $73.6m at the end of the quarter.

Recent Developments

  • The Company continued to see strong growth in sales of its new Premier instrument, growing from 31 instruments in quarter 1, 2012 to 52 instruments this quarter.  We are currently awaiting registration in China and Brazil and also will soon be launching the instrument in South East Asia followed by Australia/New Zealand.  
  • In June 2012, the company paid a dividend of 15 US cents per ADR, which represents an increase of 50% compared with 10 US cents per ADR paid in 2011.  
  • The Company continued its share buyback program during the quarter, repurchasing over 175,000 ADRs at a cost of approximately $2m, thus representing an average cost of $11.49 per ADR. This brings the total number of ADRs repurchased since the program began to over 880,000 at a cost of approximately $9.1m.  
  • In April, 2012 the company received the final deferred consideration payment of $11.25m from Stago in relation to the 2010 divestiture of the Coagulation product line. 

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said "This quarter we are building on our track record of growing profitability.  With profits of $4.3m we have achieved a quarterly EPS of 20 cents for the first time in the Company's history. This represents an increase of 11% over the equivalent quarter last year and has been achieved through a combination of organic revenue growth and strong operating margins. We also continue to generate very healthy free cash flows and this has contributed to bringing our cash balances to approximately $74m." 

Ronan O'Caoimh, CEO, stated "the highlight for Trinity this quarter was the continued growth in Premier sales to 52 instruments. This brings the total number of instruments sold for the year to date to 83 and over 100 since its launch in late 2011. We are particularly pleased by the range of jurisdictions where the instrument has gained traction. In addition to the principal markets of the USA and Europe, we have also made sales in Turkey and a number of countries in South America this quarter. Further growth will be achieved by growing these markets and through sales in China and Brazil once product registration has been obtained and also following the roll-out of the instrument in South East Asia and Australia/New Zealand. However, this quarter's growth has not just been confined to Premier. We have also continued to grow our HIV business, particularly in Eastern Africa. At the same time, we have achieved growth of infectious diseases products in our key target market of China and in the USA."  

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.

The Trinity Biotech plc logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10602

Trinity Biotech plc Consolidated Income Statements          
           
(US$000's except share data)   Three Months Ended June 30, 2012 (unaudited) Three Months Ended June 30, 2011 (unaudited) Six Months Ended June 30, 2012 (unaudited) Six Months Ended June 30, 2011 (unaudited)
           
Revenues   20,809 19,455 40,835 38,109
           
Cost of sales   (10,071) (9,451) (19,754) (18,548)
           
Gross profit   10,738 10,004 21,081 19,561
Gross profit %   51.6% 51.4% 51.6% 51.3%
           
Other operating income   114 233 289 530
           
Research & development expenses   (753) (800) (1,598) (1,487)
Selling, general and administrative expenses   (5,240) (5,217) (10,444) (10,263)
Indirect share based payments   (563) (332) (900) (754)
           
Operating profit   4,296 3,888 8,428 7,587
           
Financial income   605 631 1,151 1,273
Financial expenses   (35) (3) (36) (7)
Net financing income   570 628 1,115 1,266
           
Profit before tax   4,866 4,516 9,543 8,853
           
Income tax expense   (564) (654) (1,131) (1,239)
Profit for the period   4,302 3,862 8,412 7,614
           
Earnings per ADR (US cents)   20.0 18.1 39.4 35.6
Diluted earnings per ADR (US cents)   19.2 17.3 37.7 34.2
Weighted average no. of ADRs used in computing basic earnings per ADR     21,465,047   21,352,012   21,341,365   21,369,919
Weighted average no. of ADRs used in computing diluted earnings per ADR     22,439,332   22,287,860   22,307,429   22,258,757
           

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, 2012 US$ '000 (unaudited) March 31, 2012 US$ '000 (unaudited) Dec 31, 2011 US$ '000 (audited)
ASSETS      
Non-current assets      
Property, plant and equipment 8,242 7,823 7,626
Goodwill and intangible assets 62,276 59,832 45,390
Deferred tax assets 2,986 3,034 2,977
Other assets 836 528 493
Total non-current assets 74,340 71,217 56,486
       
Current assets      
Inventories 20,794 19,301 19,838
Trade and other receivables 14,924 25,677 23,973
Income tax receivable 290 271 117
Cash and cash equivalents 73,605 65,499 71,085
Total current assets 109,613 110,748 115,013
       
TOTAL ASSETS 183,953 181,965 171,499
       
EQUITY AND LIABILITIES      
Equity attributable to the equity holders of the parent      
Share capital 1,117 1,109 1,106
Share premium 3,740 3,086 2,736
Accumulated surplus 150,984 151,082 143,482
Other reserves 3,837 4,021 4,008
Total equity 159,678 159,298 151,332
       
Current liabilities      
Interest-bearing loans and borrowings 30 70 108
Income tax payable 1,704 1,879 1,582
Trade and other payables 11,766 10,104 11,589
Provisions 50 50 50
Total current liabilities 13,550 12,103 13,329
       
Non-current liabilities      
Other payables 3,269 3,273 10
Deferred tax liabilities 7,456 7,291 6,828
Total non-current liabilities 10,725 10,564 6,838
       
TOTAL LIABILITIES 24,275 22,667 20,167
       
TOTAL EQUITY AND LIABILITIES 183,953 181,965 171,499

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 June 30, 2012 (unaudited) Three Months Ended June 30, 2011 (unaudited) Six Months Ended June 30, 2012 (unaudited) Six Months Ended June 30, 2011 (unaudited)
         
Cash and cash equivalents at beginning of period 65,499 59,818 71,085 58,002
         
Operating cash flows before changes in working capital 5,610 5,165 10,725 9,938
Changes in working capital (770) (876) (2,591) 104
Cash generated from operations 4,840 4,289 8,134 10,042
         
Net Interest and Income taxes received 26 808 501 1,046
         
Capital Expenditure & Financing (net) (2,770) (2,094) (5,157) (4,199)
         
Free cash flow 2,096 3,003 3,478 6,889
         
Proceeds from sale of Coagulation product line 11,250 11,250 11,250 11,250
         
Cash paid to acquire Phoenix Bio-tech -- (500) (333) (1,500)
         
Cash paid to acquire Fiomi Diagnostics -- -- (5,624) --
         
Dividend payment (3,223) (2,149) (3,223) (2,149)
         
Repurchase of own company shares (2,017) -- (3,028) (1,070)
         
Cash and cash equivalents at end of period 73,605 71,422 73,605 71,422
         

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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