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Trinity Biotech Announces Quarter 3 Financial Results

Date : 10/20/2011 @ 7:00AM
Source : GlobeNewswire Inc.
Stock : Trinity Biotech Plc ADS Each Representing 4 A Ordinary Shares (MM) (TRIB)
Quote : 17.5  -0.29 (-1.63%) @ 8:10PM
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Trinity Biotech Announces Quarter 3 Financial Results

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 September 30, 2011.

Quarter 3 Results

Total revenues for Q3, 2011 were $19.8m which compares to $18.7m in Q3, 2010, representing an increase of 6%.

Point-of-care revenues for Q3, 2011 decreased by 6% when compared to Q3, 2010. This was attributable to lower HIV sales in Africa, mainly due to timing factors. Consequently, it is expected that this will be offset by correspondingly increased revenues in Q4, 2011.

Clinical Laboratory revenues increased from $14.5m to $15.9m, which represents an increase of 9% compared to Q3, 2010. However, excluding Fitzgerald revenues, which fell by 6% in the quarter, the increase in our core diabetes/infectious diseases revenues was 13%.

Revenues for Q3, 2011 by key product area were as follows:

       
  2010 Quarter 3 2011 Quarter 3 Increase/ Decrease
  US$'000 US$'000 %
Point-of-Care 4,202 3,941 -6%
       
Clinical Laboratory 14,547 15,885 9%
       
Total 18,749 19,826 6%

 Gross profit for Q3, 2011 amounted to $10.3m, representing a gross margin of 51.7% which compares favourably to the gross margin of 50.6% for the same period in 2010. This continues the trend of improving gross margins since the divestiture of the coagulation product line in Q2, 2010. 

Research and Development expenses increased from $0.8m to $0.9m, an increase of 13.1%. Meanwhile, Selling, General and Administrative (SG&A) expenses have decreased by 8.5% to $5.2m compared to Q3, 2010. This is due to the elimination of costs which were initially retained during the transition period following the divestiture of the coagulation product line.

Operating profit for Q3, 2011 was $4.1m, and represents an increase of over 25% when compared with Q3, 2010. Operating margin at 20.7% remains above our target of 20% and represents a significant improvement compared to the 17.4% reported in Q3, 2010. 

Net financial income for Q3, 2011 was $0.5m which compares to net financial income of $0.4m in Q3, 2010. This improvement is attributable to a lower interest expense due to the repayment of some minor elements of lease and other financing, in addition to higher interest income being earned on increased cash balances.  The tax charge for Q3, 2011 was $0.7m which represents an effective tax rate of 15.3%. This compares with an effective rate of 6.6% in Q3, 2010, which was lower due to the utilisation of tax losses forward. 

Profit After Tax was $3.9m which is an increase of 12.2% over Q3, 2010. Similarly, EPS for Q3, 2011 increased by 12.1% from 16.5 cents to 18.5 cents.

Free Cash Flows generated during the quarter were slightly over $3m. This in turn was offset by $3m spent on share repurchases and the payment of a scheduled deferred consideration payment of $0.3m in relation to the acquisition of Phoenix Biotech. The net result is that our cash position has remained broadly static at $71.1m.

Share buyback

During the quarter, we repurchased 291,223 ADRs at an average price of $10.28 as part of our share buyback program. The total amount spent on repurchases during the quarter was just over $3m.   

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said "We are very pleased with our results this quarter as we are showing improvements in all of our key indicators. Revenues have grown by 6% and profits and EPS are each up by over 12%.  This increase in profitability was achieved notwithstanding the increase of over $500,000 in the tax charge this quarter when compared to the particularly low effective tax rate in quarter 3, 2010.  Meanwhile, our gross margin has increased to 51.7% and our operating margin has continued to improve, reaching a new high of 20.7%. We continue to generate strong cash flows, which in this quarter were used to fund our on-going share buyback program."

Ronan O'Caoimh, CEO, stated "We continue to deliver on our key objectives of simultaneously growing revenues and profitability. We are particularly pleased with the 13% organic revenue growth in our key infectious diseases and diabetes business. This was achieved before the impact of our new A1c instrument, Premier, which has just been launched.  Meanwhile, we are making excellent progress on the development of our new point-of-care products, the first of which will be submitted to the FDA for approval later this year."

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.

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 Sept 30, 2011 Three Months Ended Sept 30, 2010 Nine Months Ended Sept 30, 2011 Nine Months Ended Sept 30, 2010
  (unaudited) (unaudited) (unaudited) (unaudited)
         
Revenues 19,826 18,749 57,935 70,388
         
Cost of sales   (9,571)  (9,262)  (28,119)  (36,215)
         
Gross profit  10,255 9,487 29,816 34,173
Gross profit %  51.7% 50.6% 51.5% 48.5%
         
Other operating income  191  651  721  1,234
         
Research & development expenses  (857)  (758)  (2,344)  (3,750)
Selling, general and administrative expenses  (5,237)  (5,721)  (15,500)  (20,426)
Indirect share based payments  (252)  (392)  (1,006)  (779)
         
Operating profit   4,100  3,267  11,687  10,452
         
Non-recurring items  --   (587)  --   46,474
         
Financial income  549  514  1,822  792
Financial expenses  (3)  (69)  (10)  (426)
Net financial income  546  445  1,812  366
         
Profit before tax   4,646  3,125  13,499  57,292
         
Income tax expense on operating activities   (711)  (206)  (1,950)  (888)
Income tax credit on non-recurring items  --   --   --   354
Profit for the period   3,935  2,919  11,549  56,758
Profit for the period (excluding non-recurring items)  3,935  3,506  11,549  9,930
         
Earnings per ADR (US cents)  18.5 13.8 54.1 268.6
Earnings per ADR (US cents) – excluding non-recurring items 18.5 16.5 54.1 47.0
         
Diluted earnings per ADR (US cents) 17.7 13.5 51.8 263.9
Diluted earnings per ADR (US cents) – excluding non-recurring items 17.7 16.2 51.8 46.2
         
Weighted average no. of ADRs used in computing basic earnings per ADR 21,297,539 21,183,785 21,345,527 21,127,858
         
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, 2011 US$ '000 (unaudited) June 30, 2011 US$ '000 (unaudited) March 31, 2011 US$ '000 (unaudited) Dec 31, 2010 US$ '000 (audited)
ASSETS        
Non-current assets        
Property, plant and equipment 7,603 7,260 6,630 5,999
Goodwill and intangible assets 43,515 41,799 40,267 37,248
Deferred tax assets 3,950 4,158 4,385 4,680
Other assets 509 534 11,729 11,623
Total non-current assets 55,577 53,751 63,011 59,550
         
Current assets        
Inventories 19,478 18,971 18,636 17,576
Trade and other receivables 23,172 23,686 24,078 25,529
Income tax receivable 156 199 91 217
Cash and cash equivalents 71,128 71,422 59,818 58,002
Total current assets 113,934 114,278 102,623 101,324
         
TOTAL ASSETS 169,511 168,029 165,634 160,874
         
EQUITY AND LIABILITIES        
Equity attributable to the equity holders of the parent        
Share capital 1,103 1,097 1,094 1,092
Share premium 2,683 2,055 1,743 161,599
Accumulated surplus/(deficit) 141,177 139,928 137,705 (25,412)
Other reserves 4,008 4,008 4,008 4,008
Total equity 148,971 147,088 144,550 141,287
         
Current liabilities        
Interest-bearing loans and borrowings 152 176 174 162
Income tax payable 812 770 890 597
Trade and other payables 11,411 12,153 12,680 11,447
Provisions 50 50 50 50
Total current liabilities 12,425 13,149 13,794 12,256
         
Non-current liabilities        
Interest-bearing loans and borrowings -- 34 74 111
Other payables 16 62 52 30
Deferred tax liabilities 8,099 7,696 7,164 7,190
Total non-current liabilities 8,115 7,792 7,290 7,331
         
TOTAL LIABILITIES 20,540 20,941 21,084 19,587
         
TOTAL EQUITY AND LIABILITIES 169,511 168,029 165,634 160,874
 
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 Sept 30, 2011 Three Months Ended Sept 30, 2010 Nine Months Ended Sept 30, 2011 Nine Months Ended Sept 30, 2010
  (unaudited) (unaudited) (unaudited) (unaudited)
         
         
Cash and cash equivalents at beginning of period  71,422  50,042  58,002  6,078
         
Operating cash flows before changes in working capital  5,029  5,260  14,967  14,586
Changes in working capital  (335)  (332)  (231)  1,357
Cash generated from operations  4,694  4,928  14,736  15,943
         
Net Interest and Income taxes received/(paid)  417  347  1,463  (230)
         
Capital Expenditure & Financing (net)  (2,069)  (1,515)  (6,268)  (4,950)
         
Free cash flow  3,042  3,760  9,931  10,763
         
Proceeds from sale of Coagulation product line  --   --   11,250  66,517
         
Cash paid to acquire Phoenix Bio-tech  (333)  --   (1,833)  -- 
         
Repurchase of own company shares  (3,003)  --   (4,073)  -- 
         
Dividend Payment  --   --   (2,149)  -- 
         
Repayment of bank debt  --   --   --   (29,556)
         
Cash and cash equivalents at end of period  71,128  53,802  71,128  53,802
         
         
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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