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 fiscal
year 2015 and the quarter ended December 31, 2015. The Company also
announced that it is suspending its annual dividend and initiating
a share buyback program.
Fiscal Year 2015 Results
Total revenues for fiscal year 2015 were $100.2m
versus $104.9m in 2014, a decrease of 4.5% year on year. This
was due to the impact of the strengthening US dollar on the
Company’s foreign currency denominated revenues. Other factors
included lower Lyme sales due to weather related factors and
unusually low HIV sales in Q2. These were partly offset by
underlying growth in Premier and Immco revenues for the year.
|
|
|
|
|
Full Year2014 |
Full Year2015 |
Full Year2015 vs
2014 |
|
US$’000 |
US$’000 |
% |
Point-of-Care |
20,036 |
18,810 |
|
(6.1 |
%) |
|
|
|
|
Clinical Laboratory |
84,835 |
81,385 |
|
(4.1 |
%) |
|
|
|
|
Total |
104,871 |
100,195 |
|
(4.5 |
%) |
|
|
|
|
|
|
Point-of-care revenues decreased from $20.0m in
2014 to $18.8m in 2015, which represents a decrease of 6.1%. This
was due to lower HIV sales in Africa in Q2, due to unusual ordering
patterns. These revenues immediately rebounded in Q3 and Q4
to normal levels.
Meanwhile, Clinical Laboratory revenues were
$81.4m, a decrease of 4.1% versus 2014. The impact of the
abovementioned strengthening of the dollar was largely confined to
Clinical Laboratory revenues. In particular, the weakness of the
Euro, Brazilian Real, Canadian dollar and Sterling, all of which
represent significant currencies in which the Company invoices
sales, resulted in a reduction in our US dollar denominated
revenues. This was accentuated by weakness in the currencies
of other countries such as Turkey, Russia and a number of South
American countries where the Company invoices in US dollars. In
such countries the dollar’s strength served to erode our
competitiveness, which had a detrimental effect on our
revenues.
The other key financial results for 2015 were as
follows:
- Operating profit for the year was $13.4m which represents an
operating margin of 13.4%.
- Profit after tax for the year was $21.8m though this includes
non-cash financial income of $12.5m recognised in relation to the
Company’s convertible loan notes. Excluding this, profit after tax
would have been $9.3m compared with $17.2m in 2014.
- Basic EPS for the year was 94.1 cents (40.2 cents excluding the
impact of non-cash financial income) versus 75.7 cents in
2014.
- Diluted EPS was 46.2 cents compared to 72.6 cents in 2014.
The effective tax charge for the year (which
excludes the impact of non-cash financial income) was 10.4%. This
low effective rate of tax is due to the competitive corporation tax
rate in Ireland and the availability of research and development
tax credits in a number of jurisdictions.
EBITDA before share option expense for the year
was $20.7m.
Quarter 4 Results
Total revenues for Q4, 2015 were $24.9m which
compares to $26.7m in Q4, 2014, a decrease of 6.5%.
|
|
|
|
|
2014Quarter 4 |
2015Quarter 4 |
Increase/(decrease) |
|
US$’000 |
US$’000 |
% |
Point-of-Care |
5,451 |
5,436 |
|
(0.3 |
%) |
Clinical Laboratory |
21,229 |
19,501 |
|
(8.1 |
%) |
Total |
26,680 |
24,937 |
|
(6.5 |
%) |
|
|
|
|
|
|
Point-of-Care revenues for Q4, 2015 were broadly
flat compared to Q4, 2014.
Clinical Laboratory revenues decreased from
$21.2m to $19.5m, a decrease of 8.1% compared to Q4, 2014, a
decrease which is largely due to the impact of exchange rate
movements.
Gross margins for the quarter were 43.2%, and
this is consistent with Q4 having the lowest gross margin in the
year, due to seasonality of certain products. This is lower than
the gross margin noted in Q4, 2014 of 47.5%, largely reflecting the
impact of foreign currency movements.
Research and Development expenses were
$1.5m. Selling, General and Administrative (SG&A)
expenses decreased from $7.2m to $6.0m also partly due to foreign
currency movements.
The combination of lower revenues and gross
margins resulted in a reduction in operating profit from $4.3m to
$3.1m. Meanwhile, profit after tax for the quarter was $2.8m, which
represents an EPS for the quarter of 12.1 cents or 10.5 cents on a
fully diluted basis. EBITDA before share option expense for the
quarter was $4.8m.
Cardiac Update
In December, 2015 we submitted our 510(k)
application for our high sensitivity cardiac Troponin-I assay and
Meritas Point-of-Care Analyzer to the FDA. The application was
supported by three clinical studies:
- determination of the 99th percentile Upper Reference
Limit;
- point-of-care precision performance; and
- the validation of clinical performance of the Meritas system
with subjects presenting to Emergency Departments with symptoms
suggestive of Acute Coronary Syndrome (ACS).
In the ACS clinical study, we enrolled subjects
at 14 different sites in the USA. Results were adjudicated by a
panel of cardiologists according to the Third Universal Definition
of Myocardial Infarction (MI), which includes both Type-I and
Type-II MI subjects. We were pleased to report sensitivity at
admission of 78% for plasma and 66% for whole blood. These results
are better than we obtained with the clinical studies supporting
the test’s CE Mark. The 510(k) application is currently under FDA
review.
Clinical trials are currently in progress for
our second cardiac marker assay, B-type Natriuretic Protein (BNP).
We have 10 clinical sites that are actively enrolling and to date
we have obtained approximately 50% of the patient samples we
require. Enrollment is expected to be completed in Q2, 2016,
and we are anticipating submission of our BNP 510(k) application to
the FDA in Q3, 2016.
Share Buyback and Suspension of
Dividend
The Company’s Board of Directors has authorized
the commencement of a share repurchase program. Based on a
resolution passed at its most recent AGM, the Company is currently
authorized to repurchase up to 10% of its own shares (approximately
2.3m ADRs). The Company’s ability to buy back shares will be
determined by available liquidity and general market conditions and
will be carried out in accordance with applicable securities laws
and regulations.
In conjunction with its initiation of a share
repurchase program, the Company has decided to suspend the payment
of annual dividends. It is felt that given the Company’s current
share price, share repurchases represent a better deployment of
capital.
Comments
Commenting on the results, Kevin Tansley, Chief
Financial Officer, said “Revenues for Q4, 2015 were $24.9m, which
resulted in an operating profit of $3.1m and profit after tax of
$2.8m. This equates to a basic EPS of 12.1 cents or 10.5
cents on a fully diluted basis.
Total revenues in 2015 decreased from $104.9m to
$100.2m and this decrease was effectively driven by exchange rate
movements. These exchange rate movements also contributed to
a 2% reduction in gross margins. As a direct result,
operating profits for the year were $13.4m, $4.6m lower than in
2014. In addition, we incurred interest charges of $3.5m on our
convertible loan notes which were issued during the year. Overall
profit for the year was $21.8m, though if we were to exclude the
non-cash income recognized on the convertible loan notes the profit
for the year would have been $9.3m.”
Ronan O’Caoimh, CEO of Trinity said “During 2015
we operated in a very challenging economic environment. The
strength of the US dollar against a range of currencies had a very
significant adverse impact on our foreign currency denominated
revenues. Meanwhile, in many of the countries where we
actually sell in US dollars, the strength of the dollar negatively
impacted on our competitiveness resulting in a knock-on effect on
both revenues and margins.
We announced the submission of our high
sensitivity cardiac Troponin-I assay and Meritas Point-of-Care
Analyzer to the FDA in December, 2015. This is the culmination of
over three years work completing the development of both the test
and associated analyzer as well as running extensive clinical
trials in the USA. We were very pleased with the data that
was submitted and the FDA is currently reviewing the submission. We
expect to be liaising with them closely in the months ahead as the
review process continues. Meanwhile, the trials for the second test
on the Meritas platform, BNP, are progressing well and we expect to
submit this to the FDA in Q3, 2016.
Today, we are also announcing that we are
initiating a share buyback program. At our current share
price and in the absence of suitable acquisition targets at
present, we believe that buying Trinity’s shares constitutes a
sensible use of capital. At the same time, we have decided to
suspend our annual dividend payment. We feel that given our size,
level of R&D expenditure and the stage of the Company’s
development it is not appropriate to be paying dividends.”
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 Dec
31,
2015 (unaudited) |
Three Months
Ended Dec
31,
2014 (unaudited) |
Year
Ended Dec
31,
2015 (unaudited) |
Year
Ended Dec
31,
2014 (unaudited) |
|
|
|
|
|
|
Revenues |
|
|
24,937 |
|
|
26,680 |
|
|
100,195 |
|
|
104,871 |
|
|
|
|
|
|
|
Cost of
sales |
|
|
(14,170 |
) |
|
(14,014 |
) |
|
(53,950 |
) |
|
(54,524 |
) |
|
|
|
|
|
|
Gross
profit |
|
|
10,767 |
|
|
12,666 |
|
|
46,245 |
|
|
50,347 |
|
Gross profit
% |
|
|
43.2 |
% |
|
47.5 |
% |
|
46.2 |
% |
|
48.0 |
% |
|
|
|
|
|
|
Other
operating income |
|
|
65 |
|
|
85 |
|
|
288 |
|
|
424 |
|
|
|
|
|
|
|
Research & development expenses |
|
|
(1,508 |
) |
|
(961 |
) |
|
(5,068 |
) |
|
(4,290 |
) |
Selling,
general and administrative expenses |
|
|
(6,009 |
) |
|
(7,238 |
) |
|
(26,475 |
) |
|
(26,964 |
) |
Indirect share
based payments |
|
|
(184 |
) |
|
(255 |
) |
|
(1,541 |
) |
|
(1,478 |
) |
|
|
|
|
|
|
Operating profit |
|
|
3,131 |
|
|
4,297 |
|
|
13,449 |
|
|
18,039 |
|
|
|
|
|
|
|
Financial
income |
|
|
132 |
|
|
48 |
|
|
431 |
|
|
96 |
|
Financial
expenses |
|
|
(1,189 |
) |
|
(34 |
) |
|
(3,483 |
) |
|
(69 |
) |
Non-cash
financial income |
|
|
975 |
|
|
- |
|
|
12,480 |
|
|
- |
|
Net
financing (expense) / income |
|
|
(82 |
) |
|
14 |
|
|
9,428 |
|
|
27 |
|
|
|
|
|
|
|
Profit
before tax |
|
|
3,049 |
|
|
4,311 |
|
|
22,877 |
|
|
18,066 |
|
|
|
|
|
|
|
Income tax
expense |
|
|
(223 |
) |
|
(187 |
) |
|
(1,081 |
) |
|
(853 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
|
2,826 |
|
|
4,124 |
|
|
21,796 |
|
|
17,213 |
|
|
|
|
|
|
|
Earnings per
ADR (US cents) |
|
|
12.1 |
|
|
18.0 |
|
|
94.1 |
|
|
75.7 |
|
|
|
|
|
|
|
Earnings per
ADR excluding non-cash financial income (US cents) |
|
|
8.0 |
|
|
18.0 |
|
|
40.2 |
|
|
75.7 |
|
|
|
|
|
|
|
Diluted
earnings per ADR (US cents) |
|
|
10.5 |
|
|
17.6 |
|
|
46.2 |
|
|
72.6 |
|
|
|
|
|
|
|
Weighted
average no. of ADRs used in computing basic earnings per ADR |
|
|
23,259,669 |
|
|
22,916,417 |
|
|
23,161,773 |
|
|
22,749,726 |
|
|
|
|
|
|
|
Weighted
average no. of ADRs used in computing diluted earnings per ADR |
|
|
28,690,599 |
|
|
23,482,268 |
|
|
27,407,793 |
|
|
23,717,747 |
|
|
|
|
|
|
|
|
Trinity Biotech plc |
Consolidated Balance Sheets |
|
|
|
|
|
Dec 31,2015US$
‘000(unaudited) |
Sept 30,2015US$
‘000(unaudited) |
Dec 31,2014US$
‘000(unaudited) |
ASSETS |
|
|
|
Non-current
assets |
|
|
|
Property, plant and
equipment |
|
20,659 |
|
|
19,198 |
|
|
17,877 |
|
Goodwill and intangible
assets |
|
161,324 |
|
|
156,326 |
|
|
145,024 |
|
Deferred tax assets |
|
12,792 |
|
|
10,370 |
|
|
9,798 |
|
Other assets |
|
954 |
|
|
1,040 |
|
|
1,091 |
|
Total non-current
assets |
|
195,729 |
|
|
186,934 |
|
|
173,790 |
|
|
|
|
|
Current
assets |
|
|
|
Inventories |
|
35,125 |
|
|
36,882 |
|
|
33,517 |
|
Trade and other
receivables |
|
25,602 |
|
|
27,153 |
|
|
26,080 |
|
Income tax receivable |
|
550 |
|
|
119 |
|
|
351 |
|
Cash and cash
equivalents |
|
101,953 |
|
|
104,289 |
|
|
9,102 |
|
Total current
assets |
|
163,230 |
|
|
168,443 |
|
|
69,050 |
|
|
|
|
|
TOTAL
ASSETS |
|
358,959 |
|
|
355,377 |
|
|
242,840 |
|
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
Equity
attributable to the equity holders of the parent |
|
|
|
Share capital |
|
1,220 |
|
|
1,216 |
|
|
1,204 |
|
Share premium |
|
15,526 |
|
|
14,560 |
|
|
12,422 |
|
Accumulated surplus |
|
201,951 |
|
|
198,882 |
|
|
183,375 |
|
Other reserves |
|
(4,809 |
) |
|
(3,661 |
) |
|
(26 |
) |
Total
equity |
|
213,888 |
|
|
210,997 |
|
|
196,975 |
|
|
|
|
|
Current
liabilities |
|
|
|
Income tax payable |
|
1,163 |
|
|
951 |
|
|
785 |
|
Trade and other
payables |
|
18,874 |
|
|
18,694 |
|
|
21,196 |
|
Provisions |
|
75 |
|
|
75 |
|
|
75 |
|
Total current
liabilities |
|
20,112 |
|
|
19,720 |
|
|
22,056 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
Exchangeable senior note
payable |
|
98,044 |
|
|
99,069 |
|
|
- |
|
Other payables |
|
2,096 |
|
|
3,569 |
|
|
2,370 |
|
Deferred tax
liabilities |
|
24,819 |
|
|
22,022 |
|
|
21,439 |
|
Total non-current
liabilities |
|
124,959 |
|
|
124,660 |
|
|
23,809 |
|
|
|
|
|
TOTAL
LIABILITIES |
|
145,071 |
|
|
144,380 |
|
|
45,865 |
|
|
|
|
|
TOTAL EQUITY AND
LIABILITIES |
|
358,959 |
|
|
355,377 |
|
|
242,840 |
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Biotech plc |
Consolidated Statement of Cash Flows |
|
|
|
|
|
(US$000’s) |
Three Months
Ended Dec
31,
2015(unaudited) |
Three Months
Ended Dec
31,
2014(unaudited) |
Year
Ended Dec
31,
2015(unaudited) |
Year
Ended Dec
31,
2014(unaudited) |
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
104,289 |
|
|
8,949 |
|
|
9,102 |
|
|
22,317 |
|
|
|
|
|
|
Operating cash flows
before changes in working capital |
|
5,574 |
|
|
5,048 |
|
|
19,853 |
|
|
22,027 |
|
Changes in working
capital |
|
234 |
|
|
3,596 |
|
|
(7,157 |
) |
|
(6,512 |
) |
Cash generated from
operations |
|
5,808 |
|
|
8,644 |
|
|
12,696 |
|
|
15,515 |
|
|
|
|
|
|
Net Interest and Income
taxes received/(paid) |
|
79 |
|
|
(53 |
) |
|
(361 |
) |
|
237 |
|
|
|
|
|
|
Capital Expenditure &
Financing (net) |
|
(5,980 |
) |
|
(8,438 |
) |
|
(21,604 |
) |
|
(23,937 |
) |
|
|
|
|
|
Free cash flow |
|
(93 |
) |
|
153 |
|
|
(9,269 |
) |
|
(8,185 |
) |
|
|
|
|
|
Payment of HIV-2 licence
fee |
|
- |
|
|
- |
|
|
(1,112 |
) |
|
- |
|
|
|
|
|
|
30 year Convertible Note
proceeds, net of fees |
|
(45 |
) |
|
- |
|
|
110,529 |
|
|
- |
|
|
|
|
|
|
30 year Convertible Note
interest payment |
|
(2,198 |
) |
|
- |
|
|
(2,198 |
) |
|
- |
|
|
|
|
|
|
Dividend payment |
|
- |
|
|
- |
|
|
(5,099 |
) |
|
(5,030 |
) |
|
|
|
|
|
Cash and cash
equivalents at end of period |
|
101,953 |
|
|
9,102 |
|
|
101,953 |
|
|
9,102 |
|
|
|
|
|
|
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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