Trinity Biotech Announces Results for Q2, 2018
July 19 2018 - 8:25AM
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, 2018.
Quarter 2
Results
Total revenues for Q2, 2018 were $25.0m compared to $25.4m in Q2,
2017.
|
2017Quarter 2 |
2018Quarter 2 |
Increase/ (decrease) |
|
US$’000 |
US$’000 |
% |
Point-of-Care |
4,350 |
4,019 |
(7.6%) |
Clinical Laboratory |
21,098 |
20,983 |
(0.6%) |
Total |
25,448 |
25,002 |
(1.8%) |
|
|
|
|
Point-of-Care revenues for Q2, 2018 decreased by
$0.3m. This was attributable to lower sales of HIV products in
Africa due to the normal fluctuations which characterise that
market, in addition to reduced HIV sales in the USA due to
continued lower federal government spending in this area.
Meanwhile, Clinical Laboratory sales for the
quarter were $21.0m versus $21.1m for the corresponding period last
year, thus representing a decrease of 0.6%. This was due to
higher diabetes and autoimmunity revenues being offset by lower
Lyme revenues as a result of severe winter weather conditions in
the north-eastern USA which extended into Spring thus delaying the
start of the Lyme season.
The gross margin for the quarter was 43.2%,
which compares favourably to 42.5% achieved in Q2, 2017 This
improvement was partly attributable to cost savings implemented
during the quarter.
Research and Development expenses increased
marginally from $1.3m in Q2, 2017 to $1.4m for the current quarter,
whilst Selling, General and Administrative (SG&A) expenses
decreased from $7.6m to $7.4m in the same period. Share option
expense for the quarter increased from $0.1m to $0.3m due to an
unusually low charge in Q2 of last year and caused total indirect
costs to increase from $9.0m to $9.1m.
Operating profit fell slightly from $1.8m to
$1.7m due to the increase in indirect costs, which was driven
entirely by a higher share option charge this quarter.
Financial income for the quarter remained
constant at $0.2m whilst interest payable, mainly arising on the
Company’s exchangeable notes, was also static at $1.2m.
Non-cash expenses were immaterial this quarter as the gain of
almost $0.2m arising on a decrease in the fair value of the
embedded derivatives associated with the exchangeable notes was
offset by a non-cash interest charge of $0.2m.
The Company recorded a profit, excluding
non-cash items of $0.6m for the quarter, which equates to earnings
per share of 2.9 cents compared to 3.1 cents in the equivalent
period last year. Fully diluted EPS for the quarter was 6.7 cents
compared to 6.8 cents in Q2, 2017.
EBITDA before share option expense for the
quarter was $2.9m.
Comments
Commenting on the results, Kevin Tansley, Chief
Financial Officer, said “Operating profit fell slightly from $1.8m
to $1.7m when compared to the equivalent quarter last year. The
impact of lower revenues due to lower Lyme sales was offset by an
improvement in gross margin from 42.5% to 43.2%. However,
indirect costs increased from 9.0m to 9.1m, though this increase
was entirely driven by an increase in share option expense due an
unusually low charge in Q2 of last year. However, cash based
indirect costs actually fell in the quarter. This was partly
driven by cost cutting measures implemented during the quarter, the
impact of which will be more greatly felt in subsequent
quarters. Diluted EPS for the quarter was broadly flat at 6.7
cents, whilst year to date EPS was 13.9 cents compared with 11.7
cents for the first six months of 2017.”
Ronan O’Caoimh, CEO of Trinity said “Whilst
revenues were down 1.8% compared to Q2 last year our profitability
was largely unaffected. This was largely due to the impact of
cost savings measures that we undertook during the quarter. It is
of note that most of the measures were implemented midway during
the quarter and hence we will not see their full impact until next
quarter. In the months ahead we will continue to seek further cost
savings. These measures are being driven by our objective to reach
a cash flow neutral position for the company for the financial year
2019.”
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.
|
Trinity Biotech plc |
Consolidated Income Statements |
|
(US$000’s except
share data) |
|
Three
MonthsEndedJune
30,2018(unaudited) |
|
Three
MonthsEndedJune
30,2017(unaudited) |
|
Six
MonthsEndedJune
30,2018(unaudited) |
|
Six
MonthsEndedJune
30,2017(unaudited) |
|
|
|
|
|
|
|
Revenues |
|
25,002 |
|
25,448 |
|
48,801 |
|
48,984 |
|
|
|
|
|
|
|
Cost of sales |
|
(14,194 |
) |
(14,629 |
) |
(27,565 |
) |
(28,274 |
) |
|
|
|
|
|
|
Gross
profit |
|
10,808 |
|
10,819 |
|
21,236 |
|
20,710 |
|
Gross margin % |
|
43.2 |
% |
42.5 |
% |
43.5 |
% |
42.3 |
% |
|
|
|
|
|
|
Other operating
income |
|
24 |
|
26 |
|
48 |
|
49 |
|
|
|
|
|
|
|
Research & development expenses |
|
(1,419 |
) |
(1,322 |
) |
(2,691 |
) |
(2,651 |
) |
Selling, general and
administrative expenses |
|
(7,358 |
) |
(7,561 |
) |
(14,298 |
) |
(14,588 |
) |
Indirect share based
payments |
|
(329 |
) |
(130 |
) |
(763 |
) |
(380 |
) |
|
|
|
|
|
|
Operating
profit |
|
1,726 |
|
1,832 |
|
3,532 |
|
3,140 |
|
|
|
|
|
|
|
Financial income |
|
196 |
|
196 |
|
401 |
|
373 |
|
Financial expenses |
|
(1,158 |
) |
(1,169 |
) |
(2,317 |
) |
(2,339 |
) |
Net financing
expense |
|
(962 |
) |
(973 |
) |
(1,916 |
) |
(1,966 |
) |
|
|
|
|
|
|
Profit before
tax & non-cash items |
|
764 |
|
859 |
|
1,616 |
|
1,174 |
|
|
|
|
|
|
|
Income tax expense |
|
(158 |
) |
(176 |
) |
(290 |
) |
(275 |
) |
|
|
|
|
|
|
|
|
|
|
Profit after
tax before non-cash items |
|
606 |
|
683 |
|
1,326 |
|
899 |
|
|
|
|
|
|
|
|
|
|
|
Non-cash financial
(expense) / income |
|
(12 |
) |
219 |
|
(354 |
) |
1,249 |
|
|
|
|
|
|
|
|
|
|
|
Profit after
tax and non-cash items |
|
594 |
|
902 |
|
972 |
|
2,148 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADR (US
cents) |
|
2.8 |
|
4.1 |
|
4.7 |
|
9.8 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADR
excluding non-cash financial (expense) / income (US cents) |
|
2.9 |
|
3.1 |
|
6.3 |
|
4.1 |
|
|
|
|
|
|
|
Diluted earnings per
ADR (US cents)* |
|
6.7 |
|
6.8 |
|
13.9 |
|
11.7 |
|
|
|
|
|
|
|
Weighted average no. of
ADRs used in computing basic earnings per ADR |
|
20,901,703 |
|
21,847,528 |
|
20,904,777 |
|
21,974,369 |
|
|
|
|
|
|
|
Weighted average no. of
ADRs used in computing diluted earnings per ADR |
|
26,157,644 |
|
27,104,994 |
|
26,166,077 |
|
27,231,931 |
|
|
|
|
|
|
|
* Under IAS 33 Earnings per Share, diluted earnings per share
cannot be anti-dilutive. In a reporting period where it is
anti-dilutive, diluted earnings per ADR should be constrained to
equal basic earnings per ADR.
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 30,2018US$
‘000(unaudited) |
Mar 31,2018US$
‘000(unaudited) |
Dec 31,2017US$
‘000(unaudited) |
ASSETS |
|
|
|
Non-current
assets |
|
|
|
Property, plant and
equipment |
7,769 |
7,033 |
5,800 |
Goodwill and intangible
assets |
68,263 |
66,474 |
64,754 |
Deferred tax
assets |
9,047 |
8,968 |
8,698 |
Other assets |
701 |
779 |
771 |
Total
non-current assets |
85,780 |
83,254 |
80,023 |
|
|
|
|
Current
assets |
|
|
|
Inventories |
34,818 |
34,179 |
32,805 |
Trade and other
receivables |
23,138 |
22,118 |
20,740 |
Income tax
receivable |
1,287 |
1,234 |
1,440 |
Cash and cash
equivalents |
49,426 |
53,895 |
57,607 |
Total current
assets |
108,669 |
111,426 |
112,592 |
|
|
|
|
TOTAL
ASSETS |
194,449 |
194,680 |
192,615 |
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
Equity
attributable to the equity holders of the parent |
|
|
|
Share capital |
1,224 |
1,224 |
1,224 |
Share premium |
16,187 |
16,187 |
16,187 |
Accumulated
surplus |
47,430 |
46,837 |
46,157 |
Other reserves |
1,853 |
1,529 |
1,628 |
Total
equity |
66,694 |
65,777 |
65,196 |
|
|
|
|
Current
liabilities |
|
|
|
Income tax payable |
252 |
344 |
310 |
Trade and other
payables |
20,494 |
21,761 |
20,870 |
Provisions |
50 |
50 |
50 |
Total current
liabilities |
20,796 |
22,155 |
21,230 |
|
|
|
|
Non-current
liabilities |
|
|
|
Exchangeable senior
note payable |
95,179 |
95,167 |
94,825 |
Other payables |
341 |
453 |
532 |
Deferred tax
liabilities |
11,439 |
11,128 |
10,832 |
Total
non-current liabilities |
106,959 |
106,748 |
106,189 |
|
|
|
|
TOTAL
LIABILITIES |
127,755 |
128,903 |
127,419 |
|
|
|
|
TOTAL EQUITY
AND LIABILITIES |
194,449 |
194,680 |
192,615 |
|
|
|
|
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 MonthsEndedJune
30,2018(unaudited) |
|
Three MonthsEndedJune
30,2017 (unaudited) |
|
Six MonthsEndedJune
30,2018 (unaudited) |
|
Six MonthsEndedJune
30,2017 (unaudited) |
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
53,895 |
|
69,851 |
|
57,607 |
|
77,108 |
|
|
|
|
|
|
Operating cash flows
before changes in working capital |
3,204 |
|
3,739 |
|
6,462 |
|
6,006 |
|
Changes in working
capital |
(1,466 |
) |
(367 |
) |
(4,145 |
) |
(2,575 |
) |
Cash generated from
operations |
1,738 |
|
3,372 |
|
2,317 |
|
3,431 |
|
|
|
|
|
|
Net Interest and Income
taxes (paid)/received |
(30 |
) |
62 |
|
175 |
|
239 |
|
|
|
|
|
|
Capital Expenditure
& Financing (net) |
(3,877 |
) |
(3,185 |
) |
(7,939 |
) |
(6,832 |
) |
|
|
|
|
|
Free cash flow |
(2,169 |
) |
249 |
|
(5,447 |
) |
(3,162 |
) |
|
|
|
|
|
Share buyback |
- |
|
(3,096 |
) |
(434 |
) |
(4,929 |
) |
|
|
|
|
|
Payment of HIV-2
licence fee |
- |
|
- |
|
- |
|
(1,112 |
) |
|
|
|
|
|
30 year Exchangeable
Note interest payment |
(2,300 |
) |
(2,300 |
) |
(2,300 |
) |
(2,300 |
) |
|
|
|
|
|
Once-off items |
- |
|
(727 |
) |
- |
|
(1,628 |
) |
|
|
|
|
|
Cash and cash
equivalents at end of period |
49,426 |
|
63,977 |
|
49,426 |
|
63,977 |
|
|
|
|
|
|
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 LLCJoe Diaz, Joe Dorame &
Robert Blum602-889-9700
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