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, 2018.
Quarter 1
Results
Total revenues for Q1, 2018 were $23.8m which compares to $23.5m in
Q1, 2017, an increase of $0.3m and were broken down as follows:
|
2017Quarter 1 |
2018Quarter 1 |
Increase/(decrease) |
|
US$’000 |
US$’000 |
% |
Point-of-Care |
4,010 |
3,776 |
(5.8 |
%) |
Clinical Laboratory |
19,526 |
20,023 |
2.5 |
% |
Total |
23,536 |
23,799 |
1.1 |
% |
Point-of-Care revenues for Q1, 2018 decreased
from $4.0m to $3.8m when compared to Q1, 2017, a reduction of 5.8%.
This was due to a combination of the impact of lower public health
spending on U.S. HIV sales and the normal fluctuation of African
HIV orders.
Clinical Laboratory revenues increased from
$19.5m to $20.0m, which represents an increase of 2.5% compared to
Q1 2017. As has been the case in previous quarters, this growth was
due to higher Diabetes and Autoimmunity sales.
Gross profit for Q1, 2018 amounted to $10.4m
representing a gross margin of 43.8%. This was higher than the 42%
achieved in Q1, 2017 and was higher than the gross margin reported
in each of the subsequent quarters of 2017.
Research and Development expenses remained flat
at $1.3m whilst Selling, General and Administrative (SG&A) fell
slightly from $7.0m to $6.9m during the quarter.
Operating profit for the quarter was $1.8m,
which is higher than the $1.3m achieved in Q1, 2017 and this was
attributable to the combination of the higher revenues and improved
gross margin.
Financing income for the quarter was marginally
higher at $0.2m reflecting higher available deposit interest rates.
Meanwhile, interest payable, mainly arising on the Company’s
exchangeable notes, remained static at $1.2m. A further
non-cash expense of $0.3m was recognised in the quarter. This
was due to a loss of $0.1m arising on an increase in the fair value
of the embedded derivatives associated with the exchangeable notes
plus non-cash interest of $0.2m.The profit after tax, before
non-cash financial expenses, for the quarter was $0.7m and compares
favourably to $0.2m for the equivalent period last year. This
was primarily due to the improved operating profit this
quarter.
The basic EPS (excluding non-cash financial
expenses) for the quarter was 3.4 cents versus 1.0 cent in Q1,
2017. Unconstrained diluted EPS for the quarter amounted to 7.1
cents, which compares to 5.0 cents in the equivalent quarter in
2017.
Earnings before interest, tax, depreciation,
amortisation and share option expense for the quarter was $3.3m,
compared with $2.7m in Q1, 2017.
Share Buyback
During the quarter, the Company bought back
27,000 shares at an average price of $5.15 and a total value of
$0.1m. This brings the total purchased since the beginning of the
program to over 2.5m shares with a total value of $17.5m.
Comments
Commenting on the results, Kevin Tansley, Chief
Financial Officer stated, “There were a number of positive aspects
to our performance this quarter. In addition to our growth in
revenues, we saw a significant improvement in gross margins to
43.8%, which is the highest we have recorded in the last six
quarters. By maintaining the level of our indirect costs,
this translated into an increase in operating profit from $1.3m to
$1.8m – an increase of over 38%. Similarly our Diluted EPS
increased from 5 cents to 7.1 cents.”
Ronan O’Caoimh, Chief Executive Officer stated,
“Clinical Laboratory revenues grew by 2.5% this quarter. As in
previous quarters, this was driven by the continued growth of our
Diabetes and Autoimmunity businesses. Meanwhile, our Point-of-Care
revenues fell by 5.8%. This partly due to the adverse impact of
lower federal funding for public health programs on US HIV
revenues. In addition, African HIV sales were slightly lower
this quarter due to the normal fluctuations which are a feature of
this market. Of greater importance is the fact that Trinity’s
Uni-gold product remains the pre-eminent confirmatory HIV test in
the African market.”
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
plcConsolidated Income
Statements
(US$000’s except
share data) |
|
Three
MonthsEndedMar
31,2018(unaudited) |
|
Three
MonthsEndedMar
31,2017(unaudited) |
|
|
|
|
|
Revenues |
|
23,799 |
|
23,536 |
|
|
|
|
|
Cost of sales |
|
(13,371 |
) |
(13,645 |
) |
|
|
|
|
Gross
profit |
|
10,428 |
|
9,891 |
|
Gross profit % |
|
43.8% |
|
42.0% |
|
|
|
|
|
Other operating
income |
|
24 |
|
23 |
|
|
|
|
|
Research & development expenses |
|
(1,272 |
) |
(1,328 |
) |
Selling, general and
administrative expenses |
|
(6,940 |
) |
(7,028 |
) |
Indirect share based
payments |
|
(434 |
) |
(250 |
) |
|
|
|
|
Operating
profit |
|
1,806 |
|
1,308 |
|
|
|
|
|
Financial income |
|
205 |
|
177 |
|
Financial expenses |
|
(1,159 |
) |
(1,170 |
) |
Net financing
expense |
|
(954 |
) |
(993 |
) |
|
|
|
|
|
|
|
|
|
|
Profit before
tax & non-cash items |
|
852 |
|
315 |
|
|
|
|
|
|
|
Income tax expense |
|
(132 |
) |
(99 |
) |
Profit after
tax before non-cash items |
|
720 |
|
216 |
|
|
|
|
|
|
|
Non-cash financial
(expense)/income |
|
(342 |
) |
1,030 |
|
|
|
|
|
|
|
Profit after
tax and non-cash items |
|
378 |
|
1,246 |
|
|
|
|
|
Earnings per ADR (US
cents) |
|
1.8 |
|
5.6 |
|
|
|
|
|
Earnings per ADR
excluding non-cash financial expense/income (US cents) |
|
3.4 |
|
1.0 |
|
|
|
|
|
Diluted earnings per
ADR (US cents)* |
|
7.1 |
|
5.0 |
|
|
|
|
|
Weighted average no. of
ADRs used in computing basic earnings per ADR |
|
20,907,885 |
|
22,102,620 |
|
|
|
|
|
Weighted average no. of
ADRs used in computing diluted earnings per ADR |
|
26,163,828 |
|
27,362,174 |
|
* 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
plcConsolidated Balance
Sheets
|
Mar 31,2018US$
‘000(unaudited) |
Dec 31,2017US$
‘000(unaudited) |
ASSETS |
|
|
Non-current
assets |
|
|
Property, plant and
equipment |
7,033 |
5,800 |
Goodwill and intangible
assets |
66,474 |
64,754 |
Deferred tax
assets |
8,968 |
8,698 |
Other assets |
779 |
771 |
Total
non-current assets |
83,254 |
80,023 |
|
|
|
Current
assets |
|
|
Inventories |
34,179 |
32,805 |
Trade and other
receivables |
22,118 |
20,740 |
Income tax
receivable |
1,234 |
1,440 |
Cash, cash equivalents
and deposits |
53,895 |
57,607 |
Total current
assets |
111,426 |
112,592 |
|
|
|
TOTAL
ASSETS |
194,680 |
192,615 |
|
|
|
EQUITY AND
LIABILITIES |
|
|
Equity
attributable to the equity holders of the parent |
|
|
Share capital |
1,224 |
1,224 |
Share premium |
16,187 |
16,187 |
Accumulated
surplus |
46,837 |
46,157 |
Other reserves |
1,529 |
1,628 |
Total
equity |
65,777 |
65,196 |
|
|
|
Current
liabilities |
|
|
Income tax payable |
344 |
310 |
Trade and other
payables |
21,761 |
20,845 |
Provisions |
50 |
75 |
Total current
liabilities |
22,155 |
21,230 |
|
|
|
Non-current
liabilities |
|
|
Exchangeable senior
note payable |
95,167 |
94,825 |
Other payables |
453 |
532 |
Deferred tax
liabilities |
11,128 |
10,832 |
Total
non-current liabilities |
106,748 |
106,189 |
|
|
|
TOTAL
LIABILITIES |
128,903 |
127,419 |
|
|
|
TOTAL EQUITY
AND LIABILITIES |
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
plcConsolidated Statement of Cash
Flows
(US$000’s) |
Three
MonthsEndedMar
31,2018
(unaudited) |
|
|
Three
MonthsEndedMar
31,2017(unaudited) |
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
57,607 |
|
|
77,108 |
|
|
|
|
|
|
|
Operating cash flows
before changes in working capital |
3,258 |
|
|
2,267 |
|
Changes in working
capital |
(2,679 |
) |
|
(2,208 |
) |
Cash generated from
operations |
579 |
|
|
59 |
|
|
|
|
|
|
|
Net Interest and Income
taxes paid |
204 |
|
|
177 |
|
|
|
|
|
|
|
Capital Expenditure
& Financing (net) |
(4,061 |
) |
|
(3,646 |
) |
|
|
|
|
|
|
Free cash flow |
(3,278 |
) |
|
(3,410 |
) |
|
|
|
|
|
|
Payment of HIV-2
licence fee |
- |
|
|
(1,112 |
) |
|
|
|
|
|
|
Share buyback |
(434 |
) |
|
(1,833 |
) |
|
|
|
|
|
|
Once-off items |
- |
|
|
(902 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period |
53,895 |
|
|
69,851 |
|
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 |
Lytham Partners
LLC |
|
Kevin Tansley |
Joe Diaz, Joe Dorame
& Robert Blum |
|
(353)-1-2769800 |
602-889-9700 |
|
E-mail:
kevin.tansley@trinitybiotech.com |
|
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