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Trinity Biotech Announces Quarter 3 Results; Revenues Increase to $35.6m; Operating Profit Increases 56% DUBLIN, IRELAND--(MARKET WIRE)--Oct 31, 2008 -- Trinity Biotech plc (NasdaqGS:TRIB - News), 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, 2008. Quarter 3 Results Revenues for quarter 3, 2008 amounted to US$35.6m compared to US$33.7m for the same period last year, an increase of 5.4%. Clinical Laboratory revenues increased by 4.3%, whilst Point of Care revenues increased by 12.4%. In addition, revenues increased in each geographical market segment with the strongest growth arising in Europe. Operating profit and net profit for the quarter amounted to US$2.0m and US$1.3m respectively. EBITDA & share option expense for the quarter was US$4.3m and US$12.9m for the year to date. Revenues for the quarter by key product line were as follows:
2007 2008 %
Quarter 3 Quarter 3 Increase/(decrease)
US$000 US$000
Clinical Laboratory 29,126 30,388 4.3%
Point of Care 4,620 5,194 12.4%
Total 33,746 35,582 5.4%Revenues for the quarter by geographic location were as follows :
2007 2008 %
Quarter 3 Quarter 3 Increase/(decrease)
US$000 US$000
Americas 17,870 18,546 3.8%
Europe 9,969 10,712 7.4%
Asia / Africa 5,907 6,324 7.1%
Total 33,746 35,582 5.4%
Gross profit for the quarter amounted to US$15.7m, representing a gross margin of 44%, which is broadly in line with a gross margin of 45% for the same period in 2007. The decrease in gross margin partly reflects the impact of the weaker US dollar year on year. Research and development expenditure remains at approximately 5% of revenues. Selling, general and administrative expenses of US$11.8m represents a decrease from US$12.1m in quarter 2, 2007. SG&A costs for the year to date are $35.7m which is approximately 2% lower than for the same period last year. This reflects the impact of the Group restructuring announced in December 2007 which has been partly mitigated by the impact of the weaker dollar. The Company also wishes to announce that it is switching auditors to Grant Thornton. This decision has been made on solely commercial grounds. Grant Thornton is a top 6 worldwide auditing firm and has a strong presence in each of the markets in which the Company operates. Comments Commenting on the results, Kevin Tansley, Chief Financial Officer, said, "Revenues have increased this quarter compared to the corresponding quarter last year. We have seen increases in our Clinical Laboratory Division of 4% and of over 12% in Point-of-Care sales. The fact that this growth has been spread across all markets is particularly encouraging. The growth in revenues this quarter has translated into an operating profit of over $2m, representing a 56% increase over the same period last year. " Ronan O'Caoimh, CEO, commented, "At this juncture the prospects for the Company are looking extremely positive. The launch of Destiny Max, our new high throughput haemostasis instrument, in all markets outside the USA is imminent. Over the last number of weeks a number of key customers in the USA and United Kingdom have being carrying out formal evaluations of the instrument. The feedback from these evaluations has been excellent and has even exceeded our own expectations. We are now fully confident that the Destiny Max will represent the best high throughput haemostasis instrument available on the market. We are extremely proud that we will be able to offer a cutting edge product with the most advanced features at a highly competitive price. With the launch of Destiny Max in the USA in the first half of 2009 Trinity will, for the first time, be competing in all segments of the haemostasis market in each major geographic market and this will transform our haemostasis business. By enabling us to sell into the high throughput segment, which represents 50% of the market, Trinity will have access to new customers not previously open to us. From a Point of Care perspective, with the substantial increase in funding being channelled into the fight against HIV/AIDS, particularly the increase in funding of the PEPFARS programme from $15bn to $50bn, worldwide sales of HIV diagnostic kits can be expected to grow exponentially in the years ahead. Those market participants with the highest quality tests will be in the best position to capitalize on such growth. As has been proven in over 10 years of sales and supported by third party studies, Trinity's Unigold product range represents the highest quality products available in both the U.S. and African markets. While our haemoglobin A1c point-of-care test, Tri-stat, has taken longer to launch than originally envisaged, the enhancements currently being incorporated into the product are such that we are confident that the product will be better positioned to capture a significant share of the rapid A1c market. Due to the recession resilient nature of our business, Trinity Biotech, like many healthcare companies, will be less affected by the current turmoil in the global economy. In fact, the recent strengthening of the US dollar will benefit our profitability going forward. Notwithstanding this, we are acutely aware of the need to control costs at this time in order to remain competitive and I have identified this as a priority going forward. The Company is now well positioned to grow strongly in the years ahead and I am confident that this growth will drive increased shareholder value." 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 blood coagulation disorders, 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
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September September September September
(US$000’s except 30, 2008 30, 2007 30, 2008 30, 2007
share data) (unaudited) (unaudited) (unaudited) (unaudited)
Revenues 35,582 33,746 106,130 107,892
Cost of sales (19,894) (18,439) (58,411) (57,149)
Cost of sales - share
based payments (17) (21) (50) (53)
----------- ----------- ----------- -----------
Gross profit 15,671 15,286 47,669 50,690
Other operating income 363 91 551 256
Research & development
expenses (1,899) (1,560) (5,683) (5,094)
Selling, general and
administrative
expenses (11,819) (12,131) (35,703) (36,448)
Indirect share based
payments (302) (398) (728) (1,106)
----------- ----------- ----------- -----------
Operating profit 2,014 1,288 6,106 8,298
Financial income 16 41 54 400
Financial expenses (478) (717) (1,705) (2,327)
----------- ----------- ----------- -----------
Net financing costs (462) (676) (1,651) (1,927)
----------- ----------- ----------- -----------
Profit before tax 1,552 612 4,455 6,371
Income tax (expense) /
credit (231) (581) (576) (815)
----------- ----------- ----------- -----------
Profit for the period 1,321 31 3,879 5,556
Earnings per ADR (US
cents) 6.3 0.2 19.2 29.2
Diluted earnings per
ADR (US cents) 6.3 0.2 19.2 28.5
Weighted average no.
of ADRs used in
computing earnings per
ADR 20,854,395 19,015,883 20,178,662 18,999,424The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company’s accounting policies but do not constitute an interim financial report as defined in IAS 34 (Interim Financial Reporting).
Trinity Biotech plc
Consolidated Balance Sheets
September 30, December 31,
2008 2007
US$ '000 US$ '000
(unaudited) (audited)
ASSETS
Non-current assets
Property, plant and equipment 25,266 26,409
Goodwill and intangible assets 108,829 104,928
Deferred tax assets 4,142 3,937
Other assets 777 896
---------- ----------
Total non-current assets 139,014 136,170
---------- ----------
Current assets
Inventories 42,648 44,420
Trade and other receivables 29,908 25,683
Income tax receivable 585 782
Derivative Financial Instruments 0 224
Cash and cash equivalents 3,502 8,700
---------- ----------
Total current assets 76,643 79,809
---------- ----------
---------- ----------
TOTAL ASSETS 215,657 215,979
========== ==========
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent
Share capital 1,070 991
Share premium 159,876 153,961
Retained earnings (18,301) (22,908)
Translation reserve 723 797
Other reserves 4,446 4,004
---------- ----------
Total equity 147,814 136,845
---------- ----------
Current liabilities
Interest-bearing loans and borrowings 12,862 15,821
Income tax payable 237 86
Trade and other payables 21,212 24,779
Derivative Financial Instruments 139 0
Other financial liabilities 0 2,725
Provisions 100 100
---------- ----------
Total current liabilities 34,550 43,511
---------- ----------
Non-current liabilities
Interest-bearing loans and borrowings 23,563 26,312
Other payables 74 74
Deferred tax liabilities 9,656 9,237
---------- ----------
Total non-current liabilities 33,293 35,623
---------- ----------
---------- ----------
TOTAL LIABILITIES 67,843 79,134
---------- ----------
---------- ----------
TOTAL EQUITY AND LIABILITIES 215,657 215,979
========== ==========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: Contact:
Ms. Niamh Long
Trinity Biotech plc
Investor Relations Officer
Email Contact
(353)-1-2769800
Joe Diaz, Joe Dorame and Robert Blum
Lytham Partners, LLC
602-889-7900
Source: Trinity Biotech
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