DUBLIN, March 5, 2012 (GLOBE NEWSWIRE) -- 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 December 31, 2011.
Quarter 4 Results
Total revenues for Q4, 2011 were $20.0m which compares to $19.2m in Q4, 2010, representing an increase of 4%. This was primarily attributable to higher HIV sales in our two key markets of Africa and USA.
Point-of-care revenues for Q4, 2011 were $3.9m which is 12.4% higher than Q4, 2010. Clinical Laboratory revenues increased from $15.7m to $16.1m, which represents an increase of 2.1% compared to Q4, 2010. However, excluding Fitzgerald revenues, which fell by 12% in the quarter, the increase in our core diabetes/infectious diseases revenues was 6%.
Revenues for Q4, 2011 and the financial year 2011 by key product area were as follows:
|
2010 Quarter 4 |
2011 Quarter 4 |
Q4 2011 vs Q4 2010 |
Full Year 2010 |
Full Year 2011 |
Full Year 2011 vs 2010 |
|
| US$'000 | US$'000 | % | US$'000 | US$'000 | % | |
| Point-of-Care | 3,507 | 3,943 | 12.4% | 16,082 | 16,562 | 3.0% |
|
Clinical Laboratory |
15,740 |
16,070 |
2.1% |
57,739 |
61,386 |
6.3% |
|
Continuing operations |
19,247 |
20,013 |
4.0% |
73,821 |
77,948 |
5.6% |
| Coagulation* | -- | -- | -- | 15,814 | -- | |
| Total | 19,247 | 20,013 | 4.0% | 89,635 | 77,948 |
* Represents revenues from coagulation prior to its divesture in Q2, 2010
Gross profit for Q4, 2011 amounted to $10.3m representing a gross margin of 51.5% which compares favourably to the gross margin of 50.8% for the same period in 2010.
Research and Development expenses remained stable at $0.9m, the same as Q4, 2010. Meanwhile, Selling, General and Administrative (SG&A) expenses have decreased by 2.0% to $5.3m compared to Q4, 2010 due to continued cost control.
Operating profit for Q4, 2011 was $4.1m, and represents an increase of 14.5% when compared with Q4, 2010. Operating margin at 20.5% remains above the company's target of 20% and represents a significant improvement compared to the 18.6% reported in Q4, 2010.
Net financial income for Q4, 2011 was $0.6m which compares to net financial income of $0.5m in Q4, 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 earned on cash deposits. The tax charge for Q4, 2011 was $0.7m which represents an effective tax rate of 14%. This compares with an effective rate of 10% in Q4, 2010, which was lower due to the utilisation of tax losses forward.
Profit After Tax was $4.0m which is an increase of 10.5% over Q4, 2010. Similarly, EPS for Q4, 2011 increased by 11.7% from 17.1 cents to 19.1 cents.
Free Cash Flows generated during the quarter were $2.3m. This in turn was offset by just over $2m spent on share repurchases. The net result is that the company's cash position has remained broadly the same at $71.1m.
Share buyback
During the quarter we repurchased 205,783 ADRs at an average price of $9.78 as part of our share buyback program. The total amount spent on repurchases during the quarter was just over $2.0m, bringing the total shares repurchased in 2011 to $6.1m.
2011 Full Year Results
The following are the key highlights with respect to the financial performance of the Company in 2011:
- Revenues (excluding coagulation) for the year increased from $73.8m to $77.9m which represents an increase of 5.6%. This included growth of 3% in point-of-care and over 6% in clinical laboratory revenues. Excluding the impact of lower Fitzgerald revenues, the remainder of the business increased by 8.5%;
- EPS (excluding non-recurring items) increased from 64.1 cents to 73.2 cents, an increase of over 14% with growth being seen in each quarter throughout the year;
- Gross margins continued to improve, following the divestiture of coagulation, rising from 49% to 51.5%
- There was a substantial improvement in operating margins which improved from 15.7% to 20.2%;
- Free cash flows for the full year were over $12m, which is an average of over $1m per month, and contributed to the increase in net cash balances from $58.0m to $71.1m. Other major cash movements included $11.25m of deferred consideration received from Stago which was partially offset by share repurchases of $6.1m and a dividend payment of $2.1m.
Other developments
Acquisition of Fiomi Diagnostics AB
Trinity Biotech recently acquired Fiomi Diagnostics AB for $13.1m including $3.4m of contingent payments. Based in Uppsala, Sweden, Fiomi is at an advanced stage of developing a point-of-care test for Troponin I and other cardiac markers. The technology, which uses a micro-pillar flow technique, is capable of providing extremely sensitive, highly reproducible, quantitative, multi-plexed results which give more accurate results than the current established point-of-care tests in the market.
CE Marking for Giardia test
Last week the Company announced that it had obtained CE Marking for its new point-of-care Uni-Gold™ Giardia test. CE marking allows this product to be sold in European markets and we will immediately commence selling this product through our extensive distributor network in Europe and other territories. Meanwhile, the Company has also filed for FDA approval in the USA and this is expected to be granted in the first half of 2012. This is the first of a range of new point-of-care tests to be developed at the company's San Diego facility and will be followed by tests for Cryptosporidium, C Difficile, Syphilis, Strep pneumonia and HSV by the end of 2012.
Comments
Commenting on the results, Kevin Tansley, Chief Financial Officer, said "This quarter's results demonstrate another strong performance from Trinity Biotech. Revenues in the quarter increased by 4% including growth of over 12% in point-of-care sales. This combined with improved gross margins and operating margins have resulted in an increase in EPS of 12% to 19.1 cents compared to the equivalent quarter last year."
Ronan O'Caoimh, CEO stated "We are very pleased with the financial results we achieved in 2011 which show significant improvement in all key indicators. In particular, we achieved profit after tax and EPS growth of over 14%. In addition, revenues grew by 6% and we generated over $12m of free cash flows.
It was also a very important year from a strategic perspective with the highlights being as follows:
- FDA approval and launch of our new best-in-class diabetes analyzer, the Premier Hb 9210, which is being sold directly by our sales force in the USA where it is also distributed by Fisher and by the market leader, Menarini, in Europe. Shipment of the first 18 Premier instruments took place pre year end;
- Major progress has been made in the development of our new point-of-care range of infectious disease assays, culminating in the recent launch of our first product, Unigold™ Giardia. This will be followed the launch of tests for Cryptosporidium, C Difficile, Syphilis, Strep pneumonia and HSV by the end of 2012;
- The initiation of a dividend policy for the first time in the Company's history, with a dividend of 10 cents per ADR being paid in respect of 2010; and
- The commencement of a share buyback program which has resulted in the repurchase of 609,000 ADRs at a cost of over $6m.
We were also very pleased with our recent acquisition of Fiomi Diagnostics AB. Fiomi is completing its first assay based on a micro-pillar flow technology which is designed to give extremely sensitive, highly reproducible and quantitative test results in a multi-plexed format. Fiomi will initially be focussing on a range of point-of-care tests for the $900m cardiac market, though the technology also has a range of other applications including in the infectious disease, autoimmune, allergy and veterinary fields."
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 | Three Months | Year Ended | Year Ended |
| Ended | Ended | Dec 31, | Dec 31, | |
| Dec 31, | Dec 31, | 2011 | 2010 | |
| 2011 | 2010 | (unaudited) | (audited) | |
| (unaudited) | (unaudited) | |||
| Revenues | 20,013 | 19,247 | 77,948 | 89,635 |
| Cost of sales | (9,701) | (9,475) | (37,820) | (45,690) |
| Gross profit | 10,312 | 9,772 | 40,128 | 43,945 |
| Gross profit % | 51.5% | 50.8% | 51.5% | 49.0% |
| Other operating income | 189 | 382 | 910 | 1,616 |
| Research & development expenses | (862) | (853) | (3,206) | (4,603) |
| Selling, general and administrative expenses | (5,312) | (5,423) | (20,812) | (25,849) |
| Indirect share based payments | (230) | (301) | (1,236) | (1,080) |
| Operating profit | 4,097 | 3,577 | 15,784 | 14,029 |
| Non-recurring items | -- | -- | -- | 46,474 |
| Financial income | 606 | 560 | 2,428 | 1,352 |
| Financial expenses | (2) | (69) | (12) | (495) |
| Net financial income | 604 | 491 | 2,416 | 857 |
| Profit before tax | 4,701 | 4,068 | 18,200 | 61,360 |
| Income tax expense on operating activities | (657) | (408) | (2,607) | (1,296) |
| Income tax credit on non-recurring items | -- | -- | -- | 354 |
| Profit for the period | 4,044 | 3,660 | 15,593 | 60,418 |
| Profit for the period (excluding non-recurring items) | 4,044 | 3,660 | 15,593 | 13,590 |
| Earnings per ADR (US cents) | 19.1 | 17.1 | 73.2 | 285.2 |
| Earnings per ADR (US cents) – excluding non-recurring items | 19.1 | 17.1 | 73.2 | 64.1 |
| Diluted earnings per ADR (US cents) | 18.4 | 16.6 | 70.2 | 278.9 |
| Diluted earnings per ADR (US cents) – excluding non-recurring items | 18.4 | 16.6 | 70.2 | 62.7 |
| Weighted average no. of ADRs used in computing basic earnings per ADR | 21,136,773 | 21,348,986 | 21,292,873 | 21,183,594 |
| 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 | |||
| Dec 31, | Sept 30, | Dec 31, | |
| 2011 | 2011 | 2010 | |
| US$ '000 | US$ '000 | US$ '000 | |
| (unaudited) | (unaudited) | (audited) | |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 7,626 | 7,603 | 5,999 |
| Goodwill and intangible assets | 45,390 | 43,515 | 37,248 |
| Deferred tax assets | 2,977 | 3,950 | 4,680 |
| Other assets | 493 | 509 | 11,623 |
| Total non-current assets | 56,486 | 55,577 | 59,550 |
| Current assets | |||
| Inventories | 19,838 | 19,478 | 17,576 |
| Trade and other receivables | 23,973 | 23,172 | 25,529 |
| Income tax receivable | 117 | 156 | 217 |
| Cash and cash equivalents | 71,085 | 71,128 | 58,002 |
| Total current assets | 115,013 | 113,934 | 101,324 |
| TOTAL ASSETS | 171,499 | 169,511 | 160,874 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to the equity holders of the parent | |||
| Share capital | 1,106 | 1,103 | 1,092 |
| Share premium | 2,736 | 2,683 | 161,599 |
| Accumulated surplus/(deficit) | 143,482 | 141,177 | (25,412) |
| Other reserves | 4,008 | 4,008 | 4,008 |
| Total equity | 151,332 | 148,971 | 141,287 |
| Current liabilities | |||
| Interest-bearing loans and borrowings | 108 | 152 | 162 |
| Income tax payable | 1,582 | 812 | 597 |
| Trade and other payables | 11,589 | 11,411 | 11,447 |
| Provisions | 50 | 50 | 50 |
| Total current liabilities | 13,329 | 12,425 | 12,256 |
| Non-current liabilities | |||
| Interest-bearing loans and borrowings | -- | -- | 111 |
| Other payables | 10 | 16 | 30 |
| Deferred tax liabilities | 6,828 | 8,099 | 7,190 |
| Total non-current liabilities | 6,838 | 8,115 | 7,331 |
| TOTAL LIABILITIES | 20,167 | 20,540 | 19,587 |
| TOTAL EQUITY AND LIABILITIES | 171,499 | 169,511 | 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 | Three Months | Year Ended | Year Ended |
| Ended | Ended | Dec 31, | Dec 31, | |
| Dec 31, | Dec 31, | 2011 | 2010 | |
| 2011 | 2010 | (unaudited) | (unaudited) | |
| (unaudited) | (unaudited) | |||
| Cash and cash equivalents at beginning of period | 71,128 | 53,802 | 58,002 | 6,078 |
| Operating cash flows before changes in working capital | 4,998 | 4,668 | 19,965 | 19,254 |
| Changes in working capital | (934) | 1,607 | (1,165) | 2,964 |
| Cash generated from operations | 4,064 | 6,275 | 18,800 | 22,218 |
| Net Interest and Income taxes received | 221 | 330 | 1,684 | 100 |
| Capital Expenditure & Financing (net) | (1,975) | (2,211) | (8,243) | (7,161) |
| Free cash flow | 2,310 | 4,394 | 12,241 | 15,157 |
| Proceeds from sale of Coagulation product line | -- | -- | 11,250 | 66,517 |
| Cash paid to acquire Phoenix Bio-tech | (333) | -- | (2,166) | -- |
| Repurchase of own company shares | (2,020) | -- | (6,093) | -- |
| Dividend Payment | -- | -- | (2,149) | -- |
| Repayment of bank debt | -- | (194) | -- | (29,750) |
| Cash and cash equivalents at end of period | 71,085 | 58,002 | 71,085 | 58,002 |
| 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). | ||||