Trinity Biotech Announces Results for Q3, 2019

Bray Co Wicklow, IRELAND

DUBLIN, Ireland, Oct. 16, 2019 (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 September 30, 2019.

Quarter 3 Results

Total revenues for Q3, 2019 were $24.6m, which is broken down as follows:

 Quarter 3Quarter 3Change
Clinical Laboratory20,70720,714(0.0%)

Point-of-Care revenues for Q3, 2019 increased from $3.0m to $3.9m. This was due to higher HIV sales in Africa, partially offset by a reduction in U.S. HIV revenues.

Meanwhile, Clinical Laboratory sales for the quarter were $20.7m which is flat compared to the same period last year.  However, excluding the impact of currency movements, due to the strength of the U.S. dollar versus a basket of currencies in which the company invoices, Q3 Clinical Laboratory revenues would have increased by over 1%. During the quarter, both Premier and Autoimmunity revenues continued to increase, though this was offset by lower Infectious Diseases revenues in the USA, including Lyme revenues. 

The gross margin for the quarter was 41.0%, which compares to 42.1% in Q3, 2018. This decrease was due to the impact of the higher number of instruments sold during the quarter, in addition to the strengthening of the US dollar, in particular against the Brazilian Real.

Research and Development expenses decreased from $1.3m in Q3, 2018 to $1.2m in Q3, 2019. Meanwhile, Selling, General and Administrative (SG&A) expenses increased from $7.1m to $7.3m in Q3, 2019. The increase in SG&A expenses was due to higher sales and marketing expenditure, particularly in relation to trade shows and other marketing activities plus higher professional fees associated with the settlement of the Company’s recent tax audit.

Operating profit increased by $0.1m for the quarter to $1.3m when compared to the same period last year. This was due to the impact of higher revenues being offset by a lower gross margin, whilst total indirect expenses remained flat during the quarter.

The cash based interest expense increased by $0.2m to $1.2m this quarter. Of this $1.0m was related to interest due on the Company’s Exchangeable Notes with the remaining $0.2m being financing charges arising on leased assets following the introduction of the new accounting standard for leases, IFRS 16 earlier this year.  Meanwhile, non-cash income of $0.1m was recognised in this quarter’s income statement, again in relation to the Exchangeable Notes.  This was due to a non-cash interest charge of $0.2m which was offset by a gain of $0.1m arising on a decrease in the fair value of the derivatives embedded in these notes.

Financial income for the quarter saw a reduction of less than $0.1m due to the lower level of cash deposits.

Overall, the Company recorded a profit of $25,000 for the quarter, which equates to a profit per share of 0.1 cents.  Fully diluted EPS for the quarter was 4.3 cents compared to 5.1 cents in Q3, 2018.

EBITDA before share option expense (EBITDASO) for the quarter was $3.1m.

Operating Profit1.3
Share Option Expense0.3


Commenting on the results, Kevin Tansley, Chief Financial Officer, said “Operating profit this quarter, at $1.3m was $0.1m higher than the equivalent period last year. Whilst revenues were 4% higher, this was largely offset by the impact of a lower gross margin. Overall indirect costs for the quarter were flat quarter on quarter with an increase in SG&A expenses being offset by lower R&D and share option expense. Meanwhile our cash balance for the quarter increased by $0.1m to $25.1m.”

Ronan O’Caoimh, CEO said “As anticipated revenues were stronger this quarter, being 4% higher than the equivalent period last year and over 9% higher than quarter 2 of this year.  Point-of-care revenues were higher due to increased sales of HIV products in Africa. Meanwhile, Autoimmune and Diabetes revenues also grew, with the latter being driven by particularly strong instrument placements during the quarter.  Further revenue growth will be derived from our entry into to the HIV screening market with our TrinSreen product, which we expect to submit to the WHO in January next, with approval to follow during 2020.  Given the quality of this product and our knowledge and experience of the African HIV market, we are ideally positioned to take a meaningful share of this substantial 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:

Trinity Biotech plc
Consolidated Income Statements
(US$000’s except share data) Three Months Three Months Nine Months Nine Months 
  Ended Ended Ended Ended 
  September 30, September 30, September 30, September 30, 
  2019 2018 2019 2018 
  (unaudited) (unaudited) (unaudited) (unaudited) 
Revenues 24,594 23,712 69,117 72,512 
Cost of sales (14,523)(13,731)(40,270)(41,296)
Gross profit  10,071 9,981 28,847 31,216 
Gross margin % 41.0%42.1%41.7%43.0%
Other operating income 21 27 67 76 
Research & development expenses (1,233)(1,292)(3,994)(3,983)
Selling, general and administrative expenses (7,274)(7,113)(20,455)(21,412)
Indirect share based payments (252)(367)(609)(1,130)
Operating profit  1,333 1,236 3,856 4,767 
Financial income 104 175 376 577 
Financial expenses (1,226)(1,061)(3,703)(3,378)
Net financing expense  (1,122)(886)(3,327)(2,801)
Profit before tax & non-cash financial income / (expense) 211 350 529 1,966 
Income tax expense (114)(76)(5,875)(366)
Profit/(Loss) for the period before non-cash financial income / (expense) 97 274 (5,346)1,600 
Non-cash financial (expense)/income (72)622 (245)268 
Profit/(Loss) after tax and once-off items 25 896 (5,591)1,868 
Earnings per ADR (US cents) 0.1 4.3 (26.8)8.9 
Earnings per ADR excluding non-cash financial income/expense (US cents) 0.5 1.3 (25.6)7.6 
Diluted earnings per ADR (US cents)* 4.3 5.1 (9.2)18.9 
Weighted average no. of ADRs used in computing basic earnings per ADR 20,901,703 20,901,703 20,901,703 20,902,386 
Weighted average no. of ADRs used in computing diluted earnings per ADR 25,467,517 26,157,644 25,467,517 26,158,326 

* 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
 September 30, June 30, Mar 31, Dec 31, 
 2019 2019 2019 2018 
 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 
 (unaudited) (unaudited) (unaudited) (unaudited) 
Non-current assets        
Property, plant and equipment26,306 26,293 26,586 5,362 
Goodwill and intangible assets57,948 56,079 54,377 52,951 
Deferred tax assets7,339 6,744 5,996 5,703 
Other assets555 591 535 558 
Total non-current assets92,148 89,707 87,494 64,574 
Current assets    
Inventories29,960 31,487 30,942 30,359 
Trade and other receivables24,811 24,333 23,568 24,441 
Income tax receivable1,243 1,187 1,209 1,584 
Cash and cash equivalents25,090 24,990 29,433 30,277 
Total current assets81,104 81,997 85,152 86,661 
TOTAL ASSETS173,252 171,704 172,646 151,235 
Equity attributable to the equity holders of the parent    
Share capital1,213 1,213 1,213 1,213 
Share premium16,187 16,187 16,187 16,187 
Accumulated surplus50,462 50,151 55,341 55,342 
Other reserves(28,930)(28,479)(28,573)(28,688)
Total equity38,932 39,072 44,168 44,054 
Current liabilities    
Income tax payable5,717 5,885 125 210 
Trade and other payables20,135 18,472 19,639 17,344 
Provisions50 50 50 50 
Total current liabilities25,902 24,407 19,814 17,604 
Non-current liabilities    
Exchangeable senior note payable81,865 81,793 81,942 81,620 
Other payables17,803 18,351 18,994 526 
Deferred tax liabilities8,750 8,081 7,728 7,431 
Total non-current liabilities108,418 108,225 108,664 89,577 
TOTAL LIABILITIES134,320 132,632 128,478 107,181 
TOTAL EQUITY AND LIABILITIES173,252 171,704 172,646 151,235 

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 Nine Months Nine Months 
 Ended Ended Ended Ended 
 September 30, September 30, September 30, September 30, 
 2019 2018 2019 2018 
 (unaudited) (unaudited) (unaudited) (unaudited) 
Cash and cash equivalents at beginning of period24,990 49,426 30,277 57,607 
Operating cash flows before changes in working capital3,184 3,445 9,495 9,907 
Changes in working capital1,631 (512)(475)(4,656)
Cash generated from operations4,815 2,933 9,020 5,251 
Net Interest and Income taxes (paid)/received(181)(125)34 49 
Capital Expenditure & Financing (net)(3,776)(4,308)(9,970)(12,247)
Payments for leases (IFRS 16)(758)- (2,273)- 
Free cash flow100 (1,500)(3,189)(6,947)
Share buyback- - - (434)
30 year Exchangeable Note interest payment- (205)(1,998)(2,505)
Purchase of Exchangeable Notes- (12,042)- (12,042)
Cash and cash equivalents at end of period25,090 35,679 25,090 35,679 

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 plcLytham Partners LLC
 Kevin TansleyJoe Diaz, Joe Dorame & Robert Blum