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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:

	2018	2019
	Quarter 3	Quarter 3	Change
	US$’000	US$’000	%
Point-of-Care	3,005	3,880	29.1%
Clinical Laboratory	20,707	20,714	(0.0%)
Total	23,712	24,594	3.7%

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.

	$m
Operating Profit	1.3
Depreciation	0.8
Amortisation	0.7
Share Option Expense	0.3
EBITDASO	3.1

Comments

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: www.trinitybiotech.com.

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)
ASSETS
Non-current assets
Property, plant and equipment	26,306		26,293		26,586		5,362
Goodwill and intangible assets	57,948		56,079		54,377		52,951
Deferred tax assets	7,339		6,744		5,996		5,703
Other assets	555		591		535		558
Total non-current assets	92,148		89,707		87,494		64,574
Current assets
Inventories	29,960		31,487		30,942		30,359
Trade and other receivables	24,811		24,333		23,568		24,441
Income tax receivable	1,243		1,187		1,209		1,584
Cash and cash equivalents	25,090		24,990		29,433		30,277
Total current assets	81,104		81,997		85,152		86,661
TOTAL ASSETS	173,252		171,704		172,646		151,235
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent
Share capital	1,213		1,213		1,213		1,213
Share premium	16,187		16,187		16,187		16,187
Accumulated surplus	50,462		50,151		55,341		55,342
Other reserves	(28,930	)	(28,479	)	(28,573	)	(28,688	)
Total equity	38,932		39,072		44,168		44,054
Current liabilities
Income tax payable	5,717		5,885		125		210
Trade and other payables	20,135		18,472		19,639		17,344
Provisions	50		50		50		50
Total current liabilities	25,902		24,407		19,814		17,604
Non-current liabilities
Exchangeable senior note payable	81,865		81,793		81,942		81,620
Other payables	17,803		18,351		18,994		526
Deferred tax liabilities	8,750		8,081		7,728		7,431
Total non-current liabilities	108,418		108,225		108,664		89,577
TOTAL LIABILITIES	134,320		132,632		128,478		107,181
TOTAL EQUITY AND LIABILITIES	173,252		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 period	24,990		49,426		30,277		57,607
Operating cash flows before changes in working capital	3,184		3,445		9,495		9,907
Changes in working capital	1,631		(512	)	(475	)	(4,656	)
Cash generated from operations	4,815		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 flow	100		(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 period	25,090		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 plc	Lytham Partners LLC
	Kevin Tansley	Joe Diaz, Joe Dorame & Robert Blum
	(353)-1-2769800	602-889-9700
	E-mail: kevin.tansley@trinitybiotech.com