Trinity Biotech plc (ADR) (Public, NASDAQ:TRIB)
Trinity Biotech Announces Quarter 3 Results Revenues Increase 25% and EBITDA Exceeds US$5 Million October 26, 2006 -- Trinity Biotech plc (NASDAQ: TRIB) (DUBLIN: TRIB.I), 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, 2006. Revenues in quarter 3 2006 increased 25% to US$33.3 million compared to US$26.7 million in quarter 3 2005. During the same period operating profit before share option expenses increased from US$2.2 million to US$3.3 million. Profit for the period increased from US$1.5 million in quarter 3 2005 to US$2.6 million, representing an increase of 71%. Revenues for the nine months by key product area were as follows : 2005 2006 --------------- --------------- Q1 Q3 Q1 Q3 --------------- --------------- US$000 US$000 % Increase --------------- --------------- ----------- -- --------------- --------------- ----------- -- Clinical Chemistry 6,731 11,128 65.3% --------------- --------------- ----------- -- Haemostasis 21,490 29,828 38.8 % --------------- --------------- ----------- -- Infectious Diseases 33,130 32,109 (3.1)% --------------- --------------- ----------- -- Point of Care 9,157 12,281 34.1 % --------------- --------------- ----------- -- Total 70,508 85,346 21.0 % --------------- --------------- ----------- -- Revenues for the nine months by geographical location were as follows : 2005 2006 --------------- --------------- Q1 Q3 Q1 Q3 --------------- --------------- US$000 US$000 % Increase --------------- --------------- ----------- --- --------------- --------------- ----------- --- USA 36,200 42,402 17.1% --------------- --------------- ----------- --- Europe 18,339 23,957 30.6% --------------- --------------- ----------- --- Asia / Africa 15,969 18,987 18.9% --------------- --------------- ----------- --- Total 70,508 85,346 21.0% --------------- --------------- ----------- --- Gross profit for the quarter amounted to US$15.3 million, representing a gross margin of 46.0%. This compares to a gross margin of 48.1% for the same period in 2005 and 48.2% for Quarter 2. The reduction in gross margin is associated with the recent bioMerieux haemostasis acquisition which is comparable with the Trinity haemostasis business and has inherently lower gross margins than the Point of Care, Clinical Chemistry and Infectious Disease product lines. R&D expenses are broadly consistent with the same period last year at US$1.7 million. The increase in selling, general and administrative expenses from US$9.2 million in 2005 to US$10.3 million in the current quarter is primarily attributable to the impact of the recent bioMerieux haemostasis acquisition. The net effect of the above was an operating profit before share options of US$3.3 million for the quarter compared to US$2.2 million for the same period last year which represents margins of 9.9% and 8.1% respectively. Commenting on the results, Rory Nealon, Chief Financial Officer, said, "Our operating margin has increased from 8.1% in 2005 and 8.6% last quarter to 9.9% in the current quarter. This is reflected in our EPS which has increased by 18% from 11.4 cents in the previous quarter to 13.5 cents this quarter and by 38% over the same period in 2005. This significant improvement in profitability has primarily resulted from the increased sales volumes created by the recent bioMerieux acquisition. It has also resulted in an increase in our EBITDA from US$3.6 million last quarter to US$5.1 million in the current quarter." Ronan O'Caoimh, CEO, commented, "The completion of the bioMerieux haemostasis acquisition has had a significant impact on the profitability and scale of Trinity. The Haemostasis product line represented 35% of total sales in quarter 3 and we anticipate that this will continue to grow as the bioMerieux related revenues increase in quarter 4. We are also pleased to announce that we have just acquired the French distribution business of Nephrotek for a consideration of US$730,000. The acquired distribution business is based in Paris and currently distributes Trinity's product lines to the French market. This acquisition will enable Trinity to sell directly in France which is one of the largest diagnostics markets in Europe. Trinity is now selling directly in the USA, Germany, the UK and France and through a combination of distributors in approximately 75 other countries around the world. Trinity plans to integrate the French activities of its recently acquired bioMérieux haemostasis business into this new operation which will increase the margins earned by Trinity on these sales and enable us to further drive growth within this market. Trinity is also pleased to announce that it has recently recruited Mr. David Oxley as Corporate Vice President of Point of Care and OTC Business. David was previously VP of Government Affairs with Orasure. 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 over 500 diagnostic products for the point-of-care and clinical laboratory segments of the diagnostic market. The broad line of test kits are used to detect infectious diseases, sexually transmitted diseases, blood coagulation disorders, and autoimmune diseases. Trinity Biotech sells worldwide in over 80 countries through its own salesforce and a network of international distributors and strategic partners. For further information please see the Company's website: www.trinitybiotech.com. Trinity Biotech plc Consolidated Statements of Income (US$000's except Three Months Three Months Nine Months Nine Months share data) Ended Ended Ended Ended September September September September 30, 2006 30, 2005 30, 2006 30, 2005 (unaudited) (unaudited) (unaudited) (unaudited) Revenues 33,319 26,740 85,346 70,508 Cost of sales (17,962) (13,842) (44,296) (36,470) Cost of sales inventory write off - - (5,800) - Cost of sales share based payments (23) (29) (72) (80) ------------ ------------ ------------ -------- ---- Gross profit 15,334 12,869 35,178 33,958 Gross profit before inventory write off 15,334 12,869 40,978 33,958 Other operating income 36 60 157 186 Research & development expenses (1,738) (1,610) (4,696) (4,290) S,G&A expenses (10,344) (9,172) (28,904) (24,653) Indirect share based payments (330) (307) (915) (966) ------------ ------------ ------------ -------- ---- Operating profit 2,958 1,840 820 4,235 Operating profit before inventory write off 2,958 1,840 6,620 4,235 Financial income 331 70 796 300 Financial expenses (982) (270) (1,724) (731) ------------ ------------ ------------ -------- ---- Net financing costs (651) (200) (928) (431) ------------ ------------ ------------ -------- ---- Profit / (Loss) before tax 2,307 1,640 (108) 3,804 Income tax (expense) / credit 244 (148) 1,786 (392) ------------ ------------ ------------ -------- ---- Profit / (Loss) for the period 2,551 1,492 1,678 3,412 Profit for the period before inventory write off 2,551 1,492 5,906 3,412 Earnings per ADR 13.8 10.0 9.7 23.5 Earnings per ADR before inventory write off 13.8 10.0 34.1 23.5 Diluted earnings per ADR 13.5 9.6 9.7 23.0 Diluted earnings before inventory write off 13.5 9.6 33.2 23.0 Weighted average no. of shares used in computing earnings per share 73,995,302 59,402,312 69,260,423 58,032,535 The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company's accounting policies but does not constitute an interim financial report as defined in IAS34 (Interim Financial Reporting). Trinity Biotech plc Consolidated Balance Sheet December 31, September 30, 2005 2006 US$ `000 US$ `000 (unaudited) ASSETS Non-current assets Property, plant and equipment 19,202 21,824 Goodwill and intangible assets 85,197 119,753 Deferred tax assets 3,277 6,713 Other assets 61 61 -------------- --------- ----- Total non-current assets 107,737 148,351 -------------- --------- ----- Current assets Inventories 36,450 41,592 Trade and other receivables 20,885 34,937 Income tax receivable 649 625 Financial assets restricted cash 9,000 15,500 Cash and cash equivalents 9,881 4,572 Derivative financial instruments - 67 -------------- --------- ----- Total current assets 76,865 97,293 -------------- --------- ----- -------------- --------- ----- TOTAL ASSETS 184,602 245,644 ============== ============== EQUITY AND LIABILITIES Equity attributable to the equity holders of the parent Share capital 830 967 Share premium 124,227 149,804 Retained earnings 6,280 8,946 Translation reserve (1,622) (657) Other reserves 3,903 4,014 -------------- --------- ----- Total equity 133,618 163,074 -------------- --------- ----- Current liabilities Interest-bearing loans and borrowings 7,720 10,415 Convertible notes interest bearing 7,203 3,657 Income tax payable 260 1,816 Trade and other payables 12,768 19,336 Other financial liabilities 3,707 3,074 Derivative financial instruments 44 - Provisions 199 100 -------------- --------- ----- Total current liabilities 31,901 38,398 -------------- --------- ----- Non-current liabilities Interest-bearing loans and borrowings 10,369 32,970 Convertible notes interest bearing 1,836 - Other tax payable 48 52 Other payables 102 2,632 Deferred tax liabilities 6,728 8,518 -------------- --------- ----- Total non-current liabilities 19,083 44,172 -------------- --------- ----- TOTAL LIABILITIES 50,984 82,570 -------------- --------- ----- -------------- --------- ----- TOTAL EQUITY AND LIABILITIES 184,602 245,644 ============== ============== The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company's accounting policies but does not constitute an interim financial report as defined in IAS34 (Interim Financial Reporting). http://tech.groups.yahoo.com/group/biotech-news/ http://www.arizonabiotech.com/ http://www.azhttp.com/ http://www.arizonabiotech.com/ http://groups.yahoo.com/group/biotech-news/ http://www.arizonaentrepreneurs.com/ http://www.azhttp.com/ Yahoo! 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