Trinity Biotech Announces Results for Fiscal Year 2012

Profit After Tax Increases by 11% to $17.3m


DUBLIN, Ireland, March 5, 2013 (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 fiscal year 2012 and for the quarter ended December 31, 2012.

Fiscal year 2012 Results

Total revenues for fiscal year 2012 were $82.5m versus $77.9m in 2011, thus representing an increase of 6% year on year.

Point of care revenues for the year grew by 16%, from $16.6m to $19.2m driven by higher HIV sales in Africa. Meanwhile, Clinical Laboratory revenues grew by over 3%, due to higher Premier sales, though this was partially offset by adverse foreign exchange movements and weaker Fitzgerald sales.

Revenues for Q4 and fiscal year, 2012 by key product area were as follows:

       
 2011
Quarter 4
2012
Quarter 4
Q4 2012 vs
Q4 2011
Full Year
2011
Full Year
2012
Full Year
2012 vs 2011
 US$'000US$'000%US$'000US$'000%
Point of Care 3,943 4,872 23.6% 16,562 19,154 15.7%
       
Clinical Laboratory 16,070 15,952 (0.7%) 61,386 63,356 3.2%
       
Total20,01320,8244.1%77,94882,5105.9%

The other key achievements in 2012 were as follows:

  • Operating margin increased from 20.2% to 20.8%.
  • Profit after tax increased from $15.6m to $17.3m, representing an annual growth rate of 11%.
  • EPS increased by 11%, from 73 cents to 81 cents.
  • The annual dividend was increased by 50% from 10 cents per ADR to 15 cents per ADR.
  • Share buybacks during the year amounted to $5.3m bringing the total repurchases under the scheme to $11.4m.
  • In the first full year of launch, over 200 Premier instruments were sold in the USA, Europe (through Menarini), South-East Asia, South America and Turkey.
  • The acquisition of Fiomi Diagnostics has given Trinity access to the $1 billion point of care cardiac market. As a technology, it also has applications in many fields beyond cardiac such as infectious diseases, autoimmune, allergy and veterinary, amongst others.
  • Significant progress has been made in the development the company's new range of point of care infectious diseases tests which will progressively become available for sale in Europe and the USA in 2013.

Quarter 4 Results                                                                                          

Total revenues for Q4, 2012 were $20.8m compared to $20.0m in Q4, 2011, representing an increase of 4%.

Point of Care revenues for Q4, 2012 increased by over 23% to $4.9m versus $3.9m in Q4, 2011. As in previous quarters in 2012, the increase has mainly been driven by sustained growth in HIV sales in Eastern Africa.

Clinical Laboratory revenues for the quarter were broadly flat at $16m. Strong Premier sales were offset by the impact of foreign exchange movements (i.e. weaker Euro) and lower Lyme sales due to an earlier end to the 2012 Lyme season due to adverse weather conditions.

Research and Development expenses were $0.8m thus representing a slight decrease compared to the corresponding period last year. Similarly, Selling, General and Administrative (SG&A) expenses have also fallen, from over $5.3m to $5.2m. In both cases the fall is due to the weaker Euro and serves to offset the adverse impact of currency movements on revenues.

Operating profit for the quarter was $4.4m, which compares favourably to the $4.1m achieved in Q4, 2011. Operating margins have now reached over 21% for the first time, whereas the equivalent operating margin in Q4, 2011 was 20.5%.

The tax charge this quarter was $0.4m which represents an effective tax rate of 9% versus 14% in the comparable quarter.

Profit After Tax has increased from $4.0m to $4.5m, an increase of 11% over Q4, 2011. Meanwhile, EPS for the quarter increased by 9% from 19.1 cents to 20.8 cents.

Free Cash Flows for the quarter were over $1.7m, though this was largely offset by share repurchases of $1.2m. The consequent net result was an increase in cash balances from $74.4m to $74.9m.

Recent Developments

Premier

During the quarter the Company shipped 65 of our new Premier instruments. This compares favourably to 54 in Q3, 2012 and brings the number of instruments that were shipped during 2012 to 202, thus meeting our target of in excess of 200 instruments for the year. The company is now awaiting regulatory approval for the instrument in China which is expected to be received in the coming weeks.

Fiomi Update

The company is making significant progress in the development of its new cardiac point of care tests. With regard to Troponin I, we are currently focusing on completing development of the test with a view to meeting the new FDA guidelines for Troponin I. We are also preparing for the forthcoming CE marking trials which will take place at multiple sites in Europe, commencing in Q2, 2013. CE marking remains on target for Q4, 2013 after which sales in the European market will commence. FDA trials are due to commence in Q3, 2013 with submission to the FDA scheduled for Q1, 2014.

Meanwhile, the development of the company's BNP test is also being progressed. The test is exhibiting very high quality results and CE marking is on target to be achieved in early 2014 with FDA approval expected in early 2015.

Share buyback

During the quarter we repurchased 100,000 ADRs at an average price of $12.47 as part of our share buyback program. The total amount spent on repurchases during the quarter was approximately $1.2m. This brings the total spent since the program began to $11.4m.

Comments

Ronan O'Caoimh, CEO, stated, "2012 was an exceptional year for Trinity Biotech, both from a financial and strategic perspective:

  • We achieved our target of placing over 200 Premier instruments in the first full year of launch and look forward to an even more successful 2013 as we continue to grow in our existing markets, whilst also benefitting from the opportunities that the forthcoming regulatory approvals in China and Brazil will bring.
  • Our acquisition of Fiomi Diagnostics marks the entry of the company into the $1 billion cardiac point of care market. We are now approaching design freeze on our new Troponin I test, which, we believe, will be the first such point of care test capable of meeting the new FDA Troponin I guidelines. We are confident that the Troponin I product will receive CE marking before the end of this year, after which we will immediately commence selling in Europe. We will then quickly submit the product for FDA approval. We believe that this Troponin I test and our BNP test will be transformational for the company.
  • These developments come against a backdrop of growing revenues and record earnings. The 11% growth in annual profits from $15.6m to $17.3m was mirrored by an 11% growth in EPS, which increased from 73 cents to 81 cents. This was achieved through a combination of revenue growth and the improvement of operating margins to 20.8%."

Commenting on the Q4, 2012 results, Kevin Tansley, Chief Financial Officer, said, "Quarter 4 was another very successful quarter for the company. We have continued our trend of growing profits with an increase of 11% to $4.5m this quarter. Similarly, EPS grew from 19.1 cents to 20.8 cents. Meanwhile, operating margins reached over 21% for the quarter – a new milestone for the company. Free cash flows of over $1.7m were achieved despite a significant increase in capital expenditure as the development of the Fiomi cardiac platform gathers pace."

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
Ended
Dec 31,
2012
(unaudited)
Three Months
Ended
Dec 31,
2011
(unaudited)
Year
Ended
Dec 31,
2012
(unaudited)
Year
Ended
Dec 31,
2011
(audited) 
      
Revenues 20,82420,01382,51077,948
      
Cost of sales  (10,290) (9,701) (40,257) (37,820)
      
Gross profit  10,53410,31242,25340,128
Gross profit % 50.6%51.5%51.2%51.5%
      
Other operating income  93 189 468 910
      
Research & development expenses  (765) (862) (3,130) (3,206)
Selling, general and administrative expenses  (5,159) (5,312) (20,750) (20,812)
Indirect share based payments  (314) (230) (1,675) (1,236)
      
Operating profit
 
 4,3894,09717,16615,784
      
Financial income  532 606 2,280 2,428
Financial expenses  (26) (2) (88) (12)
Net financial income  506 604 2,192 2,416
      
Profit before tax  4,8954,70119,35818,200
      
Income tax expense  (426) (657) (2,017) (2,607)
Profit for the period  4,4694,04417,34115,593
      
Earnings per ADR (US cents)  20.8 19.1 81.0 73.2
Diluted earnings per ADR (US cents)  19.8 18.4 77.3 70.2
 
Weighted average no. of ADRs used in computing basic earnings per ADR
  
21,476,973
 
21,136,773
 
21,418,821
 
21,292,873
Weighted average no. of ADRs used in computing diluted earnings per ADR  
22,563,207
 
22,036,512
 
22,443,404
 
22,228,149

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,
2012
US$ '000
(unaudited)
Sept 30,
2012
US$ '000
(unaudited)
Dec 31,
2011
US$ '000
(audited)
ASSETS   
Non-current assets   
Property, plant and equipment 8,883 8,618 7,626
Goodwill and intangible assets 73,046 65,644 45,390
Deferred tax assets 4,073 3,106 2,977
Other assets 908 786 493
Total non-current assets 86,910 78,154 56,486
    
Current assets   
Inventories 20,757 21,427 19,838
Trade and other receivables 14,457 15,569 23,973
Income tax receivable 336 302 117
Cash and cash equivalents 74,947 74,455 71,085
Total current assets 110,497 111,753 115,013
    
TOTAL ASSETS 197,407 189,907 171,499
    
EQUITY AND LIABILITIES   
Equity attributable to the equity holders of the parent   
Share capital 1,134 1,125 1,106
Share premium 5,138 4,819 2,736
Accumulated surplus 158,973 155,102 143,489
Other reserves 4,135 4,011 4,001
Total equity 169,380 165,057 151,332
    
Current liabilities   
Interest-bearing loans and borrowings -- -- 108
Income tax payable 1,092 2,061 1,582
Trade and other payables 12,824 11,795 11,589
Provisions 50 50 50
Total current liabilities 13,966 13,906 13,329
    
Non-current liabilities   
Other payables 3,318 3,291 10
Deferred tax liabilities 10,743 7,653 6,828
Total non-current liabilities 14,061 10,944 6,838
    
TOTAL LIABILITIES 28,027 24,850 20,167
    
TOTAL EQUITY AND LIABILITIES 197,407 189,907 171,499

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
Ended
Dec 31,
2012
(unaudited)
Three Months
Ended
Dec 31,
2011
(unaudited)
Year
Ended
Dec 31,
2012
(unaudited)
Year
Ended
Dec 31,
2011
(unaudited)
     
Cash and cash equivalents at beginning of period74,45571,12871,08558,002
     
Operating cash flows before changes in working capital 5,973 4,998 22,285 19,965
Changes in working capital (81) (934) (3,367) (1,165)
Cash generated from operations 5,892 4,064 18,918 18,800
     
Net Interest received and Income taxes 83 221 1,138 1,684
     
Capital Expenditure & Financing (net) (4,236) (1,975) (12,920) (8,243)
     
Free cash flow 1,739 2,310 7,136 12,241
     
Proceeds from sale of Coagulation product line -- -- 11,250 11,250
     
Cash paid to acquire Phoenix Bio-tech -- (333) (333) (2,166)
     
Cash paid to acquire Fiomi Diagnostics -- -- (5,624) --
     
Dividend Payment -- -- (3,223) (2,149)
     
Repurchase of own company shares (1,247) (2,020) (5,344) (6,093)
     
Cash and cash equivalents at end of period74,94771,08574,94771,085
     

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
         Kevin Tansley
         (353)-1-2769800
         E-mail: kevin.tansley@trinitybiotech.com
         
         Lytham Partners LLC
         Joe Diaz, Joe Dorame & Robert Blum
         602-889-9700

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