Trinity Biotech Announces Second Quarter 2009 Financial Results

DUBLIN, IRELAND--(Marketwire - July 23, 2009) - 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 June 30, 2009.

On a constant currency basis, revenues for the quarter decreased to $32.3 million from $34.3 million, compared to the same period last year, representing a difference of 5.7%. Point-of-Care revenues increased substantially, growing by 50%, largely driven by increased HIV sales in the key markets of Africa and the USA. This was offset by a 13% decrease in Clinical Laboratory revenues, primarily attributable to a fall in haemostasis revenues in advance of the launch of Destiny Max and lower Fitzgerald revenues.

Revenues for the three months by key product area were as follows :

 2008 2008 2009 % Increase/ Quarter 2 Quarter 2 Quarter 2 (decrease) Adjusted* US$'000 US$'000 US$'000 Total Clinical Laboratory 32,260 30,329 26,394 (13.0%) Point-of-Care 4,036 3,938 5,908 50% Total 36,296 34,267 32,302 (5.7%) * Revenues for the second quarter of 2008 have been adjusted to reflect exchange rates prevailing in the second quarter of 2009 

Gross profit for the quarter amounted to $14.7 million representing a gross margin of approximately 46% which is an improvement of 0.9% over the same period in 2008. Research and Development expenses amounted to $1.8m, representing a decrease of 8%. SG&A expenses have fallen by 24% from $11.8 million in the second quarter of 2008 to $9.0 million in the current quarter. This continues the trend of lower indirect costs due to the impact of the cost saving measures, lower depreciation and amortization charges and more favourable exchange rates. The tax charge for the quarter was $0.5 million representing an effective tax rate of 14.0%.

Operating profit for the quarter amounted to $3.8 million, which represents an increase of 66% over the second quarter of 2008. Net income for the quarter has doubled to $3.0 million, or $0.14 per share (ADR) from $1.5 million, or $0.07 per share (ADR) versus the second quarter of 2008.

During the quarter, the Company generated more than $4 million of cash from operations and free cash flow of more than $2.2 million thus accounting for the increase in cash from $2.6m at the end of the first quarter of 2009 to $4.8m at the end of this quarter.

Ronan O’Caoimh, CEO, commented, “We are pleased with the results this quarter. Whilst revenues have fallen by 5.7% when compared to quarter 2, 2008, this was in line with our expectations. This was largely attributable to a decline in our haemostasis revenues which we had anticipated in advance of Destiny Max being launched. On the other hand, we have continued to see particularly strong growth in our point-of-care revenues, which have increased by 50% quarter on quarter. Also, when compared with quarter 1 2009, this quarter’s revenues have grown by 2.7%.

“From a profitability perspective I am particularly pleased to announce a profit of $3 million for the quarter, the first time this has been achieved in the history of the Company.

“Since quarter end we have achieved two key milestones. We obtained FDA approval for our Destiny Max analyzer and have now commenced our US market launch. The USA represents our largest haemostasis market and this represents a major step forward for us. Also since quarter end, following the successful completion of independent clinical trials, we have made our CLIA submission for Tri-stat, our new HbA1c point-of-care device.”

Commenting on the results, Kevin Tansley, Chief Financial Officer, said, “Quarter 2 represents another strong quarter for Trinity Biotech. We have seen our profits double when compared with the equivalent quarter last year. With an EPS of $0.14 cent this quarter, this brings our year to date EPS to $0.26 cent, which is considerably ahead of analyst expectations. We also had a strong quarter from a cash generation perspective which reflects the focus that we have placed on cost control.”

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 blood coagulation disorders, 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 Three Months Three Months Six Months Six Months share data) Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2009 2008 2009 2008 (unaudited) (unaudited) (unaudited) (unaudited) Revenues 32,302 36,296 63,408 70,548 Cost of sales (excluding service costs) (16,306) (18,387) (31,729) (35,273) ----------- ----------- ----------- ----------- Gross profit (excluding service costs) 15,996 17,909 31,679 35,275 Gross profit % (excluding service costs) 49.5% 49.3% 50.0% 50.0% ----------- ----------- ----------- ----------- Cost of sales - instrument servicing costs (1,256) (1,674) (2,626) (3,277) Gross profit (including service costs) 14,740 16,235 29,053 31,998 Gross profit % (including service costs) 45.6% 44.7% 45.8% 45.4% Other operating income 68 99 272 188 Research & development expenses (1,781) (1,938) (3,557) (3,784) Selling, general and administrative expenses (9,011) (11,848) (18,612) (23,884) Indirect share based payments (175) (235) (273) (426) ----------- ----------- ----------- ----------- Operating profit 3,841 2,313 6,883 4,092 Financial income 3 28 4 38 Financial expenses (351) (552) (640) (1,227) ----------- ----------- ----------- ----------- Net financing costs (348) (524) (636) (1,189) ----------- ----------- ----------- ----------- Profit before tax 3,493 1,789 6,247 2,903 Income tax expense (488) (280) (738) (345) ----------- ----------- ----------- ----------- Profit for the period 3,005 1,509 5,509 2,558 Earnings per ADR (US cents) 14.4 7.3 26.4 12.9 Diluted earnings per ADR (US cents) 14.4 7.3 26.4 12.9 Weighted average no. of ADR’s used in Computing earnings per ADR. 20,856,868 20,634,975 20,855,638 19,837,083 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 June March December 30, 2009 31, 2009 31, 2008 US$ ‘000 US$ ‘000 US$ ‘000 (unaudited) (unaudited) (audited) ASSETS Non-current assets Property, plant and equipment 11,908 11,489 11,836 Goodwill and intangible assets 41,029 39,750 38,544 Deferred tax assets 3,099 2,879 3,051 Other assets 661 773 877 ----------- ----------- ----------- Total non-current assets 56,697 54,891 54,308 ----------- ----------- ----------- Current assets Inventories 41,667 40,984 42,317 Trade and other receivables 27,385 25,950 27,418 Derivative Financial Instruments 344 - - Income tax receivable 329 324 282 Cash and cash equivalents 4,791 2,589 5,184 ----------- ----------- ----------- Total current assets 74,516 69,847 75,201 ----------- ----------- ----------- ----------- ----------- ----------- TOTAL ASSETS 131,213 124,738 129,509 =========== =========== =========== EQUITY AND LIABILITIES Equity attributable to the equity holders of the parent Share capital 1,072 1,070 1,070 Share premium 160,031 159,854 159,864 Accumulated deficit (93,698) (96,881) (99,493) Translation reserve (108) (1,109) (9) Other reserves 4,822 4,488 4,473 ----------- ----------- ----------- Total equity 72,119 67,422 65,905 ----------- ----------- ----------- Current liabilities Interest-bearing loans and borrowings 13,943 13,835 12,656 Income tax payable 35 54 5 Trade and other payables 19,279 18,677 22,969 Derivative Financial Instruments - 13 27 Provisions 50 50 50 ----------- ----------- ----------- Total current liabilities 33,307 32,629 35,707 ----------- ----------- ----------- Non-current liabilities Interest-bearing loans and borrowings 20,609 20,251 23,465 Other payables 59 59 59 Deferred tax liabilities 5,119 4,377 4,373 ----------- ----------- ----------- Total non-current liabilities 25,787 24,687 27,897 ----------- ----------- ----------- ----------- ----------- ----------- TOTAL LIABILITIES 59,094 57,316 63,604 ----------- ----------- ----------- ----------- ----------- ----------- TOTAL EQUITY AND LIABILITIES 131,213 124,738 129,509 =========== =========== =========== 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 Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2009 2008 2009 2008 US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000 (unaudited) (unaudited) (unaudited) (unaudited) Cash and cash equivalents at beginning of period 2,589 3,075 5,184 8,700 Operating cash flows before changes in working capital 4,928 4,603 9,009 8,514 Changes in Working Capital (707) (712) (2,476) (2,778) ----------- ----------- ----------- ----------- Cash generated from operations 4,221 3,891 6,533 5,736 Net Interest and Income taxes paid (133) (901) (393) (1,565) Capital Expenditure (Net) (1,886) (3,638) (4,387) (6,261) Deferred consideration to acquire subsidiaries and businesses - (2,802) - (2,802) Proceeds from Issue of shares (Net) - 6,621 - 6,621 Repayment of bank debt - - (2,146) (4,183) ----------- ----------- ----------- ----------- Cash and cash equivalents at end of period 4,791 6,246 4,791 6,246 ----------- ----------- ----------- -----------