Trinity Biotech Announces Results for Q3, 2020
Trinity Biotech reported Q3 2020 revenues of $32.0 million, showing a 30.2% increase from Q3 2019. Point-of-Care revenues fell 46.8% to $2.1 million, impacted by COVID-19 logistics, while Clinical Laboratory sales rose 44.6% to $29.9 million. Operating profit surged to $9.1 million, a sevenfold increase, due to higher revenues and improved gross margins of 52.4%. The company launched a Covid-19 IgG ELISA antibody test, awaiting FDA approval, and anticipates ongoing strong demand for Covid-related products. Net profit stood at $7.3 million, with earnings per share at 35.0 cents.
- Total revenues increased by 30.2% year-over-year.
- Clinical Laboratory sales rose by 44.6%, driven by demand for Covid-19 related products.
- Operating profit increased to $9.1 million, a sevenfold rise from Q3 2019.
- Gross margin improved to 52.4%, up from 41.0% in Q3 2019.
- Plans for a rapid antibody test in Q1 2021 with anticipated FDA EUA approval.
- Point-of-Care revenues decreased by 46.8% due to logistical constraints from Covid-19.
- HIV testing revenues continue to be affected by the pandemic, particularly in Africa.
- Sales of Diabetes instruments were temporarily deferred.
DUBLIN, Ireland, Nov. 17, 2020 (GLOBE NEWSWIRE) -- Trinity Biotech plc (Nasdaq: TRIB), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced results for the quarter ended September 30, 2020.
Quarter 3 Results
Total revenues for Q3, 2020 were
2019 Quarter 3 | 2020 Quarter 3 | Change | |
US$’000 | US$’000 | % | |
Point-of-Care | 3,880 | 2,065 | (46.8)% |
Clinical Laboratory | 20,714 | 29,949 | 44.6% |
Total | 24,594 | 32,014 | 30.2% |
Point-of-Care revenues for Q3, 2020 decreased from
Meanwhile, Clinical Laboratory sales for the quarter increased from
The gross margin for the quarter was
Research and Development expenses increased slightly from
Operating profit increased from
Financial income for the quarter showed a reduction reflecting the lower level of cash deposits and reduced interest rates. Meanwhile, Financial Expenses amounted to
Overall, the Company recorded a profit of
EBITDA before share option expense (EBITDASO) for the quarter was
$m | |
Operating Profit | 9.1 |
Depreciation | 0.4 |
Amortisation | 0.3 |
Share Option Expense | 0.2 |
EBITDASO | 10.0 |
Covid-19 Update
ELISA Antibody Test
During the quarter the Company filed its submission to the FDA for an Emergency Use Authorization (EUA) for its Covid-19 IgG ELISA antibody test and is currently awaiting authorisation. However, as permitted under EUA regulations the Company has already launched this product for sale in the USA pending authorisation being granted. Meanwhile, the Company expects to obtain a CE Mark for the product during November thus allowing sales to commence in the European Union.
This test determines which individuals within the population have been exposed to the SARS-CoV-2 virus (Covid-19) and demonstrates impressive performance with specificity in excess of
The product is being manufactured at our ELISA production facility in Jamestown, New York and is capable of being run on a wide range of instrumentation platforms allowing access to virtually every testing laboratory in the world.
Rapid Antibody Test
The Company is continuing to develop a rapid Point-of-Care Covid-19 test to detect antibodies to the virus that can be run in 12 minutes using one drop of blood procured by finger prick. Development of this product is expected to be completed by the middle of Q1, 2021 at which point it is intended to avail of the FDA’s EUA pathway in order allow its sale in the USA. As in the case of the ELISA antibody test this will be followed by seeking a CE mark for the product in order to provide access to EU markets.
Viral Transport Media
Sales of the Company’s Viral Transport Media product, Flextrans, which is used in the Covid-19 sample collection process for PCR molecular testing, remains very strong. Demand for this product is expected to continue for the remainder of 2020 and into 2021 as PCR testing volumes remain significant. Consequently, the Company has scaled up the manufacturing of this product at a number of its facilities.
Cost Saving Measures
As demand for the Company’s products is now returning towards pre-Covid levels, the vast majority of the Company’s employees have returned to work following extensive furloughing during Q2, 2020 and all plants are now operating normally. In the light of the continuation of the pandemic, the Company is keeping in place a range of cost-cutting measures designed to minimize discretionary expenditure. Meanwhile, the Company has commenced the process of seeking forgiveness for the
Appointment of Chief Financial Officer
The Company is pleased to announce the appointment of John Gillard as Chief Financial Officer of the Company. John qualified as a Chartered Accountant with PWC and has since gained a wealth of financial experience across a number of industry sectors including senior positions in Alphabet Inc./Google, SSE Plc and ION Investment Group.
Kevin Tansley will remain with the Company until the end of the year in order to allow for an effective transition.
Comments
Commenting on the results, Kevin Tansley, Chief Financial Officer, said “Very strong revenues and higher gross margins combined to deliver a sevenfold increase in operating profit this quarter. Whilst sales of Covid related products were the principal driving force behind this increase, we are also seeing the impact of the closure of our Carlsbad facility as well as the benefit of lower indirect costs due to cost control measures. Meanwhile EBITDASO also increased strongly to
Ronan O’Caoimh, CEO said “Revenues were very strong this quarter, particularly our Clinical Laboratory revenues which grew by
In addition to the strong growth in Covid related products, our remaining business rebounded strongly from Q2, 2020 levels which had been severely impacted by the first wave of the pandemic. However, during Q3, 2020 we still experienced the continuation of some these adverse impacts particularly in relation to fewer Diabetes instrument sales and lower levels of Autoimmunity testing. In addition, whilst HIV testing in Africa continues to be affected by the pandemic, the decrease in HIV revenues this quarter was more attributable to the particularly strong sales in Q3, 2019.
We expect that Q4, 2020 revenues will show a further return towards pre-Covid levels combined with continued strong demand for Covid related products, demand for which is anticipated to continue well into 2021 and potentially beyond.”
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 | Three Months Ended September 30, 2020 (unaudited) | Three Months Ended September 30, 2019 (unaudited) | Nine Months Ended September 30, 2020 (unaudited) | Nine Months Ended September 30, 2019 (unaudited) | |||||
Revenues | 32,014 | 24,594 | 69,215 | 69,117 | |||||
Cost of sales | (15,238) | (14,523) | (36,292) | (40,270) | |||||
Gross profit | 16,776 | 10,071 | 32,923 | 28,847 | |||||
Gross margin % | 52.4% | 41.0% | 47.6% | 41.7% | |||||
Other operating income | 3 | 21 | 20 | 67 | |||||
Research & development expenses | (1,265) | (1,233) | (3,796) | (3,994) | |||||
Selling, general and administrative expenses | (6,273) | (7,274) | (17,364) | (20,455) | |||||
Indirect share based payments | (156) | (252) | (504) | (609) | |||||
Operating profit | 9,085 | 1,333 | 11,279 | 3,856 | |||||
Financial income | 3 | 104 | 37 | 376 | |||||
Financial expenses | (1,215) | (1,226) | (3,668) | (3,703) | |||||
Net financing expense | (1,212) | (1,122) | (3,631) | (3,327) | |||||
Profit before tax & non-cash financial income / (expense) | 7,873 | 211 | 7,648 | 529 | |||||
Income tax expense | (387) | (114) | (549) | (5,875) | |||||
Profit/(Loss) for the period before non-cash financial income / (expense) | 7,486 | 97 | 7,099 | (5,346) | |||||
Non-cash financial (expense)/income | (161) | (72) | (1,038) | (245) | |||||
Once-off items – plant closure costs | - | - | (2,425) | - | |||||
Profit/(Loss) after tax and once-off items | 7,325 | 25 | 3,636 | (5,591) | |||||
Earnings/(Loss) per ADR (US cents) | 35.0 | 0.1 | 17.4 | (26.8) | |||||
Earnings/(Loss) per ADR excluding once-off charges & non-cash financial items (US cents) | 35.8 | 0.5 | 34.0 | (25.6) | |||||
Diluted earnings per ADR (US cents)* | 32.2 | 4.3 | 39.0 | (9.2) | |||||
Weighted average no. of ADRs used in computing basic earnings per ADR | 20,901,703 | 20,901,703 | 20,901,703 | 20,901,703 | |||||
Weighted average no. of ADRs used in computing diluted earnings per ADR | 26,321,307 | 25,467,517 | 25,894,218 | 25,467,517 | |||||
* 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. Diluted EPS is calculated excluding once-off charges & non-cash financial items.
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, 2020 US$ ‘000 (unaudited) | June 30, 2020 US$ ‘000 (unaudited) | Mar 31, 2020 US$ ‘000 (unaudited) | Dec 31, 2019 US$ ‘000 (unaudited) | |||||
ASSETS | ||||||||
Non-current assets | ||||||||
Property, plant and equipment | 9,462 | 9,297 | 9,210 | 9,290 | ||||
Goodwill and intangible assets | 47,876 | 46,751 | 45,498 | 43,654 | ||||
Deferred tax assets | 5,981 | 6,613 | 6,465 | 6,252 | ||||
Other assets | 387 | 378 | 485 | 485 | ||||
Total non-current assets | 63,706 | 63,039 | 61,658 | 59,681 | ||||
Current assets | ||||||||
Inventories | 29,607 | 31,473 | 32,671 | 32,021 | ||||
Trade and other receivables | 21,658 | 17,048 | 19,982 | 20,987 | ||||
Income tax receivable | 1,194 | 1,598 | 1,572 | 1,982 | ||||
Cash and cash equivalents | 19,910 | 15,570 | 13,244 | 16,400 | ||||
Total current assets | 72,369 | 65,689 | 67,469 | 71,390 | ||||
TOTAL ASSETS | 136,075 | 128,728 | 129,127 | 131,071 | ||||
EQUITY AND LIABILITIES | ||||||||
Equity attributable to the equity holders of the parent | ||||||||
Share capital | 1,213 | 1,224 | 1,224 | 1,224 | ||||
Share premium | 16,187 | 16,187 | 16,187 | 16,187 | ||||
Accumulated surplus | 15,665 | 8,194 | 9,431 | 11,514 | ||||
Other reserves | (25,994) | (26,317) | (26,074) | (24,212) | ||||
Total equity | 7,071 | (712) | 768 | 4,713 | ||||
Current liabilities | ||||||||
Income tax payable | 765 | 373 | 374 | 48 | ||||
Trade and other payables | 22,281 | 22,327 | 21,639 | 19,351 | ||||
Provisions | 50 | 50 | 50 | 50 | ||||
Total current liabilities | 23,096 | 22,750 | 22,063 | 19,449 | ||||
Non-current liabilities | ||||||||
Exchangeable senior note payable | 83,063 | 82,902 | 82,185 | 82,025 | ||||
Other payables | 16,786 | 16,531 | 17,039 | 17,745 | ||||
Deferred tax liabilities | 6,059 | 7,257 | 7,072 | 7,139 | ||||
Total non-current liabilities | 105,908 | 106,690 | 106,296 | 106,909 | ||||
TOTAL LIABILITIES | 129,004 | 129,440 | 128,359 | 126,358 | ||||
TOTAL EQUITY AND LIABILITIES | 136,075 | 128,728 | 129,127 | 131,071 |
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 | Three Months Ended September 30, 2020 (unaudited) | Three Months Ended September 30, 2019 (unaudited) | Nine Months Ended September 30, 2020 (unaudited) | Nine Months Ended September 30, 2019 (unaudited) | ||||
Cash and cash equivalents at beginning of period | 15,570 | 24,990 | 16,400 | 30,277 | ||||
Operating cash flows before changes in working capital | 9,722 | 3,184 | 13,501 | 9,495 | ||||
Changes in working capital | (2,551) | 1,631 | (2,476) | (475) | ||||
Cash generated from operations | 7,171 | 4,815 | 11,025 | 9,020 | ||||
Net Interest and Income taxes (paid)/received | (141) | (181) | 256 | 34 | ||||
Capital Expenditure & Financing (net) | (1,900) | (3,776) | (6,820) | (9,970) | ||||
Payments for leases (IFRS 16) | (790) | (758) | (2,361) | (2,273) | ||||
Free cash flow | 4,340 | 100 | 2,100 | (3,189) | ||||
Payment of HIV/2 License Fee | - | - | (1,112) | - | ||||
30 year Exchangeable Note interest payment | - | - | (1,998) | (1,998) | ||||
Proceeds received under Paycheck Protection Program | - | - | 4,520 | - | ||||
Cash and cash equivalents at end of period | 19,910 | 25,090 | 19,910 | 25,090 | ||||
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
FAQ
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