SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 

 
F O R M  6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July, 2018

TRINITY BIOTECH PLC
(Name of Registrant)

IDA Business Park
Bray, Co. Wicklow
Ireland
 (Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):           

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):           

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes ☐          No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                 


   
   
Press Release dated July 19, 2018
 
   
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
 
 
Trinity Biotech Announces Results for Q2, 2018
 
DUBLIN, Ireland (July 19, 2018)…. 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, 2018.

Quarter 2 Results

Total revenues for Q2, 2018 were $25.0m compared to $25.4m in Q2, 2017.
 
   
2017
Quarter 2
   
2018
Quarter 2
   
Increase/
(decrease)
 
   
US$’000
   
US$’000
   
%
 
Point-of-Care
   
4,350
     
4,019
     
(7.6
)%
Clinical Laboratory
   
21,098
     
20,983
     
(0.6
)%
Total
   
25,448
     
25,002
     
(1.8
)%
 
Point-of-Care revenues for Q2, 2018 decreased by $0.3m. This was attributable to lower sales of HIV products in Africa due to the normal fluctuations which characterise that market, in addition to reduced HIV sales in the USA due to continued lower federal government spending in this area.
 
Meanwhile, Clinical Laboratory sales for the quarter were $21.0m versus $21.1m for the corresponding period last year, thus representing a decrease of 0.6%.  This was due to higher diabetes and autoimmunity revenues being offset by lower Lyme revenues as a result of severe winter weather conditions in the north-eastern USA which extended into Spring thus delaying the start of the Lyme season.
 
The gross margin for the quarter was 43.2%, which compares favourably to 42.5% achieved in Q2, 2017 This improvement was partly attributable to cost savings implemented during the quarter.

Research and Development expenses increased marginally from $1.3m in Q2, 2017 to $1.4m for the current quarter, whilst Selling, General and Administrative (SG&A) expenses decreased from $7.6m to $7.4m in the same period. Share option expense for the quarter increased from $0.1m to $0.3m due to an unusually low charge in Q2 of last year and caused total indirect costs to increase from $9.0m to $9.1m.

Operating profit fell slightly from $1.8m to $1.7m due to the increase in indirect costs, which was driven entirely by a higher share option charge this quarter.

Financial income for the quarter remained constant at $0.2m whilst interest payable, mainly arising on the Company’s exchangeable notes, was also static at $1.2m.  Non-cash expenses were immaterial this quarter as the gain of almost $0.2m arising on a decrease in the fair value of the embedded derivatives associated with the exchangeable notes was offset by a non-cash interest charge of $0.2m.

The Company recorded a profit, excluding non-cash items of $0.6m for the quarter, which equates to earnings per share of 2.9 cents compared to 3.1 cents in the equivalent period last year. Fully diluted EPS for the quarter was 6.7 cents compared to 6.8 cents in Q2, 2017.

EBITDA before share option expense for the quarter was $2.9m.


Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said “Operating profit fell slightly from $1.8m to $1.7m when compared to the equivalent quarter last year. The impact of lower revenues due to lower Lyme sales was offset by an improvement in gross margin from 42.5% to 43.2%.  However, indirect costs increased from 9.0m to 9.1m, though this increase was entirely driven by an increase in share option expense due an unusually low charge in Q2 of last year.  However, cash based indirect costs actually fell in the quarter.  This was partly driven by cost cutting measures implemented during the quarter, the impact of which will be more greatly felt in subsequent quarters.  Diluted EPS for the quarter was broadly flat at 6.7 cents, whilst year to date EPS was 13.9 cents compared with 11.7 cents for the first six months of 2017.”

Ronan O’Caoimh, CEO of Trinity said “Whilst revenues were down 1.8% compared to Q2 last year our profitability was largely unaffected.  This was largely due to the impact of cost savings measures that we undertook during the quarter. It is of note that most of the measures were implemented midway during the quarter and hence we will not see their full impact until next quarter. In the months ahead we will continue to seek further cost savings. These measures are being driven by our objective to reach a cash flow neutral position for the company for the financial year 2019. ”

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 Ended
June 30,
2018
(unaudited)
   
Three Months Ended
June 30,
2017
(unaudited)
   
Six Months
Ended
June 30,
2018
(unaudited)
   
Six Months
Ended
June 30,
2017
(unaudited)
 
                         
Revenues
   
25,002
     
25,448
     
48,801
     
48,984
 
                                 
Cost of sales
   
(14,194
)
   
(14,629
)
   
(27,565
)
   
(28,274
)
                                 
Gross profit
   
10,808
     
10,819
     
21,236
     
20,710
 
Gross margin %
   
43.2
%
   
42.5
%
   
43.5
%
   
42.3
%
                                 
Other operating income
   
24
     
26
     
48
     
49
 
                                 
Research & development expenses
   
(1,419
)
   
(1,322
)
   
(2,691
)
   
(2,651
)
Selling, general and administrative expenses
   
(7,358
)
   
(7,561
)
   
(14,298
)
   
(14,588
)
Indirect share based payments
   
(329
)
   
(130
)
   
(763
)
   
(380
)
                                 
Operating profit
   
1,726
     
1,832
     
3,532
     
3,140
 
                                 
Financial income
   
196
     
196
     
401
     
373
 
Financial expenses
   
(1,158
)
   
(1,169
)
   
(2,317
)
   
(2,339
)
Net financing expense
   
(962
)
   
(973
)
   
(1,916
)
   
(1,966
)
                                 
Profit before tax & non-cash items
   
764
     
859
     
1,616
     
1,174
 
                                 
Income tax expense
   
(158
)
   
(176
)
   
(290
)
   
(275
)
                                 
Profit after tax before non-cash items     606       683      
1,326
      899  
                                 
Non-cash financial (expense) / income
   
(12
)
   
219
     
(354
)
   
1,249
 
                                 
Profit after tax and non-cash items
   
594
     
902
     
972
     
2,148
 
                                 
Earnings per ADR (US cents)
   
2.8
     
4.1
     
4.7
     
9.8
 
                                 
Earnings per ADR excluding non-cash financial (expense) / income (US cents)
   
2.9
     
3.1
     
6.3
     
4.1
 
                                 
Diluted earnings per ADR (US cents)*
   
6.7
     
6.8
     
13.9
     
11.7
 
                                 
Weighted average no. of ADRs used in computing basic earnings per ADR
   
20,901,703
     
21,847,528
     
20,904,777
     
21,974,369
 
                                 
Weighted average no. of ADRs used in computing diluted earnings per ADR
   
26,157,644
     
27,104,994
     
26,166,077
     
27,231,931
 

* 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

   
June 30,
2018
US$ ‘000
(unaudited)
   
Mar 31,
2018
US$ ‘000
(unaudited)
   
Dec 31,
2017
US$ ‘000
(unaudited)
 
ASSETS
                 
Non-current assets
                 
Property, plant and equipment
   
7,769
     
7,033
     
5,800
 
Goodwill and intangible assets
   
68,263
     
66,474
     
64,754
 
Deferred tax assets
   
9,047
     
8,968
     
8,698
 
Other assets
   
701
     
779
     
771
 
Total non-current assets
   
85,780
     
83,254
     
80,023
 
                         
Current assets
                       
Inventories
   
34,818
     
34,179
     
32,805
 
Trade and other receivables
   
23,138
     
22,118
     
20,740
 
Income tax receivable
   
1,287
     
1,234
     
1,440
 
Cash and cash equivalents
   
49,426
     
53,895
     
57,607
 
Total current assets
   
108,669
     
111,426
     
112,592
 
                         
TOTAL ASSETS
   
194,449
     
194,680
     
192,615
 
                         
EQUITY AND LIABILITIES
                       
Equity attributable to the equity holders of the parent
                       
Share capital
   
1,224
     
1,224
     
1,224
 
Share premium
   
16,187
     
16,187
     
16,187
 
Accumulated surplus
   
47,430
     
46,837
     
46,157
 
Other reserves
   
1,853
     
1,529
     
1,628
 
Total equity
   
66,694
     
65,777
     
65,196
 
                         
Current liabilities
                       
Income tax payable
   
252
     
344
     
310
 
Trade and other payables
   
20,494
     
21,761
     
20,870
 
Provisions
   
50
     
50
     
50
 
Total current liabilities
   
20,796
     
22,155
     
21,230
 
                         
Non-current liabilities
                       
Exchangeable senior note payable
   
95,179
     
95,167
     
94,825
 
Other payables
   
341
     
453
     
532
 
Deferred tax liabilities
   
11,439
     
11,128
     
10,832
 
Total non-current liabilities
   
106,959
     
106,748
     
106,189
 
                         
TOTAL LIABILITIES
   
127,755
     
128,903
     
127,419
 
                         
TOTAL EQUITY AND LIABILITIES
   
194,449
     
194,680
     
192,615
 
 
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
June 30,
2018
(unaudited)
   
Three Months
Ended
June 30,
2017
(unaudited)
   
Six Months
Ended
June 30,
2018
(unaudited)
   
Six Months
Ended
June 30,
2017
(unaudited)
 
                         
Cash and cash equivalents at beginning of period
   
53,895
     
69,851
     
57,607
     
77,108
 
                                 
Operating cash flows before changes in working capital
   
3,204
     
3,739
     
6,462
     
6,006
 
Changes in working capital
   
(1,466
)
   
(367
)
   
(4,145
)
   
(2,575
)
Cash generated from operations
   
1,738
     
3,372
     
2,317
     
3,431
 
                                 
Net Interest and Income taxes (paid)/received
   
(30
)
   
62
     
175
     
239
 
                                 
Capital Expenditure & Financing (net)
   
(3,877
)
   
(3,185
)
   
(7,939
)
   
(6,832
)
                                 
Free cash flow
   
(2,169
)
   
249
     
(5,447
)
   
(3,162
)
                                 
Share buyback
   
-
     
(3,096
)
   
(434
)
   
(4,929
)
                                 
Payment of HIV-2 licence fee
   
-
     
-
     
-
     
(1,112
)
                                 
30 year Exchangeable Note interest payment
   
(2,300
)
   
(2,300
)
   
(2,300
)
   
(2,300
)
                                 
Once-off items
   
-
     
(727
)
   
-
     
(1,628
)
                                 
Cash and cash equivalents at end of period
   
49,426
     
63,977
     
49,426
     
63,977
 
 
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).


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
TRINITY BIOTECH PLC
         (Registrant)
 
       
By:
/s/ Kevin Tansley  
    Kevin Tansley  
    Chief Financial Officer  
       
Date:  19 July 2018