SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 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, 2017

 

 

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-_________.

 

 

 

 

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Press Release dated July 20, 2017

 

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

Trinity Biotech Announces Results for Q2, 2017

DUBLIN, Ireland (July 20, 2017).… 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, 2017.

Quarter 2 Results

Total revenues for Q2, 2017 were $25.4m compared to $26.3m in Q2, 2016.

 

		2016 Quarter 2				2017 Quarter 2				Increase/ (decrease)
		US$’000				US$’000				%
Point-of-Care			4,786				4,350				(9.1%)
Clinical Laboratory			21,502				21,098				(1.9%)
Total			26,288				25,448				(3.2%)

Point-of-Care revenues for Q2, 2017 decreased from $4.8m to $4.4m. This was attributable to lower sales of HIV products in Africa. Due to the nature of the African HIV market, these sales tend to fluctuate significantly and this quarter’s decrease is well within the normal range for such fluctuations.

Meanwhile, Clinical Laboratory sales for the quarter were $21.1m versus $21.5m for the corresponding period last year, thus representing a decrease of 1.9%. However, when the impact of recently culled products is taken into account, underlying Clinical Laboratory sales rose by approximately 2%. This growth was mainly driven by higher Premier revenues, including new placements of the Premier Resolution version of this instrument, which specifically targets the haemoglobin variant market.

The gross margin for the quarter was 42.5% which compares to 45% in Q2, 2016. This decrease was due to lower distributor pricing due to the strength of the US dollar against a range of currencies and a less favourable sales mix i.e. lower higher margin point-of-care revenues coupled with higher instrument sales which tend to have significantly lower than average margins. However, this quarter’s gross margin was higher than the two previous quarters of 40% (Q4 2016) and 42% (Q1 2017).

Research and Development expenses remained constant at $1.3m. Meanwhile Selling, General and Administrative (SG&A) expenses fell from $7.8m to $7.6m in Q2 2017, due to lower discretionary sales and marketing expenses, particularly Meritas related costs incurred in Q2, 2016 which were not replicated in the current quarter.

Operating profit for the quarter decreased from $2.4m to $1.8m. This was due to the combined impact of the lower revenues and gross margin though these factors were partially offset by lower indirect costs incurred during the quarter.

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Financial income for the quarter remained constant at $0.2m whilst interest payable, mainly arising on the Company’s exchangeable notes, was static at $1.2m. Further non-cash income of $0.2m was also recognised in this quarter’s income statement. This was due to a gain of $0.4m arising on a decrease in the fair value of the embedded derivatives associated with the exchangeable notes as offset by a non-cash interest charge of $0.2m.

The Company recorded a profit of $0.9m for the quarter which equates to earnings per share of 4.1 cents. However, excluding non-cash items the profit for the quarter was $0.7m or an EPS of 3.1 cents. Fully diluted EPS for the quarter was 6.8 cents compared to 8.5 cents in Q2, 2016.

EBITDA before share option expense for the quarter was $3.3m.

Share Buyback

During the quarter, the Company repurchased 554,000 ADRs at an average price of $5.59 and with a total value of $3.1m. A further 67,000 ADRs at an average price of $5.65 have been repurchased since quarter end. This brings the total purchased since the beginning of the program to approximately 1.9m shares with a total value of $14.6m.

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said “Our operating profit for the quarter of $1.8m represented a decrease when compared to the equivalent quarter last year. This was due to the combination of lower revenues and a lower gross margin, though the impact of these factors was partially offset by lower indirect costs. This resulted in an EPS (before non-cash items) of 3.1 cents which, whilst lower than the equivalent quarter last year, was higher than the 1 cent per ADR reported in quarter one of this year.”

Ronan O’Caoimh, CEO of Trinity said “This quarter’s revenues were down 3% when compared to Q2, 2016. However, this was due to the impact of culling older non-economic products in late 2016 and to the normal fluctuations which impact our HIV sales, particularly in Africa. The remainder of our business remains strong and demonstrated underlying revenue growth this quarter. We were particularly pleased with the increase in sales of our new Premier Resolution instrument. This instrument, which is a sister product of the Premier Hb9210 A1c instrument, specifically addresses the haemoglobin variant market. Though it has only been launched relatively recently, it has been very positively received by customers and I am confident that in common with the Premier Hb9210, it will serve as a growth driver for the company in the years ahead. Meanwhile, we bought back over 500,000 shares during the quarter and at current share price levels it is our intention to continue to be active purchasers in the market.”

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.

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Trinity Biotech plc

Consolidated Income Statements

 

(US$000’s except share data)		Three Months Ended June 30, 2017				Three Months Ended June 30, 2016				Six Months Ended June 30, 2017				Six Months Ended June 30, 2016
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Revenues			25,448				26,288				48,984				49,804
Cost of sales			(14,629	)			(14,472	)			(28,274	)			(27,856	)
Gross profit			10,819				11,816				20,710				21,948
Gross margin %			42.5	%			45.0	%			42.3	%			44.1	%
Other operating income			26				72				49				141
Research & development expenses			(1,322	)			(1,267	)			(2,651	)			(2,414	)
Selling, general and administrative expenses			(7,561	)			(7,797	)			(14,588	)			(14,758	)
Indirect share based payments			(130	)			(468	)			(380	)			(735	)
Operating profit			1,832				2,356				3,140				4,182
Financial income			196				223				373				443
Financial expenses			(1,169	)			(1,185	)			(2,339	)			(2,366	)
Net financing expense			(973	)			(962	)			(1,966	)			(1,923	)
Profit before tax & non-cash financial income / (expense)			859				1,394				1,174				2,259
Income tax expense			(176	)			(131	)			(275	)			(313	)
Profit for the period before non-cash financial income / (expense)			683				1,263				899				1,946
Non-cash financial income / (expense)			219				841				1,249				(1,188	)
Profit after tax and once-off items			902				2,104				2,148				758
Earnings per ADR (US cents)			4.1				9.1				9.8				3.3
Earnings per ADR excluding non-cash financial income (US cents)			3.1				5.5				4.1				8.4
Diluted earnings per ADR (US cents)			6.8	*			8.5				11.7	*			14.9	*
Weighted average no. of ADRs used in computing basic earnings per ADR			21,847,528				23,016,169				21,974,369				23,152,018
Weighted average no. of ADRs used in computing diluted earnings per ADR			27,104,994				28,409,024				27,231,931				28,526,486

* 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).

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Trinity Biotech plc

Consolidated Balance Sheets

 

		June 30, 2017				March 31, 2017				Dec 31, 2016
		US$ ‘000 (unaudited)				US$ ‘000 (unaudited)				US$ ‘000 (audited)
ASSETS
Non-current assets
Property, plant and equipment			14,462				14,163				13,403
Goodwill and intangible assets			90,438				88,996				87,275
Deferred tax assets			15,352				14,669				14,556
Other assets			873				828				870
Total non-current assets			121,125				118,656				116,104
Current assets
Inventories			33,620				32,659				32,589
Trade and other receivables			24,856				22,683				22,586
Income tax receivable			1,220				1,290				1,205
Cash and cash equivalents			63,977				69,851				77,108
Total current assets			123,673				126,483				133,488
TOTAL ASSETS			244,798				245,139				249,592
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent
Share capital			1,176				1,176				1,224
Share premium			16,122				16,122				16,187
Accumulated surplus			90,977				93,171				93,004
Other reserves			(1,409	)			(1,193	)			(1,688	)
Total equity			106,866				109,276				108,727
Current liabilities
Income tax payable			582				181				175
Trade and other payables			22,572				20,893				25,028
Provisions			75				75				75
Total current liabilities			23,229				21,149				25,278
Non-current liabilities
Exchangeable senior note payable			95,245				95,462				96,491
Other payables			640				698				735
Deferred tax liabilities			18,818				18,554				18,361
Total non-current liabilities			114,703				114,714				115,587
TOTAL LIABILITIES			137,932				135,863				140,865
TOTAL EQUITY AND LIABILITIES			244,798				245,139				249,592

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).

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Trinity Biotech plc

Consolidated Statement of Cash Flows

 

(US$000’s)		Three Months Ended June 30, 2017				Three Months Ended June 30, 2016				Six Months Ended June 30, 2017				Six Months Ended June 30, 2016
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Cash and cash equivalents at beginning of period			69,851				96,829				77,108				101,953
Operating cash flows before changes in working capital			3,739				5,282				6,006				7,786
Changes in working capital			(367	)			(3,234	)			(2,575	)			(3,862	)
Cash generated from operations			3,372				2,048				3,431				3,924
Net Interest and Income taxes (paid)/received			62				149				239				(92	)
Capital Expenditure & Financing (net)			(3,185	)			(5,995	)			(6,832	)			(11,427	)
Free cash flow			249				(3,798	)			(3,162	)			(7,595	)
Share buyback			(3,096	)			(4,699	)			(4,929	)			(6,026	)
Payment of HIV-2 licence fee			—				(1,112	)			(1,112	)			(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			63,977				84,920				63,977				84,920

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).

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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.

 

Date: 20 July 2017