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
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2011
TRINITY BIOTECH PLC
(Name of Registrant)
IDA Business Park
Bray, Co. Wicklow
Ireland
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 þ Form 40-F o
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): o
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): o
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 o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection
with Rule 12g3-2(b): 82-
Press Release dated March 3, 2011
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 Quarter 4 Financial Results
EPS of 17.1 cent per share — an increase of 10.3%.
EPS of 17.1 cent per share — an increase of 10.3%.
DUBLIN, Ireland (March 3, 2011)... 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 December 31, 2010.
Quarter 4 Results
Total revenues for the quarter were $19.2m which compares to $30.8m in quarter 4, 2009, a decrease
of 37.5%. This decrease is principally due to the divestiture of the coagulation product line in
quarter 2 2010.
Point-of-care revenues for the quarter decreased by 4.2% when compared to quarter 4, 2009. This
level of fluctuation, which is within the normal range that can be expected in this product line,
reflects the timing of the shipment of certain large orders. However, this will have a
corresponding positive impact on revenues in quarter 1, 2011 and this is being borne out by the
strong level of HIV sales being seen in the first 2 months of 2011.
Continuing clinical laboratory (i.e. excluding coagulation) revenues were $15.7m which represents
an increase of 0.2% compared to quarter 4, 2009. However, when the impact of the slower lyme
season, lower Fitzgerald sales and the move to a distribution selling model in France and Germany
are taken into account the underlying increase in revenues from our core infectious diseases and
diabetes business is 8.3% year on year. When compared to quarter 3, 2010 continuing laboratory
sales have increased by 8.2%.
Revenues for quarter 4 by key product area were as follows:
| 2009 | 2010 | 2010 | ||||||||||
| Quarter 4 | Quarter 3 | Quarter 4 | ||||||||||
| US$’000 | US$’000 | US$’000 | ||||||||||
Point-of-Care |
3,659 | 4,202 | 3,507 | |||||||||
Continuing Clinical Laboratory |
15,708 | 14,547 | 15,740 | |||||||||
Continuing operations* |
19,367 | 18,749 | 19,247 | |||||||||
Coagulation |
11,427 | 0 | 0 | |||||||||
Total |
30,794 | 18,749 | 19,247 | |||||||||
| * | Continuing operations reflects the company’s divestiture of its coagulation product line
(shown separately) |
Gross profit for the quarter amounted to $9.8m representing a gross margin of approximately
50.8%. This compares favourably to the gross margin of 44.5% for the same period in 2009. The
improvement in gross margin of 6.3% is largely attributable to the divestiture of coagulation,
which traditionally had been our lowest gross margin product line. At 50.8% the gross margin is in
line with the 50.6% reported in quarter 3, 2010 — which was the first full quarter without
coagulation.
Research and Development (R&D) expenses for the quarter amounted to $0.9m, which represents a
decrease of 56.1% compared to quarter 4, 2009. In the same period, Selling, General and
Administrative (SG&A) expenses decreased by 33.7% from $8.2m in quarter 4 of 2009 to $5.4m in the
current quarter. In both cases the principal driver for the reduction has been the transfer of R&D,
sales and administrative personnel to Stago as part of the coagulation divestiture. When compared
to quarter 3, 2010, R&D and SG&A expenses in aggregate have decreased by 3.1%. This decrease was
achieved notwithstanding increased fees associated with the preparations for the share buyback.
Operating profit was $3.6m for the quarter, compared to $3.5m for quarter 4, 2009. However, the
operating margin for the quarter has increased to 18.6%, which represents a significant improvement
compared to 11.3% in quarter 4, 2009.
Net financial income for the quarter was $0.5m which compares to a net financial expense of $0.3m
in quarter 4, 2009. This improvement is attributable to the elimination of bank debt and the
increase in cash balances to $58.0m.
Profit after tax increased by 12.3% from $3.3m in quarter 4, 2009 to $3.7m this quarter. Similarly,
EPS for the quarter increased from 15.5 cent per share to 17.1 cent per share, an increase of
10.3%. The tax charge for the quarter was $0.4m which represents an effective tax rate of 10%.
Free cash flows for the quarter increased by 81.6% from $2.4m to $4.4m. This was largely due to a
30.1% increase in cash from operations and the receipt of interest income from cash deposits.
2010 Results
The following are the key highlights with respect to the financial performance of the Company in
2010:
| • | EPS (excluding non-recurring items) has increased from 56.5 cents to 64.1 cents, an
increase of over 13%; |
| • | When non-recurring items are included, the EPS for the year was $2.85; |
| • | The divestiture of the company’s coagulation business resulted in a once-off profit of
over $46m; |
| • | Operating margin has improved from 11.2% to 15.7%; |
| • | The Company has moved from a net debt position of $25.8m to a net cash position of
$57.7m. In addition, the Company is due to receive further deferred consideration payments
from Stago which will increase the net cash position by a further $22.5m over the next 14
months. |
| • | The level of working capital in the Company has been reduced from $49.3m to $20.9m. |
Recent Developments
| • | The Company was pleased to announce that it had entered into an agreement to exclusively
supply Menarini Diagnostics with the new Premier Hb9210 (PDx) instrument for distribution
in European territories. As one of Europe’s leading pharmaceutical and diagnostics
companies,
Menarini, with a turnover of €2.6 billion and 12,000 employees, is the market leader in
HbA1c measurement in Europe. Menarini has a market share of 40% in the European HbA1c
market, a large installed base of equipment and over 20 years experience in HbA1c
measurement. The launch of this instrument in April, 2011 will allow us to target a rapidly
growing global market estimated to be worth $272m by 2012 with a best in class product. In
addition, we will file a US FDA submission in April and simultaneously we will file for
registration in China, Brazil and other significant markets. |
| • | The Company completed the acquisition of Phoenix Biotech Corp. for $2.5m. Phoenix
manufactures and sells a syphilis total antibody (IgG and IgM) test and is the only such
FDA approved elisa test on the market. With the incidence of syphilis growing
significantly in both the USA and in international markets, this will be a major growth
opportunity for Trinity. |
| • | In recent weeks, the Company has received approval from the Irish courts to restructure
its balance sheet in order to facilitate a share buyback program. As the Company has been
in a blackout period since that date no buyback of shares has taken place yet. It is the
Board’s intention to commence buying back shares during this quarter. In carrying this
out, the Company will pay particular attention to the prevailing share price and volumes
whilst at the same time adhering to the strict SEC rules governing such buybacks. |
Dividend Policy
Trinity has now established a track record of reliable and growing profitability. This has been
accompanied by strong free cash flows which have allowed the Company to fund its development
activities, whilst at the same time increasing its cash reserves. For this reason the Board of
Trinity has determined that it is now an appropriate time to commence a dividend policy, to be paid
once a year. The Board is proposing a final dividend of 10 cent per ADR in respect of 2010. This
proposal will be submitted to shareholders for approval at the Company’s next Annual General
Meeting which is expected to take place in May of this year.
Comments
Commenting on the results, Kevin Tansley, Chief Financial Officer said “We are very pleased with
this quarter’s results. Profit before tax has increased by over 26% and EPS has increased by 10.3%
when compared with quarter 4, 2009. We have also grown operating profits versus quarter 4, 2009.
This is significant as this is the first quarter in which we have achieved this since the
divestiture of our coagulation business. We have also continued to generate very healthy cash
flows of $4.4m. In this quarter we achieved an increase in free cash flows of over 81%, even after
the investment that we are making in our R&D pipeline.”
Ronan O’Caoimh, CEO stated “We are pleased with our progress in 2010. We were successful in
growing our EPS every quarter versus the comparable quarter in 2009 resulting in an annual increase
in EPS of over 13%. We divested our coagulation business for what we believe was a very good price
for shareholders and in so doing have greatly strengthened our balance sheet. From a strategic
point of view we have repositioned the Company with an emphasis on growth, particularly in the A1c
and point-of-care markets. The development of our new A1c instrument is now completed and we are
extremely pleased with the distribution agreement we have entered into with Menarini. The
development of our new range of point-of-care products is proceeding well and will form the bedrock
of future growth for our company.
Given the reliable and growing nature of its profits and strong future growth prospects, the Board
now feels it is appropriate for the Company to initiate a dividend policy for the first time in its
history. The Board of the Company will submit a proposal to pay a dividend of 10 cent per ADR at
the AGM. In addition to this, we have now received all of the authorisations necessary to commence
a share buyback process. This process will commence once we have exited the current blackout
period.”
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
| Three Months | Three Months | |||||||||||||||
| Ended | Ended | Year Ended | Year Ended | |||||||||||||
| Dec 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (US$000’s except share data) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||
Revenues |
19,247 | 30,794 | 89,635 | 125,907 | ||||||||||||
Cost of sales |
(9,475 | ) | (17,102 | ) | (45,690 | ) | (68,891 | ) | ||||||||
Gross profit |
9,772 | 13,692 | 43,945 | 57,016 | ||||||||||||
Gross profit % |
50.8 | % | 44.5 | % | 49.0 | % | 45.3 | % | ||||||||
Other operating income |
382 | 22 | 1,616 | 437 | ||||||||||||
Research & development expenses |
(853 | ) | (1,941 | ) | (4,603 | ) | (7,341 | ) | ||||||||
Selling, general and administrative expenses |
(5,423 | ) | (8,178 | ) | (25,849 | ) | (35,519 | ) | ||||||||
Indirect share based payments |
(301 | ) | (110 | ) | (1,080 | ) | (494 | ) | ||||||||
Operating profit |
3,577 | 3,485 | 14,029 | 14,099 | ||||||||||||
Non-recurring items |
— | — | 46,474 | — | ||||||||||||
Financial income |
560 | 4 | 1,352 | 8 | ||||||||||||
Financial expenses |
(69 | ) | (263 | ) | (495 | ) | (1,192 | ) | ||||||||
Net financing income/(expense) |
491 | (259 | ) | 857 | (1,184 | ) | ||||||||||
Profit before tax |
4,068 | 3,226 | 61,360 | 12,915 | ||||||||||||
Income tax (expense)/credit on operating activities |
(408 | ) | 32 | (1,296 | ) | (1,091 | ) | |||||||||
Income tax credit on non-recurring items |
— | — | 354 | — | ||||||||||||
Profit for the period |
3,660 | 3,258 | 60,418 | 11,824 | ||||||||||||
Profit for the period (excluding non-recurring items) |
3,660 | 3,258 | 13,590 | 11,824 | ||||||||||||
Earnings per ADR (US cents) |
17.1 | 15.5 | 285.2 | 56.5 | ||||||||||||
Earnings per ADR (US cents) — excluding non-recurring items |
17.1 | 15.5 | 64.1 | 56.5 | ||||||||||||
Diluted earnings per ADR (US cents) |
16.6 | 15.4 | 278.9 | 56.5 | ||||||||||||
Diluted earnings per ADR (US cents) — excluding non-recurring items |
16.6 | 15.4 | 62.7 | 56.5 | ||||||||||||
Weighted average no. of ADRs used in computing basic earnings per ADR |
21,348,986 | 21,080,998 | 21,183,594 | 20,934,471 | ||||||||||||
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, | Sept 30, | December 31, | ||||||||||
| 2010 | 2010 | 2009 | ||||||||||
| US$ ‘000 | US$ ‘000 | US$ ‘000 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Property, plant and equipment |
5,999 | 5,535 | 12,174 | |||||||||
Goodwill and intangible assets |
37,248 | 36,120 | 44,822 | |||||||||
Deferred tax assets |
4,680 | 4,490 | 5,801 | |||||||||
Other assets |
11,623 | 11,738 | 1,212 | |||||||||
Total non-current assets |
59,550 | 57,883 | 64,009 | |||||||||
Current assets |
||||||||||||
Inventories |
17,576 | 18,758 | 39,198 | |||||||||
Trade and other receivables |
25,529 | 27,371 | 22,931 | |||||||||
Income tax receivable |
217 | 168 | 229 | |||||||||
Cash and cash equivalents |
58,002 | 53,802 | 6,078 | |||||||||
Total current assets |
101,324 | 100,099 | 68,436 | |||||||||
TOTAL ASSETS |
160,874 | 157,982 | 132,445 | |||||||||
EQUITY AND LIABILITIES |
||||||||||||
Equity attributable to the equity holders of the parent |
||||||||||||
Share capital |
1,092 | 1,087 | 1,080 | |||||||||
Share premium |
161,599 | 161,220 | 160,683 | |||||||||
Accumulated deficit |
(25,412 | ) | (29,483 | ) | (87,070 | ) | ||||||
Translation reserve |
(544 | ) | (544 | ) | 206 | |||||||
Other reserves |
4,552 | 4,463 | 4,445 | |||||||||
Total equity |
141,287 | 136,743 | 79,344 | |||||||||
Current liabilities |
||||||||||||
Interest-bearing loans and borrowings |
162 | 265 | 12,625 | |||||||||
Income tax payable |
597 | 366 | 24 | |||||||||
Trade and other payables |
11,447 | 12,831 | 12,844 | |||||||||
Derivative Financial Instruments |
— | 88 | 58 | |||||||||
Provisions |
50 | 50 | 50 | |||||||||
Total current liabilities |
12,256 | 13,600 | 25,601 | |||||||||
Non-current liabilities |
||||||||||||
Interest-bearing loans and borrowings |
111 | 205 | 19,231 | |||||||||
Other payables |
30 | 519 | 59 | |||||||||
Deferred tax liabilities |
7,190 | 6,915 | 8,210 | |||||||||
Total non-current liabilities |
7,331 | 7,639 | 27,500 | |||||||||
TOTAL LIABILITIES |
19,587 | 21,239 | 53,101 | |||||||||
TOTAL EQUITY AND LIABILITIES |
160,874 | 157,982 | 132,445 | |||||||||
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 | |||||||
| Ended | Ended | |||||||
| Dec 31, | Dec 31, | |||||||
| 2010 | 2009 | |||||||
| (US$000’s) | (unaudited) | (unaudited) | ||||||
Cash and cash equivalents at beginning of period |
53,802 | 3,697 | ||||||
Operating cash flows before changes in working
capital |
4,668 | 5,282 | ||||||
Changes in Working Capital |
1,607 | (459 | ) | |||||
Cash generated from operations |
6,275 | 4,823 | ||||||
Net Interest and Income taxes received/(paid) |
330 | (12 | ) | |||||
Capital Expenditure & Financing (net) |
(2,211 | ) | (2,391 | ) | ||||
Free cash flow |
4,394 | 2,420 | ||||||
Repayment of bank debt |
(194 | ) | (39 | ) | ||||
Cash and cash equivalents at end of period |
58,002 | 6,078 | ||||||
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: March 3, 2011