Trinity Biotech Announces Year-end Results - Revenues
Increase 40% -
Thursday February 13, 9:09 am ET
DUBLIN, Ireland, Feb. 13 /PRNewswire-FirstCall/ -- Trinity Biotech plc (Nasdaq: TRIB - News) today
announced results for the three months and the year ended December 31, 2002.
Revenues in the quarter rose 53% to US$14.98
million compared to US$9.80 million in the same
period last year. Gross profit amounted to
US$7.8 million, representing a gross margin of
52.2%, compared to a gross profit of US$5.1
million, and a gross margin of 51.6%, in the
same period last year. During the quarter
research and development expenses increased to
US$1.26 million (2001 - US$0.5 million). Selling,
general and administrative expenses increased to
US$4.34 million (2001 - US$2.68 million)
primarily as a result of the introduction of direct
sales forces in the USA, Germany and more
recently in Quarter 4 in the UK.
The net effect of the above factors was a profit
after tax of US$1.5 million for the quarter
compared to a profit after tax and before
exceptional items of US$1.2 million for the same quarter in 2001. Adjusted diluted earnings per share
before exceptionals amounted to 3.6 US cents compared to 3.0 US cents in the same period last year.
Revenues for the year ended December 31, 2002 rose 40% to US$51.98 million compared to US$37.06
million last year. Gross profit amounted to US$25.61 million, representing a gross margin of 49.3%,
compared to a gross profit of US$18.92 million last year. The increased level of gross profit was offset by
increased operating costs primarily associated with the introduction of the direct sales forces. As a
result, the profit after tax for the year ended December 31, 2002 amounted to US$5.01 million and diluted
earnings per share amounted to 12.0 US cents.
Commenting on the results, Rory Nealon, Chief Financial Officer, said "Revenues have grown for the fifth
year in succession at a compound growth rate of 24.4% per annum. The increase of 40% in the current
year reflects a combination of both organic and acquisition-led growth. The Biopool business is now fully
integrated and the recent Sigma Hemostasis and Clinical Chemistry acquisitions will further drive the
growth of the Group into 2003. In trading terms, EBITDA amounted to US$9.97 million in the period and
the Company is in a strong financial position with bank debt of US$6.75 million and cash balances of
US$5.77 million."
Ronan O'Caoimh, Chief Executive Officer, commented "During the fourth quarter and year as a whole
Trinity has produced a strong trading performance at the revenue and gross margin line. During the most
recent quarter we acquired a clinical chemistry business which consists of several esoteric products that
are clearly differentiated in the marketplace. The addition of this clinical chemistry product line will
increase the efficiency and effectiveness of our direct sales forces. We are currently in the process of
transferring the manufacture of these products from St Louis to Trinity's facility in Dublin and anticipate
that this will be complete by Quarter 3.
The purchase of the business will be earnings enhancing and was part financed by a convertible
debenture for $2.5 million from Tailwind and Solomon Strategic Holdings. This debenture is convertible at
a price of $1.50 per share, has a coupon of 5.25% and is repayable in quarterly instalments of $200,000
from January 2004.
The integration of the Sigma Hemostasis business is progressing successfully with the transfer of
production from the Sigma, St Louis plant to Ireland expected to complete during this quarter. During the
Fourth Quarter we significantly increased our sales and marketing spend with the opening of a new office
in St Louis from which all sales and marketing in the U.S. will be managed in the future, while in October
the Company opened a direct sales and marketing operation in the U.K. These developments have given
rise to significant start-up costs, but we anticipate that the benefits will materialise in the coming
quarters".
Trinity Biotech develops, manufactures and markets over 300 diagnostic products for the point-of-care,
and clinical laboratory segments of the diagnostic market. Trinity Biotech sells worldwide in over 80
countries, through its own sales forces and through a network of international distributors and strategic
partners. For further information please see our website: www.trinitybiotech.com.
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.
Contact: Trinity Biotech plc
Rory Nealon
(353)-1-2769800 |
