Trinity Biotech Announces Record Third Quarter and Nine Month Results; 108%
Increase in Net Profits and 59% Rise in EPS for Nine Month Period
Wednesday, November 4, 1998 11:19 AM
DUBLIN, Ireland--(BW HealthWire)--Nov. 4, 1998--Trinity Biotech plc (NASDAQ:TRIBY) today announced
record results for the three and nine months ended September 30, 1998.
Revenues rose 38% to US$16,868,884 for the nine months ended September 30, 1998 compared to
US$12,245,226 for the same period last year. Net profit was up 108% to US$1,710,890 or US$.07 per share
compared to US$821,044 or US$.044 per share for the comparable period last year, representing 59%
earnings per share growth.
Revenues grew 16% to US$5,833,164 for the three months ended September 30, 1998 compared to
US$5,024,363 for the same period last year. Net profit rose 101% to US$706,854 or US$.028 per share for
the quarter ended September 30, 1998 compared to US$350,904 or US$.0186 per share for the same period
last year, representing 51% earnings per share growth.
Jonathan O'Connell, chief financial officer of Trinity Biotech, said, "This is the seventh consecutive quarter that
Trinity has reported an increase of over 100% in its net profit compared to the same quarter last year. The net
profit for the three months ended September 30, 1998 reflects both the increase in revenues arising from
indigenous growth and the reduction in Trinity's overhead base following successful closure of the UK
subsidiary, Centocor UK Holdings Limited. The acquisitions made during the quarter have had little impact
on profitability to date but have affected the balance sheet considerably.
"Inventories have increased from US$3,663,036 at December 31, 1997 to US$11,604,214 at September 30,
1998, reflecting inventory acquired through several recent acquisitions particularly the Microtrak inventory of
approximately US$5 million," continued O'Connell. "The acquisitions have given rise to a significant goodwill
charge of US$12,700,000, which has been capitalised in intangibles and will be amortised in line with Irish
and U.S. accounting principals. As a result of the acquisitions, long-term liabilities have increased from
US$8.7 million to US$18.3 million reflecting deferred payments due on the acquisitions and increased bank
debt. As of September 30, 1998, the Company had cash and cash equivalents of US$3,092,775 and total
assets of US$44,145,221. Short-term investments have decreased due to the sale of the Selfcare shares as
consideration for the acquisition of the Cambridge business."
Ronan O'Caoimh, chief executive officer at Trinity, commented, "During the quarter Trinity disposed of the U.S.
OTC pregnancy business, which had been generating annual revenues of approximately US$6 million over
the past number of years. The business was static and very low margin given that Trinity was not the
manufacturer. The consideration was US$3 million.
"In addition, during the quarter Trinity filed legal proceedings relating to an infringement of our intellectual
property rights," O'Caoimh added. "As a result of the sale of the U.S. OTC pregnancy business, Trinity has
transferred its interest in the case to the purchaser of the business."
During the quarter the Company made four product line acquisitions:
-- MICROTRAK - the world Gold Standard Clamydia EIA test (FDA-cleared) - Revenues US$7 million
-- SELFCARE HIV BUSINESS -HIV rapid EIA tests - Revenues US$3.2 million
-- MICROZYME - FDA-cleared range of EIA hormone and drugs of abuse tests - Revenues US$1.6 million
-- LIPOPROTEIN (a) - the only FDA-cleared Lp(a) test for predictive use relating to coronary heart disease -
Revenues US$1 million
In each case Trinity has purchased the product lines but not the overhead attaching to the business.
Production of Microtrak, Selfcare, and Lipoprotein is transferring to Dublin with Microzyme production moving
to Jamestown, New York. The transfer into existing facilities of these four businesses gives rise to significant
manufacturing efficiencies and in turn to excellent profit contribution. The Company has secured services of a
small number of key marketing and production personnel from these businesses.
"The purchase consideration for these businesses was approximately US$17 million, financed through a
mixture of cash payments, deferred considerations, bank borrowing, the retirement of Selfcare stock, and the
proceeds from the sale of the OTC pregnancy business. The acquisitions have been financed without the
issuance of shares and without recourse to floating convertible instruments. The transactions will give rise to
increased profitability and significant earnings per share growth. Following the completion of the five
transactions the Company has US$3 million cash on hand, and has a schedule of deferred payments over
the next two years which will be met from operating cash flows," O'Caoimh also stated.
Trinity Biotech plc
Consolidated Statement of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
US$ US$ US$ US$
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 5,833,164 5,024,363 16,868,884 12,245,226
Costs and expenses
Cost of goods sold (3,852,011) (3,389,978) (11,229,808) (8,425,896)
Research and
development (588,050) (551,243) (1,861,539) (1,245,139)
Administrative
expenses (614,513) (857,837) (1,899,707) (2,093,903)
Other operating
income -- 150,215 -- 345,440
Operating profit 778,590 375,520 1,877,830 825,728
Interest and other
income 39,634 13,801 93,142 131,423
Interest expense (111,370) (38,417) (260,082) (136,107)
Net profit 706,854 350,904 1,710,890 821,044
Net profit per
ordinary share 0.028 0.0186 0.07 0.044
Weighted average
number of
ordinary shares
outstanding 25,173,456 18,839,905 24,599,255 18,474,984
Trinity Biotech plc
Consolidated Balance Sheet
Sept. 30, 1998 Dec. 31, 1997
US$ US$
(Unaudited)
ASSETS
Cash and cash equivalents 3,092,775 2,827,251
Short term investments 79,002 1,447,643
Accounts receivable and prepayments 6,684,515 7,899,177
Inventories 11,604,214 3,663,036
Total current assets 21,460,506 15,837,107
Property plant & equipment, net 7,918,553 5,800,169
Intangible assets, net 14,166,162 375,168
Financial assets 600,000 2,587,257
TOTAL ASSETS 44,145,221 24,599,701
LIABILITIES & SHAREHOLDERS' EQUITY
Accounts payable & accrued expenses 11,529,144 8,767,479
Long term liabilities 18,279,801 8,727,511
SHAREHOLDERS' EQUITY
Called up share capital
Class 'A' ordinary shares 332,830 315,567
Class 'B' ordinary shares 9,660 9,954
Share premium account 36,743,069 35,055,338
Currency adjustment 866,872 (63,125)
Retained deficit (4,360,611) (5,937,107)
Goodwill reserve 19,255,544) (22,275,916)
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY 44,145,221 24,599,701
Trinity Biotech develops, manufactures, and markets over 100 diagnostic products for the point-of-care
(POC), self-testing (OTC), and clinical laboratory segments of the diagnostic market. Trinity sells worldwide
in over 75 countries through 130 international distributors and strategic partners.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions 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 commercialization and technological difficulties, and other risks
detailed in the Company's periodic reports filed with the Securities and Exchange Commission.
CONTACT: Trinity Biotech plc
Jonathan O'Connell
800-603-8076
www.trinitybiotech.com
or
OTC Communications
Robert M. Joyce
888-32-TRIBY (87429) /
781-444-6100 ext. 11
www.otcfn.com/triby |
