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 November, 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-          



 
 
 
Press Release dated October 26, 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 Q3, 2017
 
DUBLIN, Ireland (October 26, 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 September 30, 2017.

Quarter 3 Results

Total revenues for Q3, 2017 were $25.6m which is broken down as follows:

   
2016
Quarter 3
   
2017
Quarter 3
   
Increase/
(decrease)
 
   
US$'000
   
US$'000
   
%
 
Point-of-Care
   
4,903
     
4,598
     
(6.2
)%
Clinical Laboratory
   
21,224
     
21,006
     
(1.0
)%
Total
   
26,127
     
25,604
     
(2.0
)%
 
Point-of-Care revenues for Q3, 2017 decreased from $4.9m to $4.6m. This was primarily due to lower sales of HIV products in Africa.

Meanwhile, Clinical Laboratory sales for the quarter were $21.0m versus $21.2m for the corresponding period last year, thus representing a decrease of 1.0%.  However, when the impact of recently culled products is taken into account, underlying Clinical Laboratory sales increased by approximately 2.6%.  This growth was mainly driven by higher Premier revenues, including the impact of Premier Resolution, as well as higher autoimmune sales largely driven by strong laboratory services revenues.

The gross margin for the quarter was 43%, which compares to 44.7% in Q3, 2016. This decrease is largely due to lower high margin point-of-care revenues and foreign exchange factors, including the impact of exchange rates on distributor pricing. Whilst the gross margin is lower than in the comparative period it continues the trend of sequentially improving gross margins witnessed in recent quarters.

Research and Development expenses increased from $1.3m in Q3, 2016 to $1.5m in Q3, 2017. Meanwhile, Selling, General and Administrative (SG&A) expenses increased from $7.5m to $7.8m in Q3, 2017, an increase of approximately 3%. This increase was due to normal inflationary pressures and higher discretionary sales and marketing expenses such as trade shows and travel costs.

Operating profit for the quarter decreased from $2.7m to $1.5m. This was due to the combined impact of the lower revenues and gross margin and the higher indirect costs incurred during the quarter.

Both financial income and interest payable for the quarter remained static at $0.2m and $1.2m respectively. The interest payable arises mainly on the Company's exchangeable notes.  A further non-cash expense of $0.1m was recognised in this quarter's income statement, again in relation to the exchangeable notes.  This was due to a non-cash interest charge of $0.2m partially offset by a gain of $0.1m arising on a decrease in the fair value of the derivatives embedded in these notes.
 

 
Overall, the Company recorded a profit of $0.4m for the quarter, which equates to earnings per share of 2.1 cents.  However, excluding non-cash items the profit for the quarter was $0.5m or an EPS of 2.4 cents. Fully diluted EPS for the quarter was 6.3 cents compared to 9.7 cents in Q3, 2016.

EBITDA before share option expense for the quarter was $3.1m.

Share Buyback

During the quarter, the Company repurchased 281,000 ADRs at an average price of $5.49 and with a total value of $1.5m. This brings the total purchased since the beginning of the program to approximately 2.1m shares with a total value of $15.8m.

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said "This quarter we demonstrated continued progress from a financial perspective. As well achieving underlying growth in our Clinical Laboratory revenues, we also reported an increase in gross margins for the third quarter in a row. However, this has not immediately translated into higher profits as our indirect costs were slightly higher this quarter, due to increased investment in both R&D and sales and marketing activities as we seek to drive future revenue growth. Another positive aspect was that we generated positive free cash flows this quarter, thus reflecting the improved cash flows of the Company following the suspension of the Meritas project in late 2016."

Ronan O'Caoimh, CEO of Trinity said "This quarter underlying growth in our key Clinical Laboratory segment was driven by higher haemoglobin and autoimmune revenues. Our haemoglobin revenues are now being boosted by new sales of our recently launched Premier Resolution instrument, which specifically targets the haemogloblin variant market. This instrument is building on the continued success of our Premier 9210 Diabetes instrument, which is now the market leader in a number of countries. Meanwhile, our autoimmune revenues are increasing as we grow our laboratory services business through a combination of increased testing menu and the ongoing development of key commercial relationships.  We continue to retain our pre-eminent position in the confirmatory HIV testing market in Africa and whilst revenues were down this quarter, year to date sales are in line with last year. Future growth opportunities in the HIV market will come from our forthcoming entry into the HIV screening market in Africa.

We believe that the current strength of our product portfolio and the growth opportunities inherent in our business are not fully reflected in our current share price. Consequently we remain committed to buying back a significant number of Trinity shares at these levels."

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
September 30,
2017
(unaudited)
   
Three Months
Ended
September 30,
2016
(unaudited)
   
Nine Months
Ended
September 30,
2017
(unaudited)
   
Nine Months
Ended
September 30,
2016
(unaudited)
 
                         
Revenues
   
25,604
     
26,127
     
74,588
     
75,931
 
                                 
Cost of sales
   
(14,606
)
   
(14,460
)
   
(42,889
)
   
(42,316
)
                                 
Gross profit
   
10,998
     
11,667
     
31,699
     
33,615
 
Gross margin %
   
43.0
%
   
44.7
%
   
42.5
%
   
44.3
%
                                 
Other operating income
   
25
     
70
     
73
     
211
 
                                 
Research & development expenses
   
(1,469
)
   
(1,296
)
   
(4,119
)
   
(3,711
)
Selling, general and administrative expenses
   
(7,761
)
   
(7,487
)
   
(22,341
)
   
(22,245
)
Indirect share based payments
   
(265
)
   
(236
)
   
(644
)
   
(971
)
                                 
Operating profit
   
1,528
     
2,718
     
4,668
     
6,899
 
                                 
Financial income
   
212
     
212
     
584
     
657
 
Financial expenses
   
(1,168
)
   
(1,179
)
   
(3,506
)
   
(3,545
)
Net financing expense
   
(956
)
   
(967
)
   
(2,922
)
   
(2,888
)
                                 
Profit before tax & non-cash financial income / (expense)
   
572
     
1,751
     
1,746
     
4,011
 
                                 
Income tax expense
   
(56
)
   
(148
)
   
(331
)
   
(462
)
                                 
Profit for the period before non-cash financial income / (expense)    
516
     
1,603
     
1,415
     
3,549
 
                                 
Non-cash financial income / (expense)
   
(71
)
   
(2,120
)
   
1,178
     
(3,308
)
                                 
Profit / (loss) after tax and once-off items
   
445
     
(517
)
   
2,593
     
241
 
                                 
Earnings per ADR (US cents)
   
2.1
     
(2.3
)
   
11.9
     
1.0
 
                                 
Earnings per ADR excluding non-cash financial income (US cents)
   
2.4
     
7.0
     
6.5
     
15.4
 
                                 
Diluted earnings per ADR (US cents)
   
6.3
*
   
9.7
*
   
18.0
*
   
24.6
*
                                 
Weighted average no. of ADRs used in computing basic earnings per ADR
   
21,379,422
     
22,797,208
     
21,773,874
     
23,032,885
 
                                 
Weighted average no. of ADRs used in computing diluted earnings per ADR
   
26,636,857
     
28,379,444
     
27,031,396
     
28,452,580
 

* 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

   
September 30,
2017
US$ '000
(unaudited)
   
June 30,
2017
US$ '000
(unaudited)
   
March 31,
2017
US$ '000
(unaudited)
   
Dec 31,
2016
US$ '000
(unaudited)
 
ASSETS
                       
Non-current assets
                       
Property, plant and equipment
   
15,191
     
14,462
     
14,163
     
13,403
 
Goodwill and intangible assets
   
92,185
     
90,438
     
88,996
     
87,275
 
Deferred tax assets
   
15,074
     
15,352
     
14,669
     
14,556
 
Other assets
   
904
     
873
     
828
     
870
 
Total non-current assets
   
123,354
     
121,125
     
118,656
     
116,104
 
                                 
Current assets
                               
Inventories
   
32,711
     
33,620
     
32,659
     
32,589
 
Trade and other receivables
   
24,603
     
24,856
     
22,683
     
22,586
 
Income tax receivable
   
1,427
     
1,220
     
1,290
     
1,205
 
Cash and cash equivalents
   
62,529
     
63,977
     
69,851
     
77,108
 
Total current assets
   
121,270
     
123,673
     
126,483
     
133,488
 
                                 
TOTAL ASSETS
   
244,624
     
244,798
     
245,139
     
249,592
 
                                 
EQUITY AND LIABILITIES
                               
Equity attributable to the equity holders of the parent
                               
Share capital
   
1,224
     
1,176
     
1,176
     
1,224
 
Share premium
   
16,077
     
16,122
     
16,122
     
16,187
 
Accumulated surplus
   
89,878
     
90,977
     
93,171
     
93,004
 
Other reserves
   
(792
)
   
(1,409
)
   
(1,193
)
   
(1,688
)
Total equity
   
106,387
     
106,866
     
109,276
     
108,727
 
                                 
Current liabilities
                               
Income tax payable
   
502
     
582
     
181
     
175
 
Trade and other payables
   
22,923
     
22,572
     
20,893
     
25,028
 
Provisions
   
75
     
75
     
75
     
75
 
Total current liabilities
   
23,500
     
23,229
     
21,149
     
25,278
 
                                 
Non-current liabilities
                               
Exchangeable senior note payable
   
95,316
     
95,245
     
95,462
     
96,491
 
Other payables
   
582
     
640
     
698
     
735
 
Deferred tax liabilities
   
18,839
     
18,818
     
18,554
     
18,361
 
Total non-current liabilities
   
114,737
     
114,703
     
114,714
     
115,587
 
                                 
TOTAL LIABILITIES
   
138,237
     
137,932
     
135,863
     
140,865
 
                                 
TOTAL EQUITY AND LIABILITIES
   
244,624
     
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).


 
Trinity Biotech plc
Consolidated Statement of Cash Flows
 
(US$000’s)
 
Three Months
Ended
September 30,
2017
(unaudited)
   
Three Months
Ended
September 30,
2016
(unaudited)
   
Nine Months
Ended
September 30,
2017
(unaudited)
   
Nine Months
Ended
September 30,
2016
(unaudited)
 
                         
Cash and cash equivalents at beginning of period
   
63,977
     
84,920
     
77,109
     
101,953
 
                                 
Operating cash flows before changes in working capital
   
3,672
     
5,164
     
9,679
     
12,950
 
Changes in working capital
   
313
     
393
     
(2,262
)
   
(3,469
)
Cash generated from operations
   
3,985
     
5,557
     
7,417
     
9,481
 
                                 
Net Interest and Income taxes (paid)/received
   
86
     
(171
)
   
324
     
(263
)
                                 
Capital Expenditure & Financing (net)
   
(3,727
)
   
(5,555
)
   
(10,559
)
   
(16,982
)
                                 
Free cash flow
   
344
     
(169
)
   
(2,818
)
   
(7,764
)
                                 
Share buyback
   
(1,543
)
   
-
     
(6,472
)
   
(6,026
)
                                 
Payment of HIV-2 licence fee
   
-
     
-
     
(1,112
)
   
(1,112
)
                                 
30 year Exchangeable Note interest payment
   
-
     
-
     
(2,300
)
   
(2,300
)
                                 
Once-off items
   
(249
)
   
-
     
(1,878
)
   
-
 
                                 
Cash and cash equivalents at end of period
   
62,529
     
84,751
     
62,529
     
84,751
 
 
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: 1 November 2017