6-K

 

 

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, 2016

 

 

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   x            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  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            

 

 

 


LOGO

Press Release dated July 21, 2016

 

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 2 Financial Results

DUBLIN, Ireland (July 21, 2016). 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, 2016.

Quarter 2 Results

Total revenues for Q2, 2016 were $26.3m compared to $24.3m in Q2, 2015 which is an increase of 8%. However, when the impact of foreign exchange movements, due to the strength of the US dollar against a range of other currencies, is removed revenues would have been $26.6m this quarter, thus representing an increase of 10%.

Point-of-Care revenues for Q2, 2016 were $4.8m, which represents an increase of $1.4m or 41% compared with the same quarter last year. This increase was due to higher sales of HIV kits in Africa.

Clinical Laboratory revenues for the quarter were $21.5m. However, on a constant currency basis revenues would have been $21.8m compared to $20.9m in Q2, 2015, an increase of 5%. This increase was principally due to higher sales of diabetes and autoimmune products.

Revenues for Q2, 2016 by key product area were as follows:

 

     2015
Quarter 2
     2016
Quarter 2
     2016
Quarter 2
FX
adjusted*
     Increase/
(decrease)
 
     US$’000      US$’000      US$’000      %  

Point-of-Care

     3,371         4,786         4,769         41.5 % 

Clinical Laboratory

     20,886         21,502         21,844         4.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     24,257         26,288         26,613         9.7
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* quarter 2, 2016 revenues have been recalculated on a constant currency basis using the exchange rates prevailing in Q2, 2015

Gross profit for Q2, 2016 amounted to $11.8m, representing a gross margin of 45.0%. Whilst this is lower than the 47.0% achieved in Q2, 2015, it does represent an improvement on the 43.1% reported in Q1 of this year and this is mainly attributable to the impact of higher margin HIV revenues.

Research and Development expenses have remained consistent with the equivalent quarter last year at $1.3m. Meanwhile, Selling, General and Administrative (SG&A) expenses have increased over the same period from $6.7m to $7.8m. This increase is due to the combination of foreign exchange rate factors and increased discretionary sales and marketing expenditure which includes pre-launch cardiac costs.


The net financing expense for the quarter was $121,000 versus $98,000 in the equivalent quarter in 2015. This expense can be broken down into its component parts as follows:

 

Net financing expense

   Q2 2016      Q2 2015  
     US$’000      US$’000  

Financial income

     223         93   
  

 

 

    

 

 

 

Financial expense – Exchangeable note

     (1,150      (1,134

Other financial expenses

     (35      (35
  

 

 

    

 

 

 
     (1,185      (1,169
  

 

 

    

 

 

 

Non-cash financial income

     1,020         1,150   

Non-cash financial expense – accretion interest

     (179      (172
  

 

 

    

 

 

 
     841         978   
  

 

 

    

 

 

 

Net financial expense

     (121      (98
  

 

 

    

 

 

 

Financial income increased to $223,000 from $93,000 in the equivalent quarter last year. This was primarily due to improved interest rates and a different time profile of deposits.

Financial expenses primarily consist of the cash interest payable on the Company’s exchangeable notes, which is $1.15m per quarter. The equivalent expense in 2015 is slightly lower than this due to the fact that the note offering closed on April 9, 2015 and so a full quarter of interest was not incurred.

Non-cash financial income represents adjustments required to the fair value of the derivatives embedded in the exchangeable notes along with an amount to accrete the fair value of the debt liability back to its nominal value ($115 million) over the term of the debt using an effective interest rate methodology. For Q2, 2016, the fair value adjustment was a gain to the income statement of $1m.

The tax charge for Q2, 2016 was $0.1m which equates to an effective tax rate of approximately 6% and is broadly in line with the effective rate of 7% in Q2, 2015.

Profit before tax for the quarter was $2.2m compared to $2.9m in Q2, 2015. Meanwhile, profit after tax for the quarter was $2.1m versus $2.7m for the comparative quarter. EPS for the quarter was 9.1 cents which compares to 11.6 cents for the equivalent period last year. The fully diluted EPS for the quarter was 8.5 cents.

Earnings before interest, tax, depreciation, amortisation and share option expense for the quarter was $4.4m.

Cardiac Update

In December, 2015 Trinity submitted a 510(k) application for its Meritas Troponin I Test and the Meritas Point-of-Care Analyzer to the FDA. The FDA’s review of the application is proceeding according to our expectations. As previously announced, as part of this review process, additional clinical data were requested, and this clinical work will be completed within the next two weeks enabling us to provide a response to the FDA during August, 2016.


The US clinical validation studies in support of a 510(k) submission to the US FDA for a second cardiac marker assay, B-type Natriuretic Protein (BNP), are progressing well. There are 10 clinical sites, across the US, that have been actively enrolling patient samples. Overall enrolment is currently at 90% of study target, with completion of enrolment anticipated by the end of July, 2016. We are anticipating submission of our BNP 510(k) application to the FDA by the end of Q3, 2016.

Share Buyback

The Company announced the commencement of a share repurchase program in March, 2016. During the quarter, the Company repurchased 406,000 ADRs at an average price of $11.14, representing a total value of $4.5m.

For the year to date, the Company has repurchased 538,000 ADRs, at an average price of $11.20. The total spent on share repurchases for the year to date has been $6.0m.

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer, said “Operating profit for the quarter was $2.4m. This was lower than that achieved in Q2, 2015 partly due to tighter gross margins – which is partly due to the impact of exchange rate movements. In addition we are seeing the impact of higher indirect costs again due to exchange rate factors as well as higher sales and marketing costs. However, when compared to Q1 this year, operating profits and EPS have increased by approximately 30%, with the key factor being the growth in revenues this quarter.”

Ronan O’Caoimh, CEO, stated “We were very pleased with the revenue growth of 10% achieved this quarter. This was due to higher HIV sales in Africa and strong growth in our diabetes and autoimmune product lines.

In terms of our cardiac products we have made very significant progress. We have almost completed the patient enrolment to support the additional data requested by the FDA following its initial review of our Troponin submission. This data will form part of a full and comprehensive response document, which will be submitted to the FDA in August, in order to address all of its queries. Meanwhile, we are on the verge of completing our clinical trials for our BNP product and remain on target to make our 510(k) submission to the FDA by the end of Q3, 2016. Both of these products are key to our strategic development and we are very pleased to be reaching these regulatory milestones on the road to obtaining FDA approvals.”

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

June 30,

2016

(unaudited)

   

Three Months

Ended

June 30,

2015

(unaudited)

   

Six Months

Ended

June 30,

2016

(unaudited)

   

Six Months

Ended

June 30,

2015

(unaudited)

 

Revenues

     26,288        24,257        49,804        49,267   

Cost of sales

     (14,472     (12,864     (27,856     (25,869
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     11,816        11,393        21,948        23,398   

Gross profit%

     45.0     47.0     44.1     47.5

Other operating income

     72        72        141        150   

Research & development expenses

     (1,267     (1,269     (2,414     (2,267

Selling, general and administrative expenses

     (7,797     (6,713     (14,758     (12,905

Indirect share based payments

     (468     (473     (735     (1,031
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     2,356        3,010        4,182        7,345   

Financial income

     223        93        443        94   

Financial expenses

     (1,185     (1,169     (2,366     (1,193

Non-cash financial income

     841        978        (1,188     978   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net financing expense

     (121     (98     (3,111     (121
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

     2,235        2,912        1,071        7,224   

Income tax expense

     (131     (218     (313     (522
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     2,104        2,694        758        6,702   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per ADR (US cents)

     9.1        11.6        3.3        29.0   

Earnings per ADR excluding non-cash financial income (US cents)

     5.5        7.4        8.4        24.8   

Diluted earnings per ADR (US cents)

     8.5        9.9        14.9     26.1   

Weighted average no. of ADRs used in computing basic earnings per ADR

     23,016,169        23,195,016        23,152,018        23,090,704   

Weighted average no. of ADRs used in computing diluted earnings per ADR

     28,409,024        28,812,187        28,526,486        26,285,071   

 

* Under IAS 33 Earnings per Share, diluted earnings per share cannot be anti-dilutive. Therefore, diluted earnings per ADR in accordance with IFRS would be 3.3 cents (i.e. equal to 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

 

    

June 30,

2016

US$ ‘000

(unaudited)

   

March 31,

2016

US$ ‘000

(unaudited)

   

Dec 31,

2015

US$ ‘000

(audited)

 

ASSETS

      

Non-current assets

      

Property, plant and equipment

     21,760        21,460        20,659   

Goodwill and intangible assets

     169,049        165,157        161,324   

Deferred tax assets

     13,312        13,096        12,792   

Other assets

     932        860        954   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     205,053        200,573        195,729   
  

 

 

   

 

 

   

 

 

 

Current assets

      

Inventories

     39,253        35,709        35,125   

Trade and other receivables

     27,832        26,260        25,602   

Income tax receivable

     712        664        550   

Cash and cash equivalents

     84,920        96,829        101,953   
  

 

 

   

 

 

   

 

 

 

Total current assets

     152,717        159,462        163,230   
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     357,770        360,035        358,959   
  

 

 

   

 

 

   

 

 

 

EQUITY AND LIABILITIES

      

Equity attributable to the equity holders of the parent

      

Share capital

     1,221        1,220        1,220   

Share premium

     15,575        15,521        15,526   

Accumulated surplus

     197,588        199,453        201,951   

Other reserves

     (3,721     (3,723     (4,809
  

 

 

   

 

 

   

 

 

 

Total equity

     210,663        212,471        213,888   
  

 

 

   

 

 

   

 

 

 

Current liabilities

      

Income tax payable

     657        1,026        1,163   

Trade and other payables

     19,384        19,195        18,874   

Provisions

     75        75        75   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     20,116        20,296        20,112   
  

 

 

   

 

 

   

 

 

 

Non-current liabilities

      

Exchangeable senior note payable

     99,232        100,073        98,044   

Other payables

     1,986        2,057        2,096   

Deferred tax liabilities

     25,773        25,138        24,819   
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     126,991        127,268        124,959   
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     147,107        147,564        145,071   
  

 

 

   

 

 

   

 

 

 

TOTAL EQUITY AND LIABILITIES

     357,770        360,035        358,959   
  

 

 

   

 

 

   

 

 

 

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

June 30,

2016

(unaudited)

   

Three Months

Ended

June 30,

2015

(unaudited)

   

Six Months

Ended

June 30,

2016

(unaudited)

   

Six Months

Ended

June 30,

2015

(unaudited)

 

Cash and cash equivalents at beginning of period

     96,829        5,744        101,953        9,102   

Operating cash flows before changes in working capital

     5,282        4,130        7,786        10,428   

Changes in working capital

     (3,234     (2,906     (3,862     (7,225
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash generated from operations

     2,048        1,224        3,924        3,203   

Net Interest and Income taxes (paid)/received

     149        (223     (92     (332

Capital Expenditure & Financing (net)

     (5,995     (7,218     (11,427     (11,334
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

     (3,798     (6,217     (7,595     (8,463

Share buyback

     (4,699     —          (6,026     —     

Payment of HIV-2 licence fee

     (1,112     —          (1,112     (1,112

30 year Convertible Note interest payment

     (2,300     —          (2,300     —     

30 year Convertible Note proceeds, net of fees

     —          110,730        —          110,730   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

     84,920        110,257        84,920        110,257   
  

 

 

   

 

 

   

 

 

   

 

 

 

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: July 22, 2016.