Trinity Biotech plc (Nasdaq: TRIB), a leading developer and
manufacturer of diagnostic products for the point-of-care and
clinical laboratory markets, today announced the Company’s results
for the quarter ended June 30, 2023.
Summary Highlights:
Revenue:
- Total revenue for fiscal Q2, 2023
was $13.9m (excluding Fitzgerald Industries, which was disposed of
in April 2023). Excluding our Covid focused PCR Viral Transport
Media (“VTM”) products and Fitzgerald Industries, revenue for the
quarter of $13.7m was 3% lower than in Q1, 2023.
- Our core franchise Diabetes
consumables revenues increased 10% over Q1, 2023.
- Recurring Diabetes consumables
revenue rebounded strongly in Asia, increasing approximately 70%
over Q1, led by demand recovery in China. We expect this level
of demand to continue for the rest of 2023 in one of our most
important markets. In addition, Diabetes revenues grew by over 10%
collectively in our direct distribution markets, namely the US and
Brazil.
- Clinical Chemistry, Chromsystems
and Syphilis product lines continue to show positive revenue
momentum despite key raw materials backorders in some Clinical
Chemistry product lines.
- These revenue gains were offset by
lower Infectious Disease revenues compared with Q1, 2023 and
reflects the irregular order cycles in the business line. In
addition, we phased out our non-core and difficult to scale
transplant activity at our Buffalo, New York laboratory during the
quarter.
- Revenue outlook for Q3 is expected
to be approximately $14m to $15m. In addition, order backlogs
have increased substantially to approximately $1m (broadly double
the run rate in the first half of 2023).
- Significant commercial
reorganization, customer engagement initiatives and service quality
improvements have positioned the core Haemoglobins franchise for a
strong second half and 2023 revenue performance. Strategic
instrument placements and a focus on maximizing instrument
utilization are gaining traction toward building an expanding,
recurring revenue profile for the business. Diabetes consumables
are expected to increase over 20% in the second half of 2023 vs the
first half.
- Diabetes Instrument placements for
the second half of the year are accelerating and are expected to be
up to double those placed in the first half of 2023.
Haemoglobins:
- In August, Trinity Biotech received
U.S. FDA 510(k) clearance for the Premier Resolution System, the
automated analyzer for accurate & precise quantification of
haemoglobin variants. Our intention is to retake the market leader
position in haemoglobin variants with this modern successor to the
highly regarded Ultra2 platform. The Premier Resolution System
builds on our Ion Exchange technology reputation of excellence and
a market leading combination of accuracy, speed and value. We also
expect this important clearance from the FDA to drive further
penetration and increased utilization of the Premier Resolution
System in key global markets, including Brazil (where there is
substantial scale in blood bank screening), and allow us to begin
the regulatory process for the Chinese market.
- The redevelopment of our flagship
diabetes HbA1c platform, the Premier 9210, is on track for a phased
roll-out in 2024. The final redeveloped system is expected to
feature an improved, backward compatible column and reagent
formulation that should feature up to 3 times the current injection
capacity and reduced calibration frequency, with improved user
interface and lab system integration. Launch of the new column and
reagent will be the first step in a multi-generational product
development plan aimed at expanding the target market into higher
throughput segments, driving lower service downtime and cost, while
significantly expanding operating margins.
- Our improved design, combined with
a significant overhaul of supply chain strategy, are expected to
yield significant reductions in instrument cost, cost of goods sold
related to test volume, and cost of service and repair.
- These cost competitive actions are
aimed at significantly expanding our total addressable market in
the high growth global Diabetes space. We have initiated a
program to manufacture a version of our core Diabetes instrument in
China. In addition to optimizing supply chain benefits, we believe
it will enable us to double our reach to a very significant
proportion of the Chinese hospital market that is limited to
domestic manufacturers. We plan to obtain regulatory approval for
domestic market entry by late 2024.
Reference Lab:
- Efforts are at an advanced stage to
significantly reposition and scale the commercial focus of our
50-state certified lab in Buffalo, New York. The Company continues
to see significant potential in its proprietary Sjogrens bio-marker
lab developed tests, despite limited commercialization activities
to date, with approximately 20% average annual growth since 2020
and annual revenues approaching $4m. A serious Autoimmune
complication of the broader dry-eye market, studies indicate that
Sjogrens syndrome may affect over 3 million individuals in the US
or 1% of the US population.
- We are entering into a strategic
revenue-sharing partnership with Trusted Health Advisors to lead
our commercial and business development activities aimed at
maximizing the Sjogren’s opportunity. The team, comprising of
ex-senior executives from Quest and Mayo Clinics, brings decades of
experience and extensive network in the industry.
- The partners intend to explore the
opportunity to leverage the Reference Lab’s Autoimmune capabilities
to jointly target proprietary biomarkers library expansion
opportunities and serve as a centre of excellence for therapeutic
drug monitoring and companion diagnostics across multiple
Autoimmune diseases.
TrinScreen HIV:
- The Company is focused executing on
the launch and distribution of its TrinScreen HIV screening test,
following the announcement by the Kenyan Ministry of Health of the
adoption of the new HIV rapid testing algorithm. This algorithm
establishes Trinity Biotech’s TrinScreen HIV as the standard
screening test in Kenya under World Health Organisation (“WHO”)
guidelines.
- Field evaluation of the algorithm
was completed in June, the Ministry of Health has communicated
procurement & use specifications to the procurement agencies,
and we have shipped kits for training purposes.
- We, along with the Kenyan
government, are addressing legal challenges to the HIV testing
algorithm and related process changes introduced. We are
anticipating resolution of court challenges in hearings being held
in early October. Our expectation, and the government's actions,
indicate that we will receive significant orders in the 4th quarter
upon resolution of these legal matters.
- The Kenyan HIV screening program is
one of the largest in Africa, with up to an estimated 10 million
screening tests annually.
Operational Transformation & Cashflow Improvement
Initiatives
Management continues to be very focused on
driving significant operational transformation and optimisation to
improve cashflow and allow our key products to gain a cost
competitive advantage in certain market segments.
As the Company operates in a highly regulated
healthcare sector, significant operational changes are typically
subject to complex technical validation processes that can create
time lags between initiation of the change process and final
implementation & benefit realisation. In that context, many of
the key operational transformation programs we initiated over the
past 12-24 months are now starting to deliver significant benefits
and are projected to deliver increased and recurring cashflow
benefits while also allowing us to target growth in certain lower
price markets, while maintaining our target margin.
Some of the key operational transformation
projects include:
Ongoing Headcount Optimisation:
- In Q2 and Q3 2023, management accelerated headcount reductions
as a result of:
- process simplification initiatives that have been ongoing for
the past number of quarters,
- the implementation of new software tools in quality/regulatory
compliance and production planning, and
- lower than expected revenues, particularly considering delays
to the TrinScreen HIV roll out in Kenya.
- Excluding the impact of the disposal of Fitzgerald Industries
and limited hiring to support TrinScreen HIV manufacturing, these
changes are expected to deliver an approximately net 20% reduction
in headcount by the end of Q4 2023 compared to Q1 2023, with a
resultant annualised cashflow saving of over $4m. Overall,
this would represent an over 35% reduction in headcount compared to
Q4 2020 when we started this optimisation journey.
- The majority of these 2023 reductions are in back-office
functions such as Finance, Quality Assurance/Regulatory, and Supply
Chain, reflecting the impact of modernisation and simplification
projects lead by the key senior functional leaders we have hired
over the past few years.
- We expect the financial benefit of these reductions to make a
meaningful impact from Q4 2023.
- To support TrinScreen HIV manufacturing we have hired
approximately 15 additional staff.
- Average revenue per headcount is a key KPI for management and
we intend to continue to transform and optimise our operations to
improve this KPI overtime.
Diabetes A1c Consumables Manufacturing Optimisation
- We are now at the final validation stages of our revised
manufacturing process for our key Diabetes A1c testing column, the
key consumable for our Premier 9210 instrument.
- Bringing this process in-house in an optimised manner is
projected to reduce the cost of goods of our Diabetes A1c testing
column by over 30%.
- Based upon our current run rate of production, this is
estimated to deliver over $1.5m in recurring annualised cashflow
savings once we have fully transitioned to the revised
manufacturing process and should also allow our Premier 9210 A1c
testing system to be more competitive in lower price/high volume
segments of the market.
- We expect the financial benefit of these reductions to make a
meaningful impact from Q4 2023 with an increased savings level in
2024 as we transition completely away from the legacy manufacturing
process.
Diabetes A1c Instrument Supply Chain Optimisation
- Over 12 months ago, we initiated a supply chain optimisation
programme for our Diabetes A1c testing instrument, with the intent
of reducing the cost and optimising the quality of the instrument
by moving to more competitive supply chain participants.
- This programme has progressed significantly, and we have
already commenced securing materials savings of 20% per
instrument. Given the success of this programme to date, we
are now targeting savings of 40%-50% in materials costs for our
Premier 9210 instrument which based upon our expected production
run rate would deliver recurring annualised cashflow savings of
over $1.5m when fully completed.
- These changes are already delivering a working capital benefit
in terms of lower inventory costs and we expect the EBITDA impact
to begin in late 2023 or early 2024 as inventory is converted into
sold product.
- In addition, this lower cost of production should allow us
competitively target growth in segments of the Diabetes A1c testing
market that are lower price but higher volume than our traditional
focus segments, whilst maintaining target margin.
- There is also significant component commonality between our
Premier 9210 and our Haemoglobin variant instrument the Premier
Resolution that recently achieved FDA 510k clearance – this means
that many of the savings achieved for the Premier 9210 instrument
can carry into a meaningful lower cost of production for the
Premier Resolution.
Diabetes A1c Reagent Column System
- As previously announced, we are developing an improved,
backward compatible reagent column system that we expect will
feature up to 3 times the injection capacity of the current
system.
- This programme is at its final stages of development and
technical validation.
- Subject to successful validation, we expect to launch this new
reagent column system in early 2024 and estimate that this system
should deliver recurring annualised incremental cost of goods
cashflow savings of over $1m whilst again facilitating us
competitively targeting growth in segments of the A1c testing
market that are lower price but higher volume than our traditional
focus segments, whilst maintaining target margin.
HIV Product Manufacturing Optimisation
- We have initiated a programme to optimise the location and cost
of certain downstream manufacturing and supply chain activities
related to our HIV products, Uni-gold and TrinScreen.
- Our initial assessment indicates that such a programme could
well deliver several million dollars of annual cashflow savings
while providing the Company with additional manufacturing capacity
to meet increased demand for TrinScreen as we roll the product out
to additional countries.
- We expect this key project to start to deliver recurring
savings in late 2024 and we will provide further updates on this
programme as it progresses.
These initiatives have contributed to increased SG&A
expenditure over the past 12 months and will continue to require
some further investment over the coming quarters. Management
believes that the future profitability and growth of the Company is
significantly dependent on optimising our cost competitiveness
which makes these investments key to delivering significant returns
over the medium term. We are prioritising investing in the
delivery of recurring savings as they should deliver increased
sustainable EBITDA and thus increased capital value within each of
our core business areas.
Balance Sheet Optimisation & New Growth
OpportunitiesAs can been seen from our results for the
past 3 quarters, our SG&A has increased - a major driver for
this increase is expenditure on third party market research and
technical assessment consultancy services as we seek to identify
next generation biotech opportunities for very significant growth
in market segments with total addressable markets of real scale
that can fuel Trinity Biotech’s growth into a much larger scale
company.As a result of this work, we have now identified and are
pursuing a select number of investment areas and associated
targets. In conjunction with pursuing these targets, we are
also closely working with our existing lenders, Perceptive
Advisors, to both improve the terms of our existing financing,
considering our lower debt levels, and support investments in these
high growth opportunity areas.We continue our strategic review of
some of our non-core business lines for potential capital
reallocation to lower debt and/or higher growth opportunity
areas. Our approach to improving cashflow through
operational transformation and organic growth in our core business
areas should also play a key role in providing cashflow for
investment and availability to incrementally improved
financing.
Second Quarter Results
(Unaudited)The results of the Fitzgerald Industries life
sciences supply business, which was sold as of April 27, 2023, have
been reported separately as discontinued operations in the
Consolidated Income Statements for all periods presented. In the
Consolidated Balance Sheet at March 31, 2023, the assets and
liabilities attributable to Fitzgerald Industries were separately
presented within “Assets included in disposal group held for sale”
and “Liabilities included in disposal group held for sale”. The
assets and liabilities attributable to Fitzgerald Industries have
been removed in our Consolidated Balance Sheet as of June 30,
2023.
Total revenues for Q2, 2023 were $13.9m which
compares to $15.4m in Q2, 2022, a decrease of 9.8% and which were
broken down as follows:
|
2023Quarter 2 |
2022Quarter 2 |
Increase/ (decrease) |
|
US$’000 |
US$’000 |
% |
Clinical Laboratory |
11,812 |
13,576 |
(13.0 |
%) |
Point-of-Care |
2,086 |
1,840 |
13.4 |
% |
Total |
13,898 |
15,416 |
(9.8 |
%) |
Clinical Laboratory revenues were $11.8m,
compared to $13.6m in Q2, 2022, representing a decrease of $1.8m or
13.0%. This decrease is due to three main factors. Firstly, there
was an approximately 16% decrease in haemoglobin revenues. Although
haemoglobins revenues are growing (there was an 8.1% increase in
Q2, 2023 compared to Q1, 2023), the year-on-year variance is
unfavourable as Q2, 2022 was an unusually strong quarter for
haemoglobins. Secondly, as previously reported, our New York
laboratory, which provided transplant testing services to a local
healthcare provider for a number of years, was notified in early
2023 that the healthcare provider was moving to a different service
provider. This contributed to a decrease of 32.4% in lab services
revenues compared to Q2, 2022. Lastly, there was a reduction of
just over $0.2m in revenues from our PCR VTM products compared to
Q2, 2022. Sales volumes for PCR VTM products have continued to
decrease due to a significant scaling down of PCR testing programs
for COVID-19.
Point-of-Care revenues for Q2, 2023 were $2.1m
which was 13.4% higher than in Q2, 2022, due primarily to higher
sales of our HIV confirmatory test Uni-gold in Africa.
In Q2, 2023, gross profit was $5.0m, or a gross
margin of 36.2%. In Q2, 2022, gross profit amounted to $5.6m, or a
gross margin of 36.2%. The reduction in gross profit is due to the
lower sales activity. Gross margin percentage is consistent with Q2
2022 despite sales price increases and cost saving initiatives, and
this is because margins have been eroded by lower revenues, with
the loss of the transplant testing services notable in Q2 2023,
together with sales mix changes.
Other operating income is $71k for Q2, 2023,
compared to $1k for Q2, 2022. This income in Q2, 2023 relates to a
transition services agreement with the acquirers of Fitzgerald
Industries.
Research and development expenses increased from
$1.0m in Q2, 2022 to $1.2m in Q2, 2023, mainly due to lower
capitalisation of payroll costs into product development intangible
assets.
Selling, general and administrative (SG&A)
expenses increased by $2m in Q2, 2023, compared Q2, 2022.
Significant elements of the $2m increase relates to:
- A higher non-cash accounting charge for share-based payments,
which increased by $0.9m in Q2, 2023 compared to Q2, 2022, due to
options granted since Q2, 2022.
- An increase in foreign exchange losses largely related to the
accounting driven requirement to mark-to-market Euro-denominated
lease liabilities for right-of-use assets. In Q2, 2022, the foreign
exchange gain on leases was just under $0.6m while in Q2, 2023, a
foreign exchange loss of $26k was recorded, resulting in an
unfavourable quarter-on-quarter variance of approximately
$0.6m.
- External advisory & professional services costs, including
third party market research and technical assessment consultancy
services, were higher by $0.6m in Q2, 2023 as we seek to identify
& pursue next generation biotech opportunities for very
significant growth in market segments with total addressable
markets of real scale that can fuel Trinity Biotech's growth into a
truly scaled global biotech company.
An impairment charge of $10.8m was recorded in
Q2, 2023, compared to an impairment charge of $0.5m in Q2, 2022.
The impairment test performed as at June 30, 2023 identified an
impairment loss in two cash generating units (“CGUs”), namely Immco
Diagnostics Inc and Trinity Biotech Do Brasil, with the majority of
the impairment charge relating to Immco. As the Company has
previously reported, Immco’s laboratory has for a number of years
provided transplant testing services to a local healthcare
provider. However, in early 2023 that healthcare provider informed
the Company that it was moving to a different service provider and
this resulted in lost revenues for the laboratory since the
beginning of Q2, 2023. Additionally, the expected level of
additional laboratory services revenue arising from its partnership
with imaware, Inc has not materialised. As a result, Immco’s value
in use, defined as the present value of its future cash flows, has
fallen below the value the carrying amount of its assets, other
than inventories, accounts receivable, cash and cash equivalents
and deferred tax assets as at June 30, 2023. Similarly, Trinity
Biotech do Brasil’s value in use at June 30, 2023 is below the
value of its relevant assets.
Operating loss for the quarter was $14.9m,
compared to an operating loss of $1.9m in Q2, 2022. The higher loss
this quarter was mainly attributable to the impairment charges,
higher non-cash share based payments charge and foreign exchange
loss on leases liabilities for right of use assets.
Financial income for Q2, 2023 was $0.1m compared
to $0.0m for Q2, 2022, and related to fair value adjustments for
the derivative asset related to the Company’s ability to repay the
term loan early.
Financial expenses in Q2, 2023 were $3.8m
compared to $8.3m in Q2, 2022, a decrease of $4.5m. The financial
expense for the current and comparative period are summarized in
the table below.
|
Q2, 2023US$’m |
Q2, 2022US$’m |
|
|
|
Term loan interest |
2.5 |
4.0 |
Penalty for early settlement of term loan |
0.9 |
3.5 |
Convertible note interest |
0.3 |
0.2 |
Notional interest on lease liabilities for Right-of-use assets |
0.2 |
0.2 |
Fair value movement for derivative balances related to term
loan |
0.0 |
0.4 |
|
3.8 |
8.3 |
Note: table contains rounded numbers.
As previously reported, in Q2, 2023 the Company
used approximately $11 million of the proceeds of the sale of the
Fitzgerald Industries sale to repay approximately $10.1 million of
its senior secured debt and, in accordance with the term loan’s
credit agreement an early repayment penalty of $0.9m was
incurred in connection with the repayment, which was recognized
this quarter as a financial expense. In Q2, 2022 the Company also
made an early partial settlement of the senior secured term loan
($34.5m) and there was a penalty for early repayment of
$3.5m. Early partial settlements of the term loan result in
an acceleration of the accretion interest expense under the
applicable IFRS accounting provisions. This accelerated interest
expense was $2.1m in Q2, 2022 and $0.5m in Q2, 2023. The difference
of $1.6m accounts for most of the variance in the term loan
interest expense in the table above, with the remaining difference
related to the higher prevailing interest rates in 2023 offset by
the effect of the lower principal outstanding.
In Q2, 2023 the financial expense for the fair
value movement for derivative balances related to the term loan was
immaterial compared to an expense of $0.4m in Q2, 2022.
The tax credit in Q2, 2023 was $0.3m compared to
a credit of $32k in Q2, 2022. The credit this quarter is mainly due
to a recovery of taxes paid by one of our Canadian entities.
The loss after tax for continuing operations for
the quarter was $18.3m in comparison to a loss of $10.1m for the
equivalent period last year. The unfavorable variance is due to
higher impairment charges, higher R&D and SG&A expenses,
partly offset by lower net financial expenses due mainly to a
reduced penalty for early partial settlement of the term loan and a
lower principal outstanding under the term loan.
Profit for the period on discontinued operations
in Q2, 2023 is $12.4m comprising the gain on the divestiture of the
Fitzgerald Industries business of $12.7m, offset by the loss for
the discontinued operations in the quarter of $0.3m. The gain on
the divestiture of Fitzgerald Industries comprises proceeds of
approximately $30m (which included proceeds from Biosynth to allow
Fitzgerald Industries repay intercompany loans owed to Trinity
Biotech) offset by associated transaction costs of $1.3m and the
net assets eliminated on disposal of $16.0m.
Loss before interest, tax, depreciation,
amortisation, share option expense, and impairment charges for
continuing operations for Q2, 2023 (Adjusted EBITDASO) was
$2.6m. This is made up as follows:
|
$m |
Operating loss |
(14.9 |
) |
Depreciation |
0.3 |
|
Amortisation |
0.2 |
|
Impairment charges |
10.8 |
|
Adjusted EBITDA for continuing operations |
(3.6 |
) |
Share option expense |
1.0 |
|
|
|
Adjusted EBITDASO for continuing operations |
(2.6 |
) |
Note: table contains rounded numbers.
The basic loss per ADS for Q2, 2023 was $0.16
compared to a basic loss per ADS of $0.29 in Q2, 2022. Diluted Loss
per ADS is the same as Basic Loss per ADS for both current and
comparative quarters.
Use of Non-IFRS Financial
MeasuresThe attached summary unaudited financial
statements were prepared in accordance with International Financial
Reporting Standards (IFRS). To supplement the consolidated
financial statements presented in accordance with IFRS, the Company
presents non-IFRS presentations of, Adjusted EBITDA and Adjusted
EBITDASO. The adjustments to the Company's IFRS results are made
with the intent of providing both management and investors a more
complete understanding of the Company's underlying operational
results, trends, and performance. Non-IFRS financial measures
mainly exclude, if and when applicable, the effect of share-based
payments, significant excess and obsolescence charges related to
inventory, depreciation, amortization and impairment charges.
Adjusted EBITDA for continuing operations and
Adjusted EBITDASO for continuing operations are presented to
evaluate the Company's financial and operating results on a
consistent basis from period to period. The Company also believes
that these measures, when viewed in combination with the Company's
financial results prepared in accordance with IFRS, provides useful
information to investors to evaluate ongoing operating results and
trends. Adjusted EBITDA for continuing operations and Adjusted
EBITDASO for continuing operations, however, should not be
considered as an alternative to operating income or net income for
the period and may not be indicative of the historic operating
results of the Company; nor is it meant to be predictive of
potential future results. Adjusted EBITDA for continuing operations
and Adjusted EBITDASO for continuing operations are not measures of
financial performance under IFRS and may not be comparable to other
similarly titled measures for other companies. Reconciliation
between the Company's operating profit/(loss) and Adjusted EBITDA
for continuing operations and Adjusted EBITDASO for continuing
operations are presented.
Liquidity
The Group’s cash balance increased from $4.2m at
the end of Q1, 2023 to $14.2m at the end of Q2, 2023, an increase
of $10.0m. For clarity, the cash balance of $4.2m at the end of Q1,
2023 included the cash balance of Fitzgerald, which was shown on
the Consolidated Balance Sheet at March 31, 2023 within “Assets
included in disposal group held for sale”.
The disposal of the Fitzgerald Industries life
sciences supply business in Q2, 2023 resulted in a net cash inflow
of $28.4m after the payment of associated transaction costs and the
disposal of the business’ cash balance at the date of sale. The
Company used approximately $11.0m of the proceeds of the sale to
repay approximately $10.1m of its senior secured debt, plus an
approximate $0.9m early repayment penalty.
Cash used by operating activities for Q2, 2023
was $4.4m (Q2, 2022: $1.9m). During Q2, 2023 the Company had
investing cash outflows related to acquisitions of property, plant
and equipment and product development of $0.6m (Q2, 2022: $1.8m)
and payments for property leases of $0.6m (Q2, 2022: $0.7m).
Interest payments in the quarter were $1.9m (Q2, 2022: $2.0m).
Forward-Looking Statements
Certain statements made in this release that are
not historical are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The
words “estimate”, “project”, “intend”, “expect”, “believe” and
similar expressions are intended to identify forward-looking
statements. These forward-looking statements involve known
and unknown risks and uncertainties. Many factors could cause
the actual results, performance or achievements of Trinity Biotech
to be materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements, including, but not limited to, the
results of research and development efforts, risks associated with
the outbreak and global spread of the coronavirus (COVID-19), the
effect of regulation by the U.S. Food and Drug Administration and
other agencies, the impact of competitive products, product
development commercialization and technological difficulties.
For additional information regarding these and other risks and
uncertainties associated with Trinity Biotech’s business, reference
is made to our reports filed from time to time with the U.S.
Securities and Exchange Commission. We undertake no
obligation to update or revise any forward-looking statements for
any reason.
About Trinity BiotechTrinity
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 plcConsolidated Income
Statements |
|
|
|
|
|
(US$000’s except share data)
|
Three Months
Ended June 30,
2023US$000(unaudited) |
Three Months
Ended June 30,
2022US$000
(unaudited) |
Six Months
Ended June 30,
2023US$000
(unaudited) |
Six Months
Ended June 30,
2022 US$000
(unaudited) |
|
|
|
|
|
Revenues |
13,898 |
|
15,416 |
|
28,727 |
|
31,090 |
|
Cost of
sales |
(8,868 |
) |
(9,835 |
) |
(18,124 |
) |
(19,527 |
) |
Gross
profit |
5,030 |
|
5,581 |
|
10,603 |
|
11,563 |
|
Gross margin % |
36.2 |
% |
36.2 |
% |
36.9 |
% |
37.2 |
% |
|
|
|
|
|
Other operating income |
71 |
|
1 |
|
71 |
|
1 |
|
Research & development expenses |
(1,233 |
) |
(984 |
) |
(2,093 |
) |
(1,949 |
) |
Selling, general and
administrative expenses |
(7,905 |
) |
(5,929 |
) |
(16,537 |
) |
(12,160 |
) |
Impairment charges |
(10,815 |
) |
(519 |
) |
(10,815 |
) |
(519 |
) |
|
|
|
|
|
Operating
Loss |
(14,852 |
) |
(1,850 |
) |
(18,771 |
) |
(3,064 |
) |
|
|
|
|
|
Financial income |
62 |
|
- |
|
216 |
|
- |
|
Financial expenses |
(3,823 |
) |
(8,300 |
) |
(6,374 |
) |
(20,303 |
) |
Net financial
expense |
(3,761 |
) |
(8,300 |
) |
(6,158 |
) |
(20,303 |
) |
|
|
|
|
|
Loss before
tax |
(18,613 |
) |
(10,150 |
) |
(24,929 |
) |
(23,367 |
) |
|
|
|
|
|
Income tax credit |
267 |
|
32 |
|
278 |
|
183 |
|
Loss for the period on
continuing operations |
(18,346 |
) |
(10,118 |
) |
(24,651 |
) |
(23,184 |
) |
|
|
|
|
|
Profit for the period on
discontinued operations |
12,358 |
|
412 |
|
12,854 |
|
1,199 |
|
Loss for the period (all
attributable to owners of the parent) |
(5,988 |
) |
(9,706 |
) |
(11,797 |
) |
(21,985 |
) |
|
|
|
|
|
Loss per ADS (US cents) |
(15.6 |
) |
(28.6 |
) |
(30.9 |
) |
(75.1 |
) |
|
|
|
|
|
Diluted loss per ADS (US
cents) |
(15.6 |
) |
(28.6 |
) |
(30.9 |
) |
(75.1 |
) |
|
|
|
|
|
Weighted average no. of ADSs used
in computing basic earnings per ADS |
38,283,367 |
|
33,952,095 |
|
38,221,258 |
|
29,289,617 |
|
|
|
|
|
|
Weighted average no. of ADSs used
in computing diluted earnings per ADS |
38,283,367 |
|
33,952,095 |
|
38,221,258 |
|
29,289,617 |
|
|
|
|
|
|
|
|
|
|
Trinity Biotech plcConsolidated Balance
Sheets |
|
|
|
|
|
June 30,2023US$
‘000(unaudited) |
March 31,2023US$
‘000(unaudited) |
December 31,2022US$
‘000 |
ASSETS |
|
|
|
Non-current
assets |
|
|
|
Property, plant and equipment |
1,869 |
|
5,496 |
|
5,682 |
|
Goodwill and intangible
assets |
15,756 |
|
21,330 |
|
35,269 |
|
Financial asset |
- |
|
1,500 |
|
– |
|
Deferred tax assets |
1,125 |
|
4,297 |
|
4,218 |
|
Derivative financial asset |
214 |
|
152 |
|
128 |
|
Other
assets |
108 |
|
120 |
|
139 |
|
Total non-current
assets |
19,072 |
|
32,895 |
|
45,436 |
|
|
|
|
|
Current
assets |
|
|
|
Assets included in disposal group
held for sale |
- |
|
17,746 |
|
– |
|
Inventories |
22,584 |
|
21,532 |
|
22,503 |
|
Trade and other receivables |
13,866 |
|
13,594 |
|
15,753 |
|
Income tax receivable |
2,240 |
|
1,858 |
|
1,834 |
|
Cash, cash equivalents and
deposits |
14,228 |
|
3,532 |
|
6,578 |
|
Total current
assets |
52,918 |
|
58,262 |
|
46,668 |
|
|
|
|
|
TOTAL
ASSETS |
71,990 |
|
91,157 |
|
92,104 |
|
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
Equity attributable to
the equity holders of the parent |
|
|
|
Share capital |
1,972 |
|
1,967 |
|
1,963 |
|
Share premium |
46,619 |
|
46,532 |
|
46,458 |
|
Treasury shares |
(24,922 |
) |
(24,922 |
) |
(24,922 |
) |
Accumulated deficit |
(36,153 |
) |
(31,140 |
) |
(26,695 |
) |
Translation reserve |
(5,628 |
) |
(5,787 |
) |
(5,775 |
) |
Equity component of convertible
note |
6,709 |
|
6,709 |
|
6,709 |
|
Other reserves |
23 |
|
23 |
|
86 |
|
Total
deficit |
(11,380 |
) |
(6,618 |
) |
(2,176 |
) |
|
|
|
|
Current
liabilities |
|
|
|
Liabilities included in disposal
group held for sale |
- |
|
1,386 |
|
– |
|
Income tax payable |
287 |
|
33 |
|
28 |
|
Trade and other payables |
12,570 |
|
12,910 |
|
15,375 |
|
Exchangeable senior note
payable |
210 |
|
210 |
|
210 |
|
Provisions |
50 |
|
50 |
|
50 |
|
Lease liabilities |
1,643 |
|
1,561 |
|
1,676 |
|
Total current
liabilities |
14,760 |
|
16,150 |
|
17,339 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
Senior secured term loan |
39,791 |
|
49,199 |
|
44,301 |
|
Derivative financial
liability |
1,526 |
|
1,517 |
|
1,569 |
|
Convertible note |
14,137 |
|
13,936 |
|
13,746 |
|
Lease liabilities |
11,547 |
|
12,026 |
|
12,267 |
|
Deferred tax liabilities |
1,609 |
|
4,947 |
|
5,058 |
|
Total non-current
liabilities |
68,610 |
|
81,625 |
|
76,941 |
|
|
|
|
|
TOTAL
LIABILITIES |
83,370 |
|
97,775 |
|
94,280 |
|
|
|
|
|
TOTAL EQUITY AND
LIABILITIES |
71,990 |
|
91,157 |
|
92,104 |
|
|
Trinity Biotech plcConsolidated Statement
of Cash Flows |
|
|
|
|
|
|
Three Months
Ended June 30,
2023US$000
(unaudited) |
Three Months
Ended June 30,
2022US$000
(unaudited) |
Six Months
Ended June 30,
2023US$000
(unaudited) |
Six Months
Ended June 30,
2022US$000
(unaudited) |
|
|
|
|
|
Cash flows from operating
activities |
|
|
|
|
Loss for the period |
(5,988 |
) |
|
(9,706 |
) |
|
(11,797 |
) |
|
(21,985 |
) |
Adjustments to reconcile loss to
cash used in operating activities: |
|
|
|
|
Depreciation |
305 |
|
|
47 |
|
|
656 |
|
|
479 |
|
Amortisation |
179 |
|
|
214 |
|
|
430 |
|
|
442 |
|
Income tax credit |
(267 |
) |
|
(29 |
) |
|
(278 |
) |
|
(180 |
) |
Financial income |
(62 |
) |
|
- |
|
|
(216 |
) |
|
- |
|
Financial expense |
3,823 |
|
|
8,300 |
|
|
6,374 |
|
|
20,303 |
|
Share-based payments |
975 |
|
|
122 |
|
|
2,339 |
|
|
319 |
|
Foreign exchange gains on
operating cash flows |
(98 |
) |
|
(191 |
) |
|
(187 |
) |
|
(149 |
) |
Impairment charges |
10,815 |
|
|
519 |
|
|
10,815 |
|
|
519 |
|
Gain on sale of business |
(12,718 |
) |
|
- |
|
|
(12,718 |
) |
|
- |
|
Other non-cash items |
(65 |
) |
|
995 |
|
|
130 |
|
|
305 |
|
|
|
|
|
|
Operating cash
(outflows)/inflows before changes in working capital |
(3,101 |
) |
|
271 |
|
|
(4,452 |
) |
|
53 |
|
Net movement on working
capital |
(1,294 |
) |
|
(2,217 |
) |
|
(2,657 |
) |
|
(3,481 |
) |
|
|
|
|
|
Cash used in operations
before income taxes |
(4,395 |
) |
|
(1,946 |
) |
|
(7,109 |
) |
|
(3,428 |
) |
Interest paid |
- |
|
|
(1 |
) |
|
- |
|
|
(3 |
) |
Interest received |
- |
|
|
2 |
|
|
- |
|
|
2 |
|
Income taxes (paid)/received |
(23 |
) |
|
13 |
|
|
(26 |
) |
|
1 |
|
|
|
|
|
|
Net cash used in
operating activities |
(4,418 |
) |
|
(1,932 |
) |
|
(7,135 |
) |
|
(3,428 |
) |
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Payments to acquire intangible
assets |
(413 |
) |
|
(1,658 |
) |
|
(768 |
) |
|
(3,211 |
) |
Payments to acquire financial
asset |
- |
|
|
- |
|
|
(700 |
) |
|
- |
|
Net proceeds from sale of business unit |
28,426 |
|
|
- |
|
|
28,426 |
|
|
- |
|
Acquisition of property, plant
and equipment |
(151 |
) |
|
(143 |
) |
|
(425 |
) |
|
(305 |
) |
|
|
|
|
|
Net cash generated/(used)
in investing activities |
27,862 |
|
|
(1,801 |
) |
|
26,533 |
|
|
(3,516 |
) |
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Net proceeds from issue of share
capital including share premium |
- |
|
|
25,019 |
|
|
- |
|
|
25,019 |
|
Net proceeds from new senior
secured term loan |
- |
|
|
- |
|
|
5,000 |
|
|
80,014 |
|
Proceeds for convertible note
issued |
- |
|
|
20,000 |
|
|
- |
|
|
20,000 |
|
Expenses paid in connection with
debt financing |
- |
|
|
(40 |
) |
|
(147 |
) |
|
(2,356 |
) |
Repayment of senior secured term
loan |
(10,050 |
) |
|
(34,500 |
) |
|
(10,050 |
) |
|
(34,500 |
) |
Penalty for early settlement of
term loan |
(905 |
) |
|
(3,450 |
) |
|
(905 |
) |
|
(3,450 |
) |
Purchase of exchangeable
notes |
- |
|
|
- |
|
|
- |
|
|
(86,730 |
) |
Interest paid on senior secured
term loan |
(1,834 |
) |
|
(1,920 |
) |
|
(4,401 |
) |
|
(3,706 |
) |
Interest paid on convertible
note |
(75 |
) |
|
(49 |
) |
|
(150 |
) |
|
(49 |
) |
Interest paid on exchangeable
notes |
- |
|
|
(4 |
) |
|
(4 |
) |
|
(1,289 |
) |
Payment of lease
liabilities |
(590 |
) |
|
(729 |
) |
|
(1,191 |
) |
|
(1,500 |
) |
|
|
|
|
|
Net cash provided
by/(used in) financing activities |
(13,454 |
) |
|
4,327 |
|
|
(11,848 |
) |
|
(8,547 |
) |
|
|
|
|
|
Increase in cash and cash
equivalents |
9,990 |
|
|
594 |
|
|
7,550 |
|
|
(15,491 |
) |
Effects of exchange rate
movements on cash held |
85 |
|
|
(153 |
) |
|
100 |
|
|
34 |
|
Cash and cash equivalents at
beginning of period |
4,153 |
|
|
10,012 |
|
|
6,578 |
|
|
25,910 |
|
|
|
|
|
|
Cash and cash equivalents
at end of period |
14,228 |
|
|
10,453 |
|
|
14,228 |
|
|
10,453 |
|
|
|
|
|
|
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).
Contact:
Trinity Biotech plc
John Gillard
(353)-1-2769800
Lytham Partners, LLC
Joe Diaz
(1)-602-889-9700
E-mail: investorrelations@trinitybiotech.com
Trinity Biotech (NASDAQ:TRIB)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Trinity Biotech (NASDAQ:TRIB)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024