Fiscal Year 2021 Results
Total revenues for fiscal year 2021 were
Full Year 2020 | Full Year 2021 | Increase/ (decrease) | ||
US$’000 | US$’000 | % | ||
Point-of-Care | 9,215 | 10,337 | 12.2% | |
92,765 | 82,628 | (10.9%) | ||
Total | 101,980 | 92,965 | (8.8%) |
Point-of-Care revenues increased from
As stated previously, the Company noted a significant reduction in demand for new orders of VTM from early 2021 as COVID-19 testing volumes dropped and customers utilised stockpiled product. While the situation relating to COVID-19 products remains very fluid, with the evolving impact of the new variants the Company has seen increased customer interest in VTM products over recent months and has resumed manufacturing VTM products, albeit in lower volumes compared to late 2020. The Company has retained the capability to flex manufacturing volumes should market conditions warrant it.
In 2021, there was a partial return towards more normalised level of Haemoglobins testing. While COVID-19 public health restrictions remained in place in 2021 in many markets, these restrictions were not as severe as in 2020. As a result, diabetic related testing revenues increased 16% in 2021 and we are continuing to see increasing demand for these instruments and consumables as diabetic testing programmes continue their return to normalisation.
Also, within
Our autoimmune revenues decreased by 1% compared to 2020, primarily due to lower revenues in our reference laboratory. This relates to our
The gross margin for the year was 41.0% compared to 47.6% in 2020. Gross margin remains susceptible to product mix changes, geographic spread, currency fluctuations and product level variation. The reduction in the gross margin in 2021 compared to 2020 is mainly due to comparatively higher sales prices for VTM in 2020 caused by exceptionally high demand with prices and consequently gross margin reducing progressively during 2021. Lower margins were also recorded in our Fitzgerald life sciences supply business in 2021 compared to 2020 as the company made a strategic decision to pursue larger volume orders that typically have lower pricing but are expected to add to overall profitability. Additionally, the receipt of government payroll supports in 2020 related to COVID-19 helped to increase the gross margin in 2020 and these supports are not being claimed in 2021.
Other operating income increased from
Research and Development expenses decreased from
Operating profit (before the impact of once-off items) for the year decreased from
The net financing expense for the year decreased by 1.0% to
Profit before tax (before the impact of once-off items & non-cash financial income/expense) for 2021 was
Profit after tax (before the impact of once-off items & non-cash financial income/expense) was
A non-cash financial income of
In 2021 the Company incurred impairment charges and once-off items of
The basic earnings per ADR for the year was
Earnings before interest, tax, depreciation, amortisation and share option expense for the year and excluding the impact of once-off items, non-cash financial income/expenses and fair value movements for the year (Adjusted EBITDASO) was
$m | ||
Profit after tax | 0.9 | |
Non-cash financial income | (0.6) | |
Impairment & once-off items | 8.9 | |
Net financing expense | 4.8 | |
Income tax | (0.2) | |
Operating Profit (before non-cash and once-off items) | 13.8 | |
Depreciation | 1.9 | |
Amortisation | 0.9 | |
Adjusted EBITDA | 16.6 | |
Share option expense | 1.1 | |
Adjusted EBITDASO | 17.7 |
Impairment and once-off items include the following:
2021 $m | |
Impairment loss (IAS 36) | 7.0 |
Loan origination costs | 1.6 |
Restructuring expenses | 0.3 |
Total | 8.9 |
More details on these items are provided below.
Quarter 4 Results
Total revenues for Q4, 2020 were
2020 Quarter 4 | 2021 Quarter 4 | Increase/ (decrease) | ||
US$’000 | US$’000 | % | ||
Point-of-Care | 2,548 | 2,379 | (6.6%) | |
30,217 | 17,146 | (43.3%) | ||
Total | 32,765 | 19,525 | (40.4%) |
Point-of-Care revenues in Q4, 2021 were 6.6% lower than Q4, 2020 and in both quarters are largely comprised of sales of our Unigold HIV test in
Gross profit for Q4, 2021 amounted to
Other operating income decreased from
Research and Development expenses reduced from
Operating profit (before the impact of once-off items) decreased from
Financial Expenses amounted to
In Q4, 2021 the Company recorded an overall tax credit of
The profit after tax, before impairment and non-cash financial expense, for the quarter was
In Q4, 2021 the Company incurred impairment charges and once-off items of
The basic earnings per ADR for the quarter was a loss of
Earnings before interest, tax, depreciation, amortisation and share option expense for the quarter and excluding the impact of once-off items, non-cash financial income/expenses and fair value movements (Adjusted EBITDASO) was
$m | ||
Loss after tax | (1.3) | |
Non-cash financial expense | 0.2 | |
Impairment & once-off items | 2.8 | |
Net financing expense | 1.2 | |
Income tax | (1.2) | |
Operating Profit (before non-cash and once-off items) | 1.7 | |
Depreciation | 0.3 | |
Amortisation | 0.2 | |
Adjusted EBITDA | 2.2 | |
Share option expense | 0.2 | |
Adjusted EBITDASO | 2.4 |
Impairment & once-off items include the following:
Q4 2021 $m | |
Impairment loss (IAS 36) | 0.9 |
Loan origination costs | 1.6 |
Restructuring expenses | 0.3 |
Total | 2.8 |
- Impairment loss - in accordance with the provisions of IFRS accounting standards, a company is required to carry out periodic impairment reviews in order to determine the appropriate carrying value of its net assets. The impairment review performed at
December 31, 2021 has resulted in a non-cash impairment charge of$0.9m being recognised. In Q2, 2021, an impairment loss of$6.1m was also recognised. A number of factors impacted the impairment review at year end including the Company’s share price at31 December 2021 , cost of capital, cash flow projections and net asset values across each of the Company’s individual cash generating units. - Loan origination costs – as previously announced, the Company and its subsidiaries entered into a
$81,250,000 senior secured term loan credit facility withPerceptive Advisors inDecember 2021 . In Q4 2021, loan origination costs of$1.6m were incurred, comprising loan commitment and professional fees. These costs have been expensed in the Income Statement, as the loan was subject to shareholder approval and that approval was not received until post year end. - Restructuring expenses – as part of the Company’s ongoing focus on automation, efficiency and cost savings in Q4 2021, a restructuring program was implemented in the Company’s Irish manufacturing facility. A voluntary redundancy program resulted in a 7% reduction of the workforce. Restructuring expenses comprise termination payments, all of which were paid before
December 31, 2021 .
Cash flows
Cash generated from operations during the quarter was
Q4 2021 Earnings Conference Call
The Company has scheduled a conference call for
Interested parties can access the call by dialling: | |
US Toll Free: | 1-844-861-5499 |
International Toll: | 1-412-317-6581 |
Ireland Toll: | 014311269 |
Ireland Toll Free: | 1800932830 |
Please ask to be joined into the |
A simultaneous webcast of the call can be accessed at:
https://services.choruscall.com/mediaframe/webcast.html?webcastid=bJwDZEcn
A replay of the call can be accessed until | |
US Toll Free: | 1-877-344-7529 |
International Toll: | 1-412-317-0088 |
Replay Code: | 5436077 |
To access the replay using an international dial-in number, please see the link below:
https://services.choruscall.com/ccforms/replay.html
A webcast of the call will be available for 30 days at: https://services.choruscall.com/mediaframe/webcast.html?webcastid=bJwDZEcn
Replays will be available 1 hour after the end of the conference.
Use of Non-IFRS Financial Information
The Company reports financial results in accordance with IFRS. To supplement the consolidated financial statements presented in accordance with IFRS, the Company presents the Non-IFRS presentation of Adjusted EBITDA and Adjusted EBITDASO. These non-IFRS measures are not in accordance with, nor are they a substitute for, IFRS measures. The Company uses these Non-IFRS measures to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the company's results on a IFRS and non-IFRS basis is provided in a table above.
The above mentioned numbers are unaudited.
Once-off charges are non-GAAP accounting presentations.
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
Consolidated Income Statements | |||||||||
(US$000’s except share data) | Three Months Ended 2021 (unaudited) | Three Months Ended 2020 (unaudited) | Twelve Months Ended 2021 (unaudited) | Twelve Months Ended 2020 (unaudited) | |||||
Revenues | 19,525 | 32,765 | 92,965 | 101,980 | |||||
Cost of sales | (12,286) | (17,108) | (54,888) | (53,400) | |||||
Gross profit | 7,239 | 15,657 | 38,077 | 48,580 | |||||
Gross margin % | 37.1% | 47.8% | 41.0% | 47.6% | |||||
Other operating income | 722 | 1,841 | 4,672 | 1,860 | |||||
Research & development expenses | (941) | (1,284) | (4,497) | (5,080) | |||||
Selling, general and administrative expenses | (5,179) | (6,872) | (23,359) | (24,234) | |||||
Indirect share based payments | (154) | (276) | (1,096) | (780) | |||||
Operating profit | 1,687 | 9,066 | 13,797 | 20,346 | |||||
Financial income | - | - | 3 | 36 | |||||
Financial expenses | (1,201) | (1,224) | (4,811) | (4,892) | |||||
Net financing expense | (1,201) | (1,224) | (4,808) | (4,856) | |||||
Profit before tax , impairment, once-off & non-cash items | 486 | 7,842 | 8,989 | 15,490 | |||||
Income tax credit | 1,186 | 730 | 166 | 182 | |||||
Profit after tax before impairment, once-off & non-cash items | 1,672 | 8,572 | 9,155 | 15,672 | |||||
Non-cash financial income/(expense)* | (152) | (820) | 572 | (1,859) | |||||
Impairment & once-off items | (2,784) | (17,776) | (8,852) | (20,201) | |||||
(Loss)/Profit after tax | (1,264) | (10,024) | 875 | (6,388) | |||||
Earnings/(Loss) per ADS (US cents) | (6.0) | (48.0) | 4.2 | (30.6) | |||||
Diluted earnings/(loss) per ADS (US cents)** | (0.4) | (30.8) | 16.1 | (2.0) | |||||
Weighted average no. of ADSs used in computing basic earnings per ADS | 20,901,703 | 20,901,703 | 20,901,703 | 20,901,703 | |||||
Weighted average no. of ADSs used in computing diluted earnings per ADS | 26,269,194 | 26,663,066 | 26,629,663 | 26,256,183 |
*Non-cash financial income/(expense) refers to accretion interest and fair value adjustments.
** 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 ADS should be constrained to equal basic earnings per ADS.
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). Impairment, once-off charges & non-cash financial items are non-GAAP accounting presentations.
Consolidated Balance Sheets | ||||||||
2021 US$ ‘000 (unaudited) | 2021 US$ ‘000 (unaudited) | 2021 US$ ‘000 (unaudited) | 2020 US$ ‘000 (unaudited) | |||||
ASSETS | ||||||||
Non-current assets | ||||||||
Property, plant and equipment | 5,918 | 6,258 | 6,501 | 8,547 | ||||
35,981 | 34,319 | 32,864 | 33,860 | |||||
Deferred tax assets | 4,101 | 3,711 | 3,617 | 4,185 | ||||
Other assets | 207 | 244 | 279 | 355 | ||||
Total non-current assets | 46,207 | 44,532 | 43,261 | 46,947 | ||||
Current assets | ||||||||
Inventories | 29,123 | 32,116 | 34,705 | 30,219 | ||||
Trade and other receivables | 16,116 | 16,816 | 15,358 | 22,668 | ||||
Income tax receivable | 1,539 | 1,840 | 2,782 | 3,086 | ||||
Cash, cash equivalents and deposits | 25,910 | 27,475 | 28,618 | 27,327 | ||||
Total current assets | 72,688 | 78,247 | 81,463 | 83,300 | ||||
TOTAL ASSETS | 118,895 | 122,779 | 124,724 | 130,247 | ||||
EQUITY AND LIABILITIES | ||||||||
Equity attributable to the equity holders of the parent | ||||||||
Share capital | 1,213 | 1,213 | 1,213 | 1,213 | ||||
Share premium | 16,187 | 16,187 | 16,187 | 16,187 | ||||
(24,922) | (24,922) | (24,922) | (24,922) | |||||
Accumulated surplus | 12,559 | 13,685 | 12,093 | 10,573 | ||||
Translation reserve | (5,379) | (5,376) | (5,090) | (5,293) | ||||
Other reserves | 23 | 23 | 23 | 23 | ||||
Total equity/(deficit) | (319) | 810 | (496) | (2,219) | ||||
Current liabilities | ||||||||
Income tax payable | 22 | 1,018 | 751 | 154 | ||||
Trade and other payables | 17,107 | 18,324 | 21,304 | 26,488 | ||||
Exchangeable senior note payable¹ | 83,312 | 83,159 | 83,190 | - | ||||
Provisions | 50 | 376 | 376 | 416 | ||||
Total current liabilities | 100,491 | 102,877 | 105,621 | 27,058 | ||||
Non-current liabilities | ||||||||
Exchangeable senior note payable¹ | - | - | - | 83,884 | ||||
Other payables | 13,865 | 14,555 | 15,283 | 16,619 | ||||
Deferred tax liabilities | 4,858 | 4,537 | 4,316 | 4,905 | ||||
Total non-current liabilities | 18,723 | 19,092 | 19,599 | 105,408 | ||||
TOTAL LIABILITIES | 119,214 | 121,969 | 125,220 | 132,466 | ||||
TOTAL EQUITY AND LIABILITIES | 118,895 | 122,779 | 124,724 | 130,247 |
¹ Exchangeable senior notes have a nominal value of
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).
Consolidated Statement of Cash Flows | ||||||||
(US$000’s) | Three Months Ended 2021 (unaudited) | Three Months Ended 2020 (unaudited) | Twelve Months Ended 2021 (unaudited) | Twelve Months Ended 2020 (unaudited) | ||||
Cash and cash equivalents at beginning of period | 27,475 | 19,910 | 27,327 | 16,400 | ||||
Operating cash flows before changes in working capital | 5,733 | 4,678 | 16,484 | 18,179 | ||||
Changes in working capital | (1,876) | 10,164 | (4,979) | 7,688 | ||||
Cash generated from operations | 3,857 | 14,842 | 11,505 | 25,867 | ||||
Net Interest and Income taxes (paid)/received | 432 | (1,142) | 1,622 | (886) | ||||
Capital Expenditure & Financing (net) | (2,356) | (3,615) | (8,691) | (10,435) | ||||
Payments for Leases (IFRS 16) | (720) | (670) | (2,841) | (3,031) | ||||
Free Cash Flow | 1,213 | 9,415 | 1,595 | 11,515 | ||||
Payment of HIV/2 License Fee | - | - | (1,112) | |||||
30-year Exchangeable Note interest payment | (1,998) | (1,998) | (3,996) | (3,996) | ||||
Refinancing Closing Fees | (780) | - | (780) | - | ||||
Proceeds received under Paycheck Protection Program | - | - | 1,764 | 4,520 | ||||
Cash and cash equivalents at end of period | 25,910 | 27,327 | 25,910 | 27,327 | ||||
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: | ||
(353)-1-2769800 | (1)-602-889-9700 | |
E-mail: investorrelations@trinitybiotech.com |
Source:
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