Quarter 3 Results
Total revenues for Q3, 2020 were
2019 Quarter 3 | 2020 Quarter 3 | Change | |
US$’000 | US$’000 | % | |
Point-of-Care | 3,880 | 2,065 | (46.8)% |
20,714 | 29,949 | 44.6% | |
Total | 24,594 | 32,014 | 30.2% |
Point-of-Care revenues for Q3, 2020 decreased from
Meanwhile,
The gross margin for the quarter was 52.4%, which compares to 41.0% in Q3, 2019. This increase was largely due to the impact of Covid-19 related sales, fewer instrument placements and lower depreciation.
Research and Development expenses increased slightly from
Operating profit increased from
Financial income for the quarter showed a reduction reflecting the lower level of cash deposits and reduced interest rates. Meanwhile, Financial Expenses amounted to
Overall, the Company recorded a profit of
EBITDA before share option expense (EBITDASO) for the quarter was
$m | |
Operating Profit | 9.1 |
Depreciation | 0.4 |
Amortisation | 0.3 |
Share Option Expense | 0.2 |
EBITDASO | 10.0 |
Covid-19 Update
ELISA Antibody Test
During the quarter the Company filed its submission to the FDA for an Emergency Use Authorization (EUA) for its Covid-19 IgG ELISA antibody test and is currently awaiting authorisation. However, as permitted under EUA regulations the Company has already launched this product for sale in the
This test determines which individuals within the population have been exposed to the SARS-CoV-2 virus (Covid-19) and demonstrates impressive performance with specificity in excess of 98% and sensitivity in excess of 95%, in samples of 14 days or more from symptom onset.
The product is being manufactured at our ELISA production facility in
Rapid Antibody Test
The Company is continuing to develop a rapid Point-of-Care Covid-19 test to detect antibodies to the virus that can be run in 12 minutes using one drop of blood procured by finger prick. Development of this product is expected to be completed by the middle of Q1, 2021 at which point it is intended to avail of the FDA’s EUA pathway in order allow its sale in the
Viral Transport Media
Sales of the Company’s Viral Transport Media product, Flextrans, which is used in the Covid-19 sample collection process for PCR molecular testing, remains very strong. Demand for this product is expected to continue for the remainder of 2020 and into 2021 as PCR testing volumes remain significant. Consequently, the Company has scaled up the manufacturing of this product at a number of its facilities.
Cost Saving Measures
As demand for the Company’s products is now returning towards pre-Covid levels, the vast majority of the Company’s employees have returned to work following extensive furloughing during Q2, 2020 and all plants are now operating normally. In the light of the continuation of the pandemic, the Company is keeping in place a range of cost-cutting measures designed to minimize discretionary expenditure. Meanwhile, the Company has commenced the process of seeking forgiveness for the
Appointment of Chief Financial Officer
The Company is pleased to announce the appointment of
Comments
Commenting on the results,
Ronan O’Caoimh, CEO said “Revenues were very strong this quarter, particularly our
In addition to the strong growth in Covid related products, our remaining business rebounded strongly from Q2, 2020 levels which had been severely impacted by the first wave of the pandemic. However, during Q3, 2020 we still experienced the continuation of some these adverse impacts particularly in relation to fewer Diabetes instrument sales and lower levels of Autoimmunity testing. In addition, whilst HIV testing in
We expect that Q4, 2020 revenues will show a further return towards pre-Covid levels combined with continued strong demand for Covid related products, demand for which is anticipated to continue well into 2021 and potentially beyond.”
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
Consolidated Income Statements
(US$000’s except share data) | Three Months Ended 2020 (unaudited) | Three Months Ended 2019 (unaudited) | Nine Months Ended 2020 (unaudited) | Nine Months Ended 2019 (unaudited) | |||||
Revenues | 32,014 | 24,594 | 69,215 | 69,117 | |||||
Cost of sales | (15,238) | (14,523) | (36,292) | (40,270) | |||||
Gross profit | 16,776 | 10,071 | 32,923 | 28,847 | |||||
Gross margin % | 52.4% | 41.0% | 47.6% | 41.7% | |||||
Other operating income | 3 | 21 | 20 | 67 | |||||
Research & development expenses | (1,265) | (1,233) | (3,796) | (3,994) | |||||
Selling, general and administrative expenses | (6,273) | (7,274) | (17,364) | (20,455) | |||||
Indirect share based payments | (156) | (252) | (504) | (609) | |||||
Operating profit | 9,085 | 1,333 | 11,279 | 3,856 | |||||
Financial income | 3 | 104 | 37 | 376 | |||||
Financial expenses | (1,215) | (1,226) | (3,668) | (3,703) | |||||
Net financing expense | (1,212) | (1,122) | (3,631) | (3,327) | |||||
Profit before tax & non-cash financial income / (expense) | 7,873 | 211 | 7,648 | 529 | |||||
Income tax expense | (387) | (114) | (549) | (5,875) | |||||
Profit/(Loss) for the period before non-cash financial income / (expense) | 7,486 | 97 | 7,099 | (5,346) | |||||
Non-cash financial (expense)/income | (161) | (72) | (1,038) | (245) | |||||
Once-off items – plant closure costs | - | - | (2,425) | - | |||||
Profit/(Loss) after tax and once-off items | 7,325 | 25 | 3,636 | (5,591) | |||||
Earnings/(Loss) per ADR (US cents) | 35.0 | 0.1 | 17.4 | (26.8) | |||||
Earnings/(Loss) per ADR excluding once-off charges & non-cash financial items (US cents) | 35.8 | 0.5 | 34.0 | (25.6) | |||||
Diluted earnings per ADR (US cents)* | 32.2 | 4.3 | 39.0 | (9.2) | |||||
Weighted average no. of ADRs used in computing basic earnings per ADR | 20,901,703 | 20,901,703 | 20,901,703 | 20,901,703 | |||||
Weighted average no. of ADRs used in computing diluted earnings per ADR | 26,321,307 | 25,467,517 | 25,894,218 | 25,467,517 | |||||
* 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. Diluted EPS is calculated excluding once-off charges & non-cash financial items.
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 Balance Sheets
2020 US$ ‘000 (unaudited) | 2020 US$ ‘000 (unaudited) | 2020 US$ ‘000 (unaudited) | 2019 US$ ‘000 (unaudited) | |||||
ASSETS | ||||||||
Non-current assets | ||||||||
Property, plant and equipment | 9,462 | 9,297 | 9,210 | 9,290 | ||||
47,876 | 46,751 | 45,498 | 43,654 | |||||
Deferred tax assets | 5,981 | 6,613 | 6,465 | 6,252 | ||||
Other assets | 387 | 378 | 485 | 485 | ||||
Total non-current assets | 63,706 | 63,039 | 61,658 | 59,681 | ||||
Current assets | ||||||||
Inventories | 29,607 | 31,473 | 32,671 | 32,021 | ||||
Trade and other receivables | 21,658 | 17,048 | 19,982 | 20,987 | ||||
Income tax receivable | 1,194 | 1,598 | 1,572 | 1,982 | ||||
Cash and cash equivalents | 19,910 | 15,570 | 13,244 | 16,400 | ||||
Total current assets | 72,369 | 65,689 | 67,469 | 71,390 | ||||
TOTAL ASSETS | 136,075 | 128,728 | 129,127 | 131,071 | ||||
EQUITY AND LIABILITIES | ||||||||
Equity attributable to the equity holders of the parent | ||||||||
Share capital | 1,213 | 1,224 | 1,224 | 1,224 | ||||
Share premium | 16,187 | 16,187 | 16,187 | 16,187 | ||||
Accumulated surplus | 15,665 | 8,194 | 9,431 | 11,514 | ||||
Other reserves | (25,994) | (26,317) | (26,074) | (24,212) | ||||
Total equity | 7,071 | (712) | 768 | 4,713 | ||||
Current liabilities | ||||||||
Income tax payable | 765 | 373 | 374 | 48 | ||||
Trade and other payables | 22,281 | 22,327 | 21,639 | 19,351 | ||||
Provisions | 50 | 50 | 50 | 50 | ||||
Total current liabilities | 23,096 | 22,750 | 22,063 | 19,449 | ||||
Non-current liabilities | ||||||||
Exchangeable senior note payable | 83,063 | 82,902 | 82,185 | 82,025 | ||||
Other payables | 16,786 | 16,531 | 17,039 | 17,745 | ||||
Deferred tax liabilities | 6,059 | 7,257 | 7,072 | 7,139 | ||||
Total non-current liabilities | 105,908 | 106,690 | 106,296 | 106,909 | ||||
TOTAL LIABILITIES | 129,004 | 129,440 | 128,359 | 126,358 | ||||
TOTAL EQUITY AND LIABILITIES | 136,075 | 128,728 | 129,127 | 131,071 |
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 2020 (unaudited) | Three Months Ended 2019 (unaudited) | Nine Months Ended 2020 (unaudited) | Nine Months Ended 2019 (unaudited) | ||||
Cash and cash equivalents at beginning of period | 15,570 | 24,990 | 16,400 | 30,277 | ||||
Operating cash flows before changes in working capital | 9,722 | 3,184 | 13,501 | 9,495 | ||||
Changes in working capital | (2,551) | 1,631 | (2,476) | (475) | ||||
Cash generated from operations | 7,171 | 4,815 | 11,025 | 9,020 | ||||
Net Interest and Income taxes (paid)/received | (141) | (181) | 256 | 34 | ||||
Capital Expenditure & Financing (net) | (1,900) | (3,776) | (6,820) | (9,970) | ||||
Payments for leases (IFRS 16) | (790) | (758) | (2,361) | (2,273) | ||||
Free cash flow | 4,340 | 100 | 2,100 | (3,189) | ||||
Payment of HIV/2 License Fee | - | - | (1,112) | - | ||||
30 year Exchangeable Note interest payment | - | - | (1,998) | (1,998) | ||||
Proceeds received under Paycheck Protection Program | - | - | 4,520 | - | ||||
Cash and cash equivalents at end of period | 19,910 | 25,090 | 19,910 | 25,090 | ||||
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:
Kevin Tansley
(353)-1-2769800
E-mail: kevin.tansley@trinitybiotech.com
Source:
2020 GlobeNewswire, Inc., source