Quarter 1 Results
Total revenues for Q1, 2022 were
2021 Quarter 1 | 2022 Quarter 1 | Increase/ (Decrease) | |
$’000 | $’000 | % | |
Point-of-Care | 1,888 | 2,164 | 14.6% |
23,706 | 16,612 | (29.9%) | |
Total | 25,594 | 18,776 | (26.6%) |
Point-of-Care revenues for Q1, 2022 increased to
Gross profit for Q1, 2022 decreased to
Research and development expenses declined from
Operating profit for the 2022 quarter was
Financial expenses in Q1 2022 were
The loss after tax, before non-cash financial expenses and once-off items, for the quarter was
In Q1 2022 the Company incurred once-off accounting charges of
- Loss on disposal of Exchangeable Notes
OnDecember 15, 2021 , the Company entered into exchange agreements (the “Exchange Agreements”) with five institutional investors that held approximatelyUS$99.7m of the outstanding Exchangeable Notes, which were puttable by the holders to the Company, at par, inApril 2022 .
InJanuary 2022 , the Company successfully closed a$81.3m senior secured term loan credit facility withPerceptive Advisors . Proceeds from the term loan, along with existing cash and the issuance of 5.3 million American Depository Shares (“ADS”) in the Company, were used to retire approximately$99.7m of the Exchangeable Notes.
The accounting measure of total consideration for the retirement of the Exchangeable Notes was$92.9m , consisting of cash consideration of$86.7m and ADSs in the Company with a market value at the date of issue of$6.2m .
The Exchangeable Notes were treated as a host debt instrument under IFRS with embedded derivatives attached. The embedded derivatives related to a number of put and call options which were measured at fair value in the Income Statement. On initial recognition in 2015, the host debt instrument was recognised at the residual value of the total net proceeds of the bond issue less fair value of the embedded derivatives. Subsequently, the host debt instrument was measured at amortised cost using the effective interest rate method.
At date of disposal, the carrying value of the extinguished Exchangeable Notes was$83.2m . As the IFRS measure of consideration was higher by$9.7m , the resulting loss on disposal was recorded as a once-off charge in the Income Statement in Q1 2022.
Adjusted EBITDA for Q1 2022 was$0.9m and Adjusted EBITDASO was$1.1m . This is made up as follows:
$m | |
Loss after tax | (12.3) |
Non-cash financial expense | 0.1 |
Once-off items | 10.3 |
Net financing expense | 2.2 |
Income tax credit | (0.1) |
Operating Profit (before non-cash and once-off items) | 0.2 |
Depreciation | 0.5 |
Amortisation | 0.2 |
Adjusted EBITDA | 0.9 |
Share option expense | 0.2 |
Adjusted EBITDASO | 1.1 |
The basic loss per ADS for Q1 2022 was
New term loan
During Q1, 2022, the Company completed the drawdown of a senior secured term loan credit facility with
$76.2m is shown in Long Term liabilities as a Senior secured term loan. At initial recognition, the balance comprised the principal loan amount of$81.3m less loan origination costs of$3.6 million , less two derivative financial balances totalling$1.7m to give a balance of$76.0m . In Q1, 2022, accretion interest and the amortization of loan origination costs of$0.2m were recorded to give a closing carrying value of$76.2m atMarch 31, 2022 .
- The other two balances are i) a derivative financial asset and ii) a derivative financial liability, and these are initially recognised at fair value under IFRS 9.
- The derivative financial asset is valued at
$0.2m atMarch 31, 2022 and represents an estimate atMarch 31, 2022 of the value to the Company of being able to repay the term loan early and potentially refinance at lower interest rate.
- The derivative financial liability is valued at
$1.7m atMarch 31, 2022 and represents the fair value of the warrants issued to Perceptive. As part of the Credit Agreement, the Company agreed to issue warrants to Perceptive for 2.5 million of the Company’s ADSs. The per ADS exercise price of the warrants is$1.30 . The warrants are exercisable, in whole or part, until the seventh anniversary of the date of drawdown of the funding under the term loan.
- The fair value remeasurement for these two derivative financial balances in Q1 2022, resulted in non-cash financial income of approximately
$0.2m being recognised in the Income Statement.
Liquidity
The Group’s cash balance decreased by
Use of Non-IFRS Financial Measures
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. Once-off charges are also Non-GAAP accounting presentations 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.
Comments
Commenting, Ronan O’Caoimh, Chief Executive Officer, stated, “Following our successful refinancing in Q1, 2022 with
The above-mentioned numbers are unaudited.
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
About
Consolidated Income Statements | ||||||
(US$000’s except share data) | Three Months Ended 2022 (unaudited) | Three Months Ended 2021 (unaudited) | ||||
Revenues | 18,776 | 25,594 | ||||
Cost of sales | (11,506 | ) | (14,681 | ) | ||
Gross profit | 7,270 | 10,913 | ||||
Gross margin % | 38.7 | % | 42.6 | % | ||
Other operating income | 1 | 1 | ||||
Research & development expenses | (965 | ) | (1,437 | ) | ||
Selling, general and administrative expenses | (5,936 | ) | (6,019 | ) | ||
Indirect share based payments | (197 | ) | (380 | ) | ||
Operating profit | 173 | 3,078 | ||||
Financial income | - | 1 | ||||
Financial expenses | (2,244 | ) | (1,210 | ) | ||
Net financing expense | (2,244 | ) | (1,209 | ) | ||
(Loss)/Profit before tax, once-off & non-cash items | (2,071 | ) | 1,869 | |||
Income tax credit/(expense) | 150 | (105 | ) | |||
(Loss)/Profit after tax before once-off & non-cash items | (1,921 | ) | 1,764 | |||
Non-cash financial expense* | (82 | ) | (162 | ) | ||
Once-off items | (10,276 | ) | - | |||
(Loss)/Profit after tax | (12,279 | ) | 1,602 | |||
(Loss)/ Earnings per ADS (US cents) | (50.0 | ) | 7.7 | |||
Diluted (loss)/ earnings per ADS (US cents) | (50.0 | ) | 7.1 | |||
Weighted average no. of ADSs used in computing basic earnings per ADS | 24,575,333 | 20,901,703 | ||||
Weighted average no. of ADSs used in computing diluted earnings per ADS | 24,575,333 | 22,656,559 |
*Non-cash financial expense refers to accretion interest, amortisation of loan origination costs and fair value adjustments.
The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company’s accounting policies but do not constitute an interim financial report as defined in IAS 34 (Interim Financial Reporting). Once-off items & non-cash financial items are non-GAAP accounting presentations.
Consolidated Balance Sheets | |||||
2022 US$ ‘000 (unaudited) | 2021 US$ ‘000 | ||||
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment | 5,634 | 5,918 | |||
37,320 | 35,981 | ||||
Deferred tax assets | 4,478 | 4,101 | |||
Derivative financial asset | 219 | - | |||
Other assets | 175 | 207 | |||
Total non-current assets | 47,826 | 46,207 | |||
Current assets | |||||
Inventories | 29,627 | 29,123 | |||
Trade and other receivables | 16,898 | 16,116 | |||
Income tax receivable | 1,734 | 1,539 | |||
Cash, cash equivalents and deposits | 10,012 | 25,910 | |||
Total current assets | 58,271 | 72,688 | |||
TOTAL ASSETS | 106,097 | 118,895 | |||
EQUITY AND LIABILITIES | |||||
Equity attributable to the equity holders of the parent | |||||
Share capital | 1,445 | 1,213 | |||
Share premium | 21,874 | 16,187 | |||
(24,922 | ) | (24,922 | ) | ||
Accumulated surplus | 481 | 12,559 | |||
Translation reserve | (5,186 | ) | (5,379 | ) | |
Other reserves | 23 | 23 | |||
Total equity/(deficit) | (6,285 | ) | (319 | ) | |
Current liabilities | |||||
Income tax payable | 40 | 22 | |||
Trade and other payables | 15,637 | 17,107 | |||
Exchangeable senior note payable | 210 | 83,312 | |||
Provisions | 50 | 50 | |||
Total current liabilities | 15,937 | 100,491 | |||
Non-current liabilities | |||||
Senior secured term loan | 76,246 | - | |||
Derivative financial liability | 1,671 | - | |||
Other payables | 13,279 | 13,865 | |||
Deferred tax liabilities | 5,249 | 4,858 | |||
Total non-current liabilities | 96,445 | 18,723 | |||
TOTAL LIABILITIES | 112,382 | 119,214 | |||
TOTAL EQUITY AND LIABILITIES | 106,097 | 118,895 |
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 2022 (unaudited) | Three Months Ended 2021 (unaudited) | |||
Cash and cash equivalents at beginning of period | 25,910 | 27,327 | |||
Operating cash flows before changes in working capital | (20 | ) | 4,063 | ||
Changes in working capital | (1,282 | ) | 1,830 | ||
Cash generated from/(used in) operations | (1,302 | ) | 5,893 | ||
Net interest and income taxes (paid)/received | (13 | ) | 190 | ||
Capital expenditure and financing (net) | (1,795 | ) | (2,196 | ) | |
Payments for leases (IFRS 16) | (688 | ) | (701 | ) | |
Free Cash Flow | (3,798 | ) | 3,186 | ||
Interest Paid | (3,069 | ) | - | ||
Payment of Refinancing Closing Fees | (2,316 | ) | - | ||
Proceeds from term loan (net) | 80,015 | - | |||
Repayment of Exchangeable Notes | (86,730 | ) | - | ||
Proceeds received under Paycheck Protection Program | - | 1,764 | |||
Cash and cash equivalents at end of period | 10,012 | 32,277 |
The above is an abbreviated statement of cash flows and contains non-GAAP accounting presentations.
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)-1-2769800Lytham Partners, LLC Joe Diaz (1)-602-889-9700 E-mail: investorrelations@trinitybiotech.com
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