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Trinity Biotech(TRIB) - 2024 Q3 - Earnings Call Transcript
TRIBTrinity Biotech(TRIB)2024-11-15 17:37
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Financial Data and Key Metrics - Q3 2024 revenue was 15.2million,a315.2 million, a 3% year-on-year increase, driven by TrinScreen HIV revenues [9][37] - Operating loss before restructuring and impairment charges decreased to 2.2 million from 4.5millioninQ32023,a514.5 million in Q3 2023, a 51% improvement [10] - Gross profit for Q3 2024 was 5.3 million, with a gross margin of 35%, consistent with Q3 2023 excluding stock obsolescence costs [39] - Adjusted EBITDASO for Q3 2024 was a loss of 1.4million,comparedtoalossof1.4 million, compared to a loss of 3.5 million in Q3 2023 [44] - Net loss post-tax and interest for Q3 2024 was 4.8million,comparedto4.8 million, compared to 6.7 million in Q3 2023 [43] Business Line Performance - TrinScreen HIV revenues were lower in Q3 compared to Q2 due to ordering patterns, but full-year 2024 guidance remains at 10million[9][37]−HemoglobinA1CtestingrevenueswerelowerinQ32024comparedtoQ32023duetounevenorderingpatternsin2023[10]−Point−of−carerevenueincreasedby6010 million [9][37] - Hemoglobin A1C testing revenues were lower in Q3 2024 compared to Q3 2023 due to uneven ordering patterns in 2023 [10] - Point-of-care revenue increased by 60% year-on-year to 4.3 million, driven by TrinScreen product sales [37] - Clinical laboratory revenues decreased by 9% year-on-year to 10.8million,withastrongperformanceinclinicalchemistryoffsetbya7010.8 million, with a strong performance in clinical chemistry offset by a 70% decline in hemoglobin business revenues [38] Market Performance - The continuous glucose monitor (CGM) market is valued at over 10 billion annually and is projected to grow rapidly [6] - The company is targeting the CGM market with a next-generation solution designed to reduce cost per day and waste, leveraging reusable components [13][16] - The prostate cancer market in the US is significant, with an estimated annual cost of over 100billionfordiagnosisandtreatment[21]−Thepreeclampsiamarketimpactsupto5100 billion for diagnosis and treatment [21] - The preeclampsia market impacts up to 5% of pregnancies in the US, with significant health risks for mothers and babies [23] Strategic Direction and Industry Competition - The company is focusing on long-term growth through its CGM solution and recent acquisitions in prostate cancer and preeclampsia diagnostics [6][7][19] - The FDA's new rules on lab-developed tests (LDTs) provide a competitive advantage for the company, as its Immco lab is New York State Department of Health certified [19] - The company is leveraging its New York State lab to attract innovative technologies and products, aiming to address large-scale clinical issues [20] - Strategic manufacturing and supply chain relationships are being established to prepare for global scaling upon product launch [18] Management Commentary on Operating Environment and Future Outlook - The company expects a near-term step change in profitability performance as many profitability initiatives are set to be completed by the end of 2024 or early 2025 [11] - The company is on track to achieve approximately 20 million of annualized run rate EBITDASO and 75millionofannualizedrunraterevenuesbyQ22025[33]−ThecompanyhasregainedcompliancewithNASDAQlistingrequirements,removinganoverhangonitsstock[34]OtherImportantInformation−ThecompanyhascompletedthetransferofitssecondrapidHIVproductmanufacturingprocesstoanoffshorepartner,withcommercialproductionexpectedtobegininQ12025[27]−Thecompanyisconsolidatingmanufacturingactivities,includingtheclosureofitsKansasCityplantbytheendof2024andtheBuffalositebyQ12025[29]−Thecompanyhasmadea12.575 million of annualized run rate revenues by Q2 2025 [33] - The company has regained compliance with NASDAQ listing requirements, removing an overhang on its stock [34] Other Important Information - The company has completed the transfer of its second rapid HIV product manufacturing process to an offshore partner, with commercial production expected to begin in Q1 2025 [27] - The company is consolidating manufacturing activities, including the closure of its Kansas City plant by the end of 2024 and the Buffalo site by Q1 2025 [29] - The company has made a 12.5% strategic investment in Novus Diagnostics, which is developing a rapid 15-minute sepsis test [25] Q&A Session Summary Question: TrinScreen sales expectations for Q4 2024 - The company expects approximately 3 million in TrinScreen sales for Q4 2024, consistent with historical ordering patterns [48] Question: Premier Instruments sales outlook - Premier Instruments sales are expected to stabilize, with a focus on the new column proposition, which offers better value and lower costs [49][50][51] Question: Timeline for cost reduction initiatives - The first phase of cost reduction initiatives is expected to be completed by the end of Q1 2025, with significant profitability and cash flow benefits anticipated [52][53] Question: Commercialization timeline for prostate cancer and preeclampsia tests - The preeclampsia test is expected to generate revenue in the second half of 2025, while the prostate cancer test is expected to generate revenue in 2026 [55][57] Question: Key drivers for achieving Q2 2025 financial goals - The biggest contributors to achieving the Q2 2025 financial goals are the consolidation of manufacturing facilities and offshoring of less complex operations [59] Question: TrinScreen revenue sources for 2025 - TrinScreen revenues for 2025 are expected to come from a mix of new tenders and existing evaluations, with the company prepared to scale up production as needed [61][62] Question: Remaining capacity on the ATM - There is less than $1 million remaining on the current ATM filing [63]