-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EUvVcjKCevRYO4bFkxDoiiPX5ab/YrQkwCoMfDLNGAG2evCdMjCAY63GAQcWzepC sJ0SrPjjQzI0grLtLrEWjA== 0000739944-04-000004.txt : 20040302 0000739944-04-000004.hdr.sgml : 20040302 20040302125737 ACCESSION NUMBER: 0000739944-04-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040302 ITEM INFORMATION: FILED AS OF DATE: 20040302 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDTOX SCIENTIFIC INC CENTRAL INDEX KEY: 0000739944 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] IRS NUMBER: 953863205 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11394 FILM NUMBER: 04641856 BUSINESS ADDRESS: STREET 1: 402 WEST COUNTY ROAD D CITY: ST PAUL STATE: MN ZIP: 55112 BUSINESS PHONE: 6126367466 MAIL ADDRESS: STREET 1: 402 WEST COUNTY ROAD D CITY: ST PAUL STATE: MN ZIP: 55112 FORMER COMPANY: FORMER CONFORMED NAME: EDITEK INC DATE OF NAME CHANGE: 19940902 FORMER COMPANY: FORMER CONFORMED NAME: ENVIRONMENTAL DIAGNOSTICS INC DATE OF NAME CHANGE: 19920703 8-K 1 form8-k030204.htm 8-K 8-K

FORM 8-K


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


CURRENT REPORT


Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): March 2, 2004


MEDTOX SCIENTIFIC, INC.
(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction of incorporation)



1-11394 95-3863205
(Commission File Number) (IRS Employer Identification No.)
 
402 West County Road D
St. Paul, Minnesota 55112
(Address of principal executive offices) (Zip Code)

(651) 636-7466
(Registrant’s telephone number, including area code)

1



Item 12.   Results of Operations and Financial Condition.

        On March 2, 2004, the Company announced results for the fourth quarter and year ended December 31, 2003, as described in the press release attached as Exhibit 99.1.

2



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


  MEDTOX Scientific, Inc.  
     
     
     
Date:    March 2, 2004 By:          /s/ Richard J. Braun  
  Name:     Richard J. Braun
  Title:       Chief Executive Officer

3



EX-99 3 ex99-1030204.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

March 2, 2004

FOR:
MEDTOX Scientific, Inc.
402 West County Road D
St. Paul, MN 55112
Contact: Stephen Anderson (877) 715-7236

FOR IMMEDIATE RELEASE

MEDTOX SCIENTIFIC ANNOUNCES RESULTS
FOR FOURTH QUARTER AND YEAR-END

ST.  PAUL, March 2, 2004 – MEDTOX Scientific, Inc. (AMEX-TOX) announced today fourth-quarter and year-end revenues and earnings for the periods ending December 31, 2003. For the three-month period, revenues were $12,277,000, compared to $12,123,000 from the prior-year period. The Company recorded income from operations for the quarter of $167,000 compared to a loss from operations of ($107,000) for the prior-year period. The Company recorded a net loss of ($238,000) for the three-month period compared to a net loss of ($1,076,000) for the prior-year period. For the twelve-month period, revenues were $51,473,000, compared to $52,024,000 for the prior-year period. The Company recorded a net loss of ($308,000) for 2003 compared to net income of $11,737,000 for 2002. The Company recorded a $10,150,000 non-cash tax benefit as part of net income in 2002.

“We are encouraged by the results of the quarter,” said Dick Braun, chief executive officer of MEDTOX. “Sample volume from the Company’s existing workplace drug testing clients, though not yet at the previous year’s level, showed improvement again this quarter. Volume from new workplace drugs of abuse clients also continued to be strong in the quarter, resulting in an increase in workplace drugs of abuse sample volume of 3.7% over the fourth quarter last year.

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MEDTOX Scientific, Inc.
March 2, 2004
Page 2

“Additionally, we continued to see positive net results from our LEAN projects, staff reductions and expense control measures,” said Braun. “In spite of $249,000 in LEAN consulting and severance expense in the quarter, gross margin for the quarter improved to 38.2% compared to 36.0% for the same period in 2002, and selling, general and administrative expenses improved to 31.3% of revenues, or $3,844,000, compared to 34.4% of revenues, or $4,165,000 for the prior-year, a reduction in spending of 7.7%. R&D expenses of $677,000 in the quarter continued to run higher than the previous year and included recruiting and hiring costs associated with the addition of Dr. Robert C. Bohannon as Vice President of Technology, Research and Development in our Diagnostic Product Division, as well as severance and other costs associated with reorganization of the department. R&D expenses are expected to run between $450,000 and $500,000 per quarter for 2004.”

The Company’s steps to reduce costs and improve operating efficiencies positively impacted the second half of 2003. Although revenues remained level at $25.8 million compared to $25.6 million for the six-month periods ended December 31, 2003 and June 30, 2003, respectively, the Company experienced an improved gross margin rate of 1% and an increase in income from operations to $1,069,000 in the last six months of the year from $252,000 in the first half of the year, or 324%.

Operating improvements in 2003 have also positively impacted the Company’s balance sheet at December 31, 2003 compared to December 31, 2002. With a 1% differential in year over year annual sales, accounts receivable have been reduced from $9,398,000 to $8,367,000, or 11%; inventories have also been reduced from $4,395,000 to $3,564,000, or 19%; and long-term obligations have been reduced from $9,007,000 to $7,639,000, a reduction of $1,368,000 or 15%. Cash flow generated by operating activities was $3,157,000 in 2003.

Margin improvement and a lower operating expense rate should have a positive impact in 2004. With the prospects of the strengthening economy creating an opportunity for job growth, coupled with continuing new sales growth, the Company is optimistic with respect to 2004 results.

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MEDTOX Scientific, Inc.
March 2, 2004
Page 3

MEDTOX will hold a teleconference to discuss fourth quarter and year-end results today at 9:30 a.m. Central Time (10:30 a.m. Eastern). Dialing 800-387-5648 a few minutes prior to the scheduled start time on March 2 will access a listen-only broadcast of the teleconference. International callers may access the call by dialing 706-634-5527. Callers should ask for the MEDTOX quarterly conference call, hosted by Dick Braun, president and CEO of MEDTOX. A simultaneous webcast of the conference call will be available on the MEDTOX website in the “investors” section at www.medtox.com. An audio replay of the conference call will be available through March 9 at 800-642-1687 Conference ID # 5489284. International callers may access the replay at 706-645-9291 with the same Conference ID #.

MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of high quality specialized laboratory and on-site/point-of-collection (POC) devices. The company also supports customers with complete logistics, data and program management services. MEDTOX develops and manufactures diagnostic devices for quick and economical on-site/point-of-collection analysis for drugs of abuse, therapeutic drugs and biological and agricultural toxins and provides employment drug screening and occupational health testing. MEDTOX is a leader in providing esoteric laboratory testing services to hospitals and laboratories nationwide. This includes both central laboratory and bio-analytical testing for pharmaceutical clinical trials. For more information see www.medtox.com.

Note: Forward-looking statements contained in this press release are made under the Private Securities Reform Act of 1995. Actual results may differ due to a number of factors including a change in the employment pattern of client companies, the ability of MEDTOX to acquire new business, and changes in the competitive environment. Further discussions of factors that may cause such results to differ are identified on page three of the Company’s 2002 annual report on Form 10-K and incorporated herein by reference.

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MEDTOX Scientific, Inc.
March 2, 2004
Page 4

MEDTOX SCIENTIFIC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share amounts)
(unaudited)

Three Months Ended
December 31,
Twelve Months Ended
December 31,
2003
2002
2003
2002
REVENUES:                    
   Laboratory services   $ 9,414   $ 9,234   $ 39,424   $ 39,673  
   Product sales    2,863    2,889    12,049    12,351  




     12,277    12,123    51,473    52,024  
COST OF REVENUES:  
  Cost of services    6,351    6,608    26,357    26,792  
  Cost of sales    1,238    1,145    5,163    4,684  




     7,589    7,753    31,520    31,476  




GROSS PROFIT    4,688    4,370    19,953    20,548  
 
OPERATING EXPENSES:  
   Selling, general and administrative    3,844    4,165    16,722    16,317  
   Research and development    677    312    1,910    1,217  




     4,521    4,477    18,632    17,534  




INCOME (LOSS) FROM OPERATIONS    167    (107 )  1,321    3,014  
 
OTHER INCOME (EXPENSE):  
   Interest expense, net    (271 )  (319 )  (1,147 )  (1,344 )
   Other expense, net    (119 )  (17 )  (482 )  (83 )




     (390 )  (336 )  (1,629 )  (1,427 )




INCOME (LOSS) BEFORE INCOME TAX   
BENEFIT (EXPENSE)    (223 )  (443 )  (308 )  1,587  
 
INCOME TAX BENEFIT (EXPENSE)    (15 )  (633 )  --    10,150  




NET INCOME (LOSS)   $ (238 ) $ (1,076 ) $ (308 ) $ 11,737  




BASIC EARNINGS (LOSS) PER  
COMMON SHARE   $ (0.05 ) $ (0.22 ) $ (0.06 ) $ 2.45  




DILUTED EARNINGS (LOSS) PER  
COMMON SHARE   $ (0.05 ) $ (0.22 ) $ (0.06 ) $ 2.34  




WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING:
  
     Basic    4,979,655    4,811,340    4,942,617    4,798,098  
     Diluted    4,979,655    4,811,340    4,942,617    5,011,330  

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MEDTOX Scientific, Inc.
March 2, 2004
Page 5

MEDTOX SCIENTIFIC, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)


December 31,
2003

December 31,
2002

ASSETS            
   Cash and cash equivalents   $ 711   $ 439  
   Accounts receivable    8,367    9,398  
   Inventories    3,564    4,395  
   Other current assets    2,664    2,018  


         Total current assets    15,306    16,250  
 
   Building, equipment and improvements, net    15,092    14,769  
 
   Other assets    26,120    27,036  


         Total assets   $ 56,518   $ 58,055  


 
LIABILITIES AND STOCKHOLDERS' EQUITY   
   Current liabilities   $ 13,809   $ 14,164  
 
   Long-term obligations    7,639    9,007  
 
   Stockholders' equity    35,070    34,884  


         Total liabilities and stockholders' equity   $ 56,518   $ 58,055  





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