EX-99 2 ex99-1041707.htm EXHIBIT 99.1

Exhibit 99.1

 

MEDTOX Scientific, Inc.

402 West County Road D

St. Paul, MN 55112

Contact: Paula Perry (877) 715-7236

 

FOR IMMEDIATE RELEASE

 

MEDTOX SCIENTIFIC ANNOUNCES

FIRST QUARTER RESULTS

 

ST. PAUL, Minn., April 17, 2007 – MEDTOX Scientific, Inc. (Nasdaq:MTOX) today announced results for the first quarter ended March 31, 2007. MEDTOX achieved record revenues, gross profit, gross margin, operating income and net income for the quarter:

 

Revenues for the quarter increased $2.7 million to $19.0 million, or 16%

 

Gross profit for the quarter increased $1.6 million to $8.7 million, or 22%

 

Consolidated gross margin for the quarter increased to 46.0% from 43.7%

 

Operating income for the quarter increased $870,000 to $2.4 million, or 56%

 

Net income for the quarter increased $801,000 to $1.6 million, or 106%

For the three-month period, revenues were $19,026,000, compared to $16,350,000 from the prior-year period. The Company recorded operating income of $2,420,000 for the three-month period, compared to $1,550,000 for the prior-year period. The Company recorded net income of $1,555,000, or $0.18 per diluted share for the three-month period, compared to $754,000, or $0.09 per diluted share for the prior-year period.

Margins continue to improve, increasing to 46.0% for the year compared to 43.7% for the prior year. Total operating expenses as a percentage of sales decreased to 33.2% for the year, compared to 34.2% for the prior-year period. The Company’s balance sheet also continues to improve. At March 31, 2007, the revolving line of credit had no outstanding balance and continued repayment of long-term debt has reduced the balance from $2.1 million at December 31, 2006 to $1.5 million at March 31, 2007.

 


 

MEDTOX will hold a teleconference to discuss first quarter 2007 results today at 9:30 a.m. Central Time (10:30 a.m. Eastern). The Company will discuss these results and other corporate matters. During the conference call the Company may discuss and answer questions concerning business and financial developments and trends. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed. To access the teleconference, dial (877) 704-5382 ten minutes before the scheduled start time today. International callers may access the call by dialing (913) 312-1296. 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 under “webcasts” at www.medtox.com. An audio replay of the conference call will be available through April 24 at (888) 203-1112, passcode # 5040573. International callers may access the replay at (719) 457-0820 with the same passcode # 5040573.

MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of high quality specialized laboratory testing services and on-site/point-of-collection testing (POCT) devices. The company also supports customers with complete logistics, data and program management services. 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. 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. 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 in the Company's 2006 Annual Report on Form 10-K and incorporated herein by reference.

 

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MEDTOX SCIENTIFIC, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)

 

 

Three Months Ended

 

March 31, 2007

 

March 31, 2006

 

REVENUES:

 

 

 

 

 

 

Laboratory services

$

14,961

 

$

12,402

 

Product sales

 

4,065

 

 

3,948

 

 

 

19,026

 

 

16,350

 

 

 

 

 

 

 

 

COST OF REVENUES:

 

 

 

 

 

 

Cost of services

 

8,792

 

 

7,634

 

Cost of sales

 

1,492

 

 

1,572

 

 

 

10,284

 

 

9,206

 

 

 

 

 

 

 

 

GROSS PROFIT

 

8,742

 

 

7,144

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

Selling, general and administrative

 

5,725

 

 

5,134

 

Research and development

 

597

 

 

460

 

 

 

6,322

 

 

5,594

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

2,420

 

 

1,550

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

Interest expense

 

(57

)

 

(154

)

Other expense, net

 

(137

)

 

(168

)

 

 

(194

)

 

(322

)

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAX EXPENSE

 

2,226

 

 

1,228

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE

 

(671

)

 

(474

)

 

 

 

 

 

 

 

NET INCOME

$

1,555

 

$

754

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

$

0.19

 

$

0.09

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE

$

0.18

 

$

0.09

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:

 

 

 

 

 

 

Basic

 

8,178,483

 

 

8,154,596

 

Diluted

 

8,854,830

 

 

8,732,848

 

 

 

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MEDTOX SCIENTIFIC, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

 

 

 

March 31,

2007

 

December 31,

2006

 

ASSETS

 

 

 

 

Cash and cash equivalents

$ 1,501

 

$ 1,261

 

Accounts receivable, net

13,072

 

11,067

 

Inventories

3,637

 

3,538

 

Other current assets

2,626

 

2,841

 

Total current assets

20,836

 

18,707

 

 

 

 

 

 

Building, equipment and improvements, net

20,511

 

19,572

 

 

 

 

 

 

Other assets

20,846

 

21,595

 

Total assets

$ 62,193

 

$ 59,874

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities

$ 10,717

 

$ 8,892

 

 

 

 

 

 

Long-term obligations

2,647

 

3,038

 

 

 

 

 

 

Stockholders’ equity

48,829

 

47,944

 

Total liabilities and stockholders’ equity

$ 62,193

 

$ 59,874

 

 

 

 

 

 

 

 

 

 

 

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