ST. PAUL, Minn., July 17, 2007 (PRIME NEWSWIRE) -- MEDTOX Scientific, Inc. (Nasdaq:MTOX) announced today results for the second quarter ended June 30, 2007.
For the six-month period, revenues increased to $39,802,000, compared to $33,749,000, or 17.9%, from the prior-year period. Operating income increased to $5,080,000, compared to $3,875,000, or 31.1%, from the prior-year period. The Company recorded net income of $3,316,000, or $0.37 per diluted share, compared to net income of $2,036,000, or $0.23 per diluted share, or a 62.9% increase in net income from the comparable period last year. Gross margin was 46.0% compared to 44.1% for the comparable period last year.
For the three-month period ended June 30, 2007, revenues increased to $20,776,000, compared to $17,399,000, or 19.4%, from the prior-year period. Operating income increased to $2,660,000, compared to $2,325,000, or 14.4%, from the comparable period last year. Net income increased to $1,761,000, or $0.20 per diluted share, compared to net income of $1,282,000, or $0.15 per diluted share, or a 37.4% increase in net income from the comparable period last year. Gross margin was 46.1% compared to 44.5% for the comparable period last year.
New account activity was strong in the quarter which resulted in record revenues, operating income, pre-tax income and net income for the quarter and year-to-date. Sales in the Diagnostic Segment increased 24.5% for the quarter. A significant contributor to this growth was the placement of an additional 100 MEDTOXScan(r) Readers with hospital clients during the quarter. The strong sales activity provides significant momentum as the Company enters the second half of 2007.
MEDTOX will hold a teleconference to discuss second quarter 2007 results today at 9:30 a.m. Central Time (10:30 a.m. Eastern). To access the teleconference, dial (800) 289-0726 ten minutes before the scheduled start time. International callers may access the call by dialing (913) 981-5545. 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 July 24 at (888) 203-1112 conference ID # 8104673. International callers may access the replay at (719) 457-0820 with the same conference ID # 8104673.
MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of high quality specialized laboratory testing services and on-site/point-of-collection (POC) 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.
The MEDTOX Scientific, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3264
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.
MEDTOX SCIENTIFIC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
REVENUES:
Laboratory services $ 15,815 $ 13,413 $ 30,776 $ 25,815
Product sales 4,961 3,986 9,026 7,934
---------- ---------- ---------- ----------
20,776 17,399 39,802 33,749
COST OF REVENUES:
Cost of services 9,317 8,175 18,109 15,809
Cost of sales 1,882 1,488 3,374 3,060
---------- ---------- ---------- ----------
11,199 9,663 21,483 18,869
---------- ---------- ---------- ----------
GROSS PROFIT 9,577 7,736 18,319 14,880
OPERATING EXPENSES:
Selling, general and
administrative 6,149 4,880 11,874 10,014
Research and
development 768 531 1,365 991
---------- ---------- ---------- ----------
6,917 5,411 13,239 11,005
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 2,660 2,325 5,080 3,875
OTHER INCOME (EXPENSE):
Interest expense (40) (119) (97) (273)
Other expense, net (7) (118) (144) (286)
---------- ---------- ---------- ----------
(47) (237) (241) (559)
---------- ---------- ---------- ----------
INCOME BEFORE INCOME
TAX EXPENSE 2,613 2,088 4,839 3,316
INCOME TAX EXPENSE (852) (806) (1,523) (1,280)
---------- ---------- ---------- ----------
NET INCOME $ 1,761 $ 1,282 $ 3,316 $ 2,036
========== ========== ========== ==========
BASIC EARNINGS PER
COMMON SHARE $ 0.21 $ 0.16 $ 0.40 $ 0.25
========== ========== ========== ==========
DILUTED EARNINGS PER
COMMON SHARE $ 0.20 $ 0.15 $ 0.37 $ 0.23
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING:
Basic 8,280,876 8,183,455 8,281,392 8,169,106
Diluted 8,994,846 8,839,176 8,949,092 8,786,645
MEDTOX SCIENTIFIC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2007 2006
-------- --------
ASSETS
Cash and cash equivalents $ 1,336 $ 1,261
Accounts receivable, net 15,126 11,067
Inventories 3,562 3,538
Other current assets 2,377 2,841
-------- --------
Total current assets 22,401 18,707
Building, equipment and improvements, net 23,236 19,572
Other assets 20,159 21,595
-------- --------
Total assets $ 65,796 $ 59,874
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 12,771 $ 8,892
Long-term obligations 2,773 3,038
Stockholders' equity 50,252 47,944
-------- --------
Total liabilities and stockholders' equity $ 65,796 $ 59,874
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