MEDTOX Scientific Announces Results for Fourth Quarter and Year-End 2009
February 09 2010 - 11:00PM
MEDTOX Scientific, Inc. (Nasdaq:MTOX) today announced fourth
quarter and year-end results for the periods ended December 31,
2009.
For the three-month period, revenues were $19.9 million,
compared to $20.8 million from the prior-year period. The
Company recorded an operating loss of $0.5 million for the
three-month period, compared to operating income of $1.1 million
for the prior-year period. The Company recorded a net loss of
$0.2 million for the three-month period, compared to net income of
$0.4 million for the prior-year period. Loss per diluted share
was $0.02 in the fourth quarter of 2009, compared to earnings per
diluted share of $0.05 in the fourth quarter of 2008.
For the twelve month period, revenues were $84.1 million
compared to $85.8 million for the prior-year period. The
Company recorded operating income of $2.0 million for the
twelve-month period, compared to $9.6 million for the prior-year
period. The Company recorded net income of $1.3 million for 2009,
compared to $5.6 million for the prior-year period. Earnings
per diluted share were $0.15, compared to 2008 earnings per diluted
share of $0.62.
The Company's balance sheet continues to improve. At
December 31, 2009, the revolving line of credit had no outstanding
balance, and there is no long term debt. Also the Company made
capital expenditures of $4.9 million during the year, financed from
internally generated cash, down from $8.5 million in the prior
year. Cash on hand at year end was $4.2 million, up slightly
from the prior year period.
In our Laboratory Segment, revenues from drugs-of-abuse (DAU)
testing decreased a net 9.9%, to $36.0 million from $40.0 million
in the prior year, and 5.7% to $8.5 million from $9.0 million in
the prior quarter. The decrease is a result of lower testing
volumes from our workplace clients due to economic conditions.
Revenues from existing clients were down 18% for the quarter and
24% for the year. The decrease in DAU revenues from existing
clients was offset by continued strong new business activity in the
quarter and the year of 11.8% and 14.4% respectively. We will
continue to be aggressive in taking market share and preserving
existing client relationships.
Our clinical laboratory expansion initiated in 2008 continues to
gain momentum with clinical revenues (excluding Clinical Trial
Services) of $5.9 million for the quarter and $22.9 million for the
year, compared to $5.2 million and $19.3 million in prior periods,
or an increase of 13.3% and 18.5%, respectively. Within the
clinical laboratory, Clinical Trial Services (CTS) revenues were
$1.0 million for the quarter and $6.9 million for the year. This
represents a 52.4% decrease and 1.9% increase for the quarter and
year, respectively. Through three quarters CTS was up 27% year over
year. CTS is project based and in the second half of 2009,
especially the fourth quarter, we experienced both a slow down of
projects and a deferral of work into 2010. The CTS backlog
consisting of signed protocols and verbally awarded business is
strong heading into 2010, and leads us to be optimistic for an
improved 2010. In addition to preserving our client relationships,
we added seven new pharma clients in 2009 for whom we have not
previously provided testing services.
In the Diagnostic Segment, revenues were down 7.3% year over
year. In the quarter revenues were flat quarter over quarter. While
we experienced growth in both the hospital and government market
segments in the quarter, revenues from our workplace drugs-of-abuse
clients were down 21.3% year over year, and 7.7% in the quarter. We
also experienced lower revenues from contract manufacturing which
we are phasing out.
We are assuming continued negative impact in 2010 on our
drugs-of-abuse testing revenues caused by economic conditions. In
the first quarter of 2009, existing clients were down 28%, with a
net decrease of 14% when factoring in new business. The rate
of revenue decline from existing customers improved to 18% in the
fourth quarter of 2009, with a net decrease of 5.7% when factoring
in new business. The negative impact of the economy should be
further mitigated by our expectation of strong on-going new
business activity in this market segment in 2010.
We enter 2010 with momentum in our clinical laboratory business,
strong new business initiatives in the drugs-of-abuse markets, no
long term debt, positive cash flow, and the best cash position in
the history of the Company.
MEDTOX will hold a teleconference to discuss 2009 fourth quarter
and year-end 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 (800) 344-6491
ten minutes before the scheduled start time today.
International callers may access the call by dialing (785)
830-7988. 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 February 17 at (888)
203-1112, passcode # 6605514. International callers may access the
replay at 719-457-0820 with the same passcode # 6605514.
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.
The MEDTOX Scientific, Inc. logo is available
at http://www.globenewswire.com/newsroom/prs/?pkgid=3264
Note: Forward looking statements contained in this press release
are made under the Private Securities Reform Act of
1995. Forward-looking statements, including those relating to
new business activity and initiatives, market share, momentum in
our clinical laboratory business, future revenues and financial
results, the CTS backlog, and economic conditions, are subject to
risks, uncertainties and other factors that could cause actual
results to differ materially from those stated in such
statements. 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 retain
existing business, changes in the competitive environment, and
general economic conditions. Further discussions of factors
that may cause such results to differ are identified in the
Company's 2008 Annual Report on Form 10-K and incorporated herein
by reference. You should take such factors into account
when making investment decisions and are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date on which they are made. We undertake no
obligation to update any forward-looking statements.
MEDTOX SCIENTIFIC, INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except share and per share
data)
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
|
|
2009
|
2008
|
2009
|
2008
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
Laboratory services:
|
|
|
|
|
Drugs-of abuse testing services
|
$8,511
|
$9,026
|
$36,040
|
$40,021
|
Clinical & other laboratory services
|
6,941
|
7,370
|
29,811
|
26,106
|
Product sales
|
4,405
|
4,425
|
18,257
|
19,686
|
|
19,857
|
20,821
|
84,108
|
85,813
|
|
|
|
|
|
COST OF REVENUES:
|
|
|
|
|
Cost of services
|
10,977
|
10,831
|
45,432
|
41,665
|
Cost of sales
|
1,980
|
1,767
|
7,781
|
7,822
|
|
12,957
|
12,598
|
53,213
|
49,487
|
|
|
|
|
|
GROSS PROFIT
|
6,900
|
8,223
|
30,895
|
36,326
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
Selling, general and administrative
|
6,837
|
6,529
|
26,663
|
24,327
|
Research and development
|
550
|
634
|
2,264
|
2,352
|
|
7,387
|
7,163
|
28,927
|
26,679
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
(487)
|
1,060
|
1,968
|
9,647
|
|
|
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
Interest expense
|
(2)
|
(10)
|
(17)
|
(77)
|
Other income (expense)
|
191
|
(382)
|
96
|
(914)
|
|
189
|
(392)
|
79
|
(991)
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE)
|
(298)
|
668
|
2,047
|
8,656
|
|
|
|
|
|
INCOME TAX BENEFIT (EXPENSE)
|
108
|
(255)
|
(748)
|
(3,084)
|
|
|
|
|
|
NET INCOME (LOSS)
|
$(190)
|
$413
|
$1,299
|
$5,572
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER COMMON SHARE
|
$(0.02)
|
$0.05
|
$0.15
|
$0.66
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER COMMON SHARE
|
$(0.02)
|
$0.05
|
$0.15
|
$0.62
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
|
|
|
|
|
Basic
|
8,557,013
|
8,456,656
|
8,536,768
|
8,455,092
|
Diluted
|
8,557,013
|
8,831,838
|
8,788,663
|
8,938,213
|
MEDTOX SCIENTIFIC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
|
|
|
|
|
December 31,
2009
|
December 31,
2008
|
ASSETS
|
|
|
Cash and cash equivalents
|
$4,165
|
$4,069
|
Accounts receivable, net
|
15,818
|
14,082
|
Inventories
|
3,593
|
3,900
|
Other current assets
|
5,011
|
4,965
|
Total current assets
|
28,587
|
27,016
|
|
|
|
Building, equipment and improvements, net
|
29,509
|
29,204
|
|
|
|
Other assets
|
17,645
|
17,306
|
Total assets
|
$75,741
|
$73,526
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
Current liabilities
|
$9,115
|
$9,624
|
|
|
|
Long-term debt
|
--
|
302
|
|
|
|
Other long-term obligations
|
5,194
|
3,135
|
|
|
|
Stockholders' equity
|
61,432
|
60,465
|
Total liabilities and stockholders' equity
|
$75,741
|
$73,526
|
CONTACT: MEDTOX Scientific, Inc.
Paula Perry
(877) 715-7236
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