Q2 2009 Earning Report of Medtox Scientific, Inc.

342 views

Published on

Published in: Economy & Finance, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
342
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Q2 2009 Earning Report of Medtox Scientific, Inc.

  1. 1. FORM 8-K MEDTOX SCIENTIFIC INC - MTOX Filed: July 15, 2009 (period: July 15, 2009) Report of unscheduled material events or corporate changes.
  2. 2. Table of Contents 8-K - 8-K Item 2.02. Results of Operations and Financial Condition Item 9.01. Financial Statements and Exhibits. SIGNATURES INDEX TO EXHIBITS EX-99 (EXHIBIT 99.1)
  3. 3. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 15, 2009 MEDTOX SCIENTIFIC, INC. (Exact name of registrant as specified in its charter) Delaware 1-11394 95-3863205 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 402 West County Road D, St. Paul, Minnesota 55112 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (651) 636-7466 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: � Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) � Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) � Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) � Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 1 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  4. 4. Item 2.02. Results of Operations and Financial Condition On July 15, 2009, MEDTOX Scientific, Inc. announced results for the second quarter ended June 30, 2009, as described in the press release attached as Exhibit 99.1. 2 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  5. 5. Item 9.01. Financial Statements and Exhibits. (c) Exhibits. The following exhibit is filed as part of this report: Exhibit No. Description 99.1 MEDTOX Scientific, Inc. Press Release, dated July 15, 2009. 3 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  6. 6. 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: July 15, 2009 By: /s/ Richard J. Braun Name: Richard J. Braun Title: Chief Executive Officer 4 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  7. 7. INDEX TO EXHIBITS Exhibit No. Description 99.1 MEDTOX Scientific, Inc. Press Release, dated July 15, 2009. 5 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  8. 8. 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 SECOND QUARTER RESULTS ST. PAUL, July 15, 2009 – MEDTOX Scientific, Inc. (Nasdaq:MTOX) today announced results for the second quarter ended June 30, 2009. For the three-month period, revenues were $21.3 million, compared to $21.9 million for the prior-year period. The Company recorded operating income of $0.6 million for the three-month period, compared to $3.1 million for the prior-year period. The Company recorded net income of $0.3 million for the three-month period, compared to $1.9 million for the prior-year period. Earnings per diluted share were $0.04, compared to $0.22 in the second quarter of 2008. For the six-month period ended June 30, 2009, revenues were $42.0 million, compared to $42.6 million from the prior-year period. Operating income was $1.4 million, compared to $5.8 million for the prior-year period. The Company recorded net income of $0.7 million, compared to $3.5 million for the prior-year period. Earnings per diluted share were $0.08, compared to $0.39 for the prior-year period. For the three-month period, in our Laboratory Segment, revenues from drugs-of-abuse (DAU) testing decreased a net 10.6%, to $9.6 million from $10.8 million in the prior-year period. The decrease is a result of lower testing volumes from our workplace clients due to economic conditions. Revenues from existing workplace clients were $7.9 million, down 26.7% for the quarter compared to the prior-year period. The decrease in revenue was mitigated by very strong new business from DAU laboratory clients of $1.7 million, or a 16.1% increase from the prior-year period for a total of $9.6 million. New account activity in our DAU laboratory continues to confirm and validate our strategy of gaining market share and preserving our existing clients during this recessionary period. Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  9. 9. Our clinical laboratory expansion initiated in 2008 continues to gain momentum with quarterly revenues of $7.0 million, compared to $6.0 million for the prior-year period. This is a quarterly increase of 15.7%. Within the clinical laboratory, Clinical Trial Services (CTS) revenues increased to $1.6 million for the quarter, compared to $1.5 million for the prior-year period; and the rest of the clinical laboratory increased to $5.4 million from $4.6 million, or a 17.9% increase from the prior-year period. During the quarter CTS revenue growth was negatively impacted by cancellation of an ongoing trial and the continued, but temporary, curtailment of trial activity from a preferred client due to client regulatory issues. Since CTS is project based, variability from quarter to quarter may be expected. New account activity in the clinical laboratory for the quarter was solid and we maintain our long term positive view of clinical laboratory diversification efforts. In the Diagnostic Segment, revenues were down 6.9% for the quarter, an improvement over a drop of 13.2% in the first quarter compared to the prior year period. The reduction in revenues is primarily due to lower testing volumes from our workplace drugs-of-abuse clients due to lower employment levels. There will be a continuing negative impact on our drugs-of-abuse testing revenues caused by economic conditions affecting hiring in 2009. This should be mitigated by our expectation of strong on-going new business activity in this market segment in 2009. Gains in drugs-of-abuse testing market share in 2007, 2008 and anticipated in 2009, will have a positive impact on our performance when economic conditions improve and hiring rebounds. MEDTOX will hold a teleconference to discuss 2009 second quarter 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 (888) 349-9587 ten minutes before the scheduled start time today. International callers may access the call by dialing (719) 457-2714. 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 2 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  10. 10. 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 July 22 at (888) 203-1112, passcode # 4359575. International callers may access the replay at 719-457-0820 with the same passcode # 4359575. 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. Forward-looking statements, including those relating to temporary curtailment of trial activity, CTS revenue variability, new business activity, market share, economic conditions, and momentum in our clinical laboratory business, 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, client regulatory issues, project activity, and changes in the competitive environment. 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. 3 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  11. 11. MEDTOX SCIENTIFIC, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) Three Months Ended Six Months Ended June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008 REVENUES: Laboratory services: Drugs-of-abuse testing services $ 9,618 $ 10,757 $ 18,064 $ 20,591 Clinical & other laboratory services 6,969 6,024 14,681 11,709 Product sales 4,745 5,096 9,245 10,282 21,332 21,877 41,990 42,582 COST OF REVENUES: Cost of services 11,634 10,320 22,751 19,924 Cost of sales 2,032 2,058 3,930 3,987 13,666 12,378 26,681 23,911 GROSS PROFIT 7,666 9,499 15,309 18,671 OPERATING EXPENSES: Selling, general and administrative 6,521 5,878 12,742 11,748 Research and development 589 501 1,159 1,106 7,110 6,379 13,901 12,854 INCOME FROM OPERATIONS 556 3,120 1,408 5,817 OTHER EXPENSE: Interest expense (5) (23) (11) (53) Other expense (62) (198) (246) (365) (67) (221) (257) (418) INCOME BEFORE INCOME TAX EXPENSE 489 2,899 1,151 5,399 INCOME TAX EXPENSE (178) (971) (420) (1,884) NET INCOME $ 311 $ 1,928 $ 731 $ 3,515 BASIC EARNINGS PER COMMON SHARE $ 0.04 $ 0.23 $ 0.09 $ 0.42 DILUTED EARNINGS PER COMMON SHARE $ 0.04 $ 0.22 $ 0.08 $ 0.39 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: Basic 8,538,965 8,456,623 8,518,524 8,452,249 Diluted 8,816,645 8,956,351 8,759,333 8,962,728 Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009
  12. 12. MEDTOX SCIENTIFIC, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, December 31, 2009 2008 ASSETS Cash and cash equivalents $ 3,260 $ 4,069 Accounts receivable, net 15,647 14,082 Inventories 3,729 3,900 Other current assets 4,354 4,965 Total current assets 26,990 27,016 Building, equipment and improvements, net 28,889 29,204 Other assets 17,396 17,306 Total assets $ 73,275 $ 73,526 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities $ 8,716 $ 9,624 Long-term debt - 302 Other long-term obligations 3,509 3,135 Stockholders’ equity 61,050 60,465 Total liabilities and stockholders’ equity $ 73,275 $ 73,526 _______________________________________________ Created by 10KWizard www.10KWizard.com Source: MEDTOX SCIENTIFIC IN, 8-K, July 15, 2009

×