Biotech Values

[DewDiligence]

MEDTOX Scientific Announces Results for Fourth Quarter and Year-End

[Medtox is an interesting little company that recently moved from the Amex exchange (a “no-man’s land” for biotechs) to Nasdaq. (The old ticker symbol was TOX.) Please see the actual PR for financial tables.]

http://biz.yahoo.com/bw/060301/20060301005151.html?.v=1

>>
Wednesday March 1, 7:00 am ET

ST. PAUL, Minn.--(BUSINESS WIRE)--March 1, 2006--MEDTOX Scientific, Inc. (Nasdaq: MTOX ) today announced fourth quarter and year-end results for the periods ending December 31, 2005. For the year ended December 31, 2005:

• Revenues increased $6.3 million to $63.0 million, or 11.1%
• Consolidated gross margin increased to 43.0% from 42.0%
• Gross profit increased $3.3 million to $27.1 million, or 13.8%
• Operating income increased to $5.5 million from the prior-year $4.3 million, or 28.4%
• Income before income taxes increased to $4.2 million from the prior-year $2.9 million, or 43.2%
• Net income increased to $3.3 million from the prior-year $1.8 million, or 82.2%

For the three-month period, revenues were $15,000,000, compared to $13,616,000 from the prior-year period. The Company recorded operating income of $874,000 for the three-month period, compared to $416,000 for the prior-year period. The Company recorded net income of $1,057,000 for the three-month period compared to $110,000 for the prior-year period. For the twelve month period, revenues were $63,047,000 compared to $56,736,000 for the prior-year period. The Company recorded operating income of $5,524,000 for the twelve-month period compared to $4,303,000 for the prior-year period. The Company recorded net income of $3,318,000 for 2005 compared to $1,821,000 for the prior-year period.

The Company recorded a $499,000 net tax benefit as part of fourth quarter earnings. The income tax benefit was primarily the result of the reduction of the valuation allowance on deferred tax assets [i.e., the company is now sufficiently profitable that the tax-loss carryforwards can be recognized as assets on the balance sheet to a greater extent than before].

Margins continue to improve. Total operating expenses as a percentage of sales decreased slightly to 34.3% for the year, compared to 34.4% for the prior year. The Company's balance sheet also continues to improve with a reduction in the revolving line of credit balance and the continued repayment of long-term debt. Also, the Company made capital expenditures of $4.1 million during the year, substantially financed from internally generated cash.

MEDTOX will hold a teleconference to discuss fourth quarter 2005 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. Dialing 800-387-5648 a few minutes prior to the scheduled start time on March 1 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 under "webcasts" at www.medtox.com. An audio replay of the conference call will be available through March 8 at 800-642-1687 conference ID # 5335103. International callers may access the replay at 706-645-9291 with the same conference ID # 5335103.

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.
<<