ST. PAUL, Minn.--(BUSINESS WIRE)--July 17, 2006--MEDTOX Scientific, Inc. (Nasdaq: MTOX ) announced today results for the second quarter ended June 30, 2006.
For the six-month period, revenues increased to $33,749,000, compared to $31,534,000, or 7.0%, from the prior-year period. Operating income increased to $3,875,000 compared to $2,962,000, or 30.8%, from the prior-year period. The Company recorded net income of $2,036,000, or $0.23 per diluted share, compared to net income of $1,436,000, or $0.18 per diluted share, or a 41.8% increase in net income from the comparable period last year.
For the three-month period ended June 30, 2006, revenues increased to $17,399,000 compared to $16,845,000, or 3.3%, from the prior-year period. Operating income increased to $2,325,000 compared to $1,950,000, or 19.2%, from the comparable period last year. Net income increased to $1,282,000, or $0.15 per diluted share, compared to net income of $1,015,000, or $0.13 per diluted share, or a 26.3% increase in net income from the comparable period last year.
Overall, expenses for the quarter were in line with expectations. Total operating expenses were 31.1% of revenues for the quarter compared to 32.9% for the comparable period last year. Total operating expenses were 32.6% year-to-date compared to 33.2% for the comparable period last year. Gross margin for the quarter was 44.5% compared to 44.4% for the comparable period last year. Gross margin year-to-date was 44.1% compared to 42.6% for the comparable period last year.
Although there was a reduction in hiring activity by existing clients in the second quarter, the new account activity was strong which resulted in record revenues, operating income, pre-tax income and net income for the quarter. The Company has implemented a number of initiatives to compensate for lower activity from existing clients that it believes will have a positive benefit in the second half of 2006. These initiatives will be discussed during the Company's teleconference to be held this morning.
MEDTOX will hold a teleconference to discuss second quarter 2006 results today at 9:30 a.m. Central Time (10:30 a.m. Eastern). Dialing 877-421-3959 a few minutes prior to the scheduled start time on July 17 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 at www.medtox.com. An audio replay of the conference call will be available through July 24 at 800-642-1687 conference ID # 2234420. International callers may access the replay at 706-645-9291 with the same conference ID # 2234420.
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.
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, 2006 2005 2006 2005 ---------- ---------- ---------- ----------
NET INCOME $1,282 $1,015 $2,036 $1,436 ========== ========== ========== ==========
BASIC EARNINGS PER COMMON SHARE $0.16 $0.13 $0.25 $0.19 ========== ========== ========== ==========
DILUTED EARNINGS PER COMMON SHARE $0.15 $0.13 $0.23 $0.18 ========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: Basic 8,183,455 7,546,972 8,169,106 7,543,746 Diluted 8,839,176 7,929,546 8,786,645 8,070,235
MEDTOX SCIENTIFIC, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
June 30, December 31, 2006 2005 ------------ ------------ ASSETS Cash and cash equivalents $847 $1,312 Accounts receivable 11,691 9,889 Inventories 3,281 3,301 Other current assets 2,378 2,627 ------------ ------------ Total current assets 18,197 17,129
Building, equipment and improvements, net 18,704 17,927
Other assets 22,861 24,334 ------------ ------------ Total assets $59,762 $59,390 ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $10,445 $8,752
Long-term obligations 3,426 5,793
Stockholders' equity 45,891 44,845 ------------ ------------ Total liabilities and stockholders' equity $59,762 $59,390 ============ ============ <<
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