Exhibit 99.1 April 23, 2003 FOR: FOR IMMEDIATE RELEASE MEDTOX SCIENTIFIC ANNOUNCES |
The Company indicated in its year end conference call that it was taking measures to reduce expenses, including reducing staffing by 5%. Initiatives have been taken that will reduce staffing by 6% or 30 FTEs. The impact of these measures was negligible in the first quarter, but it is estimated they will reduce expenses by $750,000 from existing levels over the balance of the year, without negatively impacting operations or service levels. “While current cyclical economic conditions continue to offer challenges, they also create opportunities. We are committed to add market share in laboratory DAU, grow our Specialty Laboratory Services, and continue to diversify in our Diagnostic Segment with new products and services that will mitigate the short term pressure of the government sales of VERDICT®-II,” said Braun. MEDTOX will hold a teleconference to discuss first quarter 2003 results today at 9:30 a.m. Central Time (10:30 a.m. Eastern). Dialing 800-387-5648 a few minutes prior to the scheduled start time on April 23 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 April 30 at 800-642-1687 reservation code # 9828068. International callers may access the replay at 706-645-9291 with the same reservation code. MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of high quality specialized laboratory and on-site/point-of-collection (POC) devices. The company also supports customers with complete logistics, data and program management services. 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. 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. To be automatically alerted by e-mail about company information, please go to http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=tox&script=1900 and follow the directions on the page. For more information see www.medtox.com. 2 |
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 2002 Annual Report on Form 10-K and incorporated herein by reference. 3 |
MEDTOX SCIENTIFIC, INC. |
Three Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|
March 31, 2003 | March 31, 2002 | |||||||
REVENUES: | ||||||||
Laboratory service revenues | $ | 9,534 | $ | 9,337 | ||||
Product sales | 2,937 | 3,014 | ||||||
12,471 | 12,351 | |||||||
COST OF REVENUES: | ||||||||
Cost of services | 6,467 | 6,356 | ||||||
Cost of sales | 1,264 | 1,089 | ||||||
7,731 | 7,445 | |||||||
GROSS PROFIT | 4,740 | 4,906 | ||||||
OPERATING EXPENSES: | ||||||||
Selling, general and administrative | 4,261 | 3,778 | ||||||
Research and development | 413 | 274 | ||||||
4,674 | 4,052 | |||||||
INCOME (LOSS) FROM OPERATIONS | 66 | 854 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Interest expense, net | (299 | ) | (353 | ) | ||||
Other expense, net | (94 | ) | (16 | ) | ||||
(393 | ) | (369 | ) | |||||
INCOME (LOSS) BEFORE INCOME TAX BENEFIT | (327 | ) | 485 | |||||
INCOME TAX BENEFIT | 124 | -- | ||||||
NET INCOME (LOSS) | $ | (203 | ) | $ | 485 | |||
BASIC EARNINGS PER COMMON SHARE (1) | $ | (0.04 | ) | $ | 0.10 | |||
DILUTED EARNINGS PER COMMON SHARE (1) | $ | (0.04 | ) | $ | 0.10 | |||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||||||||
Basic (1) | 4,912,736 | 4,784,006 | ||||||
Diluted (1) | 4,912,736 | 5,040,518 |
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MEDTOX SCIENTIFIC, INC. |
March 31, 2003 | December 31, 2002 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
Cash and cash equivalents | $ | 815 | $ | 439 | ||||
Accounts receivable | 9,719 | 9,398 | ||||||
Inventories | 4,125 | 4,395 | ||||||
Other current assets | 1,931 | 2,018 | ||||||
Total current assets | 16,590 | 16,250 | ||||||
Building, equipment and improvements, net | 14,704 | 14,769 | ||||||
Other assets | 26,691 | 27,036 | ||||||
Total assets | $ | 57,985 | $ | 58,055 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | 13,945 | 14,164 | ||||||
Long-term obligations | 9,210 | 9,007 | ||||||
Stockholders' equity | 34,830 | 34,884 | ||||||
Total liabilities and stockholders' equity | $ | 57,985 | $ | 58,055 | ||||
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