Exhibit 99.1 November 4, 2003 FOR: FOR IMMEDIATE RELEASE MEDTOX SCIENTIFIC ANNOUNCES THIRD QUARTER RESULTS |
MEDTOX Scientific, Inc. The quarter also benefited from apparent improvements in the economy. Sample volume from the Company’s existing workplace drug testing clients, though not yet at the previous year’s level, showed an upturn from recent quarters. Additionally, new drug screening sales in the Laboratory Services segment continue to be strong. The Company continues to believe it will benefit as economic recovery impacts job creation and growth. “Although the quarter was relatively even with the third quarter last year, considerable progress has been made when compared to the second quarter of this year,” said Dick Braun, CEO of MEDTOX. “Historically, the second and third quarter results are similar and the improvement shown is significant, as demonstrated by income from operations increasing to $902,000 in the quarter as compared to $186,000 in the second quarter.” Margin improvement and lower operating expenses should also have a positive impact on the fourth quarter, which is historically the most challenging. With the prospects of a strengthening economy likely to lead to job growth in the near term, coupled with the prospect of additional operating efficiencies, the Company is optimistic with regard to 2004 results. MEDTOX will hold a teleconference to discuss third 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 November 4 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 atwww.medtox.com. An audio replay of the conference call will be available through November 11 at 800-642-1687 conference ID # 3411839. International callers may access the replay at 706-645-9291 with the same conference ID #. |
MEDTOX Scientific, Inc. 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 tohttp://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=tox&script=1900 and follow the directions on the page. For more information seewww.medtox.com. 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 on page three of the Company’s 2002 annual report on Form 10-K and incorporated herein by reference. |
MEDTOX Scientific, Inc. MEDTOX SCIENTIFIC, INC. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
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2003 | 2002 | 2003 | 2002 | |||||||||||
REVENUES: | ||||||||||||||
Laboratory services | $ | 10,391 | $ | 10,562 | $ | 30,010 | $ | 30,439 | ||||||
Product sales | 3,177 | 3,070 | 9,186 | 9,462 | ||||||||||
13,568 | 13,632 | 39,196 | 39,901 | |||||||||||
COST OF REVENUES: | ||||||||||||||
Cost of services | 6,804 | 7,104 | 20,006 | 20,184 | ||||||||||
Cost of sales | 1,304 | 1,178 | 3,925 | 3,539 | ||||||||||
8,108 | 8,282 | 23,931 | 23,723 | |||||||||||
GROSS PROFIT | 5,460 | 5,350 | 15,265 | 16,178 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 4,157 | 4,137 | 12,878 | 12,152 | ||||||||||
Research and development | 401 | 327 | 1,233 | 905 | ||||||||||
4,558 | 4,464 | 14,111 | 13,057 | |||||||||||
INCOME FROM OPERATIONS | 902 | 886 | 1,154 | 3,121 | ||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense, net | (281 | ) | (332 | ) | (876 | ) | (1,025 | ) | ||||||
Other expense, net | (129 | ) | (17 | ) | (363 | ) | (66 | ) | ||||||
(410 | ) | (349 | ) | (1,239 | ) | (1,091 | ) | |||||||
INCOME (LOSS) BEFORE INCOME TAX (EXPENSE) BENEFIT | 492 | 537 | (85 | ) | 2,030 | |||||||||
INCOME TAX (EXPENSE) BENEFIT | (109 | ) | 10,783 | 15 | 10,783 | |||||||||
NET INCOME (LOSS) | $ | 383 | $ | 11,320 | $ | (70 | ) | $ | 12,813 | |||||
BASIC EARNINGS (LOSS) PER COMMON SHARE | $ | 0.08 | $ | 2.36 | $ | (0.01 | ) | $ | 2.67 | |||||
DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | 0.08 | $ | 2.27 | $ | (0.01 | ) | $ | 2.55 | |||||
WEIGHTED AVERAGE NUMBER OF SHARES | ||||||||||||||
OUTSTANDING: | ||||||||||||||
Basic | 4,949,336 | 4,804,106 | 4,937,937 | 4,793,793 | ||||||||||
Diluted | 5,057,238 | 4,988,958 | 4,937,937 | 5,029,818 |
MEDTOX Scientific, Inc. MEDTOX SCIENTIFIC, INC. |
September 30, 2003 | December 31, 2002 | |||||||
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ASSETS | ||||||||
Cash and cash equivalents | $ | 568 | $ | 439 | ||||
Accounts receivable | 9,095 | 9,398 | ||||||
Inventories | 3,535 | 4,395 | ||||||
Other current assets | 1,920 | 2,018 | ||||||
Total current assets | 15,118 | 16,250 | ||||||
Building, equipment and improvements, net | 15,270 | 14,769 | ||||||
Other assets | 26,448 | 27,036 | ||||||
Total assets | $ | 56,836 | $ | 58,055 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | $ | 12,642 | $ | 14,164 | ||||
Long-term obligations | 8,941 | 9,007 | ||||||
Stockholders' equity | 35,253 | 34,884 | ||||||
Total liabilities and stockholders' equity | $ | 56,836 | $ | 58,055 | ||||