Exhibit 99.1 March 2, 2004 FOR: FOR IMMEDIATE RELEASE MEDTOX SCIENTIFIC ANNOUNCES RESULTS |
MEDTOX Scientific, Inc. “Additionally, we continued to see positive net results from our LEAN projects, staff reductions and expense control measures,” said Braun. “In spite of $249,000 in LEAN consulting and severance expense in the quarter, gross margin for the quarter improved to 38.2% compared to 36.0% for the same period in 2002, and selling, general and administrative expenses improved to 31.3% of revenues, or $3,844,000, compared to 34.4% of revenues, or $4,165,000 for the prior-year, a reduction in spending of 7.7%. R&D expenses of $677,000 in the quarter continued to run higher than the previous year and included recruiting and hiring costs associated with the addition of Dr. Robert C. Bohannon as Vice President of Technology, Research and Development in our Diagnostic Product Division, as well as severance and other costs associated with reorganization of the department. R&D expenses are expected to run between $450,000 and $500,000 per quarter for 2004.” The Company’s steps to reduce costs and improve operating efficiencies positively impacted the second half of 2003. Although revenues remained level at $25.8 million compared to $25.6 million for the six-month periods ended December 31, 2003 and June 30, 2003, respectively, the Company experienced an improved gross margin rate of 1% and an increase in income from operations to $1,069,000 in the last six months of the year from $252,000 in the first half of the year, or 324%. Operating improvements in 2003 have also positively impacted the Company’s balance sheet at December 31, 2003 compared to December 31, 2002. With a 1% differential in year over year annual sales, accounts receivable have been reduced from $9,398,000 to $8,367,000, or 11%; inventories have also been reduced from $4,395,000 to $3,564,000, or 19%; and long-term obligations have been reduced from $9,007,000 to $7,639,000, a reduction of $1,368,000 or 15%. Cash flow generated by operating activities was $3,157,000 in 2003. Margin improvement and a lower operating expense rate should have a positive impact in 2004. With the prospects of the strengthening economy creating an opportunity for job growth, coupled with continuing new sales growth, the Company is optimistic with respect to 2004 results. (more) |
MEDTOX Scientific, Inc. MEDTOX will hold a teleconference to discuss fourth quarter and year-end 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 March 2 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 March 9 at 800-642-1687 Conference ID # 5489284. International callers may access the replay at 706-645-9291 with the same Conference ID #. 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. 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. (more) |
MEDTOX Scientific, Inc. MEDTOX SCIENTIFIC, INC. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | 2003 | 2002 | |||||||||||
REVENUES: | ||||||||||||||
Laboratory services | $ | 9,414 | $ | 9,234 | $ | 39,424 | $ | 39,673 | ||||||
Product sales | 2,863 | 2,889 | 12,049 | 12,351 | ||||||||||
12,277 | 12,123 | 51,473 | 52,024 | |||||||||||
COST OF REVENUES: | ||||||||||||||
Cost of services | 6,351 | 6,608 | 26,357 | 26,792 | ||||||||||
Cost of sales | 1,238 | 1,145 | 5,163 | 4,684 | ||||||||||
7,589 | 7,753 | 31,520 | 31,476 | |||||||||||
GROSS PROFIT | 4,688 | 4,370 | 19,953 | 20,548 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 3,844 | 4,165 | 16,722 | 16,317 | ||||||||||
Research and development | 677 | 312 | 1,910 | 1,217 | ||||||||||
4,521 | 4,477 | 18,632 | 17,534 | |||||||||||
INCOME (LOSS) FROM OPERATIONS | 167 | (107 | ) | 1,321 | 3,014 | |||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense, net | (271 | ) | (319 | ) | (1,147 | ) | (1,344 | ) | ||||||
Other expense, net | (119 | ) | (17 | ) | (482 | ) | (83 | ) | ||||||
(390 | ) | (336 | ) | (1,629 | ) | (1,427 | ) | |||||||
INCOME (LOSS) BEFORE INCOME TAX | ||||||||||||||
BENEFIT (EXPENSE) | (223 | ) | (443 | ) | (308 | ) | 1,587 | |||||||
INCOME TAX BENEFIT (EXPENSE) | (15 | ) | (633 | ) | -- | 10,150 | ||||||||
NET INCOME (LOSS) | $ | (238 | ) | $ | (1,076 | ) | $ | (308 | ) | $ | 11,737 | |||
BASIC EARNINGS (LOSS) PER | ||||||||||||||
COMMON SHARE | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.06 | ) | $ | 2.45 | |||
DILUTED EARNINGS (LOSS) PER | ||||||||||||||
COMMON SHARE | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.06 | ) | $ | 2.34 | |||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||||||||||||||
Basic | 4,979,655 | 4,811,340 | 4,942,617 | 4,798,098 | ||||||||||
Diluted | 4,979,655 | 4,811,340 | 4,942,617 | 5,011,330 |
(more) |
MEDTOX Scientific, Inc. MEDTOX SCIENTIFIC, INC. |
December 31, 2003 | December 31, 2002 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
Cash and cash equivalents | $ | 711 | $ | 439 | ||||
Accounts receivable | 8,367 | 9,398 | ||||||
Inventories | 3,564 | 4,395 | ||||||
Other current assets | 2,664 | 2,018 | ||||||
Total current assets | 15,306 | 16,250 | ||||||
Building, equipment and improvements, net | 15,092 | 14,769 | ||||||
Other assets | 26,120 | 27,036 | ||||||
Total assets | $ | 56,518 | $ | 58,055 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | $ | 13,809 | $ | 14,164 | ||||
Long-term obligations | 7,639 | 9,007 | ||||||
Stockholders' equity | 35,070 | 34,884 | ||||||
Total liabilities and stockholders' equity | $ | 56,518 | $ | 58,055 | ||||