Exhibit 99.1 March 1, 2005 MEDTOX Scientific, Inc. FOR IMMEDIATE RELEASE MEDTOX SCIENTIFIC ANNOUNCES RECORD RESULTS |
o | Revenues increased $5.3 million to $56.7 million, or 10.2% |
o | Consolidated gross margin increased to 42.0% from 38.8% |
o | Gross profit increased $3.9 million to $23.8 million, or 19.5% |
o | Operating income increased to $4.3 million from the prior-year $1.3 million, or 225.7% |
o | Income before income taxes increased to $2.9 million from a prior-year loss of ($308,000) |
o | Net cash provided by operating activities increased $3.1 million to $6.3 million |
For the three-month period, revenues were $13,616,000, compared to $12,277,000 from the prior-year period. The Company recorded operating income of $416,000 for the three month period, compared to $167,000 for the prior-year period. The Company recorded net income of $110,000 for the three-month period compared to a net loss of ($238,000) for the prior-year period. For the twelve month period, revenues were $56,736,000, compared to $51,473,000 for the prior-year period. The Company recorded operating income of $4,303,000 for the twelve-month period compared to $1,321,000 for the prior-year period. The Company recorded net income of $1,821,000 for 2004 compared to a net loss of ($308,000) for the prior-year period. |
MEDTOX Scientific, Inc. On August 20, 2004, a 3-for-2 stock split was effected increasing outstanding shares from approximately 5.0 million to 7.5 million. Net income for the year reflects a 38% effective tax rate. At December 31, 2004, the Company had federal net operating loss carryforwards of $26.1 million to offset future taxable income. Margins continue to improve. The $5,263,000 increase in revenue produced a $3,881,000 increase in gross profit in 2004 over 2003. Total cost of sales decreased to 58.0% of revenues for the year, compared to 61.2% for the prior-year. Total operating expenses as a percentage of revenues decreased to 34.4% for the year, compared to 36.2% for the prior year-end. Net cash provided by operating activities increased $3.1 million to $6.3 million in 2004 and was used to repay $2,821,000 of long term debt and to fund the Company’s capital expenditures. MEDTOX will hold a teleconference to discuss fourth quarter and year-end 2004 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” atwww.medtox.com. An audio replay of the conference call will be available through March 8 at 800-642-1687 conference ID # 3991673. International callers may access the replay at 706-645-9291 with the same conference ID # 3991673. |
MEDTOX Scientific, Inc. MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of high quality specialized laboratory services 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 in the Company’s 2003 Annual Report on Form 10-K and incorporated herein by reference. |
MEDTOX Scientific, Inc. MEDTOX SCIENTIFIC, INC. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
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2004 | 2003 | 2004 | 2003 | |||||||||||
REVENUES: | ||||||||||||||
Laboratory services | $ | 10,525 | $ | 9,414 | $ | 43,219 | $ | 39,424 | ||||||
Product sales | 3,091 | 2,863 | 13,517 | 12,049 | ||||||||||
13,616 | 12,277 | 56,736 | 51,473 | |||||||||||
COST OF REVENUES: | ||||||||||||||
Cost of services | 6,973 | 6,351 | 27,611 | 26,357 | ||||||||||
Cost of sales | 1,195 | 1,238 | 5,291 | 5,163 | ||||||||||
8,168 | 7,589 | 32,902 | 31,520 | |||||||||||
GROSS PROFIT | 5,448 | 4,688 | 23,834 | 19,953 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 4,516 | 3,844 | 17,826 | 16,722 | ||||||||||
Research and development | 516 | 677 | 1,705 | 1,910 | ||||||||||
5,032 | 4,521 | 19,531 | 18,632 | |||||||||||
INCOME FROM OPERATIONS | 416 | 167 | 4,303 | 1,321 | ||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | (207 | ) | (271 | ) | (997 | ) | (1,147 | ) | ||||||
Other expense, net | (32 | ) | (119 | ) | (369 | ) | (482 | ) | ||||||
(239 | ) | (390 | ) | (1,366 | ) | (1,629 | ) | |||||||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE | 177 | (223 | ) | 2,937 | (308 | ) | ||||||||
INCOME TAX EXPENSE | (67 | ) | (15 | ) | (1,116 | ) | -- | |||||||
NET INCOME (LOSS) | $ | 110 | $ | (238 | ) | $ | 1,821 | $ | (308 | ) | ||||
BASIC EARNINGS (LOSS) PER COMMON SHARE (1) | $ | 0.01 | $ | (0.03 | ) | $ | 0.24 | $ | (0.04 | ) | ||||
DILUTED EARNINGS (LOSS) PER | ||||||||||||||
COMMON SHARE (1) | $ | 0.01 | $ | (0.03 | ) | $ | 0.23 | $ | (0.04 | ) | ||||
WEIGHTED AVERAGE NUMBER OF | ||||||||||||||
SHARES OUTSTANDING: | ||||||||||||||
Basic (1) | 7,533,190 | 7,469,483 | 7,471,847 | 7,413,926 | ||||||||||
Diluted (1) | 8,130,956 | 7,469,483 | 7,853,916 | 7,413,926 | ||||||||||
(1) Share and per share amounts have been restated for the three-for-two stock split paid on August 20, 2004. |
MEDTOX Scientific, Inc. MEDTOX SCIENTIFIC, INC. |
December 31, 2004 | December 31, 2003 | |||||||
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ASSETS | ||||||||
Cash and cash equivalents | $ | 263 | $ | 711 | ||||
Accounts receivable | 8,287 | 8,367 | ||||||
Inventories | 3,624 | 3,564 | ||||||
Other current assets | 2,824 | 2,664 | ||||||
Total current assets | 14,998 | 15,306 | ||||||
Building, equipment and improvements, net | 16,317 | 15,092 | ||||||
Other assets | 24,645 | 26,120 | ||||||
Total assets | $ | 55,960 | $ | 56,518 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | $ | 12,081 | $ | 13,809 | ||||
Long-term obligations | 6,090 | 7,639 | ||||||
Stockholders' equity | 37,789 | 35,070 | ||||||
Total liabilities and stockholders' equity | $ | 55,960 | $ | 56,518 | ||||