MEDTOX Scientific fourth quarter total revenues increase 25.7% to $25.0 million

Feb 10 2011

MEDTOX Scientific, Inc. (Nasdaq:MTOX) today announced fourth quarter and year-end results for the periods ended December 31, 2010. Highlights from the quarter and year-end compared to the prior-year periods include:

• Total revenues for the quarter increased 25.7% to $25.0 million, and for the year increased 15.4% to $97.1 million
   
• Gross profit for the quarter increased 50.5% to $10.4 million, and for the year increased 28.3% to $39.6 million
   
• Operating income for the quarter was $1.2 million compared to a loss of $0.5 million, an increase of  344.6%, and for the year increased 138.2% to $4.7 million
   
• Net income for the quarter was $0.8 million compared to a loss of $0.2 million, an increase of 510.5%, and for the year increased 132.3% to $3.0 million
   
• Earnings per diluted share for the quarter were $0.09 compared to a loss of ($0.02) in the prior-year period, and for the year were $0.34 compared to $0.15 for the prior year-end

In our Laboratory segment, revenues from drugs-of-abuse (DAU) testing in the quarter increased 20.8%, to $10.3 million, from $8.5 million in the prior-year period.  For the twelve-month period DAU testing revenues increased 9.9% to $39.6 million, from $36.0 million in the prior-year period.  DAU testing revenues for the year ended 2009 were down from the prior-year period by 9.9% due to economic conditions in labor markets.  The increase in 2010 is a result of more stable testing volumes from our existing workplace clients and an increase in revenues from new clients.

Our clinical laboratory diversification efforts initiated in 2008 continue to have momentum with clinical laboratory revenues in the quarter increasing 27.1% to $7.5 million, compared to $5.9 million for the prior-year period; and for the twelve-month period increasing 30.8% to $29.9 million, compared to $22.9 million from the prior-year period. Clinical Trial Services revenues for the quarter increased 123.0% to $2.3 million compared to $1.0 million for the prior-year period, and for the twelve-month period increasing 8.3% to $7.5 million from $6.9 million from the prior year-end period.

In the Diagnostic segment, revenues were up 10.8% for the quarter, and 9.8% for the twelve-month period.  The increase is attributable to improved sales in the workplace drugs-of-abuse market with our Profile®-II A and Profile®-III A products, and increased sales of Profile®-V sold into the hospital market with our MEDTOXScan® Reader.

Revenue increases in Drug Testing, Clinical Laboratory and Diagnostic Product Sales validate our strategy of adding to our sales group, expanding clinical laboratory capabilities, and continued pursuit of market share gains in the drugs-of-abuse testing market.          

Gross margins improved in both the Laboratory Services and Diagnostic Products segments with overall gross margin increasing 690 basis points to 41.6%, compared to 34.7% in the fourth quarter of 2009; and for the twelve-month period increasing 410 basis points to 40.8%, compared to 36.7% from the prior-year.

Cash on hand at year-end was $1.3 million and the Company has no long term debt. In the fourth quarter the Company paid a one-time dividend of $11.1 million or $1.25 per share.                                                   

SOURCE MEDTOX Scientific, Inc.,