Segments

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Segments

2.  SEGMENTS

The Company has two reportable segments:  Laboratory Services and Product Sales.  The Laboratory Services segment consists of MEDTOX Laboratories, Inc. and New Brighton Business Center, LLC (NBBC).  Services provided include drugs-of-abuse testing services; clinical & other laboratory services, which include clinical toxicology, clinical testing for occupational health clinics, clinical testing for physician offices, pediatric lead testing, heavy metals analyses, courier delivery, and medical surveillance; and clinical trial services which include central laboratory services, assay development, bio-analytical, bio-equivalence and pharmacokinetic testing.  The Product Sales segment, which includes POCT (point-of-collection testing) disposable diagnostic devices, consists of MEDTOX Diagnostics, Inc.  Products manufactured include easy to use, inexpensive, on-site drug tests such as PROFILE®-II, PROFILE®-II A, PROFILE®-III A, PROFILE-II ER®, PROFILE®-III ER, PROFILE®-IV, PROFILE®-V, MEDTOXScan®, VERDICT®-II and SURE-SCREEN®, and EZ-SCREEN® Cup, in addition to a variety of other diagnostic tests for the detection of alcohol.  MEDTOX Diagnostics also provides contract manufacturing services in its Food and Drug Administration (FDA) registered/ISO 13845 certified facility.

The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately as each business requires different products, services and marketing strategies.

In evaluating financial performance, management focuses on income from operations as a segment’s measure of profit or loss.

(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Laboratory Services:
Revenues	$	22,041	$	20,676	$	64,454	$	56,970
Depreciation and amortization		1,285		1,279		3,852		3,720
Income from operations		753		910		1,883		844
Capital expenditures for segment assets		1,216		1,957		3,956		4,225
Product Sales:
Revenues	$	5,537	$	5,123	$	16,781	$	15,175
Depreciation and amortization		221		197		626		596
Income from operations		1,316		932		3,592		2,653
Capital expenditures for segment assets		179		109		904		254
Corporate (unallocated):
Other income (expense)	$	9	$	(34)	$	40	$	26
Company:
Revenues	$	27,578	$	25,799	$	81,235	$	72,145
Depreciation and amortization		1,506		1,476		4,478		4,316
Income from operations		2,069		1,842		5,475		3,497
Other income (expense)		9		(34)		40		26
Income before income tax expense		2,078		1,808		5,515		3,523
Capital expenditures for assets		1,395		2,066		4,860		4,479

(In thousands)	September 30, 2011		December 31, 2010
Assets:
Laboratory Services	$	64,397	$	64,193
Product Sales		8,599		7,499
Corporate (unallocated)		1,889		3,765
Company	$	74,885	$	75,457

The following is a summary of revenues from external customers for each group of products and services provided within the Product Sales segment:

(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
POC on-site testing products	$	5,181	$	4,688	$	15,288	$	13,479
Contract manufacturing services		151		265		901		1,213
Other diagnostic products		205		170		592		483
	$	5,537	$	5,123	$	16,781	$	15,175