SEGMENTS

12 Months Ended

Dec. 31, 2011

SEGMENTS [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 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, prescription management testing, 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®-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.  The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1).

The following is a summary of certain segment information for the years ended December 31:

(In thousands)
		2011		2010		2009
Laboratory Services:
Revenues	$	85,862	$	77,047	$	65,851
Depreciation and amortization		5,315		5,020		4,744
Income (loss) from operations		2,145		1,187		(1,037)
Segment assets		65,739		64,193		60,630
Capital expenditures for segment assets		5,046		4,775		4,561
Product Sales:
Revenues	$	22,287	$	20,054	$	18,257
Depreciation and amortization		857		795		693
Income from operations		5,027		3,501		3,005
Segment assets		8,339		7,499		11,884
Capital expenditures for segment assets		1,031		363		369

Corporate (unallocated):
Other income (expense)	$	(161)	$	157	$	79
Net deferred tax assets		2,776		3,765		3,603

Company:
Revenues	$	108,149	$	97,101	$	84,108
Depreciation and amortization		6,172		5,815		5,437
Income from operations		7,172		4,688		1,968
Other income (expense)		(161)		157		79
Income before income taxes		7,011		4,845		2,047
Total assets		76,854		75,457		76,117
Capital expenditures for assets		6,077		5,138		4,930

The following is a summary of revenues from external customers for each group of products and services provided within the Product Sales segment for the years ended December 31:

(In thousands)
		2011		2010		2009
POC on-site testing products	$	20,292	$	17,796	$	16,431
Contract manufacturing services		1,210		1,567		1,391
Other diagnostic products		785		691		435
	$	22,287	$	20,054	$	18,257