Segments

3 Months Ended

Mar. 31, 2012

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, 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.

(In thousands)	Three Months Ended
	March 31, 2012		March 31,  2011
Laboratory Services:
Revenues	$	22,137	$	19,512
Depreciation and amortization		1,314		1,296
Income from operations		982		102
Capital expenditures for segment assets		509		793
Product Sales:
Revenues	$	6,443	$	5,585
Depreciation and amortization		230		200
Income from operations		1,378		1,131
Capital expenditures for segment assets		90		334
Corporate (unallocated):
Other income (expense)	$	(4)	$	(8)
Company:
Revenues	$	28,580	$	25,097
Depreciation and amortization		1,544		1,496
Income from operations		2,360		1,233
Other income (expense)		(4)		(8)
Income before income tax expense		2,356		1,225
Capital expenditures for assets		599		1,127

(In thousands)	March 31, 2012		December 31, 2011
Assets:
Laboratory Services	$	67,480	$	65,739
Product Sales		9,542		8,339
Corporate (unallocated)		1,975		2,776
Company	$	78,997	$	76,854

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
	March 31, 2012		March 31, 2011
POC on site testing products	$	5,598	$	4,859
Contract manufacturing services		641		536
Other diagnostic products		204		190
	$	6,443	$	5,585