Segments

6 Months Ended

Jun. 30, 2012

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 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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Laboratory Services:
Revenues	$	23,441	$	21,272	$	45,578	$	40,784
Depreciation and amortization		1,342		1,271		2,656		2,567
Income from operations		443		1,028		1,425		1,130   0
Capital expenditures for segment assets		2,030		1,668		2,539		2,740
Product Sales:
Revenues	$	6,536	$	5,659	$	12,979	$	11,244
Depreciation and amortization		235		205		465		405
Income from operations		1,440		1,145		2,818		2,276
Capital expenditures for segment assets		438		311		528		725
Corporate (unallocated):
Other income (expense)	$	70	$	39	$	66	$	31
Company:
Revenues	$	29,977	$	26,931	$	58,557	$	52,028
Depreciation and amortization		1,577		1,476		3,121		2,972
Income from operations		1,883		2,173		4,243		3,406
Other income (expense)		70		39		66		31
Income before income tax expense		1,953		2,212		4,309		3,437
Capital expenditures for assets		2,468		1,979		3,067		3,465

(In thousands)	June 30, 2012		December 31, 2011
Assets:
Laboratory Services	$	68,312	$	65,739
Product Sales		10,873		8,339
Corporate (unallocated)		1,311		2,776
Company	$	80,496	$	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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
POC on-site testing products	$	6,261	$	5,248	$	11,859	$	10,107
Contract manufacturing services		42		214		683		750
Other diagnostic products		233		197		437		387
	$	6,536	$	5,659	$	12,979	$	11,244