MEDTOX SCIENTIFIC INC

CIK:0000739944|SEC Filings

Earnings Per Share

6 Months Ended

Jun. 30, 2012

4. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

(In thousands, except share and per share data)	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011

Net income (A)	$	1,240	$	1,404	$	2,736	$	2,182
Weighted average number of basic common shares outstanding (B)		8,901,618		8,847,870		8,888,702		8,849,042
Dilutive effect of stock options computed based on the treasury stock method		224,709		204,844		210,996		199,143
Weighted average number of diluted common shares outstanding (C)		9,126,327		9,052,714		9,099,698		9,048,185
Basic earnings per common share (A/B)	$	0.14	$	0.16	$	0.31	$	0.25
Diluted earnings per common share (A/C)	$	0.14	$	0.16	$	0.30	$	0.24

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net income	$ 2,736	$ 2,182
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,121	2,972
Provision for losses on accounts receivable	1,788	1,743
Loss on sale of equipment	(2)	4
Deferred and stock-based compensation	924	752
Deferred income taxes	1,465	1,169
Changes in operating assets and liabilities:
Accounts receivable	(5,026)	(2,704)
Inventories	(206)	(531)
Prepaid expenses	(125)	(16)
Other assets	(85)	(217)
Accounts payable and accrued expenses	1,630	(197)
Other	(5)	0
Net cash provided by operating activities	6,215	5,157
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchases of building, equipment and improvements	(3,124)	(2,575)
Net cash used in investing activities	(3,124)	(2,575)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Proceeds from line of credit	0	18,757
Payments on line of credit	0	(19,585)
Purchase of common stock for incentive plans	0	(1,705)
Net proceeds from the exercise of stock options	39	21
Payment of taxes from traded shares	(1,580)	(104)
Net cash used in financing activities	(1,541)	(2,616)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,550	(34)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,269	1,285
CASH AND CASH EQUIVALENTS AT END OF PERIOD	6,819	1,251
Cash paid for:
Interest	128	46
Income taxes	631	227
Supplemental noncash activities:
Asset additions and related obligations in payables	587	1,398
Distribution of common stock from incentive plan	3,309	0
Treasury stock transferred to fund contribution of common stock for incentive plans	$ 2,084	$ 0

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 6,819	$ 5,269
Accounts receivable:
Trade, less allowance for doubtful accounts of $1,503 in 2012 and $1,945 in 2011	19,733	16,982
Other	714	227
Total accounts receivable	20,447	17,209
Inventories	4,774	4,568
Prepaid expenses	1,829	1,704
Deferred income taxes	1,311	2,776
Total current assets	35,180	31,526
BUILDING, EQUIPMENT AND IMPROVEMENTS, net	28,088	28,105
GOODWILL	15,967	15,967
OTHER INTANGIBLE ASSETS, net	275	313
OTHER ASSETS	986	943
TOTAL ASSETS	80,496	76,854
CURRENT LIABILITIES:
Accounts payable	4,880	4,504
Accrued expenses	6,897	8,221
Total current liabilities	11,777	12,725
LONG-TERM LIABILITIES	1,768	1,885
DEFERRED INCOME TAXES, net	4,616	4,616
STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 par value; authorized shares, 50,000; none issued and outstanding	0	0
Common stock, $0.15 par value; authorized shares, 28,000,000; issued shares, 9,097,850 in 2012 and 9,044,525 in 2011	1,365	1,357
Additional paid-in capital	79,541	78,792
Accumulated deficit	(12,718)	(15,454)
Common stock held in trust, at cost, 316,595 shares in 2012 and 512,372 shares in 2011	(4,841)	(6,067)
Treasury stock, at cost, 77,320 shares in 2012 and 103,460 shares in 2011	(1,012)	(1,000)
Total stockholders' equity	62,335	57,628
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 80,496	$ 76,854