MEDTOX Scientific Inc. Q3 2009 Earnings Call Transcript

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2009-10-14 12:07:09.0

Tags: Theory, Call Transcript, Earnings, Medtox Scientific Inc., Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Steven Crowley - Craig Hallum Capital Group.

Steven Crowley - Craig Hallum Capital Group

Couple questions for you. Maybe a good place to start would be, you had another very good quarter of new business generation in the workplace drugs-of-abuse business and maybe across your business line, maybe you could offer us a little bit of color on what look to be good numbers there?

Jim Schoonover

Steve, this is Jim Schoonover. I think, we’ve continued to sell both into the occupational health clinic market and also the small to mid-size corporate market with our laboratory based drugs of abuse program and we continue to find that the value-added services we offer resonate with that group.

Clearly, some of the larger corporations, especially those in retail and construction industries of that nature have been impacted more by the recession than others. So we did see that strong sales growth mitigated a bit by the other activity, but we feel very good about our position in the market. We tend to be high service and we think that that is a position that not only will do well in the short-run, but for the long-term as well.

Steven Crowley - Craig Hallum Capital Group

Now in terms of the decline in business year-over-year from existing customers, one of the things we’ve talked about is steeper declines or steep declines in the base started to happen last autumn, maybe starting last September or so. Do you think that theory holds water that as you anniversary some of those steep declines -- the same-store sales declines should lessen and be less of a headwind for you. Do you think that there it holds water?

Jim Schoonover

We would like to think so, Steve. It’s a little early to predict, even though we have seen in this most recent quarter a flattening through the quarter, but I’m not sure that’s a long enough time period to predict the trend, but I think that’s a fairly solid theory and we’re optimistic that will happen.

Steven Crowley - Craig Hallum Capital Group

Then in terms of a couple new areas, or rejuvenated areas hospital drugs-of-abuse testing, you spent some ink in the press release talking about the attributes of your tasks, and I think some of the metrics you provided us in there in terms of number of units you’ve been able to get in customers’ hands since the FDA approval back in July seemed encouraging.

 

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