ACTON, Mass., July 26, 2016 /PRNewswire/ -- Psychemedics
Corporation (NASDAQ: PMD) today announced second quarter financial
results for the period ended June 30,
2016. The Company also announced a quarterly dividend of
$0.15 per share payable to
shareholders of record as of August 5,
2016 to be paid on August 15,
2016. This will be the Company's 80th consecutive
quarterly dividend.
The Company's revenue for the quarter ended June 30, 2016 was $9.7
million versus $7.0 million
for the quarter ended June 30, 2015,
an increase of 39%. Net income for the quarter ended
June 30, 2016 was $1.6 million or $0.30 per diluted share, versus $252 thousand or $0.05 per diluted share, for the comparable
period last year, an increase of 547%. The Company's revenue for
the six months ended June 30, 2016
was $16.4 million versus $13.8 million for the six months ended
June 30, 2015, an increase of 19%.
Net income for the six months ended June 30,
2016 was $1.6 million or
$0.30 per diluted share, versus
$530 thousand or $0.10 per diluted share, for the comparable
period last year, an increase of 204%.
Raymond C. Kubacki, Chairman and
Chief Executive Officer, said,
"We are very pleased to report the highest revenue and earnings
for any quarter in the Company's history. The growth has been
driven by our international business, specifically an opportunity
in Brazil as noted below. We
also reached another milestone this quarter with 20 years of
consecutive quarterly dividends.
"We have noted since 2013 a significant opportunity in
Brazil, and are very pleased to
begin to see the results of our efforts and the efforts of our
exclusive independent Brazilian distributor, Psychemedics Brasil.
This opportunity is to compete for the testing of drugs of abuse
required for professional drivers in Brazil. As of March
2016, testing for this opportunity had begun and is being
phased in as some states have required additional time to implement
the law. Over the last two years, we have made significant
investments in equipment, people and an additional facility to
handle this business. In the recent past, these investments
have impacted earnings and required the Company to take on long
term debt. We are pleased about the very positive
impact this opportunity had on the revenue and earnings this
quarter.
"The Company's balance sheet remains strong with approximately
$2.3 million in cash and $4.7 million of working capital. The total
equipment financing outstanding was $5.7
million as of June 30, 2016,
compared to a total original amount borrowed of $8.7 million. Our directors share our
confidence in the future of Psychemedics and remain committed to
rewarding shareholders and sharing the financial success of the
Company with them as we grow. Therefore, we are pleased to
declare a quarterly dividend of $0.15
per share."
Psychemedics Corporation is the world's largest provider of hair
testing for the detection of drugs of abuse. The Company's patented
process is used by thousands of U.S. and international clients,
including over 10% of the Fortune 500 companies, for pre-employment
and random drug testing. Major police departments, Federal Reserve
Banks, schools, and other public entities also rely on our unique
patented drug testing process. We strongly believe our drug testing
method to be superior to any other product currently in use,
including traditional urine testing and other hair testing
methods.
The Psychemedics web site is www.psychemedics.com
Cautionary Statement for purposes of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of
1995: From time to time, information provided by Psychemedics
may contain forward-looking information that involves risks and
uncertainties. In particular, statements contained in this
release that are not historical facts (including but not limited to
statements concerning earnings, earnings per share, revenues, cash
flows, dividends, future business, growth opportunities (including
an opportunity in Brazil), new
accounts, customer base, market share, test volume, sales and
marketing strategies, U.S. and foreign drug testing laws and
regulations including effective dates thereof, required investments
in plant, equipment and people and new test development) may be
"forward looking" statements. Actual results may differ from
those stated in any forward-looking statements. Factors that
may cause such differences include but are not limited to risks
associated with the development of markets for new products and
services offered, costs of capacity expansion, U.S. and foreign
government regulation, including but not limited to FDA
regulations, Brazilian laws and regulations and projected
implementation dates, proposed laws and regulations, R&D
spending, competition (including, without limitation, competition
from other companies pursuing the same growth
opportunities) and general economic conditions and other
factors disclosed in the Company's filings with the Securities and
Exchange Commission. The forward-looking statements contained
herein speak only of the Company's expectations as of the date of
this press release. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the
Company's expectations or any change in events, conditions, or
circumstances on which any such statement is based.
|
Psychemedics
Corporation
|
|
Condensed
Statements of Income and Comprehensive Income
|
|
(UNAUDITED)
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
June 30,
|
|
|
June 30,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
9,700,052
|
|
$
7,001,409
|
|
|
$16,367,116
|
|
$13,757,150
|
|
Cost of
revenues
|
4,490,907
|
|
3,731,667
|
|
|
8,419,529
|
|
7,148,540
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,209,145
|
|
3,269,742
|
|
|
7,947,587
|
|
6,608,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
General
& administrative
|
1,185,775
|
|
1,154,489
|
|
|
2,437,850
|
|
2,298,579
|
|
Marketing & selling
|
1,302,034
|
|
1,322,117
|
|
|
2,429,688
|
|
2,610,598
|
|
Research
& development
|
350,205
|
|
437,090
|
|
|
710,663
|
|
892,872
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
2,838,014
|
|
2,913,696
|
|
|
5,578,201
|
|
5,802,049
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
2,371,131
|
|
356,046
|
|
|
2,369,386
|
|
806,561
|
|
Interest expense,
net
|
( 35,492 )
|
|
( 30,877 )
|
|
|
( 70,133 )
|
|
( 64,204 )
|
|
|
|
|
|
|
|
|
|
|
Net income before
provision for income taxes
|
2,335,639
|
|
325,169
|
|
|
2,299,253
|
|
742,357
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
701,884
|
|
72,840
|
|
|
688,942
|
|
212,506
|
|
|
|
|
|
|
|
|
|
|
Net income and
comprehensive income
|
$
1,633,755
|
|
$
252,329
|
|
|
$1,610,311
|
|
$529,851
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
$0.30
|
|
$0.05
|
|
|
$0.30
|
|
$0.10
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
$0.30
|
|
$0.05
|
|
|
$0.30
|
|
$0.10
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$0.15
|
|
$0.15
|
|
|
$0.30
|
|
$0.30
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, basic
|
5,443,150
|
|
5,399,270
|
|
|
5,432,902
|
|
5,387,232
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
5,454,167
|
|
5,408,372
|
|
|
5,440,376
|
|
5,396,740
|
|
|
|
|
|
|
|
|
|
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Psychemedics
Corporation
|
|
Balance
Sheets
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and
cash equivalents
|
$
2,279,905
|
|
$
2,689,464
|
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
|
|
|
of $41,373 in
2016 and $58,684 in 2015
|
5,460,101
|
|
3,538,765
|
|
Prepaid
expenses and other current assets
|
1,241,588
|
|
1,060,587
|
|
Income
tax receivable
|
-
|
|
840,122
|
|
Deferred
tax assets
|
488,759
|
|
327,442
|
|
Total Current
Assets
|
9,470,353
|
|
8,456,380
|
|
Fixed Assets, net of
accumulated amortization and depreciation
|
|
|
|
|
of
$7,695,144 in 2016 and $6,642,501 in 2015
|
13,259,268
|
|
13,132,114
|
|
Other
assets
|
813,028
|
|
774,474
|
|
|
|
|
|
Total
Assets
|
$
23,542,649
|
|
$
22,362,968
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
988,507
|
|
$
747,291
|
|
Accrued
expenses
|
1,461,183
|
|
1,197,632
|
|
Accrued
income taxes
|
535,287
|
|
-
|
|
Current
portion of long-term debt
|
1,741,602
|
|
1,619,633
|
|
Total Current
Liabilities
|
4,726,579
|
|
3,564,556
|
|
|
|
|
|
Long-term debt
|
3,919,703
|
|
4,272,137
|
|
Deferred
tax liabilities, long-term
|
3,042,122
|
|
2,852,745
|
|
Total
Liabilities
|
11,688,404
|
|
10,689,438
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
Preferred-stock, $0.005 par value, 872,521 shares
authorized,
|
|
|
|
|
no shares
issued or outstanding
|
-
|
|
-
|
|
Common
stock, $0.005 par value; 50,000,000 shares authorized
|
|
|
|
|
6,127,850 shares
issued in 2016 and 6,090,671 shares issued in 2015
|
30,639
|
|
30,453
|
|
Additional paid-in capital
|
30,280,467
|
|
30,021,604
|
|
Accumulated deficit
|
( 8,375,072
)
|
|
( 8,296,738
)
|
|
Less -
Treasury stock, at cost, 668,130 shares
|
( 10,081,789
)
|
|
( 10,081,789
)
|
|
|
|
|
|
Total Shareholders'
Equity
|
11,854,245
|
|
11,673,530
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
$
23,542,649
|
|
$
22,362,968
|
Contact:
Neil Lerner
Vice President of Finance
(978) 206-8220
Neill@psychemedics.com
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SOURCE Psychemedics Corporation