ACTON, Mass., Oct. 26, 2016 /PRNewswire/ -- Psychemedics
Corporation (NASDAQ: PMD) today announced third quarter financial
results for the period ended September
30, 2016. The Company also announced a quarterly
dividend of $0.15 per share payable
to shareholders of record as of November 7,
2016 to be paid on November
17, 2016. This will be the Company's 81st
consecutive quarterly dividend.
The Company's revenue for the quarter ended September 30, 2016 increased 67% to $11.8 million, from $7.1
million for the quarter ended September 30, 2015. Net income for the
quarter ended September 30, 2016
increased 240% to $2.7 million or
$0.49 per diluted share, from
$796 thousand or $0.15 per diluted share for the comparable period
last year. The Company's revenue for the nine months ended
September 30, 2016 increased 35% to
$28.2 million, from $20.8 million for the nine months ended
September 30, 2015. Net income for
the nine months ended September 30,
2016 increased 226% to $4.3
million or $0.79 per diluted
share, from $1.3 million or
$0.25 per diluted share for the
comparable period last year.
Raymond C. Kubacki, Chairman and
Chief Executive Officer, said,
"For the second quarter in a row,
we had record sales and earnings for any quarter in the Company's
history. The growth has been driven by our international
business, specifically professional driver testing in Brazil.
"We have noted since 2013 a
significant opportunity in Brazil,
and are very pleased 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.
"In the second quarter of this
year, we noted that testing for drugs of abuse for professional
drivers in Brazil had begun. We
also noted that some of the Brazilian states had required
additional time to implement the law. In this quarter, we had
virtually all of the states begin testing and this had a very
positive impact on the revenue and earnings for the quarter.
"In addition, this mandated
program is showing significantly positive results for Brazil.
The Technology Institute for Road Safety did a study, in parallel
with the Federal Highway Police, that found from March to July the
number of accidents involving trucks on federal roads in the
country decreased by 38%, from 18,000 to 11,000, compared to the
same period last year.
"While we are pleased that this
large market is now underway and has good momentum and results, we
are also mindful of the uncertainties that can accompany any new
market as it develops.
"Also during the quarter, we were
honored to be recognized for our world-class performance in
customer service through a certification as a Center of Excellence
by BenchmarkPortal. This is one of the most prestigious
awards in the customer service and support industry. Customer
service is always important and we constantly strive to be
responsive to our clients needs. We value our clients and this
award gets to the heart of why we are in business: to help our
clients succeed in their business.
"The Company's balance sheet
remains strong with approximately $4.1
million in cash and $6.7
million of working capital. The total equipment
financing outstanding was $5.2
million as of September 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,
profitability, pricing, new accounts, customer base, market share,
test volume, sales and marketing strategies, U.S. and foreign drug
testing laws and regulations and enforcement of such laws and
regulations, 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, 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
(UNAUDITED)
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
|
September
30,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
11,849,163
|
|
$
7,084,265
|
|
|
$
28,216,279
|
|
$
20,841,415
|
|
Cost of
revenues
|
4,744,273
|
|
3,627,582
|
|
|
13,163,802
|
|
10,776,122
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
7,104,890
|
|
3,456,683
|
|
|
15,052,477
|
|
10,065,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
General
& administrative
|
1,277,988
|
|
1,229,441
|
|
|
3,715,838
|
|
3,528,020
|
|
Marketing & selling
|
1,374,896
|
|
1,284,016
|
|
|
3,804,584
|
|
3,894,614
|
|
Research
& development
|
347,970
|
|
392,042
|
|
|
1,058,633
|
|
1,284,914
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
3,000,854
|
|
2,905,499
|
|
|
8,579,055
|
|
8,707,548
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
4,104,036
|
|
551,184
|
|
|
6,473,422
|
|
1,357,745
|
|
Interest expense,
net
|
( 33,904 )
|
|
( 30,411 )
|
|
|
( 104,037
)
|
|
( 94,614 )
|
|
|
|
|
|
|
|
|
|
|
Net income before
income taxes
|
4,070,132
|
|
520,773
|
|
|
6,369,385
|
|
1,263,131
|
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes
|
1,362,111
|
|
( 275,612
)
|
|
|
2,051,053
|
|
( 63,106 )
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
2,708,021
|
|
$
796,385
|
|
|
$
4,318,332
|
|
$
1,326,237
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
$
0.50
|
|
$
0.15
|
|
|
$
0.79
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
$
0.49
|
|
$
0.15
|
|
|
$
0.79
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
0.15
|
|
$
0.15
|
|
|
$
0.45
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, basic
|
5,459,802
|
|
5,422,541
|
|
|
5,441,967
|
|
5,399,131
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
5,510,042
|
|
5,424,989
|
|
|
5,457,368
|
|
5,406,053
|
|
|
|
|
|
|
|
|
|
|
Psychemedics
Corporation
Balance
Sheets
(UNAUDITED)
|
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and
cash equivalents
|
$
4,111,808
|
|
$
2,689,464
|
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
|
|
|
of $55,743 in
2016 and $58,684 in 2015
|
6,272,108
|
|
3,538,765
|
|
Prepaid
expenses and other current assets
|
1,266,409
|
|
1,060,587
|
|
Income
tax receivable
|
-
|
|
840,122
|
|
Deferred
tax assets
|
536,097
|
|
327,442
|
|
Total Current
Assets
|
12,186,422
|
|
8,456,380
|
|
Fixed Assets, net of
accumulated amortization and depreciation
|
|
|
|
|
of
$8,240,883 in 2016 and $6,642,501 in 2015
|
12,926,146
|
|
13,132,114
|
|
Other
assets
|
815,987
|
|
774,474
|
|
|
|
|
|
Total
Assets
|
$
25,928,555
|
|
$
22,362,968
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
1,144,236
|
|
$
747,291
|
|
Accrued
expenses
|
1,587,584
|
|
1,197,632
|
|
Accrued
income taxes
|
1,024,102
|
|
-
|
|
Current
portion of long-term debt
|
1,741,602
|
|
1,619,633
|
|
Total Current
Liabilities
|
5,497,524
|
|
3,564,556
|
|
|
|
|
|
Long-term debt
|
3,484,303
|
|
4,272,137
|
|
Deferred
tax liabilities, long-term
|
3,043,911
|
|
2,852,745
|
|
Total
Liabilities
|
12,025,738
|
|
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
|
|
|
|
|
6,128,350 shares
issued in 2016 and 6,090,671 shares issued in 2015
|
30,642
|
|
30,453
|
|
Additional paid-in capital
|
30,439,974
|
|
30,021,604
|
|
Accumulated deficit
|
( 6,486,010
)
|
|
( 8,296,738
)
|
|
Less -
Treasury stock, at cost, 668,130 shares
|
( 10,081,789
)
|
|
( 10,081,789
)
|
|
|
|
|
|
Total Shareholders'
Equity
|
13,902,817
|
|
11,673,530
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
$
25,928,555
|
|
$
22,362,968
|
|
|
|
|
|
|
|
|
Contact:
Neil Lerner
Vice President of Finance
(978) 206-8220
Neill@psychemedics.com
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SOURCE Psychemedics Corporation