ACTON, Mass., April 25, 2017 /PRNewswire/ -- Psychemedics
Corporation (NASDAQ: PMD) today announced first quarter financial
results for the period ended March
31, 2017. The Company also announced a quarterly
dividend of $0.15 per share payable
to shareholders of record as of May 8,
2017, to be paid on May 18,
2017. This will be the Company's 83rd consecutive
quarterly dividend.
The Company's revenue for the quarter ended March 31, 2017 was $10.2
million versus $6.7 million
for the quarter ended March 31, 2016,
an increase of 53%. Net income for the quarter ended
March 31, 2017 was $1.5 million or $0.27 per share, versus a net loss of
$23 thousand or $0.00 per share for the comparable period last
year.
Raymond C. Kubacki, Chairman and
Chief Executive Officer, said,
"This quarter was a record for
revenue and earnings for any first quarter in the Company's
history. The significant growth for the quarter was driven by our
international business, specifically professional driver testing in
Brazil. Additionally, we also continued to see pick-up in our
domestic business, with especially robust growth in the Oil &
Gas sector.
"The improvement in our bottom
line was primarily driven by increased revenue. However, the change
from the comparable period in 2016 was also impacted by the ramp up
costs we incurred in the 2016 period related to Brazil operations, which depressed earnings
for that quarter by $0.10 per
share."
"As of March 2017, the Brazilian law mandating hair
testing for professional drivers has been in effect for a full year
with very positive results for the people of Brazil and our Company's earnings. We are also
pleased to report that even with this significant additional
business, we have continually maintained superior customer service
to our domestic customers. In fact, our testing turnaround
time, a key component to our customers' programs, has improved
since the Brazil professional
license business began.
"The Brazil professional drivers' market is large
and will expand further in September
2018 when professional driver license renewals go from every
5 years to every 2 ½ years. While we are obviously pleased with our
progress, we recognize that there are continual challenges that
accompany any new large market as it develops, and we plan to
address them as they may occur.
"The Company's balance sheet
remains strong with approximately $6.9
million in cash and $7.2
million of working capital at March
31, 2017. The total equipment financing outstanding at
such time was $3.1 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. This dividend
represents our 83rd consecutive quarterly dividend."
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, challenges
associated with the development of new markets, profitability,
pricing, new accounts, customer base, market share, test volume,
sales and marketing strategies, U.S. and foreign drug testing laws
and regulations and the 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, currency risks, R&D spending,
competition (including, without limitation, competition from other
companies pursuing the same growth opportunities), the Company's
ability to maintain its reputation and brand image, the
ability of the Company to achieve its business plans, cost
controls, leveraging of its global operating platform, risks
of information technology system failures and data security
breaches, the uncertain global economy, the Company's ability
to attract, develop and retain executives and other qualified
employees and independent contractors, including distributors, the
Company's ability to obtain and protect intellectual property
rights, litigation risks, 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 Operations
(in thousands, except
per share amounts)
(UNAUDITED)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Revenues
|
$
10,209
|
|
$
6,667
|
Cost of
revenues
|
4,893
|
|
3,929
|
|
|
|
|
Gross
profit
|
5,316
|
|
2,738
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
General
& administrative
|
1,475
|
|
1,252
|
Marketing & selling
|
1,243
|
|
1,127
|
Research
& development
|
330
|
|
360
|
|
|
|
|
Total Operating
Expenses
|
3,048
|
|
2,739
|
|
|
|
|
Operating income
(loss)
|
2,268
|
|
(1)
|
Interest expense,
net
|
(22)
|
|
(35)
|
|
|
|
|
Net income/(loss)
before provision for/(benefit) from income taxes
|
2,246
|
|
(36)
|
|
|
|
|
Provision for /
(Benefit) from income taxes
|
746
|
|
(13)
|
|
|
|
|
Net income /
(loss)
|
$
1,500
|
|
$
(23)
|
|
|
|
|
Basic net (loss) /
income per share
|
$0.27
|
|
$0.00
|
|
|
|
|
Diluted net (loss) /
income per share
|
$0.27
|
|
$0.00
|
|
|
|
|
Dividends declared
per share
|
$0.15
|
|
$0.15
|
Psychemedics
Corporation
Balance
Sheets
(in thousands, except
par value)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and
cash equivalents
|
$
6,869
|
|
$
3,938
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
|
|
of $58 in 2017
and $50 in 2016
|
3,787
|
|
5,837
|
Prepaid
expenses and other current assets
|
1,171
|
|
1,079
|
Total Current
Assets
|
11,827
|
|
10,854
|
|
|
|
|
Fixed Assets, net of
accumulated amortization and depreciation
|
|
|
|
of
$9,577 in 2017 and $8,900 in 2016
|
13,055
|
|
13,358
|
Other
assets
|
813
|
|
820
|
|
|
|
|
Total
Assets
|
$
25,695
|
|
$
25,032
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
622
|
|
$
1,363
|
Accrued
expenses
|
2,889
|
|
1,988
|
Current
portion of long-term debt
|
1,144
|
|
1,144
|
Total Current
Liabilities
|
4,655
|
|
4,495
|
|
|
|
|
Long-term debt
|
1,951
|
|
2,237
|
Deferred
tax liabilities, long-term
|
2,638
|
|
2,693
|
Total
Liabilities
|
9,244
|
|
9,425
|
|
|
|
|
Commitments and
Contingencies (Note 7)
|
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
Preferred stock, $0.005 par value, 873 shares
authorized,
|
|
|
|
no shares
issued or outstanding
|
--
|
|
--
|
Common
stock, $0.005 par value; 50,000 shares authorized
|
|
|
|
6,128 shares
issued in 2017 and 2016
|
31
|
|
31
|
Additional paid-in capital
|
30,766
|
|
30,603
|
Accumulated deficit
|
(4,264)
|
|
(4,945)
|
Less -
Treasury stock, at cost, 668 shares in 2017 and 2016
|
(10,082)
|
|
(10,082)
|
|
|
|
|
Total Shareholders'
Equity
|
16,451
|
|
15,607
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
$
25,695
|
|
$
25,032
|
Contact:
Neil Lerner
Vice President of Finance
(978) 206-8220
Neill@psychemedics.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/psychemedics-corporation-announces-record-q1-revenues-and-earnings-300445430.html
SOURCE Psychemedics Corporation