Attached files
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| 8-K - FORM 8-K - PSYCHEMEDICS CORP | v238395_8k.htm |
NEWS RELEASE
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Contact:
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Neil Lerner
Vice President of Finance
(978) 206-8220
Neill@psychemedics.com
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PSYCHEMEDICS CORPORATION ANNOUNCES THIRD QUARTER PROFITS
EARNINGS UP 35% FROM Q3 2010
Acton, Massachusetts, November 3, 2011 -- Psychemedics Corporation (NASDAQ:PMD) today announced third quarter financial results for the period ended September 30, 2011. The Company also announced a quarterly dividend of $0.12 per share payable to shareholders of record as of November 17, 2011 to be paid on December 1, 2011. This will be the Company’s 61st consecutive quarterly dividend.
The Company’s revenue for the quarter ended September 30, 2011 was $6.3 million versus $5.1 million for the quarter ended September 30, 2010, an increase of 24%. Net income for the quarter ended September 30, 2011 was $1.1 million or $0.21 per diluted share, versus $817 thousand or $0.16 per diluted share, for the comparable period last year, an increase of 35%. The Company's revenue for the nine months ended September 30, 2011 was $18.5 million, as compared to $15.0 million for the comparable period of 2010, an increase of 24%. Net income for the nine months ended September 30, 2011 was $3.1 million or $0.58 per diluted share, as compared to last year during which the Company earned $2.2 million or $0.42 per diluted share, an increase of 39%.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said,
“Our third quarter results were strong, both on the top line as well as earnings. The majority of our growth came from new business. However, in light of the current tepid economic environment, we were also encouraged to see growth in our base business. We continued to have robust margins including a 29% pre-tax margin. While we maintained tight cost control, we also continue to make investments in sales and marketing.
“Our balance sheet remained strong with no long-term debt and cash of $3.5 million. There was a temporary increase in accounts receivable and corresponding reduction of cash from prior quarters due to a delay in August invoicing as a result of a one-time upgrade to our billing system.
“Our directors share our confidence in the long-term future of Psychemedics and remain committed to rewarding shareholders and sharing the financial success of the Company with them as we move forward.
“Therefore, the Board has declared a $0.12 dividend for the quarter. This is our 61st consecutive quarterly dividend. In addition, we continue to have a share buyback program in place.”
Psychemedics is the world’s largest provider of hair testing for drugs of abuse with thousands of corporations relying on the patented Psychemedics drug testing services. Psychemedics’ clients include over 10% of the Fortune 500, some of the largest police departments in America and six Federal Reserve Banks.
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, dividends, future business, growth opportunities, new accounts, customer base, market share, test volume and sales and marketing strategies) 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 expansion of the Company's sales and marketing team, development of markets for new products and services offered, the economic health of principal customers of the Company, government regulation, including but not limited to FDA regulations, competition and general economic conditions and other factors disclosed in the Company’s filings with the Securities and Exchange Commission.
PSYCHEMEDICS CORPORATION
STATEMENTS OF INCOME
(UNAUDITED)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2011
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2010
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2011
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2010
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Revenues
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$ | 6,315,142 | $ | 5,106,262 | $ | 18,542,666 | $ | 14,992,625 | ||||||||
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Cost of revenues
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2,371,255 | 2,080,214 | 7,243,474 | 6,033,093 | ||||||||||||
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Gross profit
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3,943,887 | 3,026,048 | 11,299,192 | 8,959,532 | ||||||||||||
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Operating expenses:
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General & administrative
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1,018,967 | 850,312 | 2,898,426 | 2,760,195 | ||||||||||||
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Marketing & selling
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981,197 | 722,815 | 2,945,492 | 2,098,192 | ||||||||||||
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Research & development
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136,281 | 116,534 | 399,785 | 364,445 | ||||||||||||
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Total operating expenses
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2,136,445 | 1,689,661 | 6,243,703 | 5,222,832 | ||||||||||||
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Operating income
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1,807,442 | 1,336,387 | 5,055,489 | 3,736,700 | ||||||||||||
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Interest income
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773 | 4,940 | 4,790 | 19,422 | ||||||||||||
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Net income before provision for income taxes
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1,808,215 | 1,341,327 | 5,060,279 | 3,756,122 | ||||||||||||
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Provision for income taxes
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708,830 | 523,959 | 2,009,184 | 1,559,391 | ||||||||||||
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Net income
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$ | 1,099,385 | $ | 817,368 | $ | 3,051,095 | $ | 2,196,731 | ||||||||
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Basic net income per share
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$ | 0.21 | $ | 0.16 | $ | 0.58 | $ | 0.42 | ||||||||
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Diluted net income per share
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$ | 0.21 | $ | 0.16 | $ | 0.58 | $ | 0.42 | ||||||||
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Dividends declared per share
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$ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.36 | ||||||||
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Weighted average common shares outstanding, basic
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5,237,603 | 5,212,835 | 5,227,699 | 5,205,480 | ||||||||||||
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Weighted average common shares outstanding, diluted
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5,240,895 | 5,228,378 | 5,234,577 | 5,219,760 | ||||||||||||
PSYCHEMEDICS CORPORATION
BALANCE SHEETS
(UNAUDITED)
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September 30,
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December 31,
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2011
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2010
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ASSETS
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Current Assets:
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Cash and cash equivalents
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$ | 3,501,525 | $ | 3,720,488 | ||||
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Short-term investments
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— | 2,018,452 | ||||||
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Accounts receivable, net of allowance for doubtful accounts of $138,067 in 2011 and $119,295 in 2010
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6,197,433 | 3,905,821 | ||||||
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Prepaid expenses and other current assets
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836,069 | 700,822 | ||||||
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Deferred tax assets
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362,153 | 239,831 | ||||||
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Total Current Assets
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10,897,180 | 10,585,414 | ||||||
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Fixed Assets:
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Equipment & leasehold improvements
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12,643,486 | 11,730,866 | ||||||
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Less accumulated depreciation
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(10,917,452 | ) | (10,663,996 | ) | ||||
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Net Fixed Assets
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1,726,034 | 1,066,870 | ||||||
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Other Assets
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222,724 | 114,037 | ||||||
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Total Assets
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$ | 12,845,938 | $ | 11,766,321 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current Liabilities:
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Accounts payable
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$ | 293,930 | $ | 699,833 | ||||
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Accrued expenses
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1,440,986 | 1,302,370 | ||||||
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Deferred revenue
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— | 16,605 | ||||||
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Total Current Liabilities
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1,734,916 | 2,018,808 | ||||||
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Shareholders' Equity:
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Preferred-stock, $0.005 par value, 872,521 shares authorized, no shares issued or outstanding
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— | — | ||||||
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Common stock, $0.005 par value; 50,000,000 shares authorized 5,903,552 shares issued in 2011 and 5,877,358 shares issued 2010
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29,518 | 29,387 | ||||||
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Paid-in capital
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27,982,277 | 27,764,992 | ||||||
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Accumulated deficit
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(6,818,984 | ) | (7,987,468 | ) | ||||
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Less - Treasury stock at cost, 668,130 shares in 2011 and 665,345 in 2010
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(10,081,789 | ) | (10,059,398 | ) | ||||
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Total Shareholders' Equity
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11,111,022 | 9,747,513 | ||||||
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Total Liabilities and Shareholders' Equity
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$ | 12,845,938 | $ | 11,766,321 | ||||