Psychemedics Corporation Announces Earnings Up 20% And Top Revenue Quarter
DECLARES 69th CONSECUTIVE QUARTERLY DIVIDEND
ACTON, Mass., Oct. 28, 2013 /PRNewswire/ -- Psychemedics Corporation (NASDAQ: PMD) today announced third quarter financial results for the period ended September 30, 2013. The Company also announced a quarterly dividend of $0.15 per share payable to shareholders of record as of November 11, 2013 to be paid on November 22, 2013. This will be the Company's 69th consecutive quarterly dividend.
The Company's revenue for the quarter ended September 30, 2013 was $7.1 million versus $6.5 million for the quarter ended September 30, 2012, an increase of 9%. Net income for the quarter ended September 30, 2013 was $1.05 million or $0.20 per diluted share, versus $878 thousand or $0.17 per diluted share, for the comparable period last year, an increase of 20%. The Company's revenue for the nine months ended September 30, 2013 was $20.4 million versus $19.6 million for the nine months ended September 30, 2012, an increase of 4%. Net income for the nine months ended September 30, 2013 was $2.9 million or $0.55 per diluted share, versus $2.7 million or $0.51 per diluted share, for the comparable period last year, an increase of 9%.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said,
"We are very pleased to report a 20% growth in earnings for the quarter. In addition, we achieved record sales for the second quarter in a row. Our new business growth continues to be robust, coming from several different industry segments. In addition, the pre-tax margins were strong at 25%.
"We continue to have a strong balance sheet with more than $2.8 million in cash and cash equivalents as of September 30, 2013 with no long term debt, despite heavy investment in new equipment and software over the last two years.
"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 $0.15 dividend for the quarter. This is our 69th 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, 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 development of markets for new products and services offered, 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.
Contact: |
Neil Lerner |
Vice President of Finance |
|
(978) 206-8220 |
|
Psychemedics Corporation Statements of Income and Comprehensive Income (UNAUDITED) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2013 |
2012 |
2013 |
2012 |
|||||
Revenues |
$7,055,202 |
$6,459,775 |
$20,386,381 |
$19,565,350 |
||||
Cost of revenues |
2,879,150 |
2,742,072 |
8,644,109 |
8,079,141 |
||||
Gross profit |
4,176,052 |
3,717,703 |
11,742,272 |
11,486,209 |
||||
Operating Expenses: |
||||||||
General & administrative |
1,075,133 |
921,891 |
3,075,794 |
2,921,880 |
||||
Marketing & selling |
1,158,355 |
1,067,768 |
3,435,257 |
3,413,388 |
||||
Research & development |
203,265 |
297,090 |
558,011 |
679,031 |
||||
Total Operating Expenses |
2,436,753 |
2,286,749 |
7,069,062 |
7,014,299 |
||||
Operating income |
1,739,299 |
1,430,954 |
4,673,210 |
4,471,910 |
||||
Other income |
280 |
447 |
91,993 |
1,442 |
||||
Net income before provision for income taxes |
1,739,579 |
1,431,401 |
4,765,203 |
4,473,352 |
||||
Provision for income taxes |
687,579 |
552,920 |
1,827,932 |
1,766,336 |
||||
Net income and comprehensive income |
$1,052,000 |
$878,481 |
$2,937,271 |
$2,707,016 |
||||
Basic net income per share |
$0.20 |
$0.17 |
$0.55 |
$0.52 |
||||
Diluted net income per share |
$0.20 |
$0.17 |
$0.55 |
$0.51 |
||||
Dividends declared per share |
$0.15 |
$0.15 |
$0.45 |
$0.45 |
||||
Weighted average common shares outstanding, basic |
5,312,105 |
5,272,428 |
5,301,330 |
5,256,240 |
||||
Weighted average common shares outstanding, diluted |
5,330,515 |
5,289,808 |
5,314,224 |
5,266,237 |
Psychemedics Corporation Balance Sheets (UNAUDITED) |
|||
September 30, |
December 31, |
||
2013 |
2012 |
||
ASSETS |
|||
Current Assets: |
|||
Cash and cash equivalents |
$2,842,741 |
$3,065,785 |
|
Accounts receivable, net of allowance for doubtful accounts |
|||
of $179,915 in 2013 and $121,583 in 2012 |
5,293,505 |
4,620,768 |
|
Prepaid expenses and other current assets |
1,055,363 |
823,274 |
|
Income tax receivable |
-- |
854,212 |
|
Deferred tax assets |
365,094 |
209,877 |
|
Total Current Assets |
9,556,703 |
9,573,916 |
|
Fixed Assets, net of accumulated amortization and depreciation |
|||
of $5,018,365 in 2013 and $4,395,605 in 2012 |
4,954,481 |
4,201,409 |
|
Other assets |
552,955 |
345,293 |
|
Total Assets |
$ 15,064,139 |
$ 14,120,618 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current Liabilities: |
|||
Accounts payable |
$577,081 |
$669,789 |
|
Accrued expenses |
1,598,457 |
1,413,541 |
|
Total Current Liabilities |
2,175,538 |
2,083,330 |
|
Deferred tax liabilities, long-term |
814,619 |
814,619 |
|
Total Liabilities |
2,990,157 |
2,897,949 |
|
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 |
|||
5,981,896 shares issued in 2013 and 5,940,558 shares issued in 2012 |
29,910 |
29,703 |
|
Additional paid-in capital |
28,756,444 |
28,460,764 |
|
Accumulated deficit |
(6,630,583) |
(7,186,009) |
|
Less - Treasury stock, at cost, 668,130 shares in 2013 and 2012 |
(10,081,789) |
(10,081,789) |
|
Total Shareholders' Equity |
12,073,982 |
11,222,669 |
|
Total Liabilities and Shareholders' Equity |
$15,064,139 |
$14,120,618 |
SOURCE Psychemedics Corporation
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article