Psychemedics Corporation Announces Record First Quarter Revenues
DECLARES 63rd CONSECUTIVE QUARTERLY DIVIDEND
ACTON, Mass., May 8, 2012 /PRNewswire/ -- Psychemedics Corporation (NASDAQ: PMD) today announced first quarter financial results for the period ended March 31, 2012. The Company also announced a quarterly dividend of $0.15 per share payable to shareholders of record as of May 18, 2012 to be paid on May 31, 2012. This will be the Company's 63rd consecutive quarterly dividend.
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The Company's revenue for the quarter ended March 31, 2012 was $6.2 million versus $6.0 million for the quarter ended March 31, 2011, an increase of 4%. Net income for the quarter ended March 31, 2012 was $827 thousand or $0.16 per diluted share, versus $858 thousand or $0.16 per diluted share, for the comparable period last year.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said,
"We are very pleased to report record sales for any first quarter in the Company's history. This is in comparison to our highest growth quarter last year. While our base business experienced a moderate decrease in the quarter, new business was healthy and in fact, accounted for all the gain in the quarter. We maintained tight cost control, but also continued to make investments in sales and marketing and in research and development.
"We continue to have a strong balance sheet with more than $4.7 million in cash and cash equivalents as of March 31, 2012 and no long term debt.
"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 63rd 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 proprietary 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.
| Contact: |
Neil Lerner |
| Vice President of Finance |
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| (978) 206-8220 |
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| PSYCHEMEDICS CORPORATION |
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| STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
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| (UNAUDITED) |
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| Three Months Ended |
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| March 31, |
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| 2012 |
2011 |
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| Revenues |
$6,243,855 |
$5,999,739 |
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| Cost of revenues |
2,578,735 |
2,383,026 |
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| Gross profit |
3,665,120 |
3,616,713 |
|
| Operating Expenses: |
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| General & administrative |
995,441 |
970,064 |
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| Marketing & selling |
1,124,825 |
1,014,117 |
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| Research & development |
168,048 |
142,451 |
|
| Total Operating Expenses |
2,288,314 |
2,126,632 |
|
| Operating income |
1,376,806 |
1,490,081 |
|
| Interest income |
510 |
2,205 |
|
| Net income before provision for income taxes |
1,377,316 |
1,492,286 |
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| Provision for income taxes |
549,825 |
633,798 |
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| Net income and comprehensive income |
$827,491 |
$858,488 |
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| Basic net income per share |
$0.16 |
$0.16 |
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| Diluted net income per share |
$0.16 |
$0.16 |
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| Dividends declared per share |
$0.15 |
$0.12 |
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| Weighted average common shares outstanding, basic |
5,235,422 |
5,212,013 |
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| Weighted average common shares outstanding, diluted |
5,244,042 |
5,242,518 |
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| PSYCHEMEDICS CORPORATION |
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| BALANCE SHEETS |
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| (UNAUDITED) |
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| March 31, |
December 31, |
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| 2012 |
2011 |
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| ASSETS |
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| Current Assets: |
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| Cash and cash equivalents |
$4,725,808 |
$5,564,233 |
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| Accounts receivable, net of allowance for doubtful accounts |
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| of $150,974 in 2012 and $169,191 in 2011 |
4,799,119 |
4,490,976 |
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| Prepaid expenses and other current assets |
692,937 |
565,508 |
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| Income tax receivable |
52,136 |
564,083 |
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| Deferred tax assets |
361,424 |
315,501 |
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| Total Current Assets |
10,631,424 |
11,500,301 |
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| Fixed Assets: |
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| Equipment & leasehold improvements |
13,287,885 |
13,089,655 |
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| Less accumulated depreciation |
(11,160,563) |
(11,026,278) |
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| Net Fixed Assets |
2,127,322 |
2,063,377 |
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| Other assets |
256,213 |
237,174 |
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| Total Assets |
$ 13,014,959 |
$ 13,800,852 |
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| LIABILITIES AND SHAREHOLDERS' EQUITY |
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| Current Liabilities: |
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| Accounts payable |
$600,257 |
$961,844 |
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| Accrued expenses |
741,703 |
1,321,856 |
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| Total Current Liabilities |
1,341,960 |
2,283,700 |
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| Deferred tax liabilities, long-term |
482,523 |
482,523 |
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| Total Liabilities |
1,824,483 |
2,766,223 |
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| Shareholders' Equity: |
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| Preferred-stock, $0.005 par value, 872,521 shares authorized, |
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| no shares issued or outstanding |
-- |
-- |
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| Common stock, $0.005 par value; 50,000,000 shares authorized |
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| 5,903,552 shares issued in 2012 and 2011 |
29,518 |
29,518 |
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| Additional paid-in capital |
28,209,615 |
28,095,946 |
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| Accumulated deficit |
(6,966,868) |
(7,009,046) |
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| Less - Treasury stock, at cost, 668,130 shares in 2012 and 2011 |
(10,081,789) |
(10,081,789) |
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| Total Shareholders' Equity |
11,190,476 |
11,034,629 |
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| Total Liabilities and Shareholders' Equity |
$13,014,959 |
$13,800,852 |
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SOURCE Psychemedics Corporation
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