Click here to close now.




















Welcome!

News Feed Item

Psychemedics Corporation Announces 2013 Earnings Up 28% And Record Revenues

DECLARES 70th CONSECUTIVE QUARTERLY DIVIDEND

ACTON, Mass., Feb. 10, 2014 /PRNewswire/ -- Psychemedics Corporation (NASDAQ: PMD) today announced fourth quarter and year-end financial results for the period ended December 31, 2013.  The Company also announced a quarterly dividend of $0.15 per share payable to shareholders of record as of February 21, 2014 to be paid on March 7, 2014.  This will be the Company's 70th consecutive quarterly dividend.

(Logo:  http://photos.prnewswire.com/prnh/20111107/NE00639LOGO)

The Company's revenue for the year ended December 31, 2013 was $26.9 million versus $25.2 million for the twelve months ended December 31, 2012, an increase of 7%. Net income for the twelve months ended December 31, 2013 was $3.8 million or $0.72 per diluted share, versus $3.0 million or $0.57 per diluted share, for the comparable period last year, an increase of 28%.The Company's revenue for the quarter ended December 31, 2013 was $6.5 million versus $5.7 million for the quarter ended December 31, 2012, an increase of 15%.  Net income for the quarter ended December 31, 2013 was $868 thousand or $0.16 per diluted share, versus $273 thousand or $0.05 per diluted share, for the comparable period last year, an increase of 218%.

Raymond C. Kubacki, Chairman and Chief Executive Officer, said,

"2013 was the second consecutive year of record revenues and the Company achieved substantial earnings growth of 28% over 2012.  In addition, the Company expanded its product offering in 2013 by building on the technology advances in 2012 with the launch of a hair test for alcohol which looks back at the same 90 day period as our patented drug test.  The Company also expanded product offerings through its new partnerships in the instant drug and alcohol testing arena. 

"The extraordinary growth in earnings in the fourth quarter compared to 2012 was driven by several factors including an increase in revenues of 15% in 2013, higher than normal expenses in 2012 related to transition costs of new technologies which were implemented in 2012 and did not re-occur in 2013, and a benefit due to a change in the calculation of California income tax. The change in California income tax rate significantly lowered the Company's overall income tax rate.  The total benefit was realized in the fourth quarter of 2013 and had a positive impact of approximately $0.05 per diluted share.  Without this positive tax impact, our EPS would still have been up 18%.

"With regard to new business, in December 2013, the Company noted that the Brazilian Federal Government had announced new guidelines that will require professional drivers in the transportation industry to pass a hair drug test when obtaining or renewing their driver's license.  The first testing is expected to begin on July 1, 2014.  We are excited about competing for the hair testing business in Brazil. Psychemedics has a very strong partner in Psychemedics Brasil, a Brazilian-owned independent distributor who we have worked closely with for over 15 years helping a variety of Brazilian organizations work to achieve a drug free workplace.  We look forward to continuing to work together on this new opportunity to positively impact public safety as it relates to the transportation industry.

"We are very excited about this opportunity and believe the potential volume from this Brazil opportunity could be very substantial.  In order to service that potential volume, we need to make significant investments in plant, equipment and people. These investments must be made in the first half of 2014 to be ready for the July 1 start date.  During this period, we will not have any revenues from this Brazil opportunity to offset these costs. Therefore, we would expect earnings in the first half of 2014 to be unfavorably impacted.   

"The Company's balance sheet remains strong with approximately $4.0 million in cash and cash equivalents and no long-term debt.  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 our quarterly dividend of $0.15 per share. This dividend represents our 70th 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, sales and marketing strategies, foreign drug testing laws and regulations, required investments in plant, equipment and people) 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, competition and general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission.

 

Psychemedics Corporation

Balance Sheets

(UNAUDITED)



Three Months Ended



Twelve Months Ended


December 31,



December 31,


2013


2012



2013


2012



















Revenues

$6,483,916


$5,658,184



$26,870,297


$25,223,534

Cost of revenues

2,832,154


2,892,745



11,476,263


10,971,886










Gross profit

3,651,762


2,765,439



15,394,034


14,251,648



















Operating Expenses:









   General & administrative

1,081,803


1,024,964



4,157,597


3,946,844

   Marketing & selling

1,269,713


1,130,210



4,704,970


4,543,598

   Research & development

267,091


146,487



825,102


825,518










Total Operating Expenses

2,618,607


2,301,661



9,687,669


9,315,960










Operating income

1,033,155


463,778



5,706,365


4,935,688

Other income

280


447



92,273


1,889










Net income before provision for income taxes

1,033,435


464,225



5,798,638


4,937,577










Provision for income taxes

165,496


191,612



1,993,428


1,957,948










Net income and comprehensive income

$867,939


$272,613



$3,805,210


$2,979,629










Basic net income per share

$0.16


$0.05



$0.72


$0.57










Diluted net income per share

$0.16


$0.05



$0.72


$0.57










Dividends declared per share

$0.15


$0.15



$0.60


$0.60










Weighted average common shares outstanding, basic

5,313,766


5,272,428



5,299,060


5,260,320










Weighted average common shares outstanding, diluted

5,342,509


5,291,370



5,315,463


5,272,542










 

Psychemedics Corporation

Statements of Income and Comprehensive Income

(UNAUDITED)



December 31,


December 31,


2013


2012





ASSETS




Current Assets:




Cash and cash equivalents

$3,970,512


$3,065,785

Accounts receivable, net of allowance for doubtful accounts




of $144,921 in 2013 and $121,583 in 2012

4,368,864


4,620,768

Prepaid expenses and other current assets

769,269


823,274

Income tax receivable

554,828


854,212

Deferred tax assets

292,795


209,877





Total Current Assets

9,956,268


9,573,916

Fixed Assets, net of accumulated amortization and depreciation




of $5,175,722 in 2013 and $4,395,605 in 2012

6,050,203


4,201,409

Other assets

543,345


345,293





Total Assets

$ 16,549,816


$ 14,120,618





LIABILITIES AND SHAREHOLDERS' EQUITY








Current Liabilities:




Accounts payable

$510,550


$669,789

Accrued expenses

2,447,920


1,413,541





Total Current Liabilities

2,958,470


2,083,330





Deferred tax liabilities, long-term

1,314,221


814,619

Total Liabilities

4,272,691


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

28,888,712


28,460,764

Accumulated deficit

(6,559,708)


(7,186,009)

Less - Treasury stock, at cost, 668,130 shares in 2013 and 2012

(10,081,789)


(10,081,789)





Total Shareholders' Equity

12,277,125


11,222,669





Total Liabilities and Shareholders' Equity

$16,549,816


$14,120,618





Contact: Neil Lerner
Vice President of Finance
(978) 206-8220
[email protected]

SOURCE Psychemedics Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...