Psychemedics Corporation Announces 2010 Year End Profits
DECLARES QUARTERLY DIVIDEND
ACTON, Mass., March 2, 2011 /PRNewswire/ -- Psychemedics Corporation (Nasdaq: PMD) today announced fourth quarter and year-end financial results for the period ended December 31, 2010. The Company also announced a quarterly dividend of $0.12 per share payable to shareholders of record as of March 11, 2011 to be paid on March 25, 2011. This will be the Company's 58th consecutive quarterly dividend.
The Company's revenue for the year ended December 31, 2010 was $20.1 million, an increase of 19% as compared to $17.0 million for 2009. Net income for the year ended December 31, 2010 was $2.6 million or $0.50 per share, an increase of 71% from 2009 during which the Company earned $1.5 million or $0.29 per share. Revenue for the fourth quarter was $5.1 million, an increase of 20% as compared to $4.3 million the fourth quarter of 2009. Net income for the quarter was $417 thousand or $0.08 per share, down 24% from $546 thousand or $0.10 per share for the same period of 2009.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said, "In 2010, sales and profits were back on the growth track. While we are very proud that we have been profitable every year since 1993, including the severe 2009 recession, our focus continues to be sales and earnings growth. While some of our growth in 2010 can be attributed to the economic recovery, the primary increase has come from new customers and introducing new programs to existing customers."
Kubacki continued: "Beyond the strong financial performance of 2010, the Company has invested in its future with the addition of two new officers in the Company (Corporate VP – Sales & Marketing and VP – Controller) as well as an enhanced sales team. Despite the tough environment, we continued to bring on new clients, including expanding internationally, with sales/marketing agreements made for the UK and Europe, which will set the foundation for future revenue growth. We have also improved our internet presence with a complete overhaul of our website and continue to expand our e-commerce platform."
Kubacki concluded, "The Company's balance sheet remains strong with approximately $5.7 million in cash and short-term investments 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 fifty-eighth consecutive quarterly dividend."
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, 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 network, 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 | ||||
December 31, | December 31, | |||
2010 | 2009 | |||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $3,720,488 | $4,840,367 | ||
Short-term investments | 2,018,452 | 1,006,436 | ||
Accounts receivable, net of allowance for doubtful accounts | 3,905,821 | 3,016,084 | ||
of $119,295 in 2010 and $134,282 in 2009 | ||||
Prepaid expenses and other current assets | 700,822 | 663,433 | ||
Deferred tax assets | 239,831 | 253,221 | ||
Total Current Assets | 10,585,414 | 9,779,541 | ||
Fixed Assets: | ||||
Equipment & leasehold improvements | 11,730,866 | 10,912,906 | ||
Less accumulated depreciation | (10,663,996) | (10,381,599) | ||
Net Fixed Assets | 1,066,870 | 531,307 | ||
Deferred tax assets, long term | - | 204,764 | ||
Other assets | 114,037 | 86,814 | ||
Total Assets | $ 11,766,321 | $ 10,602,426 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities: | ||||
Accounts payable | $699,833 | $180,784 | ||
Accrued expenses | 1,302,370 | 1,090,898 | ||
Deferred revenue | 16,605 | 36,360 | ||
Total Current Liabilities | 2,018,808 | 1,308,042 | ||
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 | 29,387 | 29,309 | ||
5,877,358 shares issued in 2010 and 5,861,872 shares issued in 2009 | ||||
Paid-in capital | 27,764,992 | 27,419,359 | ||
Accumulated deficit | (7,987,468) | (8,100,920) | ||
Less - Treasury stock, at cost, 665,345 shares in 2010 and 664,523 shares in 2009 | (10,059,398) | (10,053,364) | ||
Total Shareholders' Equity | 9,747,513 | 9,294,384 | ||
Total Liabilities and Shareholders' Equity | $11,766,321 | $10,602,426 | ||
Psychemedics Corporation Balance Sheets Unaudited | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | December 31, | ||||||||
2010 | 2009 | 2010 | 2009 | ||||||
Revenues | $5,116,237 | $4,271,340 | $20,108,862 | $16,954,994 | |||||
Cost of revenues | 2,034,136 | 1,749,276 | 8,067,229 | 7,345,016 | |||||
Gross profit | 3,082,101 | 2,522,064 | 12,041,633 | 9,609,978 | |||||
General & administrative | 1,435,803 | 812,395 | 4,195,998 | 3,596,774 | |||||
Marketing & selling | 851,547 | 635,939 | 2,949,739 | 2,961,477 | |||||
Research & development | 116,988 | 113,470 | 481,433 | 467,435 | |||||
Total operating expenses | 2,404,338 | 1,561,804 | 7,627,170 | 7,025,686 | |||||
Operating income | 677,763 | 960,260 | 4,414,463 | 2,584,292 | |||||
Interest income | 3,669 | 11,154 | 23,091 | 45,320 | |||||
Net income before provision for income taxes | 681,432 | 971,414 | 4,437,554 | 2,629,612 | |||||
Provision for income taxes | 264,443 | 425,331 | 1,823,834 | 1,102,317 | |||||
Net income | $416,989 | $546,083 | $2,613,720 | $1,527,295 | |||||
Basic net income per share | $0.08 | $0.11 | $0.50 | $0.29 | |||||
Diluted net income per share | $0.08 | $0.10 | $0.50 | $0.29 | |||||
Dividends declared per share | $0.12 | $0.12 | $0.48 | $0.53 | |||||
Weighted average common shares outstanding, basic | 5,212,479 | 5,197,232 | 5,207,244 | 5,193,329 | |||||
Weighted average common shares outstanding, diluted | 5,235,800 | 5,204,611 | 5,226,454 | 5,204,767 | |||||
SOURCE Psychemedics Corporation
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