Psychemedics Corporation Announces First Quarter Profits
Declares 59th Consecutive Quarterly Dividend
ACTON, Mass., May 5, 2011 /PRNewswire/ -- Psychemedics Corporation (NASDAQ: PMD) today announced first quarter financial results for the period ended March 31, 2011. The Company also announced a quarterly dividend of $0.12 per share payable to shareholders of record as of May 16, 2011 to be paid on May 27, 2011. This will be the Company's 59th consecutive quarterly dividend.
The Company's revenue for the quarter ended March 31, 2011 was $6.0 million versus $4.5 million for the quarter ended March 31, 2010, an increase of 34%. Net income for the quarter ended March 31, 2011 was $858 thousand or $0.16 per diluted share, versus $506 thousand or $0.10 per diluted share, for the comparable period last year, an increase of 60%.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said, "We are very pleased to report significant growth in revenues and profits in the first quarter over last year's first quarter results. The revenue was the highest of any first quarter in the Company's history. New business was a significant factor, as well as increased volume from existing customers. Our margins continued strong as we achieved a 25% pre-tax profit margin in the first quarter of 2011 versus 19% for the comparable period in 2010. We remain confident about our future prospects."
Kubacki concluded, "We continue to have a strong balance sheet with more than $4.7 million in cash, cash equivalents and short-term investments 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, we are pleased to declare our 59th consecutive quarterly dividend. The quarterly dividend will be $0.12 per share."
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) | ||||
Three Months Ended | ||||
March 31, | ||||
2011 | 2010 | |||
Revenues | $5,999,739 | $4,464,243 | ||
Cost of revenues | 2,383,026 | 1,910,654 | ||
Gross profit | 3,616,713 | 2,553,589 | ||
Operating Expenses: | ||||
General & administrative | 970,064 | 971,614 | ||
Marketing & selling | 1,014,117 | 623,631 | ||
Research & development | 142,451 | 122,481 | ||
Total Operating Expenses | 2,126,632 | 1,717,726 | ||
Operating income | 1,490,081 | 835,863 | ||
Interest income | 2,205 | 8,176 | ||
Net income before provision for income taxes | 1,492,286 | 844,039 | ||
Provision for income taxes | 633,798 | 337,615 | ||
Net income | $858,488 | $506,424 | ||
Basic net income per share | $0.16 | $0.10 | ||
Diluted net income per share | $0.16 | $0.10 | ||
Dividends declared per share | $0.12 | $0.12 | ||
Weighted average common shares outstanding, basic | 5,212,013 | 5,197,349 | ||
Weighted average common shares outstanding, diluted | 5,242,518 | 5,206,584 | ||
PSYCHEMEDICS CORPORATION BALANCE SHEETS (UNAUDITED) | ||||
March 31, | December 31, | |||
2011 | 2010 | |||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $2,719,179 | $3,720,488 | ||
Short-term investments | 2,019,350 | 2,018,452 | ||
Accounts receivable, net of allowance for doubtful accounts | 4,495,666 | 3,905,821 | ||
of $134,694 in 2011 and $119,295 in 2010 | ||||
Prepaid expenses and other current assets | 922,306 | 700,822 | ||
Deferred tax assets | 277,846 | 239,831 | ||
Total Current Assets | 10,434,347 | 10,585,414 | ||
Fixed Assets: | ||||
Equipment & leasehold improvements | 11,959,096 | 11,730,866 | ||
Less accumulated depreciation | (10,747,076) | (10,663,996) | ||
Net Fixed Assets | 1,212,020 | 1,066,870 | ||
Other Assets | 169,084 | 114,037 | ||
Total Assets | $ 11,815,451 | $ 11,766,321 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities: | ||||
Accounts payable | $463,992 | $699,833 | ||
Accrued expenses | 1,262,488 | 1,302,370 | ||
Deferred revenue | 13,372 | 16,605 | ||
Total Current Liabilities | 1,739,852 | 2,018,808 | ||
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 | 29,387 | ||
5,877,358 shares issued in 2011 and 2010 | ||||
Paid-in capital | 27,860,031 | 27,764,992 | ||
Accumulated deficit | (7,754,421) | (7,987,468) | ||
Less - Treasury stock, at cost, 665,345 shares in 2011 and 2010 | (10,059,398) | (10,059,398) | ||
Total Shareholders' Equity | 10,075,599 | 9,747,513 | ||
Total Liabilities and Shareholders' Equity | $11,815,451 | $11,766,321 | ||
SOURCE Psychemedics Corporation
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