ACTON, Mass., July 26, 2016 /PRNewswire/ -- Psychemedics Corporation (NASDAQ: PMD) today announced second quarter financial results for the period ended June 30, 2016. The Company also announced a quarterly dividend of $0.15 per share payable to shareholders of record as of August 5, 2016 to be paid on August 15, 2016. This will be the Company's 80th consecutive quarterly dividend.
The Company's revenue for the quarter ended June 30, 2016 was $9.7 million versus $7.0 million for the quarter ended June 30, 2015, an increase of 39%. Net income for the quarter ended June 30, 2016 was $1.6 million or $0.30 per diluted share, versus $252 thousand or $0.05 per diluted share, for the comparable period last year, an increase of 547%. The Company's revenue for the six months ended June 30, 2016 was $16.4 million versus $13.8 million for the six months ended June 30, 2015, an increase of 19%. Net income for the six months ended June 30, 2016 was $1.6 million or $0.30 per diluted share, versus $530 thousand or $0.10 per diluted share, for the comparable period last year, an increase of 204%.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said,
"We are very pleased to report the highest revenue and earnings for any quarter in the Company's history. The growth has been driven by our international business, specifically an opportunity in Brazil as noted below. We also reached another milestone this quarter with 20 years of consecutive quarterly dividends.
"We have noted since 2013 a significant opportunity in Brazil, and are very pleased to begin to see the results of our efforts and the efforts of our exclusive independent Brazilian distributor, Psychemedics Brasil. This opportunity is to compete for the testing of drugs of abuse required for professional drivers in Brazil. As of March 2016, testing for this opportunity had begun and is being phased in as some states have required additional time to implement the law. Over the last two years, we have made significant investments in equipment, people and an additional facility to handle this business. In the recent past, these investments have impacted earnings and required the Company to take on long term debt. We are pleased about the very positive impact this opportunity had on the revenue and earnings this quarter.
"The Company's balance sheet remains strong with approximately $2.3 million in cash and $4.7 million of working capital. The total equipment financing outstanding was $5.7 million as of June 30, 2016, compared to a total original amount borrowed of $8.7 million. 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 a quarterly dividend of $0.15 per share."
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.
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, cash flows, dividends, future business, growth opportunities (including an opportunity in Brazil), new accounts, customer base, market share, test volume, sales and marketing strategies, U.S. and foreign drug testing laws and regulations including effective dates thereof, required investments in plant, equipment and people and new test development) 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, Brazilian laws and regulations and projected implementation dates, proposed laws and regulations, R&D spending, competition (including, without limitation, competition from other companies pursuing the same growth opportunities) and general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only of the Company's expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions, or circumstances on which any such statement is based.
Condensed Statements of Income and Comprehensive Income
Three Months Ended
Six Months Ended
Cost of revenues
General & administrative
Marketing & selling
Research & development
Total Operating Expenses
Interest expense, net
( 35,492 )
( 30,877 )
( 70,133 )
( 64,204 )
Net income before provision for income taxes
Provision for income taxes
Net income and comprehensive income
Basic net income per share
Diluted net income per share
Dividends declared per share
Weighted average common shares outstanding, basic
Weighted average common shares outstanding, diluted
Cash and cash equivalents
Accounts receivable, net of allowance for doubtful accounts
of $41,373 in 2016 and $58,684 in 2015
Prepaid expenses and other current assets
Income tax receivable
Deferred tax assets
Total Current Assets
Fixed Assets, net of accumulated amortization and depreciation
of $7,695,144 in 2016 and $6,642,501 in 2015
LIABILITIES AND SHAREHOLDERS' EQUITY
Accrued income taxes
Current portion of long-term debt
Total Current Liabilities
Deferred tax liabilities, long-term
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
6,127,850 shares issued in 2016 and 6,090,671 shares issued in 2015