- Oops!Something went wrong.Please try again later.
ACTON, Mass., Aug. 10, 2021 (GLOBE NEWSWIRE) -- Psychemedics Corporation (NASDAQ:PMD), the world’s largest provider of hair testing for drugs of abuse, today announced financial results for the second quarter ended June 30, 2021.
The Company’s revenue for the quarter ended June 30, 2021, was $6.1 million versus $3.3 million for the quarter ended June 30, 2020, an increase of 85%. Net income for the quarter ended June 30, 2021, was $0.1 million or $0.02 per diluted share, versus net loss of $2.1 million or ($0.37) per diluted share, for the comparable period last year, an increase of $0.39 per diluted share. The Company’s revenue for the six months ended June 30, 2021, was $11.8 million versus $10.9 million for the comparable period in 2020, an increase of 8%. Net income for the six months ended June 30, 2021, was $0.2 million or $0.04 per diluted share, versus net loss of $2.2 million or ($0.40) per diluted share, for the comparable period last year.
Raymond C. Kubacki, Chairman and Chief Executive Officer, stated:
“We continued to show improvement in our total revenues from our base business including continued quarter-to-quarter growth since the beginning of the COVID-19 pandemic. The driving force in this revenue performance is the growth in our domestic business, largely attributable to our Oil & Gas, Manufacturing and Transportation market segments. We do recognize that we are comparing to last year’s second quarter, which was the first quarter to feel the full impact of the COVID-19 shutdown. Nonetheless, the 80% increase in our domestic revenues was very solid. International revenues, primarily Brazil, increased 153% but on a much smaller base. Brazil volumes continue to be unpredictable, and our focus is still on our domestic business as we mentioned in our last press release.
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, receivables collection dates, dividends, future business, growth opportunities, profitability, pricing, new accounts, customer base, market share, test volume, customer anticipated testing volume following the COVID-19 pandemic, sales and marketing strategies, market demand for drug testing services in Brazil, U.S. and foreign drug testing laws and regulations, including, without limitation, Brazilian professional driver drug testing requirements, required investments in plant, equipment and people and new test development, the effect of COVID-19 on our business, including its effects on our business, and profitability, and on the well-being and availability of our employees and the continued operation of our testing facilities) 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 severity of the COVID-19 pandemic, and its impact on the Company’s markets, including its impact on the Company’s customers, suppliers and employees, as well as its risk on the United States and worldwide economies, the timing, scope and effectiveness of further governmental, regulatory, fiscal monetary and public health responses to the COVID-19 pandemic, Internal Revenue Service refund processing timeframes, changes in U.S. and foreign government regulations, including but not limited to FDA regulations, changes in Brazilian laws and regulations and proposed laws and regulations and the implementation of such laws and regulations, currency risks, R&D spending, competition (including, without limitation, competition from other companies pursuing the same growth opportunities), the Company’s ability to maintain its reputation and brand image, the ability of the Company to achieve its business plans, cost controls, leveraging of its global operating platform, risks of information technology system failures and data security breaches, the uncertain global economy, the Company’s ability to attract, develop and retain executives and other qualified employees and independent contractors, including distributors, the Company’s ability to obtain and protect intellectual property rights, litigation risks, general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission. With respect to the continued payment of cash dividends, factors include, but are not limited to, all of the factors listed above with respect to the impact of the COVID-19 pandemic on our business generally, plus cash flows, available surplus, capital expenditure reserves required, debt service obligations, regulatory requirements, requirements under our bank loan agreements and other factors that the Board of Directors of the Company may take into account. 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.
The Psychemedics Corporation web site is www.psychemedics.com
Vice President, Controller
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
Six Months Ended
Cost of revenues
Gross profit (loss)
General & administrative
Marketing & selling
Research & development
Total Operating Expenses
Operating income (loss)
Income (loss) before provision for (benefit from) income taxes
Provision for (benefit from) income taxes
Net income (loss)
Diluted net income (loss) per share
Dividends declared per share
Consolidated Balance Sheets
(in thousands, except par value)
Accounts receivable, net of allowance for doubtful accounts
Prepaid expenses and other current assets
Income tax receivable
Total Current Assets
Fixed assets, net of accumulated amortization and depreciation
Operating lease right-of-use assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt
Current portion of operating lease liabilities
Total Current Liabilities
Deferred tax liabilities, long-term
Long-term portion of operating lease liabilities
Common stock, $0.005 par value; 50,000 shares authorized 6,205 shares issued at June 30, 2021, and December 31, 2020, respectively, and 5,541 shares outstanding and 5,537 shares outstanding at June 30, 2021, and December 31, 2020, respectively
Additional paid-in capital
Less - Treasury stock, at cost, 668 shares
Accumulated other comprehensive loss
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity