U.S. markets closed

Psychemedics Corporation (PMD)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
Add to watchlist
4.2400-0.0600 (-1.40%)
At close: 4:00PM EST
Full screen
Trade prices are not sourced from all markets
Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies
Chart Events
Bullishpattern detected
Commodity Channel Index

Commodity Channel Index

Previous Close4.3000
Open4.2900
Bid4.2400 x 900
Ask6.0700 x 1000
Day's Range4.2340 - 4.3282
52 Week Range3.5800 - 10.6900
Volume6,950
Avg. Volume23,013
Market Cap23.432M
Beta (5Y Monthly)0.80
PE Ratio (TTM)N/A
EPS (TTM)-0.6970
Earnings DateNov 09, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateFeb 20, 2020
1y Target Est32.00
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
Fair Value
XX.XX
Overvalued
-15% Est. Return
Research that delivers an independent perspective, consistent methodology and actionable insight
Related Research
View more
  • Psychemedics Announces Third Quarter Results
    GlobeNewswire

    Psychemedics Announces Third Quarter Results

    ACTON, Mass., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Psychemedics Corporation (NASDAQ:PMD) today announced third quarter financial results for the period ended September 30, 2020. The Company’s revenue for the quarter ended September 30, 2020 was $5.2 million versus $9.9 million for the quarter ended September 30, 2019, a decrease of 47%. Net loss for the quarter ended September 30, 2020 was $1.1 million or ($0.20) per diluted share, versus net income of $0.7 million or $0.12 per diluted share, for the comparable period last year. The Company’s revenue for the nine months ended September 30, 2020 was $16.0 million versus $29.0 million for the comparable period in 2019, a decrease of 45%. Net loss for the nine months ended September 30, 2020 was $3.3 million or ($0.60) per diluted share, versus net income of $2.1 million or $0.37 per diluted share, for the comparable period last year.Raymond C. Kubacki, Chairman and Chief Executive Officer, stated:"We saw a significant improvement in our business in the third quarter versus the second quarter. We are still not at our pre-COVID-19 (Coronavirus pandemic) levels; however, each month in the quarter showed an increase in testing volumes over the previous month. Revenue for the quarter increased 56% from the second quarter of 2020. Pre-tax results for the quarter improved by $1.9 million, or 57%, from the second quarter of 2020.“While COVID-19 has continued to affect the Company’s sales volumes, it has not impacted the Company’s ability to perform testing. We have continued with safety measures to ensure the safety of our employees as well as maintaining business continuity.“COVID-19 impacted both our domestic and international revenues. Domestic revenues declined 30% compared to the third quarter of 2019. Comparing the current quarter to the second quarter of 2020, domestic sales increased 56%. The manufacturing and transportation sectors showed especially strong improvement. While hurricanes in the Gulf had a negative impact on our Oil & Gas business, these customers still represent a strong anchor to windward for us. International revenues declined 93% compared to the third quarter of 2019 due to the falloff in volume from Brazil. As noted last quarter, the Brazilian government closed all driver license bureaus and extended the license renewal period for all driver licenses, including commercial transportation licenses.“As we previously reported, in May we received loan proceeds of $2.2 million under the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration.  These funds were fully used as of July.  We believe that we qualify for the full $2.2 million to be forgiven according to the SBA guidance. To date, we have not reported this $2.2 million as income. Meanwhile, the full amount of the staffing expenses associated with this PPP loan have been recorded as expenses. Had we been able to record the $2.2 million related to PPP as income, our year to date loss of $3.3 million ($0.60 diluted EPS) would have been $0.8 million ($0.15 diluted EPS); and our loss for the third quarter of $1.1 million ($0.20 diluted EPS) would have been $0.3 million ($0.07 diluted EPS). As the PPP funds were fully used in July, the Company implemented several cost savings measures in August and September, including staff reductions, salary cuts and suspension of the Company’s 401(k) match.   “We believe these reported results do not reflect the real underlying strength of our company. We look for continuing improvement as the country continues to open up. Companies and our clients continue to give us feedback that they need to be even more vigilant than ever to try to keep drug abusers out of the workplace given the long shut-down of the country. Therefore, we believe we are well positioned, especially in our domestic business, as the economy recovers.“The Company had approximately $5.5 million of working capital, including $1.8 million of cash, as of September 30, 2020. This compares to $6.5 million of working capital and $3.7 million of cash as of June 30, 2020. The Company expects to receive income tax refunds of $0.4 million in the fourth quarter of 2020 and $1.3 million in the first half of 2021.“The Company paid 94 consecutive dividends (23½ years) through the first quarter of 2020, even during the financial crisis in 2008. However, as a result of the current pandemic, the dividend was suspended following the first quarter and will remain suspended at this time. We have consistently been committed to paying a dividend and it took a pandemic for us to break our long history of consecutive quarterly dividend payments. We evaluate the dividend each quarter and will continue to do so as we move forward.”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.comNeil Lerner, Vice President of Finance Neill@psychemedics.comCautionary 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, 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, the continued operation of our testing facilities and loan forgiveness under the PPP program) 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, compliance by the Company with repayment forgiveness requirements under the PPP, 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 the 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. Psychemedics Corporation Consolidated Statements of Income/(Loss) (in thousands, except per share amounts) (UNAUDITED)    Three Months Ended Nine Months Ended  September 30, September 30,   2020   2019  2020   2019                   Revenues$5,174  $9,852 $16,025  $28,963 Cost of revenues 4,041   5,470  12,416   16,004          Gross profit 1,133   4,382  3,609   12,959                   Operating Expenses:        General & administrative 1,341   1,417  4,727   4,687 Marketing & selling 896   1,238  2,858   3,455 Research & development 305   393  981   1,213          Total Operating Expenses 2,542   3,048  8,566   9,355          Operating income (loss) (1,409)  1,334  (4,957)  3,604 Other income (expense), net (17)  6  (129)  54          Income (loss) before provision for (benefit from) income taxes (1,426)  1,340  (5,086)  3,658          Provision for (benefit from) income taxes (319)  663  (1,770)  1,586          Net income (loss)$(1,107) $677 $(3,316) $2,072          Diluted net income (loss) per share$(0.20) $0.12 $(0.60) $0.37          Dividends declared per share$-  $0.18 $0.18  $0.54          Psychemedics Corporation Consolidated Balance Sheets (in thousands, except par value) (UNAUDITED)    September 30, December 31,   2020   2019       ASSETS    Current Assets:    Cash$1,809  $7,283  Accounts receivable, net of allowance for doubtful accounts    of $40 in 2020 and $45 in 2019 3,890   3,780  Prepaid expenses and other current assets 1,299   1,788  Income tax receivable 1,833                  --       Total Current Assets 8,831   12,851       Fixed assets, net of accumulated amortization and depreciation    of $16,257 in 2020 and $16,197 in 2019 9,746   10,862  Other assets 885   943  Deferred tax asset 10                  --  Operating lease right-of-use assets 4,508   2,875       Total Assets$23,980  $27,531       LIABILITIES AND SHAREHOLDERS' EQUITY         Current Liabilities:    Accounts payable$416  $617  Accrued expenses 1,357   3,577  Current portion of long-term debt 685   678  Current portion of operating lease liabilities 884   963       Total Current Liabilities 3,342   5,835       Long-term debt 3,617   1,951  Long-term deferred tax liabilities \--   550  Long-term portion of operating lease liabilities 4,079   2,375  Total Liabilities 11,038   10,711       Shareholders' Equity:    Preferred stock, $0.005 par value, 873 shares authorized,    no shares issued or outstanding                --                  --  Common stock, $0.005 par value; 50,000 shares authorized    Shares issued and outstanding: 6,195 in 2020 and 6,185 in 2019 31   31  Additional paid-in capital 32,690   32,249  Accumulated deficit (8,063)  (3,754) Less - Treasury stock, at cost, 668 shares (10,082)  (10,082) Accumulated other comprehensive loss (1,634)  (1,624)      Total Shareholders' Equity 12,942   16,820       Total Liabilities and Shareholders' Equity$23,980  $27,531

  • GlobeNewswire

    Psychemedics Announces Second Quarter Results

    ACTON, Mass., Aug. 12, 2020 (GLOBE NEWSWIRE) -- Psychemedics Corporation (NASDAQ:PMD) today announced second quarter financial results for the period ended June 30, 2020.  The Company’s revenue for the quarter ended June 30, 2020 was $3.3 million versus $9.3 million for the quarter ended June 30, 2019, a decrease of 64%.  Net loss for the quarter ended June 30, 2020 was $2.1 million or ($0.37) per diluted share, versus net income of $0.8 million or $0.14 per diluted share, for the comparable period last year. The Company’s revenue for the six months ended June 30, 2020 was $10.9 million versus $19.1 million for the comparable period in 2019, a decrease of 43%.  Net loss for the six months ended June 30, 2020 was $2.2 million or ($0.40) per diluted share, versus net income of $1.4 million or $0.25 per diluted share, for the comparable period last year.Raymond C. Kubacki, Chairman and Chief Executive Officer, stated:"2Q 2020 is the quarter most companies would like to forget --- and get behind them. We certainly are happy to do so.“While the impact from the Coronavirus pandemic (“COVID-19”) affected the Company’s sales volumes, it did not impact the Company’s ability to perform testing. The Company has had no interruptions to laboratory operations. In response to COVID-19, there are several safety measures the Company implemented to ensure the safety of our employees as well as maintaining our staff and business continuity. One of these measures was to split personnel into two-week shifts, with some personnel paid to stay home to minimize and mitigate any disruption. As a result, we incurred more personnel expenses than we would have otherwise, based on the volume.“2nd Quarter results were, however, negatively impacted by three factors: 1. COVID-19 impacted both our domestic and international revenues. Domestic revenues declined 54%, with a basic shutdown of the economy. However, we saw significant monthly improvement during the quarter. June’s average volume increased 79% over the low in April.  In addition, we were fortunate to be serving major essential and safety- sensitive industries such as Trucking and Oil & Gas, which acted somewhat as anchors to windward, declining less than other market segments. International revenues declined 92% compared to 2Q 2019 due to the falloff in volume from Brazil. Because of COVID-19, the Brazilian government closed all driver license bureaus and extended the license renewal period for all driver licenses, including commercial transportation licenses. 2. As we reported in our Q1 release, we received in May loan proceeds of $2.2 million under the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration. As a result, we were able to retain staff levels and use our extra staffing for protection against any impact of COVID-19 on our lab operations. We believe that we qualify for $1.7 million of that loan to be forgiven in Q2 according to the SBA formulas (with the remainder to be forgiven in Q3). If we used one of accounting’s basic principles, matching revenues and expenses, we would have taken the $1.7 million into income in Q2.  However, the approval process will take several months.  So, while we had the additional staffing expenses, we did not take the loan forgiveness into income, thereby precluding us from matching revenues and expenses. Therefore, we anticipate being able to take the entire PPP $2.2 million into income in the second half of this year. Had we been able to record the PPP, our reported loss of $0.37 cents per share would have been reduced to $0.06 per share for the quarter.   3. Our G&A expenses showed a substantial increase in the quarter due primarily to a significant increase in legal expenses.  This was due to two unusual factors: a) last year’s 2Q had a credit for some legal expenses due to an insurance reimbursement and b) this year’s 2Q included a significant amount of legal expenses related to discussions we had regarding potential strategic transactions.  As a result of being approached by third parties, our Board of Directors authorized the Company to explore strategic alternatives to enhance shareholder value.  As a result of this process, during the quarter, the Company incurred increased legal costs.  The Company does not intend to comment further or update the market with any further information on the process unless and until the Board of Directors has approved a specific action.  There can be no assurance that this process will result in any definitive agreement, any specific action or change in current strategy.“Had we not had these unusual legal expenses, along with the PPP inclusion in income, our earnings for Q2 would have been almost breakeven.  As such, we believe these reported results do not reflect the real underlying strength of our company. We see from previous traumatic experiences in our country that drug use increases during times of intense stress --- and this lockdown surely qualifies in the extreme. We know companies and our clients tell us that they will be more determined than ever to keep drug abusers out of the workplace. Therefore, we believe we are well positioned, especially in our domestic business, as the country opens up and the economy recovers.“The Company had approximately $6.5 million of working capital, including $3.7 million of cash, as of June 30, 2020. “The Company has paid 94 consecutive dividends (23 ½ years), even during the financial crisis in 2008.   However, as a result of the current pandemic, the dividend was suspended following the first quarter and will remain suspended at this time. We have consistently been committed to paying a dividend and it took a pandemic for us to break our long history of consecutive quarterly dividend payments.  We evaluate the dividend each quarter and will continue to do so as we move forward.”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.comNeil Lerner, Vice President of Finance Neill@psychemedics.comCautionary 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, profitability, pricing, new accounts, customer base, market share, test volume, 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, the continued operation of our testing facilities and loan forgiveness under the PPP program) 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, compliance by the Company with repayment forgiveness requirements under the PPP, 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 the our business generally, plus cash flows, available surplus,  capital expenditure reserves required, debt service obligations, regulatory requirements 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.Psychemedics Corporation Consolidated Statements of Income/(Loss) (in thousands, except per share amounts) (UNAUDITED) Three Months Ended Six Months Ended  June 30, June 30,  2020 2019 2020 2019                   Revenues$3,314  $9,289 $10,851  $19,111 Cost of revenues 3,566   5,120  8,375   10,534          Gross profit (loss) (252)  4,169  2,476   8,577                   Operating Expenses:        General & administrative 1,853   1,355  3,386   3,270 Marketing & selling 856   1,088  1,962   2,217 Research & development 345   400  676   820          Total Operating Expenses 3,054   2,843  6,024   6,307          Operating income (loss) (3,306)  1,326  (3,548)  2,270 Other income (expense), net (39)  22  (112)  48          Income (loss) before provision for (benefit from) income taxes (3,345)  1,348  (3,660)  2,318          Provision for (benefit from) income taxes (1,295)  580  (1,451)  923          Net income (loss)$(2,050) $768 $(2,209) $1,395          Diluted net income (loss) per share$(0.37) $0.14 $(0.40) $0.25          Dividends declared per share$-  $0.18 $0.18  $0.36          Psychemedics Corporation  Consolidated Balance Sheets  (in thousands, except par value) (UNAUDITED) June 30, December 31,  2020  2019      ASSETS    Current Assets:    Cash$3,672  $7,283  Accounts receivable, net of allowance for doubtful accounts    of $28 in 2020 and $45 in 2019 2,560   3,780  Prepaid expenses and other current assets 1,496   1,788  Income tax receivable 2,026   \--       Total Current Assets 9,754   12,851       Fixed assets, net of accumulated amortization and depreciation    of $15,565 in 2020 and $16,197 in 2019 10,374   10,862  Other assets 920   943  Operating lease right-of-use assets 4,728   2,875       Total Assets$25,776  $27,531       LIABILITIES AND SHAREHOLDERS' EQUITY         Current Liabilities:    Accounts payable$61  $617  Accrued expenses 1,649   3,577  Current portion of long-term debt 683   678  Current portion of operating lease liabilities 890   963       Total Current Liabilities 3,283   5,835       Long-term debt 3,789   1,951  Long-term deferred tax liabilities 476   550  Long-term portion of operating lease liabilities 4,304   2,375  Total Liabilities 11,852   10,711       Shareholders' Equity:    Preferred stock, $0.005 par value, 873 shares authorized,    no shares issued or outstanding \--   \--  Common stock, $0.005 par value; 50,000 shares authorized    Shares issued and outstanding: 6,195 in 2020 and 6,185 in 2019 31   31  Additional paid-in capital 32,564   32,249  Accumulated deficit (6,956)  (3,754) Less - Treasury stock, at cost, 668 shares (10,082)  (10,082) Accumulated other comprehensive loss (1,633)  (1,624)      Total Shareholders' Equity 13,924   16,820       Total Liabilities and Shareholders' Equity$25,776  $27,531

  • Returns On Capital Tell Us A Lot About Psychemedics (NASDAQ:PMD)
    Simply Wall St.

    Returns On Capital Tell Us A Lot About Psychemedics (NASDAQ:PMD)

    If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop...