ACTON, Mass., Nov. 3 /PRNewswire-FirstCall/ -- Psychemedics Corporation today announced third quarter financial results for the period ended September 30, 2009. The Company also announced a quarterly dividend of $0.12 per share payable to shareholders of record as of December 3, 2009 to be paid on December 17, 2009. This will be the Company’s 53rd consecutive quarterly dividend.
The Company’s third quarter revenue was $4.7 million, down 25% as compared to $6.2 million in the third quarter of 2008. Net income was $0.8 million or $0.15 per diluted share, down 12% from $0.9 million or $0.17 per share for the same period in 2008. The Company’s revenue for the nine months ended September 30, 2009 was $12.7 million, down 30% as compared to $18.1 million for the comparable period of 2008. Net income for the nine months ended September 30, 2009 was $1.0 million or $0.19 per diluted share, a decrease of 65% from the comparable period last year during which the Company earned $2.8 million or $0.53 per diluted share.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said, “Stating the obvious: these are difficult times. However, despite a 25% decline in revenue during the third quarter of 2009, we were nearly able to match last year’s third quarter earnings per share of $0.17. Our EPS was $0.15 in the current quarter. We were able to achieve this level of profitability because we took significant cost reduction/control actions early, and did them logically and methodically. These included reductions in force, changes in certain benefits such as elimination of bonuses, stock grants, and 401k match. We also increased required employee healthcare contributions and implemented salary cuts for all personnel. These actions substantially aided our ability to achieve a significant improvement in both gross and operating margins when compared to the second quarter of 2009.”
Kubacki concluded, “We are pleased that Psychemedics continues to demonstrate its ability to successfully weather the downturn. Further, some good news is that the year/year rate of decline in the third quarter revenue was less than in the past 2 quarters. We feel confident about our future prospects. It is important to also note that the Company continues to have a strong balance sheet with no long-term debt and approximately $4.6 million of cash and investments. Our cash flow from operations was $0.5 million for the first three quarters of 2009. For all these reasons, our board is declaring our 53rd consecutive quarterly dividend which demonstrates our continued commitment to maximizing shareholder returns as we move forward.”
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.
Financial Summary:
The Psychemedics web site is www.drugtestwithhair.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 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.
CONTACT: Raymond Ruddy, Vice President and Controller of Psychemedics
Corporation, +1-978-206-8220, Raymondr@psychemedics.com
Web site: http://www.drugtestwithhair.com/
