UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant To Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 7, 2013
PSYCHEMEDICS CORPORATION
(Exact Name of Registrant As Specified In Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
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1-13738 (Commission File Number)
125 Nagog Park, Acton, Massachusetts 01720 (Address of Principal Executive Offices) (Zip Code)
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58-1701987 (I.R.S. Employer Identification No.)
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(978) 206-8220 (Registrant’s Telephone Number, Including Area Code)
N/A (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 7, 2013, Psychemedics Corporation issued a press release announcing preliminary results for the First Quarter of 2013. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
Limitation on Incorporation by Reference. The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
Cautionary Note Regarding Forward-Looking Statements. Except for historical information contained in the press release attached as an exhibit hereto, the press release contains forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release regarding these forward-looking statements.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
The following exhibits are filed herewith:
99.1 Press Release dated May 7, 2013.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: May 7, 2013 | PSYCHEMEDICS CORPORATION | |
| By: /s/ Neil L. Lerner | ||
| Neil L. Lerner | ||
| Vice President - Finance | ||
Psychemedics Corporation Announces Record First Quarter Revenues
DECLARES 67th CONSECUTIVE QUARTERLY DIVIDEND
ACTON, Mass., May 7, 2013 /PRNewswire/ -- Psychemedics Corporation (NASDAQ: PMD) today announced first quarter financial results for the period ended March 31, 2013. The Company also announced a quarterly dividend of $0.15 per share payable to shareholders of record as of May 17, 2013 to be paid on May 30, 2013. This will be the Company's 67th consecutive quarterly dividend.
(Logo: http://photos.prnewswire.com/prnh/20111107/NE00639LOGO)
The Company's revenue for the quarter ended March 31, 2013 was $6.4 million versus $6.2 million for the quarter ended March 31, 2012, an increase of 3%. Net income for the quarter ended March 31, 2013 was $822 thousand or $0.16 per diluted share, versus $827 thousand or $0.16 per diluted share, for the comparable period last year.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said,
"We are very pleased to report record sales for any first quarter in the Company's history. This is also in comparison to our highest growth quarter last year. Our investment in sales and marketing continues to pay off as our new business growth accounted for the entire gain in the quarter, as well as offsetting the decline in our base business due to the weak hiring/jobs environment.
During the quarter, we also completed the majority of the transition to our new patented screening process. While we are expecting many benefits from this new patented technology, including an increase in capacity, the ability to expedite new tests to market, and reduced operating costs, there was a negative impact on profits for the quarter. However, this negative impact was offset by a one-time insurance reimbursement for legal expenditures (in other income) and a positive tax impact from a 2012 R&D tax credit. Our pre-tax profit margin was still 20%.
"We continue to have a strong balance sheet with more than $2.5 million in cash and cash equivalents as of March 31, 2013 with no long term debt, despite heavy investment in new equipment and software.
"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, the Board has declared a $0.15 dividend for the quarter. This is our 67th consecutive quarterly dividend."
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.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, 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: | Neil Lerner |
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| Vice President of Finance |
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| (978) 206-8220 |
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| Neill@psychemedics.com |
Psychemedics Corporation Statements of Income and Comprehensive Income (UNAUDITED) | |||
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| Three Months Ended | ||
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| March 31, | ||
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| 2013 |
| 2012 |
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Revenues | $6,432,442 |
| $6,243,855 |
Cost of revenues | 2,945,171 |
| 2,578,735 |
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Gross profit | 3,487,271 |
| 3,665,120 |
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Operating Expenses: |
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General & administrative | 993,711 |
| 995,441 |
Marketing & selling | 1,126,658 |
| 1,124,825 |
Research & development | 164,710 |
| 168,048 |
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Total Operating Expenses | 2,285,079 |
| 2,288,314 |
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Operating income | 1,202,192 |
| 1,376,806 |
Other income | 91,413 |
| 510 |
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Net income before provision for income taxes | 1,293,605 |
| 1,377,316 |
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Provision for income taxes | 471,260 |
| 549,825 |
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Net income and comprehensive income | $822,345 |
| $827,491 |
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Basic net income per share | $0.16 |
| $0.16 |
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Diluted net income per share | $0.16 |
| $0.16 |
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Dividends declared per share | $0.15 |
| $0.15 |
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Weighted average common shares outstanding, basic | 5,272,647 |
| 5,235,422 |
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Weighted average common shares outstanding, diluted | 5,292,686 |
| 5,244,042 |
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Psychemedics Corporation Balance Sheets (UNAUDITED) | |||
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| March 31, |
| December 31, |
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| 2013 |
| 2012 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents | $2,512,665 |
| $3,065,785 |
Accounts receivable, net of allowance for doubtful accounts |
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of $123,445 in 2013 and $121,583 in 2012 | 4,871,764 |
| 4,620,768 |
Prepaid expenses and other current assets | 1,009,269 |
| 823,274 |
Income tax receivable | 345,578 |
| 854,212 |
Deferred tax assets | 252,573 |
| 209,877 |
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Total Current Assets | 8,991,849 |
| 9,573,916 |
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Fixed Assets, net of accumulated amortization and depreciation |
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of $4,598,240 in 2013 and $4,395,605 in 2012 | 4,331,392 |
| 4,201,409 |
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Other assets | 384,736 |
| 345,293 |
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Total Assets | $ 13,707,977 |
| $ 14,120,618 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities: |
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Accounts payable | $754,597 |
| $669,789 |
Accrued expenses | 773,605 |
| 1,413,541 |
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Total Current Liabilities | 1,528,202 |
| 2,083,330 |
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Deferred tax liabilities, long-term | 814,619 |
| 814,619 |
Total Liabilities | 2,342,821 |
| 2,897,949 |
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Commitments and Contingencies (Note 7) |
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Shareholders' Equity: |
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Preferred-stock, $0.005 par value, 872,521 shares authorized, |
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no shares issued or outstanding | -- |
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Common stock, $0.005 par value; 50,000,000 shares authorized |
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5,941,715 shares issued in 2013 and 5,940,558 shares issued 2012 | 29,709 |
| 29,703 |
Additional paid-in capital | 28,571,765 |
| 28,460,764 |
Accumulated deficit | (7,154,529) |
| (7,186,009) |
Less - Treasury stock, at cost, 668,130 shares in 2013 and 2012 | (10,081,789) |
| (10,081,789) |
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Total Shareholders' Equity | 11,365,156 |
| 11,222,669 |
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Total Liabilities and Shareholders' Equity | $13,707,977 |
| $14,120,618 |
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