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) August 5, 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 August 5, 2013, Psychemedics Corporation issued a press release announcing preliminary results for the Second 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 August 5, 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: August 5, 2013 | PSYCHEMEDICS CORPORATION |
| By: /s/ Neil Lerner | |
| Neil Lerner | |
| Vice President - Finance |
Psychemedics Corporation Announces Top Revenue Quarter
ACTON, Mass., Aug. 5, 2013 /PRNewswire/ -- Psychemedics Corporation (NASDAQ: PMD) today announced second quarter financial results for the period ended June 30, 2013. The Company also announced a quarterly dividend of $0.15 per share payable to shareholders of record as of August 15, 2013 to be paid on August 28, 2013. This will be the Company's 68th consecutive quarterly dividend.
(Logo: http://photos.prnewswire.com/prnh/20111107/NE00639LOGO )
The Company's revenue for the quarter ended June 30, 2013 was $6.90 million versus $6.86 million for the quarter ended June 30, 2012, an increase of 1%. Net income for the quarter ended June 30, 2013 was $1.06 million or $0.20 per diluted share, versus $1.00 million or $0.19 per diluted share, for the comparable period last year, an increase of 6%. The Company's revenue for the six months ended June 30, 2013 was $13.33 million versus $13.11 million for the six months ended June 30, 2012, an increase of 2%. Net income for the six months ended June 30, 2013 was $1.89 million or $0.36 per diluted share, versus $1.83 million or $0.35 per diluted share, for the comparable period last year, an increase of 3%.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said,
"We are very pleased to report record sales for this past quarter, which exceeds any quarter in the Company's history. Our new business growth is strong, while larger companies in our base business remain more cautious on hiring. In addition, the pre-tax margins were strong at 25%.
"We are also very excited about the launch of our hair alcohol test. Alcohol is the most abused substance in the world, and excessive use poses serious health and safety risks. After years of investing time and research into developing our hair alcohol test, we are proud to add this offering to our existing tests that measure consumption over an extended period of time. (Please see our press release on July 8th, 2013, for further information on this exciting new product.) Last year we announced a new fundamental patent for getting the drugs out of the hair, and FDA clearance of new custom designed assays. We are very proud to continue to demonstrate our technological leadership with this new alcohol hair test.
"We continue to have a strong balance sheet with more than $2.7 million in cash and cash equivalents as of June 30, 2013 with no long term debt, despite heavy investment in new equipment and software over the last two years.
"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 68th 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.
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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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| Six Months Ended | ||||
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| June 30, |
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| June 30, | ||||
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| 2013 |
| 2012 |
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| 2013 |
| 2012 |
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Revenues | $6,898,737 |
| $6,861,720 |
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| $13,331,179 |
| $13,105,575 |
Cost of revenues | 2,819,788 |
| 2,758,334 |
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| 5,764,959 |
| 5,337,069 |
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Gross profit | 4,078,949 |
| 4,103,386 |
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| 7,566,220 |
| 7,768,506 |
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Operating Expenses: |
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General & administrative | 1,006,950 |
| 1,004,548 |
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| 2,000,661 |
| 1,999,989 |
Marketing & selling | 1,150,244 |
| 1,220,794 |
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| 2,276,902 |
| 2,345,619 |
Research & development | 190,036 |
| 213,894 |
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| 354,746 |
| 381,942 |
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Total Operating Expenses | 2,347,230 |
| 2,439,236 |
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| 4,632,309 |
| 4,727,550 |
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Operating income | 1,731,719 |
| 1,664,150 |
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| 2,933,911 |
| 3,040,956 |
Other income | 300 |
| 485 |
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| 91,713 |
| 995 |
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Net income before provision for income taxes | 1,732,019 |
| 1,664,635 |
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| 3,025,624 |
| 3,041,951 |
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Provision for income taxes | 669,093 |
| 663,591 |
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| 1,140,353 |
| 1,213,416 |
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Net income and comprehensive income | $1,062,926 |
| $1,001,044 |
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| $1,885,271 |
| $1,828,535 |
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Basic net income per share | $0.20 |
| $0.19 |
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| $0.36 |
| $0.35 |
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Diluted net income per share | $0.20 |
| $0.19 |
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| $0.36 |
| $0.35 |
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Dividends declared per share | $0.15 |
| $0.15 |
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| $0.30 |
| $0.30 |
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Weighted average common shares outstanding, basic | 5,305,296 |
| 5,260,462 |
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| 5,289,066 |
| 5,248,011 |
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Weighted average common shares outstanding, diluted | 5,316,657 |
| 5,266,461 |
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| 5,304,129 |
| 5,255,354 |
Psychemedics Corporation Balance Sheets (UNAUDITED) | |||
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| June 30, |
| 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 | $2,729,175 |
| $3,065,785 |
Accounts receivable, net of allowance for doubtful accounts |
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of $144,088 in 2013 and $121,583 in 2012 | 5,190,299 |
| 4,620,768 |
Prepaid expenses and other current assets | 978,624 |
| 823,274 |
Income tax receivable | -- |
| 854,212 |
Deferred tax assets | 304,124 |
| 209,877 |
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Total Current Assets | 9,202,222 |
| 9,573,916 |
Fixed Assets, net of accumulated amortization and depreciation |
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of $4,804,135 in 2013 and $4,395,605 in 2012 | 4,489,308 |
| 4,201,409 |
Other assets | 436,730 |
| 345,293 |
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Total Assets | $ 14,128,260 |
| $ 14,120,618 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities: |
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Accounts payable | $577,192 |
| $669,789 |
Accrued expenses | 1,081,764 |
| 1,413,541 |
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Total Current Liabilities | 1,658,956 |
| 2,083,330 |
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Deferred tax liabilities, long-term | 814,619 |
| 814,619 |
Total Liabilities | 2,473,575 |
| 2,897,949 |
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Shareholders' Equity: |
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Preferred-stock, $0.005 par value, 872,521 shares authorized, | -- |
| -- |
no shares issued or outstanding |
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Common stock, $0.005 par value; 50,000,000 shares authorized |
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5,979,508 shares issued in 2013 and 5,940,558 shares issued in 2012 | 29,898 |
| 29,703 |
Additional paid-in capital | 28,592,453 |
| 28,460,764 |
Accumulated deficit | (6,885,877) |
| (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 | 11,654,685 |
| 11,222,669 |
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Total Liabilities and Shareholders' Equity | $14,128,260 |
| $14,120,618 |