Psychemedics Corporation Reports Second Quarter 2023 Financial Results
12 8월 2023 - 6:10AM
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, 2023.
The Company’s revenue for the quarter ended June
30, 2023, was $5.5 million versus $6.5 million for the quarter
ended June 30, 2022, a decrease of 15%. Net loss for the quarter
ended June 30, 2023, was $(726,000) or $(0.13) per diluted share,
versus net loss of $(338,000) or $(0.06) per diluted share, for the
comparable period last year.
In the second quarter, the labor shortage continued to have an
adverse impact on our clients’ use of hair testing in hiring. This
offset the positive impact of the growth in our add-on tests for
fentanyl and benzodiazepines, as well as our 4Q 2022 price
increase.
Gross margin improved to 37% compared to 35% in 2Q last year, as
our cost reduction programs were able to offset part of the revenue
decline. Operating expenses also were held in check, declining
5%.
Also impacting the second quarter, Psychemedics settled a
lawsuit on July 17th, 2023, with a consultant related to a contract
dispute. Without admitting wrongdoing, Psychemedics agreed to a
monetary sum, which is reflected as a non-recurring expense for the
2nd quarter, in exchange for the dismissal of the lawsuit,
including dismissal of Psychemedics’ counterclaims. This sum is
payable over the next 18 months.
As previously announced on July 12th, the Board of Directors
approved a transition plan for the Company’s President and CEO
position. Effective August 17th, current Chairman of the Board,
President and CEO, Ray Kubacki will retire from the positions he
holds and be succeeded by Brian Hullinger as President and CEO.
Subject to shareholder approval, Mr. Hullinger will also join the
Company’s Board of Directors.
The Company had approximately $2.4 million of cash and cash
equivalents as of June 30, 2023. The total equipment financing
outstanding was less than $0.5 million as of June 30, 2023.
The Board has determined to eliminate the dividend in order to
maximize capital for new growth initiatives.
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 future dividends) may be “forward
looking” statements. Actual results may differ from those
stated in any forward-looking statements. Factors to be taken
into account in connection with such forward-looking statements
include, but are not limited to, revenues, earnings, collections of
receivables, 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, including acceptance by the court of our
wage/break settlement arrangement, general economic conditions,
current and anticipated 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
Investor Relations:
Phone: 978-206-8220Email:
InvestorRelations@Psychemedics.com
Psychemedics
CorporationConsolidated Statements of
Operations(in thousands, except per share
amounts)(UNAUDITED)
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
5,537 |
|
|
$ |
6,513 |
|
|
$ |
11,396 |
|
|
$ |
13,021 |
|
|
Cost of
revenues |
|
3,478 |
|
|
|
4,240 |
|
|
|
7,132 |
|
|
|
8,307 |
|
|
Gross
profit |
|
2,059 |
|
|
|
2,273 |
|
|
|
4,264 |
|
|
|
4,714 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
General & administrative |
|
1,444 |
|
|
|
1,445 |
|
|
|
3,090 |
|
|
|
2,772 |
|
|
Marketing & selling |
|
746 |
|
|
|
813 |
|
|
|
1,535 |
|
|
|
1,619 |
|
|
Research & development |
|
286 |
|
|
|
357 |
|
|
|
584 |
|
|
|
675 |
|
|
Total
Operating expenses |
|
2,476 |
|
|
|
2,615 |
|
|
|
5,209 |
|
|
|
5,066 |
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(417 |
) |
|
|
(342 |
) |
|
|
(945 |
) |
|
|
(352 |
) |
|
|
|
|
|
|
|
|
|
|
Other
(expense) income: |
|
|
|
|
|
|
|
|
Settlement |
|
(500 |
) |
|
|
-- |
|
|
|
(500 |
) |
|
|
-- |
|
|
Other |
|
(5 |
) |
|
|
(9 |
) |
|
|
(10 |
) |
|
|
57 |
|
|
Total other
(expense) income, net |
|
(505 |
) |
|
|
(9 |
) |
|
|
(510 |
) |
|
|
57 |
|
|
|
|
|
|
|
|
|
|
|
Loss before
(benefit from) provision for income taxes |
|
(922 |
) |
|
|
(351 |
) |
|
|
(1,455 |
) |
|
|
(295 |
) |
|
|
|
|
|
|
|
|
|
|
(Benefit
from) provision for income taxes |
|
(196 |
) |
|
|
(13 |
) |
|
|
(345 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(726 |
) |
|
$ |
(338 |
) |
|
$ |
(1,110 |
) |
|
$ |
(299 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted net
loss per share |
$ |
(0.13 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
Dividends
declared per share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
Psychemedics
CorporationConsolidated Balance Sheets(in
thousands, except par value)(UNAUDITED)
|
June 30, |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
2,445 |
|
|
$ |
4,750 |
|
Accounts receivable, net of allowance for doubtful accounts |
4,001 |
|
|
3,739 |
|
Prepaid expenses and other current assets |
1,773 |
|
|
1,136 |
|
Income tax receivable |
9 |
|
|
339 |
|
Total Current Assets |
8,228 |
|
|
9,964 |
|
|
|
|
|
|
|
Fixed assets, net of accumulated amortization and depreciation |
3,757 |
|
|
4,573 |
|
Other assets |
817 |
|
|
823 |
|
Net deferred tax assets |
1,284 |
|
|
691 |
|
Operating lease right-of-use assets |
2,300 |
|
|
2,681 |
|
Total Assets |
$ |
16,386 |
|
|
$ |
18,732 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
Accounts payable |
$ |
806 |
|
|
$ |
448 |
|
Accrued expenses |
3,467 |
|
|
3,939 |
|
Current portion of long-term debt |
299 |
|
|
294 |
|
Current portion of operating lease liabilities |
1,067 |
|
|
1,037 |
|
Total Current Liabilities |
5,639 |
|
|
5,718 |
|
|
|
|
|
|
|
Long-term debt |
154 |
|
|
305 |
|
Long-term portion of operating lease liabilities |
1,466 |
|
|
1,938 |
|
Total Liabilities |
7,259 |
|
|
7,961 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
Common stock, $0.005 par value; 50,000 shares authorized; 6,411
and 6,349 shares issued and 5,743 and 5,681 shares
outstanding, respectively |
32 |
|
|
32 |
|
Additional paid-in capital |
34,540 |
|
|
34,275 |
|
Less - Treasury stock, at cost, 668 shares |
(10,082 |
) |
|
(10,082 |
) |
Accumulated deficit |
(13,729 |
) |
|
(11,820 |
) |
Accumulated other comprehensive loss |
(1,634 |
) |
|
(1,634 |
) |
Total Shareholders' Equity |
9,127 |
|
|
10,771 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
16,386 |
|
|
$ |
18,732 |
|
|
|
|
|
|
|
Psychemedics (NASDAQ:PMD)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Psychemedics (NASDAQ:PMD)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024