Psychemedics Corp. (NSDQ:PMD) posted fourth-quarter sales of $4.3 million for the three months ended Dec. 31, 2009, down 11.5 percent compared with $4.8 million during the same period in 2008. Net income rose 216 percent to $546,000, compared with $173,000 during Q4 2008:
Press Release
Psychemedics Corporation Announces 2009 Year End Profits
Declares Quarterly Dividend
ACTON, Mass., Feb. 23 /PRNewswire-FirstCall/ — Psychemedics Corporation (Nasdaq: PMD) today announced fourth quarter and year-end financial results for the period ended December 31, 2009. The Company also announced a quarterly dividend of $0.12 per share payable to shareholders of record as of March 5, 2010 to be paid on March 19, 2010. This will be the Company’s 54th consecutive quarterly dividend.
The Company’s revenue for the year ended December 31, 2009 was $16,954,994, a decrease of 26% as compared to $22,948,604 for 2008. Net income for the year ended December 31, 2009 was $1,527,295 or $0.29 per share, a decrease of 49% from 2008 during which the Company earned $2,968,789 or $0.57 per share. Revenue for the fourth quarter was $4,271,340, a decrease of 11% as compared to $4,824,016 in the fourth quarter of 2008. Net income was $546,083 or $0.10 per share, up 216% from $172,728 or $0.03 per share for the same period of 2008.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said, “Stating the obvious: this was a very tough year for everyone. And so for us as well. On the bright side, we continued to add new clients as more and more companies see our patented hair testing method as a significant cost savings tool. However, the facts are that in 2009 most companies were laying off and not hiring. Therefore, new business was unable to match the significant fall off in hiring across our entire client base.”
Kubacki continued: “Nonetheless, again on the bright side, we remained profitable for the year 2009 – and not just marginally profitable – and we continued our unbroken string of profitability since 1993. 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 for 2009. We also implemented a reduction in base salaries for all personnel in 2009. We were determined to remain profitable.”
Kubacki concluded, “Once again, we demonstrated that Psychemedics is able to successfully weather any downturn. The Company’s balance sheet remains strong with approximately $5.8 million in cash and short-term investments and no long-term debt. Our directors share our confidence in the future of Psychemedics and remain committed to rewarding shareholders and sharing the financial success of the Company with them as we grow. Therefore, we are pleased to declare our fifty-fourth consecutive quarterly dividend.”
