EXHIBIT 99.1
NEWS RELEASE
Contact: Peter Monson
Chief Financial Officer
(617) 868-7455
Peterm@psychemedics.com
PSYCHEMEDICS CORPORATION ANNOUNCES
1ST QUARTER RESULTS AND DIVIDEND
NET INCOME UP 99%
Cambridge, Massachusetts, May 8, 2003 -- Psychemedics Corporation (AMEX: PMD)
today announced first quarter results for the period ending March 31, 2003. The
Company also announced a quarterly dividend of $.08 per share, which will be
paid on June 26, 2003 to shareholders of record June 12, 2003.
The Company's first quarter revenue was $3,657,567, up 3% compared to
$3,568,461 in the first quarter of 2002. Net income was $104,339 or $0.02 per
share, up 99% from $52,434 or $0.01 per share for the same period in 2002.
Raymond C. Kubacki, President and Chief Executive Officer, said, "The poor
employment situation made the first quarter very challenging for our Company.
The hiring rebound that was hoped for did not occur, in fact, over 500,000 jobs
were lost during the quarter and the Iraq war further complicated an already
dismal jobs situation."
Kubacki continued, "Given the realities of the drug testing market, we are
pleased to be able to report revenue growth and a substantial net income
improvement. Our new business has been robust. While business from existing
customers is down across the board due to the lack of new hiring, a combination
of revenue from new customers and careful expense controls have allowed us to
continue to grow. With over 2,600 customers, we are poised for rapid growth once
the employment situation improves. Until then we will continue to expend every
effort to add new customers, build our base
of business, operate efficiently and position our Company for the rapid growth
we expect with an improved economy."
Kubacki continued, "The Company's balance sheet remains strong with over $3
million of cash and no long-term debt. The dividend demonstrates the Directors'
confidence in the Company's future growth and their continued commitment to
rewarding shareholders."
FINANCIAL SUMMARY
(unaudited)
March 31, 2003
Three Months
Ended March 31,
2003 2002
---------- ----------
Revenue $3,657,567 $3,568,461
Pre-tax Income $179,339 $98,534
Net Income $104,339 $52,434
Basic Net Income Per Share $0.02 $0.01
Diluted Net Income Per Share $0.02 $0.01
Weighted Average Common
Shares Outstanding 5,214,325 5,259,224
Weighted Average Common
and Common Equivalent Shares
Outstanding, Assuming Dilution 5,222,190 5,397,497
All share amounts have been adjusted to reflect the Company's one-for-four
reverse stock split that was effective August 1, 2002.
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, expenses, dividends, dividend
yield, new accounts, 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 expansion
of the Company's sales
and marketing network, 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.