EXHIBIT 99.1
NEWS RELEASE
Contact: Peter Monson
Chief Financial Officer
(617) 868-7455
Peterm@psychemedics.com
PSYCHEMEDICS CORPORATION ANNOUNCES
2ND QUARTER RESULTS,
DIVIDEND DECLARED
Cambridge, Massachusetts, August 5, 2003 -- Psychemedics Corporation (AMEX: PMD)
today announced second quarter results for the period ending June 30, 2002. The
Company also announced a quarterly dividend of $.08 per share, which will be
paid on September 19, 2003 to shareholders of record on September 5, 2003.
The Company's second quarter revenue was $4,266,767 as compared to $4,792,903 in
the second quarter of 2002. Net income was $398,781 or $.08 per share versus
$638,294 or $.12 per share for the same period in 2002.
Raymond C. Kubacki, President and Chief Executive Officer, said, "During the
quarter we struggled with a difficult drug testing environment. The employment
picture, that some say is the worst in 20 years, has made it a difficult time
for our industry. Since pre-employment drug testing is our major business, our
results continued to be adversely affected. The good news, however, is that we
were able to continue to add new accounts at a healthy pace and to demonstrate
our ability to produce strong profit margins in a tough environment. We remain
optimistic, however, that an improved employment market will allow us to record
significant growth and that our patented and FDA cleared hair test for drugs of
abuse will continue to be the "gold standard" in the industry."
Kubacki continued, "The dividend demonstrates the Directors' continued
commitment to rewarding shareholders and sharing the overall financial success
of the Company with
them. The Company's balance sheet is strong with over $3 million of cash and no
long-term debt."
Psychemedics is the world's largest provider of hair testing for drugs of abuse
with over 2,600 corporations relying on the patented Psychemedics drug testing
services. The Company has the only FDA cleared hair test for drugs of abuse.
FINANCIAL SUMMARY
(unaudited)
June 30, 2003
Three Months Six Months
Ended June 30, Ended June 30,
2003 2002 2003 2002
---- ---- ---- ----
Revenue $4,266,767 $4,792,903 $7,924,334 $8,361,364
Pre-tax Income $ 683,781 $1,082,194 $ 863,120 $1,180,728
Net Income $ 398,781 $ 638,294 $ 503,120 $ 690,728
Basic Net Income Per Share $ 0.08 $ 0.12 $ 0.10 $ 0.13
Diluted Net Income Per Share $ 0.08 $ 0.12 $ 0.10 $ 0.13
Weighted Average Common
Shares Outstanding 5,213,572 5,259,720 5,213,946 5,259,473
Weighted Average Common
and Common Equivalent Shares
Outstanding, Assuming Dilution 5,219,402 5,288,180 5,220,721 5,293,342
All share amounts have been adjusted to reflect the Company's one-for-four
reverse stock split that was effected on August 1, 2002.
The Psychemedics web site is WWW.DRUGTESTWITHHAIR.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, profit margins, revenues, expenses,
dividends, dividend yield, new accounts, market share, test volume, sales and
marketing strategies and testing methodologies) 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 employee hiring practices of the Company's principal customers, 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.