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 334%
Cambridge, Massachusetts, May 10, 2004 - Psychemedics Corporation (AMEX: PMD)
today announced first quarter results for the period ending March 31, 2004. The
Company also announced a quarterly dividend of $.08 per share, which will be
paid on June 25, 2004 to shareholders of record June 11, 2004.
The Company's first quarter revenue was $4,155,872, up 14% compared to
$3,657,567 in the first quarter of 2003. Net income was $452,988 or $0.09 per
share, up 334% from $104,339 or $0.02 per share for the same period in 2003.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said, "We are pleased
to be able to report good revenue growth and a significant improvement in net
income. Our results for the first quarter of 2004 give us reason to be
cautiously optimistic about the future, as it appears that the economy seems to
finally be on the mend and hiring is showing a pick-up. We are encouraged by the
fact that revenues increased by 14%, and along with our continued commitment to
carefully controlling expenses, resulted in net income increasing by 334%. We
continue to add new customers at a vigorous pace and as the economy and the
employment situation continue to improve, we expect to experience substantial
growth."
Kubacki continued, "The Company's balance sheet remains strong with over $2.5
million of cash and no long-term debt. The declaration of our 31st consecutive
dividend demonstrates the Directors' confidence in the Company's future growth
and their continued commitment to rewarding shareholders."
Psychemedics is the world's largest provider of hair testing for drugs of abuse
with thousands of corporations relying on the patented Psychemedics drug testing
services. Psychemedics' clients include over 10% of the Fortune 500, some of the
largest police departments in America and six Federal Reserve Banks.
Psychemedics is the only company that has received FDA clearance for a five-drug
panel test of hair samples for drugs of abuse.
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 growth, earnings, earnings per share, revenues, dividends, future
business, 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
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.
FINANCIAL SUMMARY
(unaudited)
March 31, 2004
Three Months
Ended March 31,
-----------------------------
2004 2003
---------- ----------
Revenue $4,155,872 $3,657,567
Pre-tax Income $735,488 $179,339
Net Income $452,988 $104,339
Basic Net Income Per Share $0.09 $0.02
Diluted Net Income Per Share $0.09 $0.02
Weighted Average Common
Shares Outstanding 5,126,907 5,214,325
Weighted Average Common
and Common Equivalent Shares
Outstanding, Assuming Dilution 5,133,050 5,222,190