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PSYCHEMEDICS Superior Science . Superior Results . EXHIBIT 99.1 Psychemedics Corporation Reports Stronger Second Quarter 2021 Financial Results ACTON , Mass . , Aug. 10 , 2021 ( GLOBE NEWSWIRE ) -- 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 , 2021 . The Company's revenue for the quarter ended June 30 , 2021 , was $ 6.1 million versus $ 3.3 million for the quarter ended June 30 , 2020 , an increase of 85 % . Net income for the quarter ended June 30 , 2021 , was $ 0.1 million or $ 0.02 per diluted share , versus net loss of $ 2.1 million or ( $ 0.37 ) per diluted share , for the comparable period last year , an increase of $ 0.39 per diluted share . The Company's revenue for the six months ended June 30 , 2021 , was $ 11.8 million versus $ 10.9 million for the comparable period in 2020 , an increase of 8 % . Net income for the six months ended June 30 , 2021 , was $ 0.2 million or $ 0.04 per diluted share , versus net loss of $ 2.2 million or ( $ 0.40 ) per diluted share , for the comparable period last year . Raymond C. Kubacki , Chairman and Chief Executive Officer , stated : " We continued to show improvement in our total revenues from our base business including continued quarter - to - quarter growth since the beginning of the COVID - 19 pandemic . The driving force in this revenue performance is the growth in our domestic business , largely attributable to our Oil & Gas , Manufacturing and Transportation market segments . We do recognize that we are comparing to last year's second quarter , which was the first quarter to feel the full impact of the COVID - 19 shutdown . Nonetheless , the 80 % increase in our domestic revenues was very solid . International revenues , primarily Brazil , increased 153 % but on a much smaller base . Brazil volumes continue to be unpredictable , and our focus is still on our domestic business as we mentioned in our last press release . On the earnings front , we had a number of factors that positively impacted our margins , as well as a number of factors that negatively impacted our margins . Our second quarter earnings were positively impacted by the Employee Retention Credit ( " ERC " ) provisions of the Consolidated Appropriations Act ( “ CAA " ) . Accordingly , we recorded a $ 0.8 million employee retention tax credit during the three months ended June 30 , 2021. We have already determined we are eligible for the employee retention tax credit in third quarter of 2021 and expect to be for the fourth quarter of 2021 as well . In addition , we benefited from a significant reduction in legal expenses from what was recorded in last year's second quarter . At the same time , however , margins were negatively impacted by a number of one - time expenses primarily from a dramatic increase in shipping costs ; expenses associated with the transition of our new financial team ( recruiting fees and temporary help ) ; and an inordinate increase in lab supplies purchased for reserve . The dislocation in shipping costs has been rectified , the financial team is now in place , and the lab supply reserve is in place . The net impact of all these factors and our continuing cost reduction ( including continuation of salary cuts for management and high - level teammates ) and cost control initiatives , enabled us to record a profit for the three months ended June 30th , 2021 . While there continues to be an uncertain economic outlook in view of the COVID - 19 variants , we believe we are well - positioned to continue our momentum as we serve a number of key essential industries . As an update on our PPP Loan , in July 2021 , the Company received confirmation that the United States Small Business Administration ( " SBA ” ) approved the forgiveness application for the Company's PPP loan ( the " PPP Loan " ) in the amount of $ 2.2 million ( including accrued interest ) . The balance on this PPP Loan is now zero . The Company had $ 2.7 million of cash ( $ 7.1 million of working capital ) as of June 30 , 2021. The total equipment financing outstanding was $ 1.6 million as of June 30 , 2021 , compared to a total amount borrowed of $ 12.2 million reflecting repayments of $ 10.6 million since May 2014. The PPP Loan outstanding was $ 2.2 million as of June 30 , 2021. As noted above , the PPP Loan was 100 % forgiven by the SBA in July 2021 . The Company paid 94 consecutive dividends ( 23 ½ years ) through the first quarter of 2020 , even during the financial crisis in 2008. However , because of the current COVID - 19 pandemic , the dividend was suspended during 2020 and first half 2021 as we prioritized our liquidity and balance sheet . We have consistently been committed to paying a dividend and it took a pandemic for us to break our long history of consecutive quarterly dividend payments . Our Board of 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 . We evaluate the dividend each quarter and will continue to do so as we move forward . " 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 ,