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PSYCHEMEDICS Superior Science . Superior Results . EXHIBIT 99.1 Psychemedics Corporation Reports Stronger Revenue , Operating Profit and Earnings Growth in Third Quarter 2021 ACTON , Mass . , Nov. 12 , 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 third quarter ended September 30 , 2021 . The Company's revenue for the quarter ended September 30 , 2021 , was $ 6.7 million versus $ 5.2 million for the quarter ended September 30 , 2020 , an increase of 29 % . Net income for the quarter ended September 30 , 2021 , was $ 0.7 million or $ 0.13 per diluted share , versus net loss of $ 1.1 million or ( $ 0.20 ) per diluted share , for the comparable period last year , an increase of $ 0.33 per diluted share . The Company's revenue for the nine months ended September 30 , 2021 , was $ 18.5 million versus $ 16.0 million for the comparable period in 2020 , an increase of 16 % . Net income for the nine months ended September 30 , 2021 , was $ 1.0 million or $ 0.17 per diluted share , versus net loss of $ 3.3 million or ( $ 0.60 ) per diluted share , for the comparable period last year . Raymond C. Kubacki , Chairman and Chief Executive Officer , stated : " We had a strong third quarter in total revenues and operating income as our domestic business continued to deliver volume growth versus the prior year and all prior quarters since the beginning of the COVID - 19 pandemic . Domestic revenues increased 27 % compared to third quarter of 2020 and also 13 % compared to this year's second quarter . Driving the third quarter revenue performance was continued growth in key market sectors including Oil & Gas , Manufacturing and Transportation , with other market segments such as Schools also showing good recovery . International revenues , primarily Brazil , increased 70 % but on a much smaller base . Brazil volumes continue to be unpredictable , and our focus is still on our domestic business as we have mentioned previously . On the earnings front , our margins continued to be positively impacted by the Employee Retention Credit ( " ERC " ) provisions of the Consolidated Appropriations Act . Accordingly , we recorded a $ 0.8 million retention tax credit during the three months ended September 30 , 2021 , which reduced cost of revenues and also operating expenses . However , we still showed significant improvement in margins without the ERC as a result of increased revenues and the impact of our continuing cost reduction ( including continuation of salary cuts for management and high - level teammates ) and cost control initiatives . " In addition , there were two items in the other income / expenses category that basically offset one another . As the Company disclosed in a Current Report on Form 8 - K filed on September 23 , 2021 , the Company entered into a settlement agreement in conjunction with a contract dispute regarding the Company's alleged contractual obligations to a customer involving litigation with certain of the customer's former employees regarding their employment termination . The settlement agreement provided that payment ( including payment from both the Company and its insurers , in the combined amount of $ 2.1 million ) would be paid in three equal installments by November 2021. The first installment was paid before quarter end and reduced our cash balance accordingly . The settlement cost is recorded to other expense and is fully offset by the gain on forgiveness of the PPP Loan ( $ 2.2 million ) to other income . The PPP Loan was 100 % forgiven by the U.S. Small Business Administration in July 2021 and the balance on this PPP Loan is now zero . The Company had $ 2.0 million of cash ( $ 6.3 million of working capital ) as of September 30 , 2021. The total equipment financing outstanding was $ 1.4 million as of September 30 , 2021 , compared to a total amount borrowed of $ 12.2 million reflecting repayments of $ 10.8 million since May 2014 . While there continues to be an uncertain outlook in view of COVID - 19 variants , we believe we are well positioned to continue our momentum as we serve a number of key essential industries and are seeing broader recovery taking place in our other industry segments . 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 continues to be suspended for 2021 as we prioritize 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 will continue to evaluate the dividend as we move forward for the remainder of the year . As the Company disclosed in its Quarterly Report on Form 10 - Q for the second quarter of 2020 , and more recently in a Current Report on Form 8 - K filed on September 23 , 2021 , the Company's Board of Directors authorized the Company to explore shareholder enhancement opportunities , including strategic alternatives , such as the potential sale or merger of the Company , capitalization optimization and dividend strategies . The Company continues to explore such opportunities . There can be no assurances that the shareholder enhancement review process will result in a transaction or other strategic change or outcome . The Company has not set a timetable for the conclusion of its review of strategic alternatives , and the Company does not intend to comment further unless and until the Board has approved a specific course of action or the Company has otherwise determined that further disclosure is appropriate or required by law . The Company's Board of Directors has established a Committee to review shareholder enhancement opportunities . The Company has retained JMP Securities LLC , as its financial advisor , and Mintz , Levin , Cohn , Ferris , Glovsky and Popeo , P.C. , as its legal counsel , in connection with its exploration of shareholder enhancement opportunities . 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 , Federal Reserve Banks , schools , and other public entities also rely on our unique patented drug testing process . We strongly believe our drug testing method to be superior to any other product currently in use , including traditional urine testing and other hair testing methods . 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