Six months ending December 2019 versus six months ending June 2019.
Sales down 6.7%.
Sales were trending down.
Operating income down 17.6%.
Operating income was trending down.
Net income down 17.1%.
Net income was trending down.
Sequential numbers.
Not reported.
Then the pandemic hit, somewhere in the first half of 2020.
New customers were established and expanded the use of the drug patch,
as urine testing and oral testing ceased.
Six months ending June 2020 versus six months ending December 2019.
Sales up 29.2%.
Sales are trending up.
Operating income up 56.3%.
Operating income is trending up.
Net income up 42.8%.
Net income is trending up.
Sequential numbers. Not reported.
Sequential trends. Six month periods.
Sales went from down 6.7% to up 29.2%.
Sales went from down to up.
Operating income went from down 17.6% to up 56.3%.
Operating income went from down to up.
Net income went from down 17.1% to up 42.8%.
Net income went from down to up.
Note that the oral and urine testing did not cease on January 1 2020.
Note that the use of the drug patch by new customers did not begin on
January 1, 2020.
In other words, increases in the first half of 2020 are more back end
loaded.
Who knows the extent of the sales and operating income and net income
increases would have been reported, had the switch to the patch began
on January 1st.
The down to up trends six month trends in sequentials underscores the
dramatic impact the pandemic had on their business. We were going down.
That makes the increase in sales more impressive.
Lastly, I assume that new customer trends are continuing at a rapid
pace, in other words, PCHM's telephone is ringing off the hook.
I assume that the new customers gained in first half are re-ordering
like crazy. And finally, there is a lag time for revenues from
purchases to lab submission which will have an even more explosive
impact to revenues.
The second half numbers will be a record for the patch division, and I
will try my best to estimate. I think that even if urine and oral
testing is readopted, PCHM will not lose every single new customer
since the pandemic began.
I believe that the social distancing benefit PCHM provides will impact
the company forever in a significant way that is unseen right now.
Sales up 29% sequentially could have been twice that, who knows.
What will it look like in the second half, twice that, more, who knows.
We are entering into an absolutely explosive period for the company.
PCHM
Also fraztastic.
