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| 8-K - MESA LABORATORIES INC /CO/ | v211189_8k.htm |
NEWS
FOR IMMEDIATE RELEASE: FEBRUARY 14, 2011
MESA
LABS REPORTS 44% INCREASE IN THIRD QUARTER REVENUES
LAKEWOOD, CO – Mesa
Laboratories, Inc. (NASDAQ:MLAB) today reported a 44 percent increase in revenue
and a 19 percent increase in non-GAAP1
net income for the fiscal third quarter ended December 31, 2010.
Highlights:
|
·
|
Third
quarter revenues increased 44% compared to the same period last fiscal
year
|
|
·
|
Year
to date net income increased 17% to
$4,006,000
|
|
·
|
Quarterly
non-GAAP adjusted net income increased 19% to $1,446,0001
|
|
·
|
Year
to date non-GAAP net income increased 25% to $4,515,0001
|
For the third quarter of fiscal 2011,
net sales increased 44 percent to $7,652,000 from $5,318,000 in the same quarter
last year. GAAP net income for the quarter increased 9 percent to
$1,258,000 or $.37 per diluted share compared to $1,154,000 or $.35 per diluted
share one year ago.
For the first nine months of fiscal
2011, net sales increased 46 percent to $22,861,000 from $15,702,000 in the same
period last year. Net income for the first nine months
increased
17
percent to $4,006,000 or $1.21 per diluted share compared to $3,424,000 or $1.04
per share one year ago.
On a
non-GAAP basis (which excludes acquisition related intangible amortization),
adjusted net income for the third quarter of fiscal 2011 increased 19 percent to
$1,446,000 or $.43 per diluted share of common stock compared to $1,213,000 or
$.37 per diluted share of common stock last year. For the first nine
months of fiscal 2011, adjusted net income increased 25 percent to $4,515,000 or
$1.36 per diluted share of common stock compared to $3,608,000 or $1.10 per
diluted share of common stock during the same period last year. See
the note below for an explanation of the calculation of adjusted net income and
adjusted net income per share.
“The
highlight of Mesa’s third quarter was completion of the acquisition of the
assets of Apex Laboratories, Inc.,” said John J. Sullivan, President and Chief
Executive Officer. “Since the acquisition was completed just prior to
the end of the quarter, it had little impact on revenue this
quarter. However, we expect to see a positive financial impact from
the addition of the Apex products in the last quarter of this fiscal year and in
future years. We are currently executing an integration plan that
will see the Apex products moved to Mesa’s Bozeman, Montana facility during the
first quarter of fiscal 2012. Once fully integrated, addition of the
Apex products is expected to have a positive impact on gross margins and
operating income in our biological indicators (BI) business. Mesa’s
BI business has grown through acquisition and organically during the past year,
becoming about half of our revenue. With the addition of SGM Biotech
earlier in the year and now the Apex products, Mesa has a much stronger market
position in this important and growing industry.”
“Non-recurring
expenses in the third quarter of fiscal 2011 had a negative impact on operating
profits and net income,” continued John Sullivan. “Expenses
associated with the move of the Torqo product line from New Hampshire to
Colorado and the acquisition related expenses of Apex totaled
$175,000. These one-time expenses negatively impacted Mesa’s net
income by $111,000 and earnings per share by $.03 on a diluted
basis. With these expenses behind us, we expect to report improved
profitability in the last quarter of this fiscal year.”
During
the third quarter and nine month period of fiscal 2011, sales of the Company’s
instrumentation products and services increased nine percent and 12 percent,
respectively, compared to the prior year period. The revenue
increases in the third quarter and nine month period were primarily a result of
the Torqo acquisition in December, 2009.
During the third quarter and nine month
period of fiscal 2011, sales of the Company’s Biological Indicator products
increased 117 percent and 113 percent, respectively, compared to the same period
last year. The increase in Biological Indicator sales during the
quarter and nine month period was due to organic growth of 12 percent and nine
percent, respectively, plus the revenue added as a result of the acquisition of
SGM Biotech in April, 2010 and the Apex products in December, 2010.
Mesa
Laboratories develops, acquires, manufactures and markets electronic instruments
and disposables for industrial, pharmaceutical and medical
applications.
This news release contains
forward-looking statements which involve risks and uncertainties. The
Company’s actual results could differ materially from those in any such
forward-looking statements. Additional information concerning
important factors that could cause results to differ materially from those in
any such forward-looking statement is contained in the Company’s Annual Report
on Form 10-K for the year ended March 31, 2010 as filed with the Securities and
Exchange Commission, and from time to time in the Company’s other reports on
file with the Commission.
1 The
non-GAAP measures of adjusted net income and adjusted earnings per share are
defined to exclude the impacts of non-cash intangibles amortization, net of its
tax effects. A reconciliation between these non-GAAP measures and their GAAP
counterparts is set forth in the table below, along with additional information
regarding their use.
FINANCIAL SUMMARY
STATEMENT OF EARNINGS
(Unaudited)
| Quarter Ended December 31 | Nine Months Ended December 31 | |||||||||||||||
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2010
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2009
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2010
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2009. | |||||||||||||
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Net
Sales
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$ | 7,652,000 | $ | 5,318,000 | $ | 22,861,000 | $ | 15,702,000 | ||||||||
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Cost of Goods
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3,212,000 | 2,020,000 | 9,488,000 | 6,109,000 | ||||||||||||
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Gross
Profit
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4,440,000 | 3,298,000 | 13,373,000 | 9,593,000 | ||||||||||||
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Operating Expense
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2,438,000 | 1,480,000 | 6,835,000 4,193,000 | |||||||||||||
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Operating
Income
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2,002,000 | 1,818,000 | 6,538,000 | 5,400,000 | ||||||||||||
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Other Expense &
(Income)
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33,000 | (14,000 | ) | 79,000 | (26,000 | ) | ||||||||||
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Earnings
Before Taxes
|
1,969,000 | 1,832,000 | 6,459,000 | 5,426,000 | ||||||||||||
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Income Taxes
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711,000 | 678,000 | 2,453,000 | 2,002,000 | ||||||||||||
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Net Income
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$ | 1,258,000 | $ | 1,154,000 | $ | 4,006,000 | $ | 3,424,000 | ||||||||
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Earnings Per Share (Basic)
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$ | .39 | $ | .36 | $ | 1.24 | $ | 1.07 | ||||||||
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Earnings Per Share
(Diluted)
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$ | .37 | $ | .35 | $ | 1.21 | $ | 1.04 | ||||||||
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Average Shares (Basic)
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3,234,000 | 3,193,000 | 3,226,000 | 3,191,000 | ||||||||||||
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Average Shares (Diluted)
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3,355,000 | 3,317,000 | 3,316,000 | 3,284,000 | ||||||||||||
BALANCE SHEETS
(Unaudited)
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Dec.
31
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March
31
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|||||||
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2010
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2010
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|||||||
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Cash
and Cash Equivalents
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$ | 2,129,000 | $ | 10,471,000 | ||||
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Other Current Assets
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12,114,000 | 10,003,000 | ||||||
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Total
Current Assets
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14,243,000 | 20,474,000 | ||||||
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Property
and Equipment
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7,409,000 | 4,239,000 | ||||||
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Other Assets
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25,968,000 | 8,926,000 | ||||||
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Total Assets
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$ | 47,620,000 | $ | 33,639,000 | ||||
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Liabilities
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$ | 13,174,000 | $ | 2,442,000 | ||||
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Stockholders’ Equity
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34,446,000 | 31,197,000 | ||||||
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Total Liabilities and
Equity
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$ | 47,620,000 | $ | 33,639,000 | ||||
NON-GAAP
ADJUSTED NET INCOME AND NON-GAAP
DILUTED
EPS RECONCILIATIONS
(Unaudited)
| Quarter Ended December 31 | Nine Months Ended December 31 | |||||||||||||||
|
2010
|
2009
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2010
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2009 . | |||||||||||||
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Net
Income
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$ | 1,258,000 | $ | 1,154,000 | $ | 4,006,000 | $ | 3,424,000 | ||||||||
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Intangibles
Amortization, net of
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||||||||||||||||
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tax effect
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188,000 | 59,000 | 509,000 | 184,000 | ||||||||||||
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Adjusted Net Income
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$ | 1,446,000 | $ | 1,213,000 | $ | 4,515,000 | $ | 3,608,000 | ||||||||
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Fully
Diluted Shares Outstanding
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3,355,000 | 3,317,000 | 3,316,000 | 3,284,000 | ||||||||||||
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Adjusted
EPS
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$ | 0.43 | $ | 0.37 | $ | 1.36 | $ | 1.10 | ||||||||
The
non-GAAP measures of adjusted net income and adjusted earnings per share
presented in the reconciliation above are defined to exclude the impacts of
non-cash intangibles amortization, net of their tax effects. The tax
effect is calculated using the average corporate rate for that period multiplied
by the elimination. We believe that excluding these acquisition
related expenses provides the ability to understand the benefits of acquisitions
based on their cash return.
We
provide non-GAAP net income and non-GAAP earnings per share amounts in order to
provide meaningful supplemental information regarding our operational
performance. Our management uses non-GAAP measures to evaluate the
performance of our business and to compensate employees. This
information facilitates our management’s internal comparisons to our historical
operating results as well as to the operating results of our
competitors. Since management finds this measure to be useful, we
believe that our investors can benefit by evaluating both our non-GAAP and our
GAAP results.
Our
management recognizes that items such as amortization of intangibles can have a
material impact on our net income. To gain a complete picture of all
effects on the company’s profit and loss from any and all events, management
does (and investors should) rely upon the GAAP income statement. The
non-GAAP numbers focus instead upon the core operating business of the
company.
Readers
are reminded that non-GAAP measures are merely a supplement to, and not a
replacement for, or superior to our financial measures prepared according to
GAAP. They should be evaluated in conjunction with the GAAP financial
measures. It should be noted as well that our non-GAAP information
may be different from the non-GAAP information provided by other
companies.
CONTACTS:
John J.
Sullivan, Ph.D.; President and CEO
Steven W.
Peterson; CFO
Mesa
Laboratories, Inc.
303.987.8000