Form 10-QSB
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from to
Commission File Number 0-11740
MESA LABORATORIES,
INC.
(Exact Name of Small Business Issuer as Specified in its Charter)
COLORADO
84-
0872291
(State or other Jurisdiction of
(I.R.S. Employer
Incorporation or Organization)
Identification No.)
12100 WEST SIXTH AVENUE, LAKEWOOD, COLORADO
80228
(Address of Principal Executive Offices)
(Zip Code)
Issuer's telephone number, including area code:
(303) 987-8000
3904 YOUNGFIELD STREET, WHEATRIDGE, COLORADO
80033
(Previous Address)
(Previous Zip Code)
Check whether the Issuer (1) filed all reports required to be filed
by Section 13 or 15 (d) of the Exchange Act, during the past 12
months and (2) has been subject to the filing requirements for the
past 90 days. Yes X No .
State the number of shares outstanding of each of the Issuer's
classes of common stock, as of the latest practicable date:
There were 4,258,661 shares of the Issuer's common stock, no par
value, outstanding as of September 30, 1995.
<TABLE>
Balance Sheet
(Unaudited)
<CAPTION>
September
30,
March 31,
1995
1995
Assets
<S>
<C>
<C>
Current assets
Cash and cash equivalents
$ 890,127
$ 402,913
Accounts receivable, net
1,697,617
1,711,489
Inventories
2,099,593
2,032,638
Prepaid income tax
-
53,530
Prepaid expenses
12,001
38,824
Deferred income taxes
72,815
72,815
Total current assets
4,772,153
4,312,209
Property, plant & equipment, net
1,587,652
1,311,243
Other assets
Patents, trademarks and covenants, net
1,169,454
1,234,317
Deposits and other assets
5,931
7,964
Total assets
$ 7,535,190
$ 6,865,733
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$ 133,917
$ 118,703
Accrued salaries & payroll taxes
159,187
219,144
Other accrued expenses
200,187
158,223
Taxes payable
12,925
19,602
Total current liabilities
506,216
515,672
Long term liabilities
Deferred Income Taxes Payable
65,650
65,650
Stockholders' equity
Preferred stock, no par value
-
-
Common stock, no par value; authorized
8,000,000 shares; issued and
outstanding, 4,258,661 shares
(9/30/95) and 4,233,761 shares
(3/31/95)
3,070,578
3,045,532
Retained earnings
3,892,746
3,238,879
Total stockholders' equity
6,963,324
6,284,411
Total liabilities and stockholders'
equity
$ 7,535,190
$ 6,865,733
</TABLE>
<TABLE>
Statements of Operations
(Unaudited)
<CAPTION>
Three Months Ended
September 30,
1995
1994
<S>
<C>
<C>
Sales
$
1,798,90
4
$
1,578,33
9
Cost of goods sold
720,729
579,163
Selling, general and administrative
500,286
484,265
Research and development
69,642
87,989
Other (income) and expenses
(10,476)
(9,192)
1,280,18
1
1,142,22
5
Earnings before income taxes
518,723
436,114
Income taxes
181,600
150,300
Net income
$ 337,123
$ 285,814
Net income per share of common stock
$ .08
$ .07
Weighted average number of shares
outstanding
4,362,00
0
4,365,00
0
</TABLE>
<TABLE>
Statements of Operations
(Unaudited)
<CAPTION>
Six Months Ended
September
30,
1995
1994
<S>
<C>
<C>
Sales
$ 3,452,092
$ 3,000,285
Cost of goods sold
1,330,262
1,104,770
Selling, general and administrative
986,845
947,759
Research and development
149,523
174,033
Other (income) and expenses
(20,405)
(15,384)
2,446,225
2,211,178
Earnings before income taxes
1,005,867
789,107
Income Taxes
352,000
272,200
Net Income
$ 653,867
$ 516,907
Net income per share of common stock
$ .15
$ .12
Weighted average number of shares
outstanding
4,324,000
4,380,000
</TABLE>
<TABLE>
Statements of Cash Flows
(Unaudited)
<CAPTION>
Six Months Ended
September 30,
1995
1994
<S>
<C>
<C>
Cash flows from operating activities
Net income
$ 653,867
$ 516,907
Depreciation and Amortization
143,851
126,678
Change in assets and liabilities-
Accounts receivable
13,872
147,895
Inventories
(66,955)
(310,739)
Prepaid expenses
80,353
19,068
Deposits
2,033
(50,000)
Accounts payable
15,214
2,258
Accrued liabilities
(24,670)
(42,161)
163,698
(107,001)
Net cash (used) provided by
operating activities
817,565
409,906
Cash flows from investing activities
Trademarks
(1,474)
-
Capital expenditures, net of
retirements
(353,923)
(37,337)
Net cash (used) provided by
investing activities
(355,397)
(37,337)
Cash flows from financing activities
Notes payable and other
-
(22,874)
Treasury stock purchases
(30,816)
(183,174)
Proceeds from stock options exercised
55,862
2,961
Net cash (used) provided by
financing activities
25,046
(203,087)
Net increase (decrease) in cash and
equivalents
487,214
169,482
Cash and cash equivalents at beginning of
period
402,913
923,242
Cash and cash equivalents at end of
period
$ 890,127
$ 1,092,724
Note 1 - Summary of Accounting Policies
The summary of the Issuer's significant accounting policies are
incorporated by reference to the Company's annual report on Form 10KSB, at
March 31, 1995.
The accompanying unaudited condensed financial statements reflect all
adjustments which, in the opinion of management, are necessary for a fair
presentation of the results of operations, financial position and cash
flows. The results of the interim period are not necessarily indicative of
the results for the full year.
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
On September 30, 1995, the Company had cash and cash equivalents of
$890,127. In addition, the Company had other current assets totaling
$3,882,026 and total current assets of $4,772,153. Current liabilities of
Mesa Laboratories, Inc. were $506,216 which resulted in a current ratio of
9.4:1.
The Company has made net capital asset purchases of $353,923. The Company
moved all of its operations to its newly acquired facility in Lakewood,
Colorado in late August of this year.
During the first quarter of fiscal 1995, the Company announced its
intention to repurchase up to 5% of its outstanding common stock. Under
the plan, the shares may be purchased from time to time in the open market
at prevailing prices or in negotiated transactions off the market. Shares
purchased will be used for general corporate purposes and repurchases will
be with existing cash reserves. At September 30, 1995, the Company has
purchased 172,220 shares of its common stock at a cost of $434,095.
The Company anticipates that it will be able to meet the working capital
needs of its operations through internally generated cash flow during the
current fiscal year.
Results of Operations
Revenue
Net sales for the six months ended September 30, 1995 increased
$451,807 or 15% to $3,452,092 from the $3,000,285 net sales level
achieved for the same six month period last year. Net sales for the
quarter increased $220,565 or 14% to $1,798,904 from the $1,578,339
net sales level achieved in the same quarter last year. For both the
quarter and year-to-date Datatrace and Nusonics products showed
increased sales while Medical products showed a small decrease. In
the Datatrace line, the new Field Replaceable Battery Micropack
Tracer was responsible for increased sales, while the increase in
Nusonics sales was driven by the new CM800 Flow Meter and an overall
increase in Concentration Analyzer sales.
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Cost of Goods Sold
Cost of goods sold for the first six months as a percent of net sales
was 39% representing an increase of 2% from the 37% level one year
ago. Cost of goods sold for the current quarter as a percent of net
sales was 40% which represents an increase of 3% from the 37% level
in the same quarter one year ago. The quarter and year-to-date
showed an increase in cost of goods sold as a percentage of sales.
Most of this increase was realized in the most recent quarter and is
attributable to an increase in Sonic Flow Meters as a percent of
total sales and reallocation of resources from Research and
Development to Quality Assurance.
Selling, General and Administrative
Selling, general and administrative expenses for the first six months
rose 4% or $39,086 to $986,845 from $947,759 in the same period last
year. Selling, general and administrative expenses for the current
quarter totaled $500,286 which was up 3% or $16,021 from $484,265
expended in the same quarter one year ago. For the year, increases
in Administration and Datatrace marketing expenses were partially
off-set by decreases in Medical and Nusonics marketing expense. For
the remainder of the fiscal year, it is expected that Nusonics
marketing expense will increase due to the addition of a Regional
Sales Manager position, but for the remainder of the year, total
selling, general and administrative expense is not expected to
increase significantly from the first half of the fiscal year.
Research and Development
Research and development for the first six months decreased to
$149,523 from $174,033 last year. Research and development for the
quarter was $69,642 which represents a $18,347 decrease in expense in
relation to the same quarter last year. For the year-to-date and
quarter, research and development spending has decreased due to a
reduction in salary expense and the reallocation of certain resources
to Quality Assurance.
Net Income
Net income for the six months ended September 30, 1995, increased 26%
to $653,867 or $.15 per share from $516,907 or $.12 per share last
year. Net income for the quarter was $337,123 or $.08 per share
which rose 18% compared to net income of $285,814 or $.07 per share
in the same quarter last year. During the second quarter and first
six months of the fiscal year, net income increased at a higher
percentage than net sales. While the second quarter profitability
was impacted by costs of the Company's facility move, for the
remainder of the fiscal year spending is expected to continue to grow
at a lower rate than revenues.
Item 4 - Submission of Matters to a Vote of Security Holders
The Annual Meeting of Shareholders of Mesa Laboratories, Inc. was
held on October 12, 1995. Of the 4,260,961 shares entitled to vote,
3,685,821 were represented either in person or by proxy. Five
directors were elected to serve until the next Annual Meeting of
Shareholders. The five directors elected were:
Luke R. Schmieder
H. Stuart Campbell
Paul D. Duke
G. Lee Southard
Philip D. Quedenfeld
All director positions stand for election at each Annual Meeting of
Shareholders.
SEPTEMBER 30, 1995
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Issuer has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
MESA LABORATORIES, INC.
(Issuer)
Date: November 16, 1995 By:
Luke R. Schmieder
President, Chief
Executive
Officer, Treasurer and
Director
Date: November 16, 1995 By:
Steven W. Peterson
Vice President-Finance,
Chief
Financial and Accounting
Officer
and Secretary
- - 2 -
MESA LABORATORIES, INC.
<FN>
See notes to financial statements.
</FN>
</TABLE>
- - 6 -
MESA LABORATORIES, INC.
Notes to Financial Statements
- - 8 -
MESA LABORATORIES, INC.
Other Information
MESA LABORATORIES, INC.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 890,127
<SECURITIES> 0
<RECEIVABLES> 1,697,617
<ALLOWANCES> 0
<INVENTORY> 2,099,593
<CURRENT-ASSETS> 4,772,153
<PP&E> 1,587,652
<DEPRECIATION> 0
<TOTAL-ASSETS> 7,535,190
<CURRENT-LIABILITIES> 506,216
<BONDS> 0
<COMMON> 3,070,578
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,963,324
<SALES> 1,798,904
<TOTAL-REVENUES> 1,798,904
<CGS> 720,729
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 559,542
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 518,723
<INCOME-TAX> 181,600
<INCOME-CONTINUING> 337,123
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 337,123
<EPS-PRIMARY> .08
<EPS-DILUTED> .08
</TABLE>
