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 June 30, 1996
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 W. 6TH AVENUE, LAKEWOOD, COLORADO 80228
(Address of Principal Executive Offices) (Zip Code)
Issuer's telephone number, including area code: (303) 987-
8000
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 4,329,051 shares of the Issuer's common
stock,
no par value, outstanding as of June 30, 1996.
Page 1 of 7
ITEM 1. FINANCIAL STATEMENTS FORM 10-QSB
<TABLE>
<CAPTION>
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
<S> <C> <C>
ASSETS JUNE 30, 1996 MARCH 31, 1996
CURRENT ASSETS
Cash and Cash Equivalents$2,404,553 $ 1,789,632
Accounts Receivable, Net 1,784,280 2,134,443
Inventories 1,949,656 2,006,773
Prepaid Income Tax - 55,395
Prepaid Expenses 23,218 35,070
Deferred Income Taxes 89,835 89,835
TOTAL CURRENT ASSETS 6,251,542 6,111,148
PROPERTY, PLANT &
EQUIPMENT, NET 1,605,961 1,577,544
OTHER ASSETS
Patents, Trademarks and
Covenants, Net 1,073,998 1,103,177
TOTAL ASSETS $ 8,931,501 $ 8,791,869
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable 66,434 $ 100,733
Accrued Salaries &
Payroll Taxes 105,771 289,643
Other Accrued Expenses 178,560 268,736
Taxes Payable 141,077 36,644
TOTAL CURRENT LIABILITIES 491,842 695,756
LONG TERM LIABILITIES
Deferred Income Taxes
Payable 58,135 58,135
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value - -
Common Stock, No Par Value;
authorized 8,000,000 shares;
issued and outstanding,
4,329,051 shares (6/30/96)
and 4,314,157 shares
(3/31/96) 3,450,846 3,450,141
Retained Earnings 4,930,678 4,587,837
TOTAL STOCKHOLDERS'
EQUITY 8,381,524 8,037,978
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 8,931,501 $ 8,791,869
</TABLE>
Page 2 of 7
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)FORM 10-QSB
<TABLE>
<CAPTION>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<S> <C> <C>
Three Months Three Months
Ended Ended
June 30, 1996 June 30, 1995
Sales $ 1,842,569 $ 1,653,188
Cost of Goods Sold 728,254 609,533
Selling, General &
Administrative 565,651 486,559
Research and Development 52,187 79,881
Other (Income) and Expenses (22,964) (9,929)
1,323,128 1,166,044
Earnings Before Income
Taxes 519,441 487,144
Income Taxes 176,600 170,400
Net Income $ 342,841 $ 316,744
Net Income Per Share of
Common Stock $ .08 $ .07
Weighted Average Number of
Shares Outstanding 4,534,000 4,280,000
</TABLE>
Page 3 of 7
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)FORM 10-QSB
<TABLE>
<CAPTION>
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<S> <C> <C>
Three Months Three Months
Increase (Decrease) in Cash and Cash Ended Ended
Equivalents June 30, 1996 June 30, 1995
Cash Flows From Operating Activities:
Net Income $ 342,841 $ 316,744
Depreciation and Amortization 62,501 71,926
Change in Assets and Liabilities-
(Increase) Decrease in
Accounts Receivable 350,163 160,019
(Increase) Decrease in
Inventories 57,117 (40,302)
(Increase) Decrease in
Prepaid Expenses 11,852 57,381
Increase (Decrease) in
Accounts Payable (34,299) (5,144)
Increase (Decrease) in
Accrued Liabilities (114,220) (15,154)
Net Cash (Used) Provided by Operating
Activities 675,955 545,470
Cash Flows From Investing Activities:
Capital Expenditures,
Net of Retirements (57,739) (41,810)
(Increase) Decrease in Other
Assets, Net (4,000) -
Net Cash (Used) Provided by
Investing Activities (61,739) (41,810)
Cash Flows From Financing Activities:
Common Stock Repurchases - (15,816)
Proceeds From Stock Options
Exercised 705 37,562
Net Cash (Used) Provided by
Financing Activities 705 21,746
Net Increase (Decrease) In Cash
and Equivalents 614,921 525,406
Cash and Cash Equivalents at Beginning
of Period 1,789,632 402,913
Cash and Cash Equivalents at
End of Period $ 2,404,553 $ 928,319
</TABLE>
Page 4 of 7
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)FORM 10-QSB
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 AND 1995
(Unaudited)
NOTE A. 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, 1996.
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 June 30, 1996, the Company had cash and cash
equivalents of
$2,404,553. In addition, the Company had other current
assets
totaling $3,846,989 and total current assets of $6,251,542.
Current
liabilities of Mesa Laboratories, Inc. were $491,842 which
resulted in
a current ratio of 12.7:1.
Mesa Laboratories, Inc. has made net capital asset
purchases of
$57,739 for the fiscal year-to-date.
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
June 30,
1996, the Company has purchased 172,220 shares of its common
stock at
a cost of $434,095. In the fourth quarter of fiscal 1996,
the Company
authorized the repurchase of an additional 5% of its
outstanding
shares under the same terms as the existing plan.
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.
Page 5 of 7
FORM 10-QSB
RESULTS OF OPERATIONS
REVENUE
Net sales for the quarter ended June 30, 1996 increased
$189,381
or 11% to $1,842,569 from the $1,653,188 net sales level
achieved in
the same quarter last year. On a year-to-year basis, the
increase in
net sales can be attributed to increases from the Nusonics
and Medical
product groups. For the quarter, the largest sales gain was
recorded
by the Nusonics product group which increased 38% on the
strength of
shipments of the new CM800 Flow Meter.
COST OF GOODS SOLD
Cost of goods sold for the current quarter as a percent
of net
sales was 40% which was an increase of 3% from the 37% level
recorded
one year ago. In real dollars, cost of goods sold increased
$118,721
from the level recorded during the same quarter one year
ago. Cost of
goods sold as a percent of sales decreased in Nusonics and
Medical
products operations which was off-set by an increase in
costs for the
Company's Datatrace products.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the
current
quarter totaled $565,651 which was up 16% or $79,092 from
the $486,559
expended in the same quarter one year ago. During the
quarter,
selling expenses in all three marketing groups show
increases while
Administration costs decreased in comparison to last year.
RESEARCH AND DEVELOPMENT
Research and development for the quarter ended June 30,
1996 was
$52,187 which represents a $27,694 decrease in expense in
relation to
the same quarter last year. This research and development
decrease
reflects decreases in compensation costs compared to one
year ago. In
the second quarter of fiscal 1997 an additional staff member
was added
to the research and development department which should
increase costs
for the remainder of the year.
NET INCOME
Net income for the quarter ended June 30, 1996 rose 8%
to
$342,841 or $.08 per share compared to net income of
$316,744 or $.07
per share in the same quarter last year. Net income for the
quarter
increased due to improvement in total revenues of 11% which
was
partially off-set by a 19% increase in cost of goods sold.
PART II-OTHER INFORMATION
None.
Page 6 of 7
FORM 10-
QSB
MESA LABORATORIES, INC.
JUNE 30, 1996
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)
DATED: August 13, 1996 BY: /S/LUKE R. SCHMIEDER
Luke R. Schmieder
President, Chief
Executive
Officer, Treasurer
and
Director
DATED: August 13, 1996 BY: /S/STEVEN W. PETERSON
Steven W. Peterson
Vice President-
Finance, Chief
Financial and
Accounting
Officer
and Secretary
Page 7 of 7
