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 December 31, 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 4,269,146 shares of the Issuer's common stock, no
par value, outstanding as of December 31, 1995.
Page 1 of 9
ITEM 1. FINANCIAL STATEMENTS FORM 10-QSB
<TABLE>
<CAPTION>
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
ASSETS DECEMBER 31, 1995 MARCH 31, 1995
<S> <C> <C>
CURRENT ASSETS
Cash and Cash Equivalents $ 1,161,854 $ 402,913
Accounts Receivable, Net 1,947,008 1,711,489
Inventories 2,070,235 2,032,638
Prepaid Income Tax - 53,530
Prepaid Expenses 22,866 38,824
Deferred Income Taxes 72,815 72,815
TOTAL CURRENT ASSETS 5,274,778 4,312,209
PROPERTY, PLANT & EQUIPMENT, NET 1,597,564 1,311,243
OTHER ASSETS
Patents, Trademarks and
Covenants, Net 1,136,361 1,234,317
Deposits and Other Assets 1,530 7,964
TOTAL ASSETS $ 8,010,233 $ 6,865,733
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 102,346 $ 118,703
Accrued Salaries & Payroll Taxes 175,319 219,144
Other Accrued Expenses 117,592 158,223
Taxes Payable 78,436 19,602
TOTAL CURRENT LIABILITIES 473,693 515,672
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,
4,269,146 shares (12/31/95)
and 4,233,761 shares (3/31/95) 3,096,979 3,045,532
Retained Earnings 4,373,911 3,238,879
TOTAL STOCKHOLDERS' EQUITY 7,470,890 6,284,411
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 8,010,233 $ 6,865,733
</TABLE>
Page 2 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
<TABLE>
<CAPTION>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Three Months
Ended Ended
Dec 31, 1995 Dec 31, 1994
<S> <C> <C>
Sales $ 2,216,574 $ 1,700,367
Cost of Goods Sold 888,253 672,823
Selling, General & Administrative 551,658 448,765
Research and Development 52,292 84,659
Other (Income) and Expenses (15,895) (12,815)
1,476,308 1,193,432
Earnings Before Income Taxes 740,266 506,935
Income Taxes 259,100 174,900
Net Income $ 481,166 $ 332,035
Net Income Per Share of
Common Stock $ .11 $ .08
Weighted Average Number of
Shares Outstanding 4,401,000 4,310,000
</TABLE>
Page 3 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
<TABLE>
<CAPTION>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Nine Months
Ended Ended
Dec 31, 1995 Dec 31, 1994
<S> <C> <C>
Sales $ 5,668,666 $ 4,700,652
Cost of Goods Sold 2,218,516 1,777,593
Selling, General & Administrative 1,538,503 1,396,524
Research and Development 201,816 258,692
Other (Income) and Expenses (36,301) (28,199)
3,922,534 3,404,610
Earnings Before Income Taxes 1,746,132 1,296,042
Income Taxes 611,100 447,100
Net Income $ 1,135,032 $ 848,942
Net Income Per Share of
Common Stock $ .26 $ .20
Weighted Average Number of
Shares Outstanding 4,352,000 4,350,000
</TABLE>
Page 4 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
<TABLE>
<CAPTION>
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Nine Months
Increase (Decrease) in Cash and Cash Ended Ended
Equivalents Dec 31, 1995 Dec 31, 1994
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income $ 1,135,032 $ 848,942
Depreciation and Amortization 217,939 190,018
Change in Assets and Liabilities-
(Increase) Decrease in Accounts Receivable (235,519) (81,869)
(Increase) Decrease in Inventories (37,597)
(368,516)
(Increase) Decrease in Prepaid Expenses 69,488
(1,540)
(Increase) Decrease in Deposits 6,434 (50,000)
Increase (Decrease) in Accounts Payable (16,357)
11,869
Increase (Decrease) in Accrued Liabilities (25,622) (172,315)
Net Cash (Used) Provided by Operating
Activities 1,113,798 376,589
Cash Flows From Investing Activities:
(Increase) Decrease in Trademarks (1,549)
- -
Capital Expenditures, Net of Retirements (404,755) (44,522)
Net Cash (Used) Provided by Investing Activities (406,304)
(44,522)
Cash Flows From Financing Activities:
Increase (Decrease) in Notes Payable & Other - (22,874)
Treasury Stock Purchases (30,815) (275,867)
Proceeds From Stock Options Exercised 82,262
4,042
Net Cash (Used) Provided by Financing Activities 51,447
(294,699)
Net Increase (Decrease) In Cash and Equivalents 758,941 37,368
Cash and Cash Equivalents at Beginning
of Period 402,913 923,242
Cash and Cash Equivalents at End of Period $ 1,161,854 $ 960,610
</TABLE>
Page 5 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1995 AND 1994
(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, 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 December 31, 1995, the Company had cash and cash equivalents of
$1,161,854. In addition, the Company had other current assets totaling
$4,112,924 and total current assets of $5,274,778. Current liabilities
of Mesa Laboratories, Inc. were $473,693 which resulted in a current
ratio of 11.1:1.
The Company has made net capital asset purchases of $404,755. 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 December 31,
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.
Page 6 of 9
FORM 10-QSB
RESULTS OF OPERATIONS
REVENUE
Net sales for the nine months ended December 31, 1995 increased
$968,014 or 21% to $5,668,666 from the $4,700,652 net sales level
achieved for the same nine month period last year. Net sales for the
quarter increased $516,207 or 30% to $2,216,574 from the $1,700,367 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.
COST OF GOODS SOLD
Cost of goods sold for the first nine months as a percent of net
sales was 39% representing an increase of 1% from the 38% level one
year ago. Cost of goods sold for the current quarter as a percent of
net sales was 40% which was unchanged from the 40% level in the same
quarter one year ago. The year-to-date showed an increase in cost of
goods sold as a percentage of sales. Most of this increase was
realized in the second 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 nine
months rose 10% or $141,979 to $1,538,503 from $1,396,524 in the same
period last year. Selling, general and administrative expenses for the
current quarter totaled $551,658 which was up 23% or $102,893 from
$448,765 expended in the same quarter one year ago. For the year,
increases in Administration, Datatrace marketing and Nusonics marketing
expenses were partially off-set by a decrease in Medical 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, and increased commission expenses due
to higher sales volume.
RESEARCH AND DEVELOPMENT
Research and development for the first nine months decreased to
$201,816 from $258,692 last year. Research and development for the
quarter was $52,292 which represents a $32,367 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.
Page 7 of 9
NET INCOME FORM 10-QSB
Net income for the nine months ended December 31, 1995, increased
34% to $1,135,032 or $.26 per share from $848,942 or $.20 per share
last year. Net income for the quarter was $481,166 or $.11 per share
which rose 45% compared to net income of $332,035 or $.08 per share in
the same quarter last year. During the third quarter and first nine
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.
PART II-OTHER INFORMATION
None.
Page 8 of 9
FORM 10-QSB
MESA LABORATORIES, INC.
DECEMBER 31, 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)
DATED: February 12, 1996 BY:
Luke R. Schmieder
President, Chief Executive
Officer, Treasurer and
Director
DATED: February 12, 1996 BY:
Steven W. Peterson
Vice President-Finance, Chief
Financial and Accounting Officer
and Secretary
Page 9 of 9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> DEC-31-1995
<CASH> 1,161,854
<SECURITIES> 0
<RECEIVABLES> 1,947,008
<ALLOWANCES> 0
<INVENTORY> 2,070,235
<CURRENT-ASSETS> 5,274,778
<PP&E> 1,597,564
<DEPRECIATION> 0
<TOTAL-ASSETS> 8,010,233
<CURRENT-LIABILITIES> 473,693
<BONDS> 0
0
0
<COMMON> 3,096,979
<OTHER-SE> 4,373,911
<TOTAL-LIABILITY-AND-EQUITY> 7,470,890
<SALES> 5,668,666
<TOTAL-REVENUES> 5,668,666
<CGS> 2,218,516
<TOTAL-COSTS> 1,704,018
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,746,132
<INCOME-TAX> 611,100
<INCOME-CONTINUING> 1,135,032
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,135,032
<EPS-PRIMARY> .26
<EPS-DILUTED> .26
</TABLE>
