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, 1997
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
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 4,307,755 shares of the Issuer's common stock, no par value,
outstanding as of June 30, 1997.
Page 1 of 7<PAGE>ITEM 1. FINANCIAL STATEMENTS FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
<CAPTION>
<S>
<C> <C>
ASSETS JUNE 30, 1997 MARCH 31,
1997
CURRENT ASSETS
Cash and Cash Equivalents $ 4,557,952 $ 3,867,549
Accounts Receivable, Net 1,336,663 1,658,090
Inventories 2,049,281
1,963,572
Prepaid Income Tax
- - -
Prepaid Expenses 16,759
31,710
Deferred Income Taxes 93,400
93,400
TOTAL CURRENT ASSETS 8,054,055 7,614,321
PROPERTY, PLANT &
EQUIPMENT, NET 1,567,929 1,589,895
OTHER ASSETS
Patents, Trademarks and
Covenants, Net 962,014
1,002,214
TOTAL ASSETS $ 10,583,998 $ 10,206,430
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 57,662 $
46,282
Accrued Salaries & Payroll Taxes 120,811 237,361
Other Accrued Expenses 123,873 228,030
Taxes Payable 267,444
63,800
TOTAL CURRENT LIABILITIES 569,790 575,473
LONG TERM LIABILITIES
Deferred Income Taxes Payable 62,800 62,800
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value
- - -
Common Stock, No Par Value;
authorized 8,000,000 shares;
issued and outstanding,
4,307,755 shares (06/30/97)
and 4,316,236 shares (3/31/97) 3,413,063 3,426,979
Retained Earnings 6,538,345
6,141,178
TOTAL STOCKHOLDERS'
EQUITY 9,951,408
9,568,157
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 10,583,998 $ 10,206,430
</TABLE>
Page 2 of 7<PAGE>ITEM 1. FINANCIAL STATEMENTS (CONTINUED)FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
<S>
<C> <C>
Three
Months Three Months
Ended Ended
June 30,
1997 June 30, 1996
Sales $
1,846,058 $ 1,842,569
Cost of Goods Sold 633,864
728,254
Selling, General & Administrative 514,077 565,651
Research and Development 61,778
52,187
Other (Income) and Expenses (45,544)
(22,964)
1,164,175 1,323,128
Earnings Before Income Taxes 681,883 519,441
Income Taxes
247,500 176,600
Net Income $ 434,383
$ 342,841
Net Income Per Share of
Common Stock $ .10
$ .08
Weighted Average Number of
Shares Outstanding 4,444,000
4,534,000
</TABLE>
Page 3 of 7<PAGE>ITEM 1. FINANCIAL STATEMENTS
(CONTINUED) FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
<S>
<C> <C>
Three
Months Three Months
Increase (Decrease) in Cash and Cash Ended
Ended
Equivalents June 30, 1997
June 30, 1996
Cash Flows From Operating Activities:
Net Income $ 434,383
$ 342,841
Depreciation and Amortization 68,259
62,501
Change in Assets and Liabilities-
(Increase) Decrease in Accounts Receivable 321,427 350,163
(Increase) Decrease in Inventories (85,709)
57,117
(Increase) Decrease in Prepaid Expenses 14,951
11,852
(Increase) Decrease in Deposits
- - -
Increase (Decrease) in Accounts Payable 11,380
(34,299)
Increase (Decrease) in Accrued Liabilities (17,063)
(114,220)
Net Cash (Used) Provided by Operating
Activities
747,628 675,955
Cash Flows From Investing Activities:
(Increase) Decrease in Trademarks
- - (4,000)
Capital Expenditures, Net of Retirements (6,093)
(57,739)
Net Cash (Used) Provided by Investing Activities (6,093) (61,739)
Cash Flows From Financing Activities:
Treasury Stock Purchases
(58,700) -
Proceeds From Stock Options Exercised 7,568
705
Net Cash (Used) Provided by Financing
Activities
(51,132) 705
Net Increase (Decrease) In Cash and
Equivalents
690,403 614,921
Cash and Cash Equivalents at Beginning
of Period
3,867,549 1,789,632
Cash and Cash Equivalents at End of Period $ 4,557,952 $ 2,404,553
</TABLE>
Page 4 of 7<PAGE>ITEM 1. FINANCIAL STATEMENTS (CONTINUED)FORM 10-QSB
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
(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, 1997.
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, 1997, the Company had cash and cash equivalents of
$4,557,952. In addition, the Company had other current assets totaling
$3,496,103 and total current assets of $8,054,055. Current liabilities of
Mesa Laboratories, Inc. were $569,790 which resulted in a current ratio of
14.1:1.
The Company has made net capital asset purchases of $6,093 for the
fiscal
year-to-date.
The Company has announced its intention to repurchase up to 10% 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 made with existing cash reserves.
Page 5 of 7<PAGE>FORM 10-QSB
RESULTS OF OPERATIONS
REVENUE
Net sales for the three months ended June 30, 1997 increased $3,489 or
.2% to $1,846,058 from the $1,842,569 net sales level achieved for the same
three month period last year. For the first fiscal quarter, the Medical and
Datatrace product groups showed increases which were off-set by a decrease in
Nusonics sales. Strong sales of Reprocessor products and the new Humidity
Tracers accounted for the increases in Medical and Datatrace sales, while
decreases in Concentration Analyzers and Pipeline Interface Detectors were
responsible for the decline in Nusonics sales.
COST OF GOODS SOLD
Cost of goods sold for the first three months as a percent of net sales
was 34% which represents a 6% decrease over the 40% level for the same three
month period last year. Most of the decrease realized in the quarter was
attributable to a decrease in Datatrace product costs as a percent of sales.
The decrease in Datatrace costs was realized from declines in materials,
scrap
and service parts cost which were attributable to the new SMT circuit
introduced during the prior fiscal year.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the first three months
decreased 9% or $51,574 to $514,077 from $565,651 in the same period last
year. For the current quarter, a 48% decrease in the Nusonics marketing
expense was partially off-set by a 15% increase in the administrative expense.
RESEARCH AND DEVELOPMENT
Research and development for the first three months increased to $61,778
from $52,187 which represents an 18% increase over the same period last
year.
During the fiscal first quarter, research and development activity increased
due to a higher activity related to the Pressure Tracer project and the
resumption of development of the Windows version of the Datatrace software
package.
NET INCOME
Net income for the three months ended June 30, 1997 increased 27% to
$434,383 or $.10 per share from $342,841 or $.08 per share last year. During
the fiscal first quarter, cost of goods sold improved due to introduction of
the new SMT circuit for the Company's Datatrace products. The SMT circuit
reduced both material and scrap costs. In addition, Nusonic's sales expenses
have declined due chiefly to a decline in outside commission costs as terms
to
certain foreign representatives were restructured in favor of net pricing.
PART II-OTHER INFORMATION
None.
Page 6 of 7<PAGE>FORM 10-QSB
MESA LABORATORIES, INC.
JUNE 30, 1997
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 14, 1997 BY: /s/ Luke R. Schmieder
Luke R. Schmieder
President, Chief
Executive
Officer,
Treasurer and
Director
DATED: August 14, 1997 BY: /s/ Steven W. Peterson
Steven W.
Peterson
Vice
President-Finance, Chief
Financial and
Accounting Officer
and Secretary
