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, 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
3904 YOUNGFIELD STREET, WHEAT RIDGE, 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 4,309,137 shares of the Issuer's common stock, no par
value,
outstanding as of September 30, 1997.
Page 1 of 9
ITEM 1. FINANCIAL STATEMENTS FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
<CAPTION>
SEPTEMBER 30, 1997 MARCH
31, 1997
<S>
<C> <C>
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 4,919,813 $ 3,867,549
Accounts Receivable, Net 1,653,538 1,658,090
Inventories 1,842,721
1,963,572
Prepaid Expenses
7,705 31,710
Deferred Income Taxes 93,400
93,400
TOTAL CURRENT ASSETS 8,517,177 7,614,321
PROPERTY, PLANT & EQUIPMENT,
NET
1,667,822 1,589,895
OTHER ASSETS
Patents, Trademarks and
Covenants, Net 921,814
1,002,214
TOTAL ASSETS $ 11,106,813 $ 10,206,430
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 114,995 $
46,282
Accrued Salaries & Payroll Taxes 215,168 237,361
Other Accrued Expenses 154,832
228,030
Taxes Payable
70,224 63,800
TOTAL CURRENT LIABILITIES 555,219 575,473
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,
4,309,137 shares (9/30/97)
and 4,316,236 shares (3/31/97) 3,419,572
3,426,979
Retained Earnings
7,069,222 6,141,178
TOTAL STOCKHOLDERS' EQUITY 10,488,794 9,568,157
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 11,106,813 $ 10,206,430
</TABLE>
Page 2 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Three
Months Three Months
Ended Ended
Sept. 30,
1997 Sept. 30, 1996
<S>
<C> <C>
Sales $
2,158,985 $ 1,802,944
Cost of Goods Sold
780,546 704,385
Selling, General & Administrative 525,338
532,602
Research and Development 79,215
51,157
Other (Income) and Expenses (54,967)
(27,557)
1,330,132 1,260,587
Earnings Before Income Taxes 828,853
542,357
Income Taxes
297,975 184,400
Net Income $
530,878 $ 357,957
Net Income Per Share of
Common Stock $
.12 $ .08
Weighted Average Number of
Shares Outstanding
4,446,000 4,500,000
</TABLE>
Page 3 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Six
Months Six Months
Ended Ended
Sept. 30,
1997 Sept. 30, 1996
<S>
<C> <C>
Sales $
4,005,044 $ 3,645,513
Cost of Goods Sold
1,414,410 1,432,439
Selling, General & Administrative 1,039,415
1,098,452
Research and Development 140,993
103,344
Other (Income) and Expenses (100,511)
(50,520)
2,494,307 2,583,715
Earnings Before Income Taxes 1,510,737
1,061,798
Income Taxes
545,476 361,000
Net Income $
965,261 $ 700,798
Net Income Per Share of
Common Stock $
.22 $ .16
Weighted Average Number of
Shares Outstanding
4,444,000 4,511,000
</TABLE>
Page 4 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Six
Months Six Months
Ended Ended
Sept. 30,
1997 Sept. 30, 1996
<S>
<C> <C>
Increase (Decrease) in Cash and Cash
Equivalents
Cash Flows From Operating Activities:
Net Income $
965,261 $ 700,798
Depreciation and Amortization
136,517 125,318
Change in Assets and Liabilities-
(Increase) Decrease in Accounts Receivable 4,552
611,411
(Increase) Decrease in Inventories
120,851 73,456
(Increase) Decrease in Prepaid Expenses 24,005
78,021
Increase (Decrease) in Accounts Payable 68,713
33,865
Increase (Decrease) in Accrued Liabilities (88,967)
(223,777)
Net Cash (Used) Provided by Operating
Activities
1,230,932 1,399,092
Cash Flows From Investing Activities:
(Increase) Decrease in, Patents and Trademarks
- - (4,001) Capital
Expenditures, Net of Retirements (134,044) (67,288)
Net Cash (Used) Provided by Investing
Activities
(134,044) (71,289)
Cash Flows From Financing Activities:
Common Stock Repurchases
(58,700) -
Proceeds From Stock Options Exercised
14,076 5,642
Net Cash (Used) Provided by Financing
Activities
(44,624) 5,642
Net Increase (Decrease) In Cash and
Equivalents
1,052,264 1,333,445
Cash and Cash Equivalents at Beginning
of Period
3,867,549 1,789,632
Cash and Cash Equivalents at End of Period$ 4,919,813 $
3,123,077
</TABLE>
Page 5 of 9
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 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 September 30, 1997, the Company had cash and cash equivalents of
$4,919,813. In addition, the Company had other current assets totaling
$3,597,364 and total current assets of $8,517,177. Current liabilities of
Mesa Laboratories, Inc. were $555,219 which resulted in a current ratio of
15.3:1.
The Company has made net capital asset purchases of $134,044 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 6 of 9
FORM 10-QSB
RESULTS OF OPERATIONS
REVENUE
Net sales for the six months ended September 30, 1997 increased $359,531
or 10% to $4,005,044 from the $3,645,513 net sales level achieved for the
same
six month period last year. Net sales for the quarter increased $356,041 or
20% to $2,158,985 from the $1,802,944 net sales level achieved in the same
quarter last year. For the first six months of the fiscal year, the Medical
and Datatrace Divisions showed increases in total sales with strong sales of
Reprocessor products and the Humidity Tracers accounting for the increases.
These increases were partially offset by a sales decrease in the Nusonics
product line.
COST OF GOODS SOLD
Cost of goods sold for the first six months as a percent of net sales
was
35% which represents a 4% decrease from the 39% level for the same six month
period last year. Cost of goods sold for the current quarter as a percent of
net sales was 36% which represents a decrease of 3% from the 39% level in the
same quarter one year ago. Most of the decrease realized in the quarter and
for the year-to-date was attributable to a decrease in Datatrace product
costs
as a percent of sales.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the first six months
decreased 5% or $59,037 to $1,039,415 from $1,098,452 in the same period last
year. For the current quarter, selling, general and administrative expenses
totaled $525,338 which was down 1% or $7,264 from $532,602 expended in the
same quarter one year ago. For the current quarter, a 35% decrease in the
Nusonics marketing expense was partially offset by a 15% increase in the
administrative expense.
RESEARCH AND DEVELOPMENT
Research and development for the first six months increased to $140,993
from $103,344 last year and represents a 36% increase. Research and
development for the quarter was $79,215 which represents an increase of
$28,058 or 55% in expense in relation to the same quarter last year. For the
year-to-date and quarter, research and development spending has increased due
to on-going development work on the alkylation acid monitor system and new
development work on a new generation of Nusonics electronics and software
product development for the Datatrace and Medical product lines.
Page 7 of 9
NET INCOMEFORM
10-QSB
Net income for the six months ended September 30, 1997, increased 38% to
$965,261 or $.22 per share from $700,798 or $.16 per share last year. Net
income for the quarter was $530,878 or $.12 per share which rose 48% compared
to net income of $357,957 or $.08 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. This trend during the first
half of the fiscal year is attributable to decreases in Datatrace materials
costs, manufacturing overhead costs of the Medical division, decreases in
service overhead costs of the Medical, Datatrace and Nusonics divisions, and
decreases in the Nusonics division's marketing expenses.
PART II-OTHER INFORMATION
None.
Page 8 of 9
FORM 10-QSB
MESA LABORATORIES, INC.
SEPTEMBER 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: Oct. 30, 1997
BY:
Luke R.
Schmieder
President, Chief Executive
Officer, Treasurer and
Director
DATED: Oct. 30, 1997
BY:
Steven
W. Peterson
Vice
President-Finance, Chief
Financial
and Accounting Officer
and
Secretary
Page 9 of 9
