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, 2000
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 3,688,289 shares of the Issuer's common stock, no par value,
outstanding as of September 30, 2000.
<TABLE>
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
<CAPTION>
<S>
ASSETS SEPTEMBER 30, 2000 MARCH 31, 2000
CURRENT ASSETS <C> <C>
Cash and Cash Equivalents $ 2,773,362 $ 2,849,709
Accounts Receivable, Net 2,767,700 2,385,803
Inventories 2,127,990 1,961,055
Prepaid Expenses 27,404 38,331
Deferred Income Taxes 101,163 101,163
TOTAL CURRENT ASSETS 7,797,619 7,336,061
PROPERTY, PLANT & EQUIPMENT, NET 1,549,226 1,574,698
OTHER ASSETS
Intangible Assets, Net 4,415,726 4,623,510
TOTAL ASSETS $13,762,571 $13,534,269
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 99,143 $ 171,974
Accrued Salaries & Payroll Taxes 237,294 323,349
Other Accrued Expenses 216,735 197,108
Taxes Payable 43,169 114,683
TOTAL CURRENT LIABILITIES 596,341 807,114
LONG TERM LIABILITIES
Deferred Income Taxes Payable 127,691 127,691
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value - -
Common Stock, No Par Value;
authorized 8,000,000 shares;
issued and outstanding,
3,688,289 shares (9/30/00)
and 3,787,476 shares (3/31/00) 2,479,935 2,687,087
Retained Earnings 10,558,604 9,912,377
TOTAL STOCKHOLDERS' EQUITY 13,038,539 12,599,464
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $13,762,571 $13,534,269
</TABLE>
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Three Months Three Months
Ended Ended
Sept. 30, 2000 Sept. 30, 1999
<S> <C> <C>
Sales $2,345,519 $1,803,475
Cost of Goods Sold 887,072 684,306
Selling, General & Administrative 603,292 503,212
Research and Development 65,076 59,885
Other (Income) and Expenses (39,524) (67,853)
1,515,916 1,179,550
Earnings Before Income Taxes 829,603 623,925
Income Taxes 303,000 219,000
Net Income $ 526,603 $ 404,925
Net Income Per Share (Basic) $ .14 $ .11
Net Income Per Share (Diluted) $ .14 $ .11
Average Common Shares Outstanding (Basic) 3,724,000 3,819,000
Average Common Shares Outstanding (Diluted)3,762,000 3,849,000
</TABLE>
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Six Months Six Months
Ended Ended
Sept. 30, 2000 Sept. 30, 1999
<S> <C> <C>
Sales $4,606,516 $3,669,082
Cost of Goods Sold 1,706,463 1,316,092
Selling, General & Administrative 1,268,843 1,031,689
Research and Development 125,747 130,902
Other (Income) and Expenses (71,443) (132,761)
3,029,610 2,345,922
Earnings Before Income Taxes 1,576,906 1,323,160
Income Taxes 547,693 463,000
Net Income $1,029,213 $ 860,160
Net Income Per Share (Basic) $ .27 $ .22
Net Income Per Share (Diluted) $ .27 $ .22
Average Common Shares Outstanding (Basic) 3,747,000 3,881,000
Average Common Shares Outstanding (Diluted)3,774,000 3,911,000
</TABLE>
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Six Months Six Months
Ended Ended
Sept. 30, 2000 Sept. 30, 1999
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income $1,029,213 $ 860,160
Depreciation and Amortization 260,068 106,586
Change in Assets and Liabilities-
(Increase) Decrease in Accounts Receivable (381,897) 43,066
(Increase) Decrease in Inventories (166,935) 124,163
(Increase) Decrease in Prepaid Expenses 10,927 28,896
Increase (Decrease) in Accounts Payable (72,831) 27,197
Increase (Decrease) in Accrued Liabilities (137,942) (187,020)
Net Cash (Used) Provided by Operating
Activities 540,603 1,003,048
Cash Flows From Investing Activities:
Capital Expenditures (26,812) (2,039)
Net Cash (Used) Provided by Investing Activities (26,812) (2,039)
Cash Flows From Financing Activities:
Treasury Stock Purchases (604,081) (1,486,503)
Proceeds From Stock Options Exercised 13,943 22,959
Net Cash (Used) Provided by Financing Activities (590,138) (1,463,544)
Net Increase (Decrease) In Cash and Cash Equivalents (76,347) (462,535)
Cash and Cash Equivalents at Beginning of Period 2,849,709 6,675,417
Cash and Cash Equivalents at End of Period $2,773,362 $6,212,882
</TABLE>
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 AND 1999
NOTE A. SUMMARY OF ACCOUNTING POLICIES
The summary of the Issuer's significant accounting policies is incorporated
by reference to the Company's annual report on Form 10KSB, at March 31, 2000.
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, 2000, the Company had cash and short term investments of
$2,773,362. In addition, the Company had other current assets totaling
$5,024,257 and total current assets of $7,797,619. Current liabilities of Mesa
Laboratories, Inc. were $596,341 which resulted in a current ratio of 13.1:1.
The Company has made net capital asset purchases of $26,812 for the fiscal
year-to-date.
The Company has instituted a program to repurchase up to 500,000
shares 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 canceled and repurchases
will be made with existing cash reserves. During the first half of the fiscal
year, the Company repurchased 121,922 shares of its outstanding common stock.
RESULTS OF OPERATIONS
REVENUE
Net sales for the six months ended September 30, 2000 increased $937,434
or
26% to $ 4,606,516 from the $3,669,082 net sales level achieved for the same
six month period last year. Net sales for the quarter increased $542,044
or 30% to $2,345,519 from the $1,803,475 net sales level achieved in the
same quarter last year. For the first six months, Medical products
increased over 160% which was off-set by decreases in Nusonics and
Datatrace sales. The Medical products sales increase was attributable
to sales of Reprocessor products and Reuse Data
Management systems which improved over 45%, and by addition of the
Automata product line. Nusonics products continued its downward trend for the
first six months, but increased over 30% in the latest quarter of the
fiscal year. The Datatrace line suffered a decrease of over 20% during
the first six months. This decline was attributable to a decrease in
international sales when compared to the same period last year.
COST OF GOODS SOLD
Cost of goods sold for the first six months as a percent of net sales was
37% which represents a 1% increase from the 36% level for the same six-month
period last year. Cost of goods sold for the current quarter as a percent of
net sales was 38%, representing no change compared to the 38% level in the same
quarter last year. The increase realized during the first six months of fiscal
2001 was attributable to changing mix of products sold due to the addition of
the new Automata products and increasing sales of Reprocessing products.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the first six months
increased 23% or $237,154 to $1,268,843 from $1,031,689 in the same period last
year. For the current quarter, selling, general and administrative expenses
totaled $603,292, which was up 20% or $100,080 from $503,212 expended in the
same quarter one year ago. For the first six months, marketing expenses
accounted for an overall one percent increase with Medical marketing expenses
gaining over 78% from the prior year and Nusonics marketing expenses decreasing
over 26%. The increased marketing expense for the Medical products can be
attributed to increased advertising, compensation and telephone costs in
marketing its new Automata products and is only half the rate of increase in
Medical sales dollars. Decreased Nusonics marketing expenses are attributed to
lower commission and advertising costs. For the first six months, Datatrace
marketing costs decreased 17%. Administration costs for the quarter
increased 55% due to increased amortization and consulting expense associated
with the acquisition of Automata Instrumentation, Inc. and Company matching
expense for the 401(k) plan which was initiated in January, 2000.
RESEARCH AND DEVELOPMENT
Research and development for the first six months decreased to $125,747
from $130,902 which represents a 4% decrease from the same period last year.
Research and development for the quarter was $65,076 which represents an
increase of $5,191 or 9% from the $59,885 level expensed in the same quarter
last year. During the first six months of fiscal 2001, research and
development costs decreased due to lower consulting for Datatrace and
Medical software product projects. For the second fiscal quarter,
spending increased due mainly
to increased material expenditures for prototype development of the Company's
new Datatrace logging products.
NET INCOME
Net income for the six months ended September 30, 2000 increased 20% to
$1,029,213 or $.27 per share from $860,160 or $.22 per share last year. Net
income for the quarter was $526,603 or $.14 per share compared to net income of
$404,925 or $.11 per share in the same quarter last year. During the fiscal
second quarter and first six months, net income increased due chiefly to
increased revenue levels. This increase for the periods was partially off-set
by higher amortization costs and lower interest income due to the
acquisition of Automata Instrumentation, Inc.
PART II-OTHER INFORMATION
None.
MESA LABORATORIES, INC.
SEPTEMBER 30, 2000
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: 11/14/00 BY: /s/ Luke R. Schmieder
Luke R. Schmieder
President, Chief Executive Officer,
Treasurer and Director
DATED: 11/14/00 BY: /s/ Steven W. Peterson
Steven W. Peterson
Vice President-Finance, Chief
Financial and Accounting Officer and
Secretary
[ARTICLE] 5
<TABLE>
<S> <C> <C>
[PERIOD-TYPE] 6-MOS 6-MOS
[FISCAL-YEAR-END] MAR-31-2001 MAR-31-2000
[PERIOD-END] SEP-30-2000 SEP-30-1999
[CASH] 2,773,362 6,212,882
[SECURITIES] 0 0
[RECEIVABLES] 2,837,700 1,755,045
[ALLOWANCES] 70,000 54,045
[INVENTORY] 2,127,990 1,961,055
[CURRENT-ASSETS] 7,797,619 9,627,517
[PP&E] 2,909,138 2,762,404
[DEPRECIATION] 1,359,912 1,201,814
[TOTAL-ASSETS] 13,762,571 11,875,944
[CURRENT-LIABILITIES] 596,341 495,704
[BONDS] 0 0
[PREFERRED-MANDATORY] 0 0
[PREFERRED] 0 0
[COMMON] 2,479,935 2,384,767
[OTHER-SE] 10,558,604 8,917,472
[TOTAL-LIABILITY-AND-EQUITY] 13,762,571 11,875,944
[SALES] 4,606,516 3,669,082
[TOTAL-REVENUES] 4,606,516 3,669,082
[CGS] 1,706,463 1,316,092
[TOTAL-COSTS] 3,029,610 2,345,922
[OTHER-EXPENSES] 0 0
[LOSS-PROVISION] 0 0
[INTEREST-EXPENSE] 0 0
[INCOME-PRETAX] 1,576,906 1,323,160
[INCOME-TAX] 547,693 463,000
[INCOME-CONTINUING] 1,029,213 860,160
[DISCONTINUED] 0 0
[EXTRAORDINARY] 0 0
[CHANGES] 0 0
[NET-INCOME] 1,029,213 860,160
[EPS-BASIC] .27 .22
[EPS-DILUTED] .27 .22
</TABLE>
