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, 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 3,741,177 shares of the Issuer's common stock, no par value,
outstanding as of June 30, 2000.
Page 1 of 7
ITEM 1. FINANCIAL STATEMENTS
FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
<CAPTION>
<S> <C> <C>
ASSETS JUNE 30, 2000 MARCH 31, 2000
CURRENT ASSETS
Cash and Cash Equivalents $ 2,807,063 $ 2,849,709
Accounts Receivable, Net 2,497,630 2,385,803
Inventories 2,190,029 1,961,055
Prepaid Expenses 19,011 38,331
Deferred Income Taxes 101,163 101,163
TOTAL CURRENT ASSETS 7,614,896 7,336,061
PROPERTY, PLANT & EQUIPMENT, NET 1,573,444 1,574,698
OTHER ASSETS
Intangible Assets, Net 4,519,618 4,623,510
TOTAL ASSETS $13,707,958 $13,534,269
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 251,403 $ 171,974
Accrued Salaries & Payroll Taxes 227,542 323,349
Other Accrued Expenses 278,913 197,108
Taxes Payable 9,862 114,683
TOTAL CURRENT LIABILITIES 767,720 807,114
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,
3,741,177 shares (6/30/00)
and 3,787,476 shares (3/31/00) 2,589,639 2,687,087
Retained Earnings 10,222,908 9,912,377
TOTAL STOCKHOLDERS' EQUITY 12,812,547 12,599,464
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $13,707,958 $13,534,269
</TABLE>
Page 2 of 7
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 2000 June 30, 1999
<S> <C> <C>
Sales $2,260,997 $1,865,607
Cost of Goods Sold 819,391 631,786
Selling, General & Administrative 665,551 528,477
Research and Development 60,671 71,017
Other (Income) and Expenses (31,919) (64,908)
1,513,694 1,166,372
Earnings Before Income Taxes 747,303 699,235
Income Taxes 244,693 244,000
Net Income $ 502,610 $ 455,235
Net Income Per Share (Basic) $ .13 $ .12
Net Income Per Share (Diluted) $ .13 $ .11
Average Common Shares Outstanding (Basic) 3,771,000 3,943,000
Average Common Shares Outstanding (Diluted) 3,791,000 3,981,000
</TABLE>
Page 3 of 7
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
<TABLE>
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 2000 June 30, 1999
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income $ 502,610 $ 455,235
Depreciation and Amortization 130,034 47,220
Change in Assets and Liabilities-
(Increase) Decrease in Accounts
Receivable (111,827) 123,105
(Increase) Decrease in Inventories (228,974) 97,993
(Increase) Decrease in Prepaid Expenses 19,320 14,743
Increase (Decrease) in Accounts Payable 79,429 9,964
Increase (Decrease) in Accrued Liabilities(118,823) (20,460)
Net Cash (Used) Provided by Operating
Activities 271,769 727,800
Cash Flows From Investing Activities:
(Increase) Decrease in Intangible Assets - -
Capital Expenditures, Net of Retirements (24,888) 445
Net Cash (Used) Provided by Investing
Activities (24,888) 445
Cash Flows From Financing Activities:
Treasury Stock Purchases (302,965) (843,028)
Proceeds From Stock Options Exercised 13,438 1,928
Net Cash (Used) Provided by Financing
Activities (289,527) (841,100)
Net Increase (Decrease) In Cash and
Equivalents (42,646) (112,855)
Cash and Cash Equivalents at Beginning
of Period 2,849,709 6,675,417
Cash and Cash Equivalents at End of Period $2,807,063 $6,562,562
</TABLE>
Page 4 of 7
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
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, 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 June 30, 2000, the Company had cash and short term investments of
$2,807,063. In addition, the Company had other current assets totaling
$4,807,833 and total current assets of $7,614,896. Current liabilities of Mesa
Laboratories, Inc. were $767,720 which resulted in a current ratio of 9.9:1.
The Company has made net capital asset purchases of $24,888 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.
RESULTS OF OPERATIONS
REVENUE
Net sales for the three months ended June 30, 2000 increased $395,390 or
21% to $2,260,997 from the $1,865,607 net sales level achieved for the same
three month period last year. For the first fiscal quarter, Medical products
increased over 125% 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 50
percent, and by addition of the Automata product line. Nusonics products
continued its downward trend during the first quarter of the fiscal year. Two
steps were taken late in the quarter with release of the new CP20 Concentration
Analyzer and hiring of a new sales manager for the product line. The Datatrace
line suffered a decrease of over 10% during the first quarter. This decline
was attributable to a decrease in international sales when compared to
the same period last year.
Page 5 of 7
FORM 10-QSB
COST OF GOODS SOLD
Cost of goods sold for the first three months as a percent of net sales
was 36% which represents a 2% increase from the 34% level for the same
three month period last year. Most of the increase realized in the
quarter was attributable to changing mix of products due to the addition
of the new Automata product line and increasing sales of reprocessing
products.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the first three months
increased 26% or $137,074 to $665,551 from $528,477 in the same period last
year. Marketing expenses accounted for an overall 3% decrease with Medical
marketing expenses gaining over 27% from the prior year and Nusonics marketing
expenses decreasing over 37%. The increased marketing expense for the Medical
group can be
attributed to increased advertising, compensation and telephone costs in
marketing its new Automata
products. Decreased Nusonics marketing expenses are attributed to lower
commission and advertising
costs. For the fiscal first quarter, Datatrace Marketing decreased 2
percent. Administration costs for the quarter increased 66% 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 three months decreased to $60,671
from $71,017 which represents a 15% decrease from the same period last year.
During the fiscal quarter, research and development costs decreased due
to lower consulting for Datatrace and Medical software product projects.
Materials costs also decreased as the CP20 Concentration Analyzer project
came to completion during the quarter.
NET INCOME
Net income for the three months ended June 30, 2000 increased 10% to
$502,610 or $.13 per share from $455,235 or $.11 per share last year. During
the fiscal first quarter, net income increased due chiefly to increased revenue
levels. This increase for the quarter was partially offset by higher
administration costs.
PART II-OTHER INFORMATION
None.
Page 6 of 7
FORM 10-QSB
MESA LABORATORIES, INC.
JUNE 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: August 14, 2000 BY: /s/ Luke R. Schmieder
Luke R. Schmieder
President, Chief Executive Officer,
Treasurer and Director
DATED: August 14, 2000 BY: /s/ Steven W. Peterson
Steven W. Peterson
Vice President-Finance, Chief
Financial and Accounting Officer and
Secretary
Page 7 of 7
[ARTICLE] 5
<TABLE>
<S> <C> <C>
[PERIOD-TYPE] 3-MOS 3-MOS
[FISCAL-YEAR-END] MAR-31-2000 MAR-31-1999
[PERIOD-END] JUN-30-2000 JUN-30-1999
[CASH] 2,807,063 6,562,562
[SECURITIES] 0 0
[RECEIVABLES] 2,562,630 2,419,348
[ALLOWANCES] 65,000 33,545
[INVENTORY] 2,190,029 1,643,822
[CURRENT-ASSETS] 7,614,896 9,937,481
[PP&E] 2,907,214 2,759,920
[DEPRECIATION] (1,333,770) (1,175,672)
[TOTAL-ASSETS] 13,707,958 12,242,790
[CURRENT-LIABILITIES] 767,720 645,031
[BONDS] 0 0
[PREFERRED-MANDATORY] 0 0
[PREFERRED] 0 0
[COMMON] 2,589,639 2,588,493
[OTHER-SE] 10,222,908 8,931,266
[TOTAL-LIABILITY-AND-EQUITY] 13,707,958 12,242,790
[SALES] 2,260,997 1,865,607
[TOTAL-REVENUES] 2,260,997 1,865,607
[CGS] 819,391 631,786
[TOTAL-COSTS] 726,222 599,494
[OTHER-EXPENSES] 0 0
[LOSS-PROVISION] 0 0
[INTEREST-EXPENSE] 0 0
[INCOME-PRETAX] 747,303 699,235
[INCOME-TAX] 244,693 244,000
[INCOME-CONTINUING] 502,610 455,235
[DISCONTINUED] 0 0
[EXTRAORDINARY] 0 0
[CHANGES] 0 0
[NET-INCOME] 502,610 455,235
[EPS-BASIC] .13 .12
[EPS-DILUTED] .13 .11
</TABLE>
