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Mesa Labs Releases 3rd Quarter Financial Results

February 6, 2014

Mesa Laboratories, Inc. reported record revenues for the third quarter ended Dec. 31, 2013 . In a release on Feb. 3 , the Company noted highlights: -Revenues for the third quarter increased 15 percent percent to $13,116,000 as compared to the same quarter last year -Revenues for the nine months ended Dec. 31, 2013 , increased 10 percent to $37,010,000 as compared to the same period last year -Net income for the third quarter increased 13 percent to $1,746,000 as compared to the same quarter last year -Non-GAAP adjusted net income for the quarter increased 15 percent to $2,273,000 1as compared to the same quarter last year Revenues for the third quarter increased 15 percent to $13,116,000 as compared to $11,361,000 for the same quarter last year. Net income for the third quarter increased 13 percent to $1,746,000 or $0.48 per diluted share of common stock as compared to $1,543,000 or $0.44 per diluted share of common stock for the same quarter last year. Net income for the third quarter last year was impacted by $526,000 , before tax, of Chief Financial Officer transition costs, which were one-time in nature. Revenues for the nine months ended December 31, 2013 , increased 10 percent to $37,010,000 as compared to $33,627,000 for the same period last year. Net income for the nine months ended December 31, 2013 , decreased six percent to $5,538,000 or $1.54 per diluted share of common stock as compared to $5,891,000 or $1.67 per diluted share of common stock for the same period last year. Net income for the nine months ended December 31, 2013 , was impacted by a net expense of $638,000 (before tax) of unusual items, comprised of a $1,106,000 expense for uncollected sales tax liabilities which was partially offset by a gain of $468,000 related to the sale of the Nusonics product line. Net income for the nine months ended December 31, 2012 , was impacted by the same transition costs noted above. On a non-GAAP basis, adjusted net income (which excludes the non- cash impact of amortization of intangible assets, net of tax) for the third quarter increased 15 percent to $2,273,000 or $0.62 per diluted share of common stock as compared to $1,974,000 or $0.56 per diluted share of common stock for the same quarter last year. Adjusted net income for the nine months ended December 31, 2013 , decreased four percent to $6,847,000 or $1.91 per diluted share of common stock as compared to $7,144,000 or $2.03 per diluted share of common stock for the same period last year. Adjusted net income for the third quarter and the nine months ended December 31, 2013 , and 2012 was impacted by the same items noted above. "It was an eventful third quarter for Mesa," said John J. Sullivan , President and CEO. "About halfway through the quarter we completed two business acquisitions, that when combined, are Mesa's largest ever. With these two acquisitions, we now provide products for continuous monitoring (CM) of environmental parameters to healthcare, pharmaceutical manufacturing and a variety of other markets. Sales from these acquisitions helped Mesa achieve record revenues for the quarter. Even without revenues from the new CM Division, our Instruments and Biological Indicators Divisions contributed to Mesa's record quarter, with organic growth in the three to four percent range. Beyond revenues growth, Mesa also posted solid profitability, with a 15 percent increase in adjusted net income, even with the acquisition costs and extra expenses from our CM business integration efforts. A portion of the year-over- year improvement in profitability was due to an unusual expense last fiscal year." "Looking ahead, we expect that the CM business will drive solid revenue growth again in Mesa's fourth fiscal quarter," continued John J. Sullivan . "However, it will take a few quarters to fully realize the profit contribution of this new business. We are in the process of relocating manufacturing, restructuring and building out the sales and support team and integrating administrative functions. With this behind us later in calendar 2014, we should see improved profitability for this new business and for Mesa, as a whole." Mesa Labs pursues a strategy of focusing primarily on quality control products, which are sold into niche markets that are driven by regulatory requirements. ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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