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 December 31, 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 3,653,315 shares of the Issuer's common stock, no par
value, outstanding as of December 31, 2000.
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
ASSETS DECEMBER 31, 2000 MARCH 31, 2000
CURRENT ASSETS
Cash and Cash Equivalents $ 2,847,332 $2,849,709
Accounts Receivable, Net 3,067,520 2,385,803
Inventories 2,374,484 1,961,055
Prepaid Expenses 53,989 38,331
Deferred Income Taxes 101,163 101,163
TOTAL CURRENT ASSETS 8,444,488 7,336,061
PROPERTY, PLANT & EQUIPMENT, NET 1,576,325 1,574,698
OTHER ASSETS
Intangible Assets, Net 4,311,834 4,623,510
TOTAL ASSETS $14,332,647 $13,534,269
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 129,240 $ 171,974
Accrued Salaries & Payroll Taxes 313,676 323,349
Other Accrued Expenses 204,010 197,108
Taxes Payable 321,679 114,683
TOTAL CURRENT LIABILITIES 968,605 807,114
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,
3,653,315 shares (12/31/00)
and 3,787,476 shares (3/31/00) 2,402,991 2,687,087
Retained Earnings 10,833,360
9,912,377
TOTAL STOCKHOLDERS' EQUITY 13,236,351 12,599,464
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $14,332,647 $13,534,269
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Three Months
Ended Ended
Dec. 31, 2000 Dec. 31, 1999
Sales $2,010,386 $2,277,250
Cost of Goods Sold 721,515 735,313
Selling, General & Administrative 611,497 734,803
Research and Development 77,683 73,714
Other (Income) and Expenses (45,909) (60,438)
1,364,786 1,483,392
Earnings Before Income Taxes 645,600 793,858
Income Taxes 237,000 280,228
Net Income $ 408,600 $ 513,630
Net Income Per Share (Basic) $ .11 $ .14
Net Income Per Share (Diluted) $ .11 $ .14
Average Common Shares Outstanding (Basic) 3,671,000 3,739,000
Average Common Shares Outstanding (Diluted)3,725,000 3,753,000
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
Nine Months Nine Months
Ended Ended
Dec. 31, 2000 Dec. 31, 1999
Sales $6,616,902 $5,946,332
Cost of Goods Sold 2,427,978 2,051,404
Selling, General & Administrative 1,880,903 1,766,492
Research and Development 203,430 204,617
Other (Income) and Expenses (117,358) (193,198)
4,394,953 3,829,315
Earnings Before Income Taxes 2,221,949 2,117,017
Income Taxes 784,693 743,228
Net Income $1,437,256 $1,373,789
Net Income Per Share (Basic) $ .39 $ .36
Net Income Per Share (Diluted) $ .38 $ .36
Average Common Shares Outstanding (Basic) 3,722,000 3,833,000
Average Common Shares Outstanding (Diluted)3,751,000 3,861,000
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Nine Months
Ended Ended
Dec. 31, 2000 Dec. 31, 1999
Cash Flows From Operating Activities:
Net Income $1,437,256 $1,373,789
Depreciation and Amortization 390,103 201,943
Change in Assets and Liabilities-
(Increase) Decrease in Accounts
Receivable (681,717) (489,315)
(Increase) Decrease in Inventories (413,429) (372,046)
(Increase) Decrease in Prepaid Expenses (15,658) (14,194)
Increase (Decrease) in Accounts Payable (42,734) 148,007
Increase (Decrease) in Accrued Liabilities 204,225 94,159
Net Cash (Used) Provided by Operating
Activities 878,046 942,343
Cash Flows From Investing Activities:
(Increase) Decrease in Intangible Assets - (4,024,546)
Capital Expenditures, Net of Retirements (80,053) (43,303)
Net Cash (Used) Provided by Investing
Activities (80,053) (4,067,849)
Cash Flows From Financing Activities:
Stock Issued for Acquisitions - 387,500
Treasury Stock Purchases (814,312) (1,829,905)
Proceeds From Stock Options Exercised 13,942 71,334
Net Cash (Used) Provided by Financing
Activities (800,370) (1,371,071)
Net Increase (Decrease) In Cash and
Equivalents (2,377) (4,496,577)
Cash and Cash Equivalents at Beginning
of Period 2,849,709 6,675,417
Cash and Cash Equivalents at End of Period $2,847,332 $2,178,840
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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 December 31, 2000, the Company had cash and short term
investments of $2,847,332. In addition, the Company had other current
assets totaling $5,597,156 and total current assets of $8,444,488.
Current liabilities of Mesa Laboratories, Inc. were $968,605 which
resulted in a current ratio of 8.7:1.
The Company has made net capital asset purchases of $80,053 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 nine months of the current fiscal year,
the Company repurchased 157,051 shares of its outstanding common
stock.
RESULTS OF OPERATIONS
REVENUE
Net sales for the nine months ended December 31, 2000 increased
$670,570 or 11% to $ 6,616,902 from the $5,946,332 net sales level
achieved for the same nine month period last year. Net sales for the
quarter decreased $266,864 or 12% to $2,010,386 from the $2,277,250
net sales level achieved in the same quarter last year. For the first
nine months, Medical products increased over 100% which was off-set by
24% decreases in Nusonics and Datatrace sales. The Medical products
sales increase was attributable to the addition of the Automata
product line. Nusonics products continued its downward trend for the
first nine months. The Datatrace line suffered a decrease of 24%
during the first nine months. This decline was attributable to a
decrease in international sales when compared to the same period last
year. In total, third fiscal quarter sales were affected by
production delays due to parts shortages. At quarter end, the Company
was carrying a backlog of over $400,000 which was more than double
normal levels.
COST OF GOODS SOLD
Cost of goods sold for the first nine months as a percent of net
sales was 37% which represents a 3% increase from the 34% level for
the same nine month period last year. Cost of goods sold for the
current quarter as a percent of net sales was 36%, representing a 4%
increase compared to the 32% level in the same quarter last year. The
increase realized during the first nine 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 nine
months increased 6% or $114,411 to $1,880,903 from $1,766,492 in the
same period last year.
For the current quarter, selling, general and administrative expenses
totaled $611,497, which was down 17% or $123,306 from $734,803
expended in the same quarter one year ago. For the first nine months,
marketing expenses accounted for a decrease of less than one percent
with Medical marketing expenses gaining 58% from the prior year and
Nusonics marketing expenses decreasing over 37%. 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 lower than the rate of increase in
Medical sales dollars. Decreased Nusonics marketing expenses are
attributed to lower commission and advertising costs. For the first
nine months, Datatrace marketing costs decreased 13%. Administration
costs for the first nine months increased 14% due to increased
amortization and consultant expense associated with the acquisition of
Automata Instrumentation, Inc.
RESEARCH AND DEVELOPMENT
Research and development for the first nine months decreased to
$203,430 from $204,617 which represents a decrease of less than 1%
from the same period last year. Research and development for the
quarter was $77,683 which represents an increase of $3,969 or 5% from
the $73,714 level expensed in the same quarter last year. During the
first nine months of fiscal 2001, the change in research and
development costs was negligible. For the third fiscal quarter,
spending increased due mainly to increased labor costs for prototype
development of the Company's new Datatrace logging products.
NET INCOME
Net income for the nine months ended December 31, 2000 increased
5% to $1,437,256 or $.38 per share from $1,373,789 or $.36 per share
last year. Net income for the quarter was $408,600 or $.11 per share
compared to net income of $513,630 or $.14 per share in the same
quarter last year. During the first nine 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. For the fiscal third quarter, net income decreased due chiefly
to lower revenue levels.
PART II-OTHER INFORMATION
None.
MESA LABORATORIES, INC.
DECEMBER 31, 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: 2/14/01 BY: /s/ Luke R. Schmieder
. Luke R. Schmieder
President, Chief Executive
Officer, Treasurer and Director
DATED: 2/14/01 BY: /s/ Steven W. Peterson
. Steven W. Peterson
Vice President-Finance, Chief
Financial and Accounting
Officer and Secretary
[ARTICLE] 5
[PERIOD-TYPE] 9-MOS
[FISCAL-YEAR-END] MAR-31-2001
[PERIOD-END] DEC-31-2000
[CASH] 2,847,332
[SECURITIES] 0
[RECEIVABLES] 3,077,520
[ALLOWANCES] (10,000)
[INVENTORY] 2,374,484
[CURRENT-ASSETS] 8,444,488
[PP&E] 2,968,379
[DEPRECIATION] (1,386,054)
[TOTAL-ASSETS] 14,332,647
[CURRENT-LIABILITIES] 968,605
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 2,402,991
[OTHER-SE] 10,833,360
[TOTAL-LIABILITY-AND-EQUITY] 14,332,647
[SALES] 6,616,902
[TOTAL-REVENUES] 6,616,902
[CGS] 2,427,978
[TOTAL-COSTS] 4,512,311
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] 2,221,949
[INCOME-TAX] 784,693
[INCOME-CONTINUING] 1,437,256
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 1,437,256
[EPS-BASIC] .39
[EPS-DILUTED] .38