Mesa Laboratories Reports Q3 Fiscal 2024 Results

TL;DR

<b>Mesa Laboratories' Q3 FY24 filing shows $1.36M in revenue and $849K in net income for the nine-month period, with recent acquisitions impacting amortization expenses.</b>

AI Summary

MESA LABORATORIES INC /CO/ (MLAB) filed a Quarterly Report (10-Q) with the SEC on February 5, 2024. Revenue for the nine months ended December 31, 2023, was $1,363,000. Net income for the nine months ended December 31, 2023, was $849,000. Earnings per share for the nine months ended December 31, 2023, was $0.16. Acquired GKE GmbH and SAL GmbH on October 16, 2023, contributing to the Sterilization and Disinfection Control division. Recorded $838,000 amortization expense to general and administrative costs and $122,000 to cost of revenues for acquired intangible assets in the Sterilization Disinfection Control division.

Why It Matters

For investors and stakeholders tracking MESA LABORATORIES INC /CO/, this filing contains several important signals. The inclusion of GKE GmbH and SAL GmbH acquisitions on October 16, 2023, will impact future financial reporting, particularly in the Sterilization and Disinfection Control division. Significant amortization expenses related to acquired intangible assets, totaling $960,000 ($838,000 to G&A and $122,000 to COGS) for the period, highlight the financial integration of recent acquisitions.

Risk Assessment

Risk Level: medium — MESA LABORATORIES INC /CO/ shows moderate risk based on this filing. The company's financial performance is subject to risks associated with integrating newly acquired businesses, as evidenced by the significant amortization expenses recorded for intangible assets from the GKE GmbH and SAL GmbH acquisitions.

Analyst Insight

Monitor the impact of recent acquisitions on Mesa Laboratories' profitability and operational efficiency in upcoming filings.

Financial Highlights

revenue

1,363,000

net Income

849,000

eps

0.16

Revenue Breakdown

Key Numbers

• 1,363,000 — Revenue (Nine months ended December 31, 2023)
• 849,000 — Net Income (Nine months ended December 31, 2023)
• 0.16 — EPS (Nine months ended December 31, 2023)
• 838,000 — Amortization Expense (G&A) (Related to acquired intangible assets, Oct 16 - Dec 31, 2023)
• 122,000 — Amortization Expense (COGS) (Related to acquired intangible assets, Oct 16 - Dec 31, 2023)

Key Players & Entities

• MESA LABORATORIES INC /CO/ (company) — Filer name
• Gary Owens (person) — Chief Executive Officer
• GKE GmbH (company) — Acquired company
• SAL GmbH (company) — Acquired company
• October 16, 2023 (date) — Acquisition date
• December 31, 2023 (date) — Reporting period end date

Forward-Looking Statements

• Mesa Laboratories will continue to face pressure on net income due to ongoing amortization expenses from acquired intangible assets. (MESA LABORATORIES INC /CO/) — medium confidence, target: March 31, 2025
• The company may explore strategies to optimize its cost structure to mitigate the impact of increased general and administrative expenses. (MESA LABORATORIES INC /CO/) — low confidence, target: March 31, 2025

FAQ

Risk Factors

• Integration of Acquisitions [medium — financial]: The company faces risks in integrating newly acquired businesses, such as GKE GmbH and SAL GmbH, which impacts financial reporting and operational efficiency.
• Amortization of Intangible Assets [medium — financial]: Significant amortization expenses related to acquired intangible assets, including customer relationships, tradenames, and intellectual property, can affect profitability.

Key Dates

• 2023-12-31: Quarter End — End of the third fiscal quarter for 2024.

Key Financial Figures

• $1,507 — xpected to be collected. (b) Includes $1,507 of preliminary inventory step up, which
• $412 — October 16, 2023 to December 31, 2023, $412 of inventory step up amortization was r
• $1,727 — ge 7 Table of Contents (c) Includes $1,727 of preliminary property, plant and equi
• $83 — October 16, 2023 to December 31, 2023, $83 of depreciation expense was recorded re
• $54,470 — lue step up. (d) Acquired goodwill of $54,470, all of which is allocated to the Steri
• $838 — October 16, 2023 to December 31, 2023, $838 of amortization expense was recorded to
• $122 — to general and administrative costs and $122 of amortization expense was recorded to

Filing Documents

• mlab20231231_10q.htm (10-Q) — 1433KB
• ex_597554.htm (EX-31.1) — 13KB
• ex_597555.htm (EX-31.2) — 13KB
• ex_597556.htm (EX-32.1) — 5KB
• ex_597557.htm (EX-32.2) — 4KB
• 0001437749-24-003053.txt (&nbsp;) — 6953KB
• mlab-20231231.xsd (EX-101.SCH) — 57KB
• mlab-20231231_cal.xml (EX-101.CAL) — 44KB
• mlab-20231231_def.xml (EX-101.DEF) — 397KB
• mlab-20231231_lab.xml (EX-101.LAB) — 337KB
• mlab-20231231_pre.xml (EX-101.PRE) — 431KB
• mlab20231231_10q_htm.xml (XML) — 1277KB

Financial Information

Part I. Financial Information 1

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Income 2 Condensed Consolidated Statements of Comprehensive Income (Loss) 3 Condensed Consolidated Statements of Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 22

Controls and Procedures

Item 4. Controls and Procedures 23

Other Information

Part II. Other Information 24

Legal Proceedings

Item 1. Legal Proceedings 24

Risk factors

Item 1A. Risk factors 24

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24

Other Information

Item 5. Other Information 24

Exhibits

Item 6. Exhibits 25

Signatures

Signatures 26 Exhibit 31.1 Certifications Pursuant to Rule 13a-14(a) Exhibit 31.2 Certifications Pursuant to Rule 13a-14(a) Exhibit 32.1 Certifications Pursuant to Rule 13a-14(b) and 18 U.S.C Section 1350 Exhibit 32.2 Certifications Pursuant to Rule 13a-14(b) and 18 U.S.C Section 1350 Table of Contents

Financial Information

Part I. Financial Information

. Financial Statements

Item 1 . Financial Statements M esa Laboratories, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share amounts) December 31, March 31, 2023 2023 ASSETS Current assets: Cash and cash equivalents $ 28,224 $ 32,910 Accounts receivable, less allowance for doubtful accounts of $ 1,363 and $ 849 , respectively 36,023 42,551 Inventories 35,973 34,642 Prepaid expenses and other 18,135 8,872 Total current assets 118,355 118,975 Noncurrent assets: Property, plant and equipment, net of accumulated depreciation of $ 22,574 and $ 19,768 respectively 31,775 28,149 Deferred tax asset 1,092 1,076 Other assets 11,590 10,373 Customer relationships, net 162,890 152,189 Intellectual property, net 45,753 46,400 Other intangibles, net 24,131 18,226 Goodwill 346,183 286,444 Total assets $ 741,769 $ 661,832 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,554 $ 6,134 Accrued payroll and benefits 9,380 9,433 Unearned revenues 14,357 15,694 Other accrued expenses 15,892 12,098 Total current liabilities 44,183 43,359 Noncurrent liabilities: Deferred tax liability 44,340 34,028 Other long-term liabilities 17,320 7,693 Credit facility 62,000 13,000 Convertible senior notes, net of debt issuance costs 170,965 170,272 Total liabilities 338,808 268,352 Stockholders' equity: Common stock, no par value; authorized 25,000,000 shares; issued and outstanding, 5,394,043 and 5,369,466 shares, respectively 340,852 332,076 Retained earnings 71,953 74,199 Accumulated other comprehensive (loss) ( 9,844 ) ( 12,795 ) Total stockholders' equity 402,961 393,480 Total liabilities and stockholders' equity $ 741,769 $ 661,832 See accompanying notes to Condensed C onsolidated Fi nancial Statements. Page 1 Table of Contents Mesa Laboratories, Inc. Condensed Consolidated Statements of Income (unaudited) (in thousands, except per share data)

View Full Filing

View this 10-Q filing on SEC EDGAR