Mesa Laboratories, Inc. (NASDAQ: MLAB) (we, us, our, "Mesa" or the "Company") today reported an 18 percent increase in revenues for the third quarter ended December 31, 2012.
Highlights:
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Revenues for the third quarter increased 18 percent to $11,361,000 as compared to the same quarter last year
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Revenues for the nine months ended December 31, 2012 increased 17 percent to $33,627,000 as compared to the same period last year
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Net income for the nine months ended December 31, 2012 increased three percent to $5,891,000 as compared to the same period last year
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Non-GAAP adjusted net income for the nine months ended December 31, 2012 increased 11 percent to $7,144,000 as compared to the same period last year
Revenues for the third quarter increased 18 percent to $11,361,000 as compared to $9,650,000 for the same quarter last year. Net income for the third quarter decreased 22 percent to $1,543,000 or $0.44 per diluted share of common stock as compared to $1,987,000 or $0.57 per diluted share of common stock for the same quarter last year. Net income for the third quarter was impacted by $526,000, before tax, of Chief Financial Officer transition costs, which are one-time in nature.
Revenues for the nine months ended December 31, 2012 increased 17 percent to $33,627,000 as compared to $28,648,000 for the same period last year. Net income for the nine months ended December 31, 2012 increased three percent to $5,891,000 or $1.67 per diluted share of common stock as compared to $5,720,000 or $1.66 per diluted share of common stock for the same period last year.
On a non-GAAP basis (which excludes acquisition related intangible amortization, net of tax effects), adjusted net income for the third quarter decreased 11 percent to $1,974,000 or $0.56 per diluted share of common stock as compared to $2,217,000 or $0.63 per diluted share of common stock for the same quarter last year. Adjusted net income for the third quarter was impacted by $526,000, before tax, of Chief Financial Officer transition costs, which are one-time in nature. Adjusted net income for the nine months ended December 31, 2012 increased 11 percent to $7,144,000 or $2.03 per diluted share of common stock as compared to $6,427,000 or $1.86 per diluted share of common stock for the same period last year.
"This was a challenging quarter for Mesa," said John J. Sullivan , President and Chief Executive Officer. "While we experienced excellent revenue growth of 18% over this quarter last year, the growth was largely due to the acquisition of the Bios product line in May of 2012. Excluding these Bios sales, our traditional businesses were up only one percent over this quarter last year. Continuing growth of our consumable biological indicators business was offset by weakness in our capital equipment product lines, which was due to a tough economic environment for these products. Certainly, we benefited this quarter from having a diverse suite of products to offer our customers."
"While our gross margins held up very well this quarter and were unchanged from a year ago, non-recurring operational expenses negatively impacted our profitability and our net income decreased 22%," continued John Sullivan . "The largest of these non-recurring expenses were those associated with the transition of our Chief Financial Officer position, which totaled $526,000, before tax, this quarter. All of the costs associated with this transition were expensed in the current quarter, as required, even though some are non-cash, while others will be paid over a 12-month period. Excluding the costs of our Chief Financial Officer transition, our non-GAAP adjusted net income would have risen by 4% in the third quarter."
Revenues related to our Instruments division for the third quarter and nine months ended December 31, 2012 increased 26 percent and 28 percent, respectively, as compared to the same periods last year. The increase in revenues was primarily due to the Bios acquisition.
Revenues related to our Biological Indicators division for the third quarter and nine months ended December 31, 2012 increased nine percent and seven percent, respectively, as compared to the same periods last year. The increase in revenues was due to organic growth.