Mesa Laboratories, Inc. (NASDAQ:MLAB), a global leader in the
design and manufacturing of life science tools and critical quality
control solutions, today announced results for its fourth fiscal
quarter (“4Q23”) and fiscal year (“FY23”) ended March 31, 2023.
Fourth quarter highlights:
- Fourth quarter revenues decreased
5.6%
- Fourth quarter Non-GAAP core
organic revenues3 decreased 1.6%
- Fourth quarter operating income
increased 570%
- Fourth quarter Non-GAAP adjusted operating income1 excluding
unusual items decreased 21.1%
Full FY23 highlights:
- FY23 revenues increased 18.8%
- FY23 Non-GAAP core organic revenues growth was 5.2%
- FY23 operating income decreased 29.4%
- FY23 Non-GAAP adjusted operating income excluding unusual items
decreased 1.7%
Executive Commentary (amounts in thousands)
“Revenues of $55,591 in the quarter resulted in an organic
revenues (“organic”) decline of 5.6% for the quarter. This was
influenced by currency headwinds across the company, slower
Biopharmaceutical spending primarily impacting our
Biopharmaceutical Development Division, as well as a significant
decrease in COVID related revenues and the previously disclosed
closure of Sema4’s expanded carrier screening business both of
which impacted the Clinical Genomics division. Excluding currency
and COVID related revenues, core organic revenues (“core organic”)
declined 1.6%. For the year, organic revenues growth was 0.6% and
core organic revenues growth was 5.2%, within striking distance of
our long-term core growth aspirations despite multiple headwinds
faced throughout the year” said Gary Owens, Chief Executive Officer
of Mesa Labs.
“Profitability for the fourth quarter, as measured by our
primary metric of adjusted operating income (“AOI”) excluding
unusual items, came in at $10,712 or 19.3% of revenues, as we
absorbed the previously disclosed loss of the high margin Sema4
business in Clinical Genomics, faced currency headwinds and saw a
significant increase in fourth quarter payroll taxes associated
with the exercise of expiring stock options. For the full fiscal
year, the same metric was $45,821 or 20.9% of revenues” added Mr.
Owens.
“In fiscal 2024, as the world and Life Science Tools sector
continues to experience a period of economic uncertainty, we are
biasing toward conservatism while maintaining our long-term growth
outlook. We continue to see softness in new systems / CAPEX orders
for both the Clinical Genomics and Biopharmaceutical Development
divisions and expect currency headwinds to abate over the course of
FY24. Our lean-based operating model, the Mesa Way, will enable us
to continue to adapt and become stronger. Over the mid and longer
term, our exposure to the regulated phases of a biopharmaceutical’s
life cycle and the clinical genomics market will enable multiple
opportunities for strong inorganic and organic growth.” concluded
Mr. Owens.
Financial Results (unaudited, amounts in
thousands, except per share data)
Fourth Quarter Fiscal Year 2023 Total revenues were $55,591, a
decrease of 5.6% compared to the fourth quarter of fiscal year 2022
(“4Q22”). Operating income increased 570% to $517. Net income was
$611, an increase of 134% or $0.11 per diluted share of common
stock.
As detailed in the Unusual Items table below, operating income
for 4Q23 and 4Q22 was impacted by unusual items totaling $268 and
$1,921, respectively.
On a non-GAAP basis, core organic revenues decreased 1.6% and
AOI decreased 10.4% to $10,444 or $1.94 per diluted share of common
stock compared to 4Q22. As detailed in the Unusual Items table
below, AOI for 4Q23 and 4Q22 was impacted by unusual items totaling
$268 and $1,921, respectively. Excluding the unusual items for 4Q23
and 4Q22, AOI would have decreased 21.1% to $10,712. A
reconciliation of non-GAAP measures is provided in the tables
below.
Full Fiscal Year 2023
Total revenues were $219,080, an increase of 18.8% compared to
fiscal year 2022 (“FY22”). Operating income decreased 29.4% to
$3,320. Net income was $930, a decrease of 50.3% or $0.17 per
diluted share of common stock.
As detailed in the Unusual Items table below, operating income
for FY23 and FY22 was impacted by unusual items totaling $1,142 and
$9,290, respectively.
On a non-GAAP basis, core organic growth was 5.2% and AOI
increased 17.9% to $44,679 or $8.33 per diluted share of common
stock compared to FY22. As detailed in the Unusual Items table
below, AOI for FY23 and FY22 was impacted by unusual items totaling
$1,142 and $8,706, respectively. Excluding the unusual items for
FY23 and FY22, AOI would have decreased 1.7% to
$45,821. A reconciliation of non-GAAP measures is
provided in the tables below.
Division Performance
|
Revenues |
Organic Revenues Growth2 |
Core Organic Revenues
Growth3 |
|
|
|
|
|
|
|
(Amounts in thousands) |
Three MonthsEndedMarch 31, 2023 |
YearEndedMarch 31, 2023 |
Three MonthsEndedMarch 31, 2023 |
YearEndedMarch 31, 2023 |
Three MonthsEndedMarch 31, 2023 |
YearEndedMarch 31, 2023 |
Clinical Genomics |
$ |
13,774 |
$ |
62,299 |
(15.8 |
)% |
(12.9 |
)% |
(5 |
)% |
(0.9)% ^ |
Sterilization and Disinfection Control |
|
16,588 |
|
64,609 |
3.5 |
% |
9.4 |
% |
4.8 |
% |
12.2 |
% |
Biopharmaceutical
Development |
|
12,608 |
|
47,365 |
(6.2 |
)% |
3.8 |
% |
(3.5 |
)% |
10.9 |
% |
Calibration Solutions |
|
12,621 |
|
44,807 |
(3.7 |
)% |
(4.4 |
)% |
(3.6 |
)% |
(4.1 |
)% |
Total reportable segments |
$ |
55,591 |
$ |
219,080 |
(5.7 |
)% |
0.6 |
% |
(1.6 |
)% |
5.2 |
% |
^ Core Organic Revenues growth for the year
ended March 31, 2023 consists of the period October 20, 2022
through March 31, 2023 as compared to the same period in the prior
year
Clinical Genomics (25% of revenues in 4Q23)
revenues were $13,774 for the quarter (which includes $20 of
COVID-19 related revenues) which resulted in an organic decline of
15.8% for the quarter. Core organic revenues, which excludes
currency and COVID related revenues, decreased 5% for the quarter
and .9% for the full year. The quarter and year were strongly
impacted by the previously announced closure of Sema4’s expanded
carrier screening, an approximate $8,200 annual headwind that began
fully impacting the business in 3Q23. Excluding Sema4, core organic
growth for this division would have been approximately 10% for the
quarter and 15% for the year. Gross profit percentage
was 43% for the quarter and 52% for the year, with both figures
below our long-term target of high 50’s due to both lost Sema4
revenue and foreign currency headwinds.
Sterilization and Disinfection Control (30% of
revenues in 4Q23) revenues were $16,588 for the quarter which
resulted in organic growth of 3.5% and core organic growth of 4.8%
versus 4Q22. For the year core organic growth was 12.2%. Both
organic and core organic growth in the quarter were negatively
impacted by a difficult comparison in the prior year, while robust
annual growth was driven by continued penetration of our more
unique products into the biopharmaceutical vertical. Gross profit
percentage for the quarter and year contracted by 200 bps versus
prior year periods as a result of foreign currency fluctuations
negatively impacting our reported revenues and increased labor and
labor related costs.
Biopharmaceutical Development (22% of revenues
in 4Q23) revenues were $12,608 which yielded an organic decline of
6.2% and a 3.5% core organic decline for the quarter, both figures
impacted by a difficult compare to the same quarter in the prior
year in which organic growth was 32.5%. Annual core organic growth
was 10.9% vs 3.8% organic growth as the Division has a large
portion of revenues outside the USA and thus was impacted
significantly by currency headwinds. Division gross
profit percentage however increased 240 bps vs 4Q22 and 130 bps
annually as a result of solid revenue growth and pricing power
overcoming adverse product mix and currency
headwinds.
Calibration Solutions (23% of revenues in 4Q23)
revenues were $12,621 which resulted in a core organic decline of
3.6% as compared to 4Q22. Full year core organic revenues
contracted 4.1% for the year. Raw materials headwinds through the
first three quarters of the fiscal year began to abate in the
fourth quarter and as a result the division grew 17% sequentially
as compared to 3Q23. Gross profit percentage increased by 450bps in
the quarter and 110bps for the year primarily due to favorable
product mix.
Use of Non-GAAP Financial Measures
Adjusted operating income, organic revenues growth and core
organic revenues growth are non-GAAP measures that exclude or
adjust for certain items, as detailed after the tables that
accompany this press release under the heading “Supplemental
Information Regarding Non-GAAP Financial Measures.” Reconciliations
of GAAP to non-GAAP financial measures are provided in the tables
that accompany this press release.
1 The non-GAAP measures of adjusted operating income and
adjusted operating income per diluted share are defined to exclude
the non-cash impact of amortization of intangible assets acquired
in a business combination, stock-based compensation and impairment
of goodwill and long-lived assets. A reconciliation between these
non-GAAP measures and their GAAP counterparts is set forth below,
along with additional information regarding their use.
2 Organic revenues growth, a non-GAAP measure, is reported
revenues growth excluding the impact of acquisitions.
3 Core organic revenues growth, a non-GAAP measure, is reported
revenues growth excluding the impact of acquisitions, currency
translation and COVID related revenues.
About Mesa Laboratories, Inc.
Mesa is a global leader in the design and manufacturing of life
science tools and critical quality control solutions for regulated
applications in the pharmaceutical, healthcare and medical device
industries. Mesa offers products and services to help our customers
ensure product integrity, increase patient and worker safety, and
improve the quality of life throughout the world.
For more information about Mesa, please visit its website at
www.mesalabs.com.
Forward Looking Statements
This press release contains forward-looking statements regarding
our future business expectations. Forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from our historical experience
and present expectations or projections. Any statements contained
herein that are not statements of historical fact may be
forward-looking statements, including statements relating to: the
duration and impact of the COVID-19 pandemic and its adverse
effects on our business; our ability to successfully grow our
business, including as a result of acquisitions; the results on
operations of acquisitions; our ability to consummate acquisitions
at our historical rate and at appropriate prices; our ability to
effective integrate acquired businesses and achieve desired
results; the market acceptance of our products; reduced demand for
our products that adversely impacts our future revenues, cash
flows, results of operations and financial condition; conditions in
the global economy and the particular markets we serve; significant
developments or uncertainties stemming from the U.S. government,
including changes in U.S. trade policies and medical device
regulations; the timely development and commercialization, and
customer acceptance, of enhanced and new products and services;
projections of revenues, growth, operating results, profit margins,
expenses, earnings, margins, tax rates, tax provisions, cash flows,
liquidity, demand, and competition; the effects of additional
actions taken to become more efficient or lower costs;
restructuring activities; laws regulating fraud and abuse in the
health care industry and the privacy and security of health and
personal information; outstanding claims, legal proceedings, tax
audits and assessments and other contingent liabilities; foreign
currency exchange rates and fluctuations in those rates; general
economic, industry, and capital markets conditions; the timing of
any of the foregoing; assumptions underlying any of the foregoing;
and any other statements that address events or developments that
Mesa intends or believes will or may occur in the future. Without
limiting the foregoing, the words “expect,” “seek,” “plan”
“anticipate,” “intend,” “believe,” “could,” “should,” “estimate,”
“may,” “target,” “project,” and similar expressions identify
forward-looking statements. However, the absence of these words or
similar expressions does not mean that a statement is not
forward-looking. These forward-looking statements are made based on
expectations and beliefs concerning future events affecting us and
are subject to risks and uncertainties relating to our operations
and business environments, all of which are difficult to predict
and many of which are beyond our control, that could cause our
actual results to differ materially from those matters expressed or
implied by these forward-looking statements. These risks and
uncertainties also include, but are not limited to, those described
in our filings with the Securities and Exchange Commission
including our Annual Report on Form 10-K for the year ended March
31, 2023 and our subsequent Quarterly Reports on Form 10-Q. We
assume no obligation to update the information in this press
release.
Mesa Laboratories Contacts: Gary Owens; President and CEO, John
Sakys; CFO1-303-987-8000investors@mesalabs.com
Financial Summary (Unaudited)
Condensed Consolidated Statements of
Operations |
|
(Amounts in thousands, except per
share data) |
Three Months Ended March 31, |
Year EndedMarch 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
$ |
55,591 |
|
$ |
58,879 |
|
$ |
219,080 |
|
$ |
184,335 |
|
Cost of revenues |
|
22,390 |
|
|
23,767 |
|
|
85,387 |
|
|
72,245 |
|
Gross profit |
|
33,201 |
|
|
35,112 |
|
|
133,693 |
|
|
109,090 |
|
Operating expenses |
|
32,684 |
|
|
35,222 |
|
|
130,373 |
|
|
104,388 |
|
Operating income (loss) |
|
517 |
|
|
(110 |
) |
|
3,320 |
|
|
4,702 |
|
Nonoperating expense
(income) |
|
794 |
|
|
(64 |
) |
|
3,709 |
|
|
1,128 |
|
(Loss) earnings before income
taxes |
|
(277 |
) |
|
(46 |
) |
|
(389 |
) |
|
3,574 |
|
Income tax (benefit)
provision |
|
(888 |
) |
|
1,738 |
|
|
(1,319 |
) |
|
1,703 |
|
Net income (loss) |
$ |
611 |
|
$ |
(1,784 |
) |
$ |
930 |
|
$ |
1,871 |
|
|
|
|
|
|
Earnings (loss) per share
(basic) |
$ |
0.11 |
|
$ |
(0.34 |
) |
$ |
0.17 |
|
$ |
0.36 |
|
Earnings (loss) per share
(diluted) |
|
0.11 |
|
|
(0.34 |
) |
|
0.17 |
|
|
0.35 |
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
Basic |
|
5,349 |
|
|
5,253 |
|
|
5,321 |
|
|
5,212 |
|
Diluted |
|
5,381 |
|
|
5,253 |
|
|
5,361 |
|
|
5,335 |
|
Consolidated Condensed Balance Sheets |
|
(Amounts in thousands) |
March 31, 2023 |
March 31, 2022 |
Cash and cash equivalents |
$ |
32,910 |
|
$ |
49,346 |
|
Other current assets |
|
86,065 |
|
|
74,972 |
|
Total current assets |
|
118,975 |
|
|
124,318 |
|
Property, plant and equipment,
net |
|
28,149 |
|
|
28,620 |
|
Other assets |
|
514,708 |
|
|
554,431 |
|
Total assets |
$ |
661,832 |
|
$ |
707,369 |
|
|
|
|
Liabilities |
$ |
268,352 |
|
$ |
313,568 |
|
Stockholders’ equity |
|
393,480 |
|
|
393,801 |
|
Total liabilities and
stockholders’ equity |
$ |
661,832 |
|
$ |
707,369 |
|
Reconciliation of Non-GAAP Measures |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands, except per
share data) |
Three Months Ended March 31, |
Year EndedMarch 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Operating income (loss)
(GAAP) |
$ |
517 |
|
$ |
(110 |
) |
$ |
3,320 |
|
$ |
4,702 |
|
Amortization of intangible
assets |
|
7,248 |
|
|
8,311 |
|
|
28,821 |
|
|
21,806 |
|
Stock-based compensation
expense |
|
2,679 |
|
|
3,452 |
|
|
12,538 |
|
|
11,391 |
|
Adjusted operating income
(non-GAAP) |
$ |
10,444 |
|
$ |
11,653 |
|
$ |
44,679 |
|
$ |
37,899 |
|
|
|
|
|
|
Adjusted operating income per
share (basic) |
$ |
1.95 |
|
$ |
2.22 |
|
$ |
8.40 |
|
$ |
7.27 |
|
Adjusted operating income per
share (diluted) |
$ |
1.94 |
|
$ |
2.22 |
|
$ |
8.33 |
|
$ |
7.10 |
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
Basic |
|
5,349 |
|
|
5,253 |
|
|
5,321 |
|
|
5,212 |
|
Diluted |
|
5,381 |
|
|
5,253 |
|
|
5,361 |
|
|
5,340 |
|
Organic and Core Organic Revenues
Growth (Unaudited)
|
Three Months EndedMarch 31, 2023 |
Year EndedMarch 31, 2023 |
Total revenues growth |
(5.6 |
)% |
18.8 |
% |
Impact of acquisitions |
0.1 |
% |
18.2 |
% |
Organic revenues
growth |
(5.7 |
)% |
0.6 |
% |
Currency translation |
1.8 |
% |
3.4 |
% |
COVID related revenues |
2.3 |
% |
1.2 |
% |
Core organic revenues
growth |
(1.6 |
)% |
5.2 |
% |
Detail of Unusual Items (Unaudited)
As discussed above, operating income and adjusted operating
income were impacted by various unusual items during the three
months and years ended March 31, 2023 and 2022. The following table
provides detail of such items and reconciles the impact on
operating income as reported under GAAP and non-GAAP adjusted
operating income. (Amounts in thousands.)
Impact of unusual
items on operating income |
Three Months EndedMarch 31, |
Year EndedMarch 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Operating income (loss)
(GAAP) |
$ |
517 |
|
$ |
(110 |
) |
$ |
3,320 |
|
$ |
4,702 |
|
|
|
|
|
|
Unusual items – before
tax |
|
|
|
|
Belyntic/Agena
acquisition/integration costs |
$ |
268 |
|
$ |
521 |
|
$ |
1,142 |
|
$ |
1,244 |
|
Non-cash cost of revenues
expense associated with the step up to fair value of Agena
inventory due to application of purchase accounting |
|
-- |
|
|
1,400 |
|
|
-- |
|
|
7,462 |
|
Non-cash stock compensation
expense true-up |
|
-- |
|
|
-- |
|
|
-- |
|
|
584 |
|
Total Impact of unusual items
on operating income – before tax |
|
268 |
|
|
1,921 |
|
|
1,142 |
|
|
9,290 |
|
|
|
|
|
|
Operating income excluding
unusual items |
$ |
785 |
|
$ |
1,811 |
|
$ |
4,462 |
|
$ |
13,992 |
|
|
|
|
|
|
Impact of unusual
items on adjusted operating income |
Three Months EndedMarch 31, |
Year EndedMarch 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Adjusted operating income
(non-GAAP) |
$ |
10,444 |
|
$ |
11,653 |
|
$ |
44,679 |
|
$ |
37,899 |
|
|
|
|
|
|
Unusual items – before
tax |
|
|
|
|
Belyntic/Agena
acquisition/integration costs |
$ |
268 |
|
$ |
521 |
|
$ |
1,142 |
|
$ |
1,244 |
|
Non-cash cost of revenues
associated with the step up to fair value of Agena inventory due to
application of purchase accounting |
|
-- |
|
|
1,400 |
|
|
-- |
|
|
7,462 |
|
Total impact of unusual items
on adjusted operating income – before tax |
|
268 |
|
|
1,921 |
|
|
1,142 |
|
|
8,706 |
|
|
|
|
|
|
Adjusted operating income
excluding unusual items |
$ |
10,712 |
|
$ |
13,574 |
|
$ |
45,821 |
|
$ |
46,605 |
|
Supplemental Information Regarding Non-GAAP Financial
Measures
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), we provide
non-GAAP adjusted operating income, non-GAAP adjusted operating
income per share amounts, non-GAAP adjusted operating income
excluding unusual items, organic revenues growth, and core organic
revenues growth in order to provide meaningful supplemental
information regarding our operational performance. We believe that
the use of these non-GAAP financial measures, in addition to GAAP
financial measures, helps investors to gain a better understanding
of our operating results, consistent with how management measures
and forecasts its operating performance, especially when comparing
such results to previous periods and to the performance of our
competitors. Such measures are also used by management in their
financial and operating decision-making and for compensation
purposes. This information facilitates management's internal
comparisons to our historical operating results as well as to the
operating results of our competitors. Since management finds this
measure to be useful, we believe that our investors can benefit by
evaluating both GAAP and non-GAAP results.
The non-GAAP measures of adjusted operating income and adjusted
operating income per share presented in the reconciliation above
are defined to exclude the non-cash impact of amortization of
intangible assets acquired in a business combination, stock-based
compensation and impairment of goodwill and long-lived assets. To
calculate adjusted operating income, we exclude, as applicable:
- Impairments of
long-lived assets as such charges are outside of our normal
operations and in most cases are difficult to accurately
forecast.
- Stock-based
compensation expense as it is a non-cash charge and costs
calculated for this expense vary in accordance with the stock price
on the date of grant.
- The expense
associated with the amortization of acquisition-related intangible
assets as a significant portion of the purchase price for
acquisitions may be allocated to intangible assets that have lives
of up to 20 years. Exclusion of the amortization expense allows
comparisons of operating results that are consistent over time for
both our newly acquired and long-held businesses and with both
acquisitive and non-acquisitive peer companies.
Our management recognizes that items such as amortization of
intangible assets, stock-based compensation expense and impairment
losses on goodwill and long-lived assets can have a material impact
on our operating and net income. To gain a complete picture of all
effects on our profit and loss from any and all events, management
does (and investors should) rely upon the GAAP consolidated
statements of income. The non-GAAP numbers focus instead upon our
core operating business.
Readers are reminded that non-GAAP measures are merely a
supplement to, and not a replacement for, or superior to financial
measures prepared according to GAAP. They should be evaluated in
conjunction with the GAAP financial measures. Our non-GAAP
information may be different from the non-GAAP information provided
by other companies.
Mesa Laboratories (NASDAQ:MLAB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Mesa Laboratories (NASDAQ:MLAB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024