Mesa Laboratories Inc. (MLAB, Financial) filed Quarterly Report for the period ended 2010-06-30.
Mesa Laboratories Inc. has a market cap of $68.98 million; its shares were traded at around $21.55 with a P/E ratio of 14.97 and P/S ratio of 3.15. The dividend yield of Mesa Laboratories Inc. stocks is 2.04%. Mesa Laboratories Inc. had an annual average earning growth of 13.8% over the past 10 years. GuruFocus rated Mesa Laboratories Inc. the business predictability rank of 4-star.MLAB is in the portfolios of Chuck Royce of Royce& Associates.
The total increase in revenues during the first quarter of fiscal 2011 was due to internal growth of existing products as well as from the additions of Torqo and SGM products which were acquired in December 2009 and April 2010, respectively. During the first quarter Torqo products contributed $459,000 and SGM Biotech products contributed $1,653,000 to the $2,478,000 total increase in sales during the quarter. Our other products contributed an additional $366,000 or a seven percent increase to revenues in the first quarter of fiscal 2011.
Net income increased to $1,320,000 or $.40 per share on a diluted basis during the first fiscal quarter of 2011 compared to $1,026,000 or $.31 per share on a diluted basis in the previous year period. As previously discussed, sales have increased sharply due to both internal growth and acquisitions although margins decreased slightly during the quarter. Other factors impacting net income during the quarter included the increases in general and administrative costs, sales and marketing costs, and research and development costs which are discussed above. We have added debt and interest expense due to our acquisition of SGM Biotech during the quarter, and also experienced one time acquisition costs of $128,000 during the quarter. The additional amortization expenses of approximately $130,000 for the intangible assets acquired as part of the SGM Biotech acquisition was almost entirely non-deductible for income tax purposes. For this reason, our income tax rate is expected to be higher during fiscal 2011 and will have a slightly negative affect on net income
On June 30, 2010, we had cash and short term investments of $2,541,000. In addition, we had other current assets totaling $11,531,000 and total current assets of $14,072,000. Current liabilities of our Company were $5,303,000 which resulted in a current ratio of 2.7:1.
On April, 27, 2010, the Company completed the purchase of SGM Biotech, Inc. located in Bozeman, MT. Under the terms of this acquisition the Company acquired all of the stock of SGM Biotech for $11,722,000. A cash payment of $11,122,000 was made at closing with an additional $600,000 placed into a joint escrow account. The $600,000 placed in escrow is to be paid to the sellers in $200,000 increments at three months, six months and one year following closing. The purchase price is subject to a final working capital adjustment as defined in the Stock Purchase Agreement, and at June 30, 2010, the Company had accrued $305,000 which is subject to review by the SGM Biotech shareholders. After the completion of the acquisition, the Company repaid $278,000 of loans owed to the shareholders of SGM Biotech. The Company incurred approximately $128,000 in third party acquisition costs related to this transaction.
At June 30, 2010 we had contractual obligations for open purchase orders for routine purchases of supplies and inventory, which would be payable in less than one year. In addition, the Company is liable for a payment of $50,000 to Vibrac LLC for a hold back which is due in December, 2010 and a working capital adjustment is owed to the principals of SGM Biotech which has preliminarily been calculated as $305,000 and is expected to be paid in the fiscal second quarter. To help finance the acquisition of SGM Biotech, Inc., the Company entered into two separate credit facilities which require principal payments of $750,000, $2,521,000, $1,000,000 and $250,000 in fiscal years 2011, 2012, 2013 and 2014, respectively
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Mesa Laboratories Inc. has a market cap of $68.98 million; its shares were traded at around $21.55 with a P/E ratio of 14.97 and P/S ratio of 3.15. The dividend yield of Mesa Laboratories Inc. stocks is 2.04%. Mesa Laboratories Inc. had an annual average earning growth of 13.8% over the past 10 years. GuruFocus rated Mesa Laboratories Inc. the business predictability rank of 4-star.MLAB is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Net sales for the first quarter of fiscal 2011 increased fifty percent from fiscal 2010. In real dollars, net sales of $7,455,000 in fiscal 2011 increased $2,478,000 from $4,977,000 in 2010.The total increase in revenues during the first quarter of fiscal 2011 was due to internal growth of existing products as well as from the additions of Torqo and SGM products which were acquired in December 2009 and April 2010, respectively. During the first quarter Torqo products contributed $459,000 and SGM Biotech products contributed $1,653,000 to the $2,478,000 total increase in sales during the quarter. Our other products contributed an additional $366,000 or a seven percent increase to revenues in the first quarter of fiscal 2011.
Net income increased to $1,320,000 or $.40 per share on a diluted basis during the first fiscal quarter of 2011 compared to $1,026,000 or $.31 per share on a diluted basis in the previous year period. As previously discussed, sales have increased sharply due to both internal growth and acquisitions although margins decreased slightly during the quarter. Other factors impacting net income during the quarter included the increases in general and administrative costs, sales and marketing costs, and research and development costs which are discussed above. We have added debt and interest expense due to our acquisition of SGM Biotech during the quarter, and also experienced one time acquisition costs of $128,000 during the quarter. The additional amortization expenses of approximately $130,000 for the intangible assets acquired as part of the SGM Biotech acquisition was almost entirely non-deductible for income tax purposes. For this reason, our income tax rate is expected to be higher during fiscal 2011 and will have a slightly negative affect on net income
On June 30, 2010, we had cash and short term investments of $2,541,000. In addition, we had other current assets totaling $11,531,000 and total current assets of $14,072,000. Current liabilities of our Company were $5,303,000 which resulted in a current ratio of 2.7:1.
On April, 27, 2010, the Company completed the purchase of SGM Biotech, Inc. located in Bozeman, MT. Under the terms of this acquisition the Company acquired all of the stock of SGM Biotech for $11,722,000. A cash payment of $11,122,000 was made at closing with an additional $600,000 placed into a joint escrow account. The $600,000 placed in escrow is to be paid to the sellers in $200,000 increments at three months, six months and one year following closing. The purchase price is subject to a final working capital adjustment as defined in the Stock Purchase Agreement, and at June 30, 2010, the Company had accrued $305,000 which is subject to review by the SGM Biotech shareholders. After the completion of the acquisition, the Company repaid $278,000 of loans owed to the shareholders of SGM Biotech. The Company incurred approximately $128,000 in third party acquisition costs related to this transaction.
At June 30, 2010 we had contractual obligations for open purchase orders for routine purchases of supplies and inventory, which would be payable in less than one year. In addition, the Company is liable for a payment of $50,000 to Vibrac LLC for a hold back which is due in December, 2010 and a working capital adjustment is owed to the principals of SGM Biotech which has preliminarily been calculated as $305,000 and is expected to be paid in the fiscal second quarter. To help finance the acquisition of SGM Biotech, Inc., the Company entered into two separate credit facilities which require principal payments of $750,000, $2,521,000, $1,000,000 and $250,000 in fiscal years 2011, 2012, 2013 and 2014, respectively
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