Mesa Laboratories Inc. (MLAB, Financial) filed Quarterly Report for the period ended 2010-09-30.
Mesa Laboratories Inc. has a market cap of $81.65 million; its shares were traded at around $25.27 with a P/E ratio of 15.13 and P/S ratio of 3.72. The dividend yield of Mesa Laboratories Inc. stocks is 1.74%. 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.
For the current fiscal quarter, Biological Indicator products have increased to $3,897,000 or 122 percent from $1,757,000 in the prior year period, and Instrumentation products have increased to $3,857,000 or six percent from $3,650,000 in the prior year period. For the first six months of fiscal 2011, Biological Indicator Product sales have increased to $7,352,000 or 111 percent from $3,478,000 in the prior year period, and Instrumentation sales have increased to $7,857,000 or 14 percent from $6,905,000 in the prior year period. For the current quarter and six month periods the increase in Biological Indicator products is due to the addition of the SGM Biotech products in late April of this year, and increases of 11 and eight percent for the current quarter and six month periods, respectively for our Raven products. During the current quarter and six month periods, the increase in Instrumentation products and services were six and 14 percent, respectively, and were due in the current quarter to the addition of the Torqo product line in December 2009, while the increase for the six month period was due to the addition of Torqo products and increases in Datatrace and Nusonics products.
Company sponsored research and development cost was $342,000 during the second fiscal quarter of 2011 and $172,000 during the previous year period. For the six month period in fiscal 2011, these costs are $565,000 compared to $323,000 for the same period last year. We are currently executing a strategy of increasing the flow of internally developed products and we are continuing work that expands our radio frequency technology into new data logging markets. The additions of the Torqo and SGM Biotech product lines are also adding to our current research and development spending.
Net income increased 15 percent to $1,429,000 or $.43 per share on a diluted basis during the second fiscal quarter of 2011 compared to $1,243,000 or $.38 per share on a diluted basis in the previous year period. For the first six months of the fiscal year, net income increased 21 percent to $2,749,000 or $.83 per diluted share compared to $2,269,000 or $.69 per diluted share in the same period last year. As previously discussed, sales have increased sharply due to both internal growth and acquisitions although margins decreased slightly during the quarter and for the six month period. Other factors impacting net income during the quarter and six months 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 fiscal year, and also experienced one time acquisition costs of $153,000 during the first six months of the current fiscal year. We have experienced additional six month amortization expenses of approximately $245,000 for the intangible assets acquired as part of the SGM Biotech acquisition. A final additional expense, which was incurred during the current quarter, amounted to $70,000 and was due to a misapplication of a deduction for income tax purposes in prior periods.
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 September 30, 2010, the Company had accrued $361,000 which was paid in October 2010. After the completion of the acquisition, the Company repaid $278,000 of loans owed to the shareholders of SGM Biotech. The Company incurred approximately $153,000 in third party acquisition costs related to this transaction during the current fiscal year.
working capital adjustment is owed to the principals of SGM Biotech which has been calculated as $361,000 and was paid in October 2010. To help finance the acquisition of SGM Biotech, Inc., the Company entered into two separate credit facilities which require remaining principal payments of $500,000, $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 $81.65 million; its shares were traded at around $25.27 with a P/E ratio of 15.13 and P/S ratio of 3.72. The dividend yield of Mesa Laboratories Inc. stocks is 1.74%. 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 second quarter and first six months of fiscal 2011 increased 43.4 percent and 46.5 percent, respectively from fiscal 2010. In real dollars, net sales of $7,754,000 for the quarter and $15,209,000 for the first six months in fiscal 2011 increased $2,347,000 and $4,826,000, respectively from $5,407,000 and $10,383,000, respectively in 2010.For the current fiscal quarter, Biological Indicator products have increased to $3,897,000 or 122 percent from $1,757,000 in the prior year period, and Instrumentation products have increased to $3,857,000 or six percent from $3,650,000 in the prior year period. For the first six months of fiscal 2011, Biological Indicator Product sales have increased to $7,352,000 or 111 percent from $3,478,000 in the prior year period, and Instrumentation sales have increased to $7,857,000 or 14 percent from $6,905,000 in the prior year period. For the current quarter and six month periods the increase in Biological Indicator products is due to the addition of the SGM Biotech products in late April of this year, and increases of 11 and eight percent for the current quarter and six month periods, respectively for our Raven products. During the current quarter and six month periods, the increase in Instrumentation products and services were six and 14 percent, respectively, and were due in the current quarter to the addition of the Torqo product line in December 2009, while the increase for the six month period was due to the addition of Torqo products and increases in Datatrace and Nusonics products.
Company sponsored research and development cost was $342,000 during the second fiscal quarter of 2011 and $172,000 during the previous year period. For the six month period in fiscal 2011, these costs are $565,000 compared to $323,000 for the same period last year. We are currently executing a strategy of increasing the flow of internally developed products and we are continuing work that expands our radio frequency technology into new data logging markets. The additions of the Torqo and SGM Biotech product lines are also adding to our current research and development spending.
Net income increased 15 percent to $1,429,000 or $.43 per share on a diluted basis during the second fiscal quarter of 2011 compared to $1,243,000 or $.38 per share on a diluted basis in the previous year period. For the first six months of the fiscal year, net income increased 21 percent to $2,749,000 or $.83 per diluted share compared to $2,269,000 or $.69 per diluted share in the same period last year. As previously discussed, sales have increased sharply due to both internal growth and acquisitions although margins decreased slightly during the quarter and for the six month period. Other factors impacting net income during the quarter and six months 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 fiscal year, and also experienced one time acquisition costs of $153,000 during the first six months of the current fiscal year. We have experienced additional six month amortization expenses of approximately $245,000 for the intangible assets acquired as part of the SGM Biotech acquisition. A final additional expense, which was incurred during the current quarter, amounted to $70,000 and was due to a misapplication of a deduction for income tax purposes in prior periods.
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 September 30, 2010, the Company had accrued $361,000 which was paid in October 2010. After the completion of the acquisition, the Company repaid $278,000 of loans owed to the shareholders of SGM Biotech. The Company incurred approximately $153,000 in third party acquisition costs related to this transaction during the current fiscal year.
working capital adjustment is owed to the principals of SGM Biotech which has been calculated as $361,000 and was paid in October 2010. To help finance the acquisition of SGM Biotech, Inc., the Company entered into two separate credit facilities which require remaining principal payments of $500,000, $2,521,000, $1,000,000 and $250,000 in fiscal years 2011, 2012, 2013 and 2014, respectively
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