Mesa Labs Announces First Quarter Results
Mesa Laboratories (NASDAQ:MLAB) reported strong Q1 FY2025 results, with revenues increasing 14.9% to $58,170,000 and core organic revenues growth of 3.0%. Operating income surged 940%, while non-GAAP adjusted operating income excluding unusual items rose 47.0% to $15,341,000 or 26.4% of revenues. The company saw growth across most divisions, with Biopharmaceutical Development leading at 23.5% core organic growth. However, Clinical Genomics faced headwinds in China and North America. Mesa Labs repaid $9.4 million in debt, reducing its Net Leverage Ratio to 3.41. The company remains focused on driving profitability and reducing debt, aiming for a ratio below 3.0x.
Mesa Laboratories (NASDAQ:MLAB) ha riportato risultati solidi per il primo trimestre dell'anno fiscale 2025, con un aumento dei ricavi del 14,9% a 58.170.000 dollari e una crescita organica centrale dei ricavi del 3,0%. L'utile operativo è aumentato del 940%, mentre l'utile operativo rettificato non-GAAP, escludendo voci eccezionali, è salito del 47,0% a 15.341.000 dollari, corrispondente al 26,4% dei ricavi. L'azienda ha registrato crescita in quasi tutte le divisioni, con lo Sviluppo Biopharmaceuticale in testa con una crescita organica centrale del 23,5%. Tuttavia, la Genomica Clinica ha affrontato difficoltà in Cina e Nord America. Mesa Labs ha rimborsato 9,4 milioni di dollari di debito, riducendo il suo rapporto di leva finanziaria netto a 3,41. L'azienda rimane concentrata sul miglioramento della redditività e sulla riduzione del debito, puntando a un rapporto inferiore a 3,0x.
Mesa Laboratories (NASDAQ:MLAB) reportó resultados sólidos para el primer trimestre del año fiscal 2025, con un aumento en los ingresos del 14.9% a $58,170,000 y un crecimiento de ingresos orgánicos centrales del 3.0%. El ingreso operativo se disparó un 940%, mientras que el ingreso operativo ajustado no-GAAP, excluyendo ítems inusuales, aumentó un 47.0% a $15,341,000, o el 26.4% de los ingresos. La empresa vio crecimiento en la mayoría de sus divisiones, siendo el Desarrollo Biofarmacéutico el que más creció con un 23.5% de crecimiento orgánico central. Sin embargo, la Genómica Clínica enfrentó dificultades en China y América del Norte. Mesa Labs pagó $9.4 millones de deuda, reduciendo su relación de apalancamiento neto a 3.41. La compañía sigue enfocada en impulsar la rentabilidad y reducir su deuda, con el objetivo de un ratio inferior a 3.0x.
메사 연구소(Mesa Laboratories, NASDAQ:MLAB)는 2025 회계연도 1분기 실적을 발표했으며, 매출이 14.9% 증가하여 58,170,000 달러에 달하였고 핵심 유기 매출 성장률은 3.0%에 달했습니다. 운영 소득은 940% 급증하였고, 비상장 조정 운영 소득은 비정상 항목을 제외하고 47.0% 증가하여 15,341,000 달러로 전체 매출의 26.4%를 차지했습니다. 회사는 대부분의 부문에서 성장을 보였으며, 생물제약 개발 부문이 23.5%의 핵심 유기 성장률로 주도했습니다. 그러나 클리니컬 유전체학 부문은 중국과 북미에서 어려움을 겪고 있습니다. 메사 연구소는 940만 달러의 부채를 상환하여 순 금융 레버리지 비율을 3.41로 낮췄습니다. 회사는 수익성 증대와 부채 감소에 집중하고 있으며, 3.0 배 미만의 비율을 목표로 하고 있습니다.
Mesa Laboratories (NASDAQ:MLAB) a rapporté de solides résultats pour le premier trimestre de l'exercice 2025, avec une augmentation des revenus de 14,9% à 58 170 000 $ et une croissance organique des revenus core de 3,0%. Le bénéfice d'exploitation a grimpé de 940%, tandis que le bénéfice d'exploitation ajusté non-GAAP, hors éléments inhabituels, a augmenté de 47,0% pour atteindre 15 341 000 $, soit 26,4% des revenus. L'entreprise a connu une croissance dans la plupart de ses divisions, le développement biopharmaceutique affichant une croissance organique centrale de 23,5%. Cependant, la génomique clinique a rencontré des difficultés en Chine et en Amérique du Nord. Mesa Labs a remboursé 9,4 millions de dollars de dettes, réduisant son ratio d'endettement net à 3,41. L'entreprise reste concentrée sur l'amélioration de la rentabilité et la réduction de la dette, visant un ratio inférieur à 3,0x.
Mesa Laboratories (NASDAQ:MLAB) berichtete über starke Ergebnisse im ersten Quartal des Geschäftsjahres 2025, mit einem Umsatzplus von 14,9% auf 58.170.000 US-Dollar und einem organischen Umsatzwachstum von 3,0%. Das Betriebsergebnis stieg um 940%, während das bereinigte Betriebsergebnis nach non-GAAP, ohne außergewöhnliche Posten, um 47,0% auf 15.341.000 US-Dollar oder 26,4% des Umsatzes anstieg. Das Unternehmen verzeichnete in den meisten Bereichen Wachstum, wobei die biopharmazeutische Entwicklung mit 23,5% organischem Wachstum eine führende Rolle spielte. Die klinische Genomik hatte jedoch in China und Nordamerika mit Herausforderungen zu kämpfen. Mesa Labs zahlte 9,4 Millionen US-Dollar an Schulden zurück, wodurch das Netto-Verschuldungsverhältnis auf 3,41 gesenkt wurde. Das Unternehmen konzentriert sich darauf, die Rentabilität zu steigern und die Schulden zu reduzieren, mit dem Ziel eines Verhältnisses von unter 3,0x.
- Revenue increased 14.9% year-over-year to $58,170,000
- Core organic revenues growth of 3.0%
- Operating income increased 940%
- Non-GAAP adjusted operating income excluding unusual items rose 47.0% to $15,341,000
- Biopharmaceutical Development division saw 23.5% core organic growth
- Gross profit percentage expanded by 250 bps versus prior year
- Repaid $9.4 million in debt, reducing Net Leverage Ratio to 3.41
- Clinical Genomics division revenues declined 14.3% due to headwinds in China and North America
- Sterilization and Disinfection Control gross profit percentage contracted by 500 bps
Insights
Mesa Labs' Q1 FY2025 results show strong financial performance. The
The company's debt reduction of
Mesa Labs' diversified portfolio is proving resilient, with three out of four divisions showing growth. The Sterilization and Disinfection Control division's
However, the Clinical Genomics division's
Mesa Labs' strategic initiatives are yielding positive results. The successful integration of GKE, contributing
The "One Mesa" strategy in Asia Pacific, driving overall organic growth despite challenges in China, indicates effective cross-divisional synergies. However, the company needs to address the ongoing issues in the Clinical Genomics division, possibly through market diversification or product innovation. The commitment to reducing the Net Leverage Ratio below 3.0x shows a balanced approach to growth and financial prudence, which should resonate well with investors seeking stable, well-managed companies in the life sciences sector.
LAKEWOOD, Colo., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Mesa Laboratories, Inc. (NASDAQ:MLAB), a global leader in the design and manufacture of life science tools and critical quality control solutions, today announced results for its first fiscal quarter (“1Q25”) ended June 30, 2024 (amounts in thousands).
First quarter FY 2025 compared to first quarter FY 2024:
- Revenues increased
14.9% - Non-GAAP core organic revenues1 growth was
3.0% - Operating income increased
940% - Non-GAAP adjusted operating income excluding unusual items2 increased
47.0% and was26.4% as a percentage of revenues
We operate our business in four divisions: Sterilization and Disinfection Control (“SDC”), Clinical Genomics (“CG”), Biopharmaceutical Development (“BPD”), and Calibration Solutions (“CS”).
Effective 4Q24 we changed our definition of non-GAAP adjusted operating income3 (“AOI”) and non-GAAP adjusted operating income excluding unusual items to also exclude depreciation expense. Please see the reconciliation of those measures to GAAP operating (loss) income below. All prior periods have been restated to exclude depreciation expense from these non-GAAP measures.
Executive Commentary (amounts in thousands)
“We had a successful start our first quarter of the fiscal year by delivering positive momentum for revenues, orders, profitability, and debt levels while also demonstrating continued strategic traction. Sales and marketing improvements resulted in
“Revenues of
“Profitability as measured by our primary metric of AOI excluding unusual items grew by
“Looking forward, we are hopeful that our biopharmaceutical related end markets will continue the strength exhibited in 4Q24 and 1Q25. In any market scenario we will work diligently so that our differentiated products, strategic initiatives and the Mesa Way operating model enable us to outperform,” concluded Mr. Owens.
* Total Net Leverage Ratio under our Credit Facility is defined as the ratio of total debt minus unrestricted cash in excess of
Financial Results (unaudited, amounts in thousands, except per share data)
Total revenues were
On a non-GAAP basis, core organic revenues increased
Division Performance
Revenues | Organic Revenues Growth4 | Core Organic Revenues Growth | |||||||
(Amounts in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2024 | ||||||
SDC | $ | 22,957 | 4.9 | % | 5.2 | % | |||
CS | 11,801 | 3.0 | % | 2.6 | % | ||||
BPD | 12,008 | 21.4 | % | 23.5 | % | ||||
CG | 11,404 | (14.7 | )% | (14.3 | )% | ||||
Total | $ | 58,170 | 2.5 | % | 3.0 | % | |||
Sterilization and Disinfection Control (
Calibration Solutions (
Biopharmaceutical Development (
Clinical Genomics (
Use of Non-GAAP Financial Measures
Adjusted operating income, adjusted operating income excluding unusual items, organic revenues growth and core organic revenues growth are non-GAAP measures that exclude or adjust for certain items, as detailed within the tables in “Supplemental Information Regarding Non-GAAP Financial Measures.” As noted below, we now include depreciation expense as a non-cash addback in the definition of adjusted operating income as it better aligns with presentations of other companies within our industry. All prior period amounts have been restated to conform with the current presentation.
1 Core organic revenues growth, a non-GAAP measure, is defined as reported revenues growth excluding the impact of acquisitions and currency translation.
2 The non-GAAP measures of adjusted operating income excluding unusual items and adjusted operating income excluding unusual items per diluted share are defined to exclude the non-cash impact of amortization of intangible assets acquired in a business combination, stock-based compensation, depreciation, impairment of goodwill and long-lived assets and unusual items. Unusual items are disclosed to highlight costs that are not ongoing and are incurred as a direct result of a specific transaction, such as the consummation of an acquisition, and are identified to allow investors to understand the Company’s expectation on an ongoing basis, following the completion of acquisition and integration activities. A reconciliation of these non-GAAP measures to their GAAP counterparts is set forth below, along with additional information regarding their use.
3 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, depreciation and impairment of goodwill and long-lived assets. A reconciliation of these non-GAAP measures to their GAAP counterparts is set forth below, along with additional information regarding their use.
4 Organic revenues growth, a non-GAAP measure, is defined as reported revenues growth excluding the impact of acquisitions.
About Mesa Laboratories, Inc.
Mesa is a global leader in the design and manufacture 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. Any statements contained herein that are not statements of historical fact may be forward-looking statements, including statements relating to future financial results, business conditions and strategic initiatives. Words such as “expect,” “seek,” “plan” “anticipate,” “intend,” “believe,” “could,” “should,” “estimate,” “may,” “target,” “project,” and similar expressions may also identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. The 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. Risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections include those relating to: 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 effectively 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 actions of 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; the inherent uncertainty of 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 reduce 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; and general economic, industry, and capital markets conditions. 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, 2024 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; CFO
1-303-987-8000
investors@mesalabs.com
Financial Summary (Unaudited except for the information as of and for the year ended March 31, 2024)
Condensed Consolidated Statements of Operations | ||||||
(Amounts in thousands, except per share data) | Three Months Ended June 30, | |||||
2024 | 2023 | |||||
Revenues | $ | 58,170 | $ | 50,645 | ||
Cost of revenues | 20,921 | 19,462 | ||||
Gross profit | 37,249 | 31,183 | ||||
Operating expenses | 31,669 | 31,847 | ||||
Operating income (loss) | 5,580 | (664 | ) | |||
Nonoperating expense | 1,675 | 273 | ||||
Earnings (loss) before income taxes | 3,905 | (937 | ) | |||
Income tax expense (benefit) | 517 | (388 | ) | |||
Net income (loss) | $ | 3,388 | $ | (549 | ) | |
Earnings (loss) per share (basic) | $ | 0.63 | $ | (0.10 | ) | |
Earnings (loss) per share (diluted) | 0.62 | (0.10 | ) | |||
Weighted average common shares outstanding: | ||||||
Basic | 5,397 | 5,372 | ||||
Diluted | 5,424 | 5,372 | ||||
Consolidated Condensed Balance Sheets | ||||||
(Amounts in thousands) | June 30, 2024 | March 31, 2024 | ||||
Cash and cash equivalents | $ | 28,472 | $ | 28,214 | ||
Other current assets | 78,218 | 81,138 | ||||
Total current assets | 106,690 | 109,352 | ||||
Noncurrent assets | 333,671 | 337,444 | ||||
Total assets | $ | 440,361 | $ | 446,796 | ||
Liabilities | $ | 289,634 | $ | 301,403 | ||
Stockholders’ equity | 150,727 | 145,393 | ||||
Total liabilities and stockholders’ equity | $ | 440,361 | $ | 446,796 | ||
(Amounts in thousands, except per share data) | Three Months Ended June 30, | |||||
2024 | 2023 | |||||
Operating income (loss) (GAAP) | $ | 5,580 | $ | (664 | ) | |
Amortization of intangible assets | 4,061 | 7,220 | ||||
Stock-based compensation expense | 2,928 | 2,968 | ||||
Depreciation expense | 1,404 | 914 | ||||
AOI (non-GAAP) | $ | 13,973 | $ | 10,438 | ||
Unusual items – before tax | ||||||
Non-cash GKE inventory step-up1 | $ | 778 | $ | -- | ||
GKE integration costs2 | 590 | -- | ||||
Total impact of unusual items on AOI – before tax | $ | 1,368 | $ | -- | ||
AOI excluding unusual items (non-GAAP) | $ | 15,341 | $ | 10,438 | ||
AOI per share - basic (non-GAAP) | $ | 2.59 | $ | 1.94 | ||
AOI per share - diluted (non-GAAP) | 2.58 | 1.94 | ||||
AOI excluding unusual items per share – basic (non -GAAP) | 2.84 | 1.94 | ||||
AOI excluding unusual items per share – diluted (non-GAAP) | 2.83 | 1.94 | ||||
Weighted average common shares outstanding: | ||||||
Basic | 5,397 | 5,372 | ||||
Diluted | 5,424 | 5,372 | ||||
1 Non-cash cost of revenues expense associated with the step up to fair value of GKE inventory due to application of purchase accounting
2 GKE integration costs primarily consist of consulting costs for the integration of the acquiree, including the implementation of the enterprise resource planning tool and professional auditing services related to the audit of purchase accounting.
Organic and Core Organic Revenues Growth (Unaudited)
Three Months Ended June 30, 2024 | |||
Total revenues growth | 14.9 | % | |
Impact of acquisitions | (12.4 | )% | |
Organic revenues growth (non-GAAP) | 2.5 | % | |
Currency translation | 0.5 | % | |
Core organic revenues growth (non-GAAP) | 3.0 | % | |
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, non-GAAP adjusted operating income excluding unusual items per share amounts, non-GAAP organic revenues growth, and non-GAAP 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, depreciation 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.
- Depreciation expense as it is a non-cash charge.
- 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 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.
The non-GAAP measures of adjusted operating income and adjusted operating income per share presented in the reconciliation above are defined as Adjusted Operating Income less unusual items that are not on-going and are related to a specific transaction. We exclude these unusual items as they are outside of normal operations and are not on-going.
Our management recognizes that items such as amortization of intangible assets, stock-based compensation expense, depreciation 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 on the GAAP consolidated statements of operations. The non-GAAP numbers focus instead on 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.
FAQ
What was Mesa Laboratories' revenue growth in Q1 FY2025?
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