Mesa Labs Announces Second Quarter Results
Mesa Laboratories (NASDAQ:MLAB) reported Q2 FY2025 results with revenues increasing 8.8% to $57,833,000, primarily driven by 11% growth from the GKE acquisition. Operating income surged 5,947% to $3,508,000, while net income increased 379%. The company experienced a 2.8% decline in core organic revenues. Notable division performance included Sterilization and Disinfection Control (38% of revenues) declining 5.2% in core organic growth, while Biopharmaceutical Development showed strong growth of 27.9%. The company reduced its debt by $7,438,000, bringing the Net Leverage Ratio to 3.26.
Mesa Laboratories (NASDAQ:MLAB) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, con un aumento delle entrate dell'8,8% a $57.833.000, principalmente grazie a una crescita dell'11% derivante dall'acquisizione di GKE. L'utile operativo è salito del 5.947% a $3.508.000, mentre l'utile netto è aumentato del 379%. L'azienda ha registrato un calo del 2,8% delle entrate organiche core. Le performance delle divisioni hanno mostrato un calo del 5,2% nella crescita organica core nel settore Sterilizzazione e Controllo della Disinfezione (38% delle entrate), mentre lo Sviluppo Biopharmaceutico ha mostrato una forte crescita del 27,9%. L'azienda ha ridotto il suo debito di $7.438.000, portando il rapporto di indebitamento netto a 3,26.
Mesa Laboratories (NASDAQ:MLAB) reportó los resultados del segundo trimestre del año fiscal 2025, con un incremento de ingresos del 8,8% a $57,833,000, impulsado principalmente por un crecimiento del 11% debido a la adquisición de GKE. El ingreso operativo se disparó un 5,947% a $3,508,000, mientras que el ingreso neto aumentó un 379%. La empresa experimentó una disminución del 2,8% en los ingresos orgánicos centrales. El desempeño notable de las divisiones incluye la Esterilización y Control de Desinfección (38% de los ingresos), que disminuyó un 5,2% en el crecimiento orgánico central, mientras que el Desarrollo Biofarmacéutico mostró un fuerte crecimiento del 27,9%. La empresa redujo su deuda en $7,438,000, llevando el Cociente de Endeudamiento Neto a 3,26.
메사 연구소 (NASDAQ:MLAB)는 2025 회계연도 2분기 실적을 발표했으며, 수익이 8.8% 증가하여 $57,833,000에 달했습니다. 이는 주로 GKE 인수로 11%의 성장을 이끌어낸 결과입니다. 운영 수익은 5,947% 증가하여 $3,508,000에 달했고, 순이익은 379% 증가했습니다. 이 회사는 핵심 유기 수익에서 2.8% 감소를 경험했습니다. 주목할 만한 부문 성과는 매출의 38%를 차지하는 멸균 및 소독 관리 부문이 핵심 유기 성장에서 5.2% 감소한 반면, 생물펑크 개발 부문은 27.9%의 강력한 성장을 보였습니다. 회사는 부채를 $7,438,000 줄여 순레버리지 비율을 3.26으로 낮췄습니다.
Mesa Laboratories (NASDAQ:MLAB) a annoncé les résultats du deuxième trimestre de l'exercice 2025, avec des revenus en augmentation de 8,8 % à 57 833 000 $, principalement dus à une croissance de 11 % liée à l'acquisition de GKE. Le bénéfice d'exploitation a explosé de 5 947 % pour atteindre 3 508 000 $, tandis que le bénéfice net a augmenté de 379 %. L'entreprise a connu une baisse de 2,8 % de ses revenus organiques de base. Les performances notables des divisions comprenaient une baisse de 5,2 % dans la croissance organique de base du secteur de la stérilisation et du contrôle de la désinfection (38 % des revenus), tandis que le développement biopharmaceutique a montré une forte croissance de 27,9 %. L'entreprise a réduit sa dette de 7 438 000 $, portant le ratio d'endettement net à 3,26.
Mesa Laboratories (NASDAQ:MLAB) berichtete über die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025, mit einem Umsatzanstieg von 8,8% auf 57.833.000 $, hauptsächlich angetrieben durch ein Wachstum von 11% aufgrund der Übernahme von GKE. Der Betriebsgewinn stieg um 5.947% auf 3.508.000 $, während der Nettogewinn um 379% zunahm. Das Unternehmen verzeichnete einen Rückgang der organischen Kernumsätze um 2,8%. Bemerkenswerte Leistungen der Divisionen beinhalteten einen Rückgang von 5,2% im organischen Wachstum des Bereichs Sterilisation und Desinfektionskontrolle (38% des Umsatzes), während die biopharmazeutische Entwicklung ein starkes Wachstum von 27,9% zeigte. Das Unternehmen reduzierte seine Schulden um 7.438.000 $, wodurch das Netto-Verschuldungsverhältnis auf 3,26 sank.
- Operating income increased significantly by 5,947% to $3,508,000
- Total revenues grew 8.8% to $57,833,000
- Biopharmaceutical Development division showed 27.9% core organic growth
- Debt reduction of $7,438,000 during Q2
- Calibration Solutions division achieved 8.2% core organic growth
- Core organic revenues declined 2.8%
- Sterilization and Disinfection Control division showed 5.2% core organic revenue decline
- Clinical Genomics division experienced 26.5% core organic revenue decline
- Net Leverage Ratio remains above target at 3.26
Insights
Mesa Labs delivered mixed Q2 results with some concerning trends beneath the headline numbers. While total revenues grew
The balance sheet shows some improvement with debt reduction of
The market dynamics across Mesa's divisions reveal important trends. The Biopharmaceutical Development segment shows strong momentum with
LAKEWOOD, Colo., Nov. 07, 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 second fiscal quarter (“2Q25”) ended September 30, 2024 (amounts in thousands).
Second quarter FY 2025 compared to second quarter FY 2024:
- Revenues increased
8.8% - Non-GAAP core organic revenues¹ decline was
2.8% - Operating income increased 5,
947% to$3,508 - Non-GAAP adjusted operating income excluding unusual items² increased
18.9% and was24.8% 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 income (loss) below. All prior periods have been restated to exclude depreciation expense from these non-GAAP measures.
Executive Commentary (amounts in thousands)
“The business continued its positive momentum in 2Q25 with sequential growth in orders and reductions in inventory and debt levels. Despite solid sequential order growth, sequential total revenues growth contracted by
“Overall revenues of
“Profitability as measured by our primary metric of AOI excluding unusual items grew by
“Looking forward, we are optimistic that solid sales funnels will drive strong year over year growth in 3Q25 for BPD. In addition, we expect continued sequential growth in 3Q25 for CG, CS and SDC which when combined with BPD will result in strong organic revenue growth in 3Q25 for the Company as a whole. Looking out further, we will remain highly attuned to market shifts while continuing to invest in our strategic initiatives driving long term growth” 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
Division Performance
Revenues | Organic Revenues Growth⁴ | Core Organic Revenues Growth | ||||||||
(Amounts in thousands) | Three Months Ended September 30, 2024 | Six Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Six Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Six Months Ended September 30, 2024 | ||||
SDC | $ | 22,205 | $ | 45,162 | (4.3)% | (5.2)% | (0.2)% | |||
CS | 12,262 | 24,063 | ||||||||
BPD | 11,867 | 23,875 | ||||||||
CG | 11,499 | 22,903 | (26.0)% | (20.8)% | (26.5)% | (20.8)% | ||||
Total reportable segments | $ | 57,833 | $ | 116,003 | (2.2)% | (2.8)% | ||||
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” “intend,” “anticipate,” “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 September 30, | Six Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenues | $ | 57,833 | $ | 53,165 | $ | 116,003 | $ | 103,810 |
Cost of revenues | 22,378 | 21,056 | 43,299 | 40,518 | ||||
Gross profit | 35,455 | 32,109 | 72,704 | 63,292 | ||||
Operating expenses | 31,947 | 32,169 | 63,616 | 64,016 | ||||
Operating income (loss) | 3,508 | (60) | 9,088 | (724) | ||||
Nonoperating (income) expense | (304) | 1,265 | 1,371 | 1,538 | ||||
Earnings (loss) before income taxes | 3,812 | (1,325) | 7,717 | (2,262) | ||||
Income tax expense (benefit) | 384 | (95) | 901 | (483) | ||||
Net income (loss) | $ | 3,428 | $ | (1,230) | $ | 6,816 | $ | (1,779) |
Earnings (loss) per share (basic) | $ | 0.63 | $ | (0.23) | $ | 1.26 | $ | (0.33) |
Earnings (loss) per share (diluted) | 0.63 | (0.23) | 1.25 | (0.33) | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 5,413 | 5,387 | 5,405 | 5,379 | ||||
Diluted | 5,471 | 5,387 | 5,448 | 5,379 |
Consolidated Condensed Balance Sheets | ||||
(Amounts in thousands) | September 30, 2024 | March 31, 2024 | ||
Cash and cash equivalents | $ | 24,337 | $ | 28,214 |
Other current assets | 83,641 | 81,138 | ||
Total current assets | 107,978 | 109,352 | ||
Noncurrent assets | 346,120 | 337,444 | ||
Total assets | $ | 454,098 | $ | 446,796 |
Liabilities | $ | 292,647 | $ | 301,403 |
Stockholders’ equity | 161,451 | 145,393 | ||
Total liabilities and stockholders’ equity | $ | 454,098 | $ | 446,796 |
Reconciliation of Non-GAAP Measures | ||||||||
(Unaudited) | ||||||||
GAAP Operating Income (Loss) to Non-GAAP Adjusted Operating Income (“AOI”) | ||||||||
(Amounts in thousands, except per share data) | Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Operating income (loss) (GAAP) | $ | 3,508 | $ | (60) | $ | 9,088 | $ | (724) |
Amortization of intangible assets | 4,550 | 7,185 | 8,611 | 14,405 | ||||
Stock-based compensation expense | 3,837 | 3,183 | 6,765 | 6,151 | ||||
Depreciation expense | 1,518 | 911 | 2,922 | 1,825 | ||||
AOI (non-GAAP) | $ | 13,413 | $ | 11,219 | $ | 27,386 | $ | 21,657 |
Unusual items – before tax | ||||||||
Non-cash GKE inventory step-up¹ | $ | 454 | $ | -- | $ | 1,232 | $ | -- |
GKE integration costs² | 485 | -- | 1,075 | -- | ||||
GKE acquisition costs³ | -- | 505 | -- | 505 | ||||
Restructuring costs | -- | 350 | -- | 350 | ||||
Total impact of unusual items on AOI – before tax | $ | 939 | $ | 855 | $ | 2,307 | $ | 855 |
AOI excluding unusual items (non-GAAP) | $ | 14,352 | $ | 12,074 | $ | 29,693 | $ | 22,512 |
AOI per share – basic (non-GAAP) | $ | 2.48 | $ | 2.08 | $ | 5.07 | $ | 4.03 |
AOI per share – diluted (non-GAAP) | 2.45 | 2.08 | 5.03 | 4.03 | ||||
AOI excluding unusual items per share – basic (non -GAAP) | 2.65 | 2.24 | 5.49 | 4.19 | ||||
AOI excluding unusual items per share – diluted (non-GAAP) | 2.62 | 2.24 | 5.45 | 4.19 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 5,413 | 5,387 | 5,405 | 5,379 | ||||
Diluted | 5,471 | 5,387 | 5,448 | 5,379 | ||||
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. | ||||||||
³ GKE acquisition costs primarily consist of legal services related to the stock purchase agreement, professional services for due diligence procedures and quality of earnings report and various other consultants | ||||||||
Organic and Core Organic Revenues Growth (Unaudited)
Three Months Ended September 30, 2024 | Six Months Ended September 30, 2024 | |
Total revenues growth | ||
Impact of acquisitions | (11.0)% | (11.6)% |
Organic revenues growth(non-GAAP) | (2.2)% | |
Currency translation | (0.6)% | (0.1)% |
Core organic revenues growth(non-GAAP) | (2.8)% | |
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 Labs (MLAB) revenue growth in Q2 2025?
How did Mesa Labs (MLAB) Biopharmaceutical Development division perform in Q2 2025?