form-10qsb_063002
Form 10-QSB
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from ____________ to ____________
Commission File Number 0-11740
MESA LABORATORIES, INC.
(Exact Name of Small Business Issuer as Specified in its Charter)
COLORADO 84-0872291
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
12100 WEST SIXTH AVENUE, LAKEWOOD, COLORADO 80228
(Address of Principal Executive Offices) (Zip Code)
Issuer's telephone number, including area code: (303) 987-8000
Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act, during the past 12 months and (2) has been
subject to the filing requirements for the past 90 days. Yes X No ___.
State the number of shares outstanding of each of the Issuer's classes of common
stock, as of the latest practicable date:
There were 3,314,476 shares of the Issuer's common stock, no par value,
outstanding as of June 30, 2002.
ITEM 1. FINANCIAL STATEMENTS FORM 10-QSB
MESA LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
ASSETS JUNE 30, 2002 MARCH 31, 2002
CURRENT ASSETS
Cash and Cash Equivalents $ 4,162,696 $ 3,461,978
Accounts Receivable, Net 2,124,056 2,296,024
Inventories 2,420,547 2,443,091
Prepaid Expenses and Other 189,436 398,290
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TOTAL CURRENT ASSETS 8,896,735 8,599,383
PROPERTY, PLANT & EQUIPMENT, NET 1,392,779 1,398,398
OTHER ASSETS
Goodwill and Other 4,361,942 4,438,942
----------- -----------
TOTAL ASSETS $14,651,456 $14,436,723
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 106,796 $ 88,894
Accrued Salaries & Payroll Taxes 259,489 310,272
Other Accrued Expenses 85,304 66,878
Taxes Payable 25,038 34,661
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TOTAL CURRENT LIABILITIES 476,627 500,705
LONG TERM LIABILITIES
Deferred Income Taxes Payable 41,744 41,744
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value - -
Common Stock, No Par Value;
authorized 8,000,000 shares;
issued and outstanding,
3,314,476 shares (6/30/02)
and 3,342,376 shares (3/31/02) 1,733,867 1,791,758
Retained Earnings 12,399,218 12,102,516
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TOTAL STOCKHOLDERS' EQUITY 14,133,085 13,894,274
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $14,651,456 $14,436,723
=========== ===========
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
---------------------------------
MESA LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Three Months
Ended Ended
June 30, 2002 June 30, 2001
------------- -------------
Sales $2,052,455 $2,059,654
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Cost of Goods Sold 811,783 793,863
Selling, General & Administrative 581,616 563,402
Research and Development 49,449 98,814
Other (Income) and Expenses (14,612) (23,838)
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1,428,236 1,432,241
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Earnings Before Income Taxes 624,219 627,413
Income Taxes 204,500 173,822
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Net Income $ 419,719 $ 453,591
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Net Income Per Share (Basic) $ .13 $ .13
========== ==========
Net Income Per Share (Diluted) $ .12 $ .13
========== ==========
Average Common Shares Outstanding (Basic) 3,333,000 3,507,000
========== ==========
Average Common Shares Outstanding (Diluted) 3,415,000 3,525,000
========== ==========
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
MESA LABORATORIES, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Three Months
Ended Ended
June 30, 2002 June 30, 2001
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Cash Flows From Operating Activities:
Net Income $ 419,719 $ 453,591
Depreciation and Amortization 29,597 29,185
Change in Assets and Liabilities-
(Increase) Decrease in Accounts Receivable 248,968 420,034
(Increase) Decrease in Inventories 22,544 (154,052)
(Increase) Decrease in Prepaid Expenses 208,854 (78,272)
Increase (Decrease) in Accounts Payable 17,902 (297,996)
Increase (Decrease) in Accrued Liabilities (41,980) (124,463)
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Net Cash (Used) Provided by Operating
Activities 905,604 248,027
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Cash Flows From Investing Activities:
Capital Expenditures, Net of Retirements (23,978) (3,906)
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Net Cash (Used) Provided by Investing Activities (23,978) (3,906)
---------- ----------
Cash Flows From Financing Activities:
-
Treasury Stock Purchases (194,033) (353,001)
Proceeds From Stock Options Exercised 13,125 3
---------- ----------
Net Cash (Used) Provided by Financing Activities (180,908) (352,998)
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Net Increase (Decrease) In Cash and Equivalents 700,718 (108,877)
Cash and Cash Equivalents at Beginning of Period 3,461,978 2,316,769
---------- ----------
Cash and Cash Equivalents at End of Period $4,162,696 $2,207,892
========== ==========
ITEM 1. FINANCIAL STATEMENTS (CONTINUED) FORM 10-QSB
MESA LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002 AND 2001
NOTE A. SUMMARY OF ACCOUNTING POLICIES
The summary of the Issuer's significant accounting policies are
incorporated by reference to the Company's annual report on Form 10KSB, at
March 31, 2002.
The accompanying unaudited condensed financial statements reflect all
adjustments which, in the opinion of management, are necessary for a fair
presentation of the results of operations, financial position and cash
flows. The results of the interim period are not necessarily indicative of
the results for the full year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
On June 30, 2002, the Company had cash and short term investments of
$4,162,696. In addition, the Company had other current assets totaling
$4,734,039 and total current assets of $8,896,735. Current liabilities of
Mesa Laboratories, Inc. were $476,627 which resulted in a current ratio of
19:1.
The Company has made net capital asset purchases of $23,978 for the
fiscal year-to-date.
The Company has instituted a program to repurchase up to 500,000
shares of its outstanding common stock. Under the plan, the shares may be
purchased from time to time in the open market at prevailing prices or in
negotiated transactions off the market. Shares purchased will be canceled
and repurchases will be made with existing cash reserves.
RESULTS OF OPERATIONS
REVENUE
Net sales for the three months ended June 30, 2002 decreased $7,199 or
less than one percent to $2,052,455 from the $2,059,654 net sales level
achieved for the same three month period last year. During the quarter the
medical products produced a 4% increase, which was off-set by small
decreases in the logging and ultrasonic portions of the products. Datatrace
logging product sales were impacted by delays in shipping orders for the
new Micropack III version of temperature loggers which carried past the
quarter end. The rate of shipping improved during the month of July and we
expect to increase our production capacity further during the current
quarter in order to balance production with the demand for this new
product.
FORM 10-QSB
COST OF GOODS SOLD
Cost of goods sold for the first three months as a percent of net
sales was 40% which represents a 1% increase from the 39% level for the
same three month period last year. Most of the increase realized in the
quarter was attributable to higher labor and variance costs associated to
the initial production of the new Micropack III Temperature Loggers.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the first three
months increased 3% or $18,214 to $581,616 from $563,402 in the same period
last year. Marketing expenses accounted for almost the entire increase in
selling, general and administrative expenses. Costs associated with the
introduction of the Datatrace Micropack III product were partially off-set
by small decreases in the marketing costs for the Company's other products.
Administration costs for the quarter increased only slightly due to
increased consulting expense.
RESEARCH AND DEVELOPMENT
Research and development for the first three months decreased to
$49,449 from $98,814 which represents a 50% decrease from the same period
last year. Research and development costs decreased due to lower
compensation and consulting costs due to the completion of software
projects and completion of the Micropack III project, which was
transitioning into manufacturing during the quarter.
NET INCOME
Net income for the three months ended June 30, 2002 decreased 7% to
$419,719 or $.12 per diluted share from $453,591 or $.13 per diluted share
last year. The change in net income from fiscal 2002 to fiscal 2003 was due
to tax credits realized in fiscal 2002 which are expected to be reduced in
fiscal 2003. Within the major expense categories, increases in cost of
goods sold and selling, general and administration costs were off-set by a
decrease in research and development spending.
PART II-OTHER INFORMATION
ITEM 6. Exhibits and reports on Form 8-K
a) Exhibits:
99.1 Certification of Chief Executive Officer and Chief Financial Officer
b) Reports on Form 8-K None
FORM 10-QSB
MESA LABORATORIES, INC.
JUNE 30, 2002
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the Issuer
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
MESA LABORATORIES, INC.
(Issuer)
DATED: August 14, 2002 BY: /s/ Luke R. Schmieder
Luke R. Schmieder
President, Chief Executive Officer,
Treasurer and Director
DATED: August 14, 2002 BY: /s/ Steven W. Peterson
Steven W. Peterson
Vice President-Finance, Chief
Financial and Accounting Officer and
Secretary