LAKEWOOD, Colo., June 07, 2017 (GLOBE NEWSWIRE) -- Mesa Laboratories, Inc. (NASDAQ:MLAB) (we, us, our, “Mesa” or the “Company”) today reported record net income and adjusted net income for the year ended March 31, 2017.
Highlights for the year ended March 31, 2017 as compared to last year:
- Revenues increased 11 percent
- Non-GAAP adjusted net income1 increased six percent
Revenues for the fourth quarter decreased two percent to $24,299,000 as compared to $24,812,000 for the same quarter last year. Operating income for the fourth quarter decreased nine percent to $5,340,000 as compared to $5,843,000 for the same quarter last year. Net income for the fourth quarter decreased nine percent to $3,643,000 or $0.94 per diluted share of common stock as compared to $3,991,000 or $1.06 per diluted share of common stock for the same quarter last year. Operating and net income for the fourth quarter ended March 31, 2017 were impacted by unusual items consisting of a $488,000 expense (included in operating expenses), before tax, related to relocation costs associated with the consolidation of our current Biological Indicator facilities in Omaha, Nebraska, Bozeman, Montana and Traverse City, Michigan into our new building in Bozeman, Montana and a $580,000 expense (included in operating expenses), before tax, related to a reserve for slow moving inventory associated with a specific model of our cold chain monitoring sensors.
Revenues for the year ended March 31, 2017 increased 11 percent to $93,665,000 as compared to $84,659,000 last year. Operating income for the year ended March 31, 2017 was flat at $16,313,000 as compared to $16,323,000 last year. Net income for the year ended March 31, 2017 was flat at $11,183,000 or $2.91 per diluted share of common stock as compared to $11,169,000 or $2.97 per diluted share of common stock last year. Operating and net income for the year ended March 31, 2017 were impacted by the same relocation expenses ($725,000, before tax for the year ended March 31, 2017) and inventory reserve described above. Net income for the year ended March 31, 2017 was also impacted by an unusual item consisting of a $450,000 expense (included in other expense, net), before tax, related to an increase in the PCD earn-out liability which resulted from higher revenues in the product line than were originally forecasted at the time the earn-out liability was booked in purchase accounting. Operating income and net income for the year ended March 31, 2016 were impacted by an unusual item consisting of $1,709,000 expense, before tax, related to a litigation settlement associated with the Amega Acquisition.
On a non-GAAP basis, adjusted net income (which excludes the non-cash impact of amortization of intangible assets, net of tax) for the fourth quarter decreased three percent to $4,799,000 or $1.24 per diluted share of common stock as compared to $4,973,000 or $1.33 per diluted share of common stock for the same quarter last year. Adjusted net income for the year ended March 31, 2017 increased six percent to $16,228,000 or $4.22 per diluted share of common stock as compared to $15,324,000 or $4.08 per diluted share of common stock last year. Adjusted net income for the three months ended March 31, 2017 and the years ended March 31, 2017 and 2016 was impacted by the same items noted above.
“Mesa completed fiscal 2017 with a solid fourth quarter,” said John J. Sullivan, President and Chief Executive Officer. “Revenues nearly matched the record fourth quarter of last year and profitability, as measured by adjusted net income (“ANI”), was strong. Absent the unusual items mentioned above, ANI in the fourth quarter would have been $5,572,000 which is 23 percent of revenues and 12 percent above last year’s fourth quarter. For the full year, I am very pleased that revenues increased 11 percent and ANI increased six percent to a new record of $16,228,000. Profitability for fiscal 2017 was negatively impacted by the unusual expenses mentioned above, along with the ramp up of a sales organization for our Cold Chain Packaging division. On an annual basis, these unusual expenses were partially offset by a lower tax rate for the full year of fiscal 2017.”
“During fiscal 2017 we continued our growth strategy and we made progress in our infrastructure investments,” continued John J. Sullivan. “Our Biological Indicators (“BI”) division grew 15 percent compared to fiscal 2016, through seven percent organic growth and eight percent due to acquisitions. Instruments division revenues declined four percent compared to fiscal 2016, due primarily to a large one-time order in the previous year and the timing of shipments in our DryCal product line, which were partially offset by 13 percent organic growth of the Dialyguard product line. Cold Chain Monitoring revenues grew nine percent, driven primarily by the November 2016 acquisition of Freshloc, and our Cold Chain Packaging division grew 114 percent. We made good progress in completing the new building in Bozeman, Montana to house our BI operations, which is the largest infrastructure project in Mesa’s history. The building was substantially completed by the end of fiscal 2017, and the move of production equipment from our other facilities started in the first quarter of fiscal 2018, which is expected to be completed by March 31, 2018. While there will be additional expenses of approximately $1,400,000 in fiscal 2018 associated with the relocation, we expect that the annual savings will approximate $600,000 once the relocation is completed. More importantly, the new facility provides much-needed additional space for future growth.”
