Revenue Growth - Revenues increased by 13.7% during the first three quarters of fiscal year 2025 compared to the prior year period, with GKE contributing $18,971 in revenues [117]. - Organic revenues grew by 4.3% in the first three quarters of fiscal year 2025, driven by a 26.6% increase in the Biopharmaceutical Development division and a 10.1% increase in the Calibration Solutions division [117]. - Revenues for the three months ended December 31, 2024, increased by 17.5% to $62,840 million compared to $53,473 million in the prior year [126]. - The Sterilization and Disinfection Control division's revenues increased by 21.6% for the three months ended December 31, 2024, primarily due to the GKE acquisition, contributing $2,857 million [128]. - Clinical Genomics division revenues increased by 1.0% to $12,667 million for the three months ended December 31, 2024, driven by strong consumables growth in North America [132]. - Biopharmaceutical Development division revenues surged by 29.8% to $12,237 million for the three months ended December 31, 2024, attributed to increased capital spending in the biopharmaceutical markets [136]. - Calibration Solutions division revenues rose by 18.7% to $14,429 million for the three months ended December 31, 2024, due to commercial efforts and price increases [139]. - Total company organic revenue growth for the three months ended December 31, 2024, was 12.6%, compared to a decline of 8.6% in the same period of 2023 [184]. - The Sterilization and Disinfection Control segment showed a total revenue growth of 21.6% for the three months ended December 31, 2024, up from 18.8% in 2023 [184]. - The Biopharmaceutical Development segment achieved a total revenue growth of 29.8% for the three months ended December 31, 2024, compared to a decline of 19.0% in 2023 [184]. - For the nine months ended December 31, 2024, total company organic revenue growth was 4.3%, an improvement from a decline of 6.2% in the same period of 2023 [184]. - The Clinical Genomics segment experienced a decline in total revenue of 14.2% for the nine months ended December 31, 2024, compared to a decline of 14.6% in 2023 [184]. Profitability and Operating Income - Gross profit as a percentage of revenues increased by 1.4 percentage points in the first nine months of fiscal year 2025, primarily due to lower intangible asset amortization expenses [119]. - Operating income for the nine months ended December 31, 2025, was $14,867, an increase of $15,658 compared to the prior year period, attributed to increased revenues and lower amortization expenses [121]. - Gross profit for the same period rose by 19.0% to $39,754 million, up from $33,402 million [126]. - Operating income for the three months ended December 31, 2024, was $5,779 million, a significant increase of 8,725.4% from a loss of $67 million in the prior year [126]. Operating Expenses - Operating expenses remained flat during the nine months ended December 31, 2025, with increases primarily due to higher performance-based compensation and professional services costs related to the GKE acquisition [120]. - Operating expenses increased by 1.5% for the three months ended December 31, 2024, with a notable increase of 10.5% when excluding decreased amortization expenses [141]. - Selling expenses increased by 7.3% to $10,450 million for the three months ended December 31, 2024, primarily due to performance-based compensation expenses [144]. - General and administrative expenses decreased by 5.0% to $18,472 million for the three months ended December 31, 2024, but would have increased by 10.5% excluding amortization expenses [146]. - Research and development expenses increased by 17.7% to $5,053 million for the three months ended December 31, 2024, and by 2.3% to $14,422 million for the nine months ended December 31, 2024, compared to the prior year periods [148]. Cash Flow and Financing - Net cash provided by operating activities was $34,143 million for the nine months ended December 31, 2024, an increase of $2,893 million compared to the prior year [175]. - Cash used in investing activities increased to $(3,492) million for the nine months ended December 31, 2024, primarily due to equipment purchases for the Biopharmaceutical Development division [175]. - Cash used in financing activities amounted to $28,316 for the nine months ended December 31, 2024, with $23,500 used to repay the Revolver and $2,813 to pay down the Term Loan [176]. - The company plans to use cash on hand, draws against the Revolver, and cash generated from operating activities to fund $101,250 million in principal debt payments due within the next twelve months [164]. - Revenues increased by $21,560 compared to the prior year period, although cash paid for interest on the Credit Facility rose by $5,600 due to higher outstanding debt [178]. Acquisitions - The company acquired GKE for $87,187 million during fiscal year 2024, with an expected holdback of approximately $9,000 million related to the acquisition [159]. - The GKE acquisition includes a payment of approximately $9,000 due in April 2025, pending adjustments for potential indemnification losses [179]. - The Belyntic acquisition may result in a payment of $1,500 if specified patents are issued, with an estimated fair value of remaining contingent consideration at $650 as of December 31, 2024 [180]. Risks and Challenges - The Biopharmaceutical Development division is particularly exposed to currency exchange risks, with significant expenses in Swedish Krona while revenues are primarily in USD and euros [185]. - The company faces foreign currency exchange rate risks, particularly in the Biopharmaceutical Development division, which incurs significant expenses in Swedish Krona while most revenues are in USD and euros [185]. - An estimated additional cash interest expense of approximately $930 per year is expected if interest rates increase by 1 percentage point [187]. - Inflation has historically been offset by annual price increases, but future price increases may lead to declines in sales volume if competitors do not adjust prices accordingly [188]. - Material weaknesses in internal controls were identified, with remediation plans implemented, but one related to IT general controls remains unresolved [191]. - The company identified material weaknesses in internal controls over financial reporting, with remediation plans implemented during the fiscal year 2025 [191]. - GKE was acquired in the third quarter of the fiscal year ended March 31, 2024, and its control environment is now included in the assessment of internal controls over financial reporting [195].

Core Insights - Mesa Laboratories, Inc. reported strong performance in its third fiscal quarter of FY 2025, with significant growth in revenues, orders, and adjusted operating income (AOI) while reducing debt levels [3][4][5] Financial Performance - Total revenues for 3Q25 reached $62,840, marking a 17.5% increase compared to 3Q24, driven by 12.6% organic growth and 4.9% from the GKE acquisition [4][8] - AOI excluding unusual items grew by 13.3% year-over-year to $14,788, representing 23.5% of total revenues [5][8] - Operating income increased dramatically by 8,725% to $5,779, although the company reported a net loss of $1,676 due to unrealized foreign currency losses and interest expenses [8][21] Division Performance - Sterilization and Disinfection Control (SDC) generated revenues of $23,507 with core organic growth of 8.2% [9] - Calibration Solutions (CS) saw revenues of $14,429, achieving core organic growth of 18.9% [10] - Biopharmaceutical Development (BPD) revenues reached $12,237, with a core organic growth of 31.3% driven by increased capital spending [11] - Clinical Genomics (CG) reported revenues of $12,667, with a modest core organic growth of 1.9% [12] Strategic Initiatives - The GKE acquisition is expected to contribute significantly to organic growth starting in 4Q25, with initial revenues exceeding expectations [4][9] - The company aims to reduce its total Net Leverage Ratio below 3.0x by the end of 2Q26, having reduced it to 3.20 in 3Q25 [3][8] Market Outlook - The company anticipates continued year-over-year core revenue growth in 4Q25, supported by solid sales funnels and backlog [6] - Potential challenges include adapting to new U.S. policies and economic conditions, particularly in Europe [6]

Revenue Growth - Total revenues for Q3 2025 were $62,840, an increase of 17.5% compared to Q3 2024, driven by 12.6% organic growth and 4.9% inorganic contribution from the GKE acquisition[5] - Biopharmaceutical Development revenues grew by 31.3% in Q3 2025, driven by increased capital spending in North America and Europe[14] - Clinical Genomics revenues increased by 10.2% sequentially, indicating stabilization despite challenges in the China market[15] - Core organic revenues growth for the quarter was 13.2%, reflecting strong performance across all divisions[8] - The company anticipates year-over-year core revenue growth in Q4 2025, supported by solid sales funnels and backlog[7] - The acquisition of GKE will be fully incorporated as organic growth starting in Q4 2025[5] - Organic revenues growth for the three months ended December 31, 2024, was 12.6%, while core organic revenues growth was 13.2%[30] - Revenues for the three months ended December 31, 2024, increased by 17.5% to $62,840,000 compared to $53,473,000 for the same period in 2023[26] Financial Performance - Non-GAAP adjusted operating income excluding unusual items increased by 13.3% to $14,788, representing 23.5% of total revenues[6][11] - Operating income for the three months ended December 31, 2024, was $5,779,000, a turnaround from a loss of $67,000 in the same period last year[26] - Non-GAAP adjusted operating income (AOI) for the three months ended December 31, 2024, was $14,515,000, compared to $11,975,000 in 2023, indicating a growth of 21.3%[29] Debt and Leverage - The company repaid $9.4 million in debt during Q3 2025, reducing the total Net Leverage Ratio to 3.20, with a target to drop below 3.0x by the end of Q2 2026[4] Profitability - Gross profit percentage for Q3 2025 contracted by 240 basis points when excluding non-cash charges, primarily due to product and geographical mix[6] - Gross profit for the nine months ended December 31, 2024, was $112,458,000, up from $96,694,000 in 2023, reflecting a significant increase[26] Equity and Assets - Total assets as of December 31, 2024, were $437,148,000, a slight decrease from $446,796,000 as of March 31, 2024[28] - Stockholders' equity increased to $155,214,000 as of December 31, 2024, compared to $145,393,000 in March 2024[28] Net Income and EPS - The company reported a net loss of $1,676,000 for the three months ended December 31, 2024, compared to a net income of $2,116,000 in the same period last year[26] - Basic earnings per share (EPS) for the three months ended December 31, 2024, was $(0.31), down from $0.39 in 2023[26] Non-Operating Expenses - The company incurred non-operating expenses of $7,996,000 for the three months ended December 31, 2024, compared to income of $(2,013,000) in the same period last year[26]

Core Viewpoint - Mesa Laboratories, Inc. is set to release its financial results for the third quarter of fiscal year 2025 on February 4, 2025, at 8:00 A.M. Eastern time [1] Company Overview - Mesa Laboratories, Inc. is a global leader in designing and manufacturing life science tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare, and medical device industries [2] - The company provides products and services aimed at ensuring product integrity, enhancing patient and worker safety, and improving quality of life globally [2]

Revenue Growth - For the first half of fiscal year 2025, revenues increased by 11.7% to $116,003, driven primarily by the acquisition of GKE, which contributed $12,117[106] - Organic revenues growth was 0.1%, with a notable 25.0% increase from the Biopharmaceutical Development division, while Clinical Genomics experienced a decline of 20.8% due to economic and regulatory challenges[106] - Revenues for the three months ended September 30, 2024, increased by 8.8% to $57,833 million compared to $53,165 million for the same period in 2023[113] - Total revenues for the three months ended September 30, 2024, showed a growth of 8.8%, compared to a decline of 9.5% in the same period of 2023[169] - Organic revenues growth for the total company was 0.1% for the six months ended September 30, 2024, compared to a decline of 5.0% in the same period of 2023[169] Segment Performance - The Sterilization and Disinfection Control division's revenues increased by 30.0% to $22,205 million for the three months ended September 30, 2024, compared to $17,080 million in the same period last year[115] - The Clinical Genomics division's revenues decreased by 26.0% to $11,499 million for the three months ended September 30, 2024, down from $15,549 million in the prior year[118] - The Biopharmaceutical Development division's revenues increased by 28.9% to $11,867 million for the three months ended September 30, 2024, compared to $9,207 million in the same period last year[121] - Calibration Solutions division's revenues increased by 8.2% to $12,262 million for the three months ended September 30, 2024, compared to $11,329 million in the prior year[125] - The Sterilization and Disinfection Control segment reported a total revenue growth of 30.0% for the three months ended September 30, 2024, while organic revenue growth was -4.3%[168] - The Biopharmaceutical Development segment experienced a revenue decline of 26.0% for the three months ended September 30, 2024[169] Profitability and Income - Gross profit as a percentage of revenues improved by 1.7 percentage points to 62.7%, attributed to lower amortization of intangible expenses and a margin contribution of 62.3% from the GKE acquisition[107] - Operating income reached $9,088, an increase of $9,812 compared to the prior year, with GKE contributing $4,533 to consolidated operating income[108] - Net income for the three months ended September 30, 2024, was $3,428 million, a significant increase of 378.7% from a net loss of $1,230 million in the prior year[113] Operating Expenses - Operating expenses declined slightly despite a revenue increase of 11.7%, aided by lower amortization expenses from the Clinical Genomics division[108] - Operating expenses decreased by 0.7% to $31,947 million for the three months ended September 30, 2024, compared to $32,169 million in the same period last year[127] - Selling expenses increased by 2.1% to $9,849 million for the three months ended September 30, 2024, compared to $9,650 million in the prior year[129] - General and administrative expenses decreased by 0.4% to $17,464 million for the three months ended September 30, 2024, compared to $17,526 million in the same period last year[131] - Research and development expenses are primarily driven by labor costs and third-party consultant fees, impacting overall financial performance[133] - Research and development expenses decreased by 7.2% to $4,634 for the three months ended September 30, 2024, and by 4.4% to $9,369 for the six months ended September 30, 2024, compared to the prior year periods[134] Financial Position and Cash Flow - Net cash provided by operating activities was $15,704 for the six months ended September 30, 2024, a decrease of $4,011 compared to $19,715 for the same period in 2023[159] - Working capital was $(45,252) as of September 30, 2024, compared to $65,040 as of March 31, 2024, primarily due to the current portion of the Notes being due within 12 months[146] - Cash used in financing activities was $17,719 for the six months ended September 30, 2024, compared to $15,079 for the same period in 2023[162] - The company expects to incur cash interest expense of approximately $7,300 within the next twelve months related to the Credit Facility[151] - The company plans to use cash on hand, draws against the Revolver, and cash generated from operating activities to fund the $101,250 due on the Notes and Term Loan within the next 12 months[152] Acquisitions and Future Commitments - The company acquired GKE for $87,187, net of cash and financial liabilities acquired, during fiscal year 2024[145] - The company agreed to pay approximately $9,700 million to GKE sellers in April 2025 as part of the GKE acquisition, pending adjustments for potential indemnification losses[164] - For the Belyntic acquisition, the company will pay $1,500 million to sellers if specified patents are issued, with an estimated fair value of remaining contingent consideration at $650 million as of September 30, 2024[165] Economic Factors - The impact of foreign currency fluctuations on reported revenues and expenses remains a significant factor in financial performance[109] - The company faces exchange rate risks, particularly in the Biopharmaceutical Development division, which incurs significant expenses in Swedish Krona while most revenue contracts are in USD and euros[170] - Inflation has not significantly impacted the company's financial statements recently, as cost increases have been offset by annual price increases[172] - The company estimates that a 1 percentage point increase in interest rates would result in approximately $920 million of additional cash interest expense per year[171] Operational Efficiency - The company aims to enhance operating efficiency through its Mesa Way system, focusing on customer-centric improvements and lean-based methodologies[101] - The company continues to pursue growth through both organic means and acquisitions, emphasizing the importance of integrating new businesses effectively[100]

Mesa Labs (MLAB) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The upward trend in estimate revisions for this quality control instruments and disposable products maker reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation b ...

Mesa Labs (MLAB) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a changing e ...

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 u ...

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 the Company, please visit its website at www.mesalabs.com Lakewood, Colo, July 08, 2024 (GLOBE NEWSWIRE) - ...

FORM 10-K Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File No: 0-11740 MESA LABORATORIES, INC. (Exact name of registrant as specified in its charter) Colorado 84-0872291 ( ...