On June 5, 2024, Mesa Laboratories Inc (MLAB, Financial) released its 8-K filing detailing the financial results for the fourth fiscal quarter (4Q24) and full fiscal year 2024 (FY24) ended March 31, 2024. Mesa Laboratories Inc, a global leader in the design and manufacture of life science tools and critical quality control solutions, operates in four divisions: Sterilization and Disinfection Control (SDC), Clinical Genomics (CG), Biopharmaceutical Development (BPD), and Calibration Solutions (CS).
Performance Overview
For the fourth quarter of FY24, Mesa Laboratories Inc reported total revenues of $58.9 million, a 6% increase compared to the same period last year, surpassing the analyst estimate of $55.27 million. However, the company posted a net loss of $254.6 million, or $(47.20) per diluted share, significantly impacted by a $274.5 million non-cash impairment of goodwill and long-lived assets. This resulted in an adjusted operating income (AOI) excluding unusual items of $14.9 million, a 26.3% increase from the prior year.
Annual Financial Highlights
For the full fiscal year 2024, Mesa Laboratories Inc reported total revenues of $216.2 million, a slight decrease of 1.3% compared to FY23. The net loss for the year was $254.2 million, or $(47.20) per diluted share. On a non-GAAP basis, core organic revenues decreased by 5.4%, while AOI excluding unusual items increased by 0.7% to $50.5 million.
Division Performance
| Division | Q4 Revenue (in thousands) | FY24 Revenue (in thousands) | Q4 Core Organic Revenue Growth | FY24 Core Organic Revenue Growth |
|---|---|---|---|---|
| SDC | $22,779 | $75,124 | 4.2% | 0.6% |
| CG | $11,124 | $52,588 | (18.1)% | (14.2)% |
| BPD | $12,186 | $40,712 | (2.6)% | (13.4)% |
| CS | $12,815 | $47,763 | 1.4% | 6.6% |
Key Metrics and Financial Statements
Key metrics from the financial statements include:
- Gross profit for Q4 was $36.6 million, compared to $33.2 million in the same period last year.
- Operating expenses excluding impairment were $33.3 million for Q4, slightly up from $32.7 million in Q4 FY23.
- Cash and cash equivalents stood at $28.2 million as of March 31, 2024, down from $32.9 million a year earlier.
- Total assets were $444.8 million, compared to $661.8 million as of March 31, 2023.
Executive Commentary
“Several significant strategic milestones were attained in 4Q24 including: closing the acquisition of the GKE China entity, extending and expanding our bank credit facility, executing a restructuring in our Clinical Genomics division, and reducing inventory by 19.4%,” said Gary Owens, Chief Executive Officer of Mesa Laboratories Inc.
“Revenues of $58,904 for the quarter increased 6.0% as compared to 4Q23, driven by $5,452 from GKE, partially offset by a core organic decline of 3.5%. Sequentially, revenues increased by 10.2% from 3Q24 with strong sequential growth from both BPD and SDC,” added Mr. Owens.
Analysis and Outlook
Mesa Laboratories Inc's performance in Q4 and FY24 highlights both achievements and challenges. The acquisition of GKE and the expansion of the bank credit facility are strategic moves that position the company for future growth. However, the significant non-cash impairment charges and the decline in core organic revenues in certain divisions underscore the ongoing challenges in the biopharmaceutical and clinical genomics markets.
Despite these hurdles, the company's focus on cost control, efficiency gains, and strategic restructuring efforts are positive indicators for potential recovery and growth. Investors will be keen to see how Mesa Laboratories Inc navigates the evolving regulatory landscape and economic conditions in the coming quarters.
Explore the complete 8-K earnings release (here) from Mesa Laboratories Inc for further details.
