Mesa Labs announces third quarter results

Mesa Laboratories, Inc. announced results for its third fiscal quarter ended December 31, 2023.

Third quarter FY 2024 compared to third quarter FY 2023:

• Revenues decreased 1.5% but increased 0.6% vs 2Q24
• Non-GAAP core organic revenues³ decreased 9%
• Operating income decreased 102%
• Non-GAAP adjusted operating income¹ excluding unusual items decreased 6.8% but increased 7.3% vs 2Q24
• Non-GAAP adjusted operating income excluding unusual items as a percentage of revenues increased sequentially to 22.4%

Executive Commentary (amounts in thousands)
“Revenues of $53,473 for the quarter decreased 1.5% as compared to the third quarter of fiscal year 2023 (“3Q23”), due primarily to a 9.0% core organic revenues (“core organic”) decrease which was mostly offset by $3,837 from the GKE acquisition. The full benefit of the GKE acquisition will not be recognized until the upcoming quarter as the GKE entities were acquired at various times during 3Q24. Revenues headwinds were comprised of capital equipment placements in the Biopharmaceutical Development division remaining well below recent history and the ongoing economic slowdown and broad healthcare anti-corruption initiatives in China, which began to significantly impact our Clinical Genomics Division during 3Q24, both of which were partially offset by core organic growth in the Calibration Solutions division,” said Gary Owens, Chief Executive Officer of Mesa.

“Profitability as measured by our primary metric of non-GAAP adjusted operating income (“AOI”) excluding unusual items came in at $11,981 or 22.4% of revenues, a decrease of 6.8% versus prior year but a sequential increase of 7.3% which was driven primarily by the results of the GKE acquisition. Despite the current challenging operating environment, gross profit as a percentage of revenues (“gross profit percentage”) increased 210 bps for the quarter as compared to 3Q23 despite decreases in revenues, primarily as a result of the impact of the GKE acquisition and improvements in our Calibration Solutions division,” added Owens.

“We were pleased to add GKE to our Sterilization & Disinfection Control division as their high-quality chemical indicators and healthcare channels are highly complementary to our traditional strengths in biological indicators and life science channels. Looking ahead, with ongoing economic uncertainty, we will be conservative in deploying any increases in operating expenses,” concluded Owens.
MB Bureau