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Sep 30, 2020
Mesa Labs Q2 2021 Earnings Report
Mesa Labs reported second quarter results with a revenue increase of 25% and an operating income decrease of 5%.
Key Takeaways
Mesa Labs reported a 25% increase in revenue to $31.86 million for the second quarter of fiscal year 2021. However, operating income decreased by 5% to $4.47 million, and net income decreased by 16% to $2.679 million. The company's performance was impacted by unusual items, but adjusted operating income, excluding these items, increased by 41%.
Revenues increased 25% compared to the same quarter in the prior year.
Operating income decreased 5% compared to the same quarter in the prior year.
Non-GAAP adjusted operating income excluding unusual items increased 41% compared to the same quarter in the prior year.
Organic revenues declined 8% as compared to the prior year.
Mesa Labs
Mesa Labs
Mesa Labs Revenue by Segment
Revenue by Segment
Sterilization & Disinfection Control Revenue
CapyFin.comBiopharmaceutical Development Revenue
CapyFin.com Forward Guidance
While Mesa Labs remains hopeful that macroeconomic improvement and broader opening in healthcare and biopharmaceutical verticals will continue, the recovery remains fragile. The company is financially strong with high operating cash flows and over $240 million of cash on the balance sheet, ready to invest in organic and inorganic growth opportunities.
Positive Outlook
- Strong sequential growth in Biopharmaceutical Development and Continuous Monitoring divisions.
- Prudent cost containment measures offset sequential contraction in Sterilization and Disinfection Controls and Instruments divisions.
- Total company gross profit percentage expanded based primarily on solid cost controls and favorable mix.
- Adjusted operating income excluding unusual items increased led by a significant contribution from the acquisition of Gyros Protein Technologies and cost controls across the company.
- Company remains strong financially with high operating cash flows and over $240 million of cash on the balance sheet.
Challenges Ahead
- Macroeconomic improvement and broader opening in healthcare and biopharmaceutical verticals remains fragile.
- Sterilization and Disinfection Control growth slowed in the quarter.
- Organic revenues contracted by 8% in the quarter as compared to prior year.
- Instruments division continued to suffer from macroeconomic conditions.
- Recovery remains fragile.
Revenue & Expenses
Visualization of income flow from segment revenue to net income