Mar 31, 2020

Mesa Labs Q4 2020 Earnings Report

Mesa Labs reported mixed Q4 2020 results with revenue growth offset by declines in operating income, impacted by unusual items.

Key Takeaways

Mesa Labs reported a 29% increase in revenues for Q4 2020, reaching $34.208 million. However, operating income decreased by 65% to $899,000, and the company experienced a net loss of $1.680 million, or $(0.37) per diluted share. Excluding unusual items, adjusted operating income increased by 32%.

Revenues increased by 29% compared to the same quarter in the prior year, reaching $34,208,000.

Operating income decreased by 65% to $899,000 due to unusual items.

Net loss was $1,680,000, a decrease of 220% or $(0.37) per diluted share.

Sterilization and Disinfection Control division delivered strong results with 17% total and organic revenue growth.

Total Revenue
$34.2M
Previous year: $26.4M
+29.4%
EPS
$0.06
Previous year: $0.69
-91.3%
Organic Revenues Growth
1%
0
Gross Profit
$18.6M
Previous year: $15.6M
+19.4%
Cash and Equivalents
$0
Previous year: $10.2M
-100.0%
Free Cash Flow
$7.84M
Previous year: $10.2M
-23.2%
Total Assets
$409M
Previous year: $157M
+161.0%

Mesa Labs

Mesa Labs

Mesa Labs Revenue by Segment

Forward Guidance

COVID-19 is expected to continue to negatively impact sales during the remainder of the fiscal year, with varying effects on different divisions.

Positive Outlook

  • Solid cash position.
  • Strong financial and operational foundation.
  • Flexibility in responding to pandemic challenges.
  • Readiness for anticipated recovery.
  • Broad exposure to biopharmaceuticals, medical devices, and healthcare services provides a solid long-term organic growth trajectory and attractive acquisition opportunities.

Challenges Ahead

  • COVID-19 restrictions will continue to have a negative impact during the remainder of this fiscal year that we are unable to quantify at this time.
  • Divisions serving biopharmaceutical and healthcare customers may see sales activity resume more quickly but there may be an additional lag for hardware revenues.
  • Instruments division may rebound more slowly.
  • Travel restrictions impacting the ability to complete Gyros Protein Technologies integration in a timely manner.
  • Potential for continued negative impact from COVID-19.