Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Jan. 25, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | MESA LABORATORIES INC /CO | |
Entity Central Index Key | 724,004 | |
Trading Symbol | mlab | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 3,868,491 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 5,729 | $ 5,469 |
Accounts receivable, less allowances of $128 and $179, respectively | 13,254 | 14,302 |
Inventories, net | 7,606 | 9,228 |
Prepaid income taxes | 4,476 | 273 |
Prepaid expenses and other | 1,496 | 782 |
Assets held for sale | 1,934 | |
Total current assets | 32,561 | 31,988 |
Property, plant and equipment, net | 22,997 | 23,593 |
Deferred taxes | 118 | 127 |
Intangibles, net | 38,336 | 42,850 |
Goodwill | 64,148 | 65,543 |
Total assets | 158,160 | 164,101 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 2,426 | 2,380 |
Accrued salaries and payroll taxes | 6,077 | 4,284 |
Current portion of long-term debt | 2,000 | 1,625 |
Unearned revenues | 3,728 | 3,921 |
Current portion of contingent consideration | 45 | 709 |
Income taxes payable | 1,008 | |
Estimated legal liability | 3,300 | |
Other accrued expenses | 3,207 | 3,363 |
Total current liabilities | 20,783 | 17,290 |
Deferred income taxes | 2,457 | 2,621 |
Long-term debt, net of debt issuance costs and current portion | 27,213 | 44,635 |
Other long-term liabilities | 114 | 194 |
Total liabilities | 50,567 | 64,740 |
Stockholders’ equity: | ||
Common stock, no par value; authorized 25,000,000 shares; issued and outstanding, 3,859,327 and 3,801,439 shares, respectively | 36,528 | 30,516 |
Retained earnings | 72,520 | 68,281 |
Accumulated other comprehensive (loss) income | (1,455) | 564 |
Total stockholders’ equity | 107,593 | 99,361 |
Total liabilities and stockholders’ equity | $ 158,160 | $ 164,101 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Allowance for doubtful accounts receivable | $ 128 | $ 179 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 3,859,327 | 3,801,439 |
Common stock, shares outstanding (in shares) | 3,859,327 | 3,801,439 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Revenues | [1] | $ 26,682 | $ 23,671 | $ 76,689 | $ 69,298 | |
Cost of revenues | 11,048 | 10,990 | 31,387 | 30,713 | ||
Gross profit | 15,634 | 12,681 | 45,302 | 38,585 | ||
Operating expenses: | ||||||
Selling | 2,054 | 1,942 | 5,748 | 6,909 | ||
General and administrative | 7,731 | 6,256 | 22,824 | 19,525 | ||
Research and development | 860 | 752 | 2,539 | 2,790 | ||
Impairment loss on goodwill and long-lived assets | 3,669 | 13,819 | 3,669 | 13,819 | [2] | |
Estimated legal settlement | 3,300 | |||||
Total operating expenses | 14,314 | 22,769 | 38,080 | 43,043 | ||
Operating income (loss) | 1,320 | (10,088) | 7,222 | (4,458) | ||
Other expense, net | 372 | 438 | 568 | 1,659 | ||
Earnings (loss) before income taxes | 948 | (10,526) | 6,654 | (6,117) | ||
Income tax expense | 90 | 560 | 572 | 1,099 | ||
Net income (loss) | $ 858 | $ (11,086) | $ 6,082 | $ (7,216) | [2] | |
Earnings (loss) per share: | ||||||
Basic (in dollars per share) | $ 0.22 | $ (2.93) | $ 1.58 | $ (1.92) | ||
Diluted (in dollars per share) | $ 0.21 | $ (2.93) | $ 1.51 | $ (1.92) | ||
Weighted-average common shares outstanding: | ||||||
Basic (in shares) | 3,855 | 3,781 | 3,840 | 3,765 | ||
Diluted (in shares) | 4,045 | 3,781 | 4,037 | 3,765 | ||
[1] | Intersegment revenues are not significant and are eliminated to arrive at consolidated totals. | |||||
[2] | -Contingent consideration is classified as a financing activity pursuant to ASU 2016-15. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net income | $ 858 | $ (11,086) | $ 6,082 | $ (7,216) | [1] |
Other comprehensive (loss) income, net of tax: | |||||
Foreign currency translation adjustments | (658) | 181 | (2,019) | 1,880 | |
Comprehensive (loss) income | $ 200 | $ (10,905) | $ 4,063 | $ (5,336) | |
[1] | -Contingent consideration is classified as a financing activity pursuant to ASU 2016-15. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Cash flows from operating activities: | |||
Net income | $ 6,082 | $ (7,216) | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,162 | 6,981 | |
Stock-based compensation | 2,424 | 1,423 | |
Impairment loss on goodwill and long-lived assets | 3,669 | 13,819 | |
Change in inventory reserve | 49 | 2,120 | |
Gain on disposition of assets | (288) | (116) | |
Deferred taxes | (1,077) | ||
Foreign currency adjustments | (255) | ||
Adjustment to contingent consideration | (32) | 300 | |
Other | 135 | 83 | |
Cash provided by changes in operating assets and liabilities: | |||
Accounts receivable, net | 893 | 2,621 | |
Inventories, net | 1,302 | 1,414 | |
Prepaid expenses and other current assets | (4,611) | (1,687) | |
Accounts payable | 311 | (139) | |
Accrued liabilities and taxes payable | 3,375 | (1,751) | |
Unearned revenues | (179) | (442) | |
Net cash provided by operating activities | 20,292 | 16,078 | |
Cash flows from investing activities: | |||
Acquisitions | (4,840) | (15,433) | |
Proceeds from sale of assets | 2,222 | 1,133 | |
Purchases of property, plant and equipment | (1,207) | (2,540) | |
Net cash used in investing activities | (3,825) | (16,840) | |
Cash flows from financing activities: | |||
Proceeds from the issuance of debt | 2,000 | 11,000 | |
Payments on debt | (19,125) | (9,750) | |
Contingent consideration | (677) | (905) | |
Dividends | (1,843) | (1,807) | |
Proceeds from the exercise of stock options | 3,588 | 2,346 | |
Net cash (used in) provided by financing activities | (16,057) | 884 | |
Effect of exchange rate changes on cash and cash equivalents | (150) | (99) | |
Net increase in cash and cash equivalents | 260 | 23 | |
Cash and cash equivalents at the beginning of the period | 5,469 | 5,820 | |
Cash and cash equivalents at the end of the period | 5,729 | 5,843 | |
Cash paid for: | |||
Income taxes paid | 5,634 | 4,191 | |
Interest paid | $ 1,293 | $ 1,477 | |
[1] | -Contingent consideration is classified as a financing activity pursuant to ASU 2016-15. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | [1] | Total | |
Balance (in shares) at Mar. 31, 2017 | 3,734,704 | |||||
Balance at Mar. 31, 2017 | $ 25,925 | $ 73,656 | $ (1,760) | $ 97,821 | ||
Common stock issued for conversion of stock options net (in shares) | 23,471 | |||||
Common stock issued for conversion of stock options net | $ 963 | 963 | ||||
Dividends paid, $0.16 per share | (601) | (601) | ||||
Stock-based compensation | 540 | 540 | ||||
Foreign currency translation adjustments | 751 | 751 | ||||
Net income | 1,517 | 1,517 | ||||
Balance (in shares) at Jun. 30, 2017 | 3,758,175 | |||||
Balance at Jun. 30, 2017 | $ 27,428 | 74,572 | (1,009) | 100,991 | ||
Balance (in shares) at Mar. 31, 2017 | 3,734,704 | |||||
Balance at Mar. 31, 2017 | $ 25,925 | 73,656 | (1,760) | 97,821 | ||
Foreign currency translation adjustments | 1,880 | |||||
Net income | [2] | (7,216) | ||||
Balance (in shares) at Dec. 31, 2017 | 3,781,806 | |||||
Balance at Dec. 31, 2017 | $ 29,694 | 64,633 | 120 | 94,447 | ||
Balance (in shares) at Jun. 30, 2017 | 3,758,175 | |||||
Balance at Jun. 30, 2017 | $ 27,428 | 74,572 | (1,009) | 100,991 | ||
Common stock issued for conversion of stock options net (in shares) | 21,542 | |||||
Common stock issued for conversion of stock options net | $ 1,101 | 1,101 | ||||
Dividends paid, $0.16 per share | (600) | (600) | ||||
Stock-based compensation | 445 | 445 | ||||
Foreign currency translation adjustments | 948 | 948 | ||||
Net income | 2,353 | 2,353 | ||||
Balance (in shares) at Sep. 30, 2017 | 3,779,717 | |||||
Balance at Sep. 30, 2017 | $ 28,974 | 76,325 | (61) | 105,238 | ||
Common stock issued for conversion of stock options net (in shares) | 2,089 | |||||
Common stock issued for conversion of stock options net | $ 282 | 282 | ||||
Dividends paid, $0.16 per share | (606) | (606) | ||||
Stock-based compensation | 438 | 438 | ||||
Foreign currency translation adjustments | 181 | 181 | ||||
Net income | (11,086) | (11,086) | ||||
Balance (in shares) at Dec. 31, 2017 | 3,781,806 | |||||
Balance at Dec. 31, 2017 | $ 29,694 | 64,633 | 120 | $ 94,447 | ||
Balance (in shares) at Mar. 31, 2018 | 3,801,439 | 3,801,439 | ||||
Balance at Mar. 31, 2018 | $ 30,516 | 68,281 | 564 | $ 99,361 | ||
Common stock issued for conversion of stock options net (in shares) | 46,586 | |||||
Common stock issued for conversion of stock options net | $ 3,043 | 3,043 | ||||
Dividends paid, $0.16 per share | (610) | (610) | ||||
Stock-based compensation | 739 | 739 | ||||
Foreign currency translation adjustments | (1,312) | (1,312) | ||||
Net income | 4,230 | 4,230 | ||||
Balance (in shares) at Jun. 30, 2018 | 3,848,025 | |||||
Balance at Jun. 30, 2018 | $ 34,298 | 71,901 | (748) | $ 105,451 | ||
Balance (in shares) at Mar. 31, 2018 | 3,801,439 | 3,801,439 | ||||
Balance at Mar. 31, 2018 | $ 30,516 | 68,281 | 564 | $ 99,361 | ||
Common stock issued for conversion of stock options net (in shares) | 58,000 | |||||
Foreign currency translation adjustments | $ (2,019) | |||||
Net income | $ 6,082 | |||||
Balance (in shares) at Dec. 31, 2018 | 3,859,327 | 3,859,327 | ||||
Balance at Dec. 31, 2018 | $ 36,528 | 72,520 | (1,455) | $ 107,593 | ||
Balance (in shares) at Jun. 30, 2018 | 3,848,025 | |||||
Balance at Jun. 30, 2018 | $ 34,298 | 71,901 | (748) | 105,451 | ||
Common stock issued for conversion of stock options net (in shares) | 4,722 | |||||
Common stock issued for conversion of stock options net | $ 133 | 133 | ||||
Dividends paid, $0.16 per share | (616) | (616) | ||||
Stock-based compensation | 990 | 990 | ||||
Foreign currency translation adjustments | (49) | (49) | ||||
Net income | 994 | 994 | ||||
Balance (in shares) at Sep. 30, 2018 | 3,852,747 | |||||
Balance at Sep. 30, 2018 | $ 35,421 | 72,279 | (797) | 106,903 | ||
Common stock issued for conversion of stock options net (in shares) | 6,580 | |||||
Common stock issued for conversion of stock options net | $ 412 | 412 | ||||
Dividends paid, $0.16 per share | (617) | (617) | ||||
Stock-based compensation | 695 | 695 | ||||
Foreign currency translation adjustments | (658) | (658) | ||||
Net income | 858 | $ 858 | ||||
Balance (in shares) at Dec. 31, 2018 | 3,859,327 | 3,859,327 | ||||
Balance at Dec. 31, 2018 | $ 36,528 | $ 72,520 | $ (1,455) | $ 107,593 | ||
[1] | Accumulated Other Comprehensive Income (Loss). | |||||
[2] | -Contingent consideration is classified as a financing activity pursuant to ASU 2016-15. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares shares in Thousands | 3 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | |
Common Stock [Member] | ||||||
Common stock, shares returned as payment (in shares) | 485 | 477 | 1,620 | 304 | 1,541 | 3,795 |
Retained Earnings [Member] | ||||||
Dividends paid, per share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 |
Note 1 - Description of Busines
Note 1 - Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1 . Description of Business and Summary of Significant Accounting Policies Description of Business In this quarterly report on Form 10 We pursue a strategy of focusing primarily on quality control products and services which are sold into niche markets that are driven by regulatory requirements. We prefer markets in which we can establish a strong presence and achieve high gross margins. We are organized into four nine Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, such unaudited information includes all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations. The results of operations for the interim periods are not may not 10 March 31, 2018. Fair Value Measurements As of December 31, 2018 March 31, 2018, 1 Acquisitions During the three December 31, 2018, Recently Issued Accounting Pronouncements In February 2016, 2016 02, Leases (Topic 842 12 not not Recently Adopted Accounting Pronouncements In August 2018, No. 33 10532 3 04 X December 31, 2018 10 During the nine December 31, 2018, 2018 15 Intangibles – Goodwill and Other Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract 2018 15” 2018 15 $206 nine December 31, 2018 Effective April 1, 2018, 2014 09 Revenue from Contracts with Customers (Topic 606 606” 606 not 2. In March 2018, 2018 05, No. 118. three December 31, 2018, 8. The TCJA created a new requirement that global intangible low taxed income earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFC’s U.S. shareholder. Under U.S. GAAP, we are allowed to make an accounting policy choice of how GILTI taxes are treated. We have elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as current period expenses when incurred (“the period cost method”). |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 2. We design, manufacture, market, sell, and maintain quality control instruments and software, consumables, and services driven primarily by the regulatory requirements of niche markets. Our consumables, such as biological indicator test strips and packaging materials, are typically used on a standalone basis; however, some, such as calibration solutions, are also critical to the ongoing use of our instruments. Hardware and software sales, such as medical meters, wireless sensor systems, and data loggers are generally driven by our acquisition of new customers, growth of existing customers, or customer replacement of existing equipment. Hardware sales may three 1 2 3 Substantially all of our revenues and related receivables are generated from contracts with customers that are 12 no 60 Our performance obligations related to the sale of instruments and consumables generally consist of the promise to sell tangible goods to distributors or end users. Ownership of these goods is typically transferred at time of shipment, at which point we have satisfied our performance obligation and we recognize revenue. Our performance obligations related to services may may no may may not The following tables present disaggregated revenues for the three nine December 31, 2018 December 31, 2017, Three Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 9,853 $ 834 $ 151 $ 1,868 $ 12,706 Hardware and Software 110 6,417 1,980 49 8,556 Services 372 2,090 534 135 3,131 Contracted Revenues Services 1,210 -- 1,079 -- 2,289 Total Revenues $ 11,545 $ 9,341 $ 3,744 $ 2,052 $ 26,682 Three Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 8,872 $ 754 $ 36 $ 1,345 $ 11,007 Hardware and Software 280 5,724 1,332 3 7,339 Services 244 1,704 489 244 2,681 Contracted Revenues Services 1,234 -- 1,410 -- 2,644 Total Revenues $ 10,630 $ 8,182 $ 3,267 $ 1,592 $ 23,671 Nine Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 29,478 $ 2,272 $ 351 $ 5,139 $ 37,240 Hardware and Software 487 18,039 4,951 105 23,582 Services 884 6,465 1,507 277 9,133 Contracted Revenues Services 3,626 -- 3,108 -- 6,734 Total Revenues $ 34,475 $ 26,776 $ 9,917 $ 5,521 $ 76,689 Nine Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 25,810 $ 2,314 $ 107 $ 3,861 $ 32,092 Hardware and Software 647 16,811 3,800 72 21,330 Services 772 5,643 1,283 464 8,162 Contracted Revenues Services 3,569 -- 4,145 -- 7,714 Total Revenues $ 30,798 $ 24,768 $ 9,335 $ 4,397 $ 69,298 Contract Balances Our contracts have varying payment terms and conditions. Some customers prepay for services, resulting in unearned revenues or customer deposits, called contract liabilities, which are included within other accrued expenses and unearned revenues in the accompanying condensed consolidated balance sheets. Contract assets would exist when sales are recorded (i.e. the control of the goods or services has been transferred to the customer), but customer payment is contingent on a future event besides the passage of time (such as satisfaction of additional performance obligations). We do not not A summary of contract liabilities is as follows: Contract liabilities balance as of March 31, 2018 $ 4,147 Prior year liabilities recognized in revenues during the nine months ended December 31, 2018 (3,504 ) Contract liabilities added during the nine months ended December 31, 2018, net of revenues recognized 3,631 Contract liabilities balance as of December 31, 2018 $ 4,274 |
Note 3 - Impairment Loss on Goo
Note 3 - Impairment Loss on Goodwill and Long-lived Assets | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 3. Loss on Goodwill and Long-Lived Assets During the nine December 31, 2018, nine $1,028 $2,641 $300 $809, December 31, 2018. 3 |
Note 4 - Inventories
Note 4 - Inventories | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4 . Inventories Inventories consist of the following: December 31, 2018 March 31, 2018 Raw materials $ 7,485 $ 9,059 Work-in-process 379 380 Finished goods 3,154 3,152 Less: reserve (3,412 ) (3,363 ) Inventories, net $ 7,606 $ 9,228 |
Note 5 - Facility Relocation
Note 5 - Facility Relocation | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | Note 5 . Facility Relocation In August 2016, two March 2017 June 30, 2018. $1,584 Facility relocation amounts accrued and paid for the nine December 30, 2018 Balance at March 31, 2018 408 Facility Relocation Expense 17 Cash payments (425 ) Balance at December 31, 2018 - We completed the sale of our old Bozeman facility during the nine December 31, 2018, $2,222 $288, |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 6 . Long-T erm Debt Long-term debt consists of the following: December 31, 2018 March 31, 2018 Line of credit (3.813%, as of December 31, 2018) $ 12,000 $ 28,000 Term loan (3.875% as of December 31, 2018) 17,500 18,625 Less: discount (287 ) (365 ) Less: current portion (2,000 ) (1,625 ) Long-term portion $ 27,213 $ 44,635 On March 1, 2017, five $80,000 $20,000 $2,500 four $100,000. Line of Credit and Term Loan indebtedness bears interest at either: ( 1 1.50% 2.50%; 2 0.5%. 0.15% 0.35%. The Credit Facility is secured by all of our assets and requires us to maintain a ratio of funded debt to our trailing four 3.0 1.0, may $20,000, 3.50 1.00 four 3.25 1.00 four 1.25 1.0. December 31, 2018. As of December 31, 2018, For the year ending March 31, 2019 $ 500 2020 2,125 2021 2,625 2022 24,250 Total $ 29,500 Subsequent to December 2018, $3,000 |
Note 7 - Stock-based Compensati
Note 7 - Stock-based Compensation | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 7 . Stock-B ased Compensation During the nine December 31, 2018, 17,458 $154.91 five nine December 31, 2018, 2,000 1,445 During the nine December 31, 2018, 11,385 $192.99 three April 1, 2018 March 31, 2021, June 15, 2021. 0 400 not no nine December 31, 2018, 1,050 During the nine December 31, 2018, 25,544 $53.93 $144.65 five Amounts recognized in the condensed consolidated financial statements related to stock-based compensation are as follows: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Stock-based compensation expense $ 695 $ 438 $ 2,424 $ 1,423 Amount of income tax (benefit) expense recognized in earnings (160 ) 99 (1,018 ) (893 ) Stock-based compensation, net of tax $ 535 $ 537 $ 1,406 $ 530 Benefit to earnings per share Basic $ 0.14 $ 0.14 $ 0.37 $ 0.14 Diluted 0.13 0.14 0.35 0.14 Stock-based compensation expense is included in cost of revenues, selling, general and administrative, and research and development expense in the accompanying condensed consolidated statements of operations. The following is a summary of stock option and non-vested stock award activity for the nine December 31, 2018 ( Stock Options Non-Vested Stock Awards Number of Shares Weighted- Average Exercise Price per Share Number of Shares Weighted- Average Grant Date Fair Value Outstanding at March 31, 2018 458 $ 86.38 9 $ 125.68 Awards granted 26 144.65 29 169.94 Awards forfeited or expired (36 ) 98.91 (3 ) 171.51 Awards exercised or vested (58 ) 69.75 (2 ) 163.47 Outstanding as of December 31, 2018 390 $ 91.58 33 $ 128.04 Exercisable at December 31, 2018 151 We issue shares in connection with stock-based compensation pursuant to the Mesa Laboratories, Inc. 2014 “2014 2014 five one 2014 1,100,000 611,504 December 31, 2018. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 8 . Income Taxes For interim income tax reporting, we estimate our annual effective tax rate and apply this effective tax rate to our year-to-date pre-tax income. Each quarter, our estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. Additionally, the tax effects of significant unusual or infrequently occurring items are recognized as discrete items in the interim period in which the events occur. The impact of changes in tax laws or rates on deferred tax amounts, impairments of non-deductible goodwill, excess benefits from stock-based compensation, and changes in tax reserves resulting from the finalization of tax audits or reviews are examples of significant unusual or infrequently occurring items that are recognized as discrete items in the interim period in which the event occurs. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, settlement with taxing authorities, and foreign currency fluctuations. On December 22, 2017, 34 21 one 199 162 We have completed our analysis of the TCJA’s income tax effects. In total, the TCJA resulted in a net tax expense of $43. one $322. nine December 31, 2018, $279. Our effective income tax rate was 9.5 5.3 three December 31, 2018 December 31, 2017, 8.6 18.0 nine December 31, 2018 December 31, 2017, three nine December 31, 2018 21 Since we are subject to audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 not 12 |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 9 . Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share (“diluted EPS”) is computed similarly to basic earnings per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Potentially dilutive securities include common shares related to stock options and non-vested stock awards (collectively “stock awards”). Stock awards are excluded from the calculation of diluted EPS in the event that they are subject to performance conditions or are antidilutive. The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per share (shares in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Net income (loss) available for shareholders $ 858 $ (11,086 ) $ 6,082 $ (7,216 ) Weighted average outstanding shares of common stock 3,855 3,781 3,840 3,765 Dilutive effect of stock options 180 -- 182 -- Dilutive effect of non-vested shares 10 -- 15 -- Fully diluted shares 4,045 3,781 4,037 3,765 Basic $ 0.22 $ (2.93 ) $ 1.58 $ (1.92 ) Diluted $ 0.21 $ (2.93 ) $ 1.51 $ (1.92 ) The following stock awards were excluded from the calculation of diluted EPS: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Stock awards that were anti-dilutive 1 501 23 501 Stock awards subject to performance conditions 10 - 9 - Total stock awards excluded from diluted EPS 11 501 32 501 |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 10 . Commitments and Contingencies In February 2018, June 2018, nine December 31, 2018, $3,300 January 2019, $3,300 . December 31, 2018 |
Note 11 - Segment Information
Note 11 - Segment Information | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 1 1 . S egment Information We have four Three Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 11,545 $ 9,341 $ 3,744 $ 2,052 $ 26,682 Gross profit $ 7,876 $ 5,922 $ 1,575 $ 261 $ 15,634 Reconciling items ( 2 ) (14,686 ) Earnings before income taxes $ 948 Three Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 10,630 $ 8,182 $ 3,267 $ 1,592 $ 23,671 Gross profit $ 7,134 $ 5,150 $ (43 ) $ 440 $ 12,681 Reconciling items ( 2 ) (23,207 ) Earnings before income taxes $ (10,526 ) Nine Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 34,475 $ 26,776 $ 9,917 $ 5,521 $ 76,689 Gross profit $ 23,660 $ 16,909 $ 4,203 $ 530 $ 45,302 Reconciling items ( 2 ) (38,648 ) Earnings before income taxes $ 6,654 Nine Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 30,798 $ 24,768 $ 9,335 $ 4,397 $ 69,298 Gross profit $ 20,676 $ 15,021 $ 2,044 $ 844 $ 38,585 Reconciling items ( 2 ) (44,702 ) Earnings before income taxes $ (6,117 ) ( 1 Intersegment revenues are not ( 2 Reconciling items include selling, general and administrative, research and development, impairment loss on goodwill and long-lived assets, estimated legal settlement, and other expenses December 31, 2018 March 31, 2018 Total assets Sterilization and Disinfection Control $ 76,983 $ 83,452 Instruments 29,332 33,479 Cold Chain Monitoring 34,749 30,796 Cold Chain Packaging 2,722 7,091 Corporate and administrative 14,374 9,283 Total $ 158,160 $ 164,101 As of December 31, 2018, $5,952, $2,471 $15,130 Revenues from external customers are attributed to individual countries based upon locations to which the product is shipped or exported, as follows: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 United States $ 17,003 $ 14,221 $ 49,167 $ 41,664 Foreign 9,679 9,450 27,522 27,634 Total $ 26,682 $ 23,671 $ 76,689 $ 69,298 No 10 |
Note 12 - Subsequent Event
Note 12 - Subsequent Event | 9 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 1 2 . Subsequent Event In January 2018, $0.16 March 15, 2019 February 28, 2019 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, such unaudited information includes all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations. The results of operations for the interim periods are not may not 10 March 31, 2018. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements As of December 31, 2018 March 31, 2018, 1 |
Business Combinations Policy [Policy Text Block] | Acquisitions During the three December 31, 2018, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In February 2016, 2016 02, Leases (Topic 842 12 not not Recently Adopted Accounting Pronouncements In August 2018, No. 33 10532 3 04 X December 31, 2018 10 During the nine December 31, 2018, 2018 15 Intangibles – Goodwill and Other Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract 2018 15” 2018 15 $206 nine December 31, 2018 Effective April 1, 2018, 2014 09 Revenue from Contracts with Customers (Topic 606 606” 606 not 2. In March 2018, 2018 05, No. 118. three December 31, 2018, 8. The TCJA created a new requirement that global intangible low taxed income earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFC’s U.S. shareholder. Under U.S. GAAP, we are allowed to make an accounting policy choice of how GILTI taxes are treated. We have elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as current period expenses when incurred (“the period cost method”). |
Note 2 - Revenue Recognition (T
Note 2 - Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 9,853 $ 834 $ 151 $ 1,868 $ 12,706 Hardware and Software 110 6,417 1,980 49 8,556 Services 372 2,090 534 135 3,131 Contracted Revenues Services 1,210 -- 1,079 -- 2,289 Total Revenues $ 11,545 $ 9,341 $ 3,744 $ 2,052 $ 26,682 Three Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 8,872 $ 754 $ 36 $ 1,345 $ 11,007 Hardware and Software 280 5,724 1,332 3 7,339 Services 244 1,704 489 244 2,681 Contracted Revenues Services 1,234 -- 1,410 -- 2,644 Total Revenues $ 10,630 $ 8,182 $ 3,267 $ 1,592 $ 23,671 Nine Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 29,478 $ 2,272 $ 351 $ 5,139 $ 37,240 Hardware and Software 487 18,039 4,951 105 23,582 Services 884 6,465 1,507 277 9,133 Contracted Revenues Services 3,626 -- 3,108 -- 6,734 Total Revenues $ 34,475 $ 26,776 $ 9,917 $ 5,521 $ 76,689 Nine Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Discrete Revenues Consumables $ 25,810 $ 2,314 $ 107 $ 3,861 $ 32,092 Hardware and Software 647 16,811 3,800 72 21,330 Services 772 5,643 1,283 464 8,162 Contracted Revenues Services 3,569 -- 4,145 -- 7,714 Total Revenues $ 30,798 $ 24,768 $ 9,335 $ 4,397 $ 69,298 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract liabilities balance as of March 31, 2018 $ 4,147 Prior year liabilities recognized in revenues during the nine months ended December 31, 2018 (3,504 ) Contract liabilities added during the nine months ended December 31, 2018, net of revenues recognized 3,631 Contract liabilities balance as of December 31, 2018 $ 4,274 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2018 March 31, 2018 Raw materials $ 7,485 $ 9,059 Work-in-process 379 380 Finished goods 3,154 3,152 Less: reserve (3,412 ) (3,363 ) Inventories, net $ 7,606 $ 9,228 |
Note 5 - Facility Relocation (T
Note 5 - Facility Relocation (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Balance at March 31, 2018 408 Facility Relocation Expense 17 Cash payments (425 ) Balance at December 31, 2018 - |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 31, 2018 March 31, 2018 Line of credit (3.813%, as of December 31, 2018) $ 12,000 $ 28,000 Term loan (3.875% as of December 31, 2018) 17,500 18,625 Less: discount (287 ) (365 ) Less: current portion (2,000 ) (1,625 ) Long-term portion $ 27,213 $ 44,635 |
Schedule of Maturities of Long-term Debt [Table Text Block] | For the year ending March 31, 2019 $ 500 2020 2,125 2021 2,625 2022 24,250 Total $ 29,500 |
Note 7 - Stock-based Compensa_2
Note 7 - Stock-based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Stock-based compensation expense $ 695 $ 438 $ 2,424 $ 1,423 Amount of income tax (benefit) expense recognized in earnings (160 ) 99 (1,018 ) (893 ) Stock-based compensation, net of tax $ 535 $ 537 $ 1,406 $ 530 Benefit to earnings per share Basic $ 0.14 $ 0.14 $ 0.37 $ 0.14 Diluted 0.13 0.14 0.35 0.14 |
Share-based Compensation, Activity [Table Text Block] | Stock Options Non-Vested Stock Awards Number of Shares Weighted- Average Exercise Price per Share Number of Shares Weighted- Average Grant Date Fair Value Outstanding at March 31, 2018 458 $ 86.38 9 $ 125.68 Awards granted 26 144.65 29 169.94 Awards forfeited or expired (36 ) 98.91 (3 ) 171.51 Awards exercised or vested (58 ) 69.75 (2 ) 163.47 Outstanding as of December 31, 2018 390 $ 91.58 33 $ 128.04 Exercisable at December 31, 2018 151 |
Note 9 - Earnings Per Share (Ta
Note 9 - Earnings Per Share (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Net income (loss) available for shareholders $ 858 $ (11,086 ) $ 6,082 $ (7,216 ) Weighted average outstanding shares of common stock 3,855 3,781 3,840 3,765 Dilutive effect of stock options 180 -- 182 -- Dilutive effect of non-vested shares 10 -- 15 -- Fully diluted shares 4,045 3,781 4,037 3,765 Basic $ 0.22 $ (2.93 ) $ 1.58 $ (1.92 ) Diluted $ 0.21 $ (2.93 ) $ 1.51 $ (1.92 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Stock awards that were anti-dilutive 1 501 23 501 Stock awards subject to performance conditions 10 - 9 - Total stock awards excluded from diluted EPS 11 501 32 501 |
Note 11 - Segment Information (
Note 11 - Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 11,545 $ 9,341 $ 3,744 $ 2,052 $ 26,682 Gross profit $ 7,876 $ 5,922 $ 1,575 $ 261 $ 15,634 Reconciling items ( 2 ) (14,686 ) Earnings before income taxes $ 948 Three Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 10,630 $ 8,182 $ 3,267 $ 1,592 $ 23,671 Gross profit $ 7,134 $ 5,150 $ (43 ) $ 440 $ 12,681 Reconciling items ( 2 ) (23,207 ) Earnings before income taxes $ (10,526 ) Nine Months Ended December 31, 2018 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 34,475 $ 26,776 $ 9,917 $ 5,521 $ 76,689 Gross profit $ 23,660 $ 16,909 $ 4,203 $ 530 $ 45,302 Reconciling items ( 2 ) (38,648 ) Earnings before income taxes $ 6,654 Nine Months Ended December 31, 2017 Sterilization and Disinfection Control Instruments Cold Chain Monitoring Cold Chain Packaging Total Revenues (1) $ 30,798 $ 24,768 $ 9,335 $ 4,397 $ 69,298 Gross profit $ 20,676 $ 15,021 $ 2,044 $ 844 $ 38,585 Reconciling items ( 2 ) (44,702 ) Earnings before income taxes $ (6,117 ) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | December 31, 2018 March 31, 2018 Total assets Sterilization and Disinfection Control $ 76,983 $ 83,452 Instruments 29,332 33,479 Cold Chain Monitoring 34,749 30,796 Cold Chain Packaging 2,722 7,091 Corporate and administrative 14,374 9,283 Total $ 158,160 $ 164,101 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 United States $ 17,003 $ 14,221 $ 49,167 $ 41,664 Foreign 9,679 9,450 27,522 27,634 Total $ 26,682 $ 23,671 $ 76,689 $ 69,298 |
Note 1 - Description of Busin_2
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Number of Operating Segments | 4 |
Enterprise Resource Planning System Implementation Costs [Member] | |
Capitalized Contract Cost, Gross | $ 206 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) $ in Thousands | Dec. 31, 2018USD ($) |
Contract with Customer, Asset, Net, Total | $ 0 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | [1] | $ 26,682 | $ 23,671 | $ 76,689 | $ 69,298 |
Consumables [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 12,706 | 11,007 | 37,240 | 32,092 | |
Hardware and Software [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 8,556 | 7,339 | 23,582 | 21,330 | |
Service [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 3,131 | 2,681 | 9,133 | 8,162 | |
Service [Member] | Transferred over Time [Member] | |||||
Revenues | 2,289 | 2,644 | 6,734 | 7,714 | |
Sterilzation and Disinfection Control [Member] | |||||
Revenues | [1] | 11,545 | 10,630 | 34,475 | 30,798 |
Sterilzation and Disinfection Control [Member] | Consumables [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 9,853 | 8,872 | 29,478 | 25,810 | |
Sterilzation and Disinfection Control [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 110 | 280 | 487 | 647 | |
Sterilzation and Disinfection Control [Member] | Service [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 372 | 244 | 884 | 772 | |
Sterilzation and Disinfection Control [Member] | Service [Member] | Transferred over Time [Member] | |||||
Revenues | 1,210 | 1,234 | 3,626 | 3,569 | |
Instruments [Member] | |||||
Revenues | [1] | 9,341 | 8,182 | 26,776 | 24,768 |
Instruments [Member] | Consumables [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 834 | 754 | 2,272 | 2,314 | |
Instruments [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 6,417 | 5,724 | 18,039 | 16,811 | |
Instruments [Member] | Service [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 2,090 | 1,704 | 6,465 | 5,643 | |
Instruments [Member] | Service [Member] | Transferred over Time [Member] | |||||
Revenues | |||||
Cold Chain Monitoring [Member] | |||||
Revenues | [1] | 3,744 | 3,267 | 9,917 | 9,335 |
Cold Chain Monitoring [Member] | Consumables [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 151 | 36 | 351 | 107 | |
Cold Chain Monitoring [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 1,980 | 1,332 | 4,951 | 3,800 | |
Cold Chain Monitoring [Member] | Service [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 534 | 489 | 1,507 | 1,283 | |
Cold Chain Monitoring [Member] | Service [Member] | Transferred over Time [Member] | |||||
Revenues | 1,079 | 1,410 | 3,108 | 4,145 | |
Cold Chain Packaging [Member] | |||||
Revenues | [1] | 2,052 | 1,592 | 5,521 | 4,397 |
Cold Chain Packaging [Member] | Consumables [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 1,868 | 1,345 | 5,139 | 3,861 | |
Cold Chain Packaging [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 49 | 3 | 105 | 72 | |
Cold Chain Packaging [Member] | Service [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 135 | 244 | 277 | 464 | |
Cold Chain Packaging [Member] | Service [Member] | Transferred over Time [Member] | |||||
Revenues | |||||
[1] | Intersegment revenues are not significant and are eliminated to arrive at consolidated totals. |
Note 2 - Revenue Recognition _2
Note 2 - Revenue Recognition - Contract Liabilities (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Contract liabilities balance as of March 31, 2018 | $ 4,147 |
Prior year liabilities recognized in revenues during the nine months ended December 31, 2018 | (3,504) |
Contract liabilities added during the nine months ended December 31, 2018, net of revenues recognized | 3,631 |
Contract liabilities balance as of December 31, 2018 | $ 4,274 |
Note 3 - Impairment Loss on G_2
Note 3 - Impairment Loss on Goodwill and Long-lived Assets (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2018 | |
Goodwill, Ending Balance | $ 64,148 | $ 65,543 |
Intangible Assets, Net (Excluding Goodwill), Total | 38,336 | $ 42,850 |
Cold Chain Packaging [Member] | ||
Goodwill, Ending Balance | 300 | |
Intangible Assets, Net (Excluding Goodwill), Total | 809 | |
Impairment of Long-Lived Assets and Goodwill [Member] | ||
Goodwill, Impairment Loss | 1,028 | |
Impairment of Long-Lived Assets Held-for-use | $ 2,641 |
Note 4 - Inventories - Summary
Note 4 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Raw materials | $ 7,485 | $ 9,059 |
Work-in-process | 379 | 380 |
Finished goods | 3,154 | 3,152 |
Less: reserve | (3,412) | (3,363) |
Inventories, net | $ 7,606 | $ 9,228 |
Note 5 - Facility Relocation (D
Note 5 - Facility Relocation (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Aug. 31, 2016 | |
Bozeman [Member] | ||
Proceeds from Sale of Productive Assets, Total | $ 2,222 | |
Bozeman [Member] | Other Nonoperating Income (Expense) [Member] | ||
Gain (Loss) on Disposition of Assets for Financial Service Operations, Total | $ 288 | |
Relocation of Omaha and Traverse City Biological Indicator Manufacturing Facilities [Member] | ||
Restructuring and Related Cost, Expected Cost, Total | $ 1,584 |
Note 5 - Facility Relocation -
Note 5 - Facility Relocation - Facility Relocation Costs (Details) - Relocation of Omaha and Traverse City Biological Indicator Manufacturing Facilities [Member] $ in Thousands | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Balance at March 31, 2018 | $ 408 |
Facility Relocation Expense | 17 |
Cash payments | (425) |
Balance at December 31, 2018 |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details Textual) $ in Millions | Mar. 01, 2017USD ($) | Feb. 03, 2019USD ($) |
Credit Facility [Member] | ||
Debt Instrument Convenant, Maximum Leverage Ration, During the Initial Holiday Period | 3.5 | |
Debt Instrument Covenant, Maximum Leverage Ratio, Immediately Following the Initial Holiday Period | 3.25 | |
Debt Instrument Covenant, Fixed Charge Coverage Ratio | 1.25 | |
Credit Facility [Member] | Subsequent Event [Member] | ||
Repayments of Long-term Lines of Credit | $ 3 | |
Credit Facility [Member] | After March 31, 2016 [Member] | ||
Debt Instrument Covenant, Ratio of Funded Debt to Consolidated EBITDA | 3 | |
Credit Facility [Member] | Term Loan [Member] | ||
Long-term Debt, Gross | $ 20 | |
Line of Credit [Member] | ||
Long-term Debt, Gross | $ 20 | |
Line of Credit [Member] | Debt Instrument, Variable Rate Base CBFR Using One Month LIBOR [Member] | ||
Debt Instrument, Basis Spread on Variable Rate Used to Calculate Commercial Bank Floating Rate | 0.50% | |
Line of Credit [Member] | Minimum [Member] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |
Line of Credit [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Line of Credit [Member] | Maximum [Member] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | |
Line of Credit [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Line of Credit [Member] | Credit Facility [Member] | ||
Debt Instrument, Term | 5 years | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 80 | |
Line of Credit Facility, Additional Maximum Borrowing Capacity | 100 | |
Letter of Credit [Member] | Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2.5 |
Note 6 - Long-term Debt - Compo
Note 6 - Long-term Debt - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Long-term debt | $ 29,500 | |
Less: discount | (287) | $ (365) |
Less: current portion | (2,000) | (1,625) |
Long-term portion | 27,213 | 44,635 |
Line of Credit [Member] | ||
Long-term debt | 12,000 | 28,000 |
Term Loan [Member] | ||
Long-term debt | $ 17,500 | $ 18,625 |
Note 6 - Long-term Debt - Com_2
Note 6 - Long-term Debt - Components of Long-term Debt (Details) (Parentheticals) | Dec. 31, 2018 |
Line of Credit [Member] | |
Line of credit, interest rate at end of period | 3.813% |
Term Loan [Member] | |
Term loan, interest rate at end of period | 3.875% |
Note 6 - Long-term Debt - Futur
Note 6 - Long-term Debt - Future Contractual Maturities of Debt (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2,019 | $ 500 |
2,020 | 2,125 |
2,021 | 2,625 |
2,022 | 24,250 |
Total | $ 29,500 |
Note 7 - Stock-based Compensa_3
Note 7 - Stock-based Compensation (Details Textual) | 9 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 29,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 169.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 2,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 3,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 25,544 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 53.93 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 144.65 |
Equity Plan 2014 [Member] | |
Common Stock, Capital Shares Reserved for Future Issuance | 1,100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 611,504 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 17,458 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 154.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 2,000 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,385 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 192.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,050 |
Performance Shares [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,445 |
Share-based Compensation Arrangement by Share-based Payment Award Number of Shares Issued Upon Vesting, Percentage | 400.00% |
Performance Shares [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award Number of Shares Issued Upon Vesting, Percentage | 0.00% |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Note 7 - Stock-based Compensa_4
Note 7 - Stock-based Compensation - Allocation of Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based compensation expense | $ 695 | $ 438 | $ 2,424 | $ 1,423 |
Amount of income tax (benefit) expense recognized in earnings | (160) | 99 | (1,018) | (893) |
Stock-based compensation, net of tax | $ 535 | $ 537 | $ 1,406 | $ 530 |
Basic (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.37 | $ 0.14 |
Diluted (in dollars per share) | $ 0.13 | $ 0.14 | $ 0.35 | $ 0.14 |
Note 7 - Stock-based Compensa_5
Note 7 - Stock-based Compensation - Stock Option and Non-vested Stock Award Activity (Details) - $ / shares | 9 Months Ended |
Dec. 31, 2018 | |
Options outstanding (in shares) | 458,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 86.38 |
Non-vested stock awards outstanding (in shares) | 9,000 |
Non-vested stock awards outstanding, weighted average grant date fair value (in dollars per share) | $ 125.68 |
Options granted (in shares) | 25,544 |
Options granted, weighted average exercise price (in dollars per share) | $ 144.65 |
Non-vested stock awards granted (in shares) | 29,000 |
Non-vested stock awards granted, weighted average grant date fair value (in dollars per share) | $ 169.94 |
Options forfeited or expired (in shares) | (36,000) |
Options forfeited or expired, weighted average exercise price (in dollars per share) | $ 98.91 |
Non-vested stock awards forfeited (in shares) | (3,000) |
Non-vested stock awards forfeited, weighted average grant date fair value (in dollars per share) | $ 171.51 |
Options exercised (in shares) | (58,000) |
Options exercised, weighted average exercise price (in dollars per share) | $ 69.75 |
Non-vested stock awards vested (in shares) | (2,000) |
Non-vested stock awards vested, weighted average grant date fair value (in dollars per share) | $ 163.47 |
Options outstanding (in shares) | 390,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 91.58 |
Non-vested stock awards outstanding (in shares) | 33,000 |
Non-vested stock awards outstanding, weighted average grant date fair value (in dollars per share) | $ 128.04 |
Options exercisable (in shares) | 151,000 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |||||
Tax Adjustments, Settlements, and Unusual Provisions | $ (43) | |||||
Taxes Payable, Total | $ 322 | 322 | ||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (279) | |||||
Effective Income Tax Rate Reconciliation, Percent, Total | 9.50% | (5.30%) | 8.60% | (18.00%) | ||
Scenario, Forecast [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 9 - Earnings Per Share - C
Note 9 - Earnings Per Share - Computation of Net Income Per Share, Basic & Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net income (loss) available for shareholders | $ 858 | $ 994 | $ 4,230 | $ (11,086) | $ 2,353 | $ 1,517 | $ 6,082 | $ (7,216) | [1] |
Basic (in shares) | 3,855 | 3,781 | 3,840 | 3,765 | |||||
Dilutive effect of stock options (in shares) | 180 | 182 | |||||||
Dilutive effect of non-vested shares (in shares) | 10 | 15 | |||||||
Fully diluted shares (in shares) | 4,045 | 3,781 | 4,037 | 3,765 | |||||
Basic (in dollars per share) | $ 0.22 | $ (2.93) | $ 1.58 | $ (1.92) | |||||
Diluted (in dollars per share) | $ 0.21 | $ (2.93) | $ 1.51 | $ (1.92) | |||||
[1] | -Contingent consideration is classified as a financing activity pursuant to ASU 2016-15. |
Note 9 - Earnings Per Share - A
Note 9 - Earnings Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 6 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock awards excluded from diluted EPS (in shares) | 11 | 501 | 32 | 501 |
Stock Awards that were Antidilutive [Member] | ||||
Stock awards excluded from diluted EPS (in shares) | 1 | 501 | 23 | 501 |
Stock Awards Subject to Performance Conditions [Member] | ||||
Stock awards excluded from diluted EPS (in shares) | 10 | 9 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Litigation Settlement, Expense | $ 3,300 | |||
Class Action In United States District Court [Member] | ||||
Litigation Settlement, Expense | $ 3,300 |
Note 11 - Segment Information_2
Note 11 - Segment Information (Details Textual) $ in Thousands | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Number of Reportable Segments | 4 |
FRANCE | |
Long-Lived Assets | $ 5,952 |
CANADA | |
Long-Lived Assets | 2,471 |
GERMANY | |
Long-Lived Assets | $ 15,130 |
Note 11 - Segment Information -
Note 11 - Segment Information - Operating Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | [1] | $ 26,682 | $ 23,671 | $ 76,689 | $ 69,298 |
Gross profit | 15,634 | 12,681 | 45,302 | 38,585 | |
Reconciling items | [2] | (14,686) | (23,207) | (38,648) | (44,702) |
Earnings before income taxes | 948 | (10,526) | 6,654 | (6,117) | |
Sterilzation and Disinfection Control [Member] | |||||
Revenues | [1] | 11,545 | 10,630 | 34,475 | 30,798 |
Gross profit | 7,876 | 7,134 | 23,660 | 20,676 | |
Reconciling items | [2] | ||||
Earnings before income taxes | |||||
Instruments [Member] | |||||
Revenues | [1] | 9,341 | 8,182 | 26,776 | 24,768 |
Gross profit | 5,922 | 5,150 | 16,909 | 15,021 | |
Reconciling items | [2] | ||||
Earnings before income taxes | |||||
Cold Chain Monitoring [Member] | |||||
Revenues | [1] | 3,744 | 3,267 | 9,917 | 9,335 |
Gross profit | 1,575 | (43) | 4,203 | 2,044 | |
Reconciling items | [2] | ||||
Earnings before income taxes | |||||
Cold Chain Packaging [Member] | |||||
Revenues | [1] | 2,052 | 1,592 | 5,521 | 4,397 |
Gross profit | 261 | 440 | 530 | 844 | |
Reconciling items | [2] | ||||
Earnings before income taxes | |||||
[1] | Intersegment revenues are not significant and are eliminated to arrive at consolidated totals. | ||||
[2] | Reconciling items include selling, general and administrative, research and development, impairment loss on goodwill and long-lived assets, estimated legal settlement, and other expenses. |
Note 11 - Segment Information_3
Note 11 - Segment Information - Operating Segment Asset Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | $ 158,160 | $ 164,101 |
Corporate, Non-Segment [Member] | ||
Assets | 14,374 | 9,283 |
Sterilzation and Disinfection Control [Member] | Operating Segments [Member] | ||
Assets | 76,983 | 83,452 |
Instruments [Member] | Operating Segments [Member] | ||
Assets | 29,332 | 33,479 |
Cold Chain Monitoring [Member] | Operating Segments [Member] | ||
Assets | 34,749 | 30,796 |
Cold Chain Packaging [Member] | Operating Segments [Member] | ||
Assets | $ 2,722 | $ 7,091 |
Note 11 - Segment Information_4
Note 11 - Segment Information - Revenues From External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | [1] | $ 26,682 | $ 23,671 | $ 76,689 | $ 69,298 |
UNITED STATES | |||||
Revenues | 17,003 | 14,221 | 49,167 | 41,664 | |
Non-US [Member] | |||||
Revenues | $ 9,679 | $ 9,450 | $ 27,522 | $ 27,634 | |
[1] | Intersegment revenues are not significant and are eliminated to arrive at consolidated totals. |
Note 12 - Subsequent Event (Det
Note 12 - Subsequent Event (Details Textual) - Subsequent Event [Member] | 1 Months Ended |
Jan. 31, 2019$ / shares | |
Common Stock, Dividends, Per Share, Declared | $ 0.16 |
Dividends Payable, Date to be Paid | Mar. 15, 2019 |
Dividends Payable, Date of Record | Feb. 28, 2019 |