Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2023 | Jan. 29, 2024 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000724004 | |
Entity Registrant Name | MESA LABORATORIES INC /CO | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-11740 | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0872291 | |
Entity Address, Address Line One | 12100 West Sixth Avenue | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80228 | |
City Area Code | 303 | |
Local Phone Number | 987-8000 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | MLAB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,394,051 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Cash and cash equivalents | $ 28,224 | $ 32,910 |
Accounts receivable, less allowance for doubtful accounts of $1,363 and $849, respectively | 36,023 | 42,551 |
Inventories | 35,973 | 34,642 |
Prepaid expenses and other | 18,135 | 8,872 |
Total current assets | 118,355 | 118,975 |
Noncurrent assets: | ||
Property, plant and equipment, net of accumulated depreciation of $22,574 and $19,768 respectively | 31,775 | 28,149 |
Deferred tax asset | 1,092 | 1,076 |
Other assets | 11,590 | 10,373 |
Intangible assets | 232,774 | 216,815 |
Goodwill | 346,183 | 286,444 |
Total assets | 741,769 | 661,832 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 4,554 | 6,134 |
Accrued payroll and benefits | 9,380 | 9,433 |
Unearned revenues | 14,357 | 15,694 |
Other accrued expenses | 15,892 | 12,098 |
Total current liabilities | 44,183 | 43,359 |
Noncurrent liabilities: | ||
Deferred tax liability | 44,340 | 34,028 |
Other long-term liabilities | 17,320 | 7,693 |
Credit facility | 62,000 | 13,000 |
Convertible senior notes, net of debt issuance costs | 170,965 | 170,272 |
Total liabilities | 338,808 | 268,352 |
Stockholders’ equity: | ||
Common stock, no par value; authorized 25,000,000 shares; issued and outstanding, 5,394,043 and 5,369,466 shares, respectively | 340,852 | 332,076 |
Retained earnings | 71,953 | 74,199 |
Accumulated other comprehensive (loss) | (9,844) | (12,795) |
Total stockholders’ equity | 402,961 | 393,480 |
Total liabilities and stockholders’ equity | 741,769 | 661,832 |
Customer Relationships [Member] | ||
Noncurrent assets: | ||
Intangible assets | 162,890 | 152,189 |
Intellectual Property [Member] | ||
Noncurrent assets: | ||
Intangible assets | 45,753 | 46,400 |
Other Intangible Assets [Member] | ||
Noncurrent assets: | ||
Intangible assets | $ 24,131 | $ 18,226 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Allowance for doubtful accounts receivable | $ 1,363 | $ 849 |
Property, plant and equipment, accumulated Depreciation | $ 22,574 | $ 19,768 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, issued (in shares) | 5,394,043 | 5,369,466 |
Common stock, outstanding (in shares) | 5,394,043 | 5,369,466 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | $ 53,473 | $ 54,287 | $ 157,283 | $ 163,489 |
Cost of revenues | 20,071 | 21,522 | 60,589 | 62,997 |
Gross profit | 33,402 | 32,765 | 96,694 | 100,492 |
Operating expense: | ||||
Selling | 9,737 | 8,437 | 28,363 | 27,660 |
General and administrative | 19,438 | 16,129 | 55,024 | 54,543 |
Research and development | 4,294 | 4,797 | 14,098 | 15,486 |
Total operating expense | 33,469 | 29,363 | 97,485 | 97,689 |
Operating (loss) income | (67) | 3,402 | (791) | 2,803 |
Nonoperating expense: | ||||
Interest expense and amortization of debt issuance costs | 1,856 | 1,162 | 3,809 | 3,390 |
Other (income) expense, net | (3,869) | 324 | (4,284) | (475) |
Total nonoperating (income) expense, net | (2,013) | 1,486 | (475) | 2,915 |
Earnings (loss) before income taxes | 1,946 | 1,916 | (316) | (112) |
Income tax (benefit) expense | (170) | 1,465 | (653) | (431) |
Net (loss) income | $ 2,116 | $ 451 | $ 337 | $ 319 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.39 | $ 0.08 | $ 0.06 | $ 0.06 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 0.08 | $ 0.06 | $ 0.06 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 5,393 | 5,339 | 5,384 | 5,312 |
Fully diluted shares (in shares) | 5,396 | 5,360 | 5,394 | 5,354 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Net income | $ 2,116 | $ 451 | $ 337 | $ 319 |
Other comprehensive income (loss): | ||||
Foreign currency translation | 10,965 | 11,345 | 2,951 | (17,838) |
Comprehensive income (loss) | $ 13,081 | $ 11,796 | $ 3,288 | $ (17,519) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |
Balance (in shares) at Mar. 31, 2022 | 5,265,627 | ||||
Balance at Mar. 31, 2022 | $ 313,460 | $ 76,675 | $ 3,666 | [1] | $ 393,801 |
Exercise of stock options and vesting of restricted stock units (in shares) | 31,690 | ||||
Exercise of stock options and vesting of restricted stock units | $ 1,438 | 1,438 | |||
Tax withholding on vesting of restricted stock units (in shares) | (9) | ||||
Tax withholding on vesting of restricted stock units | $ (2) | 0 | 0 | [1] | (2) |
Dividends paid, $0.16 per share | (843) | (843) | |||
Stock-based compensation expense | 3,432 | 3,432 | |||
Foreign currency translation | (15,957) | [1] | (15,957) | ||
Net (loss) income | $ 0 | (1,438) | (1,438) | ||
Balance (in shares) at Jun. 30, 2022 | 5,297,308 | ||||
Balance at Jun. 30, 2022 | $ 318,328 | 74,394 | (12,291) | [1] | 380,431 |
Balance (in shares) at Mar. 31, 2022 | 5,265,627 | ||||
Balance at Mar. 31, 2022 | $ 313,460 | 76,675 | 3,666 | [1] | 393,801 |
Foreign currency translation | (17,838) | ||||
Net (loss) income | 319 | ||||
Balance (in shares) at Dec. 31, 2022 | 5,341,890 | ||||
Balance at Dec. 31, 2022 | $ 326,933 | 74,444 | (14,172) | [1] | 387,205 |
Balance (in shares) at Jun. 30, 2022 | 5,297,308 | ||||
Balance at Jun. 30, 2022 | $ 318,328 | 74,394 | (12,291) | [1] | 380,431 |
Exercise of stock options and vesting of restricted stock units (in shares) | 42,014 | ||||
Exercise of stock options and vesting of restricted stock units | $ 2,778 | 2,778 | |||
Tax withholding on vesting of restricted stock units (in shares) | (3,051) | ||||
Tax withholding on vesting of restricted stock units | $ (572) | (572) | |||
Dividends paid, $0.16 per share | (852) | (852) | |||
Stock-based compensation expense | $ 4,371 | 4,371 | |||
Foreign currency translation | (13,226) | [1] | (13,226) | ||
Net (loss) income | 1,306 | 1,306 | |||
Balance (in shares) at Sep. 30, 2022 | 5,336,271 | ||||
Balance at Sep. 30, 2022 | $ 324,905 | 74,848 | (25,517) | [1] | 374,236 |
Exercise of stock options and vesting of restricted stock units (in shares) | 7,376 | ||||
Exercise of stock options and vesting of restricted stock units | $ 307 | 307 | |||
Tax withholding on vesting of restricted stock units (in shares) | (1,757) | ||||
Tax withholding on vesting of restricted stock units | $ (335) | (335) | |||
Dividends paid, $0.16 per share | (855) | (855) | |||
Stock-based compensation expense | 2,056 | 2,056 | |||
Foreign currency translation | 11,345 | [1] | 11,345 | ||
Net (loss) income | $ 0 | 451 | 0 | 451 | |
Balance (in shares) at Dec. 31, 2022 | 5,341,890 | ||||
Balance at Dec. 31, 2022 | $ 326,933 | 74,444 | (14,172) | [1] | $ 387,205 |
Balance (in shares) at Mar. 31, 2023 | 5,369,466 | 5,369,466 | |||
Balance at Mar. 31, 2023 | $ 332,076 | 74,199 | (12,795) | [1] | $ 393,480 |
Exercise of stock options and vesting of restricted stock units (in shares) | 20,074 | ||||
Exercise of stock options and vesting of restricted stock units | $ 52 | 52 | |||
Tax withholding on vesting of restricted stock units (in shares) | (5,260) | ||||
Tax withholding on vesting of restricted stock units | $ (712) | 0 | 0 | [1] | (712) |
Dividends paid, $0.16 per share | (859) | (859) | |||
Stock-based compensation expense | $ 2,968 | 2,968 | |||
Foreign currency translation | (6,661) | [1] | (6,661) | ||
Net (loss) income | (549) | (549) | |||
Balance (in shares) at Jun. 30, 2023 | 5,384,280 | ||||
Balance at Jun. 30, 2023 | $ 334,384 | 72,791 | (19,456) | [1] | $ 387,719 |
Balance (in shares) at Mar. 31, 2023 | 5,369,466 | 5,369,466 | |||
Balance at Mar. 31, 2023 | $ 332,076 | 74,199 | (12,795) | [1] | $ 393,480 |
Exercise of stock options and vesting of restricted stock units (in shares) | 2,000 | ||||
Foreign currency translation | $ 2,951 | ||||
Net (loss) income | $ 337 | ||||
Balance (in shares) at Dec. 31, 2023 | 5,394,043 | 5,394,043 | |||
Balance at Dec. 31, 2023 | $ 340,852 | 71,953 | (9,844) | [1] | $ 402,961 |
Balance (in shares) at Jun. 30, 2023 | 5,384,280 | ||||
Balance at Jun. 30, 2023 | $ 334,384 | 72,791 | (19,456) | [1] | 387,719 |
Exercise of stock options and vesting of restricted stock units (in shares) | 7,464 | ||||
Exercise of stock options and vesting of restricted stock units | $ 304 | 304 | |||
Tax withholding on vesting of restricted stock units (in shares) | (18) | ||||
Tax withholding on vesting of restricted stock units | $ (2) | (2) | |||
Dividends paid, $0.16 per share | (862) | (862) | |||
Stock-based compensation expense | $ 3,183 | 3,183 | |||
Foreign currency translation | (1,353) | [1] | (1,353) | ||
Net (loss) income | (1,230) | (1,230) | |||
Balance (in shares) at Sep. 30, 2023 | 5,391,726 | ||||
Balance at Sep. 30, 2023 | $ 337,869 | 70,699 | (20,809) | [1] | 387,759 |
Exercise of stock options and vesting of restricted stock units (in shares) | 2,415 | ||||
Exercise of stock options and vesting of restricted stock units | $ 2 | 2 | |||
Tax withholding on vesting of restricted stock units (in shares) | (98) | ||||
Tax withholding on vesting of restricted stock units | $ (12) | (12) | |||
Dividends paid, $0.16 per share | (862) | (862) | |||
Stock-based compensation expense | $ 2,993 | 2,993 | |||
Foreign currency translation | 10,965 | [1] | 10,965 | ||
Net (loss) income | 2,116 | $ 2,116 | |||
Balance (in shares) at Dec. 31, 2023 | 5,394,043 | 5,394,043 | |||
Balance at Dec. 31, 2023 | $ 340,852 | $ 71,953 | $ (9,844) | [1] | $ 402,961 |
[1]Accumulated Other Comprehensive [(Loss) Income]. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | |
Dividends paid, per share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 337 | $ 319 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation of property, plant and equipment | 2,899 | 3,196 |
Amortization of acquisition-related intangibles | 22,380 | 21,573 |
Stock-based compensation expense | 9,144 | 9,859 |
Non-cash interest and debt amortization | 692 | 679 |
Other | (1,614) | (1,038) |
Cash from changes in operating assets and liabilities: | ||
Accounts receivable, net | 8,294 | (1,979) |
Inventories | 217 | (9,191) |
Prepaid expenses and other assets | (7,841) | (2,312) |
Accounts payable | (1,656) | (1,339) |
Accrued liabilities and taxes payable | (124) | (5,221) |
Unearned revenues | (1,478) | 918 |
Net cash provided by operating activities | 31,250 | 15,464 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (79,700) | (4,950) |
Purchases of property, plant and equipment | (2,032) | (3,518) |
Net cash (used in) investing activities | (81,732) | (8,468) |
Cash flows from financing activities: | ||
Proceeds from the issuance of debt | 71,000 | 0 |
Repayment of debt | (22,000) | (30,000) |
Dividends paid | (2,583) | (2,550) |
Proceeds from the exercise of stock options | 358 | 4,523 |
Payment of tax withholding obligation on vesting of restricted stock | (726) | (909) |
Other financing, net | (280) | 0 |
Net cash provided by (used in) financing activities | 45,769 | (28,936) |
Effect of exchange rate changes on cash and cash equivalents | 27 | (1,305) |
Net (decrease) in cash and cash equivalents | (4,686) | (23,245) |
Cash and cash equivalents at beginning of period | 32,910 | 49,346 |
Cash and cash equivalents at end of period | 28,224 | 26,101 |
Acquisition-related consideration held back against potential indemnification losses | $ 9,526 | $ 0 |
Note 1 - Description of Busines
Note 1 - Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2023 | |
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 are a multinational leader in the design and manufacture of life sciences tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare, and medical device industries. We offer products and services to help our customers ensure product integrity, increase patient and worker safety, and improve the quality of life throughout the world. We have manufacturing operations in the United States and Europe, and our products are marketed by our sales personnel in North America, Europe, and Asia Pacific, and by independent distributors in these areas as well as throughout the rest of the world. We prefer markets in which we can establish a strong presence and achieve high gross profit margins. As of December 31, 2023 four ● Sterilization and Disinfection Control ● Clinical Genomics ● Biopharmaceutical Development ● Calibration Solutions Unallocated corporate expenses are reported within Corporate and Other. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. In the opinion of management, such unaudited information includes all adjustments, consisting of normal recurring adjustments necessary for the fair statement of our financial position and results of operations. The results of operations for interim periods are not may not no 10 10 March 31, 2023 Our fiscal year ends on March 31. Prior Period Reclassifications Certain prior year amounts presented have been reclassified to conform with current presentation. The reclassifications have not 10 Risks and Uncertainties The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the reporting date and revenues and expenses during the reporting periods. These estimates represent management's judgment about the outcome of future events. The global business environment continues to be impacted by cost pressure, the overall effects of economic uncertainty on customers' purchasing patterns, high interest rates, and other factors. It is not Recently Issued Accounting Pronouncements In November 2023, No. 2023 07, 280 No. 2023 07 280 December 31, 2023 ( 2025 In December 2023, No. 2023 09, 740 No. 2023 09, December 15, 2024 ( 2026 We have reviewed all recently issued accounting pronouncements and have concluded that, other than as described above, they are either not not |
Note 2 - Significant Transactio
Note 2 - Significant Transactions | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Significant Transactions [Text Block] | Note 2 . Significant Transactions Acquisition of GKE In accordance with the sale and purchase agreement executed October 14, 2023, October 16, 2023, December 31, 2023 ( 510 Total cash consideration for the GKE acquisition was $88,789, net of cash and financial liabilities and subject to customary purchase price adjustments, including working capital adjustments of approximately $1,000 expected to be paid to Mesa from the seller during the fourth 2024. 18 7. October 16, 2023, December 31, 2023, January 1, 2024. Preliminary Allocation of Purchase Price We accounted for the GKE acquisition as a business combination using the acquisition method of accounting. Under the acquisition method of accounting, the acquiree's identifiable assets acquired and liabilities assumed are recorded at their acquisition date fair values and are consolidated with those of Mesa. The relief from royalty method was used to value our trade names and intellectual property, while the multi-period excess earnings method, a form of the income approach, was used to value our customer relationships. The non-compete agreements were valued using a probability-weighted estimate of the expected economic impact that would occur in the absence of the agreements. Significant judgments and estimates are required when performing valuations, including, among other assumptions, internal rates of return, revenue growth rates, customer attrition rates, and royalty rates, all of which are considered Level 3 may This preliminary purchase price allocation is subject to revision as more detailed analyses are completed. If additional information about the fair value of assets acquired and liabilities assumed becomes available, we may not one may may may not 1 2 3 4 5 The following table summarizes the allocation of the preliminary purchase price as of acquisition: Life (in years) Amount Cash and cash equivalents $ 4,192 Accounts receivable (a) 2,252 Inventories (b) 3,823 Other current assets 188 Total current assets 10,455 Property, plant and equipment (c) 2,772 Other noncurrent assets 3,030 Intangible assets: Goodwill (d) 54,470 Customer relationships (e) 7 26,876 Intellectual property (e) 7 3,524 Tradenames (e) 10 6,049 Non-compete agreements (e) 3 743 Total assets acquired $ 107,919 Accounts payable 11 Other current liabilities 2,491 Deferred tax liabilities 9,763 Other long-term liabilities 2,673 Total liabilities assumed 14,938 Total purchase price, net of cash acquired and subject to adjustments for working capital $ 88,789 (a) Trade receivables are expected to be collected. (b) Includes $1,507 three October 16, 2023 December 31, 2023, $412 (c) Includes $1,727 October 16, 2023 December 31, 2023, $83 (d) Acquired goodwill of $54,470, none (e) Acquired amortizable intangible assets are currently expected to be amortized on a straight line basis over a weighted average period of 7.4 October 16, 2023 December 31, 2023, $838 $122 Acquisition related costs, such as legal and advisory fees, and integration related costs of $770 and $1,275 for the three nine December 31, 2023, not GKE's operations contributed $3,837 to revenues and $565 of net income to our consolidated results during the three nine December 31, 2023. It is impracticable for us to disclose interim pro-forma information regarding the combined results of the operations of Mesa and GKE as if the acquisition had occurred at an earlier date. Prior to acquisition, GKE was a privately owned company with requirements to close their accounting records on an annual cadence rather than on an interim basis, and certain interim financial information cannot be recreated for accurate financial results. For example, prior to Mesa's ownership, GKE accounted for costs of goods sold at an unburdened rate and performed only annual inventory accounts. We would be unable to retroactively establish costs of revenues in accordance with U.S. GAAP given the unavailability of sufficient information for ending interim periods. Additionally, all transactions occurring between the three not Belyntic GmbH On November 17, 2022, 11. During fiscal year 2023 , nine December 31, 2023, December 31, 2023. |
Note 3 - Revenue
Note 3 - Revenue | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 3. We develop, manufacture, market, sell and maintain life sciences tools and quality control instruments and related consumables. We evaluate revenues internally primarily based on operating segment and the nature of goods and services provided. Hardware sales include physical products such as instruments used for molecular and genetic analysis, protein synthesizers, medical meters, wireless sensor systems, and data loggers. Hardware sales may Consumables are typically used on a one We also offer maintenance, calibration, and testing service contracts. Under our service contracts we perform labor and replace parts on an as-needed basis over a contractually specified period of time, or perform specific, discrete services. Typically, revenue is recognized upon shipment of a product, upon completion of a discrete service, or over a period of time reflective of the performance period in the applicable contract, depending on when our obligation to the customer is satisfied. The significant majority of our revenues and related receivables are generated from contracts with customers that are 12 The following tables present disaggregated revenues for the three nine December 31, 2023 December 31, 2022 Three Months Ended December 31, 2023 Sterilization and Disinfection Control (1) Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 16,832 $ 9,758 $ 4,080 $ 539 $ 31,209 Hardware and Software 180 1,639 2,672 8,254 12,745 Services 2,326 1,149 2,678 3,366 9,519 Total Revenues $ 19,338 $ 12,546 $ 9,430 $ 12,159 $ 53,473 ( 1 October 16, 2023. Three Months Ended December 31, 2022 Sterilization and Disinfection Control Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 14,307 $ 10,885 $ 3,584 $ 553 $ 29,329 Hardware and Software 95 3,371 5,844 7,023 16,333 Services 1,881 1,329 2,218 3,197 8,625 Total Revenues $ 16,283 $ 15,585 $ 11,646 $ 10,773 $ 54,287 Nine Months Ended December 31, 2023 Sterilization and Disinfection Control (1) Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 45,288 $ 28,490 $ 12,753 $ 1,834 $ 88,365 Hardware and Software 381 9,540 7,838 22,216 39,975 Services 6,676 3,434 7,935 10,898 28,943 Total Revenues $ 52,345 $ 41,464 $ 28,526 $ 34,948 $ 157,283 ( 1 October 16, 2023. Nine Months Ended December 31, 2022 Sterilization and Disinfection Control Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 41,239 $ 34,815 $ 11,248 $ 2,272 $ 89,574 Hardware and Software 619 9,349 16,656 18,696 45,320 Services 6,163 4,361 6,853 11,218 28,595 Total Revenues $ 48,021 $ 48,525 $ 34,757 $ 32,186 $ 163,489 Revenues from external customers are attributed to individual countries based upon the locations to which the products are shipped or exported, or locations where services are performed, as follows: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 United States $ 25,595 $ 28,645 $ 79,205 $ 88,756 China 4,942 7,482 18,584 18,659 Other 22,936 18,160 59,494 56,074 Total revenues $ 53,473 $ 54,287 $ 157,283 $ 163,489 Other than China, no 10% three nine December 31, 2023 2022 Contract Balances Our contracts have varying payment terms and conditions. Some customers prepay for products and services, resulting in unearned revenues or customer deposits, called contract liabilities. Short-term contract liabilities are included within unearned revenues in the accompanying Condensed Consolidated Balance Sheets, and long-term contract liabilities are included within Other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. A summary of contract liabilities is as follows: Contract liabilities as of March 31, 2023 $ 16,098 Prior year liabilities recognized in revenues during the nine months ended December 31, 2023 (6,858 ) Contract liabilities added during the nine months ended December 31, 2023, net of revenues recognized 5,478 Contract liabilities balance as of December 31, 2023 $ 14,718 Contract liabilities primarily relate to service contracts with original expected service durations of 12 |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 4. Our financial instruments consist primarily of cash and cash equivalents, trade accounts receivable, obligations under trade accounts payable, and debt. Due to their short-term nature, the carrying values for cash and cash equivalents, trade accounts receivable, and trade accounts payable approximate fair value; they are classified within Level 1 Historically, the financial instruments that subject us to the highest concentration of credit risk are cash and cash equivalents and accounts receivable. We maintain relationships and cash deposits at multiple banking institutions across the world in an effort to diversify and reduce risk of loss. Concentration of credit risk with respect to accounts receivable is limited to customers to whom we make significant sales. No customers accounted for more than 10% December 31, 2023 We have outstanding $172,500 aggregate principal amount of 1.375% convertible senior notes due August 15, 2025 ( 2 The estimated fair value and carrying value of the Notes was as follows: December 31, 2023 March 31, 2023 Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Notes $ 170,965 $ 158,916 $ 170,272 $ 161,072 The Belyntic acquisition obligates us to pay contingent consideration of up to $1,500 cash upon regulatory approval of certain patent applications (see Note 11. 3 December 31, 2023 Amounts recognized or disclosed at fair value in the unaudited condensed consolidated financial statements on a nonrecurring basis include the initial recognition and disclosure of most assets and liabilities purchased in business acquisitions and any related measurement period adjustments. Additionally, assets such as property and equipment, operating lease assets, goodwill and other intangible assets are adjusted to fair value if determined to be impaired. We recorded no three nine December 31, 2023 2022 3 There were no three nine December 31, 2023 2022 |
Note 5 - Supplemental Balance S
Note 5 - Supplemental Balance Sheets Information | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | Note 5. Inventories consisted of the following: December 31, 2023 March 31, 2023 Raw materials $ 19,169 $ 20,064 Work in process 1,155 617 Finished goods 15,649 13,961 Total inventories $ 35,973 $ 34,642 Prepaid expenses and other current assets consisted of the following: December 31, 2023 March 31, 2023 Prepaid expenses $ 3,271 $ 2,498 Deposits 2,143 1,376 Prepaid income taxes 8,176 953 Other current assets 4,545 4,045 Total prepaid expenses and other $ 18,135 $ 8,872 Accrued payroll and benefits consisted of the following: December 31, 2023 March 31, 2023 Bonus payable $ 3,757 $ 4,461 Wages and paid-time-off payable 3,150 2,329 Payroll related taxes 1,998 1,982 Other benefits payable 475 661 Total accrued payroll and benefits $ 9,380 $ 9,433 Other accrued expenses consisted of the following: December 31, 2023 March 31, 2023 Accrued business taxes $ 6,744 $ 5,941 Current operating lease liabilities 3,135 2,868 Income taxes payable 1,809 992 Other 4,204 2,297 Total other accrued expenses $ 15,892 $ 12,098 |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets, Net | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 6. Intangible assets, the significant majority of which are finite-lived, consisted of the following: December 31, 2023 March 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 265,408 $ (102,518 ) $ 162,890 $ 238,247 $ (86,058 ) $ 152,189 Intellectual property 71,169 (25,416 ) 45,753 65,950 (19,550 ) 46,400 Other intangibles 31,867 (7,736 ) 24,131 24,793 (6,567 ) 18,226 Total $ 368,444 $ (135,670 ) $ 232,774 $ 328,990 $ (112,175 ) $ 216,815 Amortization expense for finite-lived intangible assets acquired in a business combination was as follows: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Amortization in cost of revenues $ 1,883 $ 1,695 $ 5,367 $ 5,094 Amortization in general and administrative 6,092 5,452 17,013 16,479 Total $ 7,975 $ 7,147 $ 22,380 $ 21,573 For the following fiscal years ending March 31, Remainder of 2024 $ 8,389 2025 32,663 2026 31,857 2027 31,200 2028 30,587 The change in the carrying amount of goodwill was as follows: Sterilization and Disinfection Control Clinical Genomics Biopharmaceutical Development Calibration Solutions Total March 31, 2023 $ 29,559 $ 135,811 $ 83,857 $ 37,217 286,444 Effect of foreign currency translation 2,460 (55 ) 2,009 14 4,428 Goodwill related to GKE acquisition 54,470 - - - 54,470 Measurement period adjustment, Belyntic Acquisition - - 841 - 841 December 31, 2023 $ 86,489 $ 135,756 $ 86,707 $ 37,231 $ 346,183 Goodwill in the Biopharmaceutical Development division related to the Belyntic acquisition and goodwill in the Sterilization and Disinfection Control division related to the GKE acquisition are expected to be tax deductible. |
Note 7 - Indebtedness
Note 7 - Indebtedness | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 7 . Indebtedness Credit Facility On October 5, 2023, four December 31, 2023 1 2 not 3 not March 2025. The financial covenants in the Credit Facility include a maximum leverage ratio of 4.5 to 1.0 December 31, 2023 may 1.0 four three December 31, 2023. 1.0. December 31, 2023 Amounts borrowed under the Credit Facility bear interest at either a base rate or a SOFR rate plus an applicable spread. The interest rate on borrowings under our line of credit as of December 31, 2023 During the three December 31, 2023, 2. third December 31, 2023 January 2024. Convert ible Notes On August 12, 2019, August 15, 2025, February 15 August 15 $1,000 Upon conversion, we will pay or deliver, as the case may not three nine December 31, 2023 December 31, 2023 not December 31, 2023 The net carrying amount of the Notes was as follows: December 31, 2023 March 31, 2023 Principal outstanding $ 172,500 $ 172,500 Unamortized debt issuance costs (1,535 ) (2,228 ) Net carrying value $ 170,965 $ 170,272 We recognized interest expense on the Notes as follows: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Coupon interest expense at 1.375% $ 593 $ 593 $ 1,779 $ 1,779 Amortization of debt issuance costs 231 227 692 679 Total interest and amortization of debt issuance costs $ 824 $ 820 $ 2,471 $ 2,458 The effective interest rate on the Notes is approximately 1.9%. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 8 . Stockholders' Equity Stock-Based Compensation During the nine December 31, 2023 2021 660 Expense recognized related to stock-based compensation is as follows: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Stock-based compensation expense $ 2,993 $ 2,056 $ 9,144 $ 9,859 Amount of income tax expense (benefit) recognized in earnings 210 226 727 (1,855 ) Stock-based compensation expense, net of tax $ 3,203 $ 2,282 $ 9,871 $ 8,004 Stock-based compensation expense is included in cost of revenues, selling, general and administrative, and research and development expense in the accompanying unaudited Condensed Consolidated Statements of Income. The following is a summary of stock option award activity for the nine December 31, 2023 Stock Options Shares Subject to Options Weighted- Average Exercise Price per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2023 163 $ 200.62 3.3 $ 1,643 Awards granted 53 131.67 Awards forfeited or expired (17 ) 208.03 Awards exercised (2 ) 132.40 Outstanding as of December 31, 2023 197 $ 182.12 3.5 $ - The stock options granted during the nine December 31, 2023 third The following is a summary of RSU and PSU award activity for the nine December 31, 2023 Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Number of Shares Weighted- Average Grant Date Fair Value per Share Number of Shares Weighted- Average Grant Date Fair Value per Share Outstanding as of March 31, 2023 (1) 57 $ 209.27 44 $ 286.02 Awards granted (1) 54 134.03 32 132.29 Awards forfeited (5 ) 171.83 - - Awards distributed (27 ) 212.36 - - Outstanding as of December 31, 2023 (1) 79 $ 158.94 76 $ 223.07 ( 1 Balances for PSUs are reflected at target. Outstanding time-based RSUs vest and settle in shares of our common stock on a one one nine December 31, 2023 third nine December 31, 2023 September 1, 2024, June 21, 2025 June 21, 2026. nine December 31, 2023 one We grant PSUs to certain key employees. The number of shares earned is determined at the end of each performance period based on Mesa's achievement of certain pre-defined targets per the related award agreement. The outstanding PSUs vest upon completion of the service period described in the award agreement. We recognize the expense relating to the performance-based RSUs based on the probable outcome of achievement of the performance targets on a straight-line basis over the service period. During the nine December 31, 2023 June 21, 2023 June 21, 2026. April 1, 2023 March 31, 2024. not no April 1, 2023 March 31, 2026. |
Note 9 - Net Earnings Per Share
Note 9 - Net Earnings Per Share | 9 Months Ended |
Dec. 31, 2023 | |
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 stock options and both time and performance based RSUs (collectively “stock awards”), as well as common shares underlying our Notes. Stock awards are excluded from the calculation of diluted EPS if they are subject to performance conditions that have not not Shares underlying the Notes were excluded from the diluted EPS calculation for the three nine December 31, 2023 December 31, 2022 The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per share: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Net income available for shareholders $ 2,116 $ 451 $ 337 $ 319 Weighted average outstanding shares of common stock 5,393 5,339 5,384 5,312 Dilutive effect of stock options - 17 1 28 Dilutive effect of RSUs 3 4 9 14 Fully diluted shares 5,396 5,360 5,394 5,354 Basic earnings per share $ 0.39 $ 0.08 $ 0.06 $ 0.06 Diluted earnings per share $ 0.39 $ 0.08 $ 0.06 $ 0.06 The following stock awards were excluded from the calculation of diluted EPS: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Assumed conversion of the Notes 608 608 608 608 Stock awards that were anti-dilutive 277 176 223 159 Stock awards subject to performance and market conditions 57 49 46 51 Total stock awards excluded from diluted EPS 942 833 877 818 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 10 . 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. There is a potential for volatility in the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which they relate, changes in tax laws and foreign tax holidays, settlement with taxing authorities, and foreign currency fluctuations. Our effective income tax rate was (8.7)% and 207.5% for the three nine December 31, 2023, three nine December 31, 2022, three nine December 31, 2023 three nine December 31, 2023 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 11 . Commitments and Contingencies We review the adequacy of our legal reserves on a quarterly basis and establish reserves for loss contingencies that are both probable and reasonably estimable. As of December 31, 2023 no As part of the Belyntic acquisition, we have agreed to pay $1,500 to the sellers if contractually specified patents are issued. During the three December 31, 2023, January 2024, fourth 2024. 12 As part of the GKE acquisition consummated during the three December 31, 2023, 18 may December 31, 2023. |
Note 12 - Segment Information
Note 12 - Segment Information | 9 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 12 . S egment Information The following tables set forth our segment information: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Revenues: Sterilization and Disinfection Control $ 19,338 $ 16,283 $ 52,345 $ 48,021 Clinical Genomics 12,546 15,585 41,464 48,525 Biopharmaceutical Development 9,430 11,646 28,526 34,757 Calibration Solutions 12,159 10,773 34,948 32,186 Total revenues (a) $ 53,473 $ 54,287 $ 157,283 $ 163,489 Gross profit: Sterilization and Disinfection Control $ 13,951 $ 11,614 $ 38,018 $ 34,581 Clinical Genomics 6,449 8,045 20,904 26,535 Biopharmaceutical Development 5,841 7,359 17,783 21,993 Calibration Solutions 7,212 5,740 20,050 17,411 Reportable segment gross profit 33,453 32,758 96,755 100,520 Corporate and Other (b) (51 ) 7 (61 ) (28 ) Gross profit $ 33,402 $ 32,765 $ 96,694 $ 100,492 Reconciling Items: Operating expense 33,469 29,363 97,485 97,689 Operating (loss) income (67 ) 3,402 (791 ) 2,803 Nonoperating (income) expense, net (2,013 ) 1,486 (475 ) 2,915 Earnings (loss) before income taxes $ 1,946 $ 1,916 $ (316 ) $ (112 ) (a) Intersegment revenues are not (b) Unallocated corporate expenses are reported within Corporate and Other. The following table sets forth inventories by reportable segment. Our chief operating decision maker is not December 31, March 31, 2023 2023 Sterilization and Disinfection Control $ 7,593 $ 3,492 Clinical Genomics 11,529 13,985 Biopharmaceutical Development 8,183 8,384 Calibration Solutions 8,668 8,781 Total inventories $ 35,973 $ 34,642 Inventories from GKE total $4,077 as of December 31, 2023, three December 31, 2023. |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Dec. 31, 2023 shares | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | 5. Other Information The following of our directors or officers entered into written plans for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5 1 Chief Executive Officer Gary Owens November 11, 2023 April 2, 2024 The may 5,000 5,000 |
Rule 10b5-1 Arrangement Adopted [Flag] | true |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | true |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Trading Arrangement, Securities Aggregate Available Amount | 5,000 |
Trading Arrangement, Individual Title | Chief Executive Officer |
Trading Arrangement, Individual Name | Gary Owens |
Trading Arrangement Adoption Date | November 11, 2023 |
Trading Arrangement Termination Date | April 2, 2024 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of Business [Policy Text Block] | Description of Business In this quarterly report on Form 10 We are a multinational leader in the design and manufacture of life sciences tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare, and medical device industries. We offer products and services to help our customers ensure product integrity, increase patient and worker safety, and improve the quality of life throughout the world. We have manufacturing operations in the United States and Europe, and our products are marketed by our sales personnel in North America, Europe, and Asia Pacific, and by independent distributors in these areas as well as throughout the rest of the world. We prefer markets in which we can establish a strong presence and achieve high gross profit margins. As of December 31, 2023 four ● Sterilization and Disinfection Control ● Clinical Genomics ● Biopharmaceutical Development ● Calibration Solutions Unallocated corporate expenses are reported within Corporate and Other. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. In the opinion of management, such unaudited information includes all adjustments, consisting of normal recurring adjustments necessary for the fair statement of our financial position and results of operations. The results of operations for interim periods are not may not no 10 10 March 31, 2023 Our fiscal year ends on March 31. |
Reclassification, Comparability Adjustment [Policy Text Block] | Prior Period Reclassifications Certain prior year amounts presented have been reclassified to conform with current presentation. The reclassifications have not 10 |
Risk and Uncertainties, Policy [Policy Text Block] | Risks and Uncertainties The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the reporting date and revenues and expenses during the reporting periods. These estimates represent management's judgment about the outcome of future events. The global business environment continues to be impacted by cost pressure, the overall effects of economic uncertainty on customers' purchasing patterns, high interest rates, and other factors. It is not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In November 2023, No. 2023 07, 280 No. 2023 07 280 December 31, 2023 ( 2025 In December 2023, No. 2023 09, 740 No. 2023 09, December 15, 2024 ( 2026 We have reviewed all recently issued accounting pronouncements and have concluded that, other than as described above, they are either not not |
Note 2 - Significant Transact_2
Note 2 - Significant Transactions (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Life (in years) Amount Cash and cash equivalents $ 4,192 Accounts receivable (a) 2,252 Inventories (b) 3,823 Other current assets 188 Total current assets 10,455 Property, plant and equipment (c) 2,772 Other noncurrent assets 3,030 Intangible assets: Goodwill (d) 54,470 Customer relationships (e) 7 26,876 Intellectual property (e) 7 3,524 Tradenames (e) 10 6,049 Non-compete agreements (e) 3 743 Total assets acquired $ 107,919 Accounts payable 11 Other current liabilities 2,491 Deferred tax liabilities 9,763 Other long-term liabilities 2,673 Total liabilities assumed 14,938 Total purchase price, net of cash acquired and subject to adjustments for working capital $ 88,789 |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended December 31, 2023 Sterilization and Disinfection Control (1) Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 16,832 $ 9,758 $ 4,080 $ 539 $ 31,209 Hardware and Software 180 1,639 2,672 8,254 12,745 Services 2,326 1,149 2,678 3,366 9,519 Total Revenues $ 19,338 $ 12,546 $ 9,430 $ 12,159 $ 53,473 Three Months Ended December 31, 2022 Sterilization and Disinfection Control Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 14,307 $ 10,885 $ 3,584 $ 553 $ 29,329 Hardware and Software 95 3,371 5,844 7,023 16,333 Services 1,881 1,329 2,218 3,197 8,625 Total Revenues $ 16,283 $ 15,585 $ 11,646 $ 10,773 $ 54,287 Nine Months Ended December 31, 2023 Sterilization and Disinfection Control (1) Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 45,288 $ 28,490 $ 12,753 $ 1,834 $ 88,365 Hardware and Software 381 9,540 7,838 22,216 39,975 Services 6,676 3,434 7,935 10,898 28,943 Total Revenues $ 52,345 $ 41,464 $ 28,526 $ 34,948 $ 157,283 Nine Months Ended December 31, 2022 Sterilization and Disinfection Control Clinical Genomics Biopharmaceutical Development Calibration Solutions Total Consumables $ 41,239 $ 34,815 $ 11,248 $ 2,272 $ 89,574 Hardware and Software 619 9,349 16,656 18,696 45,320 Services 6,163 4,361 6,853 11,218 28,595 Total Revenues $ 48,021 $ 48,525 $ 34,757 $ 32,186 $ 163,489 |
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, 2023 2022 2023 2022 United States $ 25,595 $ 28,645 $ 79,205 $ 88,756 China 4,942 7,482 18,584 18,659 Other 22,936 18,160 59,494 56,074 Total revenues $ 53,473 $ 54,287 $ 157,283 $ 163,489 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Contract liabilities as of March 31, 2023 $ 16,098 Prior year liabilities recognized in revenues during the nine months ended December 31, 2023 (6,858 ) Contract liabilities added during the nine months ended December 31, 2023, net of revenues recognized 5,478 Contract liabilities balance as of December 31, 2023 $ 14,718 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | December 31, 2023 March 31, 2023 Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Notes $ 170,965 $ 158,916 $ 170,272 $ 161,072 |
Note 5 - Supplemental Balance_2
Note 5 - Supplemental Balance Sheets Information (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2023 March 31, 2023 Raw materials $ 19,169 $ 20,064 Work in process 1,155 617 Finished goods 15,649 13,961 Total inventories $ 35,973 $ 34,642 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | December 31, 2023 March 31, 2023 Prepaid expenses $ 3,271 $ 2,498 Deposits 2,143 1,376 Prepaid income taxes 8,176 953 Other current assets 4,545 4,045 Total prepaid expenses and other $ 18,135 $ 8,872 |
Schedule of Employee Related Liabilities [Table Text Block] | December 31, 2023 March 31, 2023 Bonus payable $ 3,757 $ 4,461 Wages and paid-time-off payable 3,150 2,329 Payroll related taxes 1,998 1,982 Other benefits payable 475 661 Total accrued payroll and benefits $ 9,380 $ 9,433 |
Schedule of Accrued Liabilities [Table Text Block] | December 31, 2023 March 31, 2023 Accrued business taxes $ 6,744 $ 5,941 Current operating lease liabilities 3,135 2,868 Income taxes payable 1,809 992 Other 4,204 2,297 Total other accrued expenses $ 15,892 $ 12,098 |
Note 6 - Goodwill and Intangi_2
Note 6 - Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2023 March 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 265,408 $ (102,518 ) $ 162,890 $ 238,247 $ (86,058 ) $ 152,189 Intellectual property 71,169 (25,416 ) 45,753 65,950 (19,550 ) 46,400 Other intangibles 31,867 (7,736 ) 24,131 24,793 (6,567 ) 18,226 Total $ 368,444 $ (135,670 ) $ 232,774 $ 328,990 $ (112,175 ) $ 216,815 |
Finite-Lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Amortization in cost of revenues $ 1,883 $ 1,695 $ 5,367 $ 5,094 Amortization in general and administrative 6,092 5,452 17,013 16,479 Total $ 7,975 $ 7,147 $ 22,380 $ 21,573 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder of 2024 $ 8,389 2025 32,663 2026 31,857 2027 31,200 2028 30,587 |
Schedule of Goodwill [Table Text Block] | Sterilization and Disinfection Control Clinical Genomics Biopharmaceutical Development Calibration Solutions Total March 31, 2023 $ 29,559 $ 135,811 $ 83,857 $ 37,217 286,444 Effect of foreign currency translation 2,460 (55 ) 2,009 14 4,428 Goodwill related to GKE acquisition 54,470 - - - 54,470 Measurement period adjustment, Belyntic Acquisition - - 841 - 841 December 31, 2023 $ 86,489 $ 135,756 $ 86,707 $ 37,231 $ 346,183 |
Note 7 - Indebtedness (Tables)
Note 7 - Indebtedness (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Convertible Debt [Table Text Block] | December 31, 2023 March 31, 2023 Principal outstanding $ 172,500 $ 172,500 Unamortized debt issuance costs (1,535 ) (2,228 ) Net carrying value $ 170,965 $ 170,272 |
Interest Expense on Convertible Debt [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Coupon interest expense at 1.375% $ 593 $ 593 $ 1,779 $ 1,779 Amortization of debt issuance costs 231 227 692 679 Total interest and amortization of debt issuance costs $ 824 $ 820 $ 2,471 $ 2,458 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Stock-based compensation expense $ 2,993 $ 2,056 $ 9,144 $ 9,859 Amount of income tax expense (benefit) recognized in earnings 210 226 727 (1,855 ) Stock-based compensation expense, net of tax $ 3,203 $ 2,282 $ 9,871 $ 8,004 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Stock Options Shares Subject to Options Weighted- Average Exercise Price per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2023 163 $ 200.62 3.3 $ 1,643 Awards granted 53 131.67 Awards forfeited or expired (17 ) 208.03 Awards exercised (2 ) 132.40 Outstanding as of December 31, 2023 197 $ 182.12 3.5 $ - |
Share-Based Payment Arrangement, Activity [Table Text Block] | Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Number of Shares Weighted- Average Grant Date Fair Value per Share Number of Shares Weighted- Average Grant Date Fair Value per Share Outstanding as of March 31, 2023 (1) 57 $ 209.27 44 $ 286.02 Awards granted (1) 54 134.03 32 132.29 Awards forfeited (5 ) 171.83 - - Awards distributed (27 ) 212.36 - - Outstanding as of December 31, 2023 (1) 79 $ 158.94 76 $ 223.07 |
Note 9 - Net Earnings Per Sha_2
Note 9 - Net Earnings Per Share (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Net income available for shareholders $ 2,116 $ 451 $ 337 $ 319 Weighted average outstanding shares of common stock 5,393 5,339 5,384 5,312 Dilutive effect of stock options - 17 1 28 Dilutive effect of RSUs 3 4 9 14 Fully diluted shares 5,396 5,360 5,394 5,354 Basic earnings per share $ 0.39 $ 0.08 $ 0.06 $ 0.06 Diluted earnings per share $ 0.39 $ 0.08 $ 0.06 $ 0.06 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Assumed conversion of the Notes 608 608 608 608 Stock awards that were anti-dilutive 277 176 223 159 Stock awards subject to performance and market conditions 57 49 46 51 Total stock awards excluded from diluted EPS 942 833 877 818 |
Note 12 - Segment Information (
Note 12 - Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Revenues: Sterilization and Disinfection Control $ 19,338 $ 16,283 $ 52,345 $ 48,021 Clinical Genomics 12,546 15,585 41,464 48,525 Biopharmaceutical Development 9,430 11,646 28,526 34,757 Calibration Solutions 12,159 10,773 34,948 32,186 Total revenues (a) $ 53,473 $ 54,287 $ 157,283 $ 163,489 Gross profit: Sterilization and Disinfection Control $ 13,951 $ 11,614 $ 38,018 $ 34,581 Clinical Genomics 6,449 8,045 20,904 26,535 Biopharmaceutical Development 5,841 7,359 17,783 21,993 Calibration Solutions 7,212 5,740 20,050 17,411 Reportable segment gross profit 33,453 32,758 96,755 100,520 Corporate and Other (b) (51 ) 7 (61 ) (28 ) Gross profit $ 33,402 $ 32,765 $ 96,694 $ 100,492 Reconciling Items: Operating expense 33,469 29,363 97,485 97,689 Operating (loss) income (67 ) 3,402 (791 ) 2,803 Nonoperating (income) expense, net (2,013 ) 1,486 (475 ) 2,915 Earnings (loss) before income taxes $ 1,946 $ 1,916 $ (316 ) $ (112 ) |
Schedule of Segment Reporting Information, by Inventory Segment [Table Text Block] | December 31, March 31, 2023 2023 Sterilization and Disinfection Control $ 7,593 $ 3,492 Clinical Genomics 11,529 13,985 Biopharmaceutical Development 8,183 8,384 Calibration Solutions 8,668 8,781 Total inventories $ 35,973 $ 34,642 |
Note 2 - Significant Transact_3
Note 2 - Significant Transactions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 16, 2023 | Nov. 17, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | |
GKE Acquisition [Member] | ||||
Payments to Acquire Businesses, Gross | $ 88,789 | |||
Business Combination, Consideration Transferred, Working Capital Adjustment | 1,000 | |||
Business Combination, Consideration Transferred, Liabilities Incurred | 9,500 | $ 9,500 | ||
Proceeds from Lines of Credit | $ 71,000 | |||
Business Combination, Acquisition Related Costs | 770 | $ 1,275 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 3,837 | |||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 565 | |||
GKE Acquisition [Member] | GKE GmbH and SAL GmbH [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||
GKE Acquisition [Member] | Beijing GKE Science & Technology Co. Ltd. [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||
Belyntic Acquisition [Member] | ||||
Payments to Acquire Businesses, Gross | $ 4,950 | |||
Business Combination, Consideration Transferred, Total | 6,450 | |||
Business Combination, Contingent Consideration, Liability | $ 1,500 |
Note 2 - Significant Transact_4
Note 2 - Significant Transactions - Allocation of Preliminary Price (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Oct. 16, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |||
Goodwill (d) | $ 346,183 | $ 286,444 | ||||
Total purchase price, net of cash acquired and subject to adjustments for working capital | 79,700 | $ 4,950 | ||||
GKE Acquisition [Member] | ||||||
Cash and cash equivalents | $ 4,192 | |||||
Accounts receivable (a) | 2,252 | |||||
Inventories (b) | 3,823 | [1] | $ 4,077 | |||
Other current assets | 188 | |||||
Total current assets | 10,455 | |||||
Property, plant and equipment (c) | [2] | 2,772 | ||||
Other noncurrent assets | 3,030 | |||||
Goodwill (d) | 54,470 | |||||
Total assets acquired | 107,919 | |||||
Accounts payable | 11 | |||||
Other current liabilities | 2,491 | |||||
Deferred tax liabilities | 9,763 | |||||
Other long-term liabilities | 2,673 | |||||
Total liabilities assumed | 14,938 | |||||
Total purchase price, net of cash acquired and subject to adjustments for working capital | $ 88,789 | |||||
GKE Acquisition [Member] | Customer Relationships [Member] | ||||||
Intangible assets, life (Year) | 7 years | |||||
Intangible assets | $ 26,876 | |||||
Intangible assets. life (Year) | 7 years | |||||
GKE Acquisition [Member] | Intellectual Property [Member] | ||||||
Intangible assets, life (Year) | 7 years | |||||
Intangible assets | $ 3,524 | |||||
Intangible assets. life (Year) | 7 years | |||||
GKE Acquisition [Member] | Trade Names [Member] | ||||||
Intangible assets, life (Year) | 10 years | |||||
Intangible assets | $ 6,049 | |||||
Intangible assets. life (Year) | 10 years | |||||
GKE Acquisition [Member] | Noncompete Agreements [Member] | ||||||
Intangible assets, life (Year) | [3] | 3 years | ||||
Intangible assets | [3] | $ 743 | ||||
Intangible assets. life (Year) | [3] | 3 years | ||||
[1]Includes $1,507 of preliminary inventory step up, which we expect to amortize within approximately three fiscal quarters from the acquisition date. During the period from October 16, 2023 to December 31, 2023, $412 of inventory step up amortization was recorded to cost of revenues. Preliminary accounting for the fair value step up of GKE China's inventory is incomplete due to the recent closing date.[2]Includes $1,727 of preliminary property, plant and equipment step up, which will be amortized based on the underlying assets' expected lives. During the period from October 16, 2023 to December 31, 2023, $83 of depreciation expense was recorded related to the property, plant and equipment fair value step up.[3]Acquired amortizable intangible assets are currently expected to be amortized on a straight line basis over a weighted average period of 7.4 years. The identified intangible assets will be amortized on a straight line basis over their useful lives, which approximates the pattern that the assets' economic benefits are expected to be consumed. Amortization expense for customer relationships, tradenames, and noncompete agreements will be expensed to general and administrative expense, and amortization expense for intellectual property will be expensed to cost of revenues. During the period from October 16, 2023 to December 31, 2023, $838 of amortization expense was recorded to general and administrative costs and $122 of amortization expense was recorded to cost of revenues in the Sterilization Disinfection Control division. |
Note 3 - Revenue - Disaggregati
Note 3 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||||
Revenues | $ 53,473 | $ 54,287 | $ 157,283 | $ 163,489 | |||
Consumables [Member] | Transferred at Point in Time [Member] | |||||||
Revenues | 31,209 | 29,329 | 88,365 | 89,574 | |||
Hardware and Software [Member] | Transferred at Point in Time [Member] | |||||||
Revenues | 12,745 | 16,333 | 39,975 | 45,320 | |||
Service [Member] | Transferred at Point in Time [Member] | |||||||
Revenues | 9,519 | 8,625 | 28,943 | 28,595 | |||
Operating Segments [Member] | Sterilization and Disinfection Control [Member] | |||||||
Revenues | [1] | 19,338 | [2] | 16,283 | 52,345 | [2] | 48,021 |
Operating Segments [Member] | Clinical Genomics [Member] | |||||||
Revenues | [1] | 12,546 | 15,585 | 41,464 | 48,525 | ||
Operating Segments [Member] | Biopharmaceutical Development [Member] | |||||||
Revenues | [1] | 9,430 | 11,646 | 28,526 | 34,757 | ||
Operating Segments [Member] | Calibration Solutions [Member] | |||||||
Revenues | [1] | 12,159 | 10,773 | 34,948 | 32,186 | ||
Operating Segments [Member] | Consumables [Member] | Transferred at Point in Time [Member] | Sterilization and Disinfection Control [Member] | |||||||
Revenues | 16,832 | [2] | 14,307 | 45,288 | [2] | 41,239 | |
Operating Segments [Member] | Consumables [Member] | Transferred at Point in Time [Member] | Clinical Genomics [Member] | |||||||
Revenues | 9,758 | 10,885 | 28,490 | 34,815 | |||
Operating Segments [Member] | Consumables [Member] | Transferred at Point in Time [Member] | Biopharmaceutical Development [Member] | |||||||
Revenues | 4,080 | 3,584 | 12,753 | 11,248 | |||
Operating Segments [Member] | Consumables [Member] | Transferred at Point in Time [Member] | Calibration Solutions [Member] | |||||||
Revenues | 539 | 553 | 1,834 | 2,272 | |||
Operating Segments [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | Sterilization and Disinfection Control [Member] | |||||||
Revenues | 180 | [2] | 95 | 381 | [2] | 619 | |
Operating Segments [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | Clinical Genomics [Member] | |||||||
Revenues | 1,639 | 3,371 | 9,540 | 9,349 | |||
Operating Segments [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | Biopharmaceutical Development [Member] | |||||||
Revenues | 2,672 | 5,844 | 7,838 | 16,656 | |||
Operating Segments [Member] | Hardware and Software [Member] | Transferred at Point in Time [Member] | Calibration Solutions [Member] | |||||||
Revenues | 8,254 | 7,023 | 22,216 | 18,696 | |||
Operating Segments [Member] | Service [Member] | Transferred at Point in Time [Member] | Sterilization and Disinfection Control [Member] | |||||||
Revenues | 2,326 | [2] | 1,881 | 6,676 | [2] | 6,163 | |
Operating Segments [Member] | Service [Member] | Transferred at Point in Time [Member] | Clinical Genomics [Member] | |||||||
Revenues | 1,149 | 1,329 | 3,434 | 4,361 | |||
Operating Segments [Member] | Service [Member] | Transferred at Point in Time [Member] | Biopharmaceutical Development [Member] | |||||||
Revenues | 2,678 | 2,218 | 7,935 | 6,853 | |||
Operating Segments [Member] | Service [Member] | Transferred at Point in Time [Member] | Calibration Solutions [Member] | |||||||
Revenues | $ 3,366 | $ 3,197 | $ 10,898 | $ 11,218 | |||
[1]Intersegment revenues are not significant and are eliminated to arrive at consolidated totals.[2]Revenues from GKE GmbH and SAL GmbH are included in the Sterilization and Disinfection Control division beginning upon acquisition on October 16, 2023. |
Note 3 - Revenue - Revenues Fro
Note 3 - Revenue - Revenues From External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | $ 53,473 | $ 54,287 | $ 157,283 | $ 163,489 |
UNITED STATES | ||||
Revenues | 25,595 | 28,645 | 79,205 | 88,756 |
CHINA | ||||
Revenues | 4,942 | 7,482 | 18,584 | 18,659 |
Other [Member] | ||||
Revenues | $ 22,936 | $ 18,160 | $ 59,494 | $ 56,074 |
Note 3 - Revenue - Contract Lia
Note 3 - Revenue - Contract Liabilities (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2023 USD ($) | |
Contract liabilities, balance | $ 16,098 |
Prior year liabilities recognized in revenues during the nine months ended December 31, 2023 | (6,858) |
Contract liabilities added during the nine months ended December 31, 2023, net of revenues recognized | 5,478 |
Contract liabilities, balance | $ 14,718 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements (Details Textual) $ in Thousands | 9 Months Ended | ||||
Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Nov. 17, 2022 USD ($) | Aug. 12, 2019 | |
Belyntic Acquisition [Member] | Other Long-term Liabilities [Member] | |||||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 1,067 | $ 1,500 | $ 1,500 | ||
Senior Notes [Member] | The Notes [Member] | |||||
Long-term Debt, Gross | $ 172,500 | $ 172,500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% | 1.375% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Number of Major Customers | 0 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Fair Value and Carrying Value of the Notes (Details) - Senior Notes [Member] - USD ($) $ in Thousands | Dec. 30, 2023 | Mar. 31, 2023 |
Reported Value Measurement [Member] | ||
Notes | $ 170,965 | $ 170,272 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes | $ 158,916 | $ 161,072 |
Note 5 - Supplemental Balance_3
Note 5 - Supplemental Balance Sheets Information - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Raw materials | $ 19,169 | $ 20,064 |
Work in process | 1,155 | 617 |
Finished goods | 15,649 | 13,961 |
Total inventories | $ 35,973 | $ 34,642 |
Note 5 - Supplemental Balance_4
Note 5 - Supplemental Balance Sheets Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Prepaid expenses | $ 3,271 | $ 2,498 |
Deposits | 2,143 | 1,376 |
Prepaid income taxes | 8,176 | 953 |
Other current assets | 4,545 | 4,045 |
Total prepaid expenses and other | $ 18,135 | $ 8,872 |
Note 5 - Supplemental Balance_5
Note 5 - Supplemental Balance Sheets Information - Accrued Payroll and Benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Bonus payable | $ 3,757 | $ 4,461 |
Wages and paid-time-off payable | 3,150 | 2,329 |
Payroll related taxes | 1,998 | 1,982 |
Other benefits payable | 475 | 661 |
Total accrued payroll and benefits | $ 9,380 | $ 9,433 |
Note 5 - Supplemental Balance_6
Note 5 - Supplemental Balance Sheets Information - Other Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Accrued business taxes | $ 6,744 | $ 5,941 |
Current operating lease liabilities | 3,135 | 2,868 |
Income taxes payable | 1,809 | 992 |
Other | 4,204 | 2,297 |
Total other accrued expenses | $ 15,892 | $ 12,098 |
Note 6 - Goodwill and Intangi_3
Note 6 - Goodwill and Intangible Assets, Net - Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Gross carrying amount | $ 368,444 | $ 328,990 |
Accumulated amortization | (135,670) | (112,175) |
Net carrying amount | 232,774 | 216,815 |
Customer Relationships [Member] | ||
Gross carrying amount | 265,408 | 238,247 |
Accumulated amortization | (102,518) | (86,058) |
Net carrying amount | 162,890 | 152,189 |
Intellectual Property [Member] | ||
Gross carrying amount | 71,169 | 65,950 |
Accumulated amortization | (25,416) | (19,550) |
Net carrying amount | 45,753 | 46,400 |
Other Intangible Assets [Member] | ||
Gross carrying amount | 31,867 | 24,793 |
Accumulated amortization | (7,736) | (6,567) |
Net carrying amount | $ 24,131 | $ 18,226 |
Note 6 - Goodwill and Intangi_4
Note 6 - Goodwill and Intangible Assets, Net - Amortization Expense for Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Amortization of acquisition-related intangibles | $ 7,975 | $ 7,147 | $ 22,380 | $ 21,573 |
Cost of Sales [Member] | ||||
Amortization of acquisition-related intangibles | 1,883 | 1,695 | 5,367 | 5,094 |
General and Administrative Expense [Member] | ||||
Amortization of acquisition-related intangibles | $ 6,092 | $ 5,452 | $ 17,013 | $ 16,479 |
Note 6 - Goodwill and Intangi_5
Note 6 - Goodwill and Intangible Assets, Net - Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Remainder of 2024 | $ 8,389 |
2025 | 32,663 |
2026 | 31,857 |
2027 | 31,200 |
2028 | $ 30,587 |
Note 6 - Goodwill and Intangi_6
Note 6 - Goodwill and Intangible Assets, Net - Change in the Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill | $ 286,444 |
Effect of foreign currency translation | 4,428 |
Goodwill related to GKE acquisition | 54,470 |
Measurement period adjustment, Belyntic Acquisition | 841 |
Goodwill | 346,183 |
Sterilization and Disinfection Control [Member] | Operating Segments [Member] | |
Goodwill | 29,559 |
Effect of foreign currency translation | 2,460 |
Goodwill related to GKE acquisition | 54,470 |
Measurement period adjustment, Belyntic Acquisition | 0 |
Goodwill | 86,489 |
Clinical Genomics [Member] | Operating Segments [Member] | |
Goodwill | 135,811 |
Effect of foreign currency translation | (55) |
Goodwill related to GKE acquisition | 0 |
Measurement period adjustment, Belyntic Acquisition | 0 |
Goodwill | 135,756 |
Biopharmaceutical Development [Member] | Operating Segments [Member] | |
Goodwill | 83,857 |
Effect of foreign currency translation | 2,009 |
Goodwill related to GKE acquisition | 0 |
Measurement period adjustment, Belyntic Acquisition | 841 |
Goodwill | 86,707 |
Calibration Solutions [Member] | Operating Segments [Member] | |
Goodwill | 37,217 |
Effect of foreign currency translation | 14 |
Goodwill related to GKE acquisition | 0 |
Measurement period adjustment, Belyntic Acquisition | 0 |
Goodwill | $ 37,231 |
Note 7 - Indebtedness (Details
Note 7 - Indebtedness (Details Textual) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Mar. 05, 2021 USD ($) | Aug. 12, 2019 USD ($) $ / shares | Jan. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Oct. 05, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Long-Term Line of Credit | $ 62,000 | $ 62,000 | $ 13,000 | ||||
Senior Secured Credit Agreement [Member] | |||||||
Debt Instrument, Covenant, Maximum Total Leverage Ratio for the Fifth, Sixth, Seventh, and Eighth Testing Dates | 4.5 | ||||||
Debt Instrument, Covenant, Maximum Conditional Total Leverage Ratio Following an Acquisition | 5.75 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.20% | 7.20% | |||||
Proceeds from Lines of Credit | $ 71,000 | ||||||
Repayments of Lines of Credit | $ 9,000 | ||||||
Long-Term Line of Credit | $ 62,000 | $ 62,000 | |||||
Senior Secured Credit Agreement [Member] | Subsequent Event [Member] | |||||||
Repayments of Lines of Credit | $ 4,000 | ||||||
Senior Secured Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | ||||||
Senior Secured Credit Agreement [Member] | Maximum [Member] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | ||||||
Senior Secured Credit Agreement [Member] | Maximum [Member] | Swingline Loan [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||||||
Senior Secured Credit Agreement [Member] | Maximum [Member] | Letter of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500 | ||||||
Senior Secured Credit Agreement [Member] | Maximum [Member] | The Credit Facility Term Loan [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | $ 125,000 | |||||
Senior Secured Credit Agreement [Member] | Minimum [Member] | |||||||
Fixed Charge Coverage Ratio | 1.25 | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | ||||||
Senior Secured Credit Agreement [Member] | Minimum [Member] | The Credit Facility Term Loan [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | ||||||
The Notes [Member] | Senior Notes [Member] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.90% | 1.90% | |||||
Debt Instrument, Face Amount | $ 172,500 | ||||||
Proceeds from Convertible Debt | $ 167,056 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% | 1.375% | 1.375% | ||||
Debt Instrument, Convertible, Conversion Ratio Per 1,000 Principal | 3.5273 | ||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 283.5 |
Note 7 - Indebtedness - Carryin
Note 7 - Indebtedness - Carrying Amount of the Notes (Details) - The Notes [Member] - Senior Notes [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Principal outstanding | $ 172,500 | $ 172,500 |
Unamortized debt issuance costs | (1,535) | (2,228) |
Net carrying value | $ 170,965 | $ 170,272 |
Note 7 - Indebtedness - Interes
Note 7 - Indebtedness - Interest Expense on the Notes (Details) - The Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Coupon interest expense at 1.375% | $ 593 | $ 593 | $ 1,779 | $ 1,779 |
Amortization of debt issuance costs | 231 | 227 | 692 | 679 |
Total interest and amortization of debt issuance costs | $ 824 | $ 820 | $ 2,471 | $ 2,458 |
Note 8 - Stockholders' Equity_2
Note 8 - Stockholders' Equity (Details Textual) - The FY24 PSUs [Member] - Eligible Employees [Member] shares in Thousands | 9 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | shares | 32 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 132.29 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Earned, Maximum Adjustment Percentage | 20% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award Number of Shares Issued Upon Vesting, Percentage | 0% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award Number of Shares Issued Upon Vesting, Percentage | 200% |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Allocation of Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-based compensation expense | $ 2,993 | $ 2,056 | $ 9,144 | $ 9,859 |
Amount of income tax expense (benefit) recognized in earnings | 210 | 226 | 727 | (1,855) |
Stock-based compensation expense, net of tax | $ 3,203 | $ 2,282 | $ 9,871 | $ 8,004 |
Note 8 - Stockholders' Equity_3
Note 8 - Stockholders' Equity - Stock Option and Non-vested Stock Award Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | |
Options outstanding (in shares) | shares | 163 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 200.62 | |
Outstanding, Weighted- Average Remaining Contractual Life (Year) | 3 years 6 months | 3 years 3 months 18 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 0 | $ 1,643 |
Options granted (in shares) | shares | 53 | |
Awards granted, weighted average exercise price (in dollars per share) | $ / shares | $ 131.67 | |
Options forfeited or expired (in shares) | shares | (17) | |
Awards forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | $ 208.03 | |
Awards exercised (in shares) | shares | (2) | |
Awards exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 132.4 | |
Options outstanding (in shares) | shares | 197 | 163 |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 182.12 | $ 200.62 |
Note 8 - Stockholders' Equity_4
Note 8 - Stockholders' Equity - Restricted Stock Unit Activity (Details) | 9 Months Ended | |
Dec. 31, 2023 $ / shares shares | ||
Restricted Stock Units (RSUs) [Member] | ||
Outstanding as of March 31, 2023(1) (in shares) | shares | 57 | [1] |
Outstanding as of March 31, 2023(1) (in dollars per share) | $ / shares | $ 209.27 | [1] |
Awards granted(1) (in shares) | shares | 54 | [1] |
Awards granted(1) (in dollars per share) | $ / shares | $ 134.03 | [1] |
Awards forfeited (in shares) | shares | (5) | |
Awards forfeited (in dollars per share) | $ / shares | $ 171.83 | |
Awards distributed (in shares) | shares | (27) | |
Awards distributed, weighted average grant date fair value per share (in dollars per share) | $ / shares | $ 212.36 | |
Outstanding as of December 31, 2023(1) (in shares) | shares | 79 | [1],[2] |
Outstanding as of December 31, 2023(1) (in dollars per share) | $ / shares | $ 158.94 | [1] |
Performance Stock Units [Member] | ||
Outstanding as of March 31, 2023(1) (in shares) | shares | 44 | [1] |
Outstanding as of March 31, 2023(1) (in dollars per share) | $ / shares | $ 286.02 | [1] |
Awards granted(1) (in shares) | shares | 32 | [1] |
Awards granted(1) (in dollars per share) | $ / shares | $ 132.29 | [1] |
Awards forfeited (in shares) | shares | 0 | |
Awards forfeited (in dollars per share) | $ / shares | $ 0 | |
Awards distributed (in shares) | shares | 0 | |
Awards distributed, weighted average grant date fair value per share (in dollars per share) | $ / shares | $ 0 | |
Outstanding as of December 31, 2023(1) (in shares) | shares | 76 | [1],[2] |
Outstanding as of December 31, 2023(1) (in dollars per share) | $ / shares | $ 223.07 | [1] |
[1]Balances for PSUs are reflected at target.[2]During the nine months ended December 31, 2022, the fiscal year 2020 PSUs vested and were distributed at 126% of target, based on actual performance results and completion of service conditions. |
Note 9 - Net Earnings Per Sha_3
Note 9 - Net 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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Net income | $ 2,116 | $ 451 | $ 337 | $ 319 |
Weighted average outstanding shares of common stock (in shares) | 5,393 | 5,339 | 5,384 | 5,312 |
Fully diluted shares (in shares) | 5,396 | 5,360 | 5,394 | 5,354 |
Basic earnings per share (in dollars per share) | $ 0.39 | $ 0.08 | $ 0.06 | $ 0.06 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 0.08 | $ 0.06 | $ 0.06 |
Share-Based Payment Arrangement, Option [Member] | ||||
Dilutive effect of shares (in shares) | 0 | 17 | 1 | 28 |
Restricted Stock Units (RSUs) [Member] | ||||
Dilutive effect of shares (in shares) | 3 | 4 | 9 | 14 |
Note 9 - Net Earnings Per Sha_4
Note 9 - Net Earnings Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Total stock awards excluded from diluted EPS (in shares) | 942 | 833 | 877 | 818 |
Assumed Conversion of Convertible Debt [Member] | ||||
Total stock awards excluded from diluted EPS (in shares) | 608 | 608 | 608 | 608 |
Stock Awards that were Antidilutive [Member] | ||||
Total stock awards excluded from diluted EPS (in shares) | 277 | 176 | 223 | 159 |
Stock Awards Subject to Performance Conditions [Member] | ||||
Total stock awards excluded from diluted EPS (in shares) | 57 | 49 | 46 | 51 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Percent | 8.70% | 76.50% | 207.50% | 384.80% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||||
Oct. 16, 2023 | Dec. 31, 2023 | Jan. 17, 2024 | Dec. 31, 2022 | Nov. 17, 2022 | |
Belyntic Acquisition [Member] | |||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 188 | ||||
Belyntic Acquisition [Member] | Subsequent Event [Member] | |||||
Business Combination, Contingent Consideration, Liability, Current | $ 563 | ||||
Belyntic Acquisition [Member] | Other Long-term Liabilities [Member] | |||||
Business Combination, Contingent Consideration, Liability, Noncurrent | 1,067 | $ 1,500 | $ 1,500 | ||
GKE Acquisition [Member] | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 9,500 | $ 9,500 |
Note 12 - Segment Information_2
Note 12 - Segment Information (Details Textual) - GKE Acquisition [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Oct. 16, 2023 | [1] |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 4,077 | $ 3,823 | |
Business Combination, Fair Value Amortization, Inventory | $ 412 | ||
[1]Includes $1,507 of preliminary inventory step up, which we expect to amortize within approximately three fiscal quarters from the acquisition date. During the period from October 16, 2023 to December 31, 2023, $412 of inventory step up amortization was recorded to cost of revenues. Preliminary accounting for the fair value step up of GKE China's inventory is incomplete due to the recent closing date. |
Note 12 - Segment Information -
Note 12 - Segment Information - Operating Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||||
Revenues | $ 53,473 | $ 54,287 | $ 157,283 | $ 163,489 | |||
Gross profit (loss) | 33,402 | 32,765 | 96,694 | 100,492 | |||
Operating expense | 33,469 | 29,363 | 97,485 | 97,689 | |||
Operating (loss) income | (67) | 3,402 | (791) | 2,803 | |||
Nonoperating (income) expense, net | 2,013 | (1,486) | 475 | (2,915) | |||
Operating Segments [Member] | |||||||
Gross profit (loss) | 33,453 | 32,758 | 96,755 | 100,520 | |||
Operating expense | 33,469 | 29,363 | 97,485 | 97,689 | |||
Operating (loss) income | (67) | 3,402 | (791) | 2,803 | |||
Nonoperating (income) expense, net | (2,013) | 1,486 | (475) | 2,915 | |||
Earnings (loss) before income taxes | 1,946 | 1,916 | (316) | (112) | |||
Operating Segments [Member] | Sterilization and Disinfection Control [Member] | |||||||
Revenues | [1] | 19,338 | [2] | 16,283 | 52,345 | [2] | 48,021 |
Gross profit (loss) | 13,951 | 11,614 | 38,018 | 34,581 | |||
Operating Segments [Member] | Clinical Genomics [Member] | |||||||
Revenues | [1] | 12,546 | 15,585 | 41,464 | 48,525 | ||
Gross profit (loss) | 6,449 | 8,045 | 20,904 | 26,535 | |||
Operating Segments [Member] | Biopharmaceutical Development [Member] | |||||||
Revenues | [1] | 9,430 | 11,646 | 28,526 | 34,757 | ||
Gross profit (loss) | 5,841 | 7,359 | 17,783 | 21,993 | |||
Operating Segments [Member] | Calibration Solutions [Member] | |||||||
Revenues | [1] | 12,159 | 10,773 | 34,948 | 32,186 | ||
Gross profit (loss) | 7,212 | 5,740 | 20,050 | 17,411 | |||
Corporate, Non-Segment [Member] | |||||||
Revenues | [1],[3] | $ (51) | $ 7 | $ (61) | $ (28) | ||
[1]Intersegment revenues are not significant and are eliminated to arrive at consolidated totals.[2]Revenues from GKE GmbH and SAL GmbH are included in the Sterilization and Disinfection Control division beginning upon acquisition on October 16, 2023.[3]Unallocated corporate expenses and other business activities are reported within Corporate and Other. |
Note 12 - Segment Information_3
Note 12 - Segment Information - Segment Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Total inventories | $ 35,973 | $ 34,642 |
Operating Segments [Member] | Sterilization and Disinfection Control [Member] | ||
Total inventories | 7,593 | 3,492 |
Operating Segments [Member] | Clinical Genomics [Member] | ||
Total inventories | 11,529 | 13,985 |
Operating Segments [Member] | Biopharmaceutical Development [Member] | ||
Total inventories | 8,183 | 8,384 |
Operating Segments [Member] | Calibration Solutions [Member] | ||
Total inventories | $ 8,668 | $ 8,781 |