MESA LABORATORIES INC /CO/ Segments Disclosure

Note 14. Segment Data

 

Segment information is prepared on the same basis that our chief operating decision maker, our CEO, uses to manage our segments, evaluate financial results, and make key operating decisions. Our four reportable segments are organized primarily by the nature of the goods and services they sell. The CODM uses segment revenue, organic revenues growth (non-GAAP), and gross profit to allocate resources and to assess the performance of our segments. Monthly, the CODM reviews forecast-to-actual and prior-to-current period variances in segment revenue and in segment gross profit when making decisions to allocate capital and personnel to the segments. Our CODM also reviews operating income, adjusted to exclude non-cash items such as depreciation, amortization and stock based compensation, on a consolidated basis to further manage operations. The accounting policies of our operating segments are the same as those described in Note 1. "Description of Business and Summary of Significant Accounting Policies." 

 

The following tables set forth our segment information:

 

		Sterilization and Disinfection Control (d)				Clinical Genomics				Biopharmaceutical Development				Calibration Solutions				Corporate and Other (e)				Total Company
Year Ended March 31, 2025
Revenues (a)		$	93,418			$	47,081			$	48,730			$	51,749			$	-			$	240,978
Less:
Depreciation in cost of revenues			1,419				680				224				837				-				3,160
Amortization in cost of revenues			503				765				1,373				-				-				2,641
Non-cash GKE inventory step-up amortization			1,232				-				-				-				-				1,232
Other cost of revenues (b)			25,604				19,966				17,220				20,275				10				83,075
Total segment cost of revenues			28,758				21,411				18,817				21,112				10				90,108
Gross Profit (c)		$	64,660			$	25,670			$	29,913			$	30,637			$	(10	)		$	150,870
Reconciling items:
Operating expense																						$	134,534
Operating income																							16,336
Nonoperating expense, net																							10,375
Earnings before income taxes																						$	5,961
Year Ended March 31, 2024
Revenues (a)		$	75,124			$	52,588			$	40,712			$	47,763			$	-			$	216,187
Less:
Depreciation in cost of revenues			1,204				937				224				666				-				3,031
Amortization in cost of revenues			266				4,448				1,338				-				-				6,052
Non-cash GKE inventory step-up amortization			1,229				-				-				-				-				1,229
Other cost of revenues (b)			19,123				20,125				13,750				19,550				77				72,625
Total segment cost of revenues			21,822				25,510				15,312				20,216				77				82,937
Gross Profit (c)		$	53,302			$	27,078			$	25,400			$	27,547			$	(77	)		$	133,250
Reconciling items:
Operating expense																						$	405,325
Operating (loss)																							(272,075	)
Nonoperating expense, net																							3,573
(Loss) before income taxes																						$	(275,648	)
Year Ended March 31, 2023
Revenues (a)		$	64,609			$	62,299			$	47,365			$	44,807			$	-			$	219,080
Less:
Depreciation in cost of revenues			818				1,130				314				901				-				3,163
Amortization in cost of revenues			-				5,675				1,121				-				-				6,796
Other cost of revenues (b)			17,271				23,009				15,590				19,518				40				75,428
Total segment cost of revenues			18,089				29,814				17,025				20,419				40				85,387
Gross Profit (c)		$	46,520			$	32,485			$	30,340			$	24,388			$	(40	)		$	133,693
Reconciling items:
Operating expense																						$	130,373
Operating income																							3,320
Nonoperating expense, net																							3,709
(Loss) before income taxes																						$	(389	)

 

	(a)	Intersegment revenues are not significant and are eliminated to arrive at consolidated totals. Revenues as presented are consistent with GAAP measurement principles and our CODM's review of segment information.
	(b)	Other segment cost of revenues for each reportable segment includes product costs, personnel costs (including stock based compensation), and other manufacturing and overhead costs necessary to produce and sell our products and services, excluding depreciation, amortization, and non-cash inventory step-up amortization expenses.
	(c)	Gross profit as presented is consistent with GAAP measurement principles and our CODM's review of segment information.
	(d)	Includes GKE results beginning upon acquisition in fiscal year 2024.
	(e)	Unallocated corporate expenses and other business activities are reported within Corporate and Other. Certain depreciation expense classified reflected in Corporate and Other in fiscal years 2024 and 2023 has been recast to conform to current year presentation.

 

Changes in the Sterilization and Disinfection Control division are primarily attributable to the GKE acquisition consummated in the third quarter of fiscal year 2024. 

 

The following table sets forth net inventories by reportable segment. Our chief operating decision maker is not provided with any other segment asset information. In addition to sales of our products, inventories decreased in fiscal year 2025 primarily due to adjustments to realizable value and amortization of non-cash inventory step-up from the GKE acquisition.

 

		March 31,				March 31,
		2025				2024
Sterilization and Disinfection Control		$	5,545			$	7,014
Clinical Genomics			9,776				11,813
Biopharmaceutical Development			4,934				6,304
Calibration Solutions			5,110				7,544
Total inventories		$	25,365			$	32,675

 

The following table sets forth a summary of long-lived assets by geographic area. Long-lived assets exclude goodwill and intangible assets acquired in a business combination, deferred tax assets and other non-tangible assets. The increase in long-lived assets in Sweden is primarily due to right of use assets associated with a ten-year operating lease that commenced in fiscal year 2025 related to a facility used by our Biopharmaceutical Development division for manufacturing and administrative purposes.  

 

		March 31,				March 31,
		2025				2024
United States		$	29,200			$	32,229
Sweden			11,634				1,271
Germany			6,712				7,596
Other			1,169				1,208
Total long-lived assets		$	48,715			$	42,304

 

Revenues from external customers are attributed to individual countries based upon locations to which the product is shipped or exported, as follows:

 

		Year Ended March 31,
		2025				2024				2023
United States		$	116,615			$	106,395			$	117,281
China			25,312				24,933				25,797
Other			99,051				84,859				76,002
Total revenues		$	240,978			$	216,187			$	219,080

 

No customer accounts for 10% or more of our consolidated revenues. No foreign country other than China exceeds 10% of total revenues.