MOCON Announces Results for the First Quarter 2013

Before you go, we thought you'd like these...
Before you go close icon

MOCON Announces Results for the First Quarter 2013

MINNEAPOLIS--(BUSINESS WIRE)-- MOCON, Inc. (NAS: MOCO) today reported sales of $14.4 million for the first quarter ended March 31, 2013, an increase of 57 percent compared to $9.2 million for the same quarter in 2012. The main reason for the increase was due to the inclusion of Dansensor's sales in the amount of $5.1 million which were not included in last year's numbers due to the acquisition occurring on April 2, 2012. Sales from our organic business were up slightly over the prior year. The net income for the first quarter was $867,000, or $0.15 per diluted share, compared to net income of $821,000 or $0.14 per diluted share, in the first quarter of 2012. The current quarter income was negatively impacted by a reduced gross profit margin as explained below.

Sales in our Industrial Analyzer segment increased 35 percent in the current quarter compared to the same quarter in 2012 due primarily to strong instrument sales to the environmental monitoring and oil and gas exploration markets. Sales in our Package Testing segment increased dramatically this quarter compared to last year due to the addition of Dansensor's European business and the addition of their product line to our domestic product offerings. Sales in our Permeation segment, which are predominantly foreign, were 15 percent lower in this quarter compared to last year as capital equipment orders in Europe continue to be softer than in past years.


The company-wide gross margin of 55 percent in the first quarter 2013 was lower than the company's historical levels. This was primarily due to a shift in product mix to a higher percentage of our package testing instruments which traditionally carry lower margins and reduced margins in our permeation business as a result of lower volume. Selling, general and administrative expenses and research and development expenses are higher in the first quarter 2013 compared to the same period last year primarily due to the addition of Dansensor's results.

"We are pleased with the progress that's been made with integrating the Dansensor product line as this has positively impacted the domestic sales of our Package Testing product group," said Robert L. Demorest, MOCON President and CEO. "We are committed to continue to evaluate our combined product offerings with the goal of improving our sales and marketing strategies as well as improving profit margins through more efficient manufacturing practices."

About MOCON

MOCON is a leading provider of detectors, instruments, systems and consulting services to research laboratories, production facilities, and quality control and safety departments in the medical, pharmaceutical, food and beverage, packaging, environmental, oil and gas and other industries worldwide. See www.mocon.com for more information.

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements that can be identified by words such as "will," "may," "expect," "believe," "anticipate," "estimate," "continue," or other similar expressions. All forward-looking statements speak only as of the date of this press release. MOCON undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and the markets in which the company competes, there are important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements made in this press release. These factors include, but are not limited to, the integration and performance of Dansensor, the terms of our credit agreement including financial covenants included therein, competition and technological change, setbacks in product development programs, order cancellations, dependence on certain key industries, and other factors set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2012 and other documents MOCON files with or furnishes to the Securities and Exchange Commission.

MOCON's shares are traded on the NASDAQ Global Market System under the symbol MOCO.
MOCON is a registered trademark of MOCON, Inc.; other trademarks are those of their respective holders.

 

MOCON, INC.

SUMMARY CONSOLIDATED FINANCIAL DATA
(in Thousands, Except Per Share Data)
  

INCOME STATEMENT DATA: (unaudited)

Quarters Ended March 31,
20132012
Sales
Products$13,742$8,516
Consulting services 705  667
Total sales 14,447  9,183
 
Cost of sales
Products6,0082,995
Consulting services 462  379
Total cost of sales 6,470  3,374
 
Gross profit7,9775,809
 
Selling, general and administrative expenses5,6033,778
Research and development expenses 1,119  733
Operating income1,2551,298
 
Other income (expense), net (104) 18
Income before income taxes1,1511,316
 
Income tax expense 284  495
 
NET INCOME$867 $821
 
Net income per common share:
Basic$0.16$0.15
Diluted$0.15$0.14
 
Weighted average common shares outstanding:
Basic5,5215,450
Diluted5,6775,692
 

BALANCE SHEET DATA: (unaudited)

March 31, 2013December 31, 2012
Assets:
Cash and marketable securities$6,979$7,911
Accounts receivable, net10,69510,652
Inventories6,2476,345
Other current assets 2,278  2,005
Total current assets26,19926,913
Marketable securities, noncurrent--210
Property, plant and equipment, net5,7275,350
Investment in affiliated company3,2043,304
Goodwill, intangibles and other assets 20,856  21,443
 
Total assets$55,986 $57,220
 
Liabilities and Stockholders' Equity:
Revolving lines of credit$4,581$5,328
Notes payable, current2,5122,566
Other current liabilities8,9068,600
Total noncurrent liabilities6,4196,845
Stockholders' equity 33,568  33,881
 
Total liabilities and stockholders' equity$55,986 $57,220



MOCON, Inc.
Darrell Lee, CFO/VP, 763-493-6370
www.mocon.com

KEYWORDS:   United States  North America  Minnesota

INDUSTRY KEYWORDS:

The article MOCON Announces Results for the First Quarter 2013 originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners