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Electro-Sensors, Inc. Announces 2018 Year End Financial Results

MINNETONKA, Minn., March 21, 2019 /PRNewswire/ -- Electro-Sensors, Inc. (ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the year ended December 31, 2018.

  • Revenue of $7.5 million
  • Gross margin of 54.0%
  • Cash and investments of $8.8 million

In thousands, except per share data



FY18


FY17


Change

Net Sales


$

7,495


$

7,840


-4.4

%

Gross Margin



54.0

%


54.8

%

-80

bps

Operating Income (Loss)


$

(145)


$

410


-135.4

%

Operating Income (Loss) Margin



(1.9)

%


5.2

%

-710

bps

Income (Loss) Before Income Taxes


$

(18)


$

458


-103.9

%

Earnings (Loss) Per Share (diluted)


$

0.00


$

0.09


-100.0

%

Net sales during 2018 decreased 4.4% to $7,495,000 from $7,840,000 in the prior year.  The decrease was due primarily to a decrease in all product lines and geographies, as we saw general softness in our primary markets.

International markets provided approximately 11% of our 2018 revenue from shipments into 27 countries.

"In 2018 we celebrated our 50th anniversary of providing industry leading machine monitoring sensors and hazard monitoring systems," said David L. Klenk, Electro-Sensors' president.  "While this is an impressive milestone, we are even more encouraged about the years to come as we continue to enhance our product portfolio and pursue exciting new markets."

A full analysis of results for the year ended December 31, 2018 is available in the Company's Form 10-K, which is available on the Company's website at www.electro-sensors.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.

Electro-Sensors, Inc.

Statements of Income

For the Years Ended December 31, 2018 and 2017

(in thousands except share and per share amounts)



Years Ended December 31,


2018


2017


Sales

$

7,495


$

7,840


Cost of goods sold


3,448



3,541


Gross profit


4,047



4,299









Operating expenses


4,192



3,889









Operating income (loss)


(145)



410









Non-operating income, net


127



48









Income (loss) before income taxes


(18)



458









Income tax expense (benefit)


(8)



163









Net income (loss)

$

(10)


$

295









Earnings (loss) per share – diluted

$

0.00


$

0.09


Average shares outstanding - diluted


3,395,521



3,401,017


 

Electro-Sensors, Inc.

Balance Sheets

December 31, 2018 and 2017

(in thousands)



December 31



2018


2017


Assets












Current Assets







Cash and investments

$

8,799


$

8,719


Trade receivables, net


896



902


Inventories


1,618



1,552


Other current assets


155



186


Total current assets


11,468



11,359









Deferred income tax asset


192



182


Intangible assets, net


565



800


Property and equipment, net


1,050



1,074


Total assets

$

13,275


$

13,415









Liabilities and Stockholders' Equity














Current Liabilities







Contingent earn-out

$

0


$

150


Current maturity of financing lease


5



0


Accounts payable and accrued expenses


521



558


Total current liabilities


526



708









Long-term liabilities







Financing lease, net of current maturities


24



0


Total long-term liabilities


24



0









Stockholders' equity







Common stock


339



339


Additional paid-in capital


2,019



2,004


Retained earnings


10,335



10,352


Other comprehensive gain


32



12


Total stockholders' equity


12,725



12,707









Total liabilities and stockholders' equity

$

13,275


$

13,415


About Electro-Sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and wireless/wired hazard monitoring systems applied across multiple industries and applications. These products improve processes by protecting people, safeguarding systems, reducing downtime, and preventing waste. Most standard products ship within one to two days and have an industry-leading 5-year warranty. Electro-Sensors is proud to be an ISO9001:2015 quality certified company and is committed to providing excellent customer service and technical support. Founded in 1968 and located in Minnetonka, Minnesota, Electro-Sensors provides its loyal customers with reliable products that improve safety and help plants operate with greater efficiency, productivity and control.

Cautionary Statement Regarding Forward Looking Statements

This press release may include statements about possible or anticipated future financial performance, business activities, plans, or opportunities.  These forward-looking statements may include the words "will," "should," "believes," "expects," "anticipates," "intends" or similar expressions.  For these forward-looking statements, the Company claims the protection of the safe harbor for forward−looking statements contained in federal securities laws.  Forward-looking statements reflect the company's current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact.  These forward-looking statements are subject to a number of factors, risks and uncertainties, including those disclosed in our periodic filings with the SEC that could cause actual performance, activities, plans, or opportunities after the date the statements are made to differ significantly from those indicated in the forward-looking statements.

For more information please visit our website at: www.electro-sensors.com. Also look us up on:
LinkedIn: linkedin.com/company/electro-sensors-inc-
Twitter: twitter.com/ESIsensors
Google+: google.com/+Electro-sensors
Facebook: facebook.com/ElectroSensors

 

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