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Electro-Sensors, Inc. Announces First Quarter 2019 Financial Results

MINNETONKA, Minn., May 13, 2019 /PRNewswire/ -- Electro-Sensors, Inc. (ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the first quarter ended March 31, 2019.

  • Record first quarter revenue of $2,008,000, up 17% from prior-year quarter
  • Gross Margin of 53.1%
  • Cash and investments of approximately $8.7 million

Unaudited; in thousands, except per share data



Q1 FY19


Q1 FY18


Change

Net Sales


$

2,008


$

1,716


17.0

%

Gross Margin



53.1

%


53.4

%

-3

bps

Operating Loss


$

(86)


$

(281)


69.4

%

Operating Loss Margin



(4.3)

%


(16.3)

%

120.0

bps

Loss Before Income Tax Benefit


$

(40)


$

(256)


84.4

%

Loss Per Share (diluted)


$

(.01)


$

(.06)


83.3

%

Net sales for the 2019 first quarter increased 17.0% to $2,008,000 from $1,716,000 in the prior-year quarter.  The increase was primarily driven by an increase in the number of large orders and the greater average value of those orders.

"It was exciting to see customers begin purchasing sensors and monitoring equipment for their spring facility expansion and modernization projects," said David L. Klenk, Electro-Sensors' president. "Furthermore, during the first quarter we shipped our first HazardPRO wireless hazard monitoring system for a frac sand application, a result of our efforts to pursue new and emerging markets for our wireless monitoring systems."

A full analysis of results for the period ended March 31, 2019 is available in the Company's Form 10-Q, 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.

Consolidated Statements of Income

For the Quarter Ended March 31, 2019 and 2018 (unaudited)

(in thousands except share and per share amounts)



Three Months Ended March 31


2019


2018

Sales

$

2,008


$

1,716

Cost of goods sold


941



800

Gross profit


1,067



916







Operating expenses


1,153



1,197







Operating loss


(86)



(281)







Non-operating income


46



25







Loss before income taxes


(40)



(256)







Benefit from income taxes


(9)



(54)







Net loss

$

(31)


$

(202)







Loss per share – diluted

$

(0.01)


$

(0.06)

Average shares outstanding - diluted


3,395,521



3,395,521

 

Electro-Sensors, Inc.

Consolidated Balance Sheets

March 31, 2019 and December 31, 2018

(in thousands)



March 31


December 31


2019


2018

Assets

(unaudited)









Current Assets






Cash and investments

$

8,686


$

8,799

Trade receivables, net


1,075



896

Inventories


1,638



1,618

Other current assets


179



155

Total current assets


11,578



11,468







Deferred income tax asset, long-term


189



192

Intangible assets, net


510



565

Property and equipment, net


1,073



1,050

Total assets

$

13,350


$

13,275



















Liabilities and Stockholders' Equity












Current Liabilities






Current maturities of financing lease

$

5


$

5

Accounts payable and accrued expenses


624



521

Total current liabilities


629



526







Long-term liabilities






Financing lease, net of current maturities


23



24

Total long-term liabilities


23



24







Stockholders' equity






Common stock


339



339

Additional paid-in capital


2,022



2,019

Retained earnings


10,304



10,335

Other comprehensive gain


33



32

Total stockholders' equity


12,698



12,725







Total liabilities and stockholders' equity

$

13,350


$

13,275

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
Facebook: facebook.com/ElectroSensors

Cision

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