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

MINNETONKA, Minn., Nov. 12, 2019 /PRNewswire/ -- Electro-Sensors, Inc. (ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the third quarter ended September 30, 2019.

  • Quarterly revenue of $2,049,000, down 4.5% from prior year quarter
  • Year-to-date revenue of $6,317,000, up 12% from similar prior year period
  • Cash and investments of approximately $8.9 million

Selected Financial Information (unaudited; in thousands, except per share data)


Q3 2019

Q3 2018

Change

Net Sales


$

2,049


$

2,146


-4.5%


Gross Margin



52.4%



55.7%


-330 bps


Operating Income (Loss)


$

(18)


$

199


-109.0%


Operating Income (Loss) Margin



(0.9)%



9.3%


-1020 bps


Income Before Income Taxes


$

25


$

237


-89.5%


Earnings Per Share (diluted)


$

.01


$

.06


-83.3%


Net sales in the second quarter decreased 4.5% to $2,049,000 from $2,146,000 in the prior-year quarter.  For the first nine months of 2019, net sales increased 12.0% to $6,317,000 from $5,642,000 for the first nine months of the prior year.  The year-to-date increase is primarily due to increased sales of HazardPROTM wireless hazard monitoring systems.  In addition, international sales increased 51% for the nine-month period, primarily driven by sales into Canada.

"We are very encouraged by the sales growth of HazardPRO wireless systems," said David L. Klenk, Electro-Sensors' president. "We continue to believe these systems deliver the most advanced hazard monitoring solution at a very competitive overall price point."

A full analysis of results for the period ended September 30, 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.

Statements of Income (Loss)

For the Three and Nine Months Ended September 30, 2019 and 2018 (unaudited)

(in thousands except share and per share amounts)



Three Months Ended September 30,


2019


2018


Sales

$

2,049


$

2,146


Cost of goods sold


975



951


Gross profit


1,074



1,195









Operating expenses


1,092



996









Operating income (loss)


(18)



199









Non-operating income, net


43



38









Income before income taxes


25



237









Provision for income taxes


6



50









Net income

$

19


$

187









Earnings per share – diluted

$

0.01


$

0.06


Average shares outstanding - diluted


3,398,533



3,398,238


 


Nine Months Ended September 30,


2019


2018


Sales

$

6,317


$

5,642


Cost of goods sold


2,941



2,559


Gross profit


3,376



3,083









Operating expenses


3,392



3,240









Operating income (loss)


(16)



(157)









Non-operating income, net


132



90









Income (loss) before income taxes


116



(67)









Provision for (benefit from) income taxes


25



(9)









Net income (loss)

$

91


$

(58)









Earnings (loss) per share – diluted

$

0.03


$

(0.02)


Average shares outstanding - diluted


3,397,385



3,395,521


 

Electro-Sensors, Inc.

Balance Sheets

September 30, 2019 and December 31, 2018

(in thousands)



September 30,


December 31,



2019


2018


Assets

(unaudited)











Current Assets







Cash and investments

$

8,903


$

8,799


Trade receivables, net


965



896


Inventories


1,719



1,618


Other current assets


194



155


Total current assets


11,781



11,468









Deferred income tax asset, long-term


196



192


Intangible assets, net


555



565


Property and equipment, net


1,063



1,050


Total assets

$

13,595


$

13,275









Liabilities and Stockholders' Equity














Current Liabilities







Current maturities of financing lease

$

5


$

5


Accounts payable and accrued expenses


736



521


Total current liabilities


741



526









Long-term liabilities







Financing lease, net of current maturities


20



24


Total long-term liabilities


20



24









Stockholders' equity







Common stock


339



339


Additional paid-in capital


2,027



2,019


Retained earnings


10,426



10,335


Other comprehensive income


42



32


Total stockholders' equity


12,834



12,725









Total liabilities and stockholders' equity

$

13,595


$

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

 

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