MINNETONKA, Minn., Nov. 14,
2022 /PRNewswire/ -- Electro-Sensors, Inc.
(NASDAQ: ELSE), a leading global provider of machine monitoring
sensors and hazard monitoring systems, today announced financial
results for the third quarter ended September 30, 2022.
- Third quarter revenue of $2,216,000, up 2.9% from prior-year
period
- Gross margin of 52.5%
- Cash and investments of approximately $9.6 million
Selected Financial Information (unaudited; in thousands, except
per share data)
|
Q3
2022
|
Q3
2021
|
Change
|
|
Net Sales
|
|
$
|
2,216
|
|
$
|
2,154
|
|
2.9
|
%
|
|
Gross Margin
|
|
|
52.5
|
%
|
|
55.9
|
%
|
-340
|
bps
|
|
Operating
Income
|
|
$
|
119
|
|
$
|
20
|
|
495.0
|
%
|
|
Operating Income
Margin
|
|
|
5.4
|
%
|
|
0.9
|
%
|
450
|
bps
|
|
Income Before Income
Taxes
|
|
$
|
154
|
|
$
|
21
|
|
633.3
|
%
|
|
Earnings Per Share
(diluted)
|
|
$
|
0.04
|
|
$
|
0.00
|
|
100.0
|
%
|
Net sales in the third quarter increased 2.9% to $2,216,000 from $2,154,000 in the prior-year quarter. For
the first nine months of 2022, net sales increased 6.1% to
$6,915,000 from $6,517,000 for the first nine months of the prior
year. The increase in net sales for the quarter was primarily
due to increased sales of HazardPRO wireless hazard monitoring
systems. The increase for the nine month-period was primarily
a result of increased domestic sales of traditional wired products
for industrial automation and agricultural applications.
Gross margin for the 2022 nine-month period was 54.0%, down
slightly from 54.8% in the corresponding nine months in 2021,
primarily due to an increase in raw material costs across all
product lines.
"Our third quarter revenue represents another solid quarter,
with revenue growing 2.9% over the comparable prior-year period,"
said David L. Klenk,
Electro-Sensors' president. "While the macroeconomic environment
has certainly become more challenging in recent quarters, our
results demonstrate continued success in providing industry-leading
sensors and hazard monitoring systems to customers for a broad
range of applications."
A full analysis of results for the period ended September 30, 2022 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
For the Three and
Nine Months Ended September 30, 2022 and 2021
(unaudited)
(in thousands except share and per share
amounts)
|
|
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
|
|
Sales
|
$
|
2,216
|
|
$
|
2,154
|
|
|
Cost of goods
sold
|
|
1,053
|
|
|
950
|
|
|
Gross profit
|
|
1,163
|
|
|
1,204
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
1,044
|
|
|
1,184
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
119
|
|
|
20
|
|
|
|
|
|
|
|
|
|
Non-operating
income
|
|
35
|
|
|
1
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
154
|
|
|
21
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
32
|
|
|
4
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
122
|
|
$
|
17
|
|
|
|
|
|
|
|
|
|
Earnings per share –
diluted
|
$
|
0.04
|
|
$
|
0.00
|
|
|
Average shares
outstanding - diluted
|
|
3,482,996
|
|
|
3,439,377
|
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
|
Sales
|
$
|
6,915
|
|
$
|
6,517
|
|
|
Cost of goods
sold
|
|
3,178
|
|
|
2,947
|
|
|
Gross profit
|
|
3,737
|
|
|
3,570
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
3,997
|
|
|
3,283
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(260)
|
|
|
287
|
|
|
|
|
|
|
|
|
|
Non-operating
income
|
|
43
|
|
|
3
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
(217)
|
|
|
290
|
|
|
|
|
|
|
|
|
|
Provision for (benefit
from) income taxes
|
|
(46)
|
|
|
61
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(171)
|
|
$
|
229
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share – diluted
|
$
|
(0.05)
|
|
$
|
0.07
|
|
|
Average shares
outstanding - diluted
|
|
3,397,664
|
|
|
3,435,595
|
|
|
Electro-Sensors,
Inc.
Balance Sheets
September 30, 2022 and
December 31, 2021
(in thousands)
|
|
|
September
30,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
|
Assets
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and
investments
|
$
|
9,574
|
|
$
|
9,769
|
|
|
Trade receivables,
net
|
|
1,180
|
|
|
1,005
|
|
|
Inventories
|
|
1,790
|
|
|
1,663
|
|
|
Other current
assets
|
|
231
|
|
|
191
|
|
|
Total current
assets
|
|
12,775
|
|
|
12,628
|
|
|
|
|
|
|
|
|
|
Deferred income tax
asset, long-term
|
|
223
|
|
|
208
|
|
|
Intangible assets,
net
|
|
0
|
|
|
38
|
|
|
Property and
equipment, net
|
|
955
|
|
|
1,017
|
|
|
Total assets
|
$
|
13,953
|
|
$
|
13,891
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Current maturities of
financing lease
|
$
|
7
|
|
$
|
6
|
|
|
Accounts payable and
accrued expenses
|
|
893
|
|
|
691
|
|
|
Total current
liabilities
|
|
900
|
|
|
697
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
Financing lease, net
of current maturities
|
|
1
|
|
|
6
|
|
|
Total long-term
liabilities
|
|
1
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Common
stock
|
|
340
|
|
|
339
|
|
|
Additional paid-in
capital
|
|
2,075
|
|
|
2,041
|
|
|
Retained
earnings
|
|
10,637
|
|
|
10,808
|
|
|
Total stockholders'
equity
|
|
13,052
|
|
|
13,188
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
13,953
|
|
$
|
13,891
|
|
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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SOURCE Electro-Sensors, Inc.