Electro-Sensors, Inc. Announces Third Quarter 2017 Financial Results
MINNETONKA, Minn., Nov. 13, 2017 /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, 2017.
-- Quarterly revenue of $2,054,000
-- Sales increased 11.8% compared to third quarter of 2016
-- Gross margin of 55.2%
-- Operating income margin of 10.8%
Selected Financial Information (unaudited; in thousands, except per share data)
Q3 2017 Q3 2016 Change
------- ------- ------
Net Sales $2,054 $1,837 11.8%
--------- ------ ------ ----
Gross Margin 55.2% 54.5% 70 bps
------------ ---- ---- --- ---
Operating Income $222 $29 665.5%
---------------- ---- --- -----
Operating Income Margin 10.8% 1.5% 930 bps
----------------------- ---- --- --- ---
Income Before Income Taxes $234 $35 568.6%
-------------------------- ---- --- -----
Earning Per Share
(diluted) $.04 $.01 300.0%
----------------- ---- ---- -----
Net sales in the third quarter increased 11.8% to $2,054,000 from $1,837,000 in the prior-year quarter. For the first nine months of 2017, net sales increased 8.0% to $6,005,000 from $5,562,000 for the first nine months of the prior year. The increase in the third quarter was primarily due to an increase in the average size of large orders in both our HazardPRO(TM) wireless hazard monitoring systems and legacy products. Additionally, in the nine months ended September 30, 2017, the Company experienced significant growth in our international markets.
"During our third quarter we once again delivered increases in both revenue and operating income over the comparable period in the prior year. We are especially pleased that we experienced growth in both our legacy products as well as our HazardPRO wireless hazard monitoring systems," said Electro-Sensors President David L. Klenk.
A full analysis of results for the period ended September 30, 2017 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, 2017 and 2016 (unaudited)
(in thousands except share and per share amounts)
Three Months Ended September 30,
--------------------------------
2017 2016
---- ----
Sales $2,054 $1,837
Cost of goods
sold 920 835
--- ---
Gross profit 1,134 1,002
Operating
expenses 912 973
--- ---
Operating
income 222 29
Non-operating
income 12 6
--- ---
Income before
income taxes 234 35
Income taxes 82 12
--- ---
Net
income $152 $23
==== ===
Earnings
per
share
-
diluted $0.04 $0.01
Average shares
outstanding -
diluted 3,400,988 3,396,776
Nine Months Ended September 30,
-------------------------------
2017 2016
---- ----
Sales $6,005 $5,562
Cost of goods
sold 2,648 2,452
----- -----
Gross profit 3,357 3,110
Operating
expenses 2,942 3,022
----- -----
Operating
income 415 88
Non-operating
income 30 29
--- ---
Income before
income taxes 445 117
Income taxes 154 43
--- ---
Net
income $291 $74
==== ===
Earnings
per
share
-
diluted $0.09 $0.02
Average shares
outstanding -
diluted 3,396,899 3,396,102
Electro-Sensors, Inc.
Balance Sheets
September 30, 2017 and December 31, 2016
(in thousands)
September 30, December 31,
2017 2016
---- ----
Assets (unaudited)
Current Assets
Cash and
investments $8,605 $8,267
Trade receivables, net 1,042 770
Inventories 1,528 1,515
Other current assets 177 240
--- ---
Total current assets 11,352 10,792
Deferred income tax asset,
net 254 198
Intangible assets, net 858 1,035
Property and equipment, net 992 1,033
--- -----
Total assets $13,456 $13,058
======= =======
Liabilities and
Stockholders' Equity
Current Liabilities
Current maturities
of note payable $142 $0
Accounts payable and accrued
expenses 645 543
--- ---
Total current liabilities 787 543
Long-term liabilities
Other long-term liabilities 0 195
--- ---
Total long-term liabilities 0 195
Stockholders' equity
Common stock 339 339
Additional paid-in capital 2,001 1,953
Retained earnings 10,348 10,057
Other comprehensive loss (19) (29)
--- ---
Total stockholders' equity 12,669 12,320
------ ------
Total liabilities
and stockholders'
equity $13,456 $13,058
======= =======
About Electro-Sensors
Electro-Sensors, Inc. is a leading manufacturer of machine monitoring sensors and hazard monitoring systems, the application of which span across multiple industries. We know that when it comes to monitoring your most critical production processes, your business relies on accurate and real-time information to ensure the safety of employees and protection of equipment. We understand that unexpected downtime is stressful and expensive. Preventive and predictive maintenance based on feedback gathered from your production processes can greatly reduce the chance that a catastrophic breakdown will occur. Using Electro-Sensors products provides you the confidence to know that your equipment is running properly and within safe limits, and that any deviation will be quickly identified and neutralized. We appreciate our many loyal customers who depend upon our products every day to maintain safety and help run their plants 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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SOURCE Electro-Sensors, Inc.
