Electro-Sensors, Inc. Announces 2017 Year End Financial Results
Electro-Sensors, Inc. Announces 2017 Year End Financial Results
MINNETONKA, Minn., March 20, 2018 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the year ended December 31, 2017.
-- Record revenue of $7.8 million
-- Revenue growth of 9.3% over 2016
-- Gross margin of 54.8%
-- Cash and investments of $8.7 million
In thousands, except per share data
FY17 FY16 Change
---- ---- ------
Net Sales $7,840 $7,174 9.3%
Gross Margin 54.8% 54.1% 70 bps
Operating Income $410 $170 141.2%
Operating Income Margin 5.2% 2.3% 290 bps
Income Before Income Taxes $458 $204 124.5%
Earning Per Share
(diluted) $0.09 $0.06 50.0%
Net sales during 2017 increased 9.3% to $7,840,000 from $7,174,000 in the prior year. The increase was due primarily to an increase in strategic system orders during the second half of the year.
International markets provided approximately 10% of our 2017 revenue from shipments into over 40 countries. Our 2017 international business grew by 20.4% primarily due to increased sales to customers in Canada.
"We are pleased to report record annual revenue for 2017 driven by improved sales of both our HazardPRO wireless hazard monitoring systems as well as our legacy machine monitoring sensors and systems," said David L. Klenk, Electro-Sensors' president. "Moreover, the increased number of strategic system orders is a good indication that our customers are beginning to commit to larger facility upgrades and plant expansion projects."
A full analysis of results for the year ended December 31, 2017 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, 2017 and 2016
(in thousands except share and per share amounts)
Years Ended December 31,
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2017 2016
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Sales $7,840 $7,174
Cost of goods sold 3,541 3,290
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Gross profit 4,299 3,884
Operating expenses 3,889 3,714
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Operating income 410 170
Non-operating income 48 34
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Income before income taxes 458 204
Income taxes 163 2
--- ---
Net income $295 $202
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Earnings per share
- diluted $0.09 $0.06
Average shares outstanding -
diluted 3,401,017 3,395,945
Electro-Sensors, Inc.
Balance Sheets
December 31, 2017 and 2016
(in thousands)
December 31
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2017 2016
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Assets
Current Assets
Cash and investments $8,719 $8,267
Trade receivables, net 902 770
Inventories 1,552 1,515
Other current assets 186 240
--- ---
Total current assets 11,359 10,792
Deferred income tax asset 182 198
Intangible assets, net 800 1,035
Property and equipment, net 1,074 1,033
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Total assets $13,415 $13,058
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Liabilities and Stockholders' Equity
Current Liabilities
Contingent earn-out $150 $0
Accounts payable and accrued expenses 558 543
--- ---
Total current liabilities 708 543
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 2,004 1,953
Retained earnings 10,352 10,057
Other comprehensive gain (loss) 12 (29)
--- ---
Total stockholders' equity 12,707 12,320
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Total liabilities and
stockholders' equity $13,415 $13,058
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About Electro-Sensors
Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and 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
CONTACT: David L. Klenk, 952-930-0100, dklenk@electro-sensors.com
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SOURCE Electro-Sensors, Inc.
