Electro-Sensors, Inc. Announces First Quarter 2018 Financial Results

Electro-Sensors, Inc. Announces First Quarter 2018 Financial Results

MINNETONKA, Minn., May 10, 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 first quarter ended March 31, 2018.

    --  First quarter revenue of $1,716,000, up 2.8% from prior year quarter
    --  Gross Margin of 53.4%
    --  Cash and investments of approximately $8.3 million

Unaudited; in thousands, except per share data


                             Q1 FY18         Q1 FY17 Change
                             -------         ------- ------

    Net Sales                         $1,716           $1,670      2.8%

    Gross Margin                       53.4%           53.9%       -5   bps

    Operating Loss                    $(281)          $(143)   -96.5%

    Operating Loss Margin            (16.3)%          (8.7)%     -7.6   bps

    Loss Before Income Taxes          $(256)          $(132)   -93.9%

    Loss Per Share (diluted)          $(.06)          $(.02)  -200.0%

Net sales for the 2018 first quarter increased 2.8% to $1,716,000 from $1,670,000 in the prior-year quarter. The increase was primarily due to increased HazardPRO(TM) product sales and system orders, led by increased sales into Canada.

"We continue to be encouraged by the excellent customer feedback on our HazardPRO wireless hazard monitoring systems," said David L. Klenk, Electro-Sensors' president. "Furthermore, these satisfied customers are in many cases returning for HazardPRO system upgrades and hazard monitoring expansions at additional facilities."

A full analysis of results for the period ended March 31, 2018 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, 2018 and 2017 (unaudited)

                    (in thousands except share and per share amounts)


                                           Three Months Ended March 31
                                         ---------------------------

                                            2018                       2017
                                            ----                       ----

    Sales                                               $1,716                   $1,670

    Cost of goods sold                                   800                      771
                                                         ---                      ---

    Gross profit                                         916                      899


    Operating expenses                                 1,197                    1,042
                                                       -----                    -----


    Operating loss                                     (281)                   (143)


    Non-operating income                                  25                       11
                                                         ---                      ---


    Loss before income taxes                           (256)                   (132)


    Benefit from income taxes                           (54)                    (48)
                                                         ---                      ---


    Net loss                                            $(202)                   $(84)
                                                         =====                     ====


    Loss per share -
     diluted                                           $(0.06)                 $(0.02)

    Average shares outstanding
     -diluted                                      3,395,521                3,395,521


                                        Electro-Sensors, Inc.

                                     Consolidated Balance Sheets

                                 March 31, 2018 and December 31, 2017

                                            (in thousands)


                                                          March 31             December 31

                                                                2018                   2017
                                                                ----                   ----

                          Assets                         (unaudited)


    Current Assets

    Cash and investments                                                $8,351                $8,719

    Trade receivables, net                                               855                   902

    Inventories                                                        1,579                 1,552

    Other current assets                                                 289                   186
                                                                         ---                   ---

    Total current assets                                              11,074                11,359


    Deferred income tax asset,
     long-term                                                           163                   182

    Intangible assets, net                                               741                   800

    Property and equipment, net                                        1,058                 1,074
                                                                       -----                 -----

    Total assets                                                       $13,036               $13,415
                                                                       =======               =======




              Liabilities and Stockholders'
                          Equity


    Current Liabilities

    Contingent earn-out                                                     $0                  $150

    Accounts payable and accrued
     expenses                                                            528                   558
                                                                         ---                   ---

    Total current liabilities                                            528                   708


    Stockholders' equity

    Common stock                                                         339                   339

    Additional paid-in capital                                         2,008                 2,004

    Retained earnings                                                 10,143                10,352

    Other comprehensive gain                                              18                    12
                                                                         ---                   ---

    Total stockholders' equity                                        12,508                12,707
                                                                      ------                ------


    Total liabilities and
     stockholders' equity                                              $13,036               $13,415
                                                                       =======               =======

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

CONTACT: David Klenk, 952-930-0100, dklenk@electro-sensors.com

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SOURCE Electro-Sensors, Inc.