Electro-Sensors, Inc. Announces 2018 Year End Financial Results
MINNETONKA, Minn., March 21, 2019 /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, 2018.
-- Revenue of $7.5 million
-- Gross margin of 54.0%
-- Cash and investments of $8.8 million
In thousands, except per share data
FY18 FY17 Change
Net Sales $
7,495 $
7,840 -4.4
%
Gross Margin 54.0 54.8
% % -80
bps
Operating Income (Loss) $
(145) $
410 -135.4
%
Operating Income (Loss) (1.9) 5.2
Margin % % -710
bps
Income (Loss) Before $
(18) $
458 -103.9
Income Taxes %
Earnings (Loss) Per Share $
0.00 $
0.09 -100.0
(diluted) %
Net sales during 2018 decreased 4.4% to $7,495,000 from $7,840,000 in the prior year. The decrease was due primarily to a decrease in all product lines and geographies, as we saw general softness in our primary markets.
International markets provided approximately 11% of our 2018 revenue from shipments into 27 countries.
"In 2018 we celebrated our 50(th) anniversary of providing industry leading machine monitoring sensors and hazard monitoring systems," said David L. Klenk, Electro-Sensors' president. "While this is an impressive milestone, we are even more encouraged about the years to come as we continue to enhance our product portfolio and pursue exciting new markets."
A full analysis of results for the year ended December 31, 2018 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, 2018 and 2017
(in thousands except share and per share amounts)
Years Ended December 31,
2018 2017
Sales $
7,495 $
7,840
Cost of
goods sold 3,448 3,541
Gross profit 4,047 4,299
Operating
expenses 4,192 3,889
Operating
income
(loss) (145) 410
Non-
operating
income, net 127 48
Income
(loss)
before
income
taxes (18) 458
Income tax
expense
(benefit) (8) 163
Net
income
(loss) $
(10) $
295
Earnings
(loss)
per
share
-
diluted $
0.00 $
0.09
Average
shares
outstanding
-diluted 3,395,521 3,401,017
Electro-Sensors, Inc.
Balance Sheets
December 31, 2018 and 2017
(in thousands)
December 31
2018 2017
Assets
Current Assets
Cash and investments $
8,799 $
8,719
Trade receivables, net 896 902
Inventories 1,618 1,552
Other current assets 155 186
Total current assets 11,468 11,359
Deferred income tax asset 192 182
Intangible assets, net 565 800
Property and equipment, net 1,050 1,074
Total assets $
13,275 $
13,415
Liabilities and Stockholders' Equity
Current Liabilities
Contingent earn-out $
0 $
150
Current maturity of financing lease 5 0
Accounts payable and accrued expenses 521 558
Total current liabilities 526 708
Long-term liabilities
Financing lease, net of current maturities 24 0
Total long-term liabilities 24 0
Stockholders' equity
Common stock 339 339
Additional paid-in capital 2,019 2,004
Retained earnings 10,335 10,352
Other comprehensive gain 32 12
Total stockholders' equity 12,725 12,707
Total liabilities and
stockholders' equity $
13,275 $
13,415
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
Google+: google.com/+Electro-sensors
Facebook: facebook.com/ElectroSensors
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SOURCE Electro-Sensors, Inc.
