Electro-Sensors, Inc. Announces Second Quarter 2019 Financial Results
MINNETONKA, Minn., Aug. 12, 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 second quarter ended June 30, 2019.
-- Quarterly revenue of $2,260,000, up 27% from prior-year quarter
-- Gross margin of 54.6%
-- Cash and investments of approximately $8.8 million
Selected Financial Information (unaudited; in thousands, except per share data)
Q2 2019 Q2 2018 Change
Net Sales $
2,260 $
1,780 27.0
%
Gross Margin 54.6 54.6
% % 0
bps
Operating
Income %
(Loss) $
88 $
(75) 217
Operating
Income % %
(Loss)
Margin 3.9 (4.2) 81
bps
Income (Loss)
Before %
Income Taxes $
131 $
(48) 372.9
Earning
(Loss) Per %
Share
(diluted) $
.03 $
(.01) 400.0
Net sales in the second quarter increased 27.0% to $2,260,000 from $1,780,000 in the prior-year quarter. For the first six months of 2019, net sales increased 22.1% to $4,268,000 from $3,496,000 for the first six months of the prior year. International sales in the second quarter of 2019 increased to 13.8% of sales, compared to 7.4% of sales in the corresponding quarter in 2018, primarily driven by stronger sales in Brazil.
"Revenue growth during the quarter was largely driven by projects in grain, feed and milling markets," said David L. Klenk, Electro-Sensors' president. "Additionally, the increase in the second quarter was in both our traditional monitoring products and HazardPRO(TM) wireless system sales."
A full analysis of results for the period ended June 30, 2019 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 Six Months Ended June 30, 2019 and 2018 (unaudited)
(in thousands except share and per share amounts)
Three Months Ended June 30,
2019 2018
Sales $
2,260 $
1,780
Cost of goods sold 1,025 808
Gross profit 1,235 972
Operating expenses 1,147 1,047
Operating income (loss) 88 (75)
Non-operating income 43 27
Income (loss) before
income taxes 131 (48)
Provision for (benefit
from) income taxes 28 (5)
Net income
(loss) $
103 $
(43)
Earnings (loss)
per share -
diluted $
0.03 $
(0.01)
Average shares
outstanding -diluted 3,395,521 3,395,521
Six Months Ended June 30,
2019 2018
Sales $
4,268 $
3,496
Cost of goods sold 1,966 1,608
Gross profit 2,302 1,888
Operating expenses 2,300 2,244
Operating income (loss) 2 (356)
Non-operating income 89 52
Income (loss) before
income taxes 91 (304)
Provision for (benefit
from) income taxes 19 (59)
Net income
(loss) $
72 $
(245)
Earnings (loss)
per share -
diluted $
0.02 $
(0.07)
Average shares
outstanding -diluted 3,395,521 3,395,521
Electro-Sensors, Inc.
Balance Sheets
June 30, 2019 and December 31, 2018
(in thousands)
June 30, December
31,
2019 2018
Assets (unaudited)
Current Assets
Cash and investments $
8,777 $
8,799
Trade receivables, net 1,295 896
Inventories 1,712 1,618
Other current assets 155 155
Total current assets 11,939 11,468
Deferred income tax asset, long-term 203 192
Intangible assets, net 457 565
Property and equipment, net 1,065 1,050
Total assets $
13,664 $
13,275
Liabilities and Stockholders' Equity
Current Liabilities
Current maturities of financing
lease $
5 $
5
Accounts payable and accrued expenses 828 521
Total current liabilities 833 526
Long-term liabilities
Financing lease, net of current maturities 21 24
Total long-term liabilities 21 24
Stockholders' equity
Common stock 339 339
Additional paid-in capital 2,024 2,019
Retained earnings 10,407 10,335
Other comprehensive income 40 32
Total stockholders' equity 12,810 12,725
Total liabilities and
stockholders' equity $
13,664 $
13,275
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.
