Electro-Sensors, Inc. Announces Second Quarter 2020 Financial Results

MINNETONKA, Minn., Aug. 13, 2020 /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, 2020.

    --  Quarterly revenue of $2,092,000
    --  Gross margin of 52.5%
    --  Cash and investments of approximately $9.1 million

Selected Financial Information (unaudited; in thousands, except per share data)


                   Q2 2020             Q2 2019 Change



     Net Sales             $
        2,092         $
         2,260   -7.4
                                                               %


     Gross Margin                 52.5                 54.6
                                     %                   %  -210   
       bps


     Operating                $
        19            $
         88  -78.4
      Income                                                   %


     Operating
      Income                         %                   %
      Margin                       0.9                  3.9   -300   
       bps


     Income Before            $
        19           $
         131  -85.5
      Income Taxes                                             %


     Earnings Per
      Share                                                    %
      (diluted)              $
        .01           $
         .03  -66.7

Net sales in the second quarter decreased 7.4% to $2,092,000 from $2,260,000 in the prior-year quarter. For the first six months of 2020, net sales decreased 5.9% to $4,015,000 from $4,268,000 for the first six months of the prior year. The quarter represents the first full quarter impacted by the pandemic and we believe that the net sales decrease is due to the impact of the pandemic on our customers' business.

"This past quarter brought significant challenges to our team as the pandemic forced us to modify many aspects of how we do business," said David L. Klenk, Electro-Sensors' president. "We will continue to adapt to the ever changing circumstances to ensure our employees stay safe and our customers get the products and services they need to effectively operate their businesses."

A full analysis of results for the period ended June 30, 2020 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, 2020 and 2019 (unaudited)


          
              
                (in thousands except share and per share amounts)




                                                       Three Months Ended June 30,


                                     2020                              2019



        Sales                                $
              2,092                             $
             2,260


        Cost of goods sold                               994                                        1,025




       Gross profit                                   1,098                                        1,235




        Operating expenses                             1,079                                        1,147





        Operating income                                  19                                           88




        Non-operating income                               0                                           43





        Income before income
         taxes                                            19                                          131




        Provision for income
         taxes                                             1                                           28





        Net income                              $
              18                               $
             103





        Earnings per
         share -
         diluted                              $
              0.01                              $
             0.03


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




                                                       Six Months Ended June 30,


                                     2020                              2019



        Sales                                $
              4,015                             $
             4,268


        Cost of goods sold                             1,918                                        1,966




       Gross profit                                   2,097                                        2,302




        Operating expenses                             2,219                                        2,300





        Operating income (loss)                        (122)                                           2




        Non-operating income                              31                                           89





        Income (loss) before
         income taxes                                   (91)                                          91




        Provision for (benefit
         from) income taxes                             (18)                                          19





        Net income
         (loss)                               $
              (73)                               $
             72





        Earnings (loss)
         per share -
         diluted                            $
              (0.02)                             $
             0.02


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


                                                 
      
        E
                lectro-Sensors, Inc.


                                                   
      
                Balance Sheets


                                                 
      
        June 30, 2020 and December 31, 2019


                                                   
      
                (in thousands)




                                                          June 30,                           December 31,


                                                               2020                                   2019



                   Assets                               (unaudited)





     Current Assets


      Cash and investments                                             $
              9,052                    $
           8,830



     Trade receivables, net                                                     1,054                             1,036



     Inventories                                                                1,735                             1,695



     Other current assets                                                         174                               159




     Total current assets                                                      12,015                            11,720




      Deferred income tax asset, long-
       term                                                                        221                               203



     Intangible assets, net                                                       359                               489


      Property and equipment, net                                                1,024                             1,063




     Total assets                                                    $
              13,619                   $
           13,475





                   Liabilities and Stockholders'
                    Equity





     Current Liabilities


      Current maturities of
       financing lease                                                     $
              6                       $
            5


      Accounts payable and accrued
       expenses                                                                    776                               560



      Total current liabilities                                                    782                               565





     Long-term liabilities


      Financing lease, net of current
       maturities                                                                   15                                19



      Total long-term liabilities                                                   15                                19





     Stockholders' equity



     Common stock                                                                 339                               339


      Additional paid-in capital                                                 2,034                             2,030



     Retained earnings                                                         10,449                            10,522


      Total stockholders' equity                                                12,822                            12,891





      Total liabilities and
       stockholders' equity                                           $
              13,619                   $
           13,475

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

View original content:http://www.prnewswire.com/news-releases/electro-sensors-inc-announces-second-quarter-2020-financial-results-301112187.html

SOURCE Electro-Sensors, Inc.