Electro-Sensors, Inc. Announces Third Quarter 2020 Financial Results
MINNETONKA, Minn., Nov. 12, 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 third quarter ended September 30, 2020.
-- Quarterly revenue of $1,899,000, down 7.3% from prior-year quarter
-- Gross margin of 52.2%
-- Cash and investments of approximately $9.1 million
Selected Financial Information (unaudited; in thousands, except per share data)
Q3 2020 Q3 2019 Change
Net Sales $
1,899 $
2,049 -7.3%
Gross Margin 52.2% 52.4% -20
bps
Operating Loss $
(54) $
(18) -200.0%
Operating Loss (2.9)% (0.9)% -200
Margin bps
Income (Loss)
Before Income
Taxes $
(54) $
25 -316.0%
Earnings (Loss)
Per Share
(diluted) $
(0.01) $
0.01 -200.0%
Net sales in the third quarter decreased 7.3% to $1,899,000 from $2,049,000 in the prior-year quarter. For the first nine months of 2020, net sales decreased 6.4% to $5,914,000 from $6,317,000 for the first nine months of the prior year. Sales during the quarter continued to be negatively impacted by the COVID-19 pandemic, which significantly impacted our ability to travel and visit customers.
"While COVID-19 continues to negatively impact our business, sales of our traditional wire-based products were fairly stable during the quarter," said David L. Klenk, Electro-Sensors' president. "The larger impact was to sales of our HazardPRO wireless systems, which typically require greater engagement with the customer to move the sales process forward."
A full analysis of results for the period ended September 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 Nine Months Ended September 30, 2020 and 2019 (unaudited)
(in thousands except share and per share amounts)
Three Months Ended September 30,
2020 2019
Sales $
1,899 $
2,049
Cost of goods sold 907 975
Gross profit 992 1,074
Operating expenses 1,046 1,092
Operating loss (54) (18)
Non-operating income 0 43
Income (loss) before
income taxes (54) 25
Provision for (benefit
of) income taxes (8) 6
Net income
(loss) $
(46) $
19
Earnings (loss)
per share -
diluted $
(0.01) $
0.01
Average shares
outstanding -diluted 3,395,521 3,398,533
Nine Months Ended September 30,
2020 2019
Sales $
5,914 $
6,317
Cost of goods sold 2,825 2,941
Gross profit 3,089 3,376
Operating expenses 3,265 3,392
Operating loss (176) (16)
Non-operating income 31 132
Income (loss) before
income taxes (145) 116
Provision for (benefit
from) income taxes (26) 25
Net income
(loss) $
(119) $
91
Earnings (loss)
per share -
diluted $
(0.04) $
0.03
Average shares
outstanding -diluted 3,395,521 3,397,385
Electro-Sensors, Inc.
Balance Sheets
September 30, 2020 and December 31, 2019
(in thousands)
September December
30, 31,
2020 2019
Assets (unaudited)
Current Assets
Cash and investments $
9,103 $
8,830
Trade receivables, net 1,039 1,036
Inventories 1,659 1,695
Other current assets 219 159
Total current assets 12,020 11,720
Deferred income tax asset, long-
term 227 203
Intangible assets, net 294 489
Property and equipment, net 1,010 1,063
Total assets $
13,551 $
13,475
Liabilities and Stockholders'
Equity
Current Liabilities
Current maturities of
financing lease $
6 $
5
Accounts payable and accrued
expenses 754 560
Total current liabilities 760 565
Long-term liabilities
Financing lease, net of current
maturities 14 19
Total long-term liabilities 14 19
Stockholders' equity
Common stock 339 339
Additional paid-in capital 2,035 2,030
Retained earnings 10,403 10,522
Total stockholders' equity 12,777 12,891
Total liabilities and
stockholders' equity $
13,551 $
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
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SOURCE Electro-Sensors, Inc.
