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

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

PR Newswire

MINNETONKA, Minn., Aug. 14, 2018 /PRNewswire/ -- Electro-Sensors, Inc. ELSE, a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the second quarter ended June 30, 2018.

  • Quarterly revenue of $1,780,000
  • Gross margin of 54.6%
  • Cash and investments of approximately $8.5 million

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



Q2 2018

Q2 2017

Change

Net Sales



$

1,780



$

2,328



-23.5

%

Gross Margin





54.6

%



56.9

%

-23

bps

Operating Income (Loss)



$

(75)



$

336



-122.3

%

Operating Income (Loss) Margin





(4.2)

%



14.4

%

-186

bps

Income (Loss) Before Income Taxes



$

(48)



$

343



-114.0

%

Earning (Loss) Per Share (diluted)



$

(.01)



$

.06



-116.7

%

Net sales in the second quarter decreased 23.5% to $1,780,000 from $2,328,000 in the prior-year quarter.  For the first six months of 2018, net sales decreased 12.6% to $3,496,000 from $3,998,000 for the first six months of the prior year. The decrease in the second quarter was primarily due to a decline in the number of system orders in both our legacy and HazardPROTM product lines.  Additionally, international sales decreased 55% predominately as a result of decreased sales into Canada, Europe, and Mexico.

"During the quarter we experienced a decline in large system orders as certain customers deferred projects previously planned for the quarter.  We believe a portion of these delays were in response to record low commodity prices as well as uncertainty in international trading markets," said Electro-Sensors President David L. Klenk.

A full analysis of results for the period ended June 30, 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.

Statements of Income

For the Three and Six Months Ended June 30, 2018 and 2017 (unaudited)

(in thousands except share and per share amounts)







Three Months Ended June 30,



2018



2017



Sales

$

1,780



$

2,328



Cost of goods sold



808





1,004



Gross profit



972





1,324

















Operating expenses



1,047





988

















Operating income (loss)



(75)





336

















Non-operating income



27





7

















Income (loss) before income taxes



(48)





343

















Provision for (benefit from) income taxes



(5)





120

















Net income (loss)

$

(43)



$

223

















Earnings (loss) per share – diluted

$

(0.01)



$

0.06



Average shares outstanding - diluted



3,395,521





3,402,527



 





Six Months Ended June 30,



2018



2017



Sales

$

3,496



$

3,998



Cost of goods sold



1,608





1,775



Gross profit



1,888





2,223

















Operating expenses



2,244





2,030

















Operating income (loss)



(356)





193

















Non-operating income



52





18

















Income (loss) before income taxes



(304)





211

















Provision for (benefit from) income taxes



(59)





72

















Net income (loss)

$

(245)



$

139

















Earnings (loss) per share – diluted

$

(0.07)



$

0.04



Average shares outstanding - diluted



3,395,521





3,402,731



 

Electro-Sensors, Inc.

Balance Sheets

June 30, 2018 and December 31, 2017

(in thousands)













June 30,



December 31,





2018



2017



Assets

(unaudited)





















Current Assets













Cash and investments

$

8,515



$

8,719



Trade receivables, net



823





902



Inventories



1,640





1,552



Other current assets



189





186



Total current assets



11,167





11,359

















Deferred income tax asset, long-term



181





182



Intangible assets, net



683





800



Property and equipment, net



1,061





1,074



Total assets

$

13,092



$

13,415

















Liabilities and Stockholders' Equity



























Current Liabilities













Current maturities of note payable

$

0



$

150



Accounts payable and accrued expenses



617





558



Total current liabilities



617





708

















Stockholders' equity













Common stock



339





339



Additional paid-in capital



2,010





2,004



Retained earnings



10,100





10,352



Other comprehensive income



26





12



Total stockholders' equity



12,475





12,707

















Total liabilities and stockholders' equity

$

13,092



$

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

 

Cision View original content:http://www.prnewswire.com/news-releases/electro-sensors-inc-announces-second-quarter-2018-financial-results-300697138.html

SOURCE Electro-Sensors, Inc.

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