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

MINNETONKA, Minn., Nov. 12, 2020 /PRNewswire/ -- Electro-Sensors, Inc. 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%

-20bps

Operating Loss

$

(54)

$

(18)

-200.0%

Operating Loss Margin



(2.9)%



(0.9)%

-200bps

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 30,



December 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

Cision View original content:http://www.prnewswire.com/news-releases/electro-sensors-inc-announces-third-quarter-2020-financial-results-301172415.html

SOURCE Electro-Sensors, Inc.

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