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

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

PR Newswire

MINNETONKA, Minn., Aug. 14, 2018 /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, 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

 

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SOURCE Electro-Sensors, Inc.

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