Electro-Sensors, Inc. Announces First Quarter 2020 Financial

|May 11|magazine12 min read

MINNETONKA, Minn., May 11, 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 first quarter ended March 31, 2020.

  • First quarter revenue of $1,923,000, down 4.2% from prior year period
  • Gross Margin of 52.0%
  • Cash and investments of approximately $8.9 million

Unaudited; in thousands, except per share data



Q1 FY20


Q1 FY19


Change

Net Sales


$

1,923


$

2,008


-4.2

%

Gross Margin



52.0

%


53.1

%

-11

bps

Operating Loss


$

(141)


$

(86)


64.0

%

Operating Loss Margin



(7.3)

%


(4.3)

%

-30.0

bps

Loss Before Income Tax Benefit


$

(110)


$

(40)


175.0

%

Loss Per Share (diluted)


$

(.03)


$

(.01)


200.0

%

Net sales for the 2020 first quarter decreased 4.2% to $1,923,000 from $2,008,000 in the prior-year quarter.  The decrease is partially due to the impact of the COVID-19 pandemic.  As the quarter progressed, sales became less predictable as many of our customers were increasingly impacted by the outbreak.

"As the COVID-19 situation developed during the quarter, we were named an essential supplier by many of our customers, particularly in various agricultural and food supply industries," said David L. Klenk, Electro-Sensors' president. "Now more than ever, our customers are looking for Electro-Sensors to deliver critical sales and service as they strive to keep the nation's food supply healthy, safe, and operating efficiently."

A full analysis of results for the period ended March 31, 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.

Consolidated Statements of Income

For the Quarter Ended March 31, 2020 and 2019 (unaudited)

(in thousands except share and per share amounts)



Three Months Ended March 31


2020


2019

Sales

$

1,923


$

2,008

Cost of goods sold


924



941

Gross profit


999



1,067







Operating expenses


1,140



1,153







Operating loss


(141)



(86)







Non-operating income


31



46







Loss before income taxes


(110)



(40)







Benefit from income taxes


(19)



(9)







Net loss

$

(91)


$

(31)







Loss per share – diluted

$

(0.03)


$

(0.01)

Average shares outstanding - diluted


3,395,521



3,395,521







 

Electro-Sensors, Inc.

Consolidated Balance Sheets

March 31, 2020 and December 31, 2019

(in thousands)



March 31


December 31


2020


2019

Assets

(unaudited)









Current Assets






Cash and investments

$

8,891


$

8,830

Trade receivables, net


934



1,036

Inventories


1,721



1,695

Other current assets


219



159

Total current assets


11,765



11,720







Deferred income tax asset, long-term


207



203

Intangible assets, net


424



489

Property and equipment, net


1,038



1,063

Total assets

$

13,434


$

13,475



















Liabilities and Stockholders' Equity












Current Liabilities






Current maturities of financing lease

$

6


$

5

Accounts payable and accrued expenses


609



560

Total current liabilities


615



565







Long-term liabilities






Financing lease, net of current maturities


16



19

Total long-term liabilities


16



19







Stockholders' equity






Common stock


339



339

Additional paid-in capital


2,033



2,030

Retained earnings


10,431



10,522

Total stockholders' equity


12,803



12,891







Total liabilities and stockholders' equity

$

13,434


$

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-first-quarter-2020-financial-results-301057084.html

SOURCE Electro-Sensors, Inc.