Electro-Sensors, Inc. Announces 2019 Year-End Financial Results

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Mar 25, 2020, 16:24 ET

MINNETONKA, Minn., March 25, 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 year ended December 31, 2019.

Record annual net sales of over $8.2 million, up 10% from prior year
Net income of $187,000, or $0.06 per share
Cash and investments of $8.8 million

Table in thousands, except per share data

	FY19			FY18			Change
Net Sales	$	8,258		$	7,495		10.2	%
Gross Margin		52.9	%		54.0	%	-110	bps
Operating Loss	$	(31)		$	(145)		78.6	%
Operating Loss Margin		(0.4)	%		(1.9)	%	150	bps
Income (Loss) Before Income Taxes	$	186		$	(18)		1133.3	%
Earnings Per Share (diluted)	$	0.06		$	0.00		100.0	%

Net sales during 2019 increased 10.2% to $8,258,000 from $7,495,000 in the prior year. The increase was due primarily to an increase in sales of our HazardPRO™ wireless hazard monitoring systems. International markets provided approximately 12% of our 2019 net sales led by improved sales to Brazil.

"We are pleased to announce record annual revenue during 2019," said David L. Klenk, Electro-Sensors' president. "Our growth during the year was largely driven by sales of HazardPRO wireless hazard monitoring systems, including several repeat and multi-system orders from existing customers."

Klenk continued, "While the COVID-19 outbreak will be an extraordinary challenge in 2020, Electro-Sensors continues to fully operate as we have been recognized as an essential supplier to companies serving the nation's food supply."

A full analysis of results for the year ended December 31, 2019 is available in the Company's Form 10-K, 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 Years Ended December 31, 2019 and 2018
(in thousands except share and per share amounts)

	Years Ended December 31,
	2019		2018
Net sales	$	8,258	$	7,495
Cost of goods sold		3,892		3,448
Gross profit		4,366		4,047

Operating expenses		4,397		4,192

Operating loss		(31)		(145)

Non-operating income, net		217		127

Income (loss) before income taxes		186		(18)

Income tax benefit		(1)		(8)

Net income (loss)	$	187	$	(10)

Earnings (loss) per share – diluted	$	0.06	$	0.00
Average shares outstanding - diluted		3,398,035		3,395,521

Electro-Sensors, Inc.
Balance Sheets
December 31, 2019 and 2018
(in thousands)

	December 31
	2019		2018
Assets

Current Assets
Cash and investments	$	8,830	$	8,799
Trade receivables, net		1,036		896
Inventories		1,695		1,618
Other current assets		159		155
Total current assets		11,720		11,468

Deferred income tax asset		203		192
Intangible assets, net		489		565
Property and equipment, net		1,063		1,050
Total assets	$	13,475	$	13,275

Liabilities and Stockholders' Equity

Current Liabilities
Current maturity of financing lease	$	5	$	5
Accounts payable and accrued expenses		560		521
Total current liabilities		565		526

Long-term liabilities
Financing lease, net of current maturities		19		24
Total long-term liabilities		19		24

Stockholders' equity
Common stock		339		339
Additional paid-in capital		2,030		2,019
Retained earnings		10,522		10,335
Other comprehensive gain		0		32
Total stockholders' equity		12,891		12,725

Total liabilities and stockholders' equity	$	13,475	$	13,275

2020 Annual Meeting of Shareholders

Normally, our annual meeting is held the third week of April. Due to the outbreak of COVID-19, we are scheduling our annual meeting for early in the third quarter. The date and location for our Annual Meeting of Shareholders will be announced via our proxy statement to be filed late April and on our corporate website www.electro-sensors.com.

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

SOURCE Electro-Sensors, Inc.