Electro-Sensors, Inc. Announces 2023 Year-End Financial Results

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Mar 21, 2024, 13:30 ET

MINNETONKA, Minn., March 21, 2024 /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, 2023.

Annual revenue of $8.6 million, down 5.2% over prior year
Gross Margin of 49.6%
Cash and investments of $9.9 million

Table in thousands, except per share data

	FY22			FY21			Change
Net Sales	$	8,555		$	9,029		(5.2)	%
Gross Margin		49.6	%		53.6	%	(400)	bps
Operating Income (Loss)	$	(28)		$	(37)		(24.3)	%
Operating Income (Loss) Margin		(0.4)	%		(0.5)	%	10	bps
Income Before Income Taxes	$	378		$	72		425.0	%
Earnings Per Share (diluted)	$	0.08		$	0.03		166.7	%

Net sales during 2023 decreased 5.2% to $8,555,000 from $9,029,000 in the prior year. The decrease in sales was proportionally similar for both wired and HazardPRO wireless sensors and systems. International sales were steady for the two years at 10.3% of net sales.

"While early in the year, we experienced customers delaying certain facility upgrades and capital projects, as the year progressed activity began to increase as projects moved forward, leading to stronger net sales in the fourth quarter," said David L. Klenk, Electro-Sensors' president.

Klenk continued, "Additionally, we were encouraged by several repeat HazardPRO orders from existing customers eager to upgrade to our advanced wireless hazard monitoring systems."

A full analysis of results for the year ended December 31, 2023 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, 2023 and 2022 (in thousands except share and per share amounts)

		Years Ended December 31,
	2023			2022
Net sales	$		8,555	$	9,029
Cost of goods sold			4,310		4,188
Gross profit			4,245		4,841

Operating expenses			4,273		4,878

Operating loss			(28)		(37)

Non-operating income, net			406		109

Income before income taxes			378		72

Income tax expense (benefit)			103		(28)

Net income	$		275	$	100

Earnings per share – diluted	$		0.08	$	0.03
Average shares outstanding - diluted			3,428,021		3,432,843

Electro-Sensors, Inc. Balance Sheets December 31, 2023 and 2022 (in thousands)

	December 31
	2023		2022
Assets

Current Assets
Cash and investments	$	9,926	$	9,682
Trade receivables, net		1,283		1,161
Inventories		1,751		1,745
Other current assets		179		225
Total current assets		13,139		12,813

Deferred income tax asset		355		256
Property and equipment, net		951		975
Total assets	$	14,445	$	14,044

Liabilities and Stockholders' Equity

Current Liabilities
Current maturity of financing lease	$	0	$	6
Accounts payable and accrued expenses		690		624
Total current liabilities		690		630

Stockholders' equity
Common stock		342		342
Additional paid-in capital		2,230		2,163
Retained earnings		11,183		10,908
Other comprehensive gain		0		1
Total stockholders' equity		13,755		13,414

Total liabilities and stockholders' equity	$	14,445	$	14,044

2024 Annual Meeting of Shareholders

Our Annual Meeting will be held via live webcast on April 24, 2024 at 2:00 PM Central Time at www.virtualshareholdermeeting.com/ELSE2024. Please retain a copy of the 16 digit Control Number that is printed on your proxy card as you will need it to enter the Annual Meeting as a verified shareholder. Shareholders will be able to vote in this virtual meeting as if they were attending an in-person meeting. Shareholders may submit questions prior to the start of the meeting at https://www.electro-sensors.com/about/investor-info under Investor Contact - Email Gloria.

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. 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.