Electro-Sensors, Inc. Announces First Quarter 2021 Financial Results

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May 13, 2021, 16:46 ET

MINNETONKA, Minn., May 13, 2021 /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, 2021.

First quarter revenue of $1,901,000, down 1.1% from prior year-period
Gross Margin of 52.1%
Cash and investments of approximately $9.1 million

Unaudited; in thousands, except per share data

	Q1 FY21			Q1 FY20			Change
Net Sales	$	1,901		$	1,923		-1.1	%
Gross Margin		52.1	%		52.0	%	10	bps
Operating Loss	$	(4)		$	(141)		97.2	%
Operating Loss Margin		(0.2)	%		(7.3)	%	710.0	bps
Loss Before Income Tax Benefit	$	(2)		$	(110)		98.2	%
Loss Per Share (diluted)	$	0.00		$	(0.03)		100.0	%

Net sales for the 2021 first quarter decreased 1.1% to $1,901,000 from $1,923,000 in the prior-year quarter. Correspondingly, operating expenses have been reduced, leading to a smaller net loss in the first quarter of 2021 compared to the net loss in the similar period during 2020.

"While COVID-19 continues to impact our business, during the first quarter we were encouraged with increases in international sales as well as gains from our HazardPRO line of wireless hazard monitoring systems," said David L. Klenk, Electro-Sensors' president. "Additionally, as travel restrictions are gradually beginning to lift, our ability to visit customers for sales and service has improved, leading to closer engagements with our customers."

A full analysis of results for the period ended March 31, 2021 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, 2021 and 2020 (unaudited)
(in thousands except share and per share amounts)

	Three Months Ended March 31
	2021		2020
Sales	$	1,901	$	1,923
Cost of goods sold		911		924
Gross profit		990		999

Operating expenses		994		1,140

Operating loss		(4)		(141)

Non-operating income		2		31

Loss before income taxes		(2)		(110)

Benefit from income taxes		0		(19)

Net loss	$	(2)	$	(91)

Loss per share – diluted	$	0.00	$	(0.03)
Average shares outstanding - diluted		3,395,521		3,395,521



Electro-Sensors, Inc.
Consolidated Balance Sheets
March 31, 2021 and December 31, 2020
(in thousands)

	March 31		December 31
	2021		2020
Assets	(unaudited)

Current Assets
Cash and investments	$	9,087	$	9,131
Trade receivables, net		1,209		957
Inventories		1,568		1,572
Other current assets		225		196
Total current assets		12,089		11,856

Deferred income tax asset, long-term		253		246
Intangible assets, net		163		228
Property and equipment, net		964		989
Total assets	$	13,469	$	13,319



Liabilities and Stockholders' Equity

Current Liabilities
Current maturities of financing lease	$	6	$	6
Accounts payable and accrued expenses		679		527
Total current liabilities		685		533

Long-term liabilities
Financing lease, net of current maturities		11		12
Total long-term liabilities		11		12

Stockholders' equity
Common stock		339		339
Additional paid-in capital		2,037		2,036
Retained earnings		10,396		10,398
Other comprehensive gain		1		1
Total stockholders' equity		12,773		12,774

Total liabilities and stockholders' equity	$	13,469	$	13,319

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.