Electro-Sensors, Inc. Announces First Quarter 2023 Financial Results

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May 12, 2023, 17:46 ET

MINNETONKA, Minn., May 12, 2023 /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, 2023.

First quarter revenue of $2,045,000, down 4.2% from prior year-period
Gross Margin of 50.0%
Cash and investments of approximately $9.6 million

Unaudited; in thousands, except per share data

	Q1 FY23			Q1 FY22			Change
Net Sales	$	2,045		$	2,135		(4.2)	%
Gross Margin		50.0	%		54.6	%	(460)	bps
Operating Loss	$	(138)		$	(14)		(885.7)	%
Operating Loss Margin		(6.7)	%		(0.7)	%	(600.0)	bps
Loss Before Income Tax Benefit	$	(45)		$	(13)		(246.2)	%
Loss Per Share (diluted)	$	(0.01)		$	0.00		(100.0)	%

"During the first quarter our revenue decreased slightly to $2,045,000 from $2,135,000 in the prior-year period," said David L. Klenk, Electro-Sensors' president. "While customer activity and interest remained solid during the quarter, we achieved lower revenue primarily due to decreased domestic sales for both wired and wireless products."

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

	Three Months Ended March 31
	2023		2022
Sales	$	2,045	$	2,135
Cost of goods sold		1,023		969
Gross profit		1,022		1,166

Operating expenses		1,160		1,180

Operating loss		(138)		(14)

Non-operating income		93		1

Loss before income taxes		(45)		(13)

Benefit from income taxes		(1)		(4)

Net loss	$	(44)	$	(9)

Loss per share – diluted	$	(0.01)	$	0.00
Average shares outstanding - diluted		3,428,021		3,395,521

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

	March 31		December 31
	2023		2022
Assets	(unaudited)

Current Assets
Cash and investments	$	9,563	$	9,682
Trade receivables, net		1,372		1,161
Inventories		1,779		1,745
Other current assets		215		225
Total current assets		12,929		12,813

Deferred income tax asset, long-term		306		256
Property and equipment, net		952		975
Total assets	$	14,187	$	14,044



Liabilities and Stockholders' Equity

Current Liabilities
Current maturities of financing lease	$	4	$	6
Accounts payable and accrued expenses		817		624
Total current liabilities		821		630

Stockholders' equity
Common stock		342		342
Additional paid-in capital		2,163		2,163
Retained earnings		10,864		10,908
Other comprehensive gain (loss)		(3)		1
Total stockholders' equity		13,366		13,414

Total liabilities and stockholders' equity	$	14,187	$	14,044

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.