Electro-Sensors, Inc. Announces Third Quarter 2024 Financial Results

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Nov 13, 2024, 16:30 ET

MINNETONKA, Minn., Nov. 13, 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 third quarter ended September 30, 2024.

Quarterly revenue of $2,512,000, up 22.1% from the prior-year period
Gross margin of 50.4%
Cash and investments of approximately $10.3 million

Selected Financial Information (unaudited; in thousands, except per share data)

	Q3 2024				Q3 2023			Change
Net Sales		$	2,512		$	2,057		22.1	%
Gross Margin			50.4	%		48.3	%	210	bps
Operating Income (Loss)		$	173		$	(26)		765.4	%
Operating Income Margin			6.9	%		(1.2)	%	810	bps
Income Before Income Taxes		$	290		$	83		249.4	%
Earnings Per Share (diluted)		$	0.07		$	0.00		100.0	%

Net sales in the third quarter increased 22.1% to $2,512,000 from $2,057,000 in the prior-year quarter. For the nine-month period ended September 30, 2024, net sales increased 11.8% to $6,973,000 from $6,239,000 in the comparable prior-year period. Furthermore, gross margin for the 2024 third quarter was 50.4%, up from 48.6% in the corresponding quarter in 2023.

"Sales during the third quarter increased for both our wired sensor products and our wireless HazardPRO™ products, largely driven by industrial automation and agricultural applications," said David L. Klenk, Electro-Sensors' president. "Furthermore, gross margin improved over the prior-year period as our supply chain continued to stabilize, and we benefited primarily from price adjustments implemented earlier in the year."

A full analysis of results for the period ended September 30, 2024 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. Statements of Income For the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) (in thousands except share and per share amounts)

	Three Months Ended September 30,
	2024		2023
Sales	$	2,512	$	2,057
Cost of goods sold		1,247		1,064
Gross profit		1,265		993

Operating expenses		1,092		1,019

Operating income (loss)		173		(26)

Non-operating income, net		117		109

Income before income taxes		290		83

Provision for income taxes		52		75

Net income	$	238	$	8

Earnings per share – diluted	$	0.07	$	0.00
Average shares outstanding - diluted		3,434,417		3,428,021

	Nine Months Ended September 30,
	2024		2023
Sales	$	6,973	$	6,239
Cost of goods sold		3,581		3,156
Gross profit		3,392		3,083

Operating expenses		3,426		3,203

Operating loss		(34)		(120)

Non-operating income, net		342		296

Income before income taxes		308		176

Provision for income taxes		63		96

Net income	$	245	$	80

Earnings per share – diluted	$	0.07	$	0.02
Average shares outstanding - diluted		3,440,382		3,428,021

Electro-Sensors, Inc. Balance Sheets September 30, 2024 and December 31, 2023 (in thousands)

	September 30,		December 31,
	2024		2023
Assets	(unaudited)

Current Assets
Cash and investments	$	10,302	$	9,926
Trade receivables, net		1,182		1,283
Inventories		2,003		1,751
Other current assets		272		179
Total current assets		13,759		13,139

Deferred income tax asset, long-term		287		355
Property and equipment, net		911		951
Total assets	$	14,957	$	14,445

Liabilities and Stockholders' Equity

Current Liabilities
Accounts payable and accrued expenses	$	859	$	690
Total current liabilities		859		690


Stockholders' equity
Common stock		342		342
Additional paid-in capital		2,328		2,230
Retained earnings		11,428		11,183
Total stockholders' equity		14,098		13,755

Total liabilities and stockholders' equity	$	14,957	$	14,445

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:
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SOURCE Electro-Sensors, Inc.