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

Rhea-AI Summary

Electro-Sensors, Inc. (NASDAQ: ELSE) reported first-quarter 2021 results, with revenues at $1,901,000, down 1.1% year-over-year. Despite the decline in sales, the gross margin improved slightly to 52.1%. Operating expenses decreased significantly, resulting in a reduced operating loss of $4,000 compared to $141,000 in Q1 2020. The net loss was $2,000, or $0.00 per diluted share, a notable improvement from $91,000 the prior year.

International sales saw positive trends, especially in the HazardPRO product line.

Positive

• Reduced operating loss improved by 97.2% to $4,000 from $141,000.
• Gross margin increased to 52.1%, reflecting better cost management.
• International sales showed a positive trend amid COVID-19 challenges.

Negative

• Revenue declined by 1.1%, from $1,923,000 to $1,901,000.
• -

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

 

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SOURCE Electro-Sensors, Inc.

FAQ

What were Electro-Sensors' Q1 2021 earnings results?

In Q1 2021, Electro-Sensors reported revenues of $1,901,000, down 1.1% from the previous year, with a net loss of $2,000.

What was Electro-Sensors' guidance after the Q1 2021 report?

The guidance was not explicitly mentioned; however, the company indicated improvements in international sales and customer engagement.

What is the stock symbol for Electro-Sensors?

Electro-Sensors trades under the stock symbol ELSE on NASDAQ.

How did COVID-19 affect Electro-Sensors in Q1 2021?

COVID-19 continued to impact Electro-Sensors' business, yet the company saw increases in international sales.