Electro-Sensors, Inc. Announces Second Quarter 2022 Financial Results
Electro-Sensors, Inc. (NASDAQ: ELSE) reported record revenue of $2,564,000 for Q2 2022, a 4.1% increase from $2,462,000 in Q2 2021. Despite this growth, the company faced an operating loss of $365,000, translating to an EPS loss of $0.08. For the first half of 2022, net sales grew by 7.7% to $4,669,000, with a gross margin of 54.8%. Notably, the company announced a merger with Mobile X Global, Inc., indicating a strategic move for growth.
- Record quarterly revenue of $2,564,000 for Q2 2022, a 4.1% increase year-over-year.
- Overall sales for the first half increased by 7.7% to $4,669,000.
- Gross margin improved to 54.8% for the first six months of 2022, up from 54.2% in 2021.
- Operating loss of $365,000 for Q2 2022 compared to a profit of $271,000 in Q2 2021.
- Net loss of $284,000 in Q2 2022 versus net income of $214,000 in Q2 2021.
- Earnings per share decreased from $0.06 in Q2 2021 to a loss of $0.08 in Q2 2022.
Insights
Analyzing...
MINNETONKA, Minn., Aug. 2, 2022 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the second quarter ended June 30, 2022.
- Record quarterly revenue of
$2,564,000 - Gross margin of
54.9% - Cash and investments of approximately
$9.5 million
Selected Financial Information (unaudited; in thousands, except per share data) | |||||||||
Q2 2022 | Q2 2021 | Change | |||||||
Net Sales | $ | 2,564 | $ | 2,462 | 4.1 | % | |||
Gross Margin | 54.9 | % | 55.9 | % | -100 | bps | |||
Operating Income (Loss) | $ | (365) | $ | 271 | (234.7) | % | |||
Operating Income Margin | (14.3) | % | 11.0 | % | -2530 | bps | |||
Income (Loss) Before Income Taxes | $ | (358) | $ | 271 | (232.1) | % | |||
Earnings Per Share (diluted) | $ | (.08) | $ | .06 | (233.3) | % | |||
Net sales in the second quarter increased
"During the second quarter, we achieved record quarterly revenue, driven by broad-based strength in agricultural applications, including commodity refining and biofuels," said David L. Klenk, Electro-Sensors' president. "Furthermore, we are excited to have announced during the quarter that we have entered into a definitive agreement to merge with Mobile X Global, Inc."
A full analysis of results for the period ended June 30, 2022 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 Six Months Ended June 30, 2022 and 2021 (unaudited) | ||||||
(in thousands except share and per share amounts) | ||||||
Three Months Ended June 30, | ||||||
2022 | 2021 | |||||
Sales | $ | 2,564 | $ | 2,462 | ||
Cost of goods sold | 1,156 | 1,086 | ||||
Gross profit | 1,408 | 1,376 | ||||
Operating expenses | 1,773 | 1,105 | ||||
Operating income (loss) | (365) | 271 | ||||
Non-operating income | 7 | 0 | ||||
Income (loss) before income taxes | (358) | 271 | ||||
Provision for (benefit from) income taxes | (74) | 57 | ||||
Net income (loss) | $ | (284) | $ | 214 | ||
Earnings (loss) per share – diluted | $ | (0.08) | $ | 0.06 | ||
Average shares outstanding - diluted | 3,395,521 | 3,413,444 | ||||
Six Months Ended June 30, | ||||||
2022 | 2021 | |||||
Sales | $ | 4,699 | $ | 4,363 | ||
Cost of goods sold | 2,125 | 1,997 | ||||
Gross profit | 2,574 | 2,366 | ||||
Operating expenses | 2,953 | 2,099 | ||||
Operating income (loss) | (379) | 267 | ||||
Non-operating income | 8 | 2 | ||||
Income (loss) before income taxes | (371) | 269 | ||||
Provision for (benefit from) income taxes | (78) | 57 | ||||
Net income (loss) | $ | (293) | $ | 212 | ||
Earnings (loss) per share – diluted | $ | (0.09) | $ | 0.06 | ||
Average shares outstanding - diluted | 3,395,521 | 3,433,609 | ||||
Electro-Sensors, Inc. | ||||||
Balance Sheets | ||||||
June 30, 2022 and December 31, 2021 | ||||||
(in thousands) | ||||||
June 30, | December 31, | |||||
2022 | 2021 | |||||
Assets | (unaudited) | |||||
Current Assets | ||||||
Cash and investments | $ | 9,481 | $ | 9,769 | ||
Trade receivables, net | 1,323 | 1,005 | ||||
Inventories | 1,720 | 1,663 | ||||
Other current assets | 252 | 191 | ||||
Total current assets | 12,776 | 12,628 | ||||
Deferred income tax asset, long-term | 226 | 208 | ||||
Intangible assets, net | 13 | 38 | ||||
Property and equipment, net | 981 | 1,017 | ||||
Total assets | $ | 13,996 | $ | 13,891 | ||
Liabilities and Stockholders' Equity | ||||||
Current Liabilities | ||||||
Current maturities of financing lease | $ | 6 | $ | 6 | ||
Accounts payable and accrued expenses | 1,088 | 691 | ||||
Total current liabilities | 1,094 | 697 | ||||
Long-term liabilities | ||||||
Financing lease, net of current maturities | 3 | 6 | ||||
Total long-term liabilities | 3 | 6 | ||||
Stockholders' equity | ||||||
Common stock | 339 | 339 | ||||
Additional paid-in capital | 2,043 | 2,041 | ||||
Retained earnings | 10,515 | 10,808 | ||||
Other comprehensive gain | 2 | 0 | ||||
Total stockholders' equity | 12,899 | 13,188 | ||||
Total liabilities and stockholders' equity | $ | 13,996 | $ | 13,891 | ||
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
View original content:https://www.prnewswire.com/news-releases/electro-sensors-inc-announces-second-quarter-2022-financial-results-301598480.html
SOURCE Electro-Sensors, Inc.
FAQ
What were Electro-Sensors' earnings for Q2 2022?
How did Electro-Sensors' revenue change in Q2 2022?
What is the gross margin for Electro-Sensors in 2022?
What merger did Electro-Sensors announce?
