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

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MINNETONKA, Minn., Aug. 11, 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 second quarter ended June 30, 2023.

  • Quarterly revenue of $2,137,000
  • Gross margin of 50.0%
  • Cash and investments of approximately $9.6 million

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


Q2 2023

Q2 2022

Change

Net Sales


$

2,137


$

2,564


(16.7)

%

Gross Margin



50.0

%


54.9

%

-490

bps

Operating Income (Loss)


$

44


$

(365)


112.1

%

Operating Income Margin



2.1

%


(14.3)

%

1640

bps

Income (Loss) Before Income Taxes


$

138


$

(358)


138.5

%

Earnings Per Share (diluted)


$

.03


$

(.08)


137.5

%

Net sales in the second quarter decreased 16.7% to $2,137,000 from $2,564,000 in the prior-year quarter.  For the first six months of 2023, net sales decreased 11.0% to $4,182,000 from $4,699,000 for the first six months of the prior year.  Furthermore, gross margin for the 2023 six-month period was 50.0%, down from 54.8% in the corresponding six months in 2022, primarily due increased material costs across all product lines.

"During the second quarter, we experienced decreased sales of both our wired and wireless product lines as compared to the same period in the prior year, primarily due to reduced demand and delayed orders related to postponed facility modernization projects," said David L. Klenk, Electro-Sensors' president. "Several of our customers, particularly in agricultural applications, rescheduled capital expenditures to better align with their business levels."

A full analysis of results for the period ended June 30, 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.

Statements of Income

For the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)

(in thousands except share and per share amounts)



Three Months Ended June 30,


2023


2022


Sales

$

2,137


$

2,564


Cost of goods sold


1,069



1,156


Gross profit


1,068



1,408









Operating expenses


1,024



1,773









Operating income (loss)


44



(365)









Non-operating income, net


94



7









Income (loss) before income taxes


138



(358)









Provision for (benefit from) income taxes


22



(74)









Net income (loss)

$

116


$

(284)









Earnings (loss) per share – diluted

$

0.03


$

(0.08)


Average shares outstanding - diluted


3,443,394



3,395,521

















Six Months Ended June 30,


2023


2022


Sales

$

4,182


$

4,699


Cost of goods sold


2,092



2,125


Gross profit


2,090



2,574









Operating expenses


2,184



2,953









Operating income (loss)


(94)



(379)









Non-operating income, net


187



8









Income (loss) before income taxes


93



(371)









Provision for (benefit from) income taxes


21



(78)









Net income (loss)

$

72


$

(293)









Earnings (loss) per share – diluted

$

0.02


$

(0.09)


Average shares outstanding - diluted


3,443,930



3,395,521


 

Electro-Sensors, Inc.

Balance Sheets

June 30, 2023 and December 31, 2022

(in thousands)



June 30,


December 31,



2023


2022


Assets

(unaudited)











Current Assets







Cash and investments

$

9,629


$

9,682


Trade receivables, net


1,202



1,161


Inventories


1,915



1,745


Other current assets


255



225


Total current assets


13,001



12,813









Deferred income tax asset, long-term


344



256


Property and equipment, net


929



975


Total assets

$

14,274


$

14,044









Liabilities and Stockholders' Equity














Current Liabilities







Current maturities of financing lease

$

3


$

6


Accounts payable and accrued expenses


787



624


Total current liabilities


790



630
















Stockholders' equity







Common stock


342



342


Additional paid-in capital


2,163



2,163


Retained earnings


10,980



10,908


Other comprehensive income (loss)


(1)



1


Total stockholders' equity


13,484



13,414









Total liabilities and stockholders' equity

$

14,274


$

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

Cision View original content:https://www.prnewswire.com/news-releases/electro-sensors-inc-announces-second-quarter-2023-financial-results-301898960.html

SOURCE Electro-Sensors, Inc.

Electro-Sensors Inc

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Scientific & Technical Instruments
Industrial Instruments for Measurement, Display, and Control
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United States of America
MINNETONKA