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

Rhea-AI Summary

Electro-Sensors, Inc. (NASDAQ: ELSE) reported record third quarter revenue of $2,154,000, a 13.4% increase year-over-year. Gross margin improved to 55.9% from 52.2% due to enhanced manufacturing efficiency. The company posted a net income of $17,000, recovering from a loss of $46,000 in Q3 2020. Earnings per share rose to $0.01 from a loss of $0.01. Total cash and investments at quarter-end stood at approximately $9.7 million, reflecting solid financial positioning.

Positive

• Record Q3 revenue of $2,154,000, up 13.4% year-over-year.
• Gross margin increased to 55.9%, a 370 bps improvement.
• Net income of $17,000, a turnaround from a loss of $46,000 in Q3 2020.
• Earnings per share improved to $0.01 from a previous loss of $0.01.

Negative

• None.

MINNETONKA, Minn., Nov. 5, 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 third quarter ended September 30, 2021.

• Revenue of $2,154,000, up 13.4% from prior-year period
• Gross margin of 55.9%
• Cash and investments of approximately $9.7 million

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

	Q3 2021				Q3 2020			Change
Net Sales		$	2,154		$	1,899		13.4	%
Gross Margin			55.9	%		52.2	%	370	bps
Operating Income (Loss)		$	20		$	(54)		137.0	%
Operating Income (Loss) Margin			0.9	%		-2.9	%	380	bps
Income (Loss) Before Income Taxes		$	21		$	(54)		138.9	%
Earnings (Loss) Per Share (diluted)		$	0.01		$	(0.01)		200.0	%

Net sales in the third quarter increased 13.4% to $2,154,000 from $1,899,000 in the prior-year quarter.  For the first nine months of 2021, net sales increased 10.2% to $6,517,000 from $5,914,000 in the similar prior year period.  Furthermore, gross margin for the quarter was 55.9%, up from 52.2% in the corresponding quarter in 2020, driven by improved factory utilization resulting from higher levels of manufacturing and sales.

"We are pleased to announce our largest third quarter revenue in the Company's history," said David L. Klenk, Electro-Sensors' president. "The increase during the quarter was largely driven by increased sales to customers in the agricultural industry."

A full analysis of results for the period ended September 30, 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. Statements of Income For the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited) (in thousands except share and per share amounts)
	Three Months Ended September 30,
	2021			2020
Sales	$	2,154		$	1,899
Cost of goods sold		950			907
Gross profit		1,204			992
Operating expenses		1,184			1,046
Operating income (loss)		20			(54)
Non-operating income		1			0
Income (loss) before income taxes		21			(54)
Provision for (benefit of) income taxes		4			(8)
Net income (loss)	$	17		$	(46)
Earnings (loss) per share – diluted	$	0.01		$	(0.01)
Average shares outstanding - diluted		3,439,377			3,395,521
	Nine Months Ended September 30,
	2021			2020
Sales	$	6,517		$	5,914
Cost of goods sold		2,947			2,825
Gross profit		3,570			3,089
Operating expenses		3,283			3,265
Operating income (loss)		287			(176)
Non-operating income		3			31
Income (loss) before income taxes		290			(145)
Provision for (benefit from) income taxes		61			(26)
Net income (loss)	$	229		$	(119)
Earnings (loss) per share – diluted	$	0.07		$	(0.04)
Average shares outstanding - diluted		3,435,595			3,395,521

 

Electro-Sensors, Inc. Balance Sheets September 30, 2021 and December 31, 2020 (in thousands)
	September 30,			December 31,
	2021			2020
Assets	(unaudited)
Current Assets
Cash and investments	$	9,661		$	9,131
Trade receivables, net		1,325			957
Inventories		1,477			1,572
Other current assets		207			196
Total current assets		12,670			11,856
Deferred income tax asset, long-term		270			246
Intangible assets, net		50			228
Property and equipment, net		919			989
Total assets	$	13,909		$	13,319
Liabilities and Stockholders' Equity
Current Liabilities
Current maturities of financing lease	$	6		$	6
Accounts payable and accrued expenses		889			527
Total current liabilities		895			533
Long-term liabilities
Financing lease, net of current maturities		8			12
Total long-term liabilities		8			12
Stockholders' equity
Common stock		339			339
Additional paid-in capital		2,040			2,036
Retained earnings		10,627			10,398
Other comprehensive gain		0			1
Total stockholders' equity		13,006			12,774
Total liabilities and stockholders' equity	$	13,909		$	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' revenue and earnings for Q3 2021?

Electro-Sensors reported revenue of $2,154,000 and earnings per share of $0.01 for Q3 2021.

How did Electro-Sensors' gross margin change in Q3 2021?

The gross margin for Q3 2021 improved to 55.9% from 52.2% in the same quarter of 2020.

What is the stock symbol for Electro-Sensors?

Electro-Sensors is listed under the stock symbol ELSE.

What financial performance metrics improved for Electro-Sensors in Q3 2021?

Electro-Sensors experienced a 13.4% revenue increase, positive net income, and improved gross margin.

What was Electro-Sensors' net income in Q3 2021?

Electro-Sensors posted a net income of $17,000 for Q3 2021.