Financial information

Electro-Sensors, Inc. Announces Third Quarter 2022 Financial Results

MINNETONKA, Minn., November 14, 2022 /PRNewswire/ — Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machinery monitoring sensors and hazard monitoring systems, today announced its third quarter financial results. closed September 30, 2022.

  • Third quarter revenue of $2,216,000up 2.9% over the prior year period
  • Gross margin of 52.5%
  • Cash and investments of approximately $9.6 million

Selected financial information (unaudited; in thousands, except per share data)


Q3 2022

Q3 2021

To change

Net sales


$

2,216


$

2,154


2.9

%

Gross margin



52.5

%


55.9

%

-340

basis points

Operating result


$

119


$

20


495.0

%

Operating margin



5.4

%


0.9

%

450

basis points

income before taxes


$

154


$

21


633.3

%

Earnings per share (diluted)


$

0.04


$

0.00


100.0

%

Third quarter net sales increased 2.9% to $2,216,000 of $2,154,000 in the quarter of the previous year. For the first nine months of 2022, revenue increased by 6.1% to $6,915,000 of $6,517,000 for the first nine months of the previous year. The increase in net sales for the quarter is primarily due to increased sales of HazardPRO wireless hazard monitoring systems. The increase for the nine-month period was primarily the result of increased domestic sales of traditional hardwired products for industrial automation and agricultural applications.

Gross margin for the nine-month period of 2022 was 54.0%, down slightly from 54.8% for the corresponding nine months of 2021, mainly due to an increase in raw material costs in all product lines.

“Our third quarter revenue represents another strong quarter, with growth of 2.9% over the comparable period of the prior year,” said David L. Klenk, president of Electro-Sensors. “While the macroeconomic environment has certainly become more challenging in recent quarters, our results demonstrate continued success in delivering industry-leading sensors and risk monitoring systems to customers for a wide range of applications.”

A complete analysis of the results for the period ended September 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.
tax returns
For the three and nine months ended September 30, 2022 and 2021 (unaudited)
(in thousands except per share and per share amounts)



Quarter ended September 30


2022


2021


Sales

$

2,216


$

2,154


Cost of Goods Sold


1,053



950


Gross profit


1,163



1,204









Operating Expenses


1,044



1,184









Operating result


119



20









Non-operating result


35



1









income before taxes


154



21









Provision for income taxes


32



4









Net revenue

$

122


$

17









Earnings per share – diluted

$

0.04


$

0.00


Average number of shares outstanding – diluted


3,482,996



3,439,377



Nine-month period ended September 30


2022


2021


Sales

$

6,915


$

6,517


Cost of Goods Sold


3,178



2,947


Gross profit


3,737



3,570









Operating Expenses


3,997



3,283









Operating profit (loss)


(260)



287









Non-operating result


43



3









Profit (loss) before income taxes


(217)



290









Provision for (profit) income taxes


(46)



61









Net profit (loss)

$

(171)


$

229









Earnings (loss) per share – diluted

$

(0.05)


$

0.07


Average number of shares outstanding – diluted


3,397,664



3,435,595


Electro-Sensors, Inc.
Balance sheets
September 30, 2022 and December 31, 2021
(in thousands)



September 30,


The 31st of December,



2022


2021


Assets

(unaudited)











Current assets







Cash and investments

$

9,574


$

9,769


Trade receivables, net


1,180



1,005


Inventories


1,790



1,663


Other current assets


231



191


Total current assets


12,775



12,628









Long-term deferred tax asset


223



208


Intangible assets, net


0



38


Property and equipment, net


955



1,017


Total assets

$

13,953


$

13,891









Liabilities and equity














Current liabilities







Current maturities of finance leases

$

seven


$

6


Accounts payable and accrued liabilities


893



691


Total current liabilities


900



697









Long-term liabilities







Finance lease, net of outstanding maturities


1



6


Total long-term liabilities


1



6









Equity







Ordinary actions


340



339


Premium


2,075



2,041


Retained earnings


10,637



10,808


Full shareholder equity


13,052



13,188









Total Liabilities and Equity

$

13,953


$

13,891


About electro-sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machinery monitoring sensors and wireless/hardwired hazard monitoring systems applied in multiple industries and applications. These products improve processes by protecting people, safeguarding systems, reducing downtime and preventing waste. Most standard products ship within 1-2 days and are backed by an industry-leading 5-year warranty. Electro-Sensors is proud to be an ISO9001:2015 certified company and is committed to providing excellent customer service and technical support. Founded in 1968 and located in Minnetonka, MinnesotaElectro-Sensors provides its loyal customers with reliable products that improve safety and help factories operate with greater efficiency, productivity and control.

Caution 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”, “believe”, “expect”, “anticipate”, “intend” 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 beliefs regarding future events and financial performance and include any statement that does not directly relate to 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, which could cause actual performance, activities, plans or opportunities after the date to which statements are made differ materially from those set forth in the forward-looking statements.

For more information, please visit our website at: www.electro-sensors.com. Find us also on:
LinkedIn: linkedin.com/company/electro-sensors-inc-
Twitter: twitter.com/ESIsensors
Facebook: facebook.com/ElectroSensors

SOURCE Electro-Sensors, Inc.