PR Newswire | Nov 5, 2021 03:00PM EDT

11/05 14:00 CDT

Electro-Sensors, Inc. Announces Third Quarter 2021 Financial Results MINNETONKA, Minn., Nov. 5, 2021

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 IncomeFor 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/ESIsensorsFacebook: facebook.com/ElectroSensors

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SOURCE Electro-Sensors, Inc.