PR Newswire | Nov 12, 2020 05:01PM EST

11/12 16:00 CST

Electro-Sensors, Inc. Announces Third Quarter 2020 Financial Results MINNETONKA, Minn., Nov. 12, 2020

MINNETONKA, Minn., Nov. 12, 2020 /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, 2020.

* Quarterly revenue of $1,899,000, down 7.3% from prior-year quarter * Gross margin of 52.2% * Cash and investments of approximately $9.1 million

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

Q3 2020 Q3 2019 Change

Net Sales $ 1,899 $ 2,049 -7.3%

Gross Margin 52.2% 52.4% -20bps

Operating Loss $ (54) $ (18) -200.0%

Operating Loss Margin (2.9)% (0.9) -200bps %

Income (Loss) Before Income Taxes $ (54) $ 25 -316.0%

Earnings (Loss) Per Share (diluted) $ (0.01) $ 0.01 -200.0%

Net sales in the third quarter decreased 7.3% to $1,899,000 from $2,049,000 in the prior-year quarter. For the first nine months of 2020, net sales decreased 6.4% to $5,914,000 from $6,317,000 for the first nine months of the prior year. Sales during the quarter continued to be negatively impacted by the COVID-19 pandemic, which significantly impacted our ability to travel and visit customers.

"While COVID-19 continues to negatively impact our business, sales of our traditional wire-based products were fairly stable during the quarter," said David L. Klenk, Electro-Sensors' president. "The larger impact was to sales of our HazardPRO wireless systems, which typically require greater engagement with the customer to move the sales process forward."

A full analysis of results for the period ended September 30, 2020 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, 2020 and 2019 (unaudited)

(in thousands except share and per share amounts)

Three Months Ended September 30,

2020 2019

Sales $ 1,899 $ 2,049

Cost of goods sold 907 975

Gross profit 992 1,074

Operating expenses 1,046 1,092

Operating loss (54) (18)

Non-operating income 0 43

Income (loss) before income taxes (54) 25

Provision for (benefit of) income taxes (8) 6

Net income (loss) $ (46) $ 19

Earnings (loss) per share - diluted $ (0.01) $ 0.01

Average shares outstanding - diluted 3,395,521 3,398,533

Nine Months Ended September 30,

2020 2019

Sales $ 5,914 $ 6,317

Cost of goods sold 2,825 2,941

Gross profit 3,089 3,376

Operating expenses 3,265 3,392

Operating loss (176) (16)

Non-operating income 31 132

Income (loss) before income taxes (145) 116

Provision for (benefit from) income taxes (26) 25

Net income (loss) $ (119) $ 91

Earnings (loss) per share - diluted $ (0.04) $ 0.03

Average shares outstanding - diluted 3,395,521 3,397,385

Electro-Sensors, Inc. Balance Sheets September 30, 2020 and December 31, 2019 (in thousands)





September 30,December 31,

2020 2019

Assets (unaudited)



Current Assets

Cash and investments $9,103 $8,830

Trade receivables, net 1,039 1,036

Inventories 1,659 1,695

Other current assets 219 159

Total current assets 12,020 11,720



Deferred income tax asset, long-term 227 203

Intangible assets, net 294 489

Property and equipment, net 1,010 1,063

Total assets $13,551 $13,475



Liabilities and Stockholders' Equity



Current Liabilities

Current maturities of financing lease $6 $5

Accounts payable and accrued expenses 754 560

Total current liabilities 760 565



Long-term liabilities

Financing lease, net of current maturities 14 19

Total long-term liabilities 14 19



Stockholders' equity

Common stock 339 339

Additional paid-in capital 2,035 2,030

Retained earnings 10,403 10,522

Total stockholders' equity 12,777 12,891



Total liabilities and stockholders' equity$13,551 $13,475

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.