Electro-Sensors, Inc. Announces First Quarter 2019 Financial Results

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MINNETONKA, Minn., May 13, 2019 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the first quarter ended March 31, 2019.

Record first quarter revenue of $2,008,000, up 17% from prior-year quarter
Gross Margin of 53.1%
Cash and investments of approximately $8.7 million

Unaudited; in thousands, except per share data

	Q1 FY19			Q1 FY18			Change
Net Sales	$	2,008		$	1,716		17.0	%
Gross Margin		53.1	%		53.4	%	-3	bps
Operating Loss	$	(86)		$	(281)		69.4	%
Operating Loss Margin		(4.3)	%		(16.3)	%	120.0	bps
Loss Before Income Tax Benefit	$	(40)		$	(256)		84.4	%
Loss Per Share (diluted)	$	(.01)		$	(.06)		83.3	%

Net sales for the 2019 first quarter increased 17.0% to $2,008,000 from $1,716,000 in the prior-year quarter. The increase was primarily driven by an increase in the number of large orders and the greater average value of those orders.

"It was exciting to see customers begin purchasing sensors and monitoring equipment for their spring facility expansion and modernization projects," said David L. Klenk, Electro-Sensors' president. "Furthermore, during the first quarter we shipped our first HazardPRO™ wireless hazard monitoring system for a frac sand application, a result of our efforts to pursue new and emerging markets for our wireless monitoring systems."

A full analysis of results for the period ended March 31, 2019 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.
Consolidated Statements of Income
For the Quarter Ended March 31, 2019 and 2018 (unaudited)
(in thousands except share and per share amounts)

	Three Months Ended March 31
	2019		2018
Sales	$	2,008	$	1,716
Cost of goods sold		941		800
Gross profit		1,067		916

Operating expenses		1,153		1,197

Operating loss		(86)		(281)

Non-operating income		46		25

Loss before income taxes		(40)		(256)

Benefit from income taxes		(9)		(54)

Net loss	$	(31)	$	(202)

Loss per share – diluted	$	(0.01)	$	(0.06)
Average shares outstanding - diluted		3,395,521		3,395,521

Electro-Sensors, Inc.
Consolidated Balance Sheets
March 31, 2019 and December 31, 2018
(in thousands)

	March 31		December 31
	2019		2018
Assets	(unaudited)

Current Assets
Cash and investments	$	8,686	$	8,799
Trade receivables, net		1,075		896
Inventories		1,638		1,618
Other current assets		179		155
Total current assets		11,578		11,468

Deferred income tax asset, long-term		189		192
Intangible assets, net		510		565
Property and equipment, net		1,073		1,050
Total assets	$	13,350	$	13,275



Liabilities and Stockholders' Equity

Current Liabilities
Current maturities of financing lease	$	5	$	5
Accounts payable and accrued expenses		624		521
Total current liabilities		629		526

Long-term liabilities
Financing lease, net of current maturities		23		24
Total long-term liabilities		23		24

Stockholders' equity
Common stock		339		339
Additional paid-in capital		2,022		2,019
Retained earnings		10,304		10,335
Other comprehensive gain		33		32
Total stockholders' equity		12,698		12,725

Total liabilities and stockholders' equity	$	13,350	$	13,275

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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