Electro-Sensors, Inc. Announces Second Quarter 2024 Financial Results

MINNETONKA, Minn., Aug. 9, 2024 /PRNewswire/ — Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global supplier of machine monitoring sensors and hazard monitoring systems, today announced financial results for the second quarter ended June 30, 2024.

Quarterly revenues were $2,217,000, up 3.7% year-over-year
Gross margin 47.2%
Cash and investments of approximately $9.9 million

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

	Q2 2023				Q2 2022			Change
Net sales		$	2,217		$	2,137		3.7	%
Gross margin			47.2	%		50.0	%	-280	bps
Operating income (loss)		$	(107)		$	44		(343.2)	%
Operating profit margin			(4.8)	%		2.1	%	-690	bps
Income (loss) before tax		$	2		$	138		(98.6)	%
Earnings per share (diluted)		$	0.00		$	0.03		(100.0)	%

Net sales for the second quarter increased 3.7% to $2,217,000 from $2,137,000 in the comparable quarter of the prior year. For the first six months of 2024, net sales increased 6.7% to $4,461,000 from $4,182,000 in the comparable period of the prior year. Additionally, gross margin for the first six months of 2024 was 47.7%, compared to 50.0% in the comparable period of 2023, primarily due to higher material and labor costs across all product lines.

“In the second quarter of 2024, our sales increased by 3.7% compared to the same period of the previous year, mainly due to increased sales of our HazardPRO^TM wireless threat monitoring systems,” said David L. Klenk, president of Electro-Sensors. “Customers continue to value the ease of installation, flexibility and favorable total cost of ownership of our HazardPRO systems.”

A complete results analysis for the period ended June 30, 2024 is available in the company’s Form 10-Q, which can be found on the company’s website at www.electro-sensors.com or in the Securities and Exchange Commission’s Edgar database at www.sec.gov.

Electro-Sensors, Inc. Profit and loss accounts For the three and six months ended June 30, 2024 and 2023 (unaudited) (in thousands, except per share and per share amounts)

	Three months ended June 30
	2024		2023
Turnover	$	2,217	$	2,137
Cost of goods sold		1,170		1,069
Gross profit		1,047		1,068

Operating costs		1,154		1,024

Operating income (loss)		(107)		44

Net income from non-operating activities		109		94

Income before tax		2		138

Provision for income tax		6		22

Net income (loss)	$	(4)	$	116

Earnings (loss) per share – diluted	$	0.00	$	0.03
Average number of shares outstanding – diluted		3 428 021		3 443 394

	Six months ended June 30
	2024		2023
Turnover	$	4,461	$	4,182
Cost of goods sold		2,334		2,092
Gross profit		2,127		2,090

Operating costs		2,334		2,184

Operating income (loss)		(207)		(94)

Net income from non-operating activities		225		187

Income before tax		18		93

Provision for income tax		11		21

Net income	$	7	$	72

Earnings per share – diluted	$	0.00	$	0.02
Average shares outstanding – diluted		3 428 021		3 443 930

Electro-Sensors, Inc. Balance sheets June 30, 2024 and December 31, 2023 (in thousands)

	June 30		December 31st
	2024		2023
Assets	(unexplored)

Current assets
Cash and investments	$	9,944	$	9926
Net trade receivables		1,180		1,283
Stocks		1,865		1,751
Other current assets		218		179
Total current assets		13 207		13 139

Deferred tax assets, long-term		330		355
Net fixed assets		930		951
Total assets	$	14 467	$	14,445

Liabilities and equity

Current liabilities
Bills payable and accrued expenses	$	638	$	690
Total current liabilities		638		690


Equity capital
Ordinary shares		342		342
Additional paid-in capital		2,297		2,230
Retained earnings		11 190		11 183
Total equity capital		13 829		13 755

Total liabilities and equity	$	14 467	$	14,445

About electrosensors

Electro-Sensors, Inc. is an industry-leading designer and manufacturer of rugged, reliable machine monitoring sensors and wireless/wired hazard monitoring systems used in a variety of industries and applications. These products improve processes by protecting people, securing systems, reducing downtime, and preventing waste. Electro-Sensors is a proud ISO9001:2015 certified quality company and is committed to providing excellent customer service and technical support. Founded in 1968 and headquartered 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.

Warning Regarding Forward-Looking Statements

This press release may contain statements regarding possible or anticipated future financial results, business operations, plans or opportunities. These forward-looking statements may contain the words “will,” “should,” “believes,” “expects,” “anticipates,” “intends” or similar expressions. The Company claims the safe harbor protection for forward-looking statements contained in the federal securities laws with respect to these forward-looking statements. Forward-looking statements reflect the Company’s current views with respect to future events and financial performance and include any statements that do not relate directly 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, that could cause actual results, operations, plans or opportunities after the date the statements are made to be materially different from those indicated in the forward-looking statements.

For more information, visit our website: www.electro-sensors.com. Also check us out on:
LinkedIn: linkedin.com/company/electro-sensors-inc-
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SOURCE Electro-Sensors, Inc.