Electro-Sensors, Inc. Announces Third Quarter 2015 Financial Results

10 Nov, 2015, 16:39 ET from Electro-Sensors, Inc.

MINNETONKA, Minn., Nov. 10, 2015 /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, 2015.

  • Record quarterly revenue for the 2015 third quarter
  • Year-to-date sales up 12.8%
  • Third quarter international sales increased 25%
  • Third quarter operating income increased 30.7%

 

Consolidated (unaudited; in thousands, except per share data)

Q3 FY15

Q3 FY14

Change

Net Sales

$

2,132

$

1,917

11.2

%

Gross Margin

56.8

%

59.8

%

-300

bps

Operating Income

$

294

$

225

30.7

%

Operating Income Margin

13.7

%

11.7

%

200

bps

Income Before Income Taxes

$

299

$

481

-37.8

%

Earning Per Share (diluted)

$

.05

$

.09

-44.4

%

 

Net sales in the 2015 third quarter increased 11.2% to $2,132,000 from $1,917,000 in the prior-year quarter.  The quarterly increase was due to strong performance in the eastern region of the U.S. and a 25% growth in international sales. Operating income increased 30.7% to $294,000 from $225,000.

For the first nine months of 2015, net sales increased 12.8% to $6,065,000 from $5,379,000 for the first nine months of the prior year.  The increase was due to strong international growth, with a 29% increase in sales to Mexico and Canada.  Operating income increased 14.1% to $454,000 from $398,000.

"We are pleased to report another strong quarter of double-digit revenue growth and improved operating income as our customers continue to select our legacy monitoring solutions and adopt our new wireless hazard monitoring systems," said Electro-Sensors President David L. Klenk.

A full analysis of results for the period ended September 30, 2015 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 Three and Nine Months Ended September 30, 2015 and 2014 (unaudited)

(in thousands except share and per share amounts)

Three Months Ended September 30

2015

2014

Sales

$

2,132

$

1,917

Cost of goods sold

920

770

Gross profit

1,212

1,147

Operating expenses

918

922

Operating income

294

225

Non-operating income

5

256

Income before income taxes

299

481

Income taxes

104

168

Net income

$

195

$

313

Earnings per share – diluted

$

0.05

$

0.09

Average shares outstanding - diluted

3,653,021

3,658,751

Nine Months Ended September 30

2015

2014

Sales

$

6,065

$

5,379

Cost of goods sold

2,665

2,246

Gross profit

3,400

3,133

Operating expenses

2,946

2,735

Operating income

454

398

Non-operating income

1,457

1,009

Income before income taxes

1,911

1,407

Income taxes

667

492

Net income

$

1,244

$

915

Earnings per share – diluted

$

0.34

$

0.25

Average shares outstanding - diluted

3,653,021

3,652,761

 

Electro-Sensors, Inc.

Consolidated Balance Sheets

September 30, 2015 and December 31, 2014

(in thousands)

September 30

December 31

2015

2014

Assets

(unaudited)

Current Assets

Cash and investments

$

8,576

$

8,988

Trade receivables, net

916

738

Inventories

1,558

1,224

Other current assets

187

163

Total current assets

11,237

11,113

Deferred income tax asset, long-term

102

0

Intangible assets, net

1,329

1,505

Property and equipment, net

1,076

1,146

Total assets

$

13,744

$

13,764

Liabilities and Stockholders' Equity

Current Liabilities

Current maturities of note payable

$

390

$

381

Accounts payable and accrued expenses

845

600

Total current liabilities

1,235

981

Long-term liabilities

Note payable – long term

0

390

Other long-term liabilities

455

863

Total long-term liabilities

455

1,253

Stockholders' equity

Common stock

339

339

Additional paid-in capital

1,863

1,816

Retained earnings

9,885

8,641

Other comprehensive income

(33)

734

Total stockholders' equity

12,054

11,530

Total liabilities and stockholders' equity

$

13,744

$

13,764

 

About Electro-Sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and hazard monitoring systems applied across multiple industries and applications. These products improve manufacturing processes by safeguarding systems, reducing unplanned downtime, and improving operational efficiencies. Many standard products ship within one to two days and have an industry-leading 5-year warranty. Electro-Sensors is proud to be an ISO9001:2008 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 many 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/ESIsensors  Google+: google.com/+Electro-sensors  Facebook: facebook.com/ElectroSensors

 

SOURCE Electro-Sensors, Inc.



RELATED LINKS

http://www.electro-sensors.com