Electro-Sensors, Inc. Announces 2022 Year-End Financial Results

News provided by

Mar 17, 2023, 14:00 ET

MINNETONKA, Minn., March 17, 2023 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the year ended December 31, 2022.

Record annual revenue of $9.0 million, up 4.9% over prior year
Gross Margin of 53.6%
Cash and investments of $9.7 million

Table in thousands, except per share data

	FY22			FY21			Change
Net Sales	$	9,029		$	8,607		4.9	%
Gross Margin		53.6	%		54.3	%	(70)	bps
Operating Income (Loss)	$	(37)		$	441		(108.4)	%
Operating Income (Loss) Margin		(0.5)	%		5.0	%	(550)	bps
Income Before Income Taxes	$	72		$	459		(84.3)	%
Earnings Per Share (diluted)	$	0.03		$	.12		(75.0)	%

Net sales during 2022 increased 4.9% to $9,029,000 from $8,607,000 in the prior year. Sales growth for the year was driven primarily by increased domestic sales for agricultural and industrial automation applications.

"We are pleased to report record annual revenue for 2022," said David L. Klenk, Electro-Sensors' president. "Our growth was driven by increased sales of both our traditional wired sensor products and our HazardPRO^TM wireless monitoring systems."

Klenk continued, "While significant supply chain disruptions continued during the year, our team did an excellent job addressing these challenges to deliver strong results."

A full analysis of results for the year ended December 31, 2022 is available in the Company's Form 10-K, 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 Years Ended December 31, 2022 and 2021 (in thousands except share and per share amounts)

	Years Ended December 31,
	2022		2021
Net sales	$	9,029	$	8,607
Cost of goods sold		4,188		3,930
Gross profit		4,841		4,677

Operating expenses		4,878		4,236

Operating income (loss)		(37)		441

Non-operating income, net		109		18

Income before income taxes		72		459

Income tax expense (benefit)		(28)		49

Net income	$	100	$	410

Earnings per share – diluted	$	0.03	$	0.12
Average shares outstanding - diluted		3,432,843		3,444,939

Electro-Sensors, Inc. Balance Sheets December 31, 2022 and 2021 (in thousands)

	December 31
	2022		2021
Assets

Current Assets
Cash and investments	$	9,682	$	9,769
Trade receivables, net		1,161		1,005
Inventories		1,745		1,663
Other current assets		225		191
Total current assets		12,813		12,628

Deferred income tax asset		256		208
Intangible assets, net		0		38
Property and equipment, net		975		1,017
Total assets	$	14,044	$	13,891

Liabilities and Stockholders' Equity

Current Liabilities
Current maturity of financing lease	$	6	$	6
Accounts payable and accrued expenses		624		691
Total current liabilities		630		697

Long-term liabilities
Financing lease, net of current maturities		0		6
Total long-term liabilities		0		6

Stockholders' equity
Common stock		342		339
Additional paid-in capital		2,163		2,041
Retained earnings		10,908		10,808
Other comprehensive gain		1		0
Total stockholders' equity		13,414		13,188

Total liabilities and stockholders' equity	$	14,044	$	13,891

2023 Annual Meeting of Shareholders

Our Annual Meeting will be held via live webcast on April 27, 2023 at 2:00 PM Central Time at www.virtualshareholdermeeting.com/ELSE2023. Please retain a copy of the 16 digit Control Number that is printed on your proxy card as you will need it to enter the Annual Meeting as a verified shareholder. Shareholders will be able to vote in this virtual meeting as if they were attending an in-person meeting. Shareholders may submit questions prior to the start of the meeting at https://www.electro-sensors.com/about/investor-info under Investor Contact - Email Gloria.

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. 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/ESIsensors
Facebook: facebook.com/ElectroSensors

SOURCE Electro-Sensors, Inc.