Electro-Sensors, Inc. Announces Second Quarter 2024 Financial Results
Rhea-AI Summary
Electro-Sensors, Inc. (NASDAQ: ELSE) reported its Q2 2024 financial results, showing a 3.7% increase in quarterly revenue to $2,217,000. The company's gross margin was 47.2%, down from 50.0% in Q2 2023. Despite the revenue growth, Electro-Sensors recorded an operating loss of $107,000 compared to an operating income of $44,000 in the prior-year quarter. The company maintained a strong cash position with $9.9 million in cash and investments. Sales growth was primarily attributed to increased demand for HazardPRO wireless hazard monitoring systems. For the first six months of 2024, net sales increased by 6.7% to $4,461,000, while gross margin decreased to 47.7% due to higher material and labor costs.
Positive
- Quarterly revenue increased by 3.7% to $2,217,000
- Six-month net sales grew by 6.7% to $4,461,000
- Strong cash position with $9.9 million in cash and investments
- Increased sales of HazardPRO wireless hazard monitoring systems
Negative
- Operating loss of $107,000 compared to operating income of $44,000 in Q2 2023
- Gross margin decreased to 47.2% from 50.0% in Q2 2023
- Six-month gross margin declined to 47.7% from 50.0% due to increased material and labor costs
- Diluted earnings per share decreased from $0.03 to $0.00 year-over-year
News Market Reaction
On the day this news was published, ELSE declined 0.78%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Quarterly revenue of
$2,217,000 3.7% from the prior-year period - Gross margin of
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 Income Margin | (4.8) | % | 2.1 | % | -690 | bps | |||
Income (Loss) Before Income Taxes | $ | 2 | $ | 138 | (98.6) | % | |||
Earnings Per Share (diluted) | $ | 0.00 | $ | 0.03 | (100.0) | % | |||
Net sales in the second quarter increased
"During the 2024 second quarter, our sales increased
A full analysis of results for the period ended June 30, 2024 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 Six Months Ended June 30, 2024 and 2023 (unaudited) (in thousands except share and per share amounts) | |||||
Three Months Ended June 30, | |||||
2024 | 2023 | ||||
Sales | $ | 2,217 | $ | 2,137 | |
Cost of goods sold | 1,170 | 1,069 | |||
Gross profit | 1,047 | 1,068 | |||
Operating expenses | 1,154 | 1,024 | |||
Operating income (loss) | (107) | 44 | |||
Non-operating income, net | 109 | 94 | |||
Income before income taxes | 2 | 138 | |||
Provision for income taxes | 6 | 22 | |||
Net income (loss) | $ | (4) | $ | 116 | |
Earnings (loss) per share – diluted | $ | 0.00 | $ | 0.03 | |
Average shares outstanding - diluted | 3,428,021 | 3,443,394 | |||
Six Months Ended June 30, | |||||
2024 | 2023 | ||||
Sales | $ | 4,461 | $ | 4,182 | |
Cost of goods sold | 2,334 | 2,092 | |||
Gross profit | 2,127 | 2,090 | |||
Operating expenses | 2,334 | 2,184 | |||
Operating income (loss) | (207) | (94) | |||
Non-operating income, net | 225 | 187 | |||
Income before income taxes | 18 | 93 | |||
Provision for income taxes | 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 31, | ||||
2024 | 2023 | ||||
Assets | (unaudited) | ||||
Current Assets | |||||
Cash and investments | $ | 9,944 | $ | 9,926 | |
Trade receivables, net | 1,180 | 1,283 | |||
Inventories | 1,865 | 1,751 | |||
Other current assets | 218 | 179 | |||
Total current assets | 13,207 | 13,139 | |||
Deferred income tax asset, long-term | 330 | 355 | |||
Property and equipment, net | 930 | 951 | |||
Total assets | $ | 14,467 | $ | 14,445 | |
Liabilities and Stockholders' Equity | |||||
Current Liabilities | |||||
Accounts payable and accrued expenses | $ | 638 | $ | 690 | |
Total current liabilities | 638 | 690 | |||
Stockholders' equity | |||||
Common stock | 342 | 342 | |||
Additional paid-in capital | 2,297 | 2,230 | |||
Retained earnings | 11,190 | 11,183 | |||
Total stockholders' equity | 13,829 | 13,755 | |||
Total liabilities and stockholders' equity | $ | 14,467 | $ | 14,445 | |
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
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-
X: x.com/ESIsensors
Facebook: facebook.com/ElectroSensors
View original content:https://www.prnewswire.com/news-releases/electro-sensors-inc-announces-second-quarter-2024-financial-results-302219063.html
SOURCE Electro-Sensors, Inc.
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