Electro-Sensors, Inc. Announces Third Quarter 2024 Financial Results
Rhea-AI Summary
Electro-Sensors (NASDAQ: ELSE) reported strong Q3 2024 financial results with revenue increasing 22.1% to $2.512 million compared to $2.057 million in Q3 2023. The company achieved a gross margin of 50.4%, up from 48.3% year-over-year. Operating income improved significantly to $173,000 compared to a loss of $26,000 in the prior year. Net income reached $238,000 or $0.07 per diluted share. The growth was driven by increased sales in both wired sensor products and wireless HazardPRO™ products, particularly in industrial automation and agricultural applications. The company maintained a strong balance sheet with cash and investments of $10.3 million.
Positive
- Revenue increased 22.1% YoY to $2.512 million in Q3 2024
- Gross margin improved to 50.4% from 48.3% YoY
- Operating income turned positive at $173,000 vs. loss of $26,000 in Q3 2023
- Net income grew to $238,000 ($0.07 per share) from $8,000 in Q3 2023
- Strong cash position with $10.3 million in cash and investments
Negative
- Nine-month operating loss of $34,000 despite quarterly improvement
News Market Reaction
On the day this news was published, ELSE declined 0.24%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Quarterly revenue of
$2,512,000 22.1% from the prior-year period - Gross margin of
50.4% - Cash and investments of approximately
$10.3 million
Selected Financial Information (unaudited; in thousands, except per share data)
Q3 2024 | Q3 2023 | Change | |||||||
Net Sales | $ | 2,512 | $ | 2,057 | 22.1 | % | |||
Gross Margin | 50.4 | % | 48.3 | % | 210 | bps | |||
Operating Income (Loss) | $ | 173 | $ | (26) | 765.4 | % | |||
Operating Income Margin | 6.9 | % | (1.2) | % | 810 | bps | |||
Income Before Income Taxes | $ | 290 | $ | 83 | 249.4 | % | |||
Earnings Per Share (diluted) | $ | 0.07 | $ | 0.00 | 100.0 | % | |||
Net sales in the third quarter increased
"Sales during the third quarter increased for both our wired sensor products and our wireless HazardPRO™ products, largely driven by industrial automation and agricultural applications," said David L. Klenk, Electro-Sensors' president. "Furthermore, gross margin improved over the prior-year period as our supply chain continued to stabilize, and we benefited primarily from price adjustments implemented earlier in the year."
A full analysis of results for the period ended September 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 Nine Months Ended September 30, 2024 and 2023 (unaudited) (in thousands except share and per share amounts) | ||||||
Three Months Ended September 30, | ||||||
2024 | 2023 | |||||
Sales | $ | 2,512 | $ | 2,057 | ||
Cost of goods sold | 1,247 | 1,064 | ||||
Gross profit | 1,265 | 993 | ||||
Operating expenses | 1,092 | 1,019 | ||||
Operating income (loss) | 173 | (26) | ||||
Non-operating income, net | 117 | 109 | ||||
Income before income taxes | 290 | 83 | ||||
Provision for income taxes | 52 | 75 | ||||
Net income | $ | 238 | $ | 8 | ||
Earnings per share – diluted | $ | 0.07 | $ | 0.00 | ||
Average shares outstanding - diluted | 3,434,417 | 3,428,021 | ||||
Nine Months Ended September 30, | ||||||
2024 | 2023 | |||||
Sales | $ | 6,973 | $ | 6,239 | ||
Cost of goods sold | 3,581 | 3,156 | ||||
Gross profit | 3,392 | 3,083 | ||||
Operating expenses | 3,426 | 3,203 | ||||
Operating loss | (34) | (120) | ||||
Non-operating income, net | 342 | 296 | ||||
Income before income taxes | 308 | 176 | ||||
Provision for income taxes | 63 | 96 | ||||
Net income | $ | 245 | $ | 80 | ||
Earnings per share – diluted | $ | 0.07 | $ | 0.02 | ||
Average shares outstanding - diluted | 3,440,382 | 3,428,021 | ||||
Electro-Sensors, Inc. Balance Sheets September 30, 2024 and December 31, 2023 (in thousands) | ||||||
September 30, | December 31, | |||||
2024 | 2023 | |||||
Assets | (unaudited) | |||||
Current Assets | ||||||
Cash and investments | $ | 10,302 | $ | 9,926 | ||
Trade receivables, net | 1,182 | 1,283 | ||||
Inventories | 2,003 | 1,751 | ||||
Other current assets | 272 | 179 | ||||
Total current assets | 13,759 | 13,139 | ||||
Deferred income tax asset, long-term | 287 | 355 | ||||
Property and equipment, net | 911 | 951 | ||||
Total assets | $ | 14,957 | $ | 14,445 | ||
Liabilities and Stockholders' Equity | ||||||
Current Liabilities | ||||||
Accounts payable and accrued expenses | $ | 859 | $ | 690 | ||
Total current liabilities | 859 | 690 | ||||
Stockholders' equity | ||||||
Common stock | 342 | 342 | ||||
Additional paid-in capital | 2,328 | 2,230 | ||||
Retained earnings | 11,428 | 11,183 | ||||
Total stockholders' equity | 14,098 | 13,755 | ||||
Total liabilities and stockholders' equity | $ | 14,957 | $ | 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-third-quarter-2024-financial-results-302304783.html
SOURCE Electro-Sensors, Inc.
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