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MINNETONKA, Minn., March 21, 2024 /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, 2023.
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Annual revenue of $8.6 million, down 5.2% over prior year
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Gross Margin of 49.6%
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Cash and investments of $9.9 million
Table in thousands, except per share data
| | | FY22 | | FY21 | | Change | |||
| Net Sales | | $ | 8,555 | | $ | 9,029 | | (5.2) | % |
| Gross Margin | | | 49.6 | % | | 53.6 | % | (400) | bps |
| Operating Income (Loss) | | $ | (28) | | $ | (37) | | (24.3) | % |
| Operating Income (Loss) Margin | | | (0.4) | % | | (0.5) | % | 10 | bps |
| Income Before Income Taxes | | $ | 378 | | $ | 72 | | 425.0 | % |
| Earnings Per Share (diluted) | | $ | 0.08 | | $ | 0.03 | | 166.7 | % |
Net sales during 2023 decreased 5.2% to $8,555,000 from $9,029,000 in the prior year. The decrease in sales was proportionally similar for both wired and HazardPRO wireless sensors and systems. International sales were steady for the two years at 10.3% of net sales.
"While early in the year, we experienced customers delaying certain facility upgrades and capital projects, as the year progressed activity began to increase as projects moved forward, leading to stronger net sales in the fourth quarter," said David L. Klenk, Electro-Sensors' president.
Klenk continued, "Additionally, we were encouraged by several repeat HazardPRO orders from existing customers eager to upgrade to our advanced wireless hazard monitoring systems."
A full analysis of results for the year ended December 31, 2023 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. | ||||||||
| | ||||||||
| | Years Ended December 31, | | ||||||
| | 2023 | | 2022 | | ||||
| Net sales | $ | 8,555 | | $ | 9,029 | | ||
| Cost of goods sold | | 4,310 | | | 4,188 | | ||
| Gross profit | | 4,245 | | | 4,841 | | ||
| | | | | | | | ||
| Operating expenses | | 4,273 | | | 4,878 | | ||
| | | | | | | | ||
| Operating loss | | (28) | | | (37) | | | |
| | | | | | | | ||
| Non-operating income, net | | 406 | | | 109 | | ||
| | | | | | | | ||
| Income before income taxes | | 378 | | | 72 | | ||
| | | | | | | | ||
| Income tax expense (benefit) | | 103 | | | (28) | | ||
| | | | | | | | ||
| Net income | $ | 275 | | $ | 100 | | ||
| | | | | | | | ||
| Earnings per share – diluted | $ | 0.08 | | $ | 0.03 | | ||
| Average shares outstanding - diluted | | 3,428,021 | | | 3,432,843 | | ||
| Electro-Sensors, Inc. | ||||||
| | ||||||
| | December 31 | | ||||
| | 2023 | | 2022 | | ||
| Assets | | | | | | |
| | | | | | | |
| Current Assets | | | | | | |
| Cash and investments | $ | 9,926 | | $ | 9,682 | |
| Trade receivables, net | | 1,283 | | | 1,161 | |
| Inventories | | 1,751 | | | 1,745 | |
| Other current assets | | 179 | | | 225 | |
| Total current assets | | 13,139 | | | 12,813 | |
| | | | | | | |
| Deferred income tax asset | | 355 | | | 256 | |
| Property and equipment, net | | 951 | | | 975 | |
| Total assets | $ | 14,445 | | $ | 14,044 | |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | |
| | | | | | | |
| Current Liabilities | | | | | | |
| Current maturity of financing lease | $ | 0 | | $ | 6 | |
| Accounts payable and accrued expenses | | 690 | | | 624 | |
| Total current liabilities | | 690 | | | 630 | |
| | | | | | | |
| Stockholders' equity | | | | | | |
| Common stock | | 342 | | | 342 | |
| Additional paid-in capital | | 2,230 | | | 2,163 | |
| Retained earnings | | 11,183 | | | 10,908 | |
| Other comprehensive gain | | 0 | | | 1 | |
| Total stockholders' equity | | 13,755 | | | 13,414 | |
| | | | | | | |
| Total liabilities and stockholders' equity | $ | 14,445 | | $ | 14,044 | |
2024 Annual Meeting of Shareholders
Our Annual Meeting will be held via live webcast on April 24, 2024 at 2:00 PM Central Time at www.virtualshareholdermeeting.com/ELSE2024. 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.