Electro-Sensors, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the previous fiscal period. The company, which manufactures and markets monitoring and control systems for industrial machine applications, achieved net sales of $2,512,000 for the third quarter, marking a 22.1% increase from $2,057,000 in Q3 2023. For the nine-month period, net sales rose to $6,973,000, an 11.8% increase from $6,239,000 in the same period last year.

Gross profit for Q3 2024 was $1,265,000, up 27.4% from $993,000 in Q3 2023, while gross profit for the nine months increased to $3,392,000, a 10.0% rise from $3,083,000. The gross margin for Q3 improved to 50.4%, up from 48.3% in the prior year, attributed to higher average selling prices despite increased material and labor costs. However, the gross margin for the nine-month period decreased slightly to 48.6% from 49.4%, primarily due to rising costs across all product lines.

Operating income for Q3 2024 was $173,000, a significant turnaround from an operating loss of $26,000 in Q3 2023. For the nine months, the operating loss narrowed to $34,000 from $120,000 in the previous year. The company reported net income of $238,000 for Q3 2024, compared to a mere $8,000 in Q3 2023, and net income for the nine months increased to $245,000 from $80,000.

Electro-Sensors' cash and cash equivalents rose to $10,246,000 as of September 30, 2024, up from $9,870,000 at the end of 2023. The company generated $406,000 in net cash from operating activities for the nine months, an increase from $255,000 in the same period last year.

Operating expenses for Q3 2024 were $1,092,000, a 7.2% increase from the previous year, but as a percentage of net sales, they decreased to 43.5% from 49.5%. The company faced challenges in the supply chain, including unexpected price and delivery issues, and labor market difficulties that could impact operational efficiency and profit margins.

As of September 30, 2024, Electro-Sensors had total assets of $14,957,000, up from $14,445,000 at the end of 2023, and total stockholders’ equity increased to $14,098,000 from $13,755,000. The company continues to maintain effective disclosure controls and procedures, with no significant changes in internal control over financial reporting noted during the quarter.