Micron Solutions, Inc. Reports 2020 Third Quarter Results
FITCHBURG, Mass., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Micron Solutions, Inc. (OTCQB: MICR) (the “Company”), a diversified contract manufacturing organization, through its wholly-owned subsidiary, Micron Products, Inc., producing highly-engineered, innovative components requiring precision machining and injection molding, announced results for its third quarter ended September 30, 2020.
In the third quarter of 2020, the Company reported $5,636,000 in revenue, as compared to $4,331,000 in the third quarter of 2019, a 30.1% increase. Net Income for the third quarter of 2020 was $324,000 compared to a net loss of $507,000 in the third quarter of 2019. Gross Margin improved to 23.0% in the third quarter of 2020, compared to 9.2% in the third quarter of 2019.
Adjusted EBITDA for the third quarter of 2020, was $766,000 compared to $80,000 in the third quarter of 2019, an approximate 950% increase.
CEO Bill Laursen commented, “We are excited about our performance in the third quarter of 2020, which was characterized by a strong improvement in gross profit and significantly increased Adjusted EBITDA. We are pleased to report that we had successive quarters of profitability which is attributable to the accomplishments of our team as we work to complete the turn-around we began less than two years ago. As an essential services provider, we believe that we have fared comparatively well given the unpredictable impacts of the pandemic as demonstrated by our 30.1% increase in revenues. While we, like all companies, face continued uncertainty during these difficult times, we credit the resiliency of our workforce with these healthy gains.”
CFO Wayne Coll commented, “On August 25, 2020, we announced that we entered into a purchase and sale agreement for the sale and leaseback of our main manufacturing facility. The transaction was subject to a number of conditions and was expected to close in the fourth quarter of 2020. We continue to work through due diligence matters with purchaser, and now expect the closing of the sale-leaseback to take place by the end of the fourth quarter of 2020 or within the first quarter of 2021.”
About Micron Solutions, Inc.
Micron Solutions, Inc., through its wholly-owned subsidiary, Micron Products, Inc., is a diversified contract manufacturing organization that produces highly-engineered, innovative medical device components requiring precision machining and injection molding. The Company also contract manufactures components, devices and equipment for military, law enforcement, industrial and automotive applications. In addition, the Company is a market leader in the production and sale of silver/silver chloride coated and conductive resin sensors used as consumable component parts in the manufacture of integrated disposable electrophysiological sensors. The Company’s strategy for growth is to build a best-in-class contract manufacturer with a specialized focus on plastic injection molding and highly-engineered medical devices and components requiring precision machining.
The Company routinely posts news and other important information on its website: http://www.micronsolutions.com
FINANCIAL TABLES FOLLOW.
|Third Quarter 2020 (unaudited)|
|$ In thousands||Q3 2020||Q3 2019||$ Change||% Change|
|Net Income (loss)||$||324||$||(507||)||$||831|
|Net Income (loss) per share, basic||$||0.11||$||(0.16||)||$||.27|
|Net Income (loss) per share, diluted||$||0.11||$||(0.16||)||$||.27|
|MICRON SOLUTIONS, INC.|
|EBITDA RECONCILIATION (1)|
|($ in thousands)|
|Three Months Ended|
|Net income (loss)||$||324||$||(507||)|
|Depreciation and amortization||317||358|
|Non-cash incentive plan accruals||50||50|
|Non-recurring (income) expenses||-||(17||)|
|Adjusted EBITDA margin %||13.6||%||1.9||%|
(1) Non-GAAP Financial Measures
In addition to reporting net income (loss), a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (income from continuing operations adjusted for income taxes, interest, depreciation and amortization, share-based compensation expense and certain non-recurring income and expenses), which is a non-GAAP measure. Share-based compensation includes directors fees paid by means of stock grants versus cash as well as non-cash incentives. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income (loss) and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
Safe Harbor Statement
Forward-looking statements made herein, including but not limited to, the duration and effect of Covid-19 on our results of operations and business, the timing and effect of our turnaround plan, the resiliency of our workforce, and the terms, conditions and timing on closing a sale leaseback transaction are based on current expectations of Micron Solutions, Inc. (“our” or the “Company”) that involve a number of risks and uncertainties and should not be considered as guarantees of future performance. Therefore, actual results may differ materially from what is expressed in or implied by these forward-looking statements. The factors that could cause our actual results of operations, financial condition, performance or achievements to be affected materially include, but are not limited to, our ability to obtain and retain order volumes from customers who represent significant proportions of net sales; our ability to maintain our pricing model, offset higher costs with price increases and/or decrease our cost of sales; variability of customer delivery requirements; the level of and ability to generate sales of higher margin products and services; our ability to manage our level of debt and provisions in the debt agreements which could make the Company sensitive to the effects of economic downturns and limit our ability to react to changes in the economy or our industry; failure to comply with financial and other covenants in our credit facility; our ability to refinance the terms of our credit facility on commercially reasonable terms or at all; the impact on the Company’s financial results due to economic uncertainty and disruption including, but not limited to, recent events concerning COVID-19; changes to regulations governing the forgiveness of the Company’s PPP Loan; reliance on revenues from exports and impact on financial results due to economic uncertainty or downturns in foreign markets; volatility in commodity and energy prices and our ability to offset higher costs with price increases; continued availability of supplies or materials used in manufacturing at competitive prices; variations in the mix of products sold; continued availability of supplies or materials used in manufacturing at competitive prices; the amount and timing of investments in capital equipment, sales and marketing, engineering and information technology resources; and the terms, timing, and ability to close the sale-leaseback transaction. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. More information about the Company's financial results is included in the Company's most recent Annual Report on Form 10-K, and the Company’s Quarterly Report for the period ending September 30, 2020, which is posted at https://www.otcmarkets.com/stock/MICR/ and https://micronsolutions.com/.
|For more information, contact:|
|Mr. Wayne Coll|
|Chief Financial Officer|