MICR Micron Solutions Inc

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 first quarter ended March 31, 2020.

In the first quarter 2020, the Company reported $5,233,000 in revenue, as compared to $4,686,000 in the first quarter of 2019, an 11.7% increase. The net loss for the first quarter of 2020 was $285,000 compared to a net loss of $519,000 in the first quarter of 2019. Adjusted EBITDA for the period was $287,000, compared to $203,000 in the first quarter of 2019, a 41.4% increase.  

Outlook:

CEO Bill Laursen commented, “I’m proud of the progress we’ve made over the last year, which shows in our first quarter revenue growth and earnings improvement. Since the onset of COVID-19, we have been operating in an unpredictable period of economic disruption. As an essential services provider we have maintained full production to the medical and military markets while adapting to unfavorable impacts in other markets. Despite these challenges we believe our relationships with our customers have never been stronger.”

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 websites:

http://www.micronsolutionsinc.com  and http://www.micronproducts.com 

FINANCIAL TABLES FOLLOW.

First Quarter 2020 (unaudited)
$ In thousands	Q1 2020				Q1 2019				$  Change			% Change
Net sales	$	5,233			$	4,686			$	547		11.7
Gross profit	$	738			$	654			$	84		12.8
Gross margin		14.1	%			14.0	%
Net loss	$	(285	)		$	(519	)		$	234
Loss per share	$	(0.10	)		$	(0.18	)		$	.08

MICRON SOLUTIONS, INC.EBITDA RECONCILIATION (1)($ in thousands)
		Three Months Ended
		March 31,
		2020				2019
Net income (loss)	$	(285	)		$	(519	)
Interest expense		98				111
Depreciation and amortization		341				375
Share-based compensation		8				58
Non-cash incentive plan accruals		50				50
Non-recurring expenses		75				128
Adjusted EBITDA	$	287			$	203
Adjusted EBITDA margin %		5.5	%			4.3	%

(1) Non-GAAP Financial MeasuresIn addition to reporting net 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, other income and expense, interest, depreciation and amortization, share-based compensation expense and certain non-recurring 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 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, our relationships with our customers, the effect of Covid-19 on our results of operations and business 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. The factors that could cause actual results to differ materially include 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; the impact on the Company’s financial results due to economic uncertainty and disruption including, but not limited to, recent events concerning COVID-19; 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; and the amount and timing of investments in capital equipment, sales and marketing, engineering and information technology resources.  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 March 31, 2020, which is posted at https://www.otcmarkets.com/stock/MICR/ and https://micronsolutionsinc.com/.

 

For more information, contact: Mr. Wayne Coll Chief Financial Officer 978.345.5000