Micron Solutions, Inc. Reports 2020 Second Quarter Results
August 14 2020 - 10:11AM
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 second quarter ended June 30,
2020.
In the second quarter of 2020, the Company
reported $4,356,000 in revenue, as compared to $4,892,000 in the
second quarter of 2019, an 11.0% decrease. Net Income for the
second quarter of 2020 was $1,031,000 compared to a net loss of
$471,000 in the second quarter of 2019. Gross Margin improved to
15.6% in the second quarter of 2020, compared to 10.4% in the
second quarter of 2019. During the second quarter of 2020, the
Company recognized $1,213,000 in other income after accounting for
loan forgiveness related to the Payroll Protection Program (“PPP”)
loan received early in the quarter.
Adjusted EBITDA for the second quarter of 2020,
which excludes income from PPP loan forgiveness, in addition to the
exclusion of certain expense items, was $290,000 compared to
$123,000 in the second quarter of 2019, a 135.8%
increase.
Outlook:
CEO Bill Laursen commented, “I’m pleased that we
have shown continued progress through the second quarter of 2020,
despite the impact of COVID-19 on our revenues. As an essential
services provider, we were able to maintain full production to the
medical and military markets while weathering the impacts in other
markets. Despite unpredictable headwinds such as the postponement
of elective surgeries, the impact on our customers of
government-mandated shutdowns and the challenges the pandemic has
posed to our workforce, we were still able to improve our
bottom-line financial results.”
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.
|
Second
Quarter 2020 (unaudited) |
|
$ In
thousands |
Q2 2020 |
|
Q2 2019 |
|
$ Change |
|
% Change |
Net sales |
$ |
4,356 |
|
|
$ |
4,892 |
|
|
$ |
(536 |
) |
|
(11.0 |
) |
Gross
profit |
$ |
679 |
|
|
$ |
510 |
|
|
$ |
84 |
|
|
12.8 |
|
Gross margin |
|
15.6 |
% |
|
|
10.4 |
% |
|
|
|
|
|
|
|
Net
Income (loss) |
$ |
1,031 |
|
|
$ |
(471 |
) |
|
$ |
1,502 |
|
|
|
|
Net
Income (loss) per share |
$ |
0.35 |
|
|
$ |
(0.16 |
) |
|
$ |
.51 |
|
|
|
|
MICRON
SOLUTIONS, INC.EBITDA RECONCILIATION
(1)($ in thousands) |
|
|
|
Three Months Ended |
|
|
June 30, |
|
|
2020 |
|
|
|
2019 |
|
Net income
(loss) |
$ |
1,031 |
|
|
$ |
(471 |
) |
Interest expense |
|
81 |
|
|
|
112 |
|
Depreciation and amortization |
|
334 |
|
|
|
374 |
|
Share-based compensation |
|
7 |
|
|
|
58 |
|
Non-cash incentive plan accruals |
|
50 |
|
|
|
50 |
|
Non-recurring (income) expenses |
|
(1,213 |
) |
|
|
- |
|
Adjusted EBITDA |
$ |
290 |
|
|
$ |
123 |
|
Adjusted EBITDA margin % |
|
6.7 |
% |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
(1) Non-GAAP Financial
MeasuresIn 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, our relationships with our customers
and the duration and 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;
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; the ability to close and the timing of any
such closing of the sale-lease back transaction. 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 June 30, 2020,
which is posted at https://www.otcmarkets.com/stock/MICR/ and
https://micronsolutions.com/.
For more information, contact:
Mr. Wayne CollChief Financial Officer978.345.5000
Micron Solutions (AMEX:MICR)
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