Micron Solutions, Inc. Reports 2020 Third Quarter Results
November 16 2020 - 10:26AM
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.
Outlook:
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 sales |
$ |
5,636 |
|
$ |
4,331 |
|
$ |
1,305 |
|
|
30.1 |
|
Gross profit |
$ |
1,298 |
|
$ |
517 |
|
$ |
781 |
|
|
151.1 |
|
Gross margin |
|
23.0 |
% |
|
9.2 |
% |
|
|
|
|
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 |
|
September 30, |
|
2020 |
|
2019 |
Net income (loss) |
$ |
324 |
|
|
$ |
(507 |
) |
Interest expense |
|
69 |
|
|
|
110 |
|
Depreciation and amortization |
|
317 |
|
|
|
358 |
|
Share-based compensation |
|
6 |
|
|
|
52 |
|
Non-cash incentive plan accruals |
|
50 |
|
|
|
50 |
|
Non-recurring (income) expenses |
|
- |
|
|
|
(17 |
) |
Adjusted EBITDA |
$ |
766 |
|
|
$ |
80 |
|
Adjusted EBITDA margin % |
|
13.6 |
% |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
(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, 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 |
978.345.5000 |
Micron Solutions (AMEX:MICR)
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