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, 2021.

In the third quarter of 2021, the Company reported $4,884,881 in revenue, as compared to $5,636,288 in the third quarter of 2020, a 13.3% decrease. Net Loss for the third quarter of 2021 was ($472,113) compared to net income of $324,011 in the third quarter of 2020. Gross Margin decreased to 5.3% in the third quarter of 2021, compared to 23% in the third quarter of 2020.

Adjusted EBITDA for the third quarter of 2021 was ($253,000) compared to $766,000 in the third quarter of 2020.

CEO Bill Laursen commented, “During the third quarter, the Company continued to make progress on its key strategic objectives, building upon the milestones achieved earlier in the year.

Micron’s decreased EBITDA was primarily a result of lower volume in our custom molding and machining business lines due to inconsistent order patterns at some of our larger customers. Some of these customers continue to be negatively impacted by the COVID-19 pandemic and resulting disruptions in their business. We have also increased investments in engineering and production to strengthen our abilities to support new customers and product development. Both of these factors had unfavorable impact to earnings in the third quarter.”

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


Third Quarter 2021 (unaudited)

$ In thousands Q3 2021   Q3 2020 $ Change   % Change  
Net sales $ 4,885     $ 5,636     $ (751 )   (13.3 %)
Gross profit $ 260     $ 1,298     $ (1,038 )   (80 %)
Gross margin   5.3 %     23.0 %        
Net income $ (472 )   $ 324     $ (796 )    
Earnings per share $ (0.14 )   $ 0.11     $ (0.25 )    


    Three Months Ended
    September 30,
    2021       2020  
Net income $ (472 )   $ 324  
Interest expense   23       69  
Depreciation and amortization   264       317  
Share-based compensation   26 6       6  
Non-cash incentive plan accruals   (94 )     50  
Adjusted EBITDA $ (253 )   $ 766  
Adjusted EBITDA margin %   -0.1 %     13.6 %

(1) Non-GAAP Financial Measures

In addition to reporting net income, 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, and share-based compensation expense), 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, 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 our credit facility 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, 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, including managing disruptions in the supply chain and the availability of certain raw materials; 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. 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 Quarterly Reports for the most recent quarter ended September 30, 2021 and for the quarters ended March 31, 2021 and June 30, 2021 and our most recent Annual Report for the fiscal year ended December 31, 2020, which are posted at https://www.otcmarkets.com/stock/MICR/ and https://micronsolutions.com/.

For more information, contact:    
Mr. Glen Bunnell  
Chief Financial Officer  
Micron Solutions (AMEX:MICR)
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