Micron Solutions, Inc. Reports 2021 Third Quarter Results
November 15 2021 - 4:37PM
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 $766,000 in the third quarter of
2020.
CEO Bill Laursen commented, “During the third
quarter, the Company continued to make progress on its key
strategic objectives, building upon the milestones achieved earlier
in the year.
Micron’s decreased EBITDA was primarily a result
of lower volume in our custom molding and machining business lines
due to inconsistent order patterns at some of our larger customers.
Some of these customers continue to be negatively impacted by the
COVID-19 pandemic and resulting disruptions in their business. We
have also increased investments in engineering and production to
strengthen our abilities to support new customers and product
development. Both of these factors had unfavorable impact to
earnings in the third quarter.”
About Micron Solutions, Inc.
Micron Solutions, Inc., through its wholly-owned
subsidiary, Micron Products, Inc., is a diversified contract
manufacturing organization that produces highly-engineered,
innovative medical device components requiring precision machining
and injection molding. The Company also contract manufactures
components, devices and equipment for military, law enforcement,
industrial and automotive applications. In addition, the Company is
a market leader in the production and sale of silver/silver
chloride coated and conductive resin sensors used as consumable
component parts in the manufacture of integrated disposable
electrophysiological sensors. The Company’s strategy for growth is
to build a best-in-class contract manufacturer with a specialized
focus on plastic injection molding and highly-engineered medical
devices and components requiring precision machining.
The Company routinely posts news and other important information
on its website: http://www.micronsolutions.com
FINANCIAL TABLES FOLLOW.
Third Quarter 2021
(unaudited)
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$ In thousands |
Q3 2021 |
|
Q3 2020 |
$ Change |
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% Change |
|
Net sales |
$ |
4,885 |
|
|
$ |
5,636 |
|
|
$ |
(751 |
) |
|
(13.3 |
%) |
Gross profit |
$ |
260 |
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$ |
1,298 |
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$ |
(1,038 |
) |
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(80 |
%) |
Gross margin |
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5.3 |
% |
|
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23.0 |
% |
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Net income |
$ |
(472 |
) |
|
$ |
324 |
|
|
$ |
(796 |
) |
|
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Earnings per share |
$ |
(0.14 |
) |
|
$ |
0.11 |
|
|
$ |
(0.25 |
) |
|
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MICRON SOLUTIONS, INC.EBITDA
RECONCILIATION (1)($ in thousands)
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Three Months Ended |
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September 30, |
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2021 |
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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 |
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(94 |
) |
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|
50 |
|
Adjusted EBITDA |
$ |
(253 |
) |
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$ |
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/.
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For more information, contact: |
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Mr. Glen Bunnell |
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Chief Financial Officer |
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978.345.5000 |
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