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 fourth quarter and year ended
December 31, 2020.
In the fourth quarter of 2020, the Company
reported $5,613,000 in revenue, as compared to $3,590,000 in the
fourth quarter of 2019, a 56.4% increase. Net Income for the fourth
quarter of 2020 was $78,000 compared to a net loss of $644,000 in
the fourth quarter of 2019. Gross Margin improved to 14.8% in the
fourth quarter of 2020, compared to 2.2% in the fourth quarter of
2019.
For the year ended December 31, 2020, the
Company reported $20,838,000 in revenue, as compared to $17,499,000
for the year ended December 31, 2019, a 19.1% increase. Net Income
for the year ended December 31, 2020 was $1,148,000 compared to a
net loss of $2,141,000 for the year ended December 31, 2019. Gross
Margin improved to 17.0% for the year ended December 31, 2020,
compared to 10.1% for the year ended December 31, 2019.
Adjusted EBITDA for the fourth quarter of 2020,
which excludes certain expense items, was $523,000 compared to
negative EBITDA of $188,000 in the fourth quarter of 2019. Adjusted
EBITDA for the year ended December 31, 2020, which in addition to
excluding certain expense items also excludes grant income from
Paycheck Protection Program loan forgiveness, was $1,673,000
compared to negative EBITDA of $27,000 for the year ended December
31, 2019.
Outlook:
CEO Bill Laursen commented, “Although 2020 was a
very challenging year due to the constant adaptations required to
manage the impact of Covid-19, I am very pleased by the results.
Micron’s management team was proactive in planning so we could be
as prepared as possible to react to the many external and internal
changes affecting the business. Our operations team has done an
excellent job maintaining consistency in quality and delivery. Our
strong relationships with our customers, bank and the business
community in Fitchburg and the Commonwealth have been key in
navigating through these unchartered waters.”
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. Although
the original purchaser was unable to complete their due diligence
in the time provided, we were able to promptly identify alternate
buyers and are negotiating a purchase and sale agreement under
terms we expect to be substantially similar to the previously
disclosed terms. We now expect the Company to be in a position to
close a sale-leaseback by the end of the second quarter of 2021. In
addition, we have extended the maturity date on our credit facility
until June 29, 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.
Fourth Quarter 2020
$ In
thousands |
Q4 2020 |
|
Q4 2019 |
$ Change |
% Change |
Net sales |
$ |
5,613 |
|
|
$ |
3,590 |
|
|
$ |
2,023 |
|
56.4 |
% |
Gross
profit |
$ |
831 |
|
|
$ |
80 |
|
|
$ |
751 |
|
938.8 |
% |
Gross margin |
|
14.80 |
% |
|
|
2.20 |
% |
|
|
|
|
Net
income (loss) |
$ |
78 |
|
|
$ |
-644 |
|
|
$ |
722 |
|
|
Loss
per share |
$ |
0.03 |
|
|
$ |
-0.22 |
|
|
$ |
0.25 |
|
|
Fiscal Year 2020
$ In
thousands |
2020 |
|
|
2019 |
$ Change |
% Change |
Net sales |
$ |
20,838 |
|
|
$ |
17,499 |
|
|
$ |
3,339 |
|
19.1 |
% |
Gross
profit |
$ |
3,546 |
|
|
$ |
1,762 |
|
|
$ |
1,794 |
|
101.8 |
% |
Gross margin |
|
17.00 |
% |
|
|
10.10 |
% |
|
|
|
|
Net
income (loss) |
$ |
1,148 |
|
|
$ |
-2,141 |
|
|
$ |
3,289 |
|
|
Earnings (loss) per share |
$ |
0.39 |
|
|
$ |
-0.74 |
|
|
$ |
1.13 |
|
|
MICRON SOLUTIONS, INC.EBITDA
RECONCILIATION (1)($ in thousands)
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
78 |
|
|
$ |
(644 |
) |
|
$ |
1,148 |
|
|
$ |
(2,141 |
) |
Income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
75 |
|
|
|
99 |
|
|
|
323 |
|
|
|
432 |
|
Deprecation and amortization |
|
321 |
|
|
|
355 |
|
|
|
1,296 |
|
|
|
1, 463 |
|
Share-based compensation |
|
49 |
|
|
|
1 |
|
|
|
120 |
|
|
|
219 |
|
Paycheck Protection Program Grant Income |
|
— |
|
|
|
— |
|
|
|
(1,213 |
) |
|
|
— |
|
Adjusted
EBITDA |
$ |
523 |
|
|
$ |
(188 |
) |
|
$ |
1673 |
|
|
$ |
(27 |
) |
Adjusted EBITDA margin % |
|
9.31 |
% |
|
|
— |
|
|
|
8.03 |
% |
|
|
— |
|
(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, and the terms,
conditions, timing and ability to close on 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; 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; 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 a 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
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 |
|
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