Micron Solutions, Inc. Reports 2021 Second Quarter Results
16 August 2021 - 10:27PM
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,
2021.
In the second quarter of 2021, the Company
reported $5,389,735 in revenue, as compared to $4,355,769 in the
second quarter of 2020, a 23.7% increase. Net Income for the second
quarter of 2021 was $3,012,602 compared to net income of $1,030,968
in the second quarter of 2020. Gross Margin decreased to 8.1% in
the second quarter of 2021, compared to 15.6% in the second quarter
of 2020. During the second quarter of 2021, the Company recognized
a gain of $3,424,215 on the sale of fixed assets related to the
sale-leaseback of the Company’s main manufacturing facility. During
the second quarter of 2020, the Company had recognized $1,213,000
in other income related to forgiveness of its Payroll Protection
Program (“PPP”) loan.
Adjusted EBITDA for the second quarter of 2021,
which excludes the $3.4 million gain, was $22,000 compared to
$290,000 (which excludes the $1.2 million PPP loan forgiveness) in
the second quarter of 2020, an approximate 92% decrease.
Outlook:
CEO Bill Laursen commented, “During the second
quarter, the Company achieved several milestones: The
implementation of a new ERP system; the closing of the sale and
leaseback of our main manufacturing building, which generated net
proceeds of $3.9 million used to reduce bank and other debt; and
the completion a new credit facility which will provide a revolving
line of credit as well as a capital expenditures line.
Micron’s decreased adjusted EBITDA for the
quarter, despite an increase in sales, reflects investments being
made to strengthen our abilities to support new customers and
product development, with a particular emphasis on engineering
talent. We have several important initiatives underway which we
believe will begin to show fruition in early 2022. We are
optimistic about our product development activities and are
embarking on further investments, in the form of capital outlays,
for production equipment and facilities changes that will be needed
for expected increased production in the coming year.”
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 2021
(unaudited)
$ In
thousands |
Q2 2021 |
|
Q2 2020 |
$ Change |
% Change |
Net sales |
$ |
5,389 |
|
|
$ |
4,356 |
|
|
$ |
1,033 |
|
|
23.7% |
|
Gross
profit |
$ |
438 |
|
|
$ |
679 |
|
|
$ |
(241) |
|
|
25.9% |
|
Gross margin |
|
8.1% |
|
|
|
15.6% |
|
|
|
|
|
Net
income |
$ |
3,013 |
|
|
$ |
1,031 |
|
|
$ |
1,982 |
|
|
|
Earnings per share |
$ |
0.99 |
|
|
$ |
.35 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MICRON SOLUTIONS, INC.EBITDA
RECONCILIATION (1)($ in thousands)
|
|
Three Months Ended |
|
|
June 30, |
|
|
2021 |
|
|
|
2020 |
|
Net income |
$ |
3,013 |
|
|
$ |
1,031 |
|
Interest expense |
|
40 |
|
|
|
81 |
|
Depreciation and amortization |
|
290 |
|
|
|
334 |
|
Share-based compensation |
|
29 6 |
|
|
|
7 |
|
Non-cash incentive plan accruals |
|
64 |
|
|
|
50 |
|
Non-recurring (income) |
|
(3,414) |
|
|
|
(1,213) |
|
Adjusted EBITDA |
$ |
22 |
|
|
$ |
290 |
|
Adjusted EBITDA margin % |
|
0.4% |
|
|
|
6.7% |
|
(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, 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.
Non-recurring (income) includes the sale leaseback transaction in
the Second Quarter of 2021 and the PPP Loan forgiveness in the
Second Quarter of 2020. 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; 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 June 30, 2021
and for the quarter ended March 31, 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. William J. Laursen |
Chief Executive Officer |
978.345.5000 |
Micron Solutions (AMEX:MICR)
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