Micron Solutions, Inc. Reports Second Quarter 2022 Results
09 August 2022 - 6:35AM
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 financial results for its second quarter ended
June 30, 2022.
For the second quarter of 2022, the Company
reported $6,536,326 in net sales, as compared to $5,389,735 in the
second quarter of 2021, a 21.3% increase. This increase is due to
stronger results in our core medical market. Net loss for the
second quarter of 2022 was ($210,797) compared to net income of
$3,012,992 in the second quarter of 2021 which included a
$3,414,000 gain from the sale/leaseback transaction that took place
in the second quarter of 2021. Gross margin increased to 13.9% in
the second quarter of 2022, compared to 8.1% in the second quarter
of 2021. Adjusted EBITDA for the second quarter of 2022 was
$106,000 compared to $0 in the second quarter of 2021.
Compared to the first quarter of 2022, net sales
for the second quarter of 2022 increased 40% from net sales of
$4,683,268 reported in the first quarter of 2022. Gross margin in
the second quarter of 2022 improved by 5.4 percentage points to
13.9% from gross margins of 8.5% reported in the first quarter of
2022. Adjusted EBITDA improved by $513,000 from ($407,000) reported
in the first quarter of 2022.
CEO Bill Laursen commented, “We are encouraged
by the continued improvement in revenue, gross margin, and earnings
in the second quarter of 2022, which we believe reflects stronger
external market demand and reinforces our strategic decision to
rationalize the markets that we serve and supports our increased
focus on the medical market. We continue to manage through a
challenging and fast changing cost environment driven by supply
chain and labor constraints and inflationary pressures. Despite
these challenges, we see our supplier and customer relationships
becoming deeper.”
About Micron Solutions, Inc.
Micron Solutions, Inc., through its wholly-owned
subsidiary, Micron Products, Inc., is a diversified contract
manufacturing organization that produces highly-engineered,
innovative medical device components requiring precision machining
and injection molding. The Company also contract manufactures
components, devices and equipment for military, law enforcement,
industrial and automotive applications. In addition, the Company is
a market leader in the production and sale of silver/silver
chloride coated and conductive resin sensors used as consumable
component parts in the manufacture of integrated disposable
electrophysiological sensors. The Company’s strategy for growth is
to build a best-in-class contract manufacturer with a specialized
focus on plastic injection molding and highly-engineered medical
devices and components requiring precision machining.
The Company routinely posts news and other
important information on its website:
http://www.micronsolutions.com
FINANCIAL TABLES FOLLOW
Second
Quarter 2022 and 2021 and First Quarter 2022
(unaudited) |
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$ In thousands |
Q2 2022 |
Q2 2021 |
Year over Year$ Change |
Year over Year% Change |
Q1 2022 |
Quarter over Quarter$ Change |
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Net sales |
$ |
6,536 |
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$ |
5,390 |
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$ |
1,146 |
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21.3% |
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$ |
4,683 |
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$ |
1,853 |
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Gross profit |
$ |
910 |
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$ |
438 |
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$ |
472 |
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107.8% |
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$ |
397 |
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$ |
513 |
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Gross margin |
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13.9% |
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8.1% |
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5.8% |
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8.5% |
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5.4% |
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Net income (loss) |
$ |
(211) |
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$ |
3,013 |
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$ |
(3,224) |
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$ |
(720) |
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$ |
509 |
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Earnings (loss) per share |
$ |
(0.07) |
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$ |
0.99 |
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$ |
(1.06) |
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$ |
(0.23) |
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$ |
0.16 |
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MICRON SOLUTIONS, INC.ADJUSTED EBITDA
RECONCILIATION (1)($ in thousands)
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Q2 2022 |
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Q2 2021 |
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Q1 2022 |
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Net income (loss) |
$ |
(211) |
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$ |
3,013 |
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$ |
(720) |
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Interest expense |
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34 |
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40 |
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27 |
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Depreciation and amortization |
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219 |
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290 |
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225 |
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Share-based compensation |
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74 |
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71 |
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69 |
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Gain on sale of fixed assets |
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(10) |
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(3,414) |
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(8) |
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Adjusted EBITDA |
$ |
106 |
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$ |
- |
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$ |
(407) |
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Adjusted EBITDA margin % |
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1.6% |
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0.0% |
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-8.7% |
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(1) Non-GAAP Financial
Measures
In addition to reporting net income, a U.S.
generally accepted accounting principles (“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 gain on sale of fixed assets), 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 and the Gain/Loss on sale of fixed assets includes the
gain resulting from the sale/leaseback transaction of our primary
facility in 2021. 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 statements related to projections, bid activity and
liquidity needs, 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 product price
increases and/or decreases to 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, which higher debt levels 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 operations and
financial results due to economic uncertainty and disruption
including, but not limited to, the COVID-19 pandemic and the
ongoing Ukraine-Russian military conflict; 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 and components 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; maintaining regulatory quality standards applicable
to our manufacturing and quality processes; 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 our most recent Quarterly Reports for the
fiscal quarter ended June 30, 2022 and the fiscal quarter ended
March 31, 2022, and in our Annual Report for the fiscal year ended
December 31, 2021, which are posted at
https://www.otcmarkets.com/stock/MICR/ and
https://micronsolutions.com/.
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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