FITCHBURG, Mass., Aug. 14, 2020 (GLOBE NEWSWIRE) -- 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, 2020.
In the second quarter of 2020, the Company reported $4,356,000 in revenue, as compared to $4,892,000 in the second quarter of 2019, an 11.0% decrease. Net Income for the second quarter of 2020 was $1,031,000 compared to a net loss of $471,000 in the second quarter of 2019. Gross Margin improved to 15.6% in the second quarter of 2020, compared to 10.4% in the second quarter of 2019. During the second quarter of 2020, the Company recognized $1,213,000 in other income after accounting for loan forgiveness related to the Payroll Protection Program (“PPP”) loan received early in the quarter.
Adjusted EBITDA for the second quarter of 2020, which excludes income from PPP loan forgiveness, in addition to the exclusion of certain expense items, was $290,000 compared to $123,000 in the second quarter of 2019, a 135.8% increase.
Outlook:
CEO Bill Laursen commented, “I’m pleased that we have shown continued progress through the second quarter of 2020, despite the impact of COVID-19 on our revenues. As an essential services provider, we were able to maintain full production to the medical and military markets while weathering the impacts in other markets. Despite unpredictable headwinds such as the postponement of elective surgeries, the impact on our customers of government-mandated shutdowns and the challenges the pandemic has posed to our workforce, we were still able to improve our bottom-line financial results.”
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 2020 (unaudited) | |||||||||||||||
| $ In thousands | Q2 2020 | Q2 2019
| $ Change
| % Change | |||||||||||
| Net sales | $ | 4,356 | $ | 4,892 | $ | (536 | ) | (11.0 | ) | ||||||
| Gross profit | $ | 679 | $ | 510 | $ | 84 | 12.8 | ||||||||
| Gross margin | 15.6 | % | 10.4 | % | |||||||||||
| Net Income (loss) | $ | 1,031 | $ | (471 | ) | $ | 1,502 | ||||||||
| Net Income (loss) per share | $ | 0.35 | $ | (0.16 | ) | $ | .51 | ||||||||
| MICRON SOLUTIONS, INC.
EBITDA RECONCILIATION (1) ($ in thousands) | |||||||
| Three Months Ended | |||||||
| June 30, | |||||||
| 2020 | 2019 | ||||||
| Net income (loss) | $ | 1,031 | $ | (471 | ) | ||
| Interest expense | 81 | 112 | |||||
| Depreciation and amortization | 334 | 374 | |||||
| Share-based compensation | 7 | 58 | |||||
| Non-cash incentive plan accruals | 50 | 50 | |||||
| Non-recurring (income) expenses | (1,213 | ) | - | ||||
| Adjusted EBITDA | $ | 290 | $ | 123 | |||
| Adjusted EBITDA margin % | 6.7 | % | 2.5 | % | |||
(1) Non-GAAP Financial Measures
In 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, our relationships with our customers and the duration and effect of Covid-19 on our results of operations and business 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. The factors that could cause actual results to differ materially include 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; the impact on the Company’s financial results due to economic uncertainty and disruption including, but not limited to, recent events concerning COVID-19; changes to regulations governing the forgiveness of the Company’s PPP Loan; 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; continued availability of supplies or materials used in manufacturing at competitive prices; the amount and timing of investments in capital equipment, sales and marketing, engineering and information technology resources; the ability to close and the timing of any such closing of the sale-lease back transaction. More information about the Company's financial results is included in the Company's most recent Annual Report on Form 10-K, and the Company’s Quarterly Report for the period ending June 30, 2020, 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
