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Micron Solutions, Inc. Reports 2020 Fourth Quarter and Year End Results

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FITCHBURG, Mass., March 31, 2021 (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 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 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, 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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