FITCHBURG, Mass., May 17, 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 first quarter ended March 31, 2021.
In the first quarter of 2021, the Company reported $5,761,000 in revenue, as compared to $5,223,000 in the first quarter of 2020, a 10.1% increase. Net Income for the first quarter of 2021 was $115,000 compared to a net loss of $295,000 in the first quarter of 2020. Gross Margin improved to 16.1% in the first quarter of 2021, compared to 14.1% in the first quarter of 2020.
Adjusted EBITDA for the first quarter of 2021 was $550,000 compared to $162,000 in the first quarter of 2020, an approximate 340% increase.
CEO Bill Laursen commented, “We are pleased with our performance in the first quarter of 2021, which included strong sales growth, improvement in gross margins and significant increases in net income and Adjusted EBITDA. As an essential services provider, we believe that we have continued to fare well given the uncertainty of the pandemic. We are encouraged by the increase in business development activities as the economy appears to be entering a period of strong growth. While we, like many companies, have had to contend with commodity shortages and difficulties expanding our workforce, we believe we are well positioned to take advantage of the opportunities before us.”
CFO Wayne Coll commented, “On May 14, 2021, we executed a purchase and sale agreement for the sale and leaseback of our main manufacturing facility at 41 Sawyer Passway, with expected closing proceeds of $3.8 Million, which will be used to reduce bank and other debt. Following the termination of the discussions with the original potential buyer in February 2021, the Company received several additional offers for the property, including an offer from an entity led by certain non-management members of the Company’s Board of Directors. In response to this offer, the Board formed an independent director committee to evaluate the various potential offers. After review and further negotiation, the independent committee determined that the offer that included the non-management members of the Board provided more favorable terms for the Company than the alternative proposals. The sale leaseback transaction includes a triple net lease on our 83,093 square foot facility with a ten-year term with four five-year extension options and initial rent of $31,506 per month. Subject to buyer’s satisfaction of completion of due diligence, customary closing conditions and bank approval, the sale leaseback transaction is expected to close in June 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.
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(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, expected rise in economic activity, 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 Quarterly Report for the quarter ended March 31, 2021 and our most recent 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:
Mr. Wayne Coll
Chief Financial Officer