Micron Solutions, Inc. Reports 2021 Second Quarter Results

FITCHBURG, Mass., Aug. 16, 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 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