FITCHBURG, Mass., May 16, 2022 (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 financial results for its first quarter ended March 31, 2022.
In the first quarter of 2022, the Company reported $4,683,268 in net sales, as compared to $5,761,023 in the first quarter of 2021, a 18.7% decrease. This decrease is due to reductions from our automotive and defense segment as we continue to strengthen our position in the medical sector, lower non-recurring tooling and engineering revenue, and a continued lower level of elective surgeries which impacted some of our orthopedic implant customers as compared to the first quarter of 2021. Net loss for the first quarter of 2022 was ($720,355) compared to net income of $114,939 in the first quarter of 2021. Gross margin decreased to 8.5% in the first quarter of 2022, compared to 16.1% in the first quarter of 2021. Adjusted EBITDA for the first quarter of 2022 was ($391,000) compared to $550,000 in the first quarter of 2021.
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Compared to the fourth quarter of 2021, net sales for the first quarter of 2022 increased 7% from net sales of $4,374,690 reported in the fourth quarter of 2021 due to an increase in customer activity in our key segments. Gross margin improved by 340 basis points from gross margins of 5.1% reported in the fourth quarter of 2021, and adjusted EBITDA improved by $126,000 from ($517,000) reported in the fourth quarter of 2021.
CEO Bill Laursen commented, ”We are encouraged by the revenue, gross margin, and earnings improvement in the first quarter of 2022 which we believe reflects the beginning of the recovery from the effects of the COVID 19 pandemic. We have made investments to manage supply chain issues, deepen our customer relationships and improve our efficiency and resulting profitability levels. We see continuing strengthening of our sales pipeline with current and new customers.”
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
| First Quarter 2022 and 2021 and Fourth Quarter 2021 (unaudited) | |||||||||||||||||||||
| $ In thousands | Q1 2022 | Q1 2021 | Year over Year $ Change | Year over year % Change | Q4 2021 | Quarter over Quarter $ Change | |||||||||||||||
| Net sales | $ | 4,683 | $ | 5,761 | $ | (1,078 | ) | -18.7 | % | $ | 4,375 | $ | 308 | ||||||||
| Gross profit | $ | 397 | $ | 929 | $ | (532 | ) | -57.3 | % | $ | 223 | $ | 174 | ||||||||
| Gross margin | 8.5 | % | 16.1 | % | 5.1 | % | |||||||||||||||
| Net income (loss) | $ | (720 | ) | $ | 115 | $ | (835 | ) | $ | (928 | ) | $ | 208 | ||||||||
| Earnings (loss) per share | $ | (0.23 | ) | $ | 0.04 | $ | (0.27 | ) | $ | (0.30 | ) | $ | 0.07 | ||||||||
MICRON SOLUTIONS, INC.
ADJUSTED EBITDA RECONCILIATION (1)
($ in thousands)
| Q1 2022 | Q1 2021 | Q4 2021 | |||||||||
| Net income (loss) | $ | (720 | ) | $ | 115 | $ | (928 | ) | |||
| Interest expense | 27 | 44 | 21 | ||||||||
| Depreciation and amortization | 225 | 296 | 255 | ||||||||
| Share-based compensation | 69 | 95 | 53 | ||||||||
| Gain on sale of fixed assets | 8 | — | 82 | ||||||||
| Adjusted EBITDA | $ | (391 | ) | $ | 550 | $ | (517 | ) | |||
| Adjusted EBITDA margin % | -8.40 | % | 9.60 | % | -11.82 | % | |||||
(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 Report for 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 http://micronsolutions.com/.
| For more information, contact: | ||
| Mr. Glen Bunnell | ||
| Chief Financial Officer | ||
| 978.345.5000 | ||
