Micron Solutions, Inc. Reports First Quarter 2022 Results
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 innovative, high-tech components requiring precision machining and injection molding, announced its financial results for its first quarter ended March 31, 2022.
In the first quarter of 2022, the Company recorded net sales of $4,683,268, compared to $5,761,023 in the first quarter of 2021, a decrease of 18.7%. This decrease is due to reductions in our automotive and defense segment as we continue to strengthen our position in the medical sector, lower one-time tooling and engineering revenues and the continued decline in the level of elective surgeries which impacted some of our orthopedic implant customers as compared to the first quarter of 2021. The net loss for the first quarter of 2022 was ($720,355) compared to a net profit 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.
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 increased customer activity in our key segments. Gross margin improved 340 basis points from gross margins of 5.1% reported in the fourth quarter of 2021, and adjusted EBITDA improved $126,000 from ($517,000) reported in the fourth quarter of 2021.
CEO Bill Laursen said, “We are encouraged by improved revenue, gross margin and earnings in the first quarter of 2022 which we believe reflects the start of the recovery from the effects of the COVID 19 pandemic. We have made investments to manage supply chain issues, deepen our relationships with our customers, and improve our efficiency and resulting levels of profitability. We are seeing continued 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 innovative, highly engineered medical device components requiring precision machining and molding by injection. The Company also manufactures under contract 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 and conductive resin coated sensors used as consumable components in the manufacture of integrated disposable electrophysiological sensors. The company’s growth strategy is to build a premier supplier specializing in plastic injection molding and high-tech medical devices and components requiring precision machining.
The Company regularly posts news and other important information on its website: http://www.micronsolutions.com
THE FINANCIAL TABLES FOLLOW
|First quarter 2022 and 2021 and fourth quarter 2021 (unaudited)|
|In thousands of dollars||Q1 2022||Q1 2021||Change from year to year in $||Year-over-year % change||Q4 2021||Quarter-over-quarter dollar change|
|Net profit (loss)||$||(720||)||$||115||$||(835||)||$||(928||)||$||208|
|Earnings (loss) per share||$||(0.23||)||$||0.04||$||(0.27||)||$||(0.30||)||$||0.07|
MICRON SOLUTIONS, INC.
RECONCILIATION OF ADJUSTED EBITDA (1)
(in thousands of dollars)
|Q1 2022||Q1 2021||Q4 2021|
|Net profit (loss)||$||(720||)||$||115||$||(928||)|
|Depreciation and amortization||225||296||255|
|Gain on sale of fixed assets||8||—||82|
|Adjusted EBITDA margin %||-8.40||%||9.60||%||-11.82||%|
(1) Non-GAAP Financial Measures
In addition to presenting net income, a generally accepted accounting principles (“GAAP”) measure in the United States, this press release contains information on adjusted EBITDA (profit from continuing operations adjusted for income taxes, interest, depreciation and amortization, stock-based compensation expense and certain one-time gains on sale of capital assets), which is a non-GAAP measure. Equity-based compensation includes attendance fees paid through equity versus cash awards as well as non-cash incentives and the gain/loss on sale of fixed assets includes the gain resulting from the transaction of sale-leaseback of our main facility in 2021. The Company believes that Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its results of operations. Adjusted EBITDA is not calculated by applying GAAP. Accordingly, it should not be considered a substitute for the GAAP measure of net profit (loss) and, accordingly, should not be used in isolation, but in conjunction with the GAAP measure. Use of any non-GAAP measure may produce results that differ 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 relating to projections, offering activity and liquidity requirements, are based on the current expectations of Micron Solutions, Inc. (“our” or the “Company”) which involve a number of risks and uncertainties and should not be taken as guarantees of future performance. Therefore, actual results may differ materially from what is expressed or implied by such forward-looking statements. Factors that could materially affect our results of operations, financial condition, performance or achievements include, but are not limited to, our ability to obtain and maintain customer order volumes that represent significant proportions of net sales ; our ability to maintain our pricing model, offset higher costs through product price increases and/or decreases in our selling costs; variability in customer delivery requirements; the level and ability to generate sales of higher margin products and services; our ability to manage our level of indebtedness, which higher level of indebtedness could make the Company susceptible to the effects of economic downturns and limit our ability to react to changes in the economy or our industry; failure to meet financial and other covenants of 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 Russian-Ukrainian military conflict; reliance on revenue from exports and the impact on financial results due to economic uncertainty or foreign market downturns; volatility in raw material and energy prices and our ability to offset higher costs with price increases; the continued availability of supplies or materials and components used in manufacturing at competitive prices, including the management of supply chain disruptions and the availability of certain raw materials; variations in the mix of products sold; maintain 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 IT resources. The Company undertakes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise. Further information on the Company’s financial results is included in our most recent Quarterly Report for the fiscal quarter ended March 31, 2022 and 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|