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Micron Solutions, Inc. Reports 2019 Third Quarter Results

FITCHBURG, Mass., Nov. 13, 2019 (GLOBE NEWSWIRE) -- Micron Solutions, Inc. (NYSE American: 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 third quarter ended September 30, 2019.

In the third quarter 2019, the Company reported $4,331,000 in revenue, as compared to $5,002,000 in the third quarter of 2018, a 13.4% decrease. The net loss for the period was $507,000 compared to $77,000 in the third quarter of 2018. Adjusted EBITDA for the period was $80,000, compared to $410,000 in the third quarter of 2018.

Outlook:

CEO Bill Laursen commented, “During the third quarter we announced binding commitments of $3.7M with a leading medical technology company and a $1M annual contract award as part of a five-year program with an innovation leader in the defense market. We are currently readying these orders for production and expect these, and other anticipated pipeline opportunities, will be contributive in 2020.”  CFO Wayne Coll commented, “Revenue did not include the addition of the significant commitments from new customers announced during the quarter. We plan to start shipping to our new customers 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 websites:

http://www.micronsolutionsinc.com and http://www.micronproducts.com 

FINANCIAL TABLES FOLLOW.

Third Quarter 2019 Review

                     
$ In thousands Q3 2019
  Q3 2018
  $  Change   % Change
Net sales $ 4,331     $ 5,002     $ (671 )   -13.4
Gross profit $ 517     $ 735     $ (218 )   -29.7
  Gross margin   11.9 %     14.7 %        
Net loss $ (507 )   $ (77 )   $ (430 )    
Loss per share $  (0.18 )   $  (0.03 )   $ (0.15 )    


MICRON SOLUTIONS, INC.
EBITDA RECONCILIATION (1)
($ in thousands)

           
    Three Months Ended
    September 30,
    2019       2018  
Net income (loss) $  (507 )   $   (77 )
  Income tax benefit    —        
  Other (income) expense   17         (12 )
  Interest expense   110       101  
  Depreciation and amortization    358       361  
  Share-based compensation   52       28

 
 
  Incentive plan accruals   50        
Non-recurring expenses         9  
Adjusted EBITDA $ 80     $ 410  
Adjusted EBITDA margin %   1.8 %     8.2 %

(1) Non-GAAP Financial Measures
In addition to reporting net 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, other income and expense, interest, depreciation and amortization, share-based compensation expense and certain non-recurring 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 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. The factors that could cause actual results to differ materially include 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; 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; continued availability of supplies or materials used in manufacturing at competitive prices; and the amount and timing of investments in capital equipment, sales and marketing, engineering and information technology resources.  More information about the Company's financial results is included in the Company's most recent Annual Report on Form 10-K and other subsequent filings with the Securities and Exchange Commission.

     
For more information, contact:    
   
Mr. Wayne Coll  
Chief Financial Officer  
978.345.5000