SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 13, 2019
Micron Solutions, Inc.
(Exact name of registrant as specified in its charter)
|
Delaware (State or other jurisdiction of Incorporation or organization) |
1-9731 (Commission File Number) |
72-0925679 (I.R.S. Employer Identification Number) |
25 Sawyer Passway
Fitchburg, MA 01420
(Address of principal executive offices and zip code)
(978) 345-5000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol Name of each exchange on which registered
Common Stock, $0.01 par value MICR New York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Conditions.
On November 13, 2019, Micron Solutions, Inc. (the "Company") announced its financial results for the three months ended September 30, 2019. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.01 to this Current Report on Form 8-K.
|
Item 9.01 |
Financial Statements and Exhibits. |
|
|
|
|
|
|
(d) |
Exhibits. |
|
|
Exhibit No. |
|
Description |
|
99.01 |
|
Press Release dated November 13, 2019. |
|
|
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, on the 13th day of November 2019.
|
|
MICRON SOLUTIONS, INC. |
||
|
|
|||
|
|
|
By: |
/s/ Wayne Coll |
|
|
|
|
Wayne Coll |
|
|
|
|
Chief Financial Officer |
|
|
|
|
(principal financial and accounting officer) |
Micron Solutions, Inc. Reports 2019 Third Quarter Results
November 14, 2019
Page 1 of 3
25 Sawyer Passway ● Fitchburg, Massachusetts 01420
Exhibit 99.01
FOR IMMEDIATE RELEASE
Micron Solutions, Inc. Reports
2019 Third Quarter Results
FITCHBURG, MA, November 14, 2019 – 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.
Micron Solutions, Inc. Reports 2019 Third Quarter Results
November 14, 2019
Page 2 of 3
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
Micron Solutions, Inc. Reports 2019 Third Quarter Results
November 14, 2019
Page 2 of 3
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 |
||