Capstone Turbine Corporation (Nasdaq:CPST), the
world's leading clean technology manufacturer of microturbine
energy systems, today announced its financial results for the third
quarter of fiscal year 2015 ended December 31, 2014.
Third Quarter 2015 Highlights
- Revenue of $30.1 million, product revenue of $22.5 million
- Gross margin of $6.1 million, or 20.3% of revenue
- Record product backlog of $175.5 million and record Factory
Protection Plan (FPP) backlog of $61.0 million as of December 31,
2014
- Cash balance increased to $40.9 million as of December 31,
2014
President and Chief Executive Officer Darren Jamison commented,
"We delivered the highest quarterly gross margin percentage in the
history of Capstone during the third quarter, despite a 19% decline
in revenue year-over-year driven by continuing global macroeconomic
headwinds and the strong U.S. dollar. This is a performance
milestone that underscores the operational transformation and cost
structure improvements that we have implemented over the past
several years. In addition, the advancements in our aftermarket
services business have led to lower warranty expense and a decrease
in reliability repair as the C200 and C1000 Series product
continues to mature. We now have a record level of Factory
Protection Plan (FPP) backlog, representing 26% of our record total
product and FPP backlog at December 31, 2014, and the margins on
our FPP contracts continue to improve. Our distribution channels
get stronger every quarter, our cash balance remains very healthy,
and we are experiencing pockets of strength in key geographic and
vertical markets. Even as global macroeconomic forces continue to
impact our business, these company-specific trends bode well for
our performance going forward."
Third Quarter 2015 Financial Summary
Revenue for the third quarter of Fiscal 2015 was $30.1 million,
compared to $32.2 million for the second quarter of Fiscal 2015,
and $37.0 million for the third quarter of Fiscal 2014.
Capstone's product backlog as of December 31, 2014 was $175.5
million, compared to $172.3 million at September 30, 2014, and
$160.4 million at December 31, 2013.
Gross margin for the third quarter of Fiscal 2015 was $6.1
million, or 20.3% of revenue, compared to $5.2 million, or 16.3% of
revenue, for the second quarter of Fiscal 2015, and $7.3 million,
or 19.8% of revenue, for the third quarter of Fiscal
2014.
Research and development expenses were $2.4 million for the
third quarter of Fiscal 2015, compared to $2.1 million for the
second quarter of Fiscal 2015, and $2.3 million for the third
quarter of Fiscal 2014.
Selling, general and administrative expenses were $7.5 million
for the third quarter of Fiscal 2015, compared to $9.5 million for
the second quarter of Fiscal 2015 and $7.0 million for the third
quarter of Fiscal 2014.
Capstone's net loss was $3.9 million, or $0.01 loss per share,
for the third quarter of Fiscal 2015, compared to a net loss of
$6.5 million, or $0.02 loss per share, for the second quarter of
Fiscal 2015, and a net loss of $2.2 million, or $0.01 loss per
share, for the third quarter of Fiscal 2014. Capstone's loss
from operations for the third quarter of Fiscal 2015 was $3.8
million, compared to $6.4 million for the second quarter of Fiscal
2015, and $1.9 million for the third quarter of Fiscal 2014.
Liquidity and Capital Resources
At December 31, 2014, cash and cash equivalents totaled $40.9
million, compared to $40.8 million at September 30, 2014, and $31.6
million at December 31, 2013.
During the quarter ended December 31, 2014, cash used in
operating activities was $1.8 million and capital expenditures
totaled $0.2 million. This compares to cash used in operating
activities of $3.8 million and $0.2 million in capital expenditures
during the quarter ended December 31, 2013.
Conference Call and Webcast
The Company will host a conference call today, February 5, 2015,
at 1:45 p.m. Pacific Time (4:45 p.m. Eastern). Access to the
live broadcast and a replay of the webcast will be available for 30
days through the Investor Relations page on the Company's website:
www.capstoneturbine.com.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST) is the world's leading producer of low-emission
microturbine systems, and was the first to market commercially
viable microturbine energy products. Capstone Turbine has shipped
approximately 8,000 Capstone Microturbine systems to customers
worldwide. These award-winning systems have logged millions of
documented runtime operating hours. Capstone Turbine is a member of
the U.S. Environmental Protection Agency's Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A UL-Certified ISO 9001:2008 and ISO
14001:2004 certified company, Capstone is headquartered in the Los
Angeles area with sales and/or service centers in the New York
Metro Area, Mexico City, United Kingdom, Shanghai and
Singapore.
"Capstone" and "Capstone MicroTurbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks mentioned are
the property of their respective owners.
The Capstone Turbine Corporation logo is available here.
Forward-Looking Statements
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about improved
performance in spite of macroeconomic forces; aftermarket service
advancements; growth in backlog; improved distribution channels;
healthy cash balance and growth of key markets. Forward-looking
statements may be identified by words such as "expects,"
"objective," "intend," "targeted," "plan" and similar phrases.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties described in Capstone's Form
10-K, Form 10-Q and other recent filings with the Securities and
Exchange Commission that may cause Capstone's actual results to be
materially different from any future results expressed or implied
in such statements. Capstone cautions investors not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. Capstone undertakes no
obligation, and specifically disclaims any obligation, to release
any revisions to any forward-looking statements to reflect events
or circumstances after the date of this press release or to reflect
the occurrence of unanticipated events.
– Financial Tables Follow
–
CAPSTONE TURBINE
CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(In thousands, except
share amounts) |
(Unaudited) |
|
|
|
|
December 31, |
March 31, |
|
2014 |
2014 |
ASSETS |
|
|
Current Assets: |
|
|
Cash and cash equivalents |
$ 40,890 |
$ 27,859 |
Accounts receivable, net of
allowances of $5,311 at December 31, 2014 and $2,246 at March 31,
2014 |
21,580 |
28,019 |
Inventories |
24,896 |
18,102 |
Prepaid expenses and other
current assets |
3,207 |
2,217 |
Total current
assets |
90,573 |
76,197 |
Property, plant and equipment, net |
3,162 |
2,891 |
Non-current portion of inventories |
2,546 |
2,938 |
Intangible assets, net |
1,423 |
1,790 |
Other assets |
318 |
302 |
Total |
$ 98,022 |
$ 84,118 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current Liabilities: |
|
|
Accounts payable and accrued
expenses |
$ 23,452 |
$ 28,577 |
Accrued salaries and wages |
1,443 |
1,883 |
Accrued warranty reserve |
2,797 |
2,965 |
Deferred revenue |
6,596 |
2,657 |
Revolving credit facility |
14,345 |
13,228 |
Current portion of notes
payable and capital lease obligations |
559 |
444 |
Total current
liabilities |
49,192 |
49,754 |
Long-term portion of notes payable and
capital lease obligations |
125 |
201 |
Other long-term liabilities |
144 |
70 |
Commitments and contingencies |
|
|
Stockholders' Equity: |
|
|
Preferred stock, $.001 par
value; 10,000,000 shares authorized; none issued |
|
|
Common stock, $.001 par value;
515,000,000 shares authorized; 331,564,082 shares issued
and 330,308,204 shares outstanding at December 31, 2014;
311,520,567 shares issued and 310,377,293 shares outstanding at
March 31, 2014 |
332 |
312 |
Additional paid-in capital |
837,209 |
805,342 |
Accumulated deficit |
(787,466) |
(770,231) |
Treasury stock, at cost; 1,255,878 shares at
December 31, 2014 and 1,143,274 shares at March 31, 2014 |
(1,514) |
(1,330) |
Total stockholders' equity |
48,561 |
34,093 |
Total |
$ 98,022 |
$ 84,118 |
|
|
|
|
|
|
CAPSTONE TURBINE
CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(In thousands, except
per share data) |
(Unaudited) |
|
|
|
|
|
|
Three
Months Ended |
Nine
Months Ended |
|
December 31, |
December 31, |
|
2014 |
2013 |
2014 |
2013 |
Revenue |
$30,084 |
$37,003 |
$85,592 |
$96,667 |
Cost of goods sold |
23,978 |
29,668 |
70,827 |
81,117 |
Gross margin |
6,106 |
7,335 |
14,765 |
15,550 |
Operating expenses: |
|
|
|
|
Research and development |
2,355 |
2,267 |
6,737 |
6,558 |
Selling, general and
administrative |
7,508 |
6,991 |
24,815 |
21,200 |
Total operating
expenses |
9,863 |
9,258 |
31,552 |
27,758 |
Loss from operations |
(3,757) |
(1,923) |
(16,787) |
(12,208) |
Other (expense) income |
(31) |
(2) |
50 |
(22) |
Interest expense |
(134) |
(176) |
(421) |
(538) |
Change in fair value of warrant
liability |
— |
— |
— |
10 |
Loss before income taxes |
(3,922) |
(2,101) |
(17,158) |
(12,758) |
Provision for income taxes |
13 |
88 |
77 |
117 |
Net loss |
$ (3,935) |
$ (2,189) |
$ (17,235) |
$ (12,875) |
|
|
|
|
|
Net loss per common share—basic and
diluted |
$ (0.01) |
$ (0.01) |
$ (0.05) |
$ (0.04) |
|
|
|
|
|
Weighted average shares used to calculate net
loss per common share |
330,248 |
308,407 |
327,315 |
306,044 |
|
|
|
|
|
CONTACT: Investor and Investment Media Inquiries:
818-407-3628
ir@capstoneturbine.com
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