Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, reports select preliminary fiscal
fourth quarter 2016 financial results.
Preliminary estimates for the fourth quarter ended March 31,
2016 are as follows: Revenue is approximately $19 million compared
to $21.5 million for the third quarter ended December 31, 2015.
Cash and cash equivalents, including restricted cash, are
approximately $17 million compared to $18.5 million as of December
31, 2015. In addition, the company recovered approximately $1.4
million in bad debt during the fourth quarter compared to $0.2
million during the third quarter ended December 31, 2015.
Darren Jamison, President and Chief Executive Officer of
Capstone Turbine, said, “As with many other companies that have
heavy exposure to the energy sector, we too have experienced a very
challenging year. However, despite the current revenue pressures,
the preliminary fourth quarter results illustrate another quarter
of balance sheet management. In particular, I am encouraged by
recent renewed shipments to our Russian distributor BPC and cash
recovery on a significant portion of the fully reserved EMI
receivable.”
Receiving new product orders from 18 different countries, the
company continued its geographic diversification during the fourth
quarter and booked total orders of approximately $20 million to
backlog during the quarter, representing a 1.8:1 book-to-bill
ratio. Accessories, Parts and Service revenue for the quarter was
near a record high as the global microturbine population and
factory protection plan revenue continues to expand.
“We continue to execute on our three-pronged recovery plan to
reduce operating expenses; diversify and increase revenue; and
improve gross margin. I am pleased with our product bookings in the
fourth quarter of fiscal 2016 as they represent the highest
book-to-bill ratio since the fourth quarter of fiscal 2012. We also
continued to make significant strides in diversifying our market
verticals. The combined heat and power market continued to show
solid growth and is now the largest segment of our business,” added
Mr. Jamison.
Mr. Jamison also noted a report published in March 2016 by the
U.S. Department of Energy (DOE) on the combined heat and power
market, titled “Combined Heat and Power (CHP) Technical Potential
in the United States.” He stated, “This report provides excellent
insight on the market potential and installed base for CHP in the
U.S. and is advantageous for Capstone as we plan the marketing
strategy of our new C1000 Signature Series, 82 percent efficient,
CHP, in-a-box product.”
Highlights of the report are included in an Appendix to this
press release. The full report is available at
http://energy.gov/sites/prod/files/2016/04/f30/CHP Technical
Potential Study 3-31-2016 Final.pdf
Relating to capitalization, during the quarter ended March 31,
2016, the company raised funds through the sale of 4.0 million
shares of common stock through its previously disclosed
at-the-market offering program. The net proceeds to the company
from the sale of the common stock, after deducting fees and other
offering expenses, were approximately $5.4 million.
Members of the company’s executive management also voluntarily
agreed to cancel and terminate a total of 65,509 unvested stock
options that had been previously issued to them. This cancellation
resulted in a one-time non-cash period expense of approximately
$0.7 million for the unrecognized stock-based compensation expense
that would have been recognized over the weighted average remaining
service period of approximately 2.3 years had the options continued
to vest.
The company expects to issue its full financial results for the
fiscal year and fourth quarter ended March 31, 2016 no later than
June 14, 2016.
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
over 8,700 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, United Kingdom, Mexico City, Shanghai and
Singapore.
The Capstone Turbine Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6212
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about the success
of our strategic initiatives and cost-cutting measures, and the
growth potential of the CHP market. 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 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 readers not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this 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 release or to reflect the
occurrence of unanticipated events.
"Capstone" and "Capstone MicroTurbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks mentioned are
the property of their respective owners.
CONTACT:Capstone Turbine CorporationInvestor and investment
media inquiries:818-407-3628ir@capstoneturbine.com
INVESTORS:Dian Griesel Int’lCheryl Schneider/Tom
Caden212-825-3210
Appendix:
Excerpts from the U.S. Department of Energy’s
report titled:
“Combined Heat and Power (CHP) Technical
Potential in the United States”
(http://energy.gov/sites/prod/files/2016/04/f30/CHP Technical
Potential Study 3-31-2016 Final.pdf).
The U.S. Department of Energy’s (DOE) recent report on the
combined heat and power (CHP) market published in March 2016 states
that CHP currently represents approximately eight percent of U.S.
generating capacity, compared to over 30 percent in countries such
as Denmark, Finland and the Netherlands. Its use in the U.S. has
been limited, particularly in recent years, by a host of market and
non-market barriers. Nevertheless, the outlook for increased CHP
use is bright as policymakers at the federal and state levels are
recognizing the potential benefits and the role that this
technology could play in providing clean, reliable, cost-effective
energy services to industry and businesses.
The DOE report states that there are several emerging market
drivers contributing to current CHP growth, including:
Lower Operating Costs: Compared to conventional
power generation techniques.
Environmental Regulations: Recent environmental
regulations have created opportunities for CHP to help meet
compliance goals.
Boiler MACT Rules: The national emissions
standard for hazardous air pollutants (known as the Boiler MACT
rule) requires affected industrial and commercial boilers to meet
new emissions limits. Converting existing boilers to natural gas
CHP can help facilities to achieve compliance.
Resiliency: In the event of a man-made or
natural disaster that causes a grid outage, CHP systems can be
configured to be more resilient and reliable than traditional
backup generators. During recent storm events such as Hurricane
Sandy, CHP systems enabled a number of critical infrastructure
facilities to continue their operations when the electric grid went
down.
Policy Support: A number of federal and state
policies and financial incentives have encouraged the market for
CHP. At the federal level, currently there is a 10 percent
investment tax credit for CHP.
Utility Interest: Due to increasing customer
awareness of distributed generation generally, utility interest in
CHP has increased. Many utilities are proactively engaging with new
stakeholders and finding ways to incorporate CHP into energy
efficiency programs and plans for new generation.
In August 2012, the White House released an executive order
creating a goal of adding 40 gigawatts of new CHP capacity. At the
state level, several state climate and energy plans include CHP as
a way to meet clean energy goals.
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