Capstone Turbine Reports Select Preliminary Q1 Fiscal 2018 Financial Results
July 17 2017 - 8:30AM
Book-to-Bill Ratio Continues to be Strong on New
Energy Efficiency Projects
In a continued effort to increase investor transparency,
Capstone Turbine Corporation (www.capstoneturbine.com)
(NASDAQ:CPST), the world’s leading clean technology manufacturer of
microturbine energy systems, announced its select preliminary first
quarter financial results. Orders for new products were strong for
the second straight quarter with a book-to-bill ratio of 1.3 to 1
for the first quarter of fiscal 2018 preliminarily indicating a
rebound in the business. Capstone booked $35.9 million in new
product orders for the six month period ended June 30, 2017
compared to $20.4 million in the preceding six months.
Capstone reported that its cash usage, excluding net proceeds
from equity transactions, during the first quarter of fiscal 2018
was $2.7 million lower compared to the same period last year on
similar quarterly revenue. Preliminary revenue for the first
quarter was approximately $19.2 million compared to $19.1 million
in the same period a year ago. The continued improvement in cash
usage on similar revenue was achieved by a combined improvement in
working capital management and tighter control of expenses.
In addition, Capstone set a new record for its Factory
Protection Plan (FPP) service contract revenue of approximately
$3.7 million for the first quarter of fiscal 2018 which is an
increase of 12% over the same period last year. Capstone has
identified growth of its FPP business as a critical part of its
profitability plan given the recurring revenue generated by FPP
service contracts which typically have higher margins.
Darren Jamison, President and Chief Executive Officer of
Capstone Turbine said, “I am pleased with our preliminary first
quarter of fiscal 2018 results as the business continues to
demonstrate improvement in each of our key focus areas.” Mr.
Jamison added, “Two straight quarters of robust new product orders
and record FPP service contract revenue are positive signs.
Additionally, with our concentrated focus on revenue growth and
working capital management, we continue to pave the strategic path
towards profitability as we leverage our new and significantly
lower operating cost structure.”
Total cash, cash equivalents and restricted cash decreased
approximately $0.6 million to $19.1 million as of June 30, 2017,
compared to $19.7 million at the end of the prior quarter. Capstone
also announced that borrowings on its line of credit decreased
approximately $2.0 million during the first quarter of fiscal 2018
and it received approximately $2.5 million from the at-the-market
offering program during the period.
During the quarter, Capstone secured orders from a diverse set
of customers including:
- One C600S for a small community in West Africa
- Thirty C65s for CHP projects across the United Kingdom
- Two C1000S units to provide power for two research facilities
in Kuwait
- Two C65s to be installed in a flare gas application in North
Africa
- One C600S for a wastewater treatment plant in upstate New
York
- One C1000S and one C600S for a hospital in the New York metro
area
- Two C1000S units for a commercial customer in Fiji
- Nine C65s to upgrade a large chicken egg farm in
California
- Two C1000S units to provide power from waste gas for an oil and
gas customer in California
“Diversifying our customer base and geographic presence remains
a primary focus for us as we look to increase our revenue from the
energy efficiency markets while our oil and gas business continues
to rebound,” added Mr. Jamison.
“As we continue our war on operating costs, we remain persistent
in identifying new opportunities to further decrease our cash burn,
reduce expenses, increase inventory turns, increase efficiency and
improve our overall cash cycle. Substantive progress stemming from
our cost cutting efforts, which started in the first quarter of
2016, has materialized as previously reported. We continue to
operate at these lower expense levels and have yet to harvest the
full benefits of our current plant consolidation efforts,” said Mr.
Jamison.
“Our efforts are concentrated on shortening our path to
profitability as we continually lower our business expenses, grow
our product, service and add-on accessory revenue, diversify our
geographic and vertical markets, launch new innovative products,
create new key partnerships and further emphasize firm balance
sheet management,” Mr. Jamison concluded.
The select financial results presented in this press release are
preliminary and may change. This preliminary financial information
includes calculations or figures that have been prepared internally
by management and have not been reviewed or audited by our
independent registered public accounting firm. There can be no
assurance that the company’s actual results for the period
presented herein will not differ from the preliminary financial
data presented herein and such changes could be material. This
preliminary financial data should not be viewed as a substitute for
full financial statements prepared in accordance with GAAP and is
not necessarily indicative of the results to be achieved for any
future periods.
Conference Call and Webcast
Capstone will host a live webcast August 9, 2017, at 1:45 PM
Pacific Time (4:45 PM Eastern Time) to provide the results of the
first quarter fiscal 2018 ended June 30, 2017. Capstone will
discuss its financial results and will provide an update on its
business activities. At the end of the conference call, Capstone
will host a question-and-answer session to provide an opportunity
for financial analysts to ask questions. Investors and interested
individuals are invited to listen to the webcast by logging on to
Capstone’s investor relation’s webpage at www.capstoneturbine.com.
A replay of the webcast will be available on the website for 30
days.
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 has shipped over
9,000 Capstone Microturbine systems to customers worldwide. These
award-winning systems have logged millions of documented runtime
operating hours. Capstone 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 9001:2015 and ISO 14001:2015 certified
company, Capstone is headquartered in the Los Angeles area with
sales and/or service centers in the United States, Latin America,
Europe, Middle East and Asia.
This press release contains “forward-looking statements,” as
that term is used in the federal securities laws, about the rebound
in business, profitability, lowering our business expenses, growing
both our product and service revenues, diversifying our business by
geography and vertical markets, launching new innovative products,
increasing add-on accessory sales, creating new key partnerships
and tightly managing our balance sheet. 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 Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
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