Capstone Companies Reports Second Quarter Record Revenues of $10.2 Million

- Achieved record half year revenues of $17 million
- Gross margin expanded 2 points to 25.9% of sales
- Operating leverage drove operating income growth to $1.3 million
- Strong backlog sets expectation for another record setting third quarter

DEERFIELD BEACH, FL -- August 14, 2017 -- InvestorsHub NewsWire -- Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer of innovative LED lighting solutions including power failure lighting, today reported its financial results for the second quarter 2017.
Stewart Wallach, Capstone’s CEO, commented, “Our record revenue and solid profitability delivered in the quarter, further demonstrates Capstone’s abilities to execute its growth strategy. The Company’s momentum continues to strengthen as our product placements continue to expand.”

Second Quarter Financial Summary
($ in thousands, except per share data)

	Q2 2017	Q2 2016	Change	% Change
Revenue	$10,220	$ 8,902	1,318	14.8%
Gross Profit	2,643	2,129	514	24.1%
Gross Margin	25.9%	23.9%
Operating Income	1,339	1,161	178	15.3%
Operating margin	13.1%	13.0%
Net Income Before Tax	$1,303	1,094	209	19.1%
Net Income	901	1,082	(181)	(16.7%)
Earnings Per Diluted Share	$ 0.019	($0.022)	NM	NM

Revenue growth in the second quarter of 2017 was the result of strong demand for the Company’s branded products including Capstone Lighting^Ò, Hoover^Ò Home LED and Duracell^Ò_.

Gross profit was 25.9% of revenue up 2% from the prior year period, resulting from the improved blended margin with the launch of the new products. Total operating expenses increased to $1.3 million from $967 thousand in the prior year period, due to the higher revenue volume and increased investment in promoting our licensed brands.
Diluted earnings per share was $0.019 in the second quarter of 2017.

2017 First Half Financial Summary
($ in thousands, except per share data)

	1H 2017	1H 2016	Change	% Change
Total Revenue	$16,972	$ 10,980	5,992	54.6%
Gross Profit	4,222	2,742	1,480	54.0%
Gross Margin	24.9%	25.0%
Operating Income	1,726	1,120	606	54.1%
Operating margin	10.2%	10.2%
Net Income Before Tax	$1,682	996	686	68.9%
Net Income	1152	983	169	17.2%
Earnings Per Diluted Share	$0.024	$0.020	NM	NM

Financial results for the first half of 2017 improved significantly over the prior-year period, reflecting the successful introduction of new products and the consumer acceptances of Hoover^Ò Home LED and Duracell^Ò brands. Compared to the same period 2016, revenue increased by nearly $6 million or 54.6%, Gross profit increased by $1.480 million or 54% up to $4.2 million and Net income before tax increased by $68 thousand or 68.9% up to $1.682 million.
Diluted earnings per share was $.024 up from $.020 in the same period last year.
Mr. Wallach added, “Our expanded product portfolio and related branding strategy drove record setting revenues and strong gross profit year to date. We are particularly pleased to report stable gross margins as our growth strategy is executed. Moreover, management is encouraged by the backlog buildup and look forward to maintaining momentum thru Q3. This is an exciting time for Capstone as the challenge of delivering growth, profitability continues to be met.”

Webcast and Teleconference to Review Results and Outlook
The Company will host a live webcast and conference call on Tuesday, August 15, 2017 at
10:30 a.m. Eastern Time. During the call, management will review the financial and operating results and discuss the Company’s corporate strategy and outlook. The conference call can be accessed by dialing (201) 689-8562. The listen-only audio webcast can be monitored at www.capstonecompaniesinc.com.
A telephonic replay will be available from 1:30 p.m. Eastern Time the day of the teleconference until Tuesday, August 22, 2017. To listen to the replay of the call, dial (412) 317-6671 and enter replay pin number 13664215. Alternatively, the archive of the webcast will be available on the Company’s website at www.capstonecompaniesinc.com. A transcript will also be posted to the website, once available.

About Capstone Companies, Inc.
Capstone Companies, Inc. is a public holding company that engages, through its wholly-owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Ltd., in the development, manufacturing, logistics, and distribution of consumer and institutional products, including the Hoover^® HOME LED lighting product line, to accounts throughout North America and in international markets. See www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings.
The Hoover trademark and logo are registered trademarks of Techtronic Floor Care Technology Limited and are used under license by Capstone Industries, Inc. All rights reserved.
© 2017 DURACELL Bethel, CT 06801. DURACELL is a registered trademark of Duracell U.S. Operations, Inc., used under license. All rights reserved.

FORWARD-LOOKING STATEMENTS:
This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. Such statements consist of words like “anticipate,” “expect,” “project,” “continue” and similar words. These statements are based on the Company’s and its subsidiaries’ current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include consumer acceptance of the Company’s products, its ability to deliver new products, the success of its strategy to broaden market channels and the relationships it has with retailers and distributors. Prior success in operations does not necessarily mean success in future operations. The ability of the Company to adequately and affordably fund operations and any growth will be critical to achieving and sustaining any expansion of markets and revenue. The introduction of new products or the expanded availability of products does not mean that the Company will enjoy better financial or business performance. The risks associated with any investment in Capstone Companies, Inc., which is a small business concern and a "penny-stock Company” and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the risks and uncertainties more fully described in the Company’s Annual and Quarterly Reports filed with the Securities and Exchange Commission. Capstone Companies, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Contents of referenced URLs are not incorporated into this press release.

For more information, contact
Company:
Aimee Gaudet
Corporate Secretary
(954) 252-3440, ext. 313

FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10-K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Capstone Companies, Inc. 350 Jim Moran Blvd, Suite 120 Deerfield Beach, FL 33442

FOR IMMEDIATE RELEASE

Capstone Companies Reports Second Quarter Record

Revenues of $10.2 Million

Achieved record half year revenues of $17 million
Gross margin expanded 2 points to 25.9% of sales
Operating leverage drove operating income growth to $1.3 million
Strong backlog sets expectation for another record setting third quarter

DEERFIELD BEACH, FL, August 14, 2017 Capstone Companies, Inc. (OTC: CAPC) (Capstone or the Company), a designer of innovative LED lighting solutions including power failure lighting, today reported its financial results for the second quarter 2017.

Stewart Wallach, Capstones CEO, commented, Our record revenue and solid profitability delivered in the quarter, further demonstrates Capstones abilities to execute its growth strategy. The Companys momentum continues to strengthen as our product placements continue to expand.

Second Quarter Financial Summary

($ in thousands, except per share data)

	Q2 2017	Q2 2016	Change	% Change
Revenue	$10,220	$8,902	1,318	14.8%
Gross profit	2,643	2,129	514	24.1%
Gross margin	25.9%	23.9%
Operating income	1,339	1,161	178	15.3
Operating margin	13.1%	13.0%
Net income before tax	$ 1,303	1,094	209	19.1%
Net income	901	1,082	(181)	(16.7%)
Earnings per diluted share	$ 0.019	($0.022)	NM	NM

Revenue growth in the second quarter of 2017 was the result of strong demand for the Companys branded products including Capstone Lighting, Hoover Home LED and Duracell.

Gross profit was 25.9% of revenue up 2% from the prior year period, resulting from the improved blended margin with the launch of the new products. Total operating expenses increased to $1.3 million from $967 thousand in the prior year period, due to the higher revenue volume and increased investment in promoting our licensed brands.

Diluted earnings per share was $0.019 in the second quarter of 2017.

2017 First Half Financial Summary
($ in thousands, except per share data)

	1H 2017	1H 2016	Change	% Change
Total revenue	$16,972	$10,980	5,992	54.6%
Gross profit	4,222	2,742	1,480	54.0%
Gross margin	24.9%	25.0%
Operating income	1,726	1,120	606	54.1%
Operating margin	10.2%	10.2%
Net income income before tax	$ 1,682	996	686	68.9%
Net income	1152	983	169	17.2%
Earnings (loss) per diluted share	$ 0.024	$0.020	NM	NM

Diluted earnings per share was $.024 up from $.020 in the same period last year.

Mr. Wallach added, Our expanded product portfolio and related branding strategy drove record setting revenues and strong gross profit year to date. We are particularly pleased to report stable gross margins as our growth strategy is executed. Moreover, management is encouraged by the backlog buildup and look forward to maintaining momentum thru Q3. This is an exciting time for Capstone as the challenge of delivering growth, profitability continues to be met.

Webcast and Teleconference to Review Results and Outlook

The Company will host a live webcast and conference call on Tuesday, August 15, 2017 at
10:30 a.m. Eastern Time. During the call, management will review the financial and operating results and discuss the Companys corporate strategy and outlook. The conference call can be accessed by dialing (201) 689-8562. The listen-only audio webcast can be monitored at www.capstonecompaniesinc.com.

A telephonic replay will be available from 1:30 p.m. Eastern Time the day of the teleconference until Tuesday, August 22, 2017. To listen to the replay of the call, dial (412) 317-6671 and enter replay pin number 13664215. Alternatively, the archive of the webcast will be available on the Companys website at www.capstonecompaniesinc.com. A transcript will also be posted to the website, once available.

About Capstone Companies, Inc.

Capstone Companies, Inc. is a public holding company that engages, through its wholly-owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Ltd., in the development, manufacturing, logistics, and distribution of consumer and institutional products, including the Hoover HOME LED lighting product line, to accounts throughout North America and in international markets. See www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings.

FORWARD-LOOKING STATEMENTS:

This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. Such statements consist of words like anticipate, expect, project, continue and similar words. These statements are based on the Companys and its subsidiaries current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include consumer acceptance of the Companys products, its ability to deliver new products, the success of its strategy to broaden market channels and the relationships it has with retailers and distributors. Prior success in operations does not necessarily mean success in future operations. The ability of the Company to adequately and affordably fund operations and any growth will be critical to achieving and sustaining any expansion of markets and revenue. The introduction of new products or the expanded availability of products does not mean that the Company will enjoy better financial or business performance. The risks associated with any investment in Capstone Companies, Inc., which is a small business concern and a "penny-stock Company and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the risks and uncertainties more fully described in the Companys Annual and Quarterly Reports filed with the Securities and Exchange Commission. Capstone Companies, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Contents of referenced URLs are not incorporated into this press release.

For more information, contact

Company:

Aimee Gaudet

Corporate Secretary

(954) 252-3440, ext. 313

FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10-K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.