Confirmed Delivery of 5.2 MW U.S. Pipeline Project Fuels Capstone’s Push Towards its Near-Term Adjusted EBITDA Breakeven Mi...
October 31 2017 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(NASDAQ:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that it received
confirmation of the customer factory witness testing and shipment
of a large 5.2 megawatt (MW) U.S. pipeline project from its current
product backlog.
E-Finity Distributed Generation (E-Finity) previously secured
this shale gas order and has now confirmed delivery of all 5.2 MWs
in Capstone’s third quarter. E-Finity is Capstone’s exclusive
distributor for the Mid-Atlantic and Southeastern United States.
The order is comprised of two C1000 and four C800 Signature Series
microturbines, totaling 5.2 MWs of clean and reliable power. The
natural gas-fueled microturbines will provide power along a new
U.S. shale gas pipeline currently under construction.
“The confirmation of this large product order affords Capstone a
chance to securely expand product production rates during the
upcoming two quarters, thus fueling the opportunity for the revenue
growth necessary to support our Adjusted EBITDA breakeven model,”
said Darren Jamison, President and Chief Executive Officer of
Capstone. “We recently announced that we are expecting to see an
expansion of our accessories, parts and service business over the
next two quarters as well as lower expenses and significant bad
debt recovery. All of which, when added together, should
significantly contribute to our Adjusted EBITDA breakeven goal,”
added Mr. Jamison.
Capstone recently provided several updates on key elements of
its multi-point strategic plan to achieve near-term Adjusted EBITDA
breakeven:
- On October 10, 2017, Capstone announced a new plan to further
lower total operating expense by an additional $500 thousand per
quarter. As a result, the new management quarterly total operating
expense target is set at $5 million.
- On October 12, 2017, Capstone announced it was winding down its
$5.2 million field upgrade retrofit program and anticipated reduced
cash burn, additional revenue growth and gross margin expansion in
its aftermarket business.
- On October 18, 2017, Capstone announced entering into an
agreement with a new distribution partner for the Russian oil and
gas market in exchange for $6.4 million in cash. The initial
payments under the agreement, totaling $2.5 million, are scheduled
to be received over the next two quarters and will be recorded as
bad debt recovery.
- Last week Capstone announced the successful completion of its
consolidation plan for its two manufacturing facilities into a
single manufacturing facility allowing for an immediate increase in
operational efficiency and reduced facility expense when the exited
facility is subleased.
“The confirmed shipment of 5.2 MW for a large pipeline project
within this quarter, in conjunction with the significant progress
we have made recently on our multi-point strategic path, gives us a
substantial opportunity to accelerate our goal of reaching Adjusted
EBITDA breakeven in the near-term,” said Jayme Brooks, Capstone’s
Chief Financial Officer and Chief Accounting Officer.
“The Capstone management team is extremely focused on reaching
Adjusted EBITDA breakeven as quickly as possible through executing
our multi-point strategic plan and sees the upcoming December and
March 31st end quarters as opportunities for hitting the
milestone,” said Mr. Jamison. “Several factors will need to come
together over the next two quarters to reach our accelerated goals,
nonetheless management believes that we have implemented the
strategic plans that are necessary in order to achieve this very
significant milestone for all Capstone stakeholders,” added Mr.
Jamison.
Adjusted EBITDA is defined as net income before interest,
provision for income taxes, depreciation and amortization expense,
stock-based compensation expense and the change in warrant
valuation. Adjusted EBITDA is not a measure of our liquidity or
financial performance under GAAP and should not be considered as an
alternative to net income or any other performance measure derived
in accordance with GAAP, or as an alternative to cash flows from
operating activities as a measure of our liquidity.
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, including
statements about expansion of product production rates, potential
revenue growth and execution of Capstone’s strategic plan.
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
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