Quarterly Revenue Was Approximately 91% of Target
Adjusted EBITDA Breakeven Revenue Goal
Capstone Turbine Corporation (www.capstoneturbine.com)
(NASDAQ:CPST), the world’s leading clean technology manufacturer of
microturbine energy systems, continues to provide increased
transparency by announcing select preliminary financial results for
its fiscal third quarter ended December 31, 2017.
Capstone’s preliminary third quarter results reflect
management’s continued execution of the initiatives to diversify
and increase revenue, increase service gross margin and further
reduce operating expenses to achieve Adjusted EBITDA breakeven as
quickly as possible. Capstone’s preliminary third quarter revenue
was approximately 91% of its $25 million Adjusted EBITDA breakeven
quarterly revenue target compared to 79% in the second quarter of
fiscal 2018.
Total revenue for the third quarter of fiscal 2018 increased 15%
to approximately $22.7 million from $19.8 million in the second
quarter of fiscal 2018 and increased 12% from $20.2 million in the
same period last year. Total revenue for the nine months of fiscal
2018 increased 14% to approximately $61.8 million from $54.2
million in the same period last year, indicating a meaningful
rebound in revenue.
Cash usage during the first nine months of fiscal 2018,
excluding net proceeds from equity transactions, was $5.6 million
lower compared to the same period last year, representing a 33%
reduction. This reflects management’s tight cost control
initiatives. Total cash, cash equivalents and restricted cash as of
December 31, 2017, were approximately $16.5 million, compared to
$15.2 million as of September 30, 2017, and $19.4 million as of
December 31, 2016.
“Our select preliminary third quarter and nine-month
year-to-date results are in line with our internal plans and
represent a substantial improvement over last year. These results
signify that we are making noteworthy progress towards our Adjusted
EBITDA breakeven milestone for the first time in our company’s
history,” said Darren Jamison, President and Chief Executive
Officer of Capstone.
“When our actual third quarter results are announced, we
anticipate that they will show significant progress towards our
stated profitability goals as a result of higher service margins;
increased bad debt collections; the recent reduction in force and
the successful completion of our field reliability retrofit program
during the quarter. We believe these strategic initiatives, when
combined with our double-digit revenue growth for the quarter, will
yield significantly improved results over the same period last
year,” added Mr. Jamison.
Capstone also announced that borrowings on the line of credit
facility were at $11.0 million as of December 31, 2017, compared to
$9.6 million at the end of the prior quarter and that it received
approximately $4.4 million from financing activities during the
third quarter of fiscal 2018.
Capstone’s preliminary results show new product orders of
approximately $10.2 million during the fiscal third quarter, for a
0.7:1 book-to-bill ratio, compared to $11.5 million of new product
orders received and booked during the year-ago third quarter, which
was a 0.9:1 book-to-bill ratio. Total book-to-bill ratio on nine
months fiscal 2018 year-to-date basis was 0.8:1 compared to 0.9:1
for the same period last year.
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.
Adjusted EBITDA is defined as net income before interest,
provision for income taxes, depreciation and amortization expense,
stock-based compensation expense, the change in warrant valuation
and restructuring charges. 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.
Conference Call and Webcast
Capstone will host a live webcast February 5, 2018, at 1:45 PM
Pacific Time (4:45 PM Eastern Time) to provide the results of the
third quarter fiscal 2018 ended December 31, 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.
Forward-Looking Statements
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 expenses, growth in our
revenues, progress towards our Adjusted EBITDA breakeven milestone,
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 CorporationInvestor and investment
media inquiries:818-407-3628ir@capstoneturbine.com
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