Record Revenue of $109.4 Million for
Fiscal 2012
Record Gross Margin of 5% for Fiscal
2012
Record Backlog of $139 Million at the End
of Fiscal 2012
Capstone Turbine Corporation (Nasdaq:CPST), the
world's leading clean technology manufacturer of microturbine
energy systems, today announced its financial results for the
fourth quarter and fiscal year ended March 31, 2012.
Fourth Quarter 2012 Highlights
- Total revenue of $30.1 million, up 10% quarter-over-quarter and
32% year-over-year
- Record product revenue of $24.9 million, up 14%
quarter-over-quarter and 30% year-over-year
- Shipments of 27.1 megawatts, compared to 23.5 megawatts in Q3
Fiscal 2012, and 20.5 megawatts in Q4 Fiscal 2011
- Gross margin of $0.9 million, or 3%; positive gross margin in
six of last seven quarters
- Positive cash flow of $4.5 million from Operations
- Record new orders of $48.7 million, up 109%
quarter-over-quarter
- Record product backlog of $139.0 million at the end of Fiscal
2012, up 21% quarter-over-quarter
Fiscal Year 2012 Highlights
- Total revenue of $109.4 million, an increase of 34% compared to
$81.9 million for Fiscal 2011
- Product revenue of $89.9 million, an increase of 36% compared
to $66.3 million for Fiscal 2011
- Shipments of 96.1 megawatts in Fiscal 2012 compared to 69.7
megawatts in Fiscal 2011
- Gross margin of $5.4 million, or 5% of revenue, compared to
gross loss of $0.5 million, or 1% of revenue for Fiscal 2011;
positive gross margin all four quarters of Fiscal 2012
- New orders of $122.5 million, up 42% year-over-year
- Product backlog up 31% year-over-year
- Strong balance sheet with $50.0 million in cash at the end of
Fiscal 2012 compared to $34.7 million at the end of Fiscal
2011
- Inventory turns improved to 4.1x at the end of Fiscal 2012 from
3.6x at the end of Fiscal 2011
Management Commentary
"Fiscal 2012 was a watershed year for Capstone as demonstrated
by our remarkable growth, global market expansion and improving key
performance indicators," said Darren Jamison, Capstone's President
and Chief Executive Officer. "Revenues have increased consistently
quarter-over-prior-year-quarter for the past 20 consecutive
quarters, and 2012 was our first year in company history with
positive gross margins for all four quarters. Accelerating order
momentum drove record backlog at year-end which equates to a
compounded annual growth rate of 34% since Fiscal 2009.
"Throughout Fiscal 2012, we continued to gain share in all five
of our major market verticals as new orders increased by 42% and
average selling prices increased by 32% for the year. In
Fiscal 2013, we are poised to benefit from the substantial
operating leverage in our model. Our engineering team is
working to further improve the electrical and emissions efficiency
of our products while our sales team focuses on building brand
awareness through strengthened distribution relationships.
Operationally, we are solidifying our production efficiencies by
implementing lean product manufacturing practices
company-wide. With ample room for production expansion as we
further our penetration in new and existing markets, Capstone is
making good progress towards profitability and business expansion,"
concluded Jamison.
Fourth Quarter 2012 Financial Summary
Revenue for the fourth quarter of Fiscal 2012 was $30.1 million,
an increase of 10% from $27.5 million for the third quarter of
Fiscal 2012, and an increase of 32% from $22.8 million for the
fourth quarter of Fiscal 2011. Capstone shipped 27.1 megawatts in
the fourth quarter of Fiscal 2012, compared to 23.5 megawatts in
the third quarter of Fiscal 2012 and 20.5 megawatts in the fourth
quarter of Fiscal 2011. Average revenue per unit increased for
the fourth quarter of Fiscal 2012 to approximately $167,000,
compared to $161,000 for the third quarter of Fiscal 2012 and
$114,000 for the fourth quarter of Fiscal 2011.
Capstone's backlog as of March 31, 2012 was $139.0 million, an
increase of $23.9 million, or 21%, from $115.1 million at December
31, 2011, and an increase of $32.6 million, or 31%, from $106.4
million at March 31, 2011.
Gross margin for the fourth quarter of Fiscal 2012 was $0.9
million, or 3% of revenue, compared to gross margin of $2.3
million, or 8% of revenue, for the third quarter of Fiscal 2012,
and gross loss of $1.1 million, or 5% of revenue, for the fourth
quarter of Fiscal 2011. The sequential decrease in gross
margin for the fourth quarter of Fiscal 2012 was primarily due to
year-end inventory adjustments, scrap costs, manufacturing overhead
and materials adjustments, as well as a moderate shift in product
mix. The Company has posted positive gross margins in six of
the last seven quarters.
Research and development expenses were $2.0 million for the
fourth quarter of Fiscal 2012, compared to $1.8 million for the
third quarter of Fiscal 2012 and $2.0 million for the fourth
quarter of Fiscal 2011.
Selling, general and administrative expenses were $7.4 million
for the fourth quarter of Fiscal 2012, compared to $8.3 million for
the third quarter of Fiscal 2012 and $7.2 million for the fourth
quarter of Fiscal 2011.
Capstone's net loss was $8.3 million, or $0.03 loss per share,
for the fourth quarter of Fiscal 2012, compared to $8.8 million, or
$0.03 loss per share, for the third quarter of Fiscal 2012, and
$28.8 million, or $0.12 loss per share, for the fourth quarter of
Fiscal 2011.Capstone's loss from operations for the fourth quarter
of Fiscal 2012 was $8.5 million, compared to $7.8 million for the
third quarter of Fiscal 2012 and $10.3 million for the fourth
quarter of Fiscal 2011.
The adoption of Accounting Standards Codification 815
"Derivatives and Hedging" affects the Company's accounting for
warrants with certain anti-dilution provisions. The Company
recorded a non-cash benefit of $0.5 million to change in fair value
of warrant liability during the fourth quarter of Fiscal 2012.
Capstone's net loss for the fourth quarter of Fiscal 2012
before considering the non-cash benefit to the change in warrant
liability would have been $8.8 million (calculated by subtracting
the $0.5 million change in warrant liability benefit from the $8.3
million reported net loss), or $0.03 loss per share (calculated by
subtracting $0.00 gain per share attributable to the change in
warrant liability benefit from the $0.03 loss per share reported).
The Company recorded a non-cash charge of $18.7 million to change
in fair value of warrant liability during the fourth quarter of
Fiscal 2011. Capstone's net loss for the fourth quarter of Fiscal
2011 before considering the non-cash charge to the change in
warrant liability would have been $10.1 million (calculated by
deducting the $18.7 million change in warrant liability charge from
the $28.8 million reported net loss), or $0.04 loss per share
(calculated by deducting a $0.08 loss per share attributable to the
change in warrant liability charge from the $0.12 loss per share
reported).
Fiscal Year 2012 Financial Summary
Revenue for the fiscal year ended March 31, 2012 was $109.4
million, an increase of 34% from $81.9 million for the prior fiscal
year. Capstone shipped 96.1 megawatts in Fiscal 2012 compared
to 69.7 megawatts in Fiscal 2011. Average revenue per unit
improved to approximately $143,400 for Fiscal 2012 compared to
$109,000 for Fiscal 2011.
Fiscal 2012 gross margin was $5.4 million, or 5% of revenue,
compared to Fiscal 2011 gross loss of $0.5 million, or 1% of
revenue. The increase in gross margin of $5.9 million was the
result of higher overall volume, increased average selling prices,
and lower direct material costs, offset by an increase in
production and service center expenses, warranty expense, royalty
expense and inventory charges.
Research and development (R&D) expenses were $8.2 million
for Fiscal 2012 compared to $7.0 million for Fiscal 2011. The
overall increase in R&D expenses of $1.2 million resulted from
increased salaries and supplies and reduced cost-sharing benefits,
offset by a decrease in consulting related expenses.
Selling, general and administrative (SG&A) expenses were
$28.9 million for Fiscal 2012 compared to $26.2 million for Fiscal
2011. The $2.7 million net increase in SG&A expenses
resulted from an increase in bad debt expense, professional
services, and marketing and consulting expenses, offset by a
decrease in salary and travel expense.
Capstone's net loss was $18.8 million, or $0.07 loss per share,
for Fiscal 2012, compared to a net loss of $38.5 million, or $0.16
loss per share, for Fiscal 2011.Capstone's loss from operations for
Fiscal 2012 was $31.7 million, or 6% lower than the $33.7 million
loss from operations for Fiscal 2011.
The adoption of Accounting Standards Codification 815
"Derivatives and Hedging" affects the Company's accounting for
warrants with certain anti-dilution provisions. The Company
recorded a non-cash benefit of $14.0 million to change in fair
value of warrant liability for Fiscal 2012. Capstone's net
loss for Fiscal 2012 before considering the non-cash warrant
liability benefit would have been $32.8 million (calculated by
subtracting the $14.0 million warrant liability benefit from the
$18.8 million reported net loss), or $0.12 loss per share
(calculated by subtracting a $0.05 gain per share attributable to
the warrant liability benefit from the $0.07 loss per share
reported). The Company recorded non-cash charges of $3.7
million to change in fair value of warrant liability during Fiscal
2011. Capstone's net loss for Fiscal 2011 before considering the
non-cash warrant liability charge would have been $34.8 million
(calculated by deducting the $3.7 million warrant liability charge
from the $38.5 million reported net loss), or $0.14 loss per share
(calculated by deducting a $0.02 loss per share attributable to the
warrant liability charge from $0.16 loss per share reported).
Liquidity and Capital Resources
At March 31, 2012, cash and cash equivalents totaled $50.0
million compared to $22.9 million at December 31, 2011 and $34.7
million at March 31, 2011. During the year ended March 31,
2012, Capstone used $21.4 million of cash in operating activities,
used $0.2 million of cash in investing activities and generated
$38.1 million in cash from financing activities compared to cash
used in operating activities of $21.9 million, cash used in
investing activities of $2.3 million and cash generated from
financing activities of $10.4 million during the year ended March
31, 2011. The funds generated from financing activities during the
year ended March 31, 2012 were primarily from proceeds related to a
registered direct placement of securities in March 2012 that
generated net proceeds of $23.1 million, the exercise of common
stock warrants and borrowings under the Company's credit
facility.
Conference Call and Webcast
The Company will host a conference call today, Thursday, June
14, 2012, at 1:45 p.m. Pacific Time (4:45 p.m.
Eastern). Access to the live broadcast and a replay of the
webcast will be available for 90 days through the Investor
Relations page on the Company's website:
www.capstoneturbine.com.
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 6,500 Capstone MicroTurbine(R) 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, Mexico City, Nottingham, Shanghai and Singapore.
The Capstone Turbine Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6212
"Capstone" and "Capstone MicroTurbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks mentioned are
the property of their respective owners.
Forward-Looking Statements
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about market
expansion; growth in revenue, gross margin and backlog; attaining
profitability; and improvement in certain key performance
indicators. 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 Form 10-K, Form 10-Q and other recent 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
investors not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press 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 press release or to reflect the occurrence of unanticipated
events.
– Financial Tables Follow
–
|
|
|
|
|
|
CAPSTONE TURBINE
CORPORATION AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(In thousands, except
share amounts) |
|
|
|
|
March 31,
2012 |
March 31,
2011 |
Assets |
|
|
Current Assets: |
|
|
Cash and cash
equivalents |
$49,952 |
$33,456 |
Accounts receivable, net of
allowance for doubtful accounts of $2,228 at March 31, 2012 and
$212 at March 31, 2011 |
18,576 |
19,329 |
Inventories |
18,881 |
19,267 |
Prepaid expenses and other
current assets |
2,974 |
2,369 |
Total current assets |
90,383 |
74,421 |
Property, plant and equipment, net |
4,833 |
5,939 |
Non-current portion of inventories |
1,313 |
1,454 |
Intangible assets, net |
2,811 |
3,574 |
Restricted cash |
— |
1,250 |
Other assets |
452 |
381 |
Total |
$99,792 |
$87,019 |
Liabilities and Stockholders'
Equity |
|
|
Current Liabilities: |
|
|
Accounts payable and accrued
expenses |
$23,061 |
$20,292 |
Accrued salaries and
wages |
1,716 |
1,555 |
Accrued warranty
reserve |
1,494 |
1,081 |
Deferred revenue |
2,995 |
1,153 |
Revolving credit
facility |
10,431 |
7,080 |
Current portion of notes
payable and capital lease obligations |
363 |
214 |
Warrant liability |
791 |
20,772 |
Total current
liabilities |
40,851 |
52,147 |
Long-term portion of notes payable and
capital lease obligations |
70 |
83 |
Other long-term liabilities |
254 |
309 |
Stockholders' Equity: |
|
|
Preferred stock,
$.001 par value; 10,000,000 shares authorized; none
issued |
|
|
Common stock,
$.001 par value; 415,000,000 shares authorized; 300,315,313 shares
issued and 299,317,493 shares outstanding at March 31, 2012;
259,544,911 shares issued and 258,595,291 shares outstanding at
March 31, 2011 |
300 |
260 |
Additional paid-in
capital |
790,901 |
747,962 |
Accumulated deficit |
(731,412) |
(712,648) |
Treasury stock, at cost;
997,820 shares at March 31, 2012 and 949,620 shares at
March 31, 2011 |
(1,172) |
(1,094) |
Total stockholders'
equity |
58,617 |
34,480 |
Total |
$99,792 |
$87,019 |
|
|
|
|
|
|
|
|
CAPSTONE TURBINE
CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(In thousands, except
per share amounts) |
|
|
|
|
|
Years Ended
March 31, |
|
2012 |
2011 |
2010 |
Revenue |
$109,371 |
$81,890 |
$61,554 |
Cost of goods sold |
103,944 |
82,427 |
69,999 |
Gross margin (loss) |
5,427 |
(537) |
(8,445) |
Operating expenses: |
|
|
|
Research and
development |
8,237 |
6,986 |
6,954 |
Selling, general and
administrative |
28,927 |
26,203 |
28,383 |
Total operating
expenses |
37,164 |
33,189 |
35,337 |
Loss from operations |
(31,737) |
(33,726) |
(43,782) |
Other income |
31 |
32 |
— |
Interest income |
2 |
4 |
8 |
Interest expense |
(857) |
(873) |
(673) |
Change in fair value of warrant
liability |
13,983 |
(3,667) |
(22,853) |
Loss before income taxes |
(18,578) |
(38,230) |
(67,300) |
Provision (benefit) for income
taxes |
186 |
240 |
(59) |
Net loss |
$ (18,764) |
$ (38,470) |
$ (67,241) |
Net loss per common share—basic and
diluted |
$ (0.07) |
$ (0.16) |
$ (0.34) |
Weighted average shares used to calculate
basic and diluted net loss per common share |
266,945 |
245,941 |
199,579 |
CONTACT: Capstone Turbine Corporation
Investor and Investment Media Inquiries:
818-407-3628
ir@capstoneturbine.com
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