Capstone Companies, Inc. Reports First Quarter 2017 Revenue of $6.8 Million

Date : 05/15/2017 @ 4:00PM
Source :InvestorsHub NewsWire
Stock : Capstone Companies, Inc. (QB) (CAPC)
Quote : 0.59  0.0 (0.00%) @ 4:30PM

Capstone Companies, Inc. Reports First Quarter 2017 Revenue of $6.8 Million

·         First quarter revenue of $6.8 million more than tripled over the 2016 first quarter, and exceeded guidance  of $5.5 million provided on April 25, 2017
·         Strong backlog drives expectation for another record setting second quarter
·         Growth resulting from five new product launches

DEERFIELD BEACH, FL -- May 15, 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 first quarter 2017.
Stewart Wallach, Capstone’s CEO, commented, “Our brand strategy is working and has created differentiation for retailers in competing channels enabling the Company to expand penetration in the channel for long term growth. 
“The continued strong interest in our LED lighting products produced another record backlog level at  the end of the first quarter.  The order activity and backlog level drives our expectation that the second quarter of 2017 will exceed the same prior-year period and be the strongest second quarter in company’s history.” 

First Quarter Highlights
·         Revenue of $6.8 million exceeded guidance of $5.5 million, and more than tripled from
$2.1 million in the prior-year period.

·         Gross profit more than doubled to $1.6 million over the prior-year period

First quarter revenue of $6.8 million improved $4.7 million over the first quarter of 2016.  With this record quarter behind us, the trailing 12 performance puts the revenue at $35 million which would be an increase of 15% compared to 2016 year-end. 

During the quarter, 5 new products were shipped which represented 64% of revenue.  With the introduction of these new products, the quarter’s gross margin of 23.4% is a blended rate which reflects introductory promotional pricing to introduce the new items.  Gross profit doubled to $1.6 million over the prior-year period. 

Total Operating Expenses were $1.2 million up from $655 thousand in 2016. The operating expense increases were mainly the result of increased royalty payments due to higher revenues.  

The Company repurchased and retired $150 thousand of company stock and paid down $137 thousand of old director loans during the quarter.  Income from operations increased to $387 thousand as compared from a loss of $41 thousand in 2016.  That is an operating improvement of $428 thousand from the prior year period.   

 

 

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

   
   

March  31,

 

December 31,

   

2017

 

2016

   

(Unaudited)

   
 

Assets:

     
 

Current Assets:

     
 

   Cash

$                    1,176,440

 

 $              1,646,128

 

   Accounts receivable, net

                       5,732,730

 

                  4,449,179

 

   Inventory

                           514,198

 

                     366,330

 

   Prepaid expenses

                           544,381

 

                     330,020

 

     Total Current Assets

                       7,967,749

 

                  6,791,657

         
 

Property and Equipment:

     
 

   Computer equipment and software

                             19,767

 

                        19,767

 

   Machinery and equipment

                           339,184

 

                     325,750

 

   Furniture and fixtures

                               5,665

 

                          5,665

 

   Less: Accumulated depreciation

                        (267,961)

 

                   (250,465)

 

     Total Property & Equipment

                             96,655

 

                     100,717

         
 

Other Non-current Assets:

     
 

   Deposit

                             12,193

 

                        12,193

 

   Note receivable

                           539,832

 

                     526,887

 

   Goodwill

                       1,936,020

 

                  1,936,020

 

      Total Other Non-current Assets

                       2,488,045

 

                  2,475,100

 

         Total Assets

$                 10,552,449

 

 $              9,367,474

         
 

Liabilities and Stockholders’ Equity:

     
 

Current Liabilities:

     
 

   Accounts payable and accrued liabilities

$                    3,732,285

 

 $              2,678,210

 

   Income tax payable

                               1,588

 

                          1,588

 

   Notes and loans payable to related parties

                       1,203,468

 

                  1,321,721

 

     Total Current Liabilities

4,937,341

 

4,001,519

         
 

Long Term Liabilities:

     
 

   Deferred tax liabilities

344,000

 

216,000

 

     Total Long Term Liabilities

344,000

 

                     216,000

 

     Total Liabilities

5,281,341

 

4,217,519

         
 

Commitments and Contingencies (Note 6)

     
         
 

Stockholders' Equity:

     
 

   Preferred Stock, Series A, par value $.001 per share, authorized 6,666,667 shares, issued -0- shares

                                        -

 

                                   -

 

   Preferred Stock, Series B-1, par value $.0001 per share, authorized 3,333,333 shares, issued -0- shares

                                        -

 

                                   -

 

   Preferred Stock, Series C, par value $1.00 per share, authorized 67 shares, issued -0- shares

                                        -

 

                                   -

 

   Common Stock, par value $.0001 per share, authorized  56,666,667 shares, issued 47,132,664 shares and 48,132,664 shares

4,713

 

4,813

 

   Additional paid-in capital

7,281,747

 

7,411,172

 

   Accumulated deficit

(2,015,352)

 

(2,266,030)

 

     Total Stockholders' Equity

                       5,271,108

 

                  5,149,955

 

     Total Liabilities and Stockholders’ Equity

$                 10,552,449

 

 $              9,367,474

         

 

 

 

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

           
     

For the Three Months Ended

     

March  31,

     

2017

 

2016

 

CASH FLOWS FROM OPERATING ACTIVITIES:

       
           
 

   Net income (loss)

 

$                 250,678

 

 $                 (98,929)

 

Adjustments necessary to reconcile net income (loss) to net cash provided by (used in) operating activities:

       
 

      Depreciation and amortization

 

                      17,495

 

                      14,061

 

      Accrued interest on note receivable

 

                    (12,945)

 

                                  -

 

      Stock based compensation expense

 

                      20,475

 

                      14,250

 

      Provision for deferred income tax

 

                    128,000

 

 -

 

      Accrued sales allowance

 

                    206,995

 

                    (94,203)

 

     (Increase) decrease in accounts receivable

 

              (1,539,687)

 

                3,835,576

 

     (Increase) in inventory

 

                  (147,868)

 

                    (26,674)

 

     (Increase) in prepaid expenses

 

                  (214,361)

 

                    (38,057)

 

      Increase (decrease) in accounts payable and accrued liabilities

 

                1,103,216

 

              (1,864,020)

 

      Increase in accrued interest on notes payable

 

                    (18,253)

 

                      31,282

 

  Net cash provided by (used in) operating activities

 

(206,255)

 

1,773,286

           
 

CASH FLOWS FROM INVESTING ACTIVITIES:

       
 

Purchase of property and equipment

 

(13,433)

 

(4,700)

 

Net cash (used in) investing activities

 

                    (13,433)

 

                      (4,700)

           
 

CASH FLOWS FROM FINANCING ACTIVITIES:

       
 

Proceeds from notes payable

 

                5,280,373

 

                3,643,356

 

Repayments of notes payable

 

              (5,280,373)

 

              (5,564,194)

 

Repurchase of shares from Involve, LLC

 

                  (150,000)

 

                                  -

 

Proceeds from notes and loans payable to related parties

 

                                  -

 

                    360,000

 

Repayments of notes and loans payable to related parties

 

                  (100,000)

 

                  (108,847)

 

Net cash (used in) financing activities

 

(250,000)

 

(1,669,685)

           
 

Net (Decrease) Increase in Cash and Cash Equivalents

 

(469,688)

 

98,901

 

Cash and Cash Equivalents at Beginning of Period

 

1,646,128

 

364,714

 

Cash and Cash Equivalents at End of Period

 

$             1,176,440

 

 $                 463,615

           
 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

       
 

Cash paid during the year for:

       
 

Interest

 

$                   39,983

 

 $                   60,301

 

Income taxes

 

$                              -

 

 $                     7,500

 

 

 

 

 

 

 

 

 

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED  STATEMENTS OF OPERATIONS

 

(Unaudited)

               
         

For the Three Months Ended

         

March 31,

         

2017

 

2016

               
 

Revenues, net

     

$       6,752,196

 

 $          2,078,214

 

Cost of sales

     

        (5,172,729)

 

           (1,464,658)

 

        Gross Profit

     

           1,579,467

 

                 613,556

               
 

Operating Expenses:

           
 

  Sales and marketing

     

              376,756

 

                    62,977

 

  Compensation

     

              359,802

 

                 308,458

 

  Professional fees

     

              204,802

 

                 104,285

 

  Product development

     

                 72,025

 

                    36,274

 

  Other general and administrative

     

              178,619

 

                 142,755

 

       Total Operating Expenses

     

           1,192,004

 

                 654,749

               
 

Operating Income (Loss)

     

              387,463

 

                 (41,193)

               
 

Other Income (Expense):

           
 

  Interest income

     

                 12,945

 

                               -

 

  Interest expense

     

              (21,730)

 

                 (57,736)

 

     Total Other Income (Expense)

     

                 (8,785)

 

                 (57,736)

               
 

Income (Loss) Before Tax Provision

     

              378,678

 

                 (98,929)

               
 

    Provision for Income Tax

     

              128,000

 

                               -

               
 

Net Income (Loss)

     

$           250,678

 

 $              (98,929)

               
 

Net Income (Loss) per Common Share

           
 

Basic

     

$0.005

 

($0.002)

 

Diluted

     

$0.005

 

($0.002)

               
 

Weighted Average Shares Outstanding

           
 

Basic

     

47,621,553

 

48,132,664

 

Diluted

     

47,883,977

 

48,132,664

               



Webcast and Teleconference to Review Results and Outlook
The Company will host a live webcast and conference call on Tuesday, May 16, 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, followed by a question-and-answer session
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, May 23, 2017.  To listen to the replay of the call, dial (412) 317-6671 and enter replay pin number 13659059Alternatively, 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.

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 C. Gaudet                                                       
Corporate Secretary
Email: aimee@capstonecompaniesinc.com
Phone: (954) 252-3440, ext. 313

Capstone Companies, Inc. (USOTC:CAPC)
Historical Stock Chart

1 Year : From May 2016 to May 2017

Click Here for more Capstone Companies, Inc. Charts.

Capstone Companies, Inc. (USOTC:CAPC)
Intraday Stock Chart

Today : Saturday 27 May 2017

Click Here for more Capstone Companies, Inc. Charts.

Latest CAPC Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.