Capstone Sees a Strong Rise in New Product Orders
with a 1.3:1 Book-to-Bill Ratio
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 fourth quarter ended March 31, 2018.
Capstone’s preliminary results show new product orders of
approximately $14.5 million during the fiscal fourth quarter
generating a 1.3:1 book-to-bill ratio. This compares to $7.2
million during the fiscal third quarter and a 0.5:1 book-to-bill
ratio and $5.8 million during the fiscal second quarter, which also
represented a 0.5:1 book-to-bill ratio.
Darren Jamison, President and Chief Executive Officer of
Capstone, stated, “Our preliminary product bookings of $14.5
million and a book-to-bill ratio of 1.3:1 during the fourth quarter
underscores our ability to drive revenue growth and the market’s
accelerating adoption of Capstone’s energy solutions across diverse
markets. Continuing this momentum into the new fiscal year is my
primary focus as we continue to leverage our new bundled solutions
program, long-term service offerings and revenue opportunities in
new geographies such as Latin America, Africa and the Middle East,”
added Mr. Jamison.
Total preliminary revenue for the fourth quarter of fiscal 2018
was approximately $21 million making total revenue for fiscal 2018
approximately $83 million, a 7% increase from a year ago when
Capstone recorded revenues of $77.2 million. These preliminary
results indicate that Capstone has returned to year-over-year
revenue growth after three years of consecutively lower revenues
due to multiple macroeconomic headwinds.
“During the fourth quarter and year-to-date, Capstone continues
to secure new product orders from an increasingly diverse
distribution channel, including global tier one clients, key oil
and gas producers and top-ranking commercial facilities,” Mr.
Jamison added.
Total cash, cash equivalents and restricted cash as of March 31,
2018, were approximately $19.4 million, compared to $16.5 million
as of December 31, 2017. Cash usage during fiscal 2018, excluding
net proceeds from equity transactions and the change in the line of
credit, was $8.5 million lower compared to fiscal 2017,
representing a 44% reduction. Additionally, Capstone generated cash
of $0.2 million in the fourth quarter of fiscal 2018, excluding net
proceeds from equity transactions and the change in the line of
credit, compared to cash usage of $2.8 million for the same period
last year.
“The past fiscal year has benefited from our cash management
strategy and has recently delivered positive cash flow for the
quarter, excluding net proceeds from equity transactions and the
pay down of the line of credit. We are executing on our strategy
that continues to deliver results including higher margin revenue
from our accessories, parts and service business and tight
operating expense controls, which has led to meaningful
improvements in our quarterly cash flows,” said Jayme Brooks, Chief
Financial Officer and Chief Accounting Officer of Capstone.
Capstone also announced that borrowings on its asset based
revolving credit facility decreased approximately $2.5 million
during the quarter to $8.5 million as of March 31, 2018, compared
to $11.0 million at the end of the prior quarter and that it
received approximately $5.2 million from equity transactions during
the fourth quarter of fiscal 2018.
“We continue to focus on maintaining a very low operating
expense level, while targeting key strategic areas to increase
spending that will help drive revenue growth. I believe the
recently announced Distributor Support System (DSS) program is a
great example of this initiative as it provides additional funding
for business development activities, customer lead generation,
brand awareness and tailored marketing services without
significantly increasing our operating expenses,” added Ms.
Brooks.
“We have an excellent foundation from which we will continue to
build our momentum into fiscal 2019. Capstone entered the new
fiscal year from a position of strength and focused on growth with
a strong order book, improved margins, lower operating expenses, an
improving balance sheet and a more focused spend on marketing to
drive sales. We are also seeing increasing benefits from our
innovative aftermarket service businesses, which helps to build a
predictable revenue base and drive margin expansion,” concluded Mr.
Jamison.
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.
Conference Call and Webcast
Capstone will host a live webcast June 7, 2018, at 1:45 PM
Pacific Time (4:45 PM Eastern Time) to provide the results of the
fourth quarter fiscal 2018 ended March 31, 2018. 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 DQS-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. 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
Integra Investor RelationsShawn M.
Severson415-226-7747cpst@integra-ir.com
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