- Achieved record half year revenues
of $17 million
- Gross margin expanded 2 points to
25.9% of sales
- Operating leverage drove operating
income growth to $1.3 million
- Strong backlog sets expectation
for another record setting third
quarter
DEERFIELD BEACH, FL -- August
14, 2017 -- InvestorsHub NewsWire
-- Capstone Companies, Inc.
(OTC:
CAPC) (“Capstone” or the “Company”), a designer of innovative
LED lighting solutions including power failure lighting, today
reported its financial results for the second quarter
2017.
Stewart Wallach, Capstone’s CEO,
commented, “Our record revenue and solid profitability delivered in
the quarter, further demonstrates Capstone’s abilities to execute
its growth strategy. The Company’s momentum continues to
strengthen as our product placements continue to
expand.”
Second Quarter Financial
Summary
($ in thousands, except per share
data)
|
Q2 2017 |
Q2 2016 |
Change |
% Change |
Revenue |
$10,220 |
$ 8,902 |
1,318 |
14.8% |
Gross Profit |
2,643 |
2,129 |
514 |
24.1% |
Gross Margin |
25.9% |
23.9% |
|
|
Operating Income |
1,339 |
1,161 |
178 |
15.3% |
Operating margin |
13.1% |
13.0% |
|
|
Net Income Before Tax |
$1,303 |
1,094 |
209 |
19.1% |
Net Income |
901 |
1,082 |
(181) |
(16.7%) |
Earnings Per Diluted Share |
$ 0.019 |
($0.022) |
NM |
NM |
Revenue growth in the second quarter
of 2017 was the result of strong demand for the Company’s branded
products including Capstone LightingÒ,
HooverÒ
Home LED and
DuracellÒ.
Gross profit was 25.9% of revenue up
2% from the prior year period, resulting from the improved blended
margin with the launch of the new products. Total operating
expenses increased to $1.3 million from $967 thousand in the prior
year period, due to the higher revenue volume and increased
investment in promoting our licensed brands.
Diluted earnings per share was
$0.019 in the second quarter of 2017.
2017 First Half Financial
Summary
($ in thousands, except per share
data)
|
1H 2017 |
1H 2016 |
Change |
% Change |
Total Revenue |
$16,972 |
$ 10,980 |
5,992 |
54.6% |
Gross Profit |
4,222 |
2,742 |
1,480 |
54.0% |
Gross Margin |
24.9% |
25.0% |
|
|
Operating Income |
1,726 |
1,120 |
606 |
54.1% |
Operating margin |
10.2% |
10.2% |
|
|
Net Income Before Tax |
$1,682 |
996 |
686 |
68.9% |
Net Income |
1152 |
983 |
169 |
17.2% |
Earnings Per Diluted Share |
$0.024 |
$0.020 |
NM |
NM |
Financial results for the first half
of 2017 improved significantly over the prior-year period,
reflecting the successful introduction of new products and the
consumer acceptances of HooverÒ Home
LED and DuracellÒ brands. Compared to the same
period 2016, revenue increased by nearly $6 million or 54.6%, Gross
profit increased by $1.480 million or 54% up to $4.2 million and
Net income before tax increased by $68 thousand or 68.9% up to
$1.682 million.
Diluted earnings per share was $.024
up from $.020 in the same period last year.
Mr. Wallach added, “Our expanded
product portfolio and related branding strategy drove record
setting revenues and strong gross profit year to date. We are
particularly pleased to report stable gross margins as our growth
strategy is executed. Moreover, management is encouraged by
the backlog buildup and look forward to maintaining momentum thru
Q3. This is an exciting time for Capstone as the challenge of
delivering growth, profitability continues to be
met.”
Webcast and Teleconference to Review
Results and Outlook
The Company will host a live webcast
and conference call on Tuesday, August 15, 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. 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, August 22, 2017.
To listen to the replay of the call,
dial (412) 317-6671 and
enter replay pin number 13664215. Alternatively, 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.
The Hoover trademark and logo are
registered trademarks of Techtronic Floor Care Technology Limited
and are used under license by Capstone Industries, Inc. All rights
reserved.
© 2017 DURACELL Bethel, CT 06801.
DURACELL is a registered trademark of Duracell U.S. Operations,
Inc., used under license. All rights reserved.
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
Gaudet
Corporate
Secretary
(954) 252-3440, ext.
313
FINANCIAL TABLES FOLLOW. THE
FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE
FORM 10-K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE
SECURITIES AND EXCHANGE COMMISSION.
Capstone Companies, Inc. 350 Jim Moran Blvd, Suite 120 Deerfield
Beach, FL 33442
FOR IMMEDIATE RELEASE
Capstone Companies Reports Second Quarter Record
Revenues of $10.2 Million
- Achieved record half year revenues of $17
million
- Gross margin expanded 2 points to 25.9% of sales
- Operating leverage drove operating income growth to $1.3
million
- Strong backlog sets expectation for another record
setting third quarter
DEERFIELD BEACH, FL, August 14, 2017 Capstone Companies, Inc.
(OTC:
CAPC) (Capstone or the Company), a designer of innovative LED
lighting solutions including power failure lighting, today reported
its financial results for the second quarter 2017.
Stewart Wallach, Capstones CEO, commented, Our record revenue
and solid profitability delivered in the quarter, further
demonstrates Capstones abilities to execute its growth strategy.
The Companys momentum continues to strengthen as our product
placements continue to expand.
Second Quarter Financial Summary
($ in thousands, except per share data)
|
Q2 2017
|
|
Q2 2016
|
|
Change
|
|
% Change
|
Revenue
|
$10,220
|
|
$8,902
|
|
1,318
|
|
14.8%
|
Gross profit
|
2,643
|
|
2,129
|
|
514
|
|
24.1%
|
Gross margin
|
25.9%
|
|
23.9%
|
|
|
|
|
Operating income
|
1,339
|
|
1,161
|
|
178
|
|
15.3
|
Operating margin
|
13.1%
|
|
13.0%
|
|
|
|
|
Net income before tax
|
$ 1,303
|
|
1,094
|
|
209
|
|
19.1%
|
Net income
|
901
|
|
1,082
|
|
(181)
|
|
(16.7%)
|
Earnings per diluted share
|
$ 0.019
|
|
($0.022)
|
|
NM
|
|
NM
|
Revenue growth in the second quarter of 2017 was the result of
strong demand for the Companys branded products including Capstone
Lighting, Hoover Home LED and Duracell.
Gross profit was 25.9% of revenue up 2% from the prior year
period, resulting from the improved blended margin with the launch
of the new products. Total operating expenses increased to $1.3
million from $967 thousand in the prior year period, due to the
higher revenue volume and increased investment in promoting our
licensed brands.
Diluted earnings per share was $0.019 in the second quarter of
2017.
2017 First Half Financial Summary
($ in thousands, except per share data)
|
1H 2017
|
|
1H 2016
|
|
Change
|
|
% Change
|
Total revenue
|
$16,972
|
|
$10,980
|
|
5,992
|
|
54.6%
|
Gross profit
|
4,222
|
|
2,742
|
|
1,480
|
|
54.0%
|
Gross margin
|
24.9%
|
|
25.0%
|
|
|
|
|
Operating income
|
1,726
|
|
1,120
|
|
606
|
|
54.1%
|
Operating margin
|
10.2%
|
|
10.2%
|
|
|
|
|
Net income income before tax
|
$ 1,682
|
|
996
|
|
686
|
|
68.9%
|
Net income
|
1152
|
|
983
|
|
169
|
|
17.2%
|
Earnings (loss) per diluted share
|
$ 0.024
|
|
$0.020
|
|
NM
|
|
NM
|
Financial results for the first half of 2017 improved
significantly over the prior-year period, reflecting the successful
introduction of new products and the consumer acceptances of Hoover
Home LED and Duracell brands. Compared to the same period 2016,
revenue increased by nearly $6 million or 54.6%, Gross profit
increased by $1.480 million or 54% up to $4.2 million and Net
income before tax increased by $68 thousand or 68.9% up to $1.682
million.
Diluted earnings per share was $.024 up from $.020 in the same
period last year.
Mr. Wallach added, Our expanded product portfolio and related
branding strategy drove record setting revenues and strong gross
profit year to date. We are particularly pleased to report stable
gross margins as our growth strategy is executed. Moreover,
management is encouraged by the backlog buildup and look forward to
maintaining momentum thru Q3. This is an exciting time for Capstone
as the challenge of delivering growth, profitability continues to
be met.
Webcast and Teleconference to Review Results and Outlook
The Company will host a live webcast and conference call on
Tuesday, August 15, 2017 at
10:30 a.m. Eastern Time. During the call, management will review
the financial and operating results and discuss the Companys
corporate strategy and outlook. 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, August 22, 2017.
To listen to the replay of the call, dial (412) 317-6671 and enter
replay pin number 13664215. Alternatively, the archive of the
webcast will be available on the Companys 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.
The Hoover trademark and logo are registered trademarks of
Techtronic Floor Care Technology Limited and are used under license
by Capstone Industries, Inc. All rights reserved.
2017 DURACELL Bethel, CT 06801. DURACELL is a registered
trademark of Duracell U.S. Operations, Inc., used under license.
All rights reserved.
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 Companys 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 Companys 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 Companys 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 Gaudet
Corporate Secretary
(954) 252-3440, ext. 313
FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL
STATEMENT SHOULD BE READ ALONG WITH THE FORM 10-K FINANCIAL
STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE
COMMISSION.
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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