Energy efficiency markets for the second quarter were 81% of revenue compared with 68% in last year's second quarter, renewable energy was 11% compared with 6% of revenue in last year's second quarter and natural resources was 8% of revenue compared with 26% of revenue in last year's second quarter. Europe and Russia accounted for nearly 70% of revenue this quarter compared with 16% in last year's second quarter, while the U.S. and Canada accounted for 12% of revenue this quarter compared with 24% of revenue in last year's second quarter. Asia and Australia also accounted for 12% of revenue for the quarter, compared with 43% of revenue in last year's second quarter.Business developments and milestones recently achieved
- Partnered with Sky Solar (Sky Group) for $50 million in additional project capital (and an option for up to an additional $100 million) for the second phase of the Capstone Energy Finance joint venture (CEF). As our current pipeline for CEF nears the $40 million capacity, this added funding is expected to help expand our business by providing financing options to global customers.
- Partnered with Acresis and Bridge Capital to put together a product-financing program for Capstone distribution partners to provide much needed working capital and growth capital for well-qualified partners.
- Continued to move ahead with our product development roadmap with a newly-patented multi-staged lean pre-vaporizing, pre-mixing fuel injector providing ultra-low emissions that meet United States Environmental Protection Agency (EPA) Tier 4 requirements for power generation. Under this new program, exhaust emissions will be required to be reduced by more than 90 percent.
- Developed new partnerships with the U.S. Department of Energy (DOE) to provide funding in the amount of $335,000 for one year to Argonne National Laboratory to conduct hydrogen and synthetic fuel ("syngas") testing on Capstone's C65 and C200 microturbines at no cost to Capstone. In addition, Capstone continued progress on our flexible fuels program, with recent successful testing on butane.
- Recent launch of the C200 Signature Series product. The all new Signature Series products which include C200, C600, C800 and C1000 have the option for integrated heat recovery modules and two stage air filtration, improved enclosure design, lower noise levels, 12 year marine grade paint and a new system control platform. In addition, the first C1000 Signature Series products were recently commissioned in the U.S. and Europe.
- Resumed sales growth in Russia through BPC Engineering as well as additional new distributors in Russia and the CIS states, including the first order from one of our new Russian distributors.
Financial Highlights of Fiscal 2017 Second Quarter:
- Net loss for the second quarter was $5.9 million, compared with a net loss of $7.9 million in last year's second quarter.
- Loss per share of $0.19 compared to last year's second quarter loss of $0.48 (split adjusted). Weighted average shares outstanding at the end of the second quarter of fiscal 2017 were 30.5 million compared with 16.6 million in the year-ago second quarter.
- Total revenue for the second quarter of fiscal 2017 was $15.0 million compared with $17.9 million in the year-ago second quarter.
- Gross margin of $0.7 million was 5% compared to $1.9 million, or 11%, in the year-ago fiscal second quarter.
- Operating expenses decreased 33% for the quarter to $6.4 million compared with $9.6 million in the year-ago second quarter.
- Bad debt recovery was $0.5 million during the second quarter of fiscal 2017 primarily from BPC Engineering, the company's distributor in Russia. There were no significant bad debt charges or recoveries recorded during the second quarter of fiscal 2016.
- Cash and cash equivalents were $16.1 million as of September 30, 2016, compared to cash and cash equivalents of $15.6 million as of September 30, 2015. Each of these balances includes $5 million of restricted cash related to our Wells Fargo credit facility.
- Inventories as of September 30, 2016 were $19.2 million compared with $31.0 million at the end of the year-ago second quarter, a decrease of $11.8 million.
- Accounts payable and accrued expenses were $12.1 million compared with $25.1 million at the end of the second quarter fiscal 2016.
- As of September 30, 2016, borrowings on the Wells Fargo credit facility were $6.2 million, a $9.0 million decrease from borrowings as of September 30, 2015.
- Subsequent to the end of the quarter, the company entered into a securities purchase agreement for gross proceeds of approximately $7.5 million in an offering of a combination of common stock and warrants.
- The company booked product net orders of approximately $8.9 million during the second quarter, for a 1.1:1 book-to-bill ratio, compared with $8.4 million of product net orders received and booked during the year-ago second quarter, which was a 0.7:1 book-to-bill ratio.
"Capstone" and "Capstone Microturbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.Financial Tables Follow
|CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(In thousands, except share amounts)|
|September 30,||March 31,|
|Cash and cash equivalents||$||11,106||$||11,704|
|Accounts receivable, net of allowances of $7,032 at September 30, 2016 and $8,909 at March 31, 2016||12,750||13,575|
|Prepaid expenses and other current assets||2,208||2,636|
|Total current assets||48,025||49,043|
|Property, plant and equipment, net||2,796||3,537|
|Non-current portion of inventories||2,272||2,143|
|Intangible assets, net||805||941|
|Liabilities and Stockholders' Equity|
|Accounts payable and accrued expenses||$||12,087||$||13,187|
|Accrued salaries and wages||1,829||1,880|
|Accrued warranty reserve||1,327||1,639|
|Revolving credit facility||6,178||9,459|
|Current portion of notes payable and capital lease obligations||50||361|
|Total current liabilities||25,991||30,894|
|Long-term portion of notes payable and capital lease obligations||33||74|
|Other long-term liabilities||179||184|
|Commitments and contingencies|
|Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued|
|Common stock, $.001 par value; 515,000,000 shares authorized, 30,794,703 shares issued 30,678,284 shares outstanding at September 30, 2016; 23,857,516 shares issued and 23,753,873 shares outstanding at March 31, 2016||31||24|
|Additional paid-in capital||866,878||853,288|
|Treasury stock, at cost; 116,419 shares at September 30, 2016 and 103,643 shares at March 31, 2016||(1,638||)||(1,617||)|
|Total stockholders' equity||27,935||24,740|
|CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In thousands, except per share data)|
|Three Months Ended||Six Months Ended|
|September 30,||September 30,|
|Product, accessories and parts||$||11,518||$||14,689||$||27,301||$||38,835|
|Cost of goods sold:|
|Product, accessories and parts||11,341||13,147||24,978||33,061|
|Total cost of goods sold||14,328||15,977||30,394||38,272|
|Research and development||1,350||2,872||2,972||5,288|
|Selling, general and administrative||5,036||6,705||10,782||14,794|
|Total operating expenses||6,386||9,577||13,754||20,082|
|Loss from operations||(5,716||)||(7,649||)||(10,085||)||(13,469||)|
|Other (expense) income||(27||)||(36||)||(43||)||(38||)|
|Loss before income taxes||(5,865||)||(7,882||)||(10,379||)||(13,854||)|
|Provision for income taxes||—||—||3||3|
|Net loss per common share—basic and diluted||$||(0.19||)||$||(0.48||)||$||(0.36||)||$||(0.84||)|
|Weighted average shares used to calculate basic and diluted net loss per common share||30,498||16,578||28,843||16,552|
CONTACT: Capstone Turbine CorporationInvestor and investment inquiries:email@example.comINVESTORS:Dian Griesel Int'lCheryl Schneider212-825-3210