Capstone Turbine Announces Fourth Quarter and Fiscal Year 2014 Operating
Record Revenue of $133.1 Million for Fiscal 2014
Record Full Year Gross Margin of 16%
Record Backlog of $171.6 Million at End of Fiscal 2014
CHATSWORTH, Calif., June 12, 2014 (GLOBE NEWSWIRE) -- 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, 2014.
Fiscal Year 2014 Highlights
*Record annual revenue of $133.1 million, up 4% from Fiscal 2013
*Record product revenue of $108.8 million, up 6% from Fiscal 2013
*Gross margin of $21.7 million, or 16% of revenue, compared to $14.4
million, or 11% of revenue, for Fiscal 2013
*Operating loss decreased 30% year-over-year
*New product orders of $131.5 million resulting in book-to-bill ratio of
*Cash balance of $27.9 million at March 31, 2014
Fourth Quarter 2014 Highlights
*Fourth quarter revenue of $36.4 million, up 3% year-over-year
*Quarterly revenue has exceeded prior year 26 of last 27 quarters
*Record quarterly product revenue of $30.0 million, up 3% year-over-year
*Fourth quarter gross margin of $6.1 million, up 24% year-over-year
*Gross margin as a percentage of revenue of 17%, compared to 14% in the
fourth quarter Fiscal 2013
*New product orders of $41.2 million resulting in book-to-bill ratio of
*Record product backlog of $171.6 million at March 31, 2014, up 15%
*Record Factory Protection Plan backlog of $47.2 million at March 31, 2014,
up 35% year-over-year
President and Chief Executive Officer Darren Jamison commented, "Capstone
achieved another banner year for business development and margin expansion in
Fiscal 2014, ending the year with record quarterly product revenue and the
second highest quarter for total revenue in company history. We also set new
annual records for revenue and gross margin while entering Fiscal 2015 with
solid backlog of $171.6 million, also a company record. The comprehensive
operational improvements we have made in recent years have enabled us to make
consistent progress along our margin improvement path and reach stronger
levels of maturity with respect to product development and channel marketing.
Overall, we continue to make significant expansion in existing markets and
inroads into promising new markets, and our Fiscal 2014 results position us
well for continuing success in Fiscal 2015."
Fourth Quarter 2014 Financial Summary
Revenue for the fourth quarter of Fiscal 2014 was $36.4 million, compared to
$37.0 million for the third quarter of Fiscal 2014, and $35.4 million for the
fourth quarter of Fiscal 2013.
Capstone's backlog as of March 31, 2014 was $171.6 million, compared to $160.4
million at December 31, 2013, and $148.9 million at March 31, 2013.
Gross margin for the fourth quarter of Fiscal 2014 was $6.1 million, or 17% of
revenue, compared to $7.3 million, or 20% of revenue, for the third quarter of
Fiscal 2014, and $5.0 million, or 14% of revenue, for the fourth quarter of
Research and development expenses were $2.5 million for the fourth quarter of
Fiscal 2014,compared to $2.3 million for the third quarter of Fiscal 2014, and
$2.2 million for the fourth quarter of Fiscal 2013.
Selling, general and administrative expenses were $6.8 million for the fourth
quarter of Fiscal 2014, compared to $7.0 million for the third quarter of
Fiscal 2014 and $6.7 million for the fourth quarter of Fiscal 2013.
Capstone's net loss was $3.4 million, or $0.01 loss per share, for the fourth
quarter of Fiscal 2014, compared to a net loss of $2.2 million, or $0.01 loss
per share, for the third quarter of Fiscal 2014, and a net loss of $4.1
million, or $0.01 loss per share, for the fourth quarter of Fiscal 2013.
Capstone's loss from operations for the fourth quarter of Fiscal 2014 was $3.1
million, compared to $1.9 million for the third quarter of Fiscal 2014, and
$3.9 million for the fourth quarter of Fiscal 2013.
Fiscal Year 2014 Financial Summary
Revenue for Fiscal 2014 was $133.1 million, an increase of 4% from $127.6
million for the prior fiscal year.
Fiscal 2014 gross margin was $21.7 million, or 16% of revenue, compared to
Fiscal 2013 gross margin of $14.4 million, or 11% of revenue.The
year-over-year increase in gross margin of $7.3 million was the result of
overall higher sales volume of microturbine products, lower direct material
costs, and decreases in royalty expense, warranty expense, and production and
service center labor and overhead expense compared to the prior year.
Research and development expenses were $9.0 million each for Fiscal 2014 and
Fiscal 2013.During Fiscal 2014 supplies expense decreased but was offset by a
decrease in cost sharing benefits.
Selling, general and administrative expenses were $28.0 million for Fiscal
2014, compared to $27.4 million for Fiscal 2013.The net increase in SG&A
expenses was comprised of increases in salaries, facilities, consulting and
supplies expenses, partially offset by a decrease in marketing expense.
Capstone's net loss decreased 28% to $16.3 million, or a $0.05 loss per share,
for Fiscal 2014, compared to a net loss of $22.6 million, or a $0.07 loss per
share, for Fiscal 2013.Capstone's loss from operations for Fiscal 2014 was
$15.3 million, a 30% reduction from the Fiscal 2013 loss from operations of
Liquidity and Capital Resources
At March 31, 2014, cash and cash equivalents totaled $27.9 million, compared
to $31.6 million at December 31, 2013, and $38.8 million at March 31, 2013.
During the quarter ended March 31, 2014, cash used in operating activities was
$3.8 million and capital expenditures totaled $0.4 million. This compares to
cash used in operating activities of $3.6 million and $0.3 million in capital
expenditures during the quarter ended March 31, 2013.
During the year ended March 31, 2014, Capstone used $15.4 million of cash in
operating activities and spent $1.2 million in capital expenditures. The
compares to cash used in operating activities of $17.1 million and $1.2
million in capital expenditures during the year ended March 31, 2013.
On May 6, 2014, Capstone closed a public offering of 18,825,000 shares of its
common stock at a price of $1.70 per share, which was allocated to a single
institutional investor. Net proceeds from the sale of the shares, after
deducting fees and other offering expenses, were approximately $29.8 million.
"As customers continue to migrate toward larger units and larger projects,
greater working capital resources are required for order fulfillment at our
peak levels," Jamison noted."Following our capital raise in May, Capstone has
ample flexibility to support our backlog conversion and continue to fuel the
Company's growth engine while also meeting our quarterly financial
Jamison continued, "Additionally, on June 9, 2014, we amended our credit
facility with Wells Fargo Bank to, among other things, increase the maximum
borrowing capacity by $5 million to $20 million, amend the financial
covenants, and extend the maturity date of the domestic line of credit to
September 30, 2017. We are pleased with the ongoing commitment that we have
received from our lender and look forward to our continuing partnership with
them as we execute our growth plans."
Conference Call and Webcast
The Company will host a conference call today, June 12, 2014, 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 30 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 approximately 7,000 Capstone Microturbine 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, United Kingdom, Shanghai and Singapore.
"Capstone" and "Capstone MicroTurbine" are registered trademarks of Capstone
Turbine Corporation. All other trademarks mentioned are the property of their
The Capstone Turbine Corporation logo is available here.
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; and the continued partnership with our lender.
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
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
Cash and cash equivalents $27,859 $38,817
Accounts receivable, net of allowances of $2,246 at March 28,019 17,941
31, 2014 and $2,142 at March 31, 2013
Inventories 18,102 18,513
Prepaid expenses and other current assets 2,217 2,588
Total current assets 76,197 77,859
Property, plant and equipment, net 2,891 3,543
Non-current portion of inventories 2,938 3,252
Intangible assets, net 1,790 2,313
Other assets 302 371
Total $84,118 $87,338
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $28,577 $24,121
Accrued salaries and wages 1,883 1,721
Accrued warranty reserve 2,965 2,299
Deferred revenue 2,657 3,089
Revolving credit facility 13,228 13,476
Current portion of notes payable and capital lease 444 361
Warrant liability — 10
Total current liabilities 49,754 45,077
Long-term portion of notes payable and capital lease 201 233
Other long-term liabilities 70 142
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, 311,520,567 shares issued and 310,377,293
shares outstanding at March 31, 2014; 305,661,276 shares 312 306
issued and 304,622,573 shares outstanding at March 31,
Additional paid-in capital 805,342 796,767
Accumulated deficit (770,231) (753,975)
Treasury stock, at cost; 1,143,274 shares at March 31, (1,330) (1,212)
2014 and 1,038,703 shares at March 31, 2013
Total stockholders' equity 34,093 41,886
Total $84,118 $87,338
CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Years Ended March31,
2014 2013 2012
Revenue $133,105 $127,557 $109,371
Cost of goods sold 111,409 113,172 103,944
Gross margin 21,696 14,385 5,427
Research and development 9,029 8,979 8,237
Selling, general and administrative 27,981 27,364 28,927
Total operating expenses 37,010 36,343 37,164
Loss from operations (15,314) (21,958) (31,737)
Other (expense) income (20) 25 31
Interest income — — 2
Interest expense (712) (717) (857)
Change in fair value of warrant liability 10 781 13,983
Loss before income taxes (16,036) (21,869) (18,578)
Provision for income taxes 220 694 186
Net loss $(16,256) $(22,563) $(18,764)
Net loss per common share—basic and $(0.05) $(0.07) $(0.07)
Weighted average shares used to calculate
basic and diluted net loss per common 307,060 302,168 266,945
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