Capstone Turbine Corporation Announces Third Quarter Fiscal 2012 Operating Results
Gross Margin Continues to Improve -- Record 8.5% for the Third Quarter
CHATSWORTH, Calif., Feb. 9, 2012 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) reported operating results for its third quarter ended December 31, 2011 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 9, 2012.
Financial Summary
Revenue for the third quarter of Fiscal 2012 was $27.5 million, increased 13.8% from the third quarter of Fiscal 2011, and identical to the second quarter of Fiscal 2012 record of $27.5 million. Capstone shipped 136 units, or 23.5 megawatts, in the third quarter of Fiscal 2012, compared to 171 units, or 20.0 megawatts, in the same period last year. Average revenue per unit increased for the third quarter of Fiscal 2012 to $161,000 compared to $110,000 for the third quarter of Fiscal 2011.
Capstone's backlog as of the end of the third quarter of Fiscal 2012 was $115.1 million, an increase of $30.4 million from the same period last year and increased $1.4 million from the second quarter.
The gross margin for the third quarter of Fiscal 2012 was $2.3 million, or 8.5% of revenue, compared to $0.9 million, or 3.8% of revenue, during the third quarter of Fiscal 2011 and a gross margin of $1.7 million, or 6.1% of revenue in the previous quarter. The Company has now posted positive gross margins in five of the last six quarters.
Research and development expenses were $1.8 million for the third quarter of Fiscal 2012, increased $0.4 million from the third quarter of Fiscal 2011 with a decrease of $0.4 million from the prior quarter.
Selling, general and administrative expenses were $8.3 million for the third quarter of Fiscal 2012, increased $2.3 million from the third quarter of Fiscal 2011 and increased $1.7 million from the prior quarter primarily due to a non-cash bad debt reserve.
Capstone's net loss was $8.8 million, or $0.03 per share, for the third quarter of Fiscal 2012, compared to net loss of $8.1 million, or $0.03 loss per share, reported for the third quarter of Fiscal 2011. Capstone's loss from operations for the third quarter of Fiscal 2012 was $7.8 million, or 20.7% higher than the $6.5 million loss from operations for the third quarter of Fiscal 2011. This increase in the loss from operations was primarily the result of the non-cash bad debt reserve.
The adoption of Accounting Standards Codification 815 "Derivatives and Hedging" affects the Company's accounting for warrants with certain anti-dilution provisions. The Company recorded a non-cash charge of $0.8 million to change in fair value of warrant liability during the third quarter of Fiscal 2012. Capstone's net loss for the third quarter of Fiscal 2012 before considering the non-cash charge to the change in warrant liability would have been $8.0 million (calculated by deducting the $0.8 million change in warrant liability charge from the $8.8 million reported net loss), or $0.03 loss per share (calculated by deducting a $0.00 loss per share attributable to the change in warrant liability charge from the $0.03 loss per share reported). The Company recorded a non-cash charge of $1.2 million to change in fair value of warrant liability during the third quarter of Fiscal 2011. Capstone's net loss for the third quarter of Fiscal 2011 before considering the non-cash charge to the change in warrant liability would have been $6.9 million (calculated by deducting the $1.2 million change in warrant liability charge from the $8.1 million reported net loss), or $0.03 loss per share (calculated by deducting a $0.00 loss per share attributable to the change in warrant liability charge from the $0.03 loss per share reported). This increase in the net loss before considering the non-cash charge to the change in warrant liability was primarily the result of the non-cash bad debt reserve.
Cash and cash equivalents at the end of the third quarter of Fiscal 2012 were $22.9 million, an increase of $2.6 million from the second quarter. Of the cash generated, $8.4 million was the result of the inducement of warrant exercises during the quarter.
Conference Call
The Company will host a conference call today, Thursday, February 9, 2012 at 1:45 p.m. Pacific Time. Access to the live broadcast and a replay of the webcast will be available for 90 days through the Investor Relations page on the Company's website: www.capstoneturbine.com.
About Capstone Turbine
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 over 5,000 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, Nottingham, Shanghai and Singapore.
"Capstone" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
The Capstone Turbine Corporation logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=6212
| CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except share amounts) | ||
| (Unaudited) | ||
|
December 31, 2011 |
March 31, 2011 |
|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 22,871 | $ 33,456 |
| Accounts receivable, net of allowance for doubtful accounts of $2,279 at December 31, 2011 and $212 at March 31, 2011 | 25,753 | 19,329 |
| Inventories | 25,227 | 19,267 |
| Prepaid expenses and other current assets | 2,069 | 2,369 |
| Total current assets | 75,920 | 74,421 |
| Property, plant and equipment, net | 5,007 | 5,939 |
| Non-current portion of inventories | 1,473 | 1,454 |
| Intangible assets, net | 2,976 | 3,574 |
| Restricted cash | -- | 1,250 |
| Other assets | 476 | 381 |
| Total | $ 85,852 | $ 87,019 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable and accrued expenses | $ 24,034 | $ 20,292 |
| Accrued salaries and wages | 1,669 | 1,555 |
| Accrued warranty reserve | 1,413 | 1,081 |
| Deferred revenue | 2,814 | 1,153 |
| Revolving credit facility | 12,911 | 7,080 |
| Current portion of notes payable and capital lease obligations | 543 | 214 |
| Warrant liability | 1,363 | 20,772 |
| Total current liabilities | 44,747 | 52,147 |
| Long-term portion of notes payable and capital lease obligations | 59 | 83 |
| Other long-term liabilities | 282 | 309 |
| Stockholders' Equity: | ||
| Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued | -- | -- |
| Common stock, $.001 par value; 415,000,000 shares authorized; 274,961,652 shares issued and 273,979,513 shares outstanding at December 31, 2011; 259,544,911 shares issued and 258,595,291 shares outstanding at March 31, 2011 | 275 | 260 |
| Additional paid-in capital | 764,736 | 747,962 |
| Accumulated deficit | (723,098) | (712,648) |
| Treasury stock, at cost; 982,139 shares at December 31, 2011 and 949,620 shares at March 31, 2011 | (1,149) | (1,094) |
| Total stockholders' equity | 40,764 | 34,480 |
| Total | $ 85,852 | $ 87,019 |
| CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
|
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||
| 2011 | 2010 | 2011 | 2010 | |
| Revenue | $27,483 | $24,159 | $79,238 | $59,133 |
| Cost of goods sold | 25,143 | 23,233 | 74,722 | 58,600 |
| Gross margin | 2,340 | 926 | 4,516 | 533 |
| Operating expenses: | ||||
| Research and development | 1,823 | 1,424 | 6,230 | 4,986 |
| Selling, general and administrative | 8,311 | 5,959 | 21,535 | 19,006 |
| Total operating expenses | 10,134 | 7,383 | 27,765 | 23,992 |
| Loss from operations | (7,794) | (6,457) | (23,249) | (23,459) |
| Other income (expense) | (4) | -- | 2 | 4 |
| Interest income | -- | 1 | 1 | 3 |
| Interest expense | (237) | (219) | (641) | (725) |
| Change in fair value of warrant liability | (783) | (1,194) | 13,437 | 14,987 |
| Loss before income taxes | (8,818) | (7,869) | (10,450) | (9,190) |
| Provision for income taxes | -- | 229 | -- | 441 |
| Net loss | $ (8,818) | $ (8,098) | $ (10,450) | $ (9,631) |
| Net loss per common share—basic and diluted | $ (0.03) | $ (0.03) | $ (0.04) | $ (0.04) |
| Weighted average shares used to calculate net loss per common share | 266,044 | 245,780 | 261,658 | 244,517 |
CONTACT: Capstone Turbine Corp.
Investor and investment media inquiries:
ir@capstoneturbine.com
818-407-3628
Released February 9, 2012
