Capstone Turbine Announces Fiscal Third Quarter Results.Business Editors CHATSWORTH Chatsworth, estate, Derbyshire, central England, near Chesterfield. It is the seat of the dukes of Devonshire. Begun in 1552, the present Classical-style Chatsworth House was rebuilt in 1686. , Calif.--(BUSINESS WIRE)--Feb. 5, 2004 Capstone Turbine Capstone Turbine Corporation NASDAQ: CPST, incorporated in 1988, is a California based gas turbine manufacturer that specializes in microturbine power and heat cogeneration systems. Capstone has sold and shipped more than 3,000 of these one-moving-part systems worldwide. Corporation (Nasdaq:CPST CPST Cable Programming Services Tier CPST Commission on Professionals in Science and Technology CPST Community Psychiatric Supportive Treatment (Ohio) CPST Child Passenger Safety Technician CPST Classical Perturbation Scattering Theory ) (www.microturbine.com), the world's leading microturbine power systems manufacturer, today reported results for its third fiscal quarter ended December December: see month. 31, 2003. Revenue for the quarter was $3.3 million as compared with $3.6 million in the period a year ago. Capstone's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , John Tucker For other persons named John Tucker, see John Tucker (disambiguation). John G. Tucker (born September 29, 1964) is a former Canadian professional ice hockey centre who played twelve seasons in the National Hockey League in the 1980s and 90s. , said, "Our performance was off versus expectations due to some adjustments in deliveries to accommodate our customers' needs. However, we had a good order rate of 4.3 megawatts and we exited the quarter with 6.2 megawatts of product in backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. ." For the third quarter of fiscal 2004, Capstone's net loss was $11.6 million, or ($0.14) per share compared to a net loss of $20.7 million or ($0.26) per share during the third quarter of fiscal year 2003. Providing an update on the Company's progress, Tucker commented, "We are continuing to enhance the depth and talent in the organization. Since last quarter, we have recruited Vice Presidents for Quality, Service and Business Development as well as for two key sales positions, The Americas A·mer·i·cas , the See America. and International. We continue to attack our key priorities of improving the robustness of our products, enhancing customer service and integrating the design and manufacturing process. Furthermore, we have initiated our strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. process which will establish a three-year roadmap A roadmap may refer to:
Tucker continued, "We have been active in pursuing several new opportunities that pose long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. prospects for the business. These new prospects span from biogas bi·o·gas n. A mixture of methane and carbon dioxide produced by bacterial degradation of organic matter and used as a fuel. biogas Noun gaseous fuel produced by the fermentation of organic waste installations in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , to numerous projects
that integrate our microturbines into larger power-packs. These
power-packs range from 240-kilowatts used by UTC Power UTC Power provides On-Site Power Products, Transportation Products, and Space and Defense Solutions . UTC Power is a wholly owned subsidiary of United Technologies Corporation. HistoryUTC Power began as a division of Pratt & Whitney in the 1960s. , a division of United Technologies Corporation, in their Pure Comfort 240, a combined cooling and power product; to 270-kilowatts, soon to be installed in support of the Ground Mid-Course Defense Project, to an 840-kilowatt package being developed for industrial and remote power use in Nigeria Nigeria (nījĭr`ēə), officially Federal Republic of Nigeria, republic (2006 provisional pop. 140,003,542), 356,667 sq mi (923,768 sq km), W Africa. . Additionally, our distributors continue to develop exciting opportunities for Capstone MicroTurbines(TM) and we will be considering these opportunities in our strategic planning evaluations." In summary, Tucker concluded, "We are making significant progress on our targeted priorities and, with the development of our strategic plan, we look forward to charting a positive course for Capstone's future." Third Quarter Financial Highlights Gross loss in the third quarter of the fiscal year was $3.1 million, compared to $12.4 million for the same period a year ago. Last year's third quarter included a $5.0 million charge for the partial impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of the recuperator Re`cu´per`a`tor n. 1. (Steel Manuf.) Same as Regenerator. core manufacturing facility and a $3.6 million charge to adjust the warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. reserve balance. In the current period, the Company recorded $1.2 million in warranty costs related to accommodations made to Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and distributors. Research and development ("R&D") costs were $3.0 million in the period compared to $2.0 million in the third fiscal quarter of 2003. Costs in fiscal 2003 were reported net of $1.5 million in contract offsets. While R&D spending decreased $0.5 million between periods, the lack of contract reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. offsets in the current period resulted in an increase in reported R&D costs of $1.0 million. Capstone reported that it has suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. billing the Department of Energy ("DOE") for the AMTS AMTS Automated Maritime Telecommunications System AMTS Advanced Manufacturing Technology Strategy AMTS Abbreviated Mental Test Score AMTS Ahmedabad Municipal Transport Service AMTS Ahmedabad Municipal Transport Service (India) program, which funds development of Capstone's C200 product, because of a current lack of committed funding. The Company noted, however, that it intends to resume billings Billings, city (1990 pop. 81,151), seat of Yellowstone co., S Mont., on the Yellowstone River, in a valley surrounded by seven mountain ranges; inc. as a city 1885. under the program when the DOE receives additional funding appropriations for the project. Selling, general and administrative expenses decreased to $5.7 million from $6.8 million a year ago reflecting lower spending rates in the current period. As of December 31, 2003, Capstone had $111.7 million in cash and cash equivalents, with no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The company's cash utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be was $8.2 million in the current quarter compared to a use of $4.0 million in the same period a year ago. This change primarily reflects $4.0 million in proceeds from sale of stock a year ago. Conference call The company will host a conference call today, Thursday Thursday: see week. , February February: see month. 5, at 2:00 p.m. Pacific Time, to further review the company's third fiscal quarter results. Access to the live broadcast and a replay of the webcast will be available until May 5, 2004 through the Company's web site: www.microturbine.com. About Capstone Turbine Capstone Turbine Corporation (www.microturbine.com)(Nasdaq:CPST) is the world's leading producer of low-emission adj. 1. producing little emission of atmospheric pollutants; as, a low-emission vehicle s>. microturbine systems. In 1998, Capstone was the first to offer commercial power products utilizing microturbine technology, the result of more than ten years of focused research. Capstone Turbine has sold and shipped more than 2,500 commercial production Capstone MicroTurbine(TM) systems to customers worldwide. These award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" systems have logged more than 5 million hours of operation. This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ," as that term is used in the federal securities laws, about Capstone's business, with regard to its ability to address its market challenges, identify and successfully develop the market opportunities with strong potential, develop and implement a successful business strategy, improve the robustness of its products, improve its customer service, and drive change in the business. These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause Capstone's actual results to be materially different from any future results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in such statements. Such factors include, but are not limited to:
1) Market acceptance and trends;
2) The ability to enhance the quality and reliability of
Capstone's products;
3) The limited operating history characterized by net losses;
4) The abilities of new management to effect beneficial changes;
5) The ability of the Company to develop and/or retain the
distribution channels necessary to support planned sales;
6) The ability of Capstone to successfully execute its production
and marketing plans; and
7) Other factors detailed in the Company's filings with the
Securities and Exchange Commission.
Capstone cautions readers not to place undue reliance on these statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release or to reflect the occurrence of unanticipated events. "Capstone Turbine Corp." is a registered trademark of Capstone Turbine Corporation. All other trademarks mentioned in this press release are the property of their respective owners.
CAPSTONE TURBINE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, March 31,
2003 2003
------------- -------------
Assets
Current Assets:
Cash and cash equivalents $111,719,000 $132,584,000
Accounts receivable, net of allowance
for doubtful accounts and sales returns
of $508,000 at September 30, 2003 and
$414,000 at March 31, 2003 2,406,000 3,748,000
Inventory 9,149,000 12,121,000
Prepaid expenses and other current assets 1,719,000 1,341,000
------------- -------------
Total current assets 124,993,000 149,794,000
------------- -------------
Equipment and Leasehold Improvements:
Machinery, equipment, and furniture 21,136,000 23,914,000
Leasehold improvements 8,499,000 8,480,000
Molds and tooling 4,345,000 4,365,000
------------- -------------
33,980,000 36,759,000
Less accumulated depreciation and
amortization 17,749,000 16,857,000
------------- -------------
Total equipment and leasehold
improvements, net 16,231,000 19,902,000
------------- -------------
Non-Current Portion of Inventory 4,783,000 4,412,000
Intangible Asset, net 1,761,000 1,961,000
Other Assets 472,000 578,000
------------- -------------
Total $148,240,000 $176,647,000
============= =============
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $2,282,000 $2,156,000
Accrued salaries and wages 1,725,000 1,472,000
Other accrued liabilities 1,888,000 1,117,000
Accrued warranty reserve 6,725,000 6,657,000
Deferred revenue 1,077,000 1,253,000
Current portion of capital lease
obligations 808,000 1,411,000
------------- -------------
Total current liabilities 14,505,000 14,066,000
------------- -------------
Long-Term Portion of Capital Lease
Obligations 105,000 736,000
Other Long-Term Liabilities 1,185,000 1,277,000
Commitments and Contingencies -- --
Stockholders' Equity:
Common stock, $.001 par value;
415,000,000 shares authorized;
83,791,753 shares issued and
83,240,545 shares outstanding
at December 31, 2003; 81,700,735
shares issued and 81,248,782 shares
outstanding at March 31, 2003 84,000 82,000
Additional paid-in capital 529,652,000 527,188,000
Accumulated deficit (396,238,000) (366,281,000)
Less: Deferred stock compensation (540,000) --
Less: Treasury stock, at cost; 551,208
shares at December 31, 2003;
451,953 shares at March 31, 2003 (513,000) (421,000)
------------- -------------
Total stockholders' equity 132,445,000 160,568,000
------------- -------------
Total $148,240,000 $176,647,000
============= =============
CAPSTONE TURBINE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
December 31,
2003 2002
Revenues $ 3,251,000 $ 3,643,000
Cost of Goods Sold 6,359,000 16,049,000
Gross Loss (3,108,000) (12,406,000)
Operating Expenses:
Research and development 3,034,000 2,028,000
Selling, general and administrative 5,688,000 6,779,000
Impairment loss on marketing rights - -
Total operating expenses 8,722,000 8,807,000
Loss from Operations (11,830,000) (21,213,000)
Interest Income 302,000 574,000
Interest Expense (38,000) (90,000)
Other Income (1,000) (3,000)
Loss Before Income Taxes (11,567,000) (20,732,000)
Provision for Income Taxes - -
Net Loss $ (11,567,000) $(20,732,000)
Weighted Average Common Shares
Outstanding 82,705,535 80,168,807
Net Loss Per Share of Common Stock
- Basic and Diluted $ (0.14) $ (0.26)
Nine Months Ended
December 31,
2003 2002
Revenues $ 9,730,000 $ 14,938,000
Cost of Goods Sold 17,649,000 33,981,000
Gross Loss (7,919,000) (19,043,000)
Operating Expenses:
Research and development 7,886,000 5,527,000
Selling, general and administrative 15,007,000 23,486,000
Impairment loss on marketing rights - 15,999,000
Total operating expenses 22,893,000 45,012,000
Loss from Operations (30,812,000) (64,055,000)
Interest Income 1,011,000 2,017,000
Interest Expense (154,000) (292,000)
Other Income (2,000) 5,000
Loss Before Income Taxes (29,957,000) (62,325,000)
Provision for Income Taxes - -
Net Loss $(29,957,000) $(62,325,000)
Weighted Average Common Shares
Outstanding 81,908,416 78,378,535
Net Loss Per Share of Common Stock
- Basic and Diluted $ (0.37) $ (0.80)
-
CAPSTONE TURBINE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
December 31,
---------------------------
2003 2002
------------- -------------
Cash Flows from Operating Activities:
Net loss $(29,957,000) $(62,325,000)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 4,747,000 6,808,000
Impairment loss on fixed assets and
manufacturing license -- 5,016,000
Impairment loss on marketing rights -- 15,999,000
Provision for doubtful accounts and
sales returns 280,000 90,000
Inventory write-down (recovery) (313,000) 4,321,000
Provision for warranty expenses 3,454,000 5,328,000
Loss on disposal of equipment 243,000 65,000
Non-employee stock compensation 74,000 --
Employee and director stock
compensation 462,000 759,000
Changes in operating assets and
liabilities:
Accounts receivable 1,062,000 167,000
Inventory 2,914,000 331,000
Prepaid expenses and other current
assets (378,000) (1,027,000)
Other assets -- 100,000
Accounts payable 126,000 1,543,000
Accrued salaries and wages and
deferred compensation 227,000 791,000
Other accrued liabilities 705,000 867,000
Accrued warranty reserve (3,386,000) (3,098,000)
Deferred revenue (176,000) (653,000)
------------- -------------
Net cash used in operating
activities (19,916,000) (24,918,000)
------------- -------------
Cash Flows from Investing Activities:
Acquisition of and deposits on fixed
assets (1,111,000) (2,121,000)
Proceeds from disposal of fixed assets 26,000 --
------------- -------------
Net cash used in investing
activities (1,085,000) (2,121,000)
------------- -------------
Cash Flows from Financing Activities:
Repayment of capital lease obligations (1,162,000) (994,000)
Exercise of stock options and employee
stock purchases 1,390,000 200,000
Net proceeds from issuance of common
stock -- 3,985,000
Purchase of treasury stock (92,000) (206,000)
------------- -------------
Net cash provided by financing
activities 136,000 2,985,000
------------- -------------
Net Decrease in Cash and Cash
Equivalents (20,865,000) (24,054,000)
Cash and Cash Equivalents, Beginning of
Period 132,584,000 164,364,000
------------- -------------
Cash and Cash Equivalents, End of
Period $111,719,000 $140,310,000
============= =============
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $154,000 $292,000
Income taxes $ -- $ --
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