Capstone Turbine Announces Fiscal-Year 2006 Results.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. -- 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(R) (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) reported results for its fourth quarter and fiscal year ended March 31, 2006 in its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on June 14, 2006. Fourth quarter revenue of $7.6 million, up 40% from prior year comparable quarter; Fiscal 2006 revenue increases to $24.1 million, an improvement of over 42% from the prior year. Financial Summary Capstone's revenue for the fourth quarter ended March 31, 2006 increased to $7.6 million, up approximately 40% from the prior year comparable quarter, and up over 7% from the third quarter. Revenue for the fiscal year ended March 31, 2006 was $24.1 million, an improvement of over 42% from the prior fiscal year. The growth in revenue demonstrates the continued strengthening in Capstone's distribution channel and the performance of its distribution base as a result of the strategy undertaken at the beginning of fiscal 2005. 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. at the end of the fiscal year was $7.1 million, a decrease of approximately 13% from the prior fiscal year end, and approximately 29% from the prior quarter. The decrease in new orders is attributable to the delay in the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Department of Buildings' Materials Equipment Acceptance application approval, issued May 24, 2006. The reported gross loss for the 2006 fourth quarter was $3.2 million, or 43% of revenue compared to $1.8 million, or 34% for the 2005 fourth quarter. Included in the 2006 fourth quarter gross loss was $2.4 million of inventory write-downs, offset by $0.8 million of warranty recoveries. The reported gross loss for the fiscal year ended March 31, 2006 was $10.5 million, or 43% of revenue, an improvement of approximately 8 points over the prior fiscal year. The improvement in the gross loss percentage reflects the increased revenue over fixed manufacturing costs, offset by the recorded inventory write-downs. Research and development costs were $3.1 million for the fourth quarter, an increase of $0.5 million, or 17%, over the prior year comparable quarter. Expenses were higher primarily due to increased spending for development hardware. Research and development costs were $11.0 million for the fiscal year ended March 31, 2006, a decrease of $0.7 million, or 6% from the prior fiscal year. The decrease is due to benefits received from cost sharing programs. Selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. were $6.2 million for the fourth quarter, an increase of $0.2 million, or 4% from the prior year comparable quarter. The increase was attributable to costs incurred for the company's demonstration site in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Selling, general and administrative costs were $27.7 million for the fiscal year ended March 31, 2006, an increase of $7.0 million, or 33% from the prior fiscal year. Approximately $2.0 million of the increase related to the Interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. Settlement Agreement completed during the third quarter. Additionally, $2.0 million of the increase related to increased professional fees and $0.5 million related to severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs. Approximately $0.7 million of the increase related to the demonstration site in New York and $1.0 million to labor related costs, including salaries, recruitment and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. expenses to support our continuous process improvement throughout the organization. Capstone's net loss was $11.8 million for the fourth quarter, or $0.12 per share, an increase of $1.8 million from the $10.0 million loss, or $0.12 per share, reported for the prior year comparable quarter. Capstone's net loss was $47.1 million, or $0.50 per share, for the fiscal year ended March 31, 2006, an increase of $7.6 million from the $39.5 million loss, or $0.47 per share, reported for the prior fiscal year. Included in the $0.50 per share net loss was the $2.0 million Interstate settlement charge. Cash balances decreased by $5.5 million during the fiscal year ended March 31, 2006. The Company completed a registered direct offering of its common stock during the third quarter, resulting in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $39.2 million. Cash and cash equivalents at the end of the fiscal year ended March 31, 2006 were $58.1 million. Business Summary 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. , Capstone's President and 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. , said, "I am pleased with our top line growth during fiscal 2006. Fiscal 2007 will be another important year in which we plan to continue our top line growth in order to achieve our goal of generating positive cash flow by the end of the first quarter of fiscal 2008. As positive news toward achieving our goal, today we received another order through GSA (1) (Global mobile Suppliers Association, Sawbridgeworth, U.K., www.gsacom.com) A membership organization of suppliers of GSM products and services. Its goal is to promote GSM as the worldwide mobile communications standard. See GSM Association and GSM. for an aggregate value of approximately $1.4 million that will be installed in a variety of government facilities." Listed below is a brief summary of our recent operating accomplishments: Capstone shipped its first General Services Administration The General Services Administration (GSA) was established by section 101 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C.A. § 751). The GSA sets policy for and manages government property and records. (GSA) order. The order is for C60 MicroTurbine units for use at an undisclosed United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Government location. Additionally, Capstone is shipping the first prototype liquid fuel C65 unit to the U.S Army Corps of Engineers Construction Engineering Lab (CERL CERL Construction Engineering & Research Laboratory CERL Construction Engineering Research Laboratory (US Army) CERL Computer-based Education Research Laboratory CERL Canadian Explosives Research Laboratory (CANMET) ) for their testing and evaluation. (May 31, 2006.) Capstone received its first Materials Equipment Acceptance (MEA MEA Multiple endocrine adenomatosis. See Multiple endocrine neoplasia. ) approval from the New York City Department of Buildings (NYCDoB) MEA Division and the New York Fire Department. The NYCDoB has issued Capstone its first MEA number, 193-05-E. Capstone will now supply that issued MEA number with each distributed generation Distributed generation generates electricity from many small energy sources. It has also been called also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or microturbine solution it installs in New York. The MEA approval will also be on every filed job site application for permits with the Department of Buildings and the New York Fire Department. These application filings are necessary to secure contractor work permits for citywide installations of Capstone Branded Microturbine equipment. (May 24, 2006.) Capstone received an order for a nationally recognized health care facility totaling approximately $1.2 million of Capstone C65 Micro Turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. (R) energy systems. The multi-pac cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. energy system will be installed in one of their facilities in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . (May 12, 2006.) Conference Call The Company will host a conference call today, Wednesday, June 14, 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 Company's website: www.microturbine.com/ir. About Capstone Turbine Capstone Turbine Corporation (www.microturbine.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 more than 3,500 Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 11 million 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 pollutants see environmental pollution. and greenhouse gases greenhouse gas n. Any of the atmospheric gases that contribute to the greenhouse effect. greenhouse gas . A UL-Certified ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001:2000 certified See certification. company, Capstone Turbine is headquartered in the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area with sales and/or service centers in New York, Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi , Milan, Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. and Tokyo. "Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners. 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, with regard to business growth generally or top line growth, as well as the achievement of positive cash flow and possible orders resulting from the New York City MEA approval. Forward-looking statements may be identified by words such as "expects," "objective," "intend," "targeted," "plan," "driving to" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including the fact that certain product applications in the New York market may require further regulatory approvals and other factors described in Capstone's 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 readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions 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 CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
March 31, March 31,
2006 2005
--------- ---------
Assets
Current Assets:
Cash and cash equivalents $58,051 $63,593
Accounts receivable, net of allowance for
doubtful accounts and sales returns of $858 in
2006 and $536 in 2005 5,869 3,150
Inventories 12,545 11,273
Prepaid expenses and other current assets 1,050 912
Assets held for sale -- 80
--------- ---------
Total current assets 77,515 79,008
--------- ---------
Property, plant and equipment, net 7,816 10,529
Non-current portion of inventories 3,113 3,990
Intangible asset, net 1,159 1,427
Other assets 114 236
--------- ---------
Total $89,717 $95,190
========= =========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities $8,144 $5,796
Accrued salaries and wages 1,623 1,442
Accrued warranty reserve 6,998 8,667
Deferred revenue 632 1,522
Current portion of notes payable 19 19
--------- ---------
Total current liabilities 17,416 17,446
--------- ---------
Long-term portion of notes payable 47 64
Other long-term liabilities 626 1,002
Commitments and Contingencies -- --
Stockholders' Equity:
Preferred stock, $.001 par value; 10,000,000
shares authorized; none issued -- --
Common stock, $.001 par value; 415,000,000
shares authorized; 103,521,829 shares issued
and 102,970,621 shares outstanding at March
31, 2006; 85,379,446 shares issued and
84,828,238 shares outstanding at March 31,
2005 104 85
Additional paid-in capital 572,787 530,931
Accumulated deficit (500,542) (453,469)
Deferred stock compensation (208) (356)
Treasury stock, at cost; 551,208 shares at March
31, 2006 and 2005 (513) (513)
--------- ---------
Total stockholders' equity 71,628 76,678
--------- ---------
Total $89,717 $95,190
========= =========
CAPSTONE TURBINE CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Years Ended March 31,
-----------------------------
2006 2005 2004
--------- --------- ---------
Net revenue $24,103 $16,968 $12,607
Cost of goods sold 34,563 25,545 30,446
--------- --------- ---------
Gross loss (10,460) (8,577) (17,839)
Operating expenses:
Research and development 11,019 11,761 11,221
Selling, general and administrative 27,741 20,782 19,779
--------- --------- ---------
Total operating costs and expenses 38,760 32,543 31,000
--------- --------- ---------
Loss from operations (49,220) (41,120) (48,839)
Interest income 2,143 1,338 1,284
Interest expense (23) (37) (183)
Other income, net 29 372 1
--------- --------- ---------
Loss before income taxes (47,071) (39,447) (47,737)
Provision for income taxes 2 2 2
--------- --------- ---------
Net loss $(47,073) $(39,449) $(47,739)
========= ========= =========
Net loss per common share -- basic and
diluted $(0.50) $(0.47) $(0.58)
========= ========= =========
Share used to calculate net loss per
common share -- basic and diluted 93,638 84,378 82,349
========= ========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion