EXHIBIT 99.1
CAPSTONE TURBINE ANNOUNCES 1ST QUARTER 2006 RESULTS
CHATSWORTH, Calif., August 10, 2005 (BUSINESS WIRE) -- Capstone Turbine
Corporation(R) (Nasdaq:CPST) (www.microturbine.com) reported results for the
first quarter of fiscal year 2006 on Form 10-Q filed with the Securities and
Exchange Commission on August 9, 2005.
Backlog increased to 15.5 megawatts at quarter-end, up 94% from the prior year
comparable quarter, and sequentially up 44% from the fourth quarter.
FINANCIAL SUMMARY
Capstone's financial results for the first quarter of fiscal 2006 included
revenue of $3.8 million, down $1.6 million from $5.4 million reported for the
fourth quarter of fiscal 2005. The majority of the decrease was due to staging
of approximately $1.5 million of finished product for rapid response to the New
York market. Additionally, approximately $0.6 million in revenue was delayed
pending payments from certain international customers.
Backlog at the end of the first quarter of fiscal 2006 was 15.5 megawatts,
consisting of backlog at the beginning of the quarter of 10.8 megawatts, orders
during the quarter of 8.1 megawatts and shipments of 3.4 megawatts.
The reported gross loss was $3.4 million for the first quarter of fiscal 2006,
an increase of $1.6 million from the $1.8 million loss reported in the fourth
quarter of fiscal 2005. The primary reason for the change between periods
resulted from a benefit of $1.6 million recorded in the prior quarter, and $0.6
million expense in the current quarter, or a net $2.2 million change in gross
profit.
Operating Costs and Expenses were $7.9 million for the quarter, down $0.7
million from the prior quarter, primarily due to $0.9 million of benefits
reported from the Department of Energy (DOE) cost sharing programs in the
current quarter.
Capstone's net loss was $10.9 million, an increase of $0.9 million from the $10
million loss reported in the fourth quarter of fiscal 2005. The first quarter of
fiscal 2006 reported net loss was $0.13 per share as compared with $0.12 the
previous quarter.
Cash usage in the first quarter was $11.6 million, a decrease of $0.6 million
from the prior quarter's cash usage of $12.1 million. The lower cash usage was
attributable to less cash used in investing activities and lower operating cash
usage.
Cash and cash equivalents at the end of the quarter were $52 million.
BUSINESS SUMMARY
John Tucker, Capstone's President and CEO said "Over the past two months we have
continued to demonstrate tangible progress towards our mission of becoming the
world leader in distributed power generation". Listed below is a brief summary
of our recent operating accomplishments:
Filed Materials Equipment Acceptance (MEA) application with the New York City
Department of Buildings MEA Division which will significantly simplify the
permitting and installation approval of Capstone-branded microturbines in the
five boroughs of New York City. (Aug. 2, 2005)
KeySpan Energy Delivery developed with Capstone a marketing promotional mailer
for the sale, installation and factory direct service of Capstone Microturbine
on-site power generation products. KeySpan Energy Delivery is a subsidiary of
KeySpan Corporation (NYSE:KSE), which is the fifth largest distributor of
natural gas in the United States and the largest in the Northeast, operating
regulated gas utilities in New York, Massachusetts and New Hampshire that serve
2.6 million customers. (July 25, 2005)
Successfully completed certification testing on new 30-kilowatt product
specifically designed for hazardous oil and gas applications with Underwriters
Laboratories, Inc. (UL). This certification states that the 30-kilowatt
product meets the stringent NEC Class I, Division 2, Groups C and D
classification where explosive gases may be present under abnormal conditions.
(July 14, 2005)
Received large follow-up Russian order amounting to a total of 1.7 megawatts for
both C30 and C60 kilowatt microturbine products. (July 6, 2005)
Signed National Sales representative Agreement with WESCO Distribution, Inc.,
the primary operating entity for Pittsburg-based WESCO International, Inc.
(NYSE:WCC). WESCO Distribution, Inc. a leading distributor of electrical
construction products and electrical and industrial maintenance, repair and
operating supplies and is the nation's largest provider of integrated supply
services. (July 6, 2005)
In addition to these accomplishments, we were pleased to see the National Energy
Bill signed by President Bush. This Bill provides incentives for companies to
utilize microturbines for their power generation requirements including a 10%
credit for the purchase of stationary microturbine power plants. Additionally,
the Energy Tax Incentives Act of 2005 provides $2.7 billion of incentives for
energy efficiency and conservation, both features of our microturbines.
CONFERENCE CALL
The Company will host a conference call today, Wednesday, August 10, at 1:45
p.m. Pacific Standard 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.
ABOUT CAPSTONE TURBINE
Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST) is the world's
leading producer of low-emission microturbine systems. In 1998, Capstone was the
first to offer commercial energy products utilizing microturbine technology, the
result of more than ten years of focused research. Capstone Turbine has shipped
more than 3,000 Capstone MicroTurbine(R) systems to customers worldwide. These
award-winning systems have logged more than 9.4 million runtime hours of
documented operation. An ISO 9001:2000 certified company, Capstone Turbine is
headquartered in the Los Angeles area with sales and/or service centers in New
York, Milan 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," as that term is used
in the federal securities laws, about Capstone's business, with regard to, among
other items, expectations of reaching cash flow positive or positive gross
margin, reducing cash usage, increasing sales, penetrating target markets, the
success of customers' applications, and expected results from Capstone's sales
offices. Forward-looking statements may be identified by words such as
"believe," "expects," "objective," "intend," "targeted," "plan," "on track" and
similar phrases. 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 in such
statements. Many of these risks and uncertainties are described in our periodic
filings with the Securities and Exchange Commission. 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 after the date of
this release or to reflect the occurrence of unanticipated events.
CAPSTONE TURBINE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
JUNE 30, 2005 MARCH 31, 2005
Current Assets:
Cash and cash equivalents $ 52,008,000 $ 63,593,000
Accounts receivable, net of allowance for doubtful accounts and sales returns
of $569,000 at June 30, 2005 and $536,000 at March 31, 2005 3,629,000 3,150,000
Inventory 13,025,000 11,273,000
Prepaid expenses and other current assets 1,305,000 912,000
Assets held for sale 80,000 80,000
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Total current assets 70,047,000 79,008,000
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Equipment and Leasehold Improvements:
Machinery, equipment, and furniture 18,928,000 18,760,000
Leasehold improvements 8,583,000 8,563,000
Molds and tooling 3,123,000 3,096,000
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30,634,000 30,419,000
Less accumulated depreciation and amortization 20,935,000 19,890,000
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Total equipment and leasehold improvements, net 9,699,000 10,529,000
Non-Current Portion of Inventory 3,337,000 3,990,000
Intangible Asset, net 1,360,000 1,427,000
Other Assets 236,000 236,000
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Total $ 84,679,000 $ 95,190,000
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 2,908,000 $ 3,324,000
Accrued salaries and wages 1,642,000 1,442,000
Other accrued liabilities 2,656,000 2,472,000
Accrued warranty reserve 8,658,000 8,667,000
Deferred revenue 1,871,000 1,522,000
Current portion of notes payable obligations 19,000 19,000
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Total current liabilities 17,754,000 17,446,000
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Long-Term Portion of Notes Payable Obligations 60,000 64,000
Other Long-Term Liabilities 875,000 1,002,000
Commitments and Contingencies
Shareholders' Equity:
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued
Common stock, $.001 par value; 415,000,000 shares authorized; 85,462,741
shares issued and 84,911,533 shares outstanding at June 30, 2005; 85,379,446
shares issued and 84,828,238 shares outstanding at March 31, 2005 85,000 85,000
Additional paid-in capital 531,071,000 530,931,000
Accumulated deficit (464,334,000) (453,469,000)
Less: Deferred stock compensation (319,000) (356,000)
Less treasury stock, at cost; 551,208 shares (513,000) (513,000)
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Total shareholders' equity 65,990,000 76,678,000
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Total $ 84,679,000 $ 95,190,000
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CAPSTONE TURBINE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED JUNE 30
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2005 2004
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Revenues $ 3,807,000 $ 2,955,000
Cost of Goods Sold 7,224,000 5,431,000
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Gross Loss (3,417,000) (2,476,000)
Operating Costs and Expenses:
Research and development 2,105,000 3,414,000
Selling, general and administrative 5,737,000 4,867,000
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Total operating costs and expenses 7,842,000 8,281,000
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Loss from Operations (11,259,000) (10,757,000)
Interest Income 396,000 244,000
Interest Expense (2,000) (20,000)
Other Income 2,000 1,000
------------ ------------
Loss Before Income Taxes (10,863,000) (10,532,000)
Provision for Income Taxes 2,000 2,000
------------ ------------
Net Loss $(10,865,000) $(10,534,000)
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Weighted Average Common Shares Outstanding 84,575,256 84,239,797
============ ============
Net Loss Per Share of Common Stock -- Basic and Diluted $ (0.13) $ (0.13)
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CONTACT: Capstone Turbine Corporation
Keith Field (media), 818-734-5465
John Tucker/Chuck McBride (investor), 818-734-5300
SOURCE: Capstone Turbine Corporation