Exhibit 99.1
Capstone Turbine Announces First Quarter Fiscal-Year 2005 Results
CHATSWORTH, Calif.--(BUSINESS WIRE)--July 29, 2004--Capstone Turbine
Corporation (Nasdaq:CPST) (www.microturbine.com) reported results for its first
quarter of fiscal year 2005.
The Company reported exiting the quarter with 8 megawatts of backlog, its
highest level since 2001. "We are delighted at the strength of the order rate we
experienced this quarter," said John Tucker, Capstone's President and CEO. "In
our last fiscal year, which ended on March 31, we sold 11.5 megawatts of product
for the full year. When we shared our strategic plan for fiscal year 2005, we
said we expect to at least double our sales as compared with fiscal 2004. With
2.7 megawatts of products shipped in this first quarter and the 8 megawatts
existing in backlog, we believe we are on track with our plans."
Sales for the period, which included $0.7 million from sales of parts,
accessories, service and training, totaled $3.0 million. Last year's first
fiscal quarter was the strongest period that year, representing 40% of the
year's total product shipments. By comparison, this year's first fiscal quarter
was $1.2 million lower in net sales, but the gross loss realized in the period
was improved by $0.5 million from $2.6 million a year ago to $2.1 million this
quarter. "The lower costs we recognized this period for warranty and sales
return reserves accounted for the difference in the gross loss," said Karen
Clark, Capstone's CFO.
Operating expenses were $8.6 million for the quarter, compared with $7.1
million in the prior year's first quarter. The increase was driven primarily by
increased spending in research and development related to the Company's C200
microturbine product that is currently in beta testing, and for higher
engineering personnel costs related to the company's continuing product
robustness and enhancement efforts.
For the period, Capstone's reported net loss was $10.5 million, or $0.13
per share, compared with $9.4 million, or $0.12 per share for the same period a
year ago.
"Our cash usage for the first quarter was $6.8 million," Clark said. "This
is $2.6 million less than we used last quarter, but on par with the $6.2 million
we used in the first quarter last year. We had a cash flow benefit this period
from collecting a $1.8 million receivable from the government. Two months ago,
we communicated that we expected our fiscal 2005 cash usage to be slightly
higher than in the last two years, as a result of our investments to reshape the
Company. We believe we are still on track to those expectations."
Cash and cash equivalents at the end of the period were $95.6 million.
Conference Call
The Company will host a conference call today, Thursday, July 29, at 2:00
p.m. Pacific Time. Access to the live broadcast and a replay of the webcast will
be available until October 29, 2004 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 sold and shipped more than 2800 Capstone MicroTurbine systems to
customers worldwide. These award-winning systems have logged more than 6 million
hours of documented operation.
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, its expected results of the strategic plan, including
expected improvements in cash flow, and its ability to implement the plan.
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 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 filing 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 Corp" is a registered trademark of Capstone Turbine
Corporation.
CAPSTONE TURBINE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, 2004 March 31, 2004
------------------------------------
Assets
Current Assets:
Cash and cash equivalents $95,628,000 $102,380,000
Accounts receivable, net of
allowance for doubtful accounts
and sales returns of $696,000
at June 30, 2004 and $479,000
at March 31, 2004 1,534,000 4,170,000
Inventory 7,902,000 7,893,000
Prepaid expenses and other
current assets 791,000 1,099,000
------------------------------------
Total current assets 105,855,000 115,542,000
------------------------------------
Equipment and Leasehold Improvements:
Machinery, equipment, and furniture 20,738,000 20,877,000
Leasehold improvements 8,501,000 8,499,000
Molds and tooling 4,360,000 4,363,000
------------------------------------
33,599,000 33,739,000
Less accumulated depreciation
and amortization 19,695,000 18,718,000
------------------------------------
Total equipment and leasehold
improvements 13,904,000 15,021,000
------------------------------------
Non-Current Portion of Inventory 3,574,000 3,936,000
Intangible Asset, Net 1,627,000 1,694,000
Other Assets 352,000 352,000
------------------------------------
Total $125,312,000 $136,545,000
====================================
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $3,220,000 $2,790,000
Accrued salaries and wages 1,553,000 1,664,000
Other accrued liabilities 1,603,000 2,043,000
Accrued warranty reserve 11,316,000 11,695,000
Deferred revenue 1,059,000 1,166,000
Current portion of capital
lease obligations 358,000 582,000
------------------------------------
Total current liabilities 19,109,000 19,940,000
------------------------------------
Long-Term Portion of Capital
Lease Obligations -- 13,000
Other Long-Term Liabilities 1,003,000 1,149,000
Commitments and Contingencies -- --
Stockholders' Equity:
Common stock, $.001 par value;
415,000,000 shares authorized;
85,278,839 shares issued and
84,727,631 shares outstanding
at June 30, 2004; 85,025,817
shares issued and 84,474,609
shares outstanding
at March 31, 2004 85,000 85,000
Additional paid-in capital 530,649,000 530,394,000
Accumulated deficit (424,554,000) (414,020,000)
Deferred stock compensation (467,000) (503,000)
Less treasury stock, at cost;
551,208 shares (513,000) (513,000)
------------------------------------
Total stockholders' equity 105,200,000 115,443,000
------------------------------------
Total $125,312,000 $136,545,000
====================================
CAPSTONE TURBINE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30,
--------------------------
2004 2003
------------- ------------
Revenues $2,955,000 $4,132,000
Cost of Goods Sold 5,090,000 6,739,000
------------- ------------
Gross Loss (2,135,000) (2,607,000)
Operating Costs and Expenses:
Research and development 3,414,000 2,450,000
Selling, general and administrative 5,208,000 4,676,000
------------- ------------
Total operating costs and expenses 8,622,000 7,126,000
------------- ------------
Loss from Operations (10,757,000) (9,733,000)
Interest Income 244,000 400,000
Interest Expense (20,000) (64,000)
Other Income 1,000 (1,000)
------------- ------------
Loss Before Income Taxes (10,532,000) (9,398,000)
Provision for Income Taxes 2,000 -
------------- ------------
Net Loss $(10,534,000) $(9,398,000)
============= ============
Weighted Average Common Shares Outstanding 84,239,797 81,231,192
============= ============
Net Loss Per Share of Common Stock -- Basic
and Diluted $(0.13) $(0.12)
============= ============
CAPSTONE TURBINE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended June 30,
--------------------------
2004 2003
--------------------------
Cash Flows from Operating Activities:
Net loss $(10,534,000) $(9,398,000)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 1,353,000 1,628,000
Provision for doubtful accounts and
sales returns 217,000 314,000
Inventory write-down 49,000 (76,000)
Provision for warranty expenses 697,000 1,056,000
Loss on disposal of equipment 30,000 188,000
Non-employee stock compensation 24,000 3,000
Employee deferred stock-based
compensation 37,000 -
Employee and director stock
compensation 4,000 193,000
Changes in operating assets and
liabilities:
Accounts receivable 2,419,000 451,000
Inventory 303,000 2,163,000
Prepaid expenses and other current
assets 309,000 (1,143,000)
Accounts payable 430,000 (481,000)
Accrued salaries and wages and
deferred compensation (210,000) 147,000
Other accrued liabilities and
deferred rent (488,000) 330,000
Accrued warranty reserve (1,075,000) (928,000)
Deferred revenue (107,000) (1,000)
--------------------------
Net cash used in operating
activities ( 6,542,000) (5,554,000)
--------------------------
Cash Flows from Investing Activities:
Acquisition of and deposits on fixed
assets (203,000) (290,000)
Proceeds from disposal of fixed assets 1,000 26,000
--------------------------
Net cash used in investing
activities (202,000) (264,000)
--------------------------
Cash Flows from Financing Activities:
Repayment of capital lease obligations (234,000) (375,000)
Exercise of stock options and employee
stock purchases 226,000 70,000
Acquisition of treasury stock - (92,000)
--------------------------
Net cash used in financing
activities (8,000) (397,000)
--------------------------
Net Decrease in Cash and Cash Equivalents ( 6,752,000) ( 6,215,000)
Cash and Cash Equivalents, Beginning of
Period 102,380,000 132,584,000
--------------------------
Cash and Cash Equivalents, End of Period $95,628,000 $126,369,000
==========================
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $20,000 $64,000
Income taxes $2,000 $-
CONTACT: Capstone Turbine Corporation
General Media Inquiries: Keith Field, 818-734-5465
Investor and Investment Media Inquires: Cindy Martinez,
818-407-3643