Capstone Promotes Kirk C. Petty to Senior Vice President of Operations Upon Significant Demonstrated Progress Against $3 Million Direct Material Cost Reduction Target and Zero Waste Facility Goals
VAN NUYS, CA / ACCESSWIRE / February 13, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it has promoted Kirk C. Petty to Senior Vice President of Operations after Mr. Petty led the organization to significantly accelerated progress against the $3 million direct material cost reduction and zero waste facility goals.
One of the key elements of Capstone's plan to achieve positive Adjusted EBITDA in the upcoming June 2020 quarter is lowering the company's quarterly operating expenses from an average of $6.5 million to a range of $5.2 million to $5.7 million and in conjunction reduce direct material costs (DMC) by approximately $3 million on an annual basis, which the company's management recently detailed in its February 6th, Third Quarter Earnings Call.
The new lower DMC will be achieved through already negotiated cost savings on super alloys, stators, batteries, injectors and other miscellaneous materials. Achieving this annual $3 million savings target will have a favorable impact both to the company's new product margins as well as spare parts and Factory Protection Plan (FPP) long-term service contract margins.
As part of the company's overall Environmental, Social and Governance (ESG) program, the company under Mr. Petty's leadership continues to make progress against its goal of becoming a zero-waste facility, as well as dramatically reducing employee lost time injuries and near miss accidents.
"Kirk is a long-term employee of Capstone and has moved up through the organizational ranks, having worked in and lead our Quality organization, providing leadership of our Six Sigma initiatives, a key member of our Signature Series product launch, and remarkably led our multiple Manufacturing organizations transition into a single facility. Kirk has done an exceptional job leading all of Capstone's Operations - including the manufacturing, purchasing, planning and logistics teams," stated Darren Jamison, Capstone Turbine's President and Chief Executive Officer.
"Kirk's relentless creativity, drive and dogged focus on reducing our direct material costs while simultaneously tightly managing working capital, and driving us towards a zero-waste facility while improving overall operational safety has been extremely impressive and is a key factor towards our continuing progress against our stated target goal of positive Adjusted EBITDA in the quarter ending June 2020," concluded Mr. Jamison.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq: CPST) is the world's leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, providing scalable systems focusing on 30 kWs to 10 MWs that operate on a variety of gaseous or liquid fuels and are the ideal solution for today's distributed power generation needs. To date, Capstone has shipped over 9,000 units to 73 countries, and in FY19 saved customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.
This press release contains "forward-looking statements," as that term is used in the federal securities laws. Forward-looking statements may be identified by words such as "expects," "believes," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties 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 after the date of this release or to reflect the occurrence of unanticipated events.
"Capstone" and "Capstone Microturbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
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Released February 13, 2020