Capstone Turbine Posts Positive Cash From Operations as Total Cash on Hand Increases to $16.7m in Q2 From $16.2m in Q1
Positive Cash Flow from Operations in Q2 Despite Business Impacts of COVID-19
VAN NUYS, CA / ACCESSWIRE / October 2, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that its preliminary financial results for the second quarter ended September 30, 2020, show positive cash generated from operations and total cash on hand increased to $16.7 million, up from $16.2 million in the prior quarter ended June 30, 2020.
Capstone has been working to increase its focus on developing an Energy as a Service (EaaS) business around its core microturbine technology. Management believes that as the Company continues to execute on this EaaS strategy, it should lead to more predictable and stable quarterly cash flows, despite product orders and backlog experiencing variability quarter-to-quarter depending on impacts from COVID-19, oil prices, or other global market factors.
"Our preliminary financial results indicate that Capstone generated positive cash from operations, and our total cash balance expanded quarter-over-quarter without any proceeds generated from any type of financing, loans or government grants during the period," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine.
"I'm extremely pleased that we delivered a positive adjusted EBITDA quarter in the first quarter of fiscal 2021 despite COVID-19, and followed that up by generating positive cash from operations in the second quarter of 2021. In my opinion, this clearly demonstrates the importance of our EaaS strategy and shows the impact it can have on cash flow and profitability even during the most difficult and unpredictable economic environments," added Mr. Jamison.
"These improvements in cash are being driven by our efforts to lower operating expenses and manage working capital," stated Eric Hencken, Chief Financial Officer and Chief Accounting Officer of Capstone Turbine. "Reducing inventory levels while closely managing accounts receivable and payable, in combination with improving aftermarket service margins and a continued rebound in product shipments, produced positive cash from operations, which we haven't done since the quarter ended March 31, 2018," concluded Mr. Hencken.
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, via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today's multi-technology distributed power generation projects.
For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: email@example.com. To date, Capstone has shipped nearly 10,000 units to 83 countries and in FY20, saved customers an estimated $219 million in annual energy costs and 368,000 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 October 2, 2020