Benzinga | Oct 2, 2020 08:09AM EDT

Capstone Turbine Sees Prelim. Q2 Positive Cash Flow From Operations And Cash On Hand Of $16.7M

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.