Benzinga | Jan 6, 2021 04:10PM EST

Capstone Turbine Sees Prelim. Q3 Sales $20.6M vs $16.42M Est.

Cash Increased to $32.0M from $16.8M with New Goldman Sachs 3-Year Term Note

VAN NUYS, CA / ACCESSWIRE / January 6, 2021 / 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 third quarter ended December 31, 2020, show preliminary revenues of $20.6 million, up 38% sequentially from $14.9 million in the second quarter ended September 30, 2020, and up 18%, from $17.4 million in the year-ago quarter, which was before the impact of the current global COVID-19 pandemic.

Total preliminary cash and cash equivalents increased to $32.0 million at December 31, 2020, up from $16.8 million at September 30, 2020, primarily due to the amendment of the Goldman Sachs Note Purchase Agreement (NPA) on October 1, 2020. Under the amended NPA, the Company issued $20.0 million in additional senior secured notes, increasing the total outstanding to $50.0 million. All $50.0 million of the senior secured notes now bear interest at LIBOR Rate plus 8.75% per annum, payable on the last day of each interest period. The entire principal amount under the NPA is due and payable on October 1, 2023.

Preliminary new gross product bookings in the third quarter ending on December 31, 2020, were $10.5 million, up 7%, from $9.8 million, in the second quarter ended September 30, 2020, and up 91%, from $5.5 million in the first quarter ended March 31, 2020. The product book-to-bill ratio decreased sequentially to 0.9:1 from 1.4:1 in the quarter as a result of the improved product shipments.

"I continue to be encouraged by our performance in fiscal 2021 as we delivered a positive adjusted EBITDA quarter in the first quarter, followed by positive cash from operations in the second quarter. Additionally, in the third quarter we expect to post the largest quarterly revenue in over a year, which we accomplished despite the continuing impacts of the COVID-19 global pandemic," said Darren Jamison Capstone President and Chief Executive Officer.

"Increasing top-line revenue and boosting liquidity have been important goals of ours this fiscal year following our successful cost cutting efforts, and we will continue to pursue revenue growth through a combination of our new Capstone direct sales organization; expanding our geographic distribution coverage; unique IndyCar branding strategy, and our increased digital marketing campaigns," concluded Mr. Jamison.

Caution About Preliminary Results

The financial data as of, and for the quarter ended, December 31, 2020 presented in this release is preliminary and is based upon the most current information available to management. The Company's actual results may differ from this preliminary financial data due to the completion of financial closing procedures, final adjustments and other developments. This preliminary financial data should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and is not necessarily indicative of the results to be achieved for the full fiscal year ending March 31, 2021 or any future period.