1Q23 Results: Revenue Up 16% Y/Y, Gross Margin Improves 9.7% Y/Y; Focus on Key FY23 Objectives
|52 Week Range||$1.56-$6.56|
|Avg. Daily Vol. (30 day)||353,027.84|
|Shares Out (MM)||18.250063|
|Market Cap (MM)||$43.44|
|Enterprise Value ($MM)||80.05684|
|Fiscal Year End||March|
- Capstone recorded favorable results for the first quarter of the current fiscal year, with both the top- and bottom-line figures showing progress despite inflationary pressure and supply chain constraints. Revenue grew 16.0% to $18.7 million from $16.1 million in 1Q22, primarily attributable to Energy-as-a-Service (EaaS) long-term rental services and product shipments. Complete results can be accessed here.
- Gross margin increased to 25.2% from 16.5% in 1Q22. The increase was due to higher margins generated by the rental business, price increases implemented in May 2022, and lower expenses due to the company’s cost reduction plan, which was implemented in 4Q22 to focus on growing the high-margin EaaS business.
- Capstone recorded positive EBITDA of $0.4 million compared with negative EBITDA of $2.3 million in 1Q22. Net loss improved to $2.1 million or $0.13 per share from $2.2 million or $0.16 per share in 1Q22.
- The book-to-bill ratio dropped to 1.4:1 from 1.7:1 as a result of lower product shipments in 4Q22. The ending product backlog was $24.8 million compared with $25.3 million in the previous quarter, with new orders of $12.4 million compared with $12.7 million last quarter.
- Total EaaS long-term rental units under contract on June 30, 2022, were 34.4MW versus 10.1MW on June 30, 2021, representing 241% growth Y/Y. The company is targeting to cross 50MW of the rental fleet in FY23.
- The cash balance at the end of the quarter was $16.9 million, while outstanding debt was $58.6 million. Continued capital expenditures supporting the expansion of the EaaS business, changes in working capital, and interest cost on the Goldman Sachs three-year term note affected the cash balance during the quarter.
- The company’s primary objectives for FY23 are to generate steady revenue growth, notably from its rapidly growing EaaS business, achieve a positive EBITDA for the entire fiscal year, and enhance its liquidity position beyond cost-cutting strategies.
Source: Company Filings 10-Q
Capstone recorded favorable results for the first quarter of the current fiscal year, with both the top- and bottom-line figures showing progress despite inflationary pressure and supply chain constraints. Revenue grew 16.0% to $18.7 million from $16.1 million in 1Q22, primarily attributable to Energy-as-a-Service (EaaS) long-term rental services and product shipments. Complete results can be accessed here.
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