Capstone Turbine Corp (NASDAQ:CPST) Q2 2019 Earnings Conference Call Transcript

Nov 06, 2018 • 04:45 pm ET

Previous

Capstone Turbine Corp (NASDAQ:CPST) Q2 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Capstone Turbine Corp Earnings Call for the Second (sic) Quarter Fiscal Year 2019 Financial Results ended September 30, 2018. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. (Operator Instructions) As a reminder, today's conference is being recorded.

I would now like to turn the call over to Ms. Jayme Brooks, CFO and CAO. Ma'am, you may begin.

Executive
Jayme Brooks

Thank you. Good afternoon, everyone, and thank you for joining today's fiscal 2019 second quarter conference call. On the call with me today is our President and CEO, Darren Jamison. Today, Capstone issued its earnings release for the second quarter of fiscal 2019 and filed its quarterly report on Form 10-Q for the second quarter of fiscal 2019 with the Securities and Exchange Commission. During the call, we will be referring to slides that can be found on our website under the Investor Relations section.

(Forward-Looking Cautionary Statements)

Please note that as Darren and I go through the discussion today, keep in mind, when we mention EBITDA, we are referring to adjusted EBITDA, and the reconciliation can be located in the appendix of our presentation.

I would now like to turn the call over to Darren Jamison, President and CEO.

Executive
Darren Jamison

Thank you, Jayme. Good afternoon, everyone, and thank you for joining today's fiscal 2019 second quarter conference call. Before we start today, I want to remind investors to focus on what's really happening in the overall energy markets and more specifically the rise of distributed generation technologies behind the meter.

If you look at Slide 3 in our presentation today, it has a quote from JFK that simply states that "Change is the law of life and those who look only at the past or the present are certain to miss the future." If you look closely at what we're doing here at Capstone, you'll see we're building a global, multi-product, multi-market comprehensive energy business to meet the changing behind-the-meter distributed energy markets.

Also important to note on Slide 4, that we are seeing nearly a dozen positive tailwinds or growth catalysts, where in the recent years we had a mixture of headwinds and tailwinds. This is an extremely positive change and should lead to continued further growth for the business. As you all know, we reported preliminary results on October 3, but before I discuss our final Q2 results, I'd like to highlight a few key business developments since our early October press release.

Let's go ahead and turn to Slide 5. Since October 3, we unveiled an updated product development roadmap, including a new C65 Signature Series product similar to the highly successful C200 and C1000 family of Signature Series product line to better serve the fast-growing micro-grid market. The technology roadmap is shown on Slide 17 of the appendix.

We have also continued to expand into the Permian Shale Basin with a 2 megawatt rental