Capstone Turbine Corp (NASDAQ:CPST) Q3 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 04:45 pm ET

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Capstone Turbine Corp (NASDAQ:CPST) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Capstone Turbine Corporation Earnings Conference Call for the Third Quarter Fiscal Year 2019 Financial Results ended on December 31, 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 program may be recorded.

And now I'd like to introduce your host for today's program, Jayme Brooks, Chief Financial Officer and Chief Accounting Officer. Please go ahead.

Executive
Jayme Brooks

Thank you. Good afternoon and thank you for joining today's fiscal 2019 third quarter conference call. On the call with me today is Darren Jamison, President and Chief Executive Officer. Today, Capstone issued its earnings release for the third quarter of fiscal 2019 and filed its quarterly 10-Q report with the Securities and Exchange Commission.

During the call today, we will be referring to slides that can be found on our website under the Investor Relations section. I would like to remind everyone that this conference call contains estimates and forward-looking statements that represent the company's views as of today, February 7, 2019. Capstone disclaims any obligation to update or revise these statements to reflect future events or circumstances.

You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. Please refer to the Safe Harbor provision set forth on slide two in today's earnings release and Capstone's filings with the Securities and Exchange Commission for information concerning factors that could cause actual results to differ materially from those expressed or implied by such 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 Chief Executive Officer.

Executive
Darren Jamison

Thank you, Jayme. Good afternoon, everyone, and thank you for joining today's fiscal 2019 third quarter conference call. Before we discuss our financial results, I'd like to provide you with an overview of the financial highlights for the third quarter, as well as a substantial subsequent event. I'll then go into our broader business conditions, followed by an update on our four key strategic initiatives.

In the third quarter of fiscal 2019, Capstone experienced positive trends from the increased revenue diversity, expanded revenue from its new Distributor Support System program and launched a newly expanded factory rental program.

Capstone ships 10.3 megawatts across a diverse set of market verticals and geographies. In addition, as highlighted on slide 5, we shipped 3.6 megawatts to the Permian Basin in Texas as part of our newly expanded Capstone factory's long-term rental program. One of the units we picture there on slide 5, as I've mentioned.

Therefore, the grand total of deployed microturbines in the quarter was 13.9 megawatts. In addition,