Capstone Turbine Corp (NASDAQ:CPST) Q1 2020 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 04:45 pm ET

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Capstone Turbine Corp (NASDAQ:CPST) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen and welcome to the Capstone Turbine Corporation Earnings Conference Call and Webcast for the First Quarter Fiscal Year 2020 Financial Results ended on June 30th, 2019. [Operator Instructions]

At this time it's my pleasure to turn the floor over to Ms. Jayme Brooks, Executive Vice President and CFO. Ma'am, the floor is yours.

Executive
Jayme L. Brooks

Thank you. Good afternoon and thank you for joining today's fiscal 2020 first quarter conference call. On the call with me today is Darren Jamison, Capstone's President and Chief Executive Officer. Today, Capstone issued its earnings release for the first quarter of fiscal 2020 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, August 8th, 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 provisions set forth on Slide 2, and 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 that 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 R. Jamison

Thank you, Jayme. Good afternoon, everyone, and thank you for joining today's fiscal 2020 first quarter conference call. Before we discuss our detailed financial results, I'd like to provide you with an overview of the financial highlights for the first quarter ended June 30th, 2019. I will then go into our broader business conditions followed by an update of our four key strategic initiatives.

Let's start with the financial and business highlights for the first quarter of fiscal 2020 on Slide number 4. In general, I'll say I'm pleased with our first quarter results, as we continue to quietly execute against our many stated business initiatives. However, the first quarter of the fiscal year for Capstone is typically not our best quarter of the year, so it's through this lens in which I say, I'm pleased. To see the positive impact of our new business initiatives, look first at the fact that our Q1 gross margin increased $1.1 million to $2.9 million from $1.8 million for the first quarter compared to last year. This equates to gross margin percentage expansion of 67% to 15% from 9% in the year ago first quarter on