1Q22 Results: +13.3% Revenue Growth Despite Covid-19 and Supply Chain Challenges; Management Reiterates FY22 Priorities
|52 Week Range||$3.60-$15.28|
|Avg. Daily Vol. (30 day)||133,067|
|Shares Out (MM)||15.1|
|Market Cap (MM)||$69.60|
|Insiders Own %||22.1%|
|Short Int./% of Float||444k / 3.0%|
|Debt to Equity||251.6%|
|Revenue TTM (MM)||$69.5|
|Fiscal Year End||March|
- On August 11, 2021, Capstone Green Energy announced 1Q22 earnings results. The company delivered solid top-line growth despite ongoing Covid-19 and supply chain challenges. Revenue and EBITDA fell short of analyst estimates, but EPS beat by +$0.01 per share.
- The book-to-bill ratio was 1:1 for the quarter and new gross product orders were $8.2 million. Revenue grew +13.3% y/y to $16.1 million, mainly from increased shipments of the company’s C600 and C1000 microturbine systems. Capstone shipped 7.4 MW during the quarter with an average revenue per MW shipped of $1.1 million.
- Gross margin fell -730 bps y/y, mainly from lower overhead expenses in the prior year quarter related to Covid-19 business continuity cost savings initiatives. Similarly, adjusted EBITDA and net income fell by -$2.4 million and -$0.4 million y/y, respectively. The y/y declines were mainly driven by higher R&D and G&A expenses compared to the prior year quarter. EPS increased +$0.01 y/y to -$0.16 per diluted share.
- As of June 30, 2021, cash on hand stood at $49.2 million and debt outstanding was $56.6 million. The company raised +$11.0 million of cash during the quarter from its $10.0 million bought deal and proceeds from ATM sales.
- Management reiterated its FY22 business priorities, and specifically highlighted the margin opportunity associated with its long-term microturbine rental fleet as well as its goal to grow the fleet to 21.1 MW by the end of FY22 from 12.1 MW today.
- Capstone expects to capitalize on the multifold growth in microgrid capacity over the next decade through its new sales force, supply chain improvements, and expanded business development team. The company also plans to launch a 30% hydrogen product in FY22.
- Our prior content on CGRN can be accessed HERE.
On August 11, 2021, Capstone Green Energy announced 1Q22 earnings results. The company delivered solid top-line growth despite ongoing Covid-19 and supply chain challenges. Revenue and EBITDA fell short of analyst estimates, but EPS beat by +$0.01 per share.
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