• Loading stock data...
PublicWire | Emerging Market Stock News
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
No Result
View All Result
PublicWire
No Result
View All Result

Home » Energy » Capstone Companies Reports Second Quarter Record Revenues of $10.2 Million

Capstone Companies Reports Second Quarter Record Revenues of $10.2 Million

Randy Whitney by Randy Whitney
April 26, 2019
in Energy
29 min read
28
0

Aug 15, 2017, CAPC

OTC Disclosure & News Service

–

Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer of innovative LED lighting solutions including power failure lighting, today reported its financial results for the second quarter 2017.

Stewart Wallach, Capstone’s CEO, commented, “Our record revenue and solid profitability delivered in the quarter, further demonstrates Capstone’s abilities to execute its growth strategy. The Company’s momentum continues to strengthen as our product placements continue to expand.”

Second Quarter Financial Summary
($ in thousands, except per share data)
Q2 2017Q2 2016Change% Change
Revenue$10,220$8,9021,31814.8%
Gross profit2,6432,12951424.1%
Gross margin25.9%23.9%
Operating income1,3391,16117815.3
Operating margin13.1%13.0%
Net income before tax$1,3031,09420919.1%
Net income9011,082(181)(16.7%)
Earnings per diluted share$0.019($0.022)NMNM

Revenue growth in the second quarter of 2017 was the result of strong demand for the Company’s branded products including Capstone Lighting®, Hoover® Home LED and Duracell®.

Gross profit was 25.9% of revenue up 2% from the prior year period, resulting from the improved blended margin with the launch of the new products. Total operating expenses increased to $1.3 million from $967 thousand in the prior year period, due to the higher revenue volume and increased investment in promoting our licensed brands.

Diluted earnings per share was $0.019 in the second quarter of 2017.

2017 First Half Financial Summary
($ in thousands, except per share data)
1H 20171H 2016Change% Change
Total revenue$16,972$10,9805,99254.6%
Gross profit4,2222,7421,48054.0%
Gross margin24.9%25.0%
Operating income1,7261,12060654.1%
Operating margin10.2%10.2%

Net income before tax

$ 1,68299668668.9%
Net income115298316917.2%
Earnings (loss) per diluted share$ 0.024$0.020NMNM

Financial results for the first half of 2017 improved significantly over the prior-year period, reflecting the successful introduction of new products and the consumer acceptances of Hoover® Home LED and Duracell® brands. Compared to the same period 2016, revenue increased by nearly $6 million or 54.6%, Gross profit increased by $1.480 million or 54% up to $4.2 million and Net income before tax increased by $68 thousand or 68.9% up to $1.682 million.

Diluted earnings per share was $.024 up from $.020 in the same period last year.

Mr. Wallach added, “Our expanded product portfolio and related branding strategy drove record setting revenues and strong gross profit year to date. We are particularly pleased to report stable gross margins as our growth strategy is executed. Moreover, management is encouraged by the backlog buildup and look forward to maintaining momentum thru Q3. This is an exciting time for Capstone as the challenge of delivering growth, profitability continues to be met.”

Webcast and Teleconference to Review Results and Outlook

The Company will host a live webcast and conference call on Tuesday, August 15, 2017 at 10:30 a.m. Eastern Time. During the call, management will review the financial and operating results and discuss the Company’s corporate strategy and outlook. The conference call can be accessed by dialing (201) 689-8562. The listen-only audio webcast can be monitored at www.capstonecompaniesinc.com.

A telephonic replay will be available from 1:30 p.m. Eastern Time the day of the teleconference until Tuesday, August 22, 2017. To listen to the replay of the call, dial (412) 317-6671 and enter replay pin number 13664215. Alternatively, the archive of the webcast will be available on the Company’s website at www.capstonecompaniesinc.com. A transcript will also be posted to the website, once available.

About Capstone Companies, Inc.

Capstone Companies, Inc. is a public holding company that engages, through its wholly-owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Ltd., in the development, manufacturing, logistics, and distribution of consumer and institutional products, including the Hoover® HOME LED lighting product line, to accounts throughout North America and in international markets. See www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings.

The Hoover trademark and logo are registered trademarks of Techtronic Floor Care Technology Limited and are used under license by Capstone Industries, Inc. All rights reserved.

© 2017 DURACELL Bethel, CT 06801. DURACELL is a registered trademark of Duracell U.S. Operations, Inc., used under license. All rights reserved.

FORWARD-LOOKING STATEMENTS:

This news release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. Such statements consist of words like “anticipate,” “expect,” “project,” “continue” and similar words. These statements are based on the Company’s and its subsidiaries’ current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include consumer acceptance of the Company’s products, its ability to deliver new products, the success of its strategy to broaden market channels and the relationships it has with retailers and distributors. Prior success in operations does not necessarily mean success in future operations. The ability of the Company to adequately and affordably fund operations and any growth will be critical to achieving and sustaining any expansion of markets and revenue. The introduction of new products or the expanded availability of products does not mean that the Company will enjoy better financial or business performance. The risks associated with any investment in Capstone Companies, Inc., which is a small business concern and a “penny-stock Company” and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the risks and uncertainties more fully described in the Company’s Annual and Quarterly Reports filed with the Securities and Exchange Commission. Capstone Companies, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Contents of referenced URLs are not incorporated into this press release.

FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10-K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Three Months EndedFor the Six Months Ended
June 30,June 30,
2017201620172016
Revenues, net$10,219,548$8,902,189$16,971,744$10,980,403
Cost of sales(7,576,685)(6,773,465)(12,749,413)(8,238,123)
Gross Profit2,642,8632,128,7244,222,3312,742,280
Operating Expenses:
Sales and marketing564,519352,854941,275415,833
Compensation353,904316,011713,706624,469
Professional fees115,38171,057320,183175,342
Product development66,44763,908138,473100,182
Other general and administrative204,063163,656382,681306,411
Total Operating Expenses1,304,314967,4862,496,3181,622,237
Net Operating Income1,338,5491,161,2381,726,0131,120,043
Other Income (Expense):
Interest Income––12,945–
Interest expense(35,186)(66,424)(56,917)(124,159)
Total Other Income (Expense)(35,186)(66,424)(43,972)(124,159)
Income Before Tax Provision1,303,3631,094,8141,682,041995,884
Provision for Income Tax(402,000)(12,600)(530,000)(12,600)
Net Income$901,363$1,082,214$1,152,041$983,284
Net Income per Common Share
Basic$0.019$0.022$0.024$0.020
Diluted$0.019$0.022$0.024$0.020
Weighted Average Common Shares Outstanding
Basic46,694,05848,132,66447,155,59248,132,664
Diluted47,055,44648,290,37347,473,82948,290,373
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30,December 31,
20172016
(Unaudited)
Assets:
Current Assets:
Cash$1,173,996$1,646,128
Accounts receivable, net4,856,6214,449,179
Inventory267,266366,330
Prepaid expenses1,361,162330,020
Total Current Assets7,659,0456,791,657
Property and Equipment:
Computer equipment and software19,76719,767
Machinery and equipment340,534325,750
Furniture and fixtures5,6655,665
Less: Accumulated depreciation(286,016)(250,465)
Total Property & Equipment79,950100,717
Other Non-current Assets:
Deposit13,61612,193
Note receivable539,832526,887
Goodwill1,936,0201,936,020
Total Other Non-current Assets2,489,4682,475,100
Total Assets$10,228,463$9,367,474
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts payable and accrued liabilities$2,705,144$2,678,210
Income tax payable22,0881,588
Notes and loans payable to related parties1,053,8831,321,721
Total Current Liabilities3,781,1154,001,519
Long Term Liabilities:
Deferred tax liabilities354,000216,000
Total Long Term Liabilities354,000216,000
Total Liabilities4,135,1154,217,519
Commitments and Contingencies (Note 6)
Stockholders’ Equity:
Preferred Stock, Series A, par value $.001 per share, authorized 6,666,667 shares, issued -0- shares––
Preferred Stock, Series B-1, par value $.0001 per share, authorized 3,333,333 shares, issued -0- shares––
Preferred Stock, Series C, par value $1.00 per share, authorized 67 shares, issued -0- shares––
Common Stock, par value $.0001 per share, authorized 56,666,667 shares, issued 46,466,952 shares and 48,132,664 shares4,6464,813
Additional paid-in capital7,202,6917,411,172
Accumulated deficit(1,113,989)(2,266,030)
Total Stockholders’ Equity6,093,3485,149,955
Total Liabilities and Stockholders’ Equity$10,228,463$9,367,474
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended
June 30,
20172016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$1,152,041$983,284
Adjustments necessary to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization35,55128,289
Accrued interest on note receivable(12,945)–
Stock based compensation expense40,95028,500
Provision for deferred income tax138,000–
Accrued sales allowance(20,848)65,630
(Increase) decrease in accounts receivable(450,713)(2,406,176)
(Increase) decrease in inventory99,064(413,287)
(Increase) in prepaid expenses(1,032,565)(142,000)
Increase (decrease) in accounts payable and accrued liabilities111,954166,447
Increase (decrease) in accrued interest on notes payable(44,837)70,511
Net cash provided by (used in) operating activities15,652(1,618,802)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment(14,784)(4,701)
Net cash (used in) investing activities(14,784)(4,701)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable16,566,0819,860,252
Repayments of notes payable(16,566,081)(8,142,198)
Repurchase of shares from Involve, LLC(250,000)–
Proceeds from notes and loans payable to related parties–860,000
Repayments of notes and loans payable to related parties(223,000)(978,846)
Net cash provided by (used in) financing activities(473,000)1,599,208
Net (Decrease) in Cash and Cash Equivalents(472,132)(24,295)
Cash and Cash Equivalents at Beginning of Period1,646,128364,714
Cash and Cash Equivalents at End of Period$1,173,996$340,419
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest$101,755$97,494
Income taxes$371,500$7,500
Non-cash financing and investing activities:
Sale of Investment for Note receivable$–$500,000

View source version on businesswire.com: http://www.businesswire.com/news/home/20170814005804/en/

Copyright © 2017 Businesswire. All Rights Reserved

Tags: CAPCCapstone CompaniesLEDlightingpower failure
Randy Whitney

Randy Whitney

Randy is a marketing specialist with experience creating content for sports and real estate in New York City. He has written for Major League Baseball and Cut4 as well as contributed creatively to the growth and development of startups around the country.

Related Posts

ComEd preps response to restore power outages caused by storm and strong winds
Energy

ComEd preps response to restore power outages caused by storm and strong winds

June 10, 2020
133
President Donald Trump inspired a rise in oil futures after he said a deal between Saudi Arabia and Russia is underway.
Energy

Oil slightly recovers after Trump said a deal between Saudi Arabia and Russia might be reached in a ‘few days’

April 2, 2020
150
Oil refineries and storage facilities are about to reach their maximum capacity as the pandemic continues to shock demand.
Energy

Oil prices are approaching ‘negative territory’ as production increases after OPEC+ cuts expire

April 1, 2020
118
Senator Ted Cruz said that he and other GOP senators ecently ripped into the Saudi ambassador against weaponizing oil prices.
Energy

Ted Cruz: GOP senators warned Saudi Arabia against using oil as ‘economic warfare’ against Americans

March 30, 2020
151
The U.S. solar market installed 13.3 gigawatts (GW) of capacity in 2019, new report reveals.
Energy

US solar installations are expected to grow 47% in 2020 but coronavirus crisis might have an impact moving forward

March 17, 2020
115
Monday has seen a rise on oil prices, the first after six sessions of losses triggered by the coronavirus outbreak
Energy

Oil recovers after six sessions of losses as OPEC+ mulls to impose further cuts

March 3, 2020
127
Currently Playing

Subscribe To Our Newsletter

Ad

PublicWire | Emerging Market Stock News 24/7 | Investor Relations US Stock Market

© Copyright 2020 PublicWire.com

Navigate Site

  • About
  • #96576 (no title)
  • Disclaimer
  • Watch LIVE
  • Privacy Policy
  • Terms and Services
  • Contributors

Follow Us

No Result
View All Result
  • LIVE Investor News Channel
  • Cannabis
  • Energy
  • Finance
  • General
  • Medical
  • Podcasts
  • Retail
  • Technology
  • #370 (no title)

© Copyright 2020 PublicWire.com

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Public Wire Logo

Hello please subscribe to our newsletter to get up to date news weekly!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.