EARNINGS!
Capstone Companies, Inc. 350 Jim Moran Blvd, Suite 120 Deerfield Beach, FL 33442 FOR IMMEDIATE RELEASE
Capstone Companies, Inc. Achieves Gross Margin Expansion on Record Revenue in First Quarter 2014
? Record first quarter revenue of $4.1 million increased nearly six-fold from $0.7 million in the prior-year period
? Realized first quarter gross profit margin of 32%; Gross profit up over 6.5 times to $1.3 million
? Achieved net income of $0.3 million, a significant improvement over the prior-year period’s loss
DEERFIELD BEACH, FL, May 13, 2014 – Capstone Companies, Inc. (OTCQB: CAPC) (“Capstone” or the “Company”), a leader in the design and manufacture of specialty power failure lighting solutions and innovator of consumer safety and security products for the Hospitality, Retail and Institutional channels, reported first quarter unaudited financial results.
Stewart Wallach, Capstone’s CEO, commented, “We had a very strong start to 2014 following our record-setting financial performance in 2013 and are now running at a trailing twelve month revenue rate of about $18 million. The top-line results came in $1 million above our previous expectations as we pulled revenue in from the second quarter to meet customer timing requirements. Our margin growth illustrates the leverage and scalability of the business as well an improved product mix. We continue to invest in retail support programs, expand our core product offerings, and leverage Capstone International HK to expand non-core product offerings, and as a result we expect continued top-line growth and the resulting profitability.”
Building on Momentum
Capstone’s financial performance continues to align with the strategic initiatives that have been adopted over the past several years. Revenue increased six-fold from the prior-year quarter, delivering record first quarter revenue of $4.1 million. Gross profit improved to $1.3 million, for a record gross profit margin of 32%, driven by the increase in sales volume, efficient product design, strategic procurement practices and product mix. Operating expenses as a percentage of revenue were down sharply to 23% compared with 77% in the prior-year quarter, driven by higher revenue.
Mr. Wallach added, “Our strategic growth initiatives to deepen market penetration, expand our product portfolio, capitalize on innovative, rapid product development and the rationalization of our distribution channels continue to deliver impressive results. We are strategically well positioned for further growth, and will continue to execute our long-term plan by creating a strong and well-respected brand to drive shareholder value.
“With the pull-in of about $1 million of revenue from the second quarter, we are still expecting first half 2014 revenue to be between $4.5 million and $5.0 million.”
