Capstone Companies Revenue Nearly Doubles to a Record $30.6 Million in 2016
Print
Alert
Capstone Companies, Inc. (USOTC:CAPC)
Intraday Stock Chart
Today : Monday 27 March 2017
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 fourth quarter and full year 2016.
Stewart Wallach, Capstone’s Chairman and CEO, commented, “2016 was an excellent year for Capstone. We exceeded $30 million in revenue, a record, measurably expanded our operating margins and grew our net income more than four times over last year.
Importantly, our compound annual revenue growth rate was almost 50% over two years. We believe our performance has clearly substantiated that we have the right strategy, have successfully established a distinct niche in the home LED lighting space and have the talent and experience to execute well.
“We expect that we will have another strong year of growth in 2017. While doubling the Company might be a stretch, 25% to 30% growth is not unreasonable to expect. We will continue to drive growth by developing new lighting products that incorporate previously unmet functionality while utilizing the efficiency of LED lighting.”
Fourth Quarter Highlights
Total revenue of $8.0 million, up 11% over the same period in 2015
International sales increased 38% to $0.6 million
Strong gross profit of $1.8 million was up 22%, and gross margin increased 200 basis points to 22.7%
The Company fully paid down the $6.6 million Sterling National Bank note
Total revenue in the quarter was up on momentum within existing channels as relationships with both domestic and international retailers continued to deepen and expand.
International sales continued their impressive quarter-over-quarter increases as a result of strong sell thru of the Company’s innovative and unique products.
Gross margin expanded 200 basis points due to increased production efficiencies and favorable strength of the U.S. dollar.
Effective collection of outstanding accounts receivables substantially improved the Company’s cash position to $1.6 million at year-end.
Full Year 2016 Highlights
Total revenue surged 92% to $30.6 million from $15.9 million
International revenue showed continued strength, growing 116% to $2.4 million from $1.1 million
Gross profit increased 93% to $7.4 million from $3.8 million on slightly improved margin
Operating income climbed 226% to $3.3 million from $1.0 million, while operating margin improved 450 basis points to 10.9%
Net income increased four times to $2.8 million from $0.7 million
Financial results for 2016 were very strong with improvements across the board. For the year, total revenue improved due to very strong performance in the Accent Light Category in both the Capstone Lighting and Hoover® Home LED brands.
The Company continued to build momentum within existing channels, and an increase in the frequency of product placements has increased revenue expansion.
Full year SG&A expenses decreased as a percentage of sales to 13.2% from 17.6% in 2015. This expense reduction of approximately $1.3 million contributed to the operating income improvement in 2016.
Webcast and Teleconference to Review Results and Outlook
The Company will host a live webcast and conference call on Tuesday, March 28, 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, followed by a question-and-answer session. 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. ET the day of the call until Tuesday, April 4, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13653298. Alternatively, the archive of the webcast will be available on the Company’s website at www.capstonecompaniesinc.com, along with a transcript, once available.
About Capstone Companies, Inc.
Capstone Companies, Inc. is a designer of innovative LED lighting solutions including power failure lighting, for consumers and institutions. The Company’s products are sold under the Capstone Lighting® and Hoover® HOME LED brands, to big box retailers, wholesale clubs, and home improvement stores throughout North America and in international markets. Capstone’s strategy is to utilize its low-cost manufacturing base to provide high-quality consumer products to its customers at a reasonable price, using primarily direct import distribution.
Visit www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings
