Replies to post #68184 on Capstone Companies Inc (CAPC)

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Capstone Companies, Inc. Achieves Record Revenue in Third Quarter 2014
2 minutes ago - DJNF
Capstone Companies, Inc. Achieves Record Revenue in Third Quarter 2014
-- Record revenue of $7.7 million increased 40% in the third quarter

-- Generated over $1.4 million of cash from operations in the first nine

months of 2014

DEERFIELD BEACH, Fla., Nov. 14, 2014 (GLOBE NEWSWIRE) -- 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 unaudited financial results for the three- and nine-month periods ended September 30, 2014.

Stewart Wallach, Capstone's CEO, commented, "Our top-line results for the third quarter and year-to-date periods are encouraging. Our existing product lines have yielded strong sales as our retail partners continue to support the programs. We anticipated completing numerous product launches incorporating new power failure technologies by the end of the third quarter; however those introductions were slightly delayed due to the complexities of integrating the technologies into our product designs. Therefore it is important to note that the year-to-date results are independent of 2014 new product launches which further substantiates the strength of our existing lines and provides the catalyst for continued growth during 2015.

"Having completed record shipments of an estimated $7.7 million in the third quarter, Capstone's products have a very strong retail presence. We have made considerable investments through promotional allowances to support retail sales during the fourth quarter holiday period, and these investments are reflected in our third quarter results."

Record third quarter revenue of $7.7 million increased $2.1 million, or 36.9%, from the prior-year period. Gross profit was $1.1 million compared to $1.5 million in the third quarter of 2013. Gross margin was lower mainly as a result of promotional expenses totaling $728 thousand in the quarter compared with $113 thousand in the third quarter 2013. This level of promotional support drove retailers to bring forward significant inventories in anticipation of the holiday season. The Company also incurred a one-time $225 thousand atypical manufacturing expense in order to complete and expedite a $2.0 million purchase order to one of Capstone's major customers.

Operating profit of $0.4 million represented 4.6% of sales and was down from operating income of $1.0 million, or 18.4% of sales, in the prior-year period. Net income was $0.3 million compared with net income of $0.9 million in the third quarter of 2013.

Stewart Wallach added, "I encourage you to join us on Monday morning's teleconference in which Gerry McClinton and I will review these results and provide greater detail."