Capstone Distributor E-Finity Secures Three Large Factory Protection Plan (FPP) Contracts Totaling 3.1 Megawatts
November 12 2018 - 7:30AM
Continues Expansion Through West Virginia
Service Hub
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that its distribution
partner E-Finity Distributed Generation recently signed three
separate long-term Factory Protection Plan (FPP) multi-year service
contracts representing 3.1 Megawatts (MW).
E-Finity Distributed Generation, Capstone's distributor for the
Mid-Atlantic and Southeastern U.S., secured the significant
follow-on service contracts for multiple C65s and C1000
microturbines currently powering properties in multiple locations
in the region. The new contracts are for up to 15 years of
scheduled and unscheduled maintenance coverage. With these three
new contracts, E-Finity now has a total of over 302 microturbines
representing over 40 MW under long-term Capstone FPP contracts.
Capstone’s FPP is a comprehensive maintenance program designed
to give financial peace of mind to customers by setting the cost at
a fixed rate for both scheduled and unscheduled maintenance for the
life of the microturbine product. The FPP contract enables
customers to have predictable and stable maintenance costs over the
life of the equipment and protects the users from unscheduled
maintenance expenditures.
“At the end of last quarter, we had
approximately $74 million in long-term FPP service contract backlog
with another approximately $25 million in large pending FPP service
contracts we expected to close in the back half of the fiscal year.
These three contracts represent the first of the $25 million
pending contracts to close as anticipated,” said Darren Jamison,
Capstone’s President and Chief Executive Officer. “The revenue
growth in our aftermarket business is key to Capstone reaching our
profitability goals. To provide some perspective on this, last year
the aftermarket business accounted for 39% of our total revenue,
but made up 81% of our gross margin,” added Mr. Jamison.
In addition, E-Finity recently expanded its service operations
by opening a new warehouse and service center in Clarksburg, West
Virginia as well as a remote service hub in Beckley, West
Virginia. In addition E-Finity has hired an Operations
Supervisor to better service customers in the Marcellus Shale Play.
E-Finity now has locations in Pennsylvania, Washington DC, Florida,
and West Virginia.
According to the U.S. Energy Information Administration (EIA)
“the Marcellus Middle Devonian-age organic-rich formation, also
known as Marcellus Shale, extends in the subsurface from New York
State in the north to northeastern Kentucky and Tennessee in the
south and is the most prolific natural gas-producing formation in
the Appalachian basin. The formation footprint covers about 95,000
square miles with a prospective area about 72,000 square
miles.”
“Because of the proven ability of Capstone microturbines to
provide both economic savings, carbon savings and effectively power
through severe weather events like hurricanes, customers are
adopting our industry-leading FPPs to guarantee both high
availability, and if required, quick repairs of these critical
onsite power generation assets,” said Jeff Foster, Capstone’s
Senior Vice President of Customer Service.
“These types of long-term service contracts underpin our stated
goal of achieving full absorption of all corporate operating costs
from the gross margin from our predictable aftermarket future
revenue stream,” said Mr. Jamison. “As we approach and eventually
eclipse this inflection point, this will open up many competitive
options for Capstone moving forward for increasingly strong growth
of our behind the meter energy solution business,” added Mr.
Jamison.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST) is the world’s leading producer of low-emission microturbine
systems and was the first to market commercially viable
microturbine energy products. Capstone has shipped over 9,000
Capstone Microturbine systems to customers worldwide. These
award-winning systems have logged millions of documented runtime
operating hours. Capstone is a member of the U.S.
Environmental Protection Agency’s Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A DQS-Certified ISO 9001:2015 and ISO
14001:2015 certified company, Capstone is headquartered in
the Los Angeles area with sales and/or service centers in
the United States, Latin America, Europe, Middle East and
Asia.
For more information about the company, please visit
www.capstoneturbine.com. Follow Capstone Turbine on Twitter,
LinkedIn and YouTube.
Forward-Looking Statements
This press release contains “forward-looking statements,” as
that term is used in the federal securities laws. Forward-looking
statements may be identified by words such as “expects,”
“believes,” “objective,” “intend,” “targeted,” “plan” and similar
phrases. These forward-looking statements are subject to numerous
assumptions, risks and uncertainties described in Capstone’s
filings with the Securities and Exchange Commission that may cause
Capstone’s actual results to be materially different from any
future results expressed or implied in such statements. Capstone
cautions readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Capstone undertakes no obligation, and specifically
disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of
unanticipated events.
“Capstone” and “Capstone Microturbine” are registered trademarks
of Capstone Turbine Corporation. All other trademarks
mentioned are the property of their respective owners.
CONTACT: Capstone Turbine CorporationInvestor
and investment media
inquiries:818-407-3628ir@capstoneturbine.com
Integra Investor RelationsShawn M.
Severson415-226-7747cpst@integra-ir.com
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