Capstone Companies Inc. Reports First Quarter 2017 Revenue of $6.8 Million

  • First quarter revenue of $6.8 million more than tripled over the 2016 first quarter, and exceeded guidance of $5.5 million provided on April 25, 2017
  • Strong backlog drives expectation for another record setting second quarter
  • Growth resulting from five new product launches

DEERFIELD BEACH, FL, May 15, 2017Capstone 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 first quarter 2017.

Stewart Wallach, Capstone’s CEO, commented, “Our brand strategy is working and has created differentiation for retailers in competing channels enabling the Company to expand penetration in the channel for long term growth.

“The continued strong interest in our LED lighting products produced another record backlog level at the end of the first quarter. The order activity and backlog level drives our expectation that the second quarter of 2017 will exceed the same prior-year period and be the strongest second quarter in company’s history.”

First Quarter Highlights

  • Revenue of $6.8 million exceeded guidance of $5.5 million, and more than tripled from $2.1 million in the prior-year period.
  • Gross profit more than doubled to $1.6 million over the prior-year period

First quarter revenue of $6.8 million improved $4.7 million over the first quarter of 2016. With this record quarter behind us, the trailing 12 performance puts the revenue at $35 million which would be an increase of 15% compared to 2016 year-end.

During the quarter, 5 new products were shipped which represented 64% of revenue. With the introduction of these new products, the quarter’s gross margin of 23.4% is a blended rate which reflects introductory promotional pricing to introduce the new items. Gross profit doubled to $1.6 million over the prior-year period.

Total Operating Expenses were $1.2 million up from $655 thousand in 2016. The operating expense increases were mainly the result of increased royalty payments due to higher revenues.

The Company repurchased and retired $150 thousand of company stock and paid down $137 thousand of old director loans during the quarter. Income from operations increased to $387 thousand as compared from a loss of $41 thousand in 2016. That is an operating improvement of $428 thousand from the prior year period.

Webcast and Teleconference to Review Results and Outlook

The Company will host a live webcast and conference call on Tuesday, May 16, 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

A telephonic replay will be available from 1:30 p.m. Eastern Time the day of the teleconference until Tuesday, May 23, 2017. To listen to the replay of the call, dial (412) 317-6671 and enter replay pin number 13659059. Alternatively, the archive of the webcast will be available on the Company’s website at 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 for more information about the Company and for information on our current product offerings.


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.

For more information

Aimee C. Gaudet
Corporate Secretary
Phone: (954) 252-3440, ext. 313





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