Capstone Companies, Inc. Reports Sales Growth of 95% in First Quarter 2013

DEERFIELD BEACH, FL, May 14, 2013 – Capstone Companies, Inc. (CAPC), 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 2013 financial results.

Stewart Wallach, Capstone’s CEO, commented, “Our first quarter results were consistent with expectations set at the end of 2012 and reflect our growth initiatives, as well as product development and rebranding activities, which have resulted in greater awareness and additional retail customers.”

Revenue was $660,000 in the first quarter of 2013, an increase of 95% from $339,000 in the prior-year period, as the Company is now seeing the positive impact of its domestic strategy implemented in early 2012.

Gross profit for the first quarter 2013 increased to $194,000, up nearly 80% from $108,000 in the first quarter of 2012. Gross margin was 29.4% from 31.9% during the prior-year period. Sequentially, gross margin improved measurably from the 18.4% in the fourth quarter of 2012 and was attributable to product mix sold as a result of the domestic distribution program.

Total operating expenses increased to $506,000 in the first quarter of 2013, from $424,000 in the 2012 first quarter, an increase of $82,000, as the Company continued to invest for future growth.

During the first quarter, interest expense increased $42,000 to $73,700.

Net loss for the first quarter of 2013 was $386,000 compared with net loss of $348,200 in the first quarter 2012.

Investments driving growth and awareness
It is the Company’s intention to continue investing in capabilities and technologies, as needed, in order to execute its strategy to increase sales and production volume across all markets served. The rate of spending on these activities, however, will continue to be driven by market opportunities.

Mr. Wallach noted, “Our new strategic direction is taking hold. We anticipate this growth trend to continue as a result of the anticipated increase in our retail distribution network, the rebranding of Capstone’s Power Failure Solutions Program and future product launches.”

Webcast and Teleconference to Review Results and Outlook
The Company will host a live webcast and conference call on Wednesday, May 15, 2013 at 11:30 a.m. ET. 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 dialling (201) 689-8562. The listen-only audio webcast can be monitored at

A telephonic replay will be available from 2:30 p.m. ET the day of the teleconference until Wednesday, May 22, 2013. To listen to the replay of the call, dial (858) 384-5517 and enter replay pin number 413093. 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.

More information on Capstone Companies, Inc. can be found at and additional product details are available at

About Capstone Companies, Inc.

Capstone Companies, Inc. is a public holding company that engages, through its wholly-owned subsidiaries, Capstone Industries, Inc. and Capstone International HK, Ltd., in the development, manufacturing, logistics, and distribution of consumer and institutional products to accounts throughout North America and in international markets. See for more information about the Company and for information on our current product offerings


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