Capstone Green Energy Corporation

Good day, ladies and gentlemen, and welcome to your Capstone Green Energy Earnings Conference call and webcast for the financial results for the fourth quarter and full fiscal year 2021 ended on March 31st, 2021. All lines have been placed in a listen-only mode, and there will be a question and answer session following the presentation. As a reminder, today's program will be recorded at this time. It's my pleasure to turn the floor over to your host, Mr. Colby Peterson. Corporate Counsel, sir, the floor is yours.

Thank you very much. Good afternoon, and thank you for joining today's fiscal 2021 fourth quarter and full year conference call. On the call with me today is Darren Jamieson, Capstone Green Energy's president and chief executive officer, and Eric Hankin, chief financial officer. Today, Capstone Green Energy issued its earnings release for the fourth quarter and full year results for the fiscal 2021. We will be referring to slides that can be found on our website under the Investor Relations section during the call today. I want to remind everyone that this conference call contains estimates and forward-looking statements representing the company's views as of today, June 10, 2021. Capstone disclaims any obligations to update or revise these statements to reflect future events or circumstances. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks uncertainties, and other factors that are, in some cases, beyond our control. Please refer to the Safe Harbor provisions set forth on slide two and in Capstone's filings with the Securities and Exchange Commission for information concerning factors that could cause actual results to differ materially from those expressed or implied by such statements. Please note that, as Darren and Eric go through the discussion today, when they mention EBITDA, they are referring to adjusted EBITDA and the reconciliations in our presentation's appendix. I would now like to turn the call over to Darren Jamieson, President and Chief Executive Officer.

Thank you, Colby. Good afternoon, everyone. Thank you for joining us today to review our fourth quarter and full year fiscal 2021 results ending March 31st, 2021. Before getting into specific financial results, I'd like to review recent financial highlights from the fourth quarter and provide an update on our adjusted EBITDA improvement initiative. So let's go ahead and start with slide four. On slide four, we've outlined some of the financial highlights from the fourth quarter. I will not run through each item, but I would like to draw your attention to a couple of the more important events, beginning with revenue. Revenue is up nicely compared to last year's fourth quarter. Although last year was very tough with COVID-related issues, the growth is still significant with revenue of $17.9 million for the quarter, up from $11.6 million year over year. Our key metric of adjusted EBITDA, excluding executive bonus, was negative 1.9 million for the quarter compared to a negative 5 million in the same period the previous year. And we posted positive cash from operations of 5.1 million, including a 5 million legal settlement, compared to cash used in operations of 4 million in the fourth quarter last year. So that's a $9.1 million improvement year over year. So even without the settlement, we crossed over into positive cash from operations for the quarter. I know I've spoken about this frequently, but having a solid balance sheet is critical to executing our growth strategy and build business relationships with larger customers. I'm happy to say the cash increased to $49.5 million compared to $15.1 million at the end of last year. Moving on to slide five. Slide five shows the full year fiscal 2021. We generated positive $1.7 million cash from operating activities compared to a loss of 19.7 million last year. So we generated positive cash of 1.7 million versus a loss of 19.7 million last year. This is an extremely significant inflection point for Capstone and represents the most cash generated in company history. Revenue is down slightly, 2% year over year, despite the ongoing numerous external headwinds Adjusted EBITDA loss excluding executive bonus was only $4 million versus $13.2 million a year ago. Also not to be overlooked is the fact that we refinanced our Goldman Sachs three-year term note at a lower rate and also upsized it by $20 million, again adding flexibility to our balance sheet. Turning to slide six, the net result of our efforts is best shown on this slide. We achieved 92.5% of our stated adjusted EBITDA target. I know we have talked about this every quarter throughout fiscal 2021, but here we are finally with the results of all those efforts, despite the ongoing COVID issues that have lasted much longer than we originally anticipated. I am very proud of what we've accomplished in fiscal 2021. We need to discuss the future momentum we are carrying into fiscal 2022. As I have discussed, we have done an excellent job in cost cutting and efficiencies in the business. We are now laser focused on growing top line revenue as we exit COVID. Now let's go ahead and move on to slide seven. This is where the future begins with gross product bookings. In the fourth quarter, we reached 12.7 million, which despite legacy COVID impact was well above the fourth quarter last year and represents a very nice 40% growth over that period. for the prior quarter. Even if you look at it sequentially, we made solid progress of 21% from the third quarter. This shows the direction we are going, and although many of these things we have accomplished have been hidden by the impact of the pandemic and our ongoing vendor part quality issue. We are proud that we are and happy that we're coming out of COVID, and the gross product bookings is a leading indicator of better times ahead. I'll now turn the call over to Eric to provide more details on the solid fourth quarter financial results. Eric.