Mon, Sep 9, 8:51 PM (127 days ago)
For the quarter ending December 31, 2023, Capstone Green Energy Holdings, Inc. reported a significant turnaround, achieving a net income of $24.2 million compared to a loss of $6.3 million in the prior year, largely attributed to a $35.3 million gain from debt extinguishment during its Chapter 11 emergence. Revenue declined 30% to $14.6 million, driven by decreased product shipments, particularly in the U.S. and Canada. Gross profit improved to $3.0 million (21% margin) from $1.7 million (8% margin) due to higher pricing and a shift towards rental services, which have better margins. Operating expenses surged by 73% to $9.7 million, primarily due to legal and accounting fees related to the restatement of financials. Cash flow from operations was negative at $22.1 million, highlighting liquidity challenges, with cash reserves down to $3.9 million and a working capital deficit of $9.3 million. The company faces substantial uncertainties regarding its ability to sustain operations and meet financial obligations, particularly amid ongoing market volatility and competition. Future performance will depend on effective execution of its business strategy and improved market conditions.