Capstone Turbine Corporation
21211 Nordhoff Street
Chatsworth, CA 91311
I. EXECUTIVE SUMMARY
Capstone Turbine Corporation develops manufactures, markets, and services turbine
generator sets and related parts for use in stationary distributed power generation
applications. Its stationary distributed power generation applications include cogeneration
combined heat and power (CHP), integrated (CHP), resource recovery, and secure power,
as well as combined cooling, heat, and power; and its products are used as battery charging
generators for hybrid electric vehicle applications. The company primarily offers
microturbine units, subassemblies, and components. It also provides various accessories,
including rotary gas compressors with digital controls, heat recovery modules for CHP
applications, dual mode controllers that allow automatic transition between grids connect
and stand-alone modes, batteries with digital controls for stand-alone/dual-mode
operations, power servers for multipack installations, and protocol converters for Internet
access, as well as frames, exhaust ducting, and installation hardware. Further, it
remanufactures microturbine engines; and provides after-market parts and services,
scheduled and unscheduled maintenance, and factory and on-site training services. The
company’s microturbines can be fueled by various sources, including natural gas, propane,
sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its
products directly to end users, as well as through distributors in North America, Asia,
Australia, Europe, the Russian Federation, and South America. Capstone Turbine
Corporation was founded in 1988 and is based in Chatsworth, California.
II. COMPANY DESCRIPTION
a. INDUSTRY
Microturbines are small combustion turbines approximately the size of a refrigerator with
outputs of 25 kW to 500 kW. They evolved from automotive and truck turbochargers,
auxiliary power units (APUs) for airplanes, and small jet engines. Most microturbines are
comprised of a compressor, combustor, turbine, alternator, recuperator (a device that
captures waste heat to improve the efficiency of the compressor stage), and generator.
Microturbines can be used for stand-by power, power quality and reliability, peak shaving,
and cogeneration applications. In addition, because microturbines are being developed to
utilize a variety of fuels, they are being used for resource recovery and landfill gas
applications. Microturbines are well suited for small commercial building establishments
such as: restaurants, hotels/motels, small offices, retail stores, and many others.
b. COMPANY
Capstone Turbine Corporation, incorporated in 1988, is a California based gas turbine
manufacturer. Capstone geared up for an initial public offering of a stock in 2000, the state
of California, where electricity had been deregulated, suffered from a power shortage that
resulted in rolling blackouts. As a result capstone received a great deal of attention from
Wall Street. With Goldman, Sachs & Co. and Merril Lynch & Co. acting as underwriters,
the company sold 9.1 million shares at $16 a share on June 29, 2000. The Company was
cofounded in 1988 as NoMac Energy Systems by James C. Noe and Robin Mackay, who
fused their last names to coin “NoMac.” In 1993 the Rosen brothers bought NOMAC
along with funding from a venture capital firms Sevin Rosen Funds and Canaan Partners.
Capstone’s corporate governance is comprised of nine board members.
BOARD OF DIRECTORS:
–Richard Atkinson
Chief Financial Officer
Gradient Resources
-John Jaggers
General Partner
Sevin Rosen Funds
-Darren Jamison
President and CEO
Capstone Turbine Corporation
-Noam Lotan
President & CEO, Resonate Industries, Inc
Former President & CEO
MRV Communications, Inc.
-Gary Mayo
Principal, Sustainability Excellence Associates, LLC
Former Vice President Energy & Environmental Services
MGM Resorts International
-Eliot Protsch
President, Wapsie Investment & Advisory, LLC
Retired Sr. Executive Vice President & Chief Operation
Officer/Chief Financial Officer, Alliant Energy Corporation
-Gary Simon
President, Sigma Energy Group
Retired President and CEO, Acumentrics Corporation
-Holly Van Deursen
Non-Executive Director (several companies)
Former Executive, British Petroleum
-Darrell Wilk
President, Ace Label Systems
Former Vice President, ITT Corp. Electronic Components
CAPSTONE MANAGEMENT TEAM
Darren Jamison
President and Chief Executive Officer
Mr. Jamison joined Capstone Turbine Corporation on December 18, 2006. Mr. Jamison
most recently served as President and Chief Operating Officer of Northern Power Systems,
Inc. At Northern Power, he more than tripled sales over a 2-year period. He broadened
their offering to include product and service business and instituted a number of successful
acquisitions. Prior to joining Northern, Mr. Jamison was Vice President and General
Manager of Distributed Energy Solutions for Steward & Stevenson Services, Inc. from
1994 to 2003. He holds a B.A. degree in Business Administration and Finance from Seattle
University.
Edward Reich
Executive Vice President and Chief Financial Officer
Effective February 11, 2008, Mr. Reich assumed the role of Executive Vice President and
Chief Financial Officer of Capstone Turbine Corporation. Mr. Reich has served as the
Companys Vice President, Financial Planning, and Analysis since August 2005 and has
over 17 years of financial management experience. Prior to joining Capstone, he was
employed by Kistler Aerospace Corporation, where he served as Corporate Controller. Mr.
Reich is a Certified Public Accountant (inactive) in the State of California and is a member
of Financial Executives International.
Mark Gilbreth
Executive Vice President & Chief Technology Officer
Effective as of November 10, 2008, Mark Gilbreth assumed the responsibilities of
Executive Vice President of Operations and Chief Technology Officer. Mr. Gilbreth joined
the Company in August 1995 and has held positions in Engineering, Program
Management, and Customer Service. He served as Vice President of Engineering
Technologies from February 2005 until April 2006. Mr. Gilbreth served as Executive Vice
President and Chief Operating Officer from April 2006 until February 2007. During that
time, he held the position of Interim President and Chief Executive Officer from July 2006
until December 2006. Mr. Gilbreth has served as Executive Vice President and Chief
Technology Officer since February 2007. Mr. Gilbreth received his Bachelor degree in
Computer Science from San Diego State University.
James Crouse
Executive Vice President of Sales & Marketing
Mr. Crouse joined Capstone Turbine Corporation on February 5, 2007. He leads Capstones
Sales, Marketing and Product Development efforts globally. Since joining Capstone, Mr.
Crouse has helped the company bring several new clean energy and renewable
microturbine products to market.
Mr. Crouse is the Chairman of the Board for the World Alliance for Decentralized Energy
(WADE). WADEs membership includes more than 200 corporate leaders in the
decentralized-energy industry, and national cogeneration and decentralized energy
associations worldwide.
In December 2010, U.S. Secretary of Commerce Gary Locke named Mr. Crouse to a
national advisory committee that will promote U.S. exports of renewable energy and
energy efficient technologies. Mr. Crouse is one of 29 members on this Renewable Energy
and Energy Efficiency Advisory Committee that will advise Locke on the development and
implementation of programs and policies to help expand the competitiveness of the U.S.
renewable energy and energy efficiency industries. In March 2011, Mr. Crouse testified in
Washington, D.C., before the Subcommittee on Commerce, Manufacturing and Trade
about Capstones success as a global exporter.
Prior to joining Capstone, Mr. Crouse spent more than 20 years developing cogeneration
and renewable energy projects throughout the United States.
Larry Colson
Senior Vice President of Human Resources
Larry Colson joined Capstone on June 19, 2006. Prior to joining Capstone, Mr. Colson was
Vice President, Human Resources at Advanced Bionics (a Boston Scientific Company).
Prior to that he was Vice President, Human Resources at Alpha Therapeutic Corporation.
For over 15 years, Mr. Colson served as Vice President, Human Resources at the Data
Systems Division of Litton Industries, a multi-billion dollar worldwide producer of
advanced electronic systems. He was also recruited to join UNOVA, as Vice President,
Human Resources for this global supplier of mobile information technologies, wireless
networks for e-commerce fulfillment and industrial automation systems.
Mr. Colson holds a Masters in Business Administration from the University of Southern
California.
Robert Gleason
Senior Vice President of Program Management
Mr. Gleason joined Capstone on April 6, 2011. Mr. Gleason most recently served as head
of the Program Management Office (PMO) at Parker Aerospace, Parker Hannifin
Corporation. Mr. Gleason spent more than 17 years in program management, systems
engineering and business development in high technology international environments. He
brings extensive experience in structured project management methodologies for
standardization and governance of the project life cycle. Mr. Gleason holds a Bachelor of
Science Degree in Aeronautical Engineering from Western Michigan University and is a
certified Project Management Professional (PMP) from the Project Management Institute.
Matt Vuolo
President of Customer Service
Mr. Vuolo joined Capstone Turbine Corporation in May 2007 and assumed the role of Vice
President of Customer Service in October 2011. Mr. Vuolo has held increasingly
responsible management positions with Capstone including East Coast Regional Service
Manager, Director of Customer Service, East Coast and Director of Global Service. Prior
to joining Capstone Mr. Vuolo had over 20 years’ experience in field service including
Regional Service Manager for Northern Power Systems, Inc. and ran a successful
consulting company, Matco Services.
Mike Eggers
Director of Operations
Mr. Eggers joined Capstone in 2009 and effective in June 2011 assumed the role of
Director of Operations. Mr. Eggers has over 13 years of operations management
experience with leadership roles in North America and Asia. Mr. Eggers has led business
transformation efforts at both Ingersoll Rand and ConAgra. These efforts focused on
implementing Lean Management techniques to drive down cost and increase capacity with
