Capstone Targets $100M Run Rate Increases Q4 Revenue and Executes Strategic Brand Expansion
Capstone Holding Corp. (NASDAQ:CAPS) reported strong Q4 2024 performance with revenue growth exceeding 8% year-over-year. The company has set an ambitious target of reaching a $100 million revenue run rate and $10 million Adjusted Instone EBITDA by end of 2025.
Key operational highlights include the successful launch of Toro Stone across 6 new states with 90 display installations and over 50 customer orders. The company completed targeted cost reduction initiatives and achieved improved gross margins.
Capstone's 2025 acquisition strategy focuses on Tuck-In Acquisitions, Sister Companies, and Platform Acquisitions, with deal multiples ranging from 4-6x EBITDA. The company plans to structure acquisitions with 20%-45% non-cash consideration.
Capstone Holding Corp. (NASDAQ:CAPS) ha riportato una forte performance nel quarto trimestre del 2024, con una crescita dei ricavi superiore all'8% rispetto all'anno precedente. L'azienda ha fissato un obiettivo ambizioso di raggiungere un fatturato di $100 milioni e un EBITDA aggiustato di $10 milioni entro la fine del 2025.
I principali punti operativi includono il lancio di Toro Stone in 6 nuovi stati, con 90 installazioni espositive e oltre 50 ordini da parte dei clienti. L'azienda ha completato iniziative mirate di riduzione dei costi e ha ottenuto margini lordi migliorati.
La strategia di acquisizione di Capstone per il 2025 si concentra su acquisizioni a Tuck-In, aziende sorelle e acquisizioni di piattaforma, con multipli di affare che variano da 4 a 6 volte l'EBITDA. L'azienda prevede di strutturare le acquisizioni con una considerazione non in contante compresa tra il 20% e il 45%.
Capstone Holding Corp. (NASDAQ:CAPS) reportó un sólido desempeño en el cuarto trimestre de 2024, con un crecimiento de ingresos que superó el 8% interanual. La compañía se ha fijado un ambicioso objetivo de alcanzar una tasa de ingresos de $100 millones y un EBITDA ajustado de $10 millones para finales de 2025.
Los principales aspectos operativos incluyen el exitoso lanzamiento de Toro Stone en 6 nuevos estados, con 90 instalaciones de exhibición y más de 50 pedidos de clientes. La empresa completó iniciativas específicas de reducción de costos y logró mejorar los márgenes brutos.
La estrategia de adquisición de Capstone para 2025 se centra en adquisiciones Tuck-In, empresas hermanas y adquisiciones de plataforma, con múltiplos de trato que oscilan entre 4 y 6 veces el EBITDA. La compañía planea estructurar las adquisiciones con una consideración no en efectivo que varía entre el 20% y el 45%.
Capstone Holding Corp. (NASDAQ:CAPS)는 2024년 4분기 실적이 강세를 보였으며, 연간 수익 성장률이 8%를 초과했습니다. 회사는 2025년 말까지 1억 달러의 수익 목표와 1천만 달러의 조정된 EBITDA 목표를 설정했습니다.
주요 운영 하이라이트로는 6개 주에서 Toro Stone의 성공적인 출시와 90개의 전시 설치 및 50건 이상의 고객 주문이 포함됩니다. 회사는 목표 비용 절감 이니셔티브를 완료하고 개선된 총 마진을 달성했습니다.
Capstone의 2025년 인수 전략은 Tuck-In 인수, 자매 회사 및 플랫폼 인수에 중점을 두며, 거래 배수는 EBITDA의 4-6배에 해당합니다. 회사는 20%-45%의 비현금 대가로 인수를 구조화할 계획입니다.
Capstone Holding Corp. (NASDAQ:CAPS) a annoncé une solide performance au quatrième trimestre 2024, avec une croissance des revenus dépassant 8 % d'une année sur l'autre. L'entreprise s'est fixée un objectif ambitieux d'atteindre un chiffre d'affaires de 100 millions de dollars et un EBITDA ajusté de 10 millions de dollars d'ici la fin de 2025.
Les principaux faits opérationnels incluent le lancement réussi de Toro Stone dans 6 nouveaux états avec 90 installations d'affichage et plus de 50 commandes de clients. L'entreprise a terminé des initiatives ciblées de réduction des coûts et a obtenu des marges brutes améliorées.
La stratégie d'acquisition de Capstone pour 2025 se concentre sur les acquisitions Tuck-In, les entreprises sœurs et les acquisitions de plateforme, avec des multiples de transaction allant de 4 à 6 fois l'EBITDA. L'entreprise prévoit de structurer les acquisitions avec une contrepartie non monétaire comprise entre 20 % et 45 %.
Capstone Holding Corp. (NASDAQ:CAPS) hat eine starke Leistung im vierten Quartal 2024 gemeldet, mit einem Umsatzwachstum von über 8% im Jahresvergleich. Das Unternehmen hat sich ein ambitioniertes Ziel gesetzt, bis Ende 2025 eine Umsatzlaufzeit von 100 Millionen Dollar und ein bereinigtes EBITDA von 10 Millionen Dollar zu erreichen.
Zu den wichtigsten betrieblichen Höhepunkten gehört der erfolgreiche Start von Toro Stone in 6 neuen Bundesstaaten mit 90 Ausstellungsinstallationen und über 50 Kundenbestellungen. Das Unternehmen hat gezielte Kostenreduzierungsinitiativen abgeschlossen und verbesserte Bruttomargen erzielt.
Die Akquisitionsstrategie von Capstone für 2025 konzentriert sich auf Tuck-In-Akquisitionen, Schwesterunternehmen und Plattformakquisitionen, wobei die Deal-Multiplikatoren zwischen 4 und 6-fachem EBITDA liegen. Das Unternehmen plant, Akquisitionen mit 20%-45% nicht barer Gegenleistung zu strukturieren.
- Q4 revenue growth of 8% year-over-year
- Successful Toro Stone expansion with 90 displays and 50+ customers across 6 states
- Improved gross margins through cost reduction initiatives
- Clear acquisition strategy with favorable 4-6x EBITDA multiples
- Significant portion of future acquisitions (20-45%) to be funded with non-cash consideration, potentially leading to dilution
Insights
Capstone's Q4 results show 8% year-over-year revenue growth, demonstrating positive momentum in the company's core business. This acceleration in the second half of 2024 suggests their strategic initiatives are gaining traction in the building products distribution space.
The company has set ambitious targets for 2025, including a $100 million operating revenue run rate and $10 million in Adjusted Instone EBITDA. These targets represent significant growth objectives that align with management's stated goal of doubling the business through acquisitions.
Capstone's acquisition strategy appears disciplined, targeting deals at 4-6x EBITDA multiples with 20-45% of consideration structured as non-cash. This approach preserves capital while enabling expansion. The focus on tuck-in acquisitions for their Instone subsidiary suggests a practical path to enhancing earnings without overextending financially.
Operational improvements are also noteworthy, with cost reduction initiatives yielding improved gross margins. The successful launch of their proprietary Toro Stone brand across 6 new states with 90 display installations and orders from 50+ customers demonstrates effective execution on their brand expansion strategy.
For a company with a $3.4 million market cap, the targeted $100 million revenue run rate indicates management is pursuing aggressive but potentially transformative growth that could significantly alter the company's valuation profile if achieved.
Revenue Up over
Toro Stone Launched in 6 New States
ALSIP, ILLINOIS / ACCESS Newswire / April 1, 2025 / Capstone Holding Corp. (the "Company" or "Capstone"), (NASDAQ:CAPS), a national building products distribution company that has successfully grown its business organically and through well-timed acquisitions, announced financial results for the full year ended December 31, 2024.
Matt Lipman, CEO of Capstone, said,
"I'm proud of the team's execution and focus on growth in the second half of the year. As the parent company, our mission is clear: double the size of the business through targeted, strategic acquisitions - and we believe we're well on our way. We remain focused on scaling efficiently."
The Company is targeting an operating company revenue run rate by the end of 2025 of
Kevin Grotke, CEO of TotalStone, LLC (dba "Instone"), a wholly owned operating subsidiary of Capstone and its primary business activity, said,
"I'm incredibly proud of our team's execution and their sharp focus on customer acquisition and top-line growth. Their efforts have laid a strong foundation for continued success, and I'm excited to see the momentum carry into 2025 as we work toward achieving our ambitious goals - particularly the growth of our proprietary brands."
Capstone continues to position itself as a premier, national platform in the building products space. The Company is expanding its geographic footprint, strengthening its portfolio of proprietary brands, and delivering exceptional value to customers and stakeholders alike.
FY 2024 Corporate and Operational Highlights
Set Acquisition Strategy for 2025:
Focused on Tuck-In Acquisitions, Sister Companies, and Platform Acquisitions
Deal environment and structures remain favorable
Acquisition multiples of 4-6x EBITDA
20% -45% of consideration as non-cash
Majority of activity centers around strategic Tuck-In Acquisitions to accelerate Instone's earnings. Multiple sister company opportunities currently under review
Q4 Revenue and Unit Volume Growth:
Instone delivered over
8% year-over-year revenue growth in the fourth quarter of 2024.
Successful Launch of Toro Stone:
Installed 90 displays across 6 new states
Received orders from over 50 customers
Operational Efficiencies:
Completed targeted cost reduction initiatives
Achieved improved gross margins
For more details, see Capstone's annual report on the Form 10-K, available online, here. A detailed power point presentation of the Fiscal 2024 Update and targets for 2025 can be found online, here. Matt Lipman has also recorded a discussion of the presentation that is available at the same website.
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Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Capstone Holding Corp. may also make written or oral forward looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about Capstone's beliefs and expectations about: (i) possible future acquisitions including, but not limited to, acquisition multiples and the percentage of acquisition consideration that will be noncash; (ii) revenue run rate; and (iii) Adjusted Instone EBITDA run rate are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the Securities and Exchange Commission, available for review at www.sec.gov. All information provided in this press release is as of the date of the press release, and Capstone Holding Corp. undertakes no duty to update such information, except as required under applicable law.
In addition to figures prepared in accordance with GAAP, Capstone from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.
About Non-GAAP Financial Measures (Adjusted Instone EBITDA)
Capstone uses non-GAAP Adjusted Instone EBITDA as a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the United States (GAAP). A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows of a company. Adjusted Instone EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income (loss), operating income (loss), or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities or a measure of our liquidity.
We believe that Adjusted Instone EBITDA is a useful performance measure and is used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone. We define "Adjusted Instone EBITDA" as earnings (loss) before interest expense, any income taxes, depreciation and amortization expense, management fees incurred by Instone payable to Capstone and Brookstone, Instone board fees, share-based compensation, change in fair value of contingent consideration, and transaction costs.
Note 1: The
About Capstone Holding Corp. (CAPS)
Capstone Holding Corp. is a building products distribution company that has successfully grown its business organically and through well-timed acquisitions. We intend to use the distribution backbone of our operating subsidiary, that currently services 31 US states, to provide a value-added platform to make acquisitions. A key differentiator of the Company's strategy is that it maintains over half of its revenue from brands it owns or controls. Current products include stone veneer, landscape stone, and modular masonry fireplaces. Capstone's corporate headquarters is located in Alsip, Illinois. For more information, please visit the Company's website: www.capstoneholdingcorp.com.
Contact:
Matthew Lipman
Chief Executive Officer
Capstone Holding Corp.
Email: investors@capstoneholdingcorp.com
Website: www.capstoneholdingcorp.com
SOURCE: Capstone Holding Corp.
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