EX-99.1 2 dex991.htm PRESS RELEASE Press Release

 

 

Exhibit 99.1

LOGO

Real Goods Solar Reports Record Fourth Quarter Results

 

 

Fourth Quarter Revenue of $19.1 million

 

 

Second Consecutive Quarter of Profitability

Boulder, CO, March 8, 2010 – Real Goods Solar, Inc. (NASDAQ: RSOL), a leading residential solar energy integrator, today announced results for its fourth quarter and year ended December 31, 2009.

Net revenue for the fourth quarter of 2009 increased 41.8% to $19.1 million from $13.5 million recorded in the same period last year. All of the year-over-year revenue growth was organic.

Gross profit increased to $5.4 million, or 28.1% of net revenue, for the fourth quarter of 2009 from $3.2 million, or 23.5% of net revenue, in the comparable period last year. The increase in gross profit percentage primarily reflects improved installation practices as well as declines in module prices over the last year.

Operating expenses as a percent of net revenue decreased to 26.3% for the fourth quarter of 2009 from 42.1% in the comparable period last year. This decrease is partially a reflection of the significant fixed cost component of the business and the available leverage as revenues scale. Additionally, the lower operating expenses have resulted from significant cost savings achieved by transitioning all acquisitions to a single set of systems and a unified brand.

Net income for the fourth quarter of 2009 was $0.2 million, or $0.01 per share, as compared to a net loss of $27.4 million, or $1.53 per share, for the comparable period last year. Excluding the non-cash goodwill impairment charge, net of tax, of $25.9 million, net loss for the fourth quarter of 2008 would have been $1.5 million, or $0.08 per share.

For the year ended December 31, 2009, revenue was $64.3 million, a 64.0% increase from $39.2 million in the comparable period last year, due to acquisitions and organic growth. Net loss totaled $1.6 million, or $0.09 per share, compared to a net loss of $28.0 million, or $1.86 per share, for the year ended December 31, 2008. Excluding the non-cash goodwill impairment charge, net of tax, of $25.9 million, net loss for the year ended December 31, 2008 would have been $2.1 million, or $0.14 per share.

Results for the year ended December 31, 2008 do not include a full year of results for Real Goods Solar’s acquisitions of Independent Energy Systems on August 1, 2008 and Regrid Power on October 1, 2008. On a pro forma basis, adding the $15.1 million of revenue from acquisitions not included in the fiscal 2008 reported results, internal revenue growth would have been approximately 18%.

“The fourth quarter saw continued strong demand for residential solar,” commented John Schaeffer, President. “Bookings were robust throughout the quarter and we are pleased with the size of our backlog going into the slower winter months. Revenue for the quarter showed significant growth as a result of increasing installation capacity as well as completion of significant low-income housing projects in San Francisco and Richmond. We also reported our second consecutive quarter of profitability combined with over 40% internal revenue growth as we continue to see the benefits of scale, operational efficiencies and strong consumer demand.”

“We are pleased with our financial results for the fourth quarter and our ability to maintain profitability,” said Erik Zech, Chief Financial Officer. “Our ability to show gross margin expansion and the decline in operating expenses as a percentage of net revenue to 26.3% in the fourth quarter of 2009, as compared to 42.1% in the previous year are both indicative of the progress we have made in optimizing our business. Our balance sheet remained strong at the end of the year with a cash balance of $12.2 million and no debt.”

Real Goods Solar will host a conference call tomorrow, March 9, 2010, at 8:30 a.m. PST (11:30 a.m. EST) to review the fourth quarter and fiscal year results.

 

Dial-in No.:

   877-941-4774 (domestic) or 480-629-9760 (international)

Passcode:

   Real Goods


A replay of the call will begin approximately two hours after the end of the call and will continue until midnight EDT on March 16, 2010.

 

Replay number:

  800-406-7325 (domestic) or 303-590-3030 (international)

Pin:

 

4259909

About Real Goods Solar, Inc.

Real Goods Solar, Inc. is a leading residential solar energy integrator, having installed over 5,000 solar systems. Real Goods Solar offers turnkey solar energy services, and has 32 years of experience in residential solar energy, beginning with the sale in 1978 of the first solar photovoltaic, or PV, panels in the United States. For more information about Real Goods Solar, please visit www.realgoodssolar.com, or call (888) 507-2561.

This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as “expect,” “intend,” “believe,” “will,” “should” or comparable terminology or by discussions of strategy. While Real Goods Solar believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, introduction of new products and services, completion and integration of acquisitions, the possibility of negative economic conditions, and other risks and uncertainties included in Real Goods Solar’s filings with the Securities and Exchange Commission. Real Goods Solar assumes no duty to update any forward-looking statements.

 

Contact:   Erik Zech
  Chief Financial Officer
  415-456-2800 x107
  erik.zech@realgoods.com


REAL GOODS SOLAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

 

     Three Months Ended
December 31, 2009
  Three Months Ended
December 31, 2008

Net revenue

   $     19,118     100.0%   $     13,479     100.0%

Cost of goods sold

     13,755     71.9%     10,318     76.5%
                  

Gross profit

     5,363     28.1%     3,161     23.5%

Operating expenses

     5,026     26.3%     5,668     42.1%

Impairment loss

     —      0.0%     27,192     201.7%
                  

Income (loss) from operations

     337     1.8%     (29,699)    -220.3%

Interest income (expense)

     (3)    0.0%     59     0.4%
                  

Income (loss) before income taxes

     334     1.8%     (29,640)    -219.9%

Income tax expense (benefit)

     117     0.7%     (2,244)    -16.6%
                  

Net income (loss) attributable to Real Goods Solar, Inc.

   $ 217     1.1%   $ (27,396)    -203.3%
                  

Weighted-average shares outstanding:

          

Basic

     18,286         17,889    

Diluted

     18,364         17,889    

Net income (loss) per share attributable to Real Goods Solar, Inc. common shareholders:

          

Basic

   $ 0.01       $ (1.53)   

Diluted

   $ 0.01       $ (1.53)   


REAL GOODS SOLAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

 

     Twelve Months Ended
December 31, 2009
  Twelve Months Ended
December 31, 2008

Net revenue

   $     64,328     100.0%   $     39,221     100.0%

Cost of goods sold

     48,371     75.2%     28,779     73.4%
                  

Gross profit

     15,957     24.8%     10,442     26.6%

Operating expenses

     18,553     28.8%     14,051     35.8%

Impairment loss

     —      0.0%     27,192     69.3%
                  

Loss from operations

     (2,596)    -4.0%     (30,801)    -78.5%

Interest income (expense)

     (2)    0.0%     261     0.6%
                  

Loss before income taxes

     (2,598)    -4.0%     (30,540)    -77.9%

Income tax benefit

     (1,021)    -1.5%     (2,590)    -6.6%
                  

Net loss

     (1,577)    -2.5%     (27,950)    -71.3%

Net (income) attributable to the noncontrolling interest

     —      0.0%     (5)    0.0%
                  

Net loss attributable to Real Goods Solar, Inc.

   $ (1,577)    -2.5%   $ (27,955)    -71.3%
                  

Weighted-average shares outstanding:

          

Basic

     18,181         15,014    

Diluted

     18,181         15,014    

Net loss per share attributable to Real Goods Solar, Inc. common shareholders:

          

Basic

   $ (0.09)      $ (1.86)   

Diluted

   $ (0.09)      $ (1.86)   


REAL GOODS SOLAR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

     December 31,
2009
   December 31,
2008

Assets

     

Current assets:

     

Cash and cash equivalents

   $         12,206    $         12,339

Accounts receivable, net

     13,996      7,711

Inventory, net

     4,769      9,170

Deferred costs on uncompleted contracts

     1,024      970

Deferred advertising costs

     114      251

Receivable and deferred tax assets

     833      704

Other current assets

     598      332
             

Total current assets

     33,540      31,477

Property and equipment, net

     5,145      5,298

Goodwill

     732      —  

Deferred tax assets

     3,064      2,239

Other assets

     813      1,051
             

Total assets

   $ 43,294    $ 40,065
             

Liabilities and shareholders’ equity

     

Current liabilities:

     

Accounts payable

   $ 8,821    $ 6,501

Accrued liabilities

     2,500      1,135

Deferred revenue on uncompleted contracts

     —        400

Payable to Gaiam

     1,636      1,111
             

Total current liabilities

     12,957      9,147

Total shareholders’ equity

     30,337      30,918
             

Total liabilities and shareholders’ equity

   $ 43,294    $ 40,065