UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): May 9, 2011
REAL GOODS SOLAR, INC.
(Exact Name of Registrant as Specified in its Charter)
Colorado | 001-34044 | 26-1851813 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
833 W. South Boulder Road, Louisville, CO 80027-2452
(Address of Principal Executive Offices)
Registrants telephone number, including area code: (303) 222-8400
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 Financial Information
Item 2.02 | Results of Operations and Financial Condition |
On May 9, 2011, Real Goods Solar, Inc. issued a press release announcing results for its first quarter ended March 31, 2011. A copy of the press release is attached as Exhibit 99.1.
This Current Report on Form 8-K and the earnings press release attached hereto are being furnished by Real Goods to Item 2.02 Results of Operations and Financial Condition. In accordance with General Instruction B.2 of Form 8-K, the information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed incorporated by reference into any of the Registrants filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.
Section 9 Financial Statements and Exhibits
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit No. |
Description of Exhibit | |
99.1 |
Press Release issued by Real Goods Solar on May 9, 2011. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
REAL GOODS SOLAR, INC.
| ||
By: | /s/ Erik Zech | |
Erik Zech | ||
Chief Financial and Accounting Officer |
Date: May 9, 2011
Exhibit Index
Exhibit No. |
Description of Exhibit | |
99.1 |
Press Release issued by Real Goods Solar on May 9, 2011. |
Exhibit 99.1
Real Goods Solar Reports First Quarter 2011 Results
| Gross Margin Increases 200 Basis Points to 28.9% |
| Seventh Consecutive Quarter of Profitability |
Boulder, CO, May 9, 2011 Real Goods Solar, Inc. (NASDAQ: RSOL), a leading residential and commercial solar energy integrator, today announced results for its first quarter ended March 31, 2011.
Net revenue for the first quarter of 2011 increased 16.1% to $17.4 million from $15.0 million recorded in the same period last year. All of the year-over-year revenue growth was organic.
Gross profit increased to $5.0 million, or 28.9% of net revenue, for the first quarter of 2011 from $4.0 million, or 26.9% of net revenue, in the comparable period last year. The increase in gross profit percentage primarily reflects a shift in revenue mix towards higher margin residential installations and improved selling and installation practices.
Operating expenses as a percent of net revenue increased to 28.5% for the first quarter of 2011 from 26.7% in the comparable period last year. This primarily reflects a significant investment in commercial operations, partially offset by the leveraging of fixed costs.
Operating income for the first quarter of 2011 improved to $66 thousand, as compared to $27 thousand for the comparable period last year. EBITDA for the first quarter of 2011 was $288 thousand, or 1.7% of net revenue. Refer to the Non-GAAP Financial Measures table below.
Net income for the first quarter of 2011 improved to $37 thousand, or $0.00 per share, as compared to $17 thousand, or $0.00 per share, for the comparable period last year.
We are pleased with our revenue performance, improved gross profit margin and profitability in our seasonally slowest quarter of the year, commented John Schaeffer, President. We continue to see strong demand for both residential and commercial solar, and remain optimistic about seeing strong growth for the remainder of 2011. We continue to focus on building our backlog and on hiring installation crews where appropriate to expand our production capacity to keep up with demand.
Our discipline and planning allowed us to show strong financial metrics across the board in what is usually our slowest quarter of the year, said Erik Zech, Chief Financial Officer. This performance is particularly impressive given the production challenges experienced as a result of this being one of the rainiest winters in California history. Our ability to show both higher revenues and improved gross margins are indicative of the progress we have made in growing and optimizing our business. Our balance sheet remained strong at the end of the quarter with cash of $13.4 million and no debt.
Real Goods Solar will host a conference call tomorrow, May 10, 2011, at 8:30 a.m. PDT (11:30 a.m. EDT) to review the first quarter results.
Dial-in No.: | 877-941-2069 (domestic) or 480-629-9713 (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 May 17, 2011.
Replay number: | 877-870-5176 (domestic) or 858-384-5517 (international) | |
Pin: | 4435976 |
About Real Goods Solar, Inc.
Real Goods Solar, Inc. is a leading residential and commercial solar energy integrator, having installed over 7,000 solar systems. Real Goods Solar offers turnkey solar energy services, and has 33 years of experience in 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.
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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 Solars 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 | ||
415-295-4952 | ||
erik.zech@realgoods.com |
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REAL GOODS SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended March 31, 2011 |
Three Months Ended March 31, 2010 |
|||||||||||||||
Net revenue |
$ | 17,425 | 100.0 | % | $ | 15,005 | 100.0 | % | ||||||||
Cost of goods sold |
12,396 | 71.1 | % | 10,974 | 73.1 | % | ||||||||||
Gross profit |
5,029 | 28.9 | % | 4,031 | 26.9 | % | ||||||||||
Operating expenses |
4,963 | 28.5 | % | 4,003 | 26.7 | % | ||||||||||
Income from operations |
66 | 0.4 | % | 28 | 0.2 | % | ||||||||||
Interest income |
2 | 0.0 | % | | 0.0 | % | ||||||||||
Income before income taxes |
68 | 0.4 | % | 28 | 0.2 | % | ||||||||||
Income tax expense |
31 | 0.2 | % | 11 | 0.1 | % | ||||||||||
Net income |
$ | 37 | 0.2 | % | $ | 17 | 0.1 | % | ||||||||
Weighted-average shares outstanding: |
||||||||||||||||
Basic |
18,310 | 18,290 | ||||||||||||||
Diluted |
18,310 | 18,364 | ||||||||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.00 | $ | 0.00 | ||||||||||||
Diluted |
$ | 0.00 | $ | 0.00 |
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REAL GOODS SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, 2011 |
December 31, 2010 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash |
$ | 13,355 | $ | 11,123 | ||||
Accounts receivable, net |
15,625 | 19,259 | ||||||
Inventory, net |
5,809 | 6,394 | ||||||
Deferred costs on uncompleted contracts |
183 | 215 | ||||||
Deferred advertising costs |
16 | 49 | ||||||
Deferred tax assets |
1,647 | 1,861 | ||||||
Other current assets |
793 | 687 | ||||||
Total current assets |
37,428 | 39,588 | ||||||
Property and equipment, net |
5,348 | 5,401 | ||||||
Goodwill |
732 | 732 | ||||||
Deferred tax assets |
1,992 | 1,744 | ||||||
Other assets |
385 | 498 | ||||||
Total assets |
$ | 45,885 | $ | 47,963 | ||||
Liabilities and shareholders equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 8,128 | $ | 10,000 | ||||
Accrued liabilities |
2,573 | 2,630 | ||||||
Deferred revenue on uncompleted contracts |
36 | 534 | ||||||
Payable to Gaiam |
3,100 | 2,865 | ||||||
Total current liabilities |
13,837 | 16,029 | ||||||
Total shareholders equity |
32,048 | 31,934 | ||||||
Total liabilities and shareholders equity |
$ | 45,885 | $ | 47,963 | ||||
Non-GAAP Financial Measures
We have utilized the non-GAAP information set forth below as an additional device to aid in understanding and analyzing our financial results for the three and twelve months ended March 31, 2011. We believe that these non-GAAP measures will allow for a better evaluation of the operating performance of our business and facilitate meaningful comparison of the results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered a substitute for results that are presented in a manner consistent with GAAP.
Reconciliations of our three and twelve months ended March 31, 2011 GAAP income from operations to our non-GAAP earnings before interest, taxes, depreciation, and share-based compensation are set forth below (unaudited, in thousands):
For the Three Months Ended March 31, 2011 |
For the Twelve Months Ended March 31, 2011 |
|||||||
Income from operations |
$ | 66 | $ | 2,060 | ||||
Exclusion of depreciation |
140 | 355 | ||||||
Exclusion of share-based compensation |
82 | 547 | ||||||
Non-GAAP EBITDA |
$ | 288 | $ | 2,962 | ||||
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