Real Goods Solar Reports Third Quarter 2012 Results LOUISVILLE, Colo., Nov. 5, 2012 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc. (Nasdaq:RSOL), a leading provider of turnkey solar energy solutions, reported results for its third quarter ended September 30, 2012. Q3 2012 Highlights *Partnered with Gestamp Solar to expand Vermont's solar footprint with 4.8MW of solar projects. *Partnered with Eastman Companies to design and to install a 500 kW solar power system.Eastman Companies is a recognized leader in high quality real-estate developments with properties throughout New Jersey. *Led the design and installation of a 343kW solar power system at Big Y Foods, one of the largest independently owned supermarket chains in New England and Massachusetts. The solar power system offsets approximately 15% of the building's annual electricity needs. *Partnered with the Southeastern Environmental Education Alliance and the Connecticut Clean Energy Finance & Investment Authority to drive residential adoption of solar power systems in Massachusetts and Connecticut. *Appointed Angy Chin as interim CFO, bringing nearly a decade of executive management experience at public and private companies, including solar, e-commerce and retail. Q3 2012 Financial Results as Compared to the Same Year-Ago Quarter Net revenue for the third quarter of 2012 decreased 16.5% to $26.4 million from $31.6 million recorded in the same period last year. The revenue decline was primarily attributable to the direct supplying to customers by financing companies of certain components used on residential projects in order for the financiers to take advantage of expiring tax benefits (safe harbor). This unusual sourcing activity during the third quarter of 2012 reduced net revenues, but had no material impact on the company's gross profit. Gross profit decreased by $2.1 million to $5.7 million, or 21.8% of net revenue, for the third quarter of 2012 from $7.9 million, or 24.9% of net revenue, in the same period last year. The 310 basis point decrease in gross margin primarily reflects the reduction in the mix of residential projects which produce higher gross margins over commercial projects. The company expects a higher mix of commercial projects in 2012 over 2011. Operating expenses were approximately 42.2% of net revenue for the third quarter of 2012 compared to 25.7% in the same period last year.The increase in operating expense is due to the unusual revenue sourcing activity, the transitional cost of centralizing resources at the company's Colorado headquarters in preparation for the next phase of growth. Operating loss for the third quarter of 2012 was $27.5 million compared to $0.7 million for the same quarter last year. The operating loss for the third quarter of 2012 included goodwill and other asset impairments of $22.0 million, which were evaluated based on the company's stock trading price, recent operating losses, and financial forecast. Net loss for the third quarter of 2012 was $39.0 million, or $1.46 per share compared to a loss of $0.5 million, or $0.02 per share, for the same quarter last year. Income tax expense was $11.5 million for the third quarter of 2012 and included a provision to establish a valuation allowance of $14.5 million to offset the company's net deferred tax assets. Net loss for the third quarter was largely due to the aforementioned goodwill and other asset impairments charges, and the valuation allowance for our net deferred tax assets, which together amounted to $36.5 million. Real Goods Solar has maintained its good standing with Silicon Valley Bank (SVB) and has signed a commitment letter with SVB to extend the relationship through March 2013. First Nine Months of 2012 Financial Results For the first nine months of 2012, net revenue decreased 4.2% to $66.1 million from $69.0million for the same period last year.The net loss of $43.4 million for the first nine months of 2012 over the same period in the prior year is largely due to goodwill and asset impairments charges of $22.0 million, establishment of a valuation allowance for the company's net deferred tax assets of $14.5 million, integration and reorganization costs associated with the Alteris acquisition, and the centralization of support services to Colorado. Management Commentary "I am excited to support the company as the interim CFO and work with Kam to deliver improved results," said Angy Chin, Real Goods Solar interim CFO. "During the third quarter of 2012, we focused on operational excellence and greater fiscal responsibility, which included evaluating key end-to-end business processes that drove shorter lead times and cash-to-cash cycle. Furthermore, we improved controls over financial reporting which included an in-depth review of our balance sheet.We also developed matrixes for monitoring key performance indicators to drive accountability. We believe these efforts set the stage for the company to move forward with greater tenacity in delivering results." Kam Mofid, Real Goods Solar CEO commented, "Although the third quarter of 2012 included a number of unusual expenses and large non-cash items like goodwill impairment and deferred tax assets, it was also a quarter where we made substantial process and organizational improvements. These improvements will help us rebuild the company's historical positive momentum in growth and profitabilitythat we began to lose last year. We believe our momentum in the fourth quarter will pick up and will have meaningful impact on our results going forward.As an industry, the solar sector is going through a challenging time. However, the downstream business remains robust and a great part of the value chain. As one of the largest players in the downstream sector, Real Goods Solar is in a favorable position for double-digit revenue growth next year and significantimprovements in financial performance." Conference Call and Webcast Real Goods Solar will hold a conference call to discuss its third quarter 2012 financial results tomorrow, Tuesday, November 6, 2012 at 11:00a.m. Eastern time. Management will host the presentation, followed by a question and answer period. Date: Tuesday, November 6, 2012 Time: 11:00 a.m. Eastern time (9:00 a.m. Mountain time) Dial-In Number: 1-877-941-2068 International: 1-480-629-9712 Conference ID#: 4568314 Webcast: http://public.viavid.com/index.php?id=101987 The conference call will be webcast live and available for replay via the investor relations section of the company's website at RealGoodsSolar.com. Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860. A replay of the call will be available after 2:00 p.m. Eastern time on the same day and until November 13, 2012. Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay pin number: 4568314 About Real Goods Solar, Inc. Real Goods Solar, Inc. (Nasdaq:RSOL) is the nation's pioneer in delivering commercial, residential and utility turn-key solar energy solutions. Beginning with the very first photovoltaic panel sold in the U.S. in 1978, the company has installed more than 13,000 solar power systems representing 75 megawatts of clean energy. As one of the nation's largest and most experienced solar power installers, the company has 15 offices across the West and the Northeast. Real Goods Solar makes it easy for customers to save on their energy bill by providing a comprehensive solar solution, from design, financing, permitting and installation to ongoing monitoring, maintenance and support. For more information about Real Goods Solar, go to RealGoodsSolar.com or call (888) 507-2561. The Real Goods Solar, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6455 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. REAL GOODS SOLAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) ThreeMonthsEnded ThreeMonthsEnded (In thousands, except per share data) September 30, 2012 September30, 2011 Net revenue $ 26,358 100.0 % $ 31,586 100.0 % Cost of goods sold 20,621 78.2 % 23,733 75.1 % Gross profit 5,737 21.8 % 7,853 24.9 % Operating expenses 11,138 42.3% 8,105 25.7 % Acquisition-related costs — — % 383 1.2 % Goodwill and other asset impairments 22,012 83.5 % — — % Loss from operations (27,413) -104.0% (635 ) -2.0 % Interest expense (136 ) -0.5 % (104 ) -0.3 % Loss before income taxes (27,549 ) -104.5% (739 ) -2.3 % Income tax expense (benefit) 11,468 43.5 % (261 ) -0.8 % Net loss $ (39,017) -148.0% $(478 ) -1.5 % Weighted-average shares outstanding: Basic 26,677 26,655 Diluted 26,677 26,655 Net loss per share: Basic $(1.46 ) $(0.02 ) Diluted $ (1.46) $(0.02 ) REAL GOODS SOLAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) NineMonthsEnded NineMonthsEnded (In thousands, except per share data) September 30, 2012 September30, 2011 Net revenue $ 66,061 100.0% $ 68,965 100.0% Cost of goods sold 48,578 73.5% 50,723 73.5% Gross profit 17,483 26.5% 18,242 26.5% Operating expenses 29,847 45.2% 18,292 26.5% Acquisition-related costs — —% 2,393 3.5% Goodwill and other asset impairments 22,012 33.3% — —% Loss from operations (34,376) -52.0% (2,443 ) -3.5% Interest expense (295 ) -0.5% (111 ) -0.2% Loss before income taxes (34,671 ) -52.5% (2,554 ) -3.7% Income tax expense (benefit) 8,720 13.2% (538 ) -0.8% Net loss $ (43,391) -65.7% $ (2,016 ) -2.9% Weighted-average shares outstanding: Basic 26,672 22,534 Diluted 26,672 22,534 Net loss per share: Basic $ (1.63) $(0.09 ) Diluted $(1.63 ) $(0.09 ) REAL GOODS SOLAR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) September30, December 31, (In thousands) 2012 2011 Assets Current assets: Cash $3,827 $ 11,813 Restricted cash — 172 Accounts receivable, net 15,411 21,539 Costs in excess of billings on uncompleted 8,156 5,411 contracts Inventory, net 6,430 12,264 Deferred costs on uncompleted contracts 723 1,313 Receivable and deferred tax assets 228 3,333 Other current assets 1,306 1,014 Total current assets 36,081 56,859 Property and equipment, net 4,517 6,930 Deferred tax assets — 5,444 Goodwill — 19,885 Other intangibles, net — 390 Other assets 80 41 Total assets $40,678 $ 89,549 Liabilities and shareholders' equity Current liabilities: Line of Credit $6,500 $— Accounts payable 15,220 27,785 Accrued liabilities 2,978 3,292 Billings in excess of costs on uncompleted 1,890 2,144 contracts Payable to Gaiam 83 476 Debt 144 197 Capital lease obligations 161 126 Deferred revenue and other current liabilities 621 2,388 Total current liabilities 27,597 36,408 Related party debt 4,850 1,700 Debt, net of current portion 95 202 Capital lease obligations, net of current portion 462 433 Total liabilities 33,004 38,743 Total shareholders' equity 7,674 50,806 Total liabilities and shareholders' equity $ 40,678 $ 89,549 CONTACT: Investor Relations: Ron Both Liolios Group, Inc. Tel (949) 574-3860 RSOL@liolios.com Real Goods Solar, Inc. Logo
Real Goods Solar Reports Third Quarter 2012 Results
Press spacebar to pause and continue. Press esc to stop.