Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,438.49 29.95 0.18%
S&P 500 1,866.10 1.25 0.07%
NASDAQ 4,104.76 9.24 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,512.38 -3.89 -0.03%
TOPIX 1,171.40 -1.97 -0.17%
HANG SENG 22,760.24 64.23 0.28%

Real Goods Solar Reports Fourth Quarter and Full Year 2012 Results



Real Goods Solar Reports Fourth Quarter and Full Year 2012 Results

LOUISVILLE, Colo., April 1, 2013 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc.
(Nasdaq:RSOL), a nationwide leader of turnkey solar energy solutions for
residential, commercial, and utility customers, reported results for the
fourth quarter and full year ended December 31, 2012.

Q4 2012 Highlights

  * Completed more than 7 megawatts (MW) of residential and commercial
    projects in Q4 resulting in over 26 MW of total installations for the full
    year, leading to a major company milestone of more than 100MW in total
    completed projects.
     
  * Improved working capital management, which primarily drove the increase in
    cash at quarter-end to $10.4 million from $3.8 million at the end of the
    previous quarter.
     
  * Secured more than 5MW in solar power projects across Arizona and
    California in key education, municipal, and commercial market segments,
    including the Crane school district in Arizona to provide 1.7MW of solar
    on five school sites. In total, secured more than 6MW of new commercial
    projects in Q4. Advanced relationship with a northeast grocery chain to
    install more than 2.6MW of solar, with approximately 800 kilowatts
    installed in Q4.
     
  * Implemented organizational changes that substantially enhanced
    productivity and reduced operating expenses quarter over quarter, setting
    the stage for improved results in 2013.

Q4 2012 Financial Results as Compared to the Same Year-Ago Quarter

Net revenue for the fourth quarter of 2012 decreased 33% to $26.8 million from
$40.3 million in the same period last year. The decline in revenue is
attributable in part to the direct supplying to customers by financing
companies of certain components used in residential installation. Sourcing of
such components in conjunction with the associated financing allowed
residential customers to take advantage of certain expiring tax benefits, and
are referred to as "safe harbor" installations. While the company recognized
lower revenue from safe harbor installations, the company's gross margin
dollars were similar to non-safe harbor installations. In addition, results in
the fourth quarter of 2011 benefited from the one-time impact of the impending
expiration of certain tax incentives at year end. These tax incentives
resulted in the acceleration of construction of some projects from 2012 into
2011.

Gross profit decreased by $4.1 million to $5.5 million, or 20.7% of net
revenue, for the fourth quarter of 2012 from $9.6 million, or 23.9% of net
revenue, in the same period last year. The gross margin decrease primarily
reflects the impact of lower pricing related to commercial projects in 2012.

Operating expenses were approximately $8.9 million for the fourth quarter of
2012 compared to $9.5 million for the same period last year. The decrease in
operating expenses reflects generally lower compensation expenses and improved
productivity as a result of process improvements and consolidation of support
operations at the company's corporate headquarters in Colorado.  

Operating loss for the fourth quarter of 2012 was $3.3 million compared to
operating income of $0.2 million for the same quarter last year.

Net loss for the fourth quarter of 2012 was $3.8 million, or $(0.14) per
share, compared to net income of $0.1 million, or $0.00 per share, for the
same quarter last year. The net loss primarily reflects the impact of lower
pricing related to commercial projects, as well as an increase in interest
expense in the fourth quarter of 2012 compared to the same year-ago quarter.

Cash was $10.4 million at December 31, 2012. On March 27, 2013, the company
obtained an extension of its $6.5 million revolving line of credit with
Silicon Valley Bank through September 30, 2013. In addition, the company
extended the maturity date of the $6.85 million of related party debt, to
April and May 2014.

Fiscal Year 2012 Financial Results

Net revenue for 2012 decreased 15% to $92.9 million from $109.3 million for
2011. The decline in revenue is primarily attributable to the aforementioned
safe harbor activity. While the company recognizes lower revenue from safe
harbor installations, gross margin dollars were similar to non-safe harbor
installations.

Gross profit decreased by $4.8 million to $23 million, or 24.8% of net
revenue, for 2012 compared to $27.9 million, or 25.5% of net revenue for 2011.
The gross margin decrease primarily reflects the impact of lower pricing
related to commercial projects in 2012.

Operating expenses were approximately $38.7 million for 2012 compared to $27.7
million for 2011. The increase in operating expenses reflects costs associated
with the integration of and reorganizations related to the Alteris acquisition
and centralizing of various support functions at the company's headquarters in
Colorado.

Net loss for 2012 was $47.2 million, or $(1.77) per share, compared to a loss
of $1.9 million, or $(0.08) per share, in 2011. The increase in the loss
reflects the operating factors indicated above. In addition, the company
recorded goodwill and other asset impairments of $22 million and a $9.3
million increase in the provision for income taxes, which reflects the
establishment of a valuation allowance for net deferred tax assets.

Management Commentary

"It is clear that 2012 was a challenging year for the company," said Real
Goods Solar CEO Kam Mofid. "In the first half of 2012, we struggled to meet
our financial objectives due to challenges with the Alteris integration, while
also managing a number of key organizational and process changes. However, by
the end of the second half, we overcame these challenges and achieved major
improvements in Q4 that set the stage for a strong 2013.

"I am proud of what our employees have achieved, as well as the passion and
dedication everyone has demonstrated in driving this turnaround. In the fourth
quarter, we not only reduced SG&A significantly, but improved the topline,
achieved major wins in the commercial sector, and ended the quarter in a much
stronger cash position than the prior quarter. We also developed and began to
deploy a well-defined and clear roadmap toward sustainable and profitable
growth both in residential and commercial markets.

"The implementation of our strategic roadmap gained further momentum in 2013,
as we partnered with a leading homebuilder to deploy solar in several new
California communities and with an eye to expand to other solar-friendly
states. We also bolstered our residential financing offerings through a new
partnership with SunRun, a leading residential solar financing company. And
more recently, we formed a new e-commerce business unit and launched our new
online store, Shop.RealGoods.com, offering the latest in solar power and
environmentally friendly solutions for both home and business.

"As a leading downstream solar solutions provider, we will continue to
leverage our now more efficient and scalable infrastructure to penetrate key
markets and expand our western and northeastern footprints. We will take
advantage of the decreasing costs of PV systems in contrast to the generally
increasing cost of utility bills, which together work to expand our
addressable market by making the environmental benefits of solar more
economically compelling.

"We also recently welcomed Tony DiPaolo as our new CFO, and we believe his
strong track record of improving results and supporting organizations through
periods of change and rapid growth will help us continue to strengthen Real
Goods Solar and build shareholder value."

DiPaolo commented: "I am excited to join the Real Goods Solar team, especially
at this pivotal stage in its growth and development. The solar sector has been
one of the fastest growing industries in the country and in many ways the
journey to bring solar to the mainstream has only just begun. As one of the
oldest and a pioneering firm in the solar energy, Real Goods Solar has a
powerful history and legacy to build upon and make solar an increasing part of
our nation's total energy mix."

Conference Call and Webcast

Real Goods Solar will hold a conference call to discuss its fourth quarter
2012 financial results on Tuesday, April 2, 2013
at 11:00 a.m. Eastern time. Management will host the presentation, followed by
a question and answer period.

Date: Tuesday, April 2, 2013
Time: 11:00 a.m. Eastern time (9:00 a.m. Mountain time)
Dial-In Number: 1-877-941-4774
International: 1-480-629-9760
Conference ID#: 4611138
Webcast: http://public.viavid.com/index.php?id=104065

The conference call will be webcast live and available for replay via the
investor relations section of the company's website at RealGoodsSolar.com.
Supplemental earnings materials for the conference call are available in the
investor relations section of the company's website.

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 through April 9, 2013.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin number: 4611138

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 14,500 solar power systems representing more than 100
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.

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)                           Three Months Ended  Three Months Ended
(In thousands, except per share data) December 31, 2012   December 31, 2011  
Net revenue                           $ 26,830    100.0%  $ 40,292    100.0%
Cost of goods sold                     21,281     79.3%    30,674     76.1%
                                                                      
Gross profit                           5,549      20.7%    9,618      23.9%
Operating expenses                     8,869      33.1%    9,451      23.5%
                                                                      
Income (loss) from operations          (3,320)    -12.4%   167        0.4%
Interest expense                       (495)      -1.8%    (73)       -0.2%
                                                                      
Income (loss) before income taxes      (3,815)    -14.2%   94         0.2%
Income tax benefit                     —          —%       (22)       -0.1%
                                                                      
Net income (loss)                     $ (3,815)   -14.2%  $ 116       0.3%
                                                                      
Weighted-average shares outstanding:                                  
Basic                                  26,694              26,655     
Diluted                                26,694              26,655     
Net income (loss) per share:                                          
Basic                                 $ (0.14)            $ 0.00      
Diluted                               $ (0.14)            $ 0.00      

 
 
REAL GOODS SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
(Unaudited)                           Year Ended          Year Ended
(In thousands, except per share data) December 31, 2012   December 31, 2011  
Net revenue                           $ 92,891    100.0%  $ 109,257   100.0%
Cost of goods sold                     69,859      75.2%   81,397     74.5%
                                                                       
Gross profit                           23,032      24.8%   27,860     25.5%
Operating expenses                     38,716      41.7%   27,743     25.4%
Acquisition-related costs              —           — %     2,393       2.2%
Goodwill and other asset impairments   22,012      23.7%   —           —%
                                                                       
Loss from operations                  (37,696)     -40.6%  (2,276)    -2.1%
Interest expense                       (790)       -0.8%   (184)      -0.1 %
                                                                       
Loss before income taxes              (38,486)     -41.4%  (2,460)    -2.2 %
Income tax expense (benefit)           8,720       9.4%    (560)      -0.5%
                                                                       
Net loss                               $ (47,206)  -50.8% $ (1,900)   -1.7%
                                                                       
Weighted-average shares outstanding:                                   
Basic                                  26,673              23,572      
Diluted                                26,673              23,572      
Net loss per share:                                                    
Basic                                 $ (1.77)            $ (0.08)     
Diluted                               $ (1.77)            $ (0.08)     

 
 
REAL GOODS SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)                                          December 31, December 31,
(In thousands)                                       2012         2011  
Assets                                                             
Current assets:                                                    
Cash                                                 $ 10,390     $ 11,813 
Restricted cash                                       —            172 
Accounts receivable, net                              13,902       21,539 
Costs in excess of billings on uncompleted            5,288        5,411 
contracts 
Inventory, net                                        5,711        12,264 
Deferred costs on uncompleted contracts               896          1,313 
Receivable and deferred tax assets                    200          3,333 
Other current assets                                  1,930        1,014 
                                                                   
Total current assets                                  38,317       56,859 
Property and equipment, net                           3,991        6,930 
Deferred tax assets                                   —            5,444 
Goodwill                                              —            19,885 
Other intangibles, net                                —            390 
Other assets                                          —            41 
                                                                   
Total assets                                         $ 42,308     $ 89,549 
                                                                   
Liabilities and shareholders' equity                               
Current liabilities:                                               
Line of Credit                                       $ 6,498      $ — 
Accounts payable                                      15,887       27,785 
Accrued liabilities                                   4,943        3,292 
Billings in excess of costs on uncompleted            2,975        2,144 
contracts 
Payable to Gaiam                                      64           476 
Related party debt                                    6,850        1,700 
Debt                                                  114          197 
Capital lease obligations                             213          126 
Deferred revenue and other current liabilities        396          2,388 
                                                                   
Total current liabilities                             37,940       38,108 
Debt, net of current portion                          69           202 
Capital lease obligations, net of current portion     374          433 
                                                                   
Total liabilities                                     38,383       38,743 
                                                                   
Total shareholders' equity                            3,925        50,806 
                                                                   
Total liabilities and shareholders' equity           $ 42,308     $ 89,549 
                                                                   

CONTACT: Investor Relations:
         Ron Both
         Liolios Group, Inc.
         Tel (949) 574-3860
         RSOL@liolios.com

Real Goods Solar, Inc. Logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement