Real Goods Solar Reports First Quarter 2013 Results

Real Goods Solar Reports First Quarter 2013 Results  LOUISVILLE, Colo., May 8, 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 first quarter ended March 31, 2013.  Q1 2013 Highlights    *Deployed solar energy systems totaling more than 4.6 megawatts (MW), up     23% versus Q1 2012.        *Selected by a leading production homebuilder and began installations to     deploy solar in a number of its new communities in California, with the     potential to expand to other states. Real Goods Solar is managing the     design, engineering, installation, and service of these residential solar     systems.        *Expanded solar service options through Sunrun to homeowners in the key     solar markets of California, Colorado, Massachusetts, and New York.        *Began an aggressive ramp up in the New York residential market to benefit     from the favorable solar economics in the state and to further leverage     the company's strong Northeast presence.        *Launched Shop.RealGoods.com, offering cost-savings solutions for     homeowners and businesses looking to 'go green.' The new online store     offers the latest in solar power and environmentally-friendly solutions     for both home and business.        *Engaged by the City of El Cerrito, California to design and install 336     kilowatts of solar power on several rooftops and solar carport structures     at the city's community center, public safety building, recycling center     and fire station.  Q1 2013 Financial Results Total revenue for the first quarter of 2013 decreased 8% to $16.8 million, as compared to $18.3 million in the same quarter last year. The revenue decline reflects lower prices paid by customers as a result of general market conditions and pricing pressures within the solar installation market. The decrease in the average selling price of solar energy systems more than offset the increase in the company's deployed solar energy systems versus the same year-ago quarter.  Gross profit was $4.6 million or 27.4% of net revenue in the first quarter of 2013, compared to $6.4 million or 35.2% of net revenue in the same quarter last year. The gross margin decrease primarily reflects the impact of lower pricing related to residential and commercial projects.  Operating expenses were $8.0 million for the first quarter of 2013 compared to $9.4 million for the same quarter last year. The decrease in operating expenses is primarily attributable to reduction in payroll and other personnel costs associated with improved productivity and more efficient back-office functions as well as other cost saving initiatives.  Loss from operations was $3.4 million in the first quarter of 2013 versus to $3.0 million in the first quarter of 2012.  Net loss for the first quarter of 2013 was $3.8 million or $(0.14) per share, compared to net loss of $1.9 million or $(0.07) per share in the same quarter last year. The increase in the net loss reflects the impact of lower selling prices and an increase in interest expense.In addition, the first quarter of 2012 included an income tax benefit of $1.2 million, whereas no such benefit was recorded in the first quarter of 2013.  Cash was $3.5 million at March 31, 2013. 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. The company also extended the maturity dates of the $6.85 million of related party debt to April and May of 2014.  Management Commentary "During the first quarter, we continued to focus on driving growth in deployments, reducing cost, and improving overall productivity," said Real Goods Solar CEO Kam Mofid. "Our total solar power systems deployed increased 23% to 4.6 megawatts while we also significantly reduced operating expenses from prior quarter, reflecting a more efficient operational structure and a much more disciplined approach towards managing all facets of the business. Operating expense reductions involved decreasing personnel costs along with enhancing productivity through more efficient business processes and greater project level control over working capital deployed and labor utilized.  "We see continued growth in our solar power deployments, supported by the strong operational progress during the quarter which also included a new partnership with Sunrun, a new e-commerce business unit and online store, Shop.RealGoods.com, and continued strengthening of our commercial pipeline with projects like the City of El Cerrito. We also announced an important expansion of our homebuilder program with a leading national production homebuilder to bring solar to all the homes in a number of their new communities, first in California and then potentially to other states. We believe the progress and momentum we established in the first quarter, which has continued to build in the second quarter, has set the stage for strong performance improvements in 2013.  "In fact, we announced after the end of the quarter that we strengthened our presence in key solar states, particularly in California with the Stockton Unified School District project to deploy solar power systems at 18 schools and facilities in 2013 and 2014. We also further expanded our educational customer base with the recently announced Church Farm School's solar installation, helping this educational institution reduce its operating costs and environmental impact.  "These latest installations reflect how the combination of state and federal incentives, attractive solar financing options and declining system costs are making it easier and increasingly more beneficial for businesses and homeowners to embrace solar energy. With these tailwinds and improved internal performance and capabilities, we will continue to strengthen our position as a leading downstream solar solutions provider. We also plan to leverage our now more efficient and scalable infrastructure to penetrate key markets and expand our western and northeastern footprints."  Conference Call and Webcast Real Goods Solar will hold a conference call to discuss its first quarter 2013 financial results on Wednesday, May 9, 2013 at 11:00a.m. Eastern time. Management will host the presentation, followed by a question and answer period.  Date: Thursday, May 9, 2013 Time: 11:00 a.m. Eastern time (9:00 a.m. Mountain time) Dial-In number: 1-877-941-8418 International: 1-480-629-9809 Conference ID: 4618376 Webcast: http://public.viavid.com/index.php?id=104661  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 through May 16, 2013.  Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay ID: 4618376  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 1-888-507-2561.  Forward-looking Statements 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) (In thousands, except per share data)                                                                                             ThreeMonthsEnded  ThreeMonthsEnded                                      March 31, 2013    March31, 2012 Net revenue                          $16,793   100.0 % $18,256   100.0 % Cost of goods sold                   12,201    72.6 %  11,829    64.8 % Gross profit                         4,592     27.4 %  6,427     35.2 % Operating expenses                   7,957     47.4 %  9,430     51.7 % Loss from operations                 (3,365 )  -20.0 % (3,003 )  -16.5 % Interest expense                     (428 )    -2.6 %  (49 )     -0.3 % Loss before income taxes             (3,793 )  -22.6 % (3,052 )  -16.8 % Income tax benefit                   —         — %     (1,196 )  -6.6 % Net loss                             $(3,793 ) -22.6 % $(1,856 ) -10.2 % Weighted-average shares outstanding:                              Basic                                26,696            26,661     Diluted                              26,696            26,661     Net loss per share:                                               Basic                                $(0.14)           $(0.07 )   Diluted                              $(0.14)           $(0.07 )                                                                REAL GOODS SOLAR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)                                                                                                      March31, 2013 December31, 2012 Assets                                                     Current assets:                                            Cash                                        $3,522        $10,390 Accounts receivable, net                    10,953        13,902 Costs in excess of billings on uncompleted  1,716         5,288 contracts Inventory, net                              6,096         5,711 Deferred costs on uncompleted contracts     708           896 Other current assets                        2,016         2,130 Total current assets                        25,011        38,317 Property and equipment, net                 3,784         3,991 Total assets                                $28,795       $42,308                                                           Liabilities and shareholders' equity                       Current liabilities:                                       Line of Credit                              $5,018        $6,498 Accounts payable                            8,960         15,887 Accrued liabilities                         2,824         4,943 Billings in excess of costs on uncompleted  2,837         2,975 contracts Payable to Gaiam                            45            64 Related party debt                          —             6,850 Debt                                        99            114 Capital lease obligations                   230           213 Deferred revenue and other current          680           396 liabilities Total current liabilities                   20,693        37,940 Related party debt                          6,850         — Debt, net of current portion                47            69 Capital lease obligations, net of current   333           374 portion Other liabilities                           349           — Total liabilities                           28,272        38,383 Total shareholders' equity                  523           3,925 Total liabilities and shareholders' equity  $28,795       $42,308                                                            CONTACT: Media and Investor Relations Contact:                   Ron Both          Liolios Group, Inc.          Tel 1-949-574-3860          RSOL@liolios.com  Real Goods Solar, Inc. Logo