Real Goods Solar, Inc. (Nasdaq:RSOL), a leading
residential and commercial solar energy EPC provider, today
announced results for its fourth quarter ended December 31, 2011.
On December 19, 2011, Real Goods Solar closed on the previously
announced merger with Earth Friendly Energy Group Holdings, LLC
d/b/a Alteris Renewables, Inc. ("Alteris"), issuing 8.7 million
unregistered shares of its Class A common stock to Alteris' equity
holders for 100% of Alteris' outstanding equity. For accounting
purposes, Alteris' financial results were consolidated with Real
Goods Solar's beginning June 22, 2011.
Net revenue for the fourth quarter of 2011 increased 99.8% to
$40.3 million from $20.2 million recorded in the same period last
year. The revenue growth was attributable to the acquisition of
Alteris.
Gross profit increased to $9.6 million, or 23.9% of net revenue,
for the fourth quarter of 2011 from $6.2 million, or 30.9% of net
revenue, in the same period last year. The decrease in gross profit
percentage primarily reflects an increase in mix of commercial
revenue as well as a lower average gross margin on our commercial
projects for the fourth quarter of 2011.
Operating expenses increased $3.6 million to $9.5 million for
the fourth quarter of 2011 from $5.8 million for the same period
last year. As a percentage of net revenue, operating expenses
decreased to 23.5% from 28.9%. The increase in operating expenses
is attributable to the consolidation of Alteris.
Operating income for the fourth quarter of 2011 was $0.2 million
compared to $0.4 million for the same period last year. EBITDA,
excluding one-time expenses of $0.8 million, was $1.5 million for
the fourth quarter. Net income for the fourth quarter of 2011 was
$0.1 million, or $0.00 per share, as compared to $0.3 million, or
$0.01 per share, for the same period last year.
For the year ended December 31, 2011, revenue grew to $109.3
million, a 41.3% increase from $77.3 million last year. Operating
income for 2011, excluding acquisition-related costs of $2.4
million, was $0.1 million compared to $2.0 million in 2010.
Including the impact of the acquisition-related costs, net loss for
2011 was $1.9 million, or $0.08 per share, compared to net income
of $1.2 million, or $0.07 per share, last year.
On December 31, 2011, Real Goods Solar issued 2,153,293 shares
of Class A common stock to Gaiam upon Gaiam's conversion of its
remaining 2,153,293 shares of Class B common stock. Gaiam's
holdings of 10 million shares of Class A common stock now represent
approximately 38% of the total shares outstanding.
We made tremendous progress on the integration of Alteris in the
fourth quarter," commented Bill Yearsley, Chief Executive Officer.
"We are in the middle of a period of significant investment that is
positioning the company to be able to effectively scale and drive
efficiencies. We continue to centralize numerous functions in our
expanded Colorado headquarters and remain focused on driving
long-term profitability on a combined basis and to see the benefits
of being a unified national player."
"We were pleased to close the Alteris transaction in the fourth
quarter and to move forward with our strategy of becoming a truly
national player in the solar EPC market," said Erik Zech, Chief
Financial Officer. "We have been working hard to bring the aligned
businesses together onto common platforms and are now focused on
taking advantage of our increased scale. The company saw record
revenue in the fourth quarter and was also able to maintain solid
EBITDA profitability in a period of significant change and
investment. This profitability is particularly impressive given the
pre-acquisition losses that Alteris had experienced in the past and
is an indicator of the success of our integration efforts."
Real Goods Solar will host a conference call tomorrow, March 16,
2012, at 10:00 a.m. PDT (1:00 p.m. EDT) to review the fourth
quarter 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
30, 2012.
| Replay number: |
877-870-5176 (domestic) or 858-384-5517
(international) |
| Pin: |
4517782 |
About Real Goods Solar, Inc.
Real Goods Solar, Inc. is a leading residential and commercial
solar energy EPC provider, having installed approximately 13,000
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. With 15 offices in California,
Colorado and the Northeast, Real Goods Solar is one of the largest
residential and commercial solar installers in the country. For
more information about Real Goods Solar, please visit
www.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.
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| REAL GOODS SOLAR,
INC. |
|
|
| CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
|
| (Unaudited) |
|
|
| (In thousands, except per share
data) |
|
|
| |
|
|
| |
Three Months Ended December
31, 2011 |
Three Months Ended December
31, 2010 |
| Net revenue |
$ 40,292 |
100.0 % |
$ 20,162 |
100.0 % |
| Cost of goods sold |
30,674 |
76.1 % |
13,940 |
69.1 % |
| |
|
|
|
|
| Gross profit |
9,618 |
23.9 % |
6,222 |
30.9 % |
| Operating expenses |
9,451 |
23.5 % |
5,826 |
28.9 % |
| |
|
|
|
|
| Income from operations |
167 |
0.4 % |
396 |
2.0 % |
| Interest and other income (expense) |
(73) |
-0.2 % |
10 |
0.0 % |
| |
|
|
|
|
| Income before income taxes |
94 |
0.2 % |
406 |
2.0 % |
| Income tax expense (benefit) |
(22) |
-0.1 % |
156 |
0.8 % |
| |
|
|
|
|
| Net income. |
$ 116 |
0.3 % |
$ 250 |
1.2 % |
| |
|
|
|
|
| Weighted-average shares outstanding: |
|
|
|
|
| Basic |
26,655 |
|
18,308 |
|
| Diluted |
26,655 |
|
18,308 |
|
| Net income per share: |
|
|
|
|
| Basic |
$ 0.00 |
|
$ 0.01 |
|
| Diluted |
$ 0.00 |
|
$ 0.01 |
|
| |
|
|
|
|
| REAL GOODS SOLAR,
INC. |
|
|
| CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
|
| (Unaudited) |
|
|
| (In thousands, except per share
data) |
|
|
| |
|
|
| |
Year Ended
December 31, 2011 |
Year Ended
December 31, 2010 |
| Net revenue |
$ 109,257 |
100.0 % |
$ 77,324 |
100.0 % |
| Cost of goods sold |
81,397 |
74.5 % |
55,814 |
72.2 % |
| |
|
|
|
|
| Gross profit |
27,860 |
25.5 % |
21,510 |
27.8 % |
| Operating expenses |
27,743 |
25.4 % |
19,489 |
25.2 % |
| Acquisition-related costs |
2,393 |
2.2 % |
— |
0.0 % |
| |
|
|
|
|
| Income (loss) from operations |
(2,276) |
-2.1 % |
2,021 |
2.6 % |
| Interest and other income (expense) |
(184) |
-0.1 % |
15 |
0.0 % |
| |
|
|
|
|
| Income (loss) before income taxes |
(2,460) |
-2.2 % |
2,036 |
2.6 % |
| Income tax expense (benefit) |
(560) |
-0.5 % |
797 |
1.0 % |
| |
|
|
|
|
| Net income (loss) |
$ (1,900) |
-1.7 % |
$ 1,239 |
1.6 % |
| |
|
|
|
|
| Weighted-average shares outstanding: |
|
|
|
|
| Basic |
23,572 |
|
18,301 |
|
| Diluted |
23,572 |
|
18,367 |
|
| Net income (loss) per share: |
|
|
|
|
| Basic |
$ (0.08) |
|
$ 0.07 |
|
| Diluted |
$ (0.08) |
|
$ 0.07 |
|
| |
| REAL GOODS SOLAR,
INC. |
| CONDENSED CONSOLIDATED
BALANCE SHEETS |
| (Unaudited) |
| (In thousands) |
| |
|
|
| |
December 31, |
December 31, |
| |
2011 |
2010 |
| |
|
|
| Assets |
|
|
| Current assets: |
|
|
| Cash |
$11,813 |
$11,123 |
| Restricted cash |
172 |
— |
| Accounts receivable, net |
21,539 |
19,259 |
| Costs in excess of billings on
uncompleted contracts |
5,411 |
— |
| Inventory, net |
12,264 |
6,394 |
| Deferred costs on uncompleted
contracts |
1,313 |
215 |
| Receivable and deferred tax
assets |
3,333 |
1,861 |
| Other current assets |
1,014 |
736 |
| |
|
|
| Total current assets |
56,859 |
39,588 |
| Property and equipment, net |
6,930 |
5,401 |
| Deferred tax assets (a) |
5,444 |
1,380 |
| Goodwill |
19,885 |
732 |
| Other intangibles, net |
390 |
— |
| Other assets |
41 |
498 |
| |
|
|
| Total assets |
$89,549 |
$47,599 |
| |
|
|
| Liabilities and shareholders'
equity |
|
|
| Current liabilities: |
|
|
| Accounts payable |
$27,785 |
$10,000 |
| Accrued liabilities |
3,292 |
2,630 |
| Billings in excess of costs on
uncompleted contracts |
2,144 |
— |
| Debt |
197 |
— |
| Capital lease obligations |
126 |
— |
| Payable to Gaiam |
2,176 |
2,865 |
| Deferred revenue and other current
liabilities |
2,388 |
534 |
| |
|
|
| Total current liabilities |
38,108 |
16,029 |
| Debt, net of current portion |
202 |
— |
| Capital lease obligations, net of current
portion |
433 |
— |
| |
|
|
| Total liabilities |
38,743 |
16,029 |
| |
|
|
| Total shareholders' equity (a) |
50,806 |
31,570 |
| |
|
|
| Total liabilities and shareholders'
equity |
$89,549 |
$47,599 |
| |
|
|
| (a) Balances at December 31, 2010
have been recast to reflect the correction of immaterial errors
related the Company's income taxes for 2008. Deferred tax
assets and total shareholders' equity were each reduced by $364
thousand. |
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 months ended December 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 months ended December 31, 2011 GAAP
income from operations to our non-GAAP earnings before interest,
taxes, depreciation, amortization, share-based compensation, and
non-recurring expenses are set forth below (unaudited, in
thousands):
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|
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For the Three Months
Ended December 31, 2011 |
| Income from operations |
$ 167 |
| Exclusion of depreciation and
amortization |
356 |
| Exclusion of share-based compensation |
189 |
| Exclusion of non-recurring expenses |
827 |
| Non-GAAP EBITDA |
$ 1,539 |
| |
|
CONTACT: Erik Zech
Chief Financial Officer
415-295-4952
erik.zech@realgoods.com