North Coast Solar Stocks

May 6, 2009

Real Goods Solar Reports First Quarter Fiscal 2009 Results

Filed under: RSOL — Tags: , , , , — Jason @ 4:24 pm

Wednesday May 6, 2009, 4:24 pm EDT

BOULDER, Colo., May 6 /PRNewswire-FirstCall/ — Real Goods Solar, Inc. (RSOL), a leading residential solar energy integrator, announced today results for its first quarter ended March 31, 2009.

Revenue for the first quarter of 2009 increased 45.1% to $9.5 million from $6.6 million recorded in the same period last year, primarily due to acquisitions.

Gross profit increased to $2.3 million, or 24.2% of revenue, for the quarter from $1.8 million, or 28.0% of revenue, in the comparable period last year. The decrease in gross margin percentage primarily reflects the consolidation of acquisitions, which have traditionally produced lower gross profit margins.

Operating expenses as a percent of revenue increased to 47.8% for the quarter, from 35.4% in the comparable period last year. This increase primarily reflects the impact of the consolidation of the acquisition of Regrid Power during the fourth quarter of 2008, integration costs related to the Company’s 2008 acquisitions, severance costs from a reduction in work force, and the incremental costs associated with being a public company.

Net loss for the first quarter was $1.4 million, or $0.08 per share, as compared to a net loss of $0.3 million, or $0.03 per share, for the same period last year.

Results for the first quarter of 2008 do not include Real Goods’ acquisitions of Independent Energy Systems and Regrid Power, related integration costs, nor any of the costs associated with being a public company.

“The first quarter is generally our slowest quarter of the year due to seasonality, winter weather and shorter installation days,” commented Tom McCalmont, Chief Executive Officer. “This effect was magnified during the first quarter of 2009 by the very challenging economic environment. However, as the sun has come out this spring and our new marketing initiatives have taken hold, we have begun to see some initial momentum in sales and we are hopeful that this trend will continue as we enter into the prime summer selling months. While our optimism remains cautious, we are encouraged by the signing of a number of significant sales contracts during the last sixty days, representing over $30 million of revenue.”

“During the first quarter we remained highly focused on acquisition integration, which included further reductions in headcount, centralization of corporate functions, standardization of products and processes, and a drive towards improved operational efficiencies,” said Erik Zech, Chief Financial Officer. “Additionally, we implemented significant improvements to the cost structure of our organization and expect to see initial benefits from these improvements during the second quarter. The continuing acquisition integration and cost saving initiatives have further positioned us to weather the recession and to drive future profitability. We also made improvements to our balance sheet during the quarter by reducing inventory and accounts receivable. As a result of these efforts, our cash position improved to $12.9 million at quarter end.”

Real Goods Solar announced that it will host a conference call tomorrow, May 7, 2009, at 8:30 a.m. PDT (11:30 a.m. EDT) to review the first quarter results.

Dial-in No.: 877-941-6009 (domestic) or 480-629-9770 (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 14, 2009.

Replay number: 800-406-7325 (domestic) or 303-590-3030 (international)

Pin: 4065647

    Contact:    John Mills
                Senior Managing Director
                ICR, Inc.
                310-954-1105
                jmills@icrinc.com
                              REAL GOODS SOLAR, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                     (In thousands, except per share data)

                                 Three Months Ended   Three Months Ended
                                   March 31, 2009       March 31, 2008

    Net revenue                  $  9,531   100.0%     $  6,568   100.0%

    Cost of goods sold              7,229    75.8%        4,731    72.0%

    Gross profit                    2,302    24.2%        1,837    28.0%

    Operating expenses              4,554    47.8%        2,326    35.4%

    Loss before income taxes       (2,252)  -23.6%         (489)   -7.4%

    Income tax benefit               (881)   -9.2%         (192)   -2.9%

    Net loss                       (1,371)  -14.4%         (297)   -4.5%

    Net income attributable
     to the noncontrolling
     interest                         ---     0.0%           (9)   -0.2%

    Net loss attributable to
     Real Goods Solar, Inc.    $   (1,371)  -14.4%     $   (306)   -4.7%

    Weighted-average shares
     outstanding:
      Basic                        17,890                10,000
      Diluted                      17,890                10,000

    Net loss per share
     attributable to Real Goods
     Solar, Inc. common
     shareholders:
      Basic                     $   (0.08)            $   (0.03)
      Diluted                   $   (0.08)            $   (0.03)

                               REAL GOODS SOLAR, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                      (In thousands, except share information)

                                             March 31,      December 31,
                                               2009             2008
                                            (Unaudited)
    Assets
    Current assets:
      Cash and cash equivalents             $  12,887       $  12,339
      Accounts receivable, net                  5,747           7,711
      Inventory                                 5,408           9,170
      Deferred costs on uncompleted
       contracts                                1,004             970
      Deferred advertising costs                  331             251
      Deferred tax assets                         188             515
      Other current assets                        524             521
    Total current assets                       26,089          31,477

    Property and equipment, net                 5,210           5,298
    Deferred tax assets                         3,571           2,239
    Other assets                                1,269           1,051
    Total assets                            $  36,139       $  40,065

    Liabilities and shareholders' equity
    Current liabilities:
      Accounts payable                      $   2,048       $   6,501
      Accrued liabilities                       1,719           1,135
      Deferred revenue on uncompleted
       contracts                                  331             400
      Payable to Gaiam                          2,420           1,111
    Total current liabilities                   6,518           9,147

    Commitments and contingencies

    Shareholders' equity:
      Class A common stock, $.0001
       par value, 150,000,000 shares
       authorized, 15,752,107 and
       15,736,683 shares issued and
       outstanding at March 31, 2009
       and December 31, 2008, respectively          1               1
      Class B common stock, $.0001 par value,
       50,000,000 shares authorized,
       2,153,293 shares shares issued and
       outstanding at March 31, 2009 and
       December 31, 2008                            -               -
      Additional paid-in capital               59,446          59,372
      Accumulated deficit                     (29,826)        (28,455)
    Total shareholders' equity                 29,621          30,918
    Total liabilities and shareholders'
     equity                                   $36,139         $40,065
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