- Second quarter revenues increased 96% to $8.8 million
- Operating expenses decreased by 170 basis points
BOULDER, Colo., Aug. 6 /PRNewswire-FirstCall/ -- Real Goods Solar, Inc.
(Nasdaq: RSOL), a leading residential solar energy integrator, announced today
results for its second quarter ended June 30, 2008.
On May 13, 2008, Real Goods consummated its initial public offering of
5.5 million shares of its Class A common stock for total offering proceeds of
$55 million, prior to underwriters commissions and offering expenses of
approximately $6.8 million.
Revenue for the second quarter ended June 30, 2008 increased 95.9% to
$8.8 million from $4.5 million recorded in the same period last year.
Gross profit increased to $2.6 million, or 29.8% of revenue, from
$1.8 million, or 39.1% of revenue, in the comparable period last year. The
decrease in gross profit percentage partially reflects the acquisition of
Marin Solar, which had larger average installation sizes that traditionally
produce lower gross profit margins.
Operating loss for the second quarter of 2008 was $0.1 million, or 1.5% of
revenue, compared to operating income of $0.3 million, or 6.1% of revenue for
the second quarter of 2007. The decrease reflects Real Goods' increased cost
structure required to be a public company as well as significant management
and operating infrastructure that has been put in place to prepare for future
organic and acquisition growth.
Net income decreased $0.2 million to a net loss of $27,000 during the
second quarter of 2008 from net income of $0.2 million during the second
quarter of 2007. Earnings per share decreased to $0.00 per share during the
second quarter of 2008 compared to $0.02 per share during the same quarter
last year.
For the six months ended June 30, 2008, Real Goods recorded net revenues
of $15.4 million, a 73.6% increase from $8.9 million in the comparable period
a year ago. Net loss totaled $0.3 million, or $0.03 per share, compared to net
income of $0.2 million, or $0.02 per share, for the six months ended June 30,
2007.
Last year's results do not include Real Goods' acquisitions of Marin Solar
and Carlson Solar which occurred in the fourth quarter of 2007 and the first
quarter of 2008, respectively.
'We are pleased with the sales growth and operating results we achieved in
the second quarter. Despite a soft economic environment, demand for our
products remained strong,' said John Schaeffer, Chief Executive Officer.
'During the quarter, we completed our initial public offering, hired a
Director of Sales, and solidified and expanded our sales force and
installation organization to support our future growth, while still managing
to achieve moderate operating expense leverage.'
'We have an experienced management team and strong balance sheet,
including $25.6 million of cash and no debt, to take advantage of attractive
long-term growth opportunities,' stated Erik Zech, President and CFO. 'We
anticipate that a combination of a good pipeline of acquisition candidates, a
highly fragmented market, increased energy prices, growing awareness of
renewable sources of energy, and our strong brand and market position will
result in continued sales growth.'
Real Goods Solar also announced that it will host a conference call
tomorrow, August 7, 2008, at 9:30 a.m. MDT (11:30 p.m. EDT) to review the
second quarter fiscal 2008 results.
Dial-in No.: 800-762-8973 (domestic) or 480-248-5081 (international)
Passcode: Real Goods
A replay of the call will begin approximately two hours after the end of
the call and will continue until 12:00 a.m. EDT on August 22, 2008.
Replay number: 800-406-7325
PIN: 3907560
About Real Goods Solar, Inc.
Real Goods Solar, Inc. is a leading residential solar energy integrator.
Real Goods Solar offers turnkey solar energy services, and has 30 years of
experience in residential solar energy, beginning with the sale in 1978 of the
first solar photovoltaic, or PV, panels in the United States. For more
information about Real Goods Solar, please visit
http://www.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
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' filings with the Securities and Exchange Commission.
Real Goods assumes no duty to update any forward-looking statements.
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
June 30, 2008 June 30, 2007
Net revenue $8,841 100.0% $4,514 100.0%
Cost of goods sold 6,203 70.2% 2,751 60.9%
Gross profit 2,638 29.8% 1,763 39.1%
Operating expenses 2,770 31.3% 1,488 33.0%
Income (loss) from operations (132) -1.5% 275 6.1%
Other income 84 1.0% --- 0.0%
Income (loss) before income taxes (48) -0.5% 275 6.1%
Income tax expense (benefit) (17) -0.2% 124 2.7%
Minority interest in net loss
of consolidated subsidiary,
net of tax 4 0.0% --- 0.0%
Net income (loss) $(27) -0.3% $151 3.4%
Shares outstanding:
Basic 13,085 10,000
Diluted 13,085 10,000
Income per share:
Basic $0.00 $0.02
Diluted $0.00 $0.02
REAL GOODS SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Six Months Ended Six Months Ended
June 30, 2008 June 30, 2007
Net revenue $15,409 100.0% $8,878 100.0%
Cost of goods sold 10,934 71.0% 5,627 63.4%
Gross profit 4,475 29.0% 3,251 36.6%
Operating expenses 5,096 33.1% 2,904 32.7%
Income (loss) from operations (621) -4.1% 347 3.9%
Other income 84 0.6% --- 0.0%
Income (loss) before income taxes (537) -3.5% 347 3.9%
Income tax expense (benefit) (209) -1.4% 156 1.8%
Minority interest in net income
of consolidated subsidiary,
net of tax (5) 0.0% --- 0.0%
Net income (loss) $(333) -2.1% $191 2.1%
Shares outstanding:
Basic 11,551 10,000
Diluted 11,551 10,000
Income (loss) per share:
Basic $(0.03) $0.02
Diluted $(0.03) $0.02
REAL GOODS SOLAR, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
June 30, December 31,
2008 2007
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $25,629 $542
Accounts receivable, net 4,911 3,632
Inventory 3,518 2,454
Deferred costs on uncompleted contracts 916 992
Deferred advertising costs 322 277
Deferred tax assets - 154
Receivable from Gaiam 998 -
Other current assets 488 19
Total current assets 36,782 8,070
Property and equipment, net 4,443 4,382
Goodwill and other intangibles, net 10,476 6,094
Deferred tax assets - 2,324
Other assets 30 116
Total assets $51,731 $20,986
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $1,983 $1,275
Accrued liabilities 137 421
Deferred revenue on uncompleted contracts 351 1,354
Deferred tax liability 106 -
Payable to Gaiam - 16,286
Total current liabilities 2,577 19,336
Commitments and contingencies
Shareholders' equity:
Class A common stock, $.0001 par value,
150,000,000 shares authorized, 13,637,739
shares and no shares issued and outstanding
at June 30, 2008 and December 31, 2007,
respectively 1 -
Class B common stock, $.0001 par value,
50,000,000 shares authorized, 2,153,293 shares
and no shares issued and outstanding at
June 30, 2008 and December 31, 2007,
respectively - -
Additional paid-in capital 49,986 2,150
Accumulated deficit (833) (500)
Total shareholders' equity 49,154 1,650
Total liabilities and shareholders' equity $51,731 $20,986
SOURCE Real Goods Solar, Inc.
