Exhibit 99.1
Real Goods Solar Reports Fourth Quarter and Fiscal 2008 Results
Boulder, CO, March 10, 2009 – Real Goods Solar, Inc. (NASDAQ: RSOL),a leading residential solar energy integrator, announced today results for its fourth quarter and fiscal year ended December 31, 2008.
Revenue for the year ended December 31, 2008 increased 107.3% to $39.2 million from $18.9 million recorded in the same period last year, primarily due to acquisitions.
Gross profit increased to $10.4 million, or 26.6% of revenue for the year, from $6.5 million, or 34.3% of revenue in 2007. The decrease in gross margin percent primarily reflects the consolidation of the acquisitions of Marin Solar, Carlson Solar and Independent Energy Systems, which have traditionally produced lower gross profit margins.
Operating expenses as a percent of revenue increased 250 basis points year over year to 35.8% from 33.3%. This increase primarily reflects the impact of the consolidation of the acquisition of Regrid Power during the fourth quarter, integration costs related to the Company’s 2008 acquisitions, and the incremental costs associated with being a public company.
Other expenses of $27.2 million for the year represent a non-cash charge related to the impairment of goodwill and other intangible assets recorded as part of historical acquisitions. The impairment, resulting from the application of SFAS No. 142,Goodwill and Other Intangible Assets, was driven by the decline in the market price of the Company’s common shares (Nasdaq) experienced in the fourth quarter.
Net loss for the year, including the above non-cash charge, was $28.0 million, or $1.86 per share, as compared to net income of $0.1 million, or $0.01 per share, for the year ended December 31, 2007. Excluding the impairment charge (and net of a related $1.6 million tax benefit), net loss for the year would have been $2.3 million, or $0.16 per share.
For the fourth quarter of 2008, Real Goods net revenue increased to $13.5 million, a 133.8% increase from $5.8 million for the same period last year. Net loss for the quarter, including the above non-cash charge, totaled $27.4 million, or $1.53 per share. Excluding the impairment charge (and net of a related $1.6 million tax benefit), net loss for the quarter would have been $1.8 million, or $0.10 per share.
2007 financials do not include Real Goods’ 2008 acquisitions, related integration costs, nor the costs associated with being a public company.
“The fourth quarter was a challenging period for the industry and for Real Goods Solar,” commented Tom McCalmont, Chief Executive Officer. “Because of the tough economic environment in the fourth quarter we placed a significant emphasis on acquisition integration, which included a reduction in headcount, centralization of functions, standardization of products and processes, and a drive towards improved operational efficiencies.”
“We are working hard to cut costs and drive synergies across the Real Goods organization during this challenging period and anticipate being complete with most of our integration by the end of April,” said Erik Zech, Chief Financial Officer. “The changes we are making will position the Company to drive profitability. Our balance sheet remains strong with over $12 million of cash at the end of the year and we are intensely focused on improving this position going forward.”
Real Goods Solar also announced that it will host a conference call tomorrow, March 11, 2009, at 8:30 a.m. PDT (11:30 a.m. EDT) to review the fourth quarter and fiscal 2008 results.
Dial-in No.: | 800-762-9058 (domestic) or 480-629-1990 (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 March 17, 2009.
Replay number: | 800-406-7325 (domestic) or 303-590-3030 (international) | |||
Pin: | 4024824 |
About Real Goods Solar, Inc.
Real Goods Solar, Inc. is a leading residential solar energy integrator, having installed over 4,500 solar systems. 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 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 December 31, 2008 | Three Months Ended December 31, 2007 | ||||||||||||
Net revenue | $ | 13,479 | 100.0 | % | $ | 5,765 | 100.0 | % | |||||
Cost of goods sold | 10,318 | 76.5 | % | 3,805 | 66.0 | % | |||||||
Gross profit | 3,161 | 23.5 | % | 1,960 | 34.0 | % | |||||||
Operating expenses | 5,668 | 42.1 | % | 1,915 | 33.2 | % | |||||||
Other expenses | 27,192 | 201.7 | % | — | 0.0 | % | |||||||
Income (loss) from operations | (29,699 | ) | -220.3 | % | 45 | 0.8 | % | ||||||
Other income | 59 | 0.4 | % | — | 0.0 | % | |||||||
Income (loss) before income taxes | (29,640 | ) | -219.9 | % | 45 | 0.8 | % | ||||||
Income tax expense (benefit) | (2,244 | ) | -16.6 | % | 21 | 0.4 | % | ||||||
Net income (loss) | $ | (27,396 | ) | -203.3 | % | $ | 24 | 0.4 | % | ||||
Shares outstanding: | |||||||||||||
Basic | 17,889 | 10,000 | |||||||||||
Diluted | 17,889 | 10,000 | |||||||||||
Income (loss) per share: | |||||||||||||
Basic | $ | (1.53 | ) | $ | 0.00 | ||||||||
Diluted | $ | (1.53 | ) | $ | 0.00 |
REAL GOODS SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Twelve Months Ended December 31, 2008 | Twelve Months Ended December 31, 2007 | ||||||||||||
Net revenue | $ | 39,221 | 100.0 | % | $ | 18,922 | 100.0 | % | |||||
Cost of goods sold | 28,779 | 73.4 | % | 12,426 | 65.7 | % | |||||||
Gross profit | 10,442 | 26.6 | % | 6,496 | 34.3 | % | |||||||
Operating expenses | 14,051 | 35.8 | % | 6,310 | 33.3 | % | |||||||
Other expenses | 27,192 | 69.3 | % | — | 0.0 | % | |||||||
Income (loss) from operations | (30,801 | ) | -78.5 | % | 186 | 1.0 | % | ||||||
Other income | 261 | 0.6 | % | — | 0.0 | % | |||||||
Income (loss) before income taxes | (30,540 | ) | -77.9 | % | 186 | 1.0 | % | ||||||
Income tax expense (benefit) | (2,590 | ) | -6.6 | % | 84 | 0.5 | % | ||||||
Minority interest in net income of consolidated subsidiary, net of tax | (5 | ) | 0.0 | % | — | 0.0 | % | ||||||
Net income (loss) | $ | (27,955 | ) | -71.3 | % | $ | 102 | 0.5 | % | ||||
Shares outstanding: | |||||||||||||
Basic | 15,014 | 10,000 | |||||||||||
Diluted | 15,014 | 10,000 | |||||||||||
Income (loss) per share: | |||||||||||||
Basic | $ | (1.86 | ) | $ | 0.01 | ||||||||
Diluted | $ | (1.86 | ) | $ | 0.01 |
REAL GOODS SOLAR, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
December 31, 2008 | December 31, 2007 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 12,339 | $ | 542 | ||||
Accounts receivable, net | 7,711 | 3,632 | ||||||
Inventory | 9,170 | 2,454 | ||||||
Deferred costs on uncompleted contracts | 970 | 992 | ||||||
Deferred advertising costs | 251 | 277 | ||||||
Deferred tax assets | 515 | 154 | ||||||
Other current assets | 521 | 19 | ||||||
Total current assets | 31,477 | 8,070 | ||||||
Property and equipment, net | 5,298 | 4,382 | ||||||
Goodwill, net | — | 5,927 | ||||||
Other intangibles, net Deferred tax assets Other assets |
| — 2,239 1,051 |
|
| 167 2,324 116 |
| ||
Total assets | $ | 40,065 | $ | 20,986 | ||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,501 | $ | 1,275 | ||||
Accrued liabilities | 1,135 | 421 | ||||||
Deferred revenue on uncompleted contracts | 400 | 1,354 | ||||||
Payable to Gaiam | 1,111 | 16,286 | ||||||
Total current liabilities | 9,147 | 19,336 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Class A common stock, $.0001 par value, 150,000,000 shares authorized, 15,736,683 shares and no shares issued and outstanding at December 31, 2008 and 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 December 31, 2008 and 2007, respectively | — | — | ||||||
Additional paid-in capital | 59,372 | 2,150 | ||||||
Accumulated deficit | (28,455 | ) | (500 | ) | ||||
Total shareholders’ equity | 30,918 | 1,650 | ||||||
Total liabilities and shareholders’ equity | $ | 40,065 | $ | 20,986 | ||||