• 38% Second Quarter Organic Revenue Growth
  • Fourth Consecutive Quarter of Profitability

BOULDER, Colo., Aug. 4, 2010 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc. (Nasdaq:RSOL), a leading residential solar energy integrator, today announced results for its second quarter ended June 30, 2010.

Net revenue for the second quarter of 2010 increased 37.9% to $17.5 million from $12.7 million recorded in the same period last year. All of the year-over-year revenue growth was organic.

Gross profit increased to $5.0 million, or 28.7% of net revenue, for the second quarter of 2010 from $3.3 million, or 25.8% of net revenue, in the comparable period last year.  The increase in gross profit percentage primarily reflects improved installation practices as well as declines in module prices over the last year.

Operating expenses as a percent of net revenue decreased 690 basis points to 26.3% for the second quarter of 2010 from 33.2% in the comparable period last year.  This decrease primarily reflects the leveraging of fixed costs and the significant cost savings achieved by integrating all acquired businesses onto a single set of systems and a unified brand.

Operating income for the second quarter of 2010 improved significantly to $422 thousand, as compared to a loss of $939 thousand for the comparable period last year.

Net income for the second quarter of 2010 improved to $268 thousand, or $0.02 per share, as compared to a loss of $581 thousand, or $0.03 per share, for the comparable period last year.

For the six months ended June 30, 2010, revenue grew to $32.5 million, a 46.3% increase from $22.2 million in the comparable period last year. Operating income for the six month period was $450 thousand as compared to a loss of $3.2 million last year. Net income for the six month period was $285 thousand as compared to a loss of $2.0 million last year.

For the twelve month period ended June 30, 2010, revenue increased to $74.6 million, including 43.5% organic revenue growth from the previous twelve months.

"We are very pleased with our strong second quarter revenue growth, our improved gross profit margin and our continued profitability," commented John Schaeffer, President.  "Internal revenue growth was 38% for the second quarter of 2010 and we continue to be optimistic about both residential and commercial demand for the remainder of the year.  We remain focused on building our backlog and on hiring installation crews where appropriate to expand our production capacity and keep up with demand."

"Our financial metrics across the board were very strong in the second quarter," said Erik Zech, Chief Financial Officer.  "Our ability to show gross margin expansion to 28.7% and a decline in operating expenses as a percentage of net revenue to 26.3%, as compared to 33.2% in the same period last year, are both indicative of the progress we have made in optimizing our business.  Our balance sheet remained strong at the end of the quarter with a cash balance of $11.9 million and no debt."

Real Goods Solar will host a conference call tomorrow, August 5, 2010, at 8:30 a.m. PDT (11:30 a.m. EDT) to review the second quarter results. 
Dial-in No.: 888-549-7735 (domestic) or 480-629-9858 (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 August 12, 2010.

 
Replay number: 877-870-5176 (domestic) or 858-384-5517 (international)
Pin: 4340340

About Real Goods Solar, Inc.

Real Goods Solar, Inc. is a leading residential solar energy integrator, having installed over 6,000 solar systems.  Real Goods Solar offers turnkey solar energy services, and has 32 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.

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.

REAL GOODS SOLAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)

 
         
  Three Months Ended June 30, 2010    Three Months Ended  June 30, 2009  
Net revenue $ 17,531  100.0 % $ 12,713  100.0 %
         
Cost of goods sold  12,493  71.3 %  9,435  74.2 %
         
Gross profit  5,038  28.7 %  3,278  25.8 %
         
Operating expenses  4,616  26.3 %  4,217  33.2 %
         
Income (loss) from operations  422  2.4 %  (939)  -7.4 %
         
Interest income  3  0.0 %  —  0.0 %
         
Income (loss) before income taxes  425  2.4 %  (939)  -7.4 %
         
Income tax expense (benefit)  157  0.9 %  (358)  -2.8 %
         
Net income (loss) attributable to Real Goods Solar, Inc. $ 268  1.5 % $ (581)  -4.6 %
         
Weighted-average shares outstanding:        
Basic  18,299    18,270  
Diluted  18,399    18,270  
         
Net income (loss) per share attributable to Real Goods Solar, Inc. common shareholders:        
Basic $ 0.02   $ (0.03)  
Diluted $ 0.02   $ (0.03)  

 

REAL GOODS SOLAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

 
         
  Six Months Ended June 30, 2010    Six Months Ended  June 30, 2009  
Net revenue $ 32,536  100.0 % $ 22,244  100.0 %
         
Cost of goods sold  23,467  72.1 %  16,664  74.9 %
         
Gross profit  9,069  27.9 %  5,580  25.1 %
         
Operating expenses  8,619  26.5 %  8,771  39.5 %
         
Income (loss) from operations  450  1.4 %  (3,191 )  -14.4 %
         
Interest income  3  0.0 %  —  0.0 %
         
Income (loss) before income taxes  453  1.4 %  (3,191 )  -14.4 %
         
Income tax expense (benefit)  168  0.5 %  (1,239 )  -5.6 %
         
Net income (loss) attributable to Real Goods Solar, Inc. $ 285  0.9 % $ (1,952 )  -8.8 %
         
Weighted-average shares outstanding:        
Basic  18,295    18,081  
Diluted  18,381    18,081  
         
Net income (loss) per share attributable to Real Goods Solar, Inc. common shareholders:        
Basic $ 0.02   $ (0.11 )  
Diluted $ 0.02   $ (0.11 )  

REAL GOODS SOLAR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)

 
     
  June 30, 2010   December 31, 2009  
Assets    
Current assets:    
Cash and cash equivalents $ 11,858  $ 12,206 
Accounts receivable, net  17,325   13,996 
Inventory, net  5,787   4,769 
Deferred costs on uncompleted contracts  226   1,024 
Deferred advertising costs  135   114 
Receivable and deferred tax assets  821   833 
Other current assets  388   598 
     
Total current assets  36,540   33,540 
     
Property and equipment, net  5,173   5,145 
Goodwill  732   732 
Deferred tax assets  3,067   3,064 
Other assets  575   813 
     
Total assets $ 46,087  $ 43,294 
     
Liabilities and shareholders' equity    
Current liabilities:    
Accounts payable $ 9,525  $ 8,821 
Accrued liabilities  2,048   2,500 
Payable to Gaiam  3,742   1,636 
     
Total current liabilities  15,315   12,957 
Total shareholders' equity  30,772   30,337 
     
Total liabilities and shareholders' equity $ 46,087  $ 43,294 
     
CONTACT:  Real Goods Solar, Inc.           Erik Zech, Chief Financial Officer          415-295-4952          erik.zech@realgoods.com

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