RGS Energy (NASDAQ:RGSE), the nation’s original solar company since
1978, reported results for its second quarter ended June 30, 2017.
The company also filed its quarterly report on Form 10-Q, as well
as posted supplemental financial information on the quarterly
results page in the Investor Relations section of its company
website.
Q2 2017 Financial Summary
(000’s omitted) |
Q2 2017 |
|
Q1 2017 |
|
Q2 2016 |
Net
loss |
$(4,030) |
|
$(4,034) |
|
$(3,463) |
Stockholders’
equity (deficit) |
|
13,904 |
|
|
17,886 |
|
|
(4,966) |
Working
capital |
$12,743 |
|
|
$15,857 |
|
|
$(2,653) |
The company believes it has adequate financial capital to grow
its top-line revenue and achieve break-even and thereafter better
results, in future periods. Implementation of this strategy
requires up-front expenses to expand sales teams, marketing for
customer leads and development and implementation of new products
and services, which are required investments before the company can
expect to realize increased sales.
Growth Strategy UpdateThe company earlier
issued a business update announcing progress on its top-line
revenue growth strategy.
Second quarter of 2017 results compared to the first quarter of
2017:
- Gross sales increased 2X
- Net sales increased 3X
- Size of the company’s sales organization increased 40%
- Average number of sales per direct sales person increased
24%
- Acquisition cost-per-sale decreased 34%
- Residential cycle time reduced 31%
Management Commentary“In Q2, our progress was
in-line with expectations that we set in our last business update,”
said Dennis Lacey, CEO of RGS Energy. “It is important to note that
Q2 was our first full quarter of operating with what we believe is
appropriate working capital in place to effectively pursue our
growth strategy. As this is the first quarter on this basis, we are
heartened by the positive trends.”
Conference Call RGS Energy will hold a
conference call to discuss its second quarter 2017 financial
results later today.
Date: Wednesday, August 9, 2017 Time: 4:30 p.m.
Eastern time (2:30 p.m. Mountain time) Toll-free dial-in
number: 1-877-545-1407 International dial-in number: 1-719-325-4929
Conference ID: 9865811
Webcast: http://public.viavid.com/index.php?id=125727
The conference call will be webcast live and available for
replay via the investor relations section of the company's website
at RGSEnergy.com.
Please call the conference telephone number five minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after 7:30 p.m.
Eastern time on the same day through August 16, 2017.
Toll-free replay number: 1-844-512-2921 International replay
number: 1-412-317-6671 Replay ID: 9865811
About RGS Energy RGS Energy (NASDAQ:RGSE)
is a residential and small business commercial solar company since
1978 which has installed more than 25,000 solar power systems. RGS
Energy makes it very convenient for customers to save on their
energy bill by providing turnkey solar solutions - from system
design, construction planning, customer financing assistance,
installation, to interconnection and warranty.
For more information, visit RGSEnergy.com, on Facebook at
www.facebook.com/rgsenergy and on Twitter at
www.twitter.com/rgsenergy. Information on such websites is not
incorporated by reference into this press release.
RGS Energy is the Company’s registered trade name. The Company
files periodic and other reports with the Securities and Exchange
Commission under its official name “Real Goods Solar, Inc.”
Forward-Looking Statements and Cautionary
Statements This press release contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties,
including statements regarding the RGS Energy’s results of
operations and financial positions, and RGS Energy’s business and
financial strategies. Forward-looking statements are neither
historical facts nor assurances of future performance.
Instead, they provide our current beliefs, expectations,
assumptions, forecasts, and hypothetical constructs about future
events, and include statements regarding our future results of
operations and financial position, business strategy, budgets,
projected costs, plans and objectives of management for future
operations. The words “expect,” “target,” “plan,” “future,”
“believe,” “may,” “will” and similar expressions as they relate to
us are intended to identify such forward-looking statements.
Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved, if at all. Forward looking
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in or suggested by the forward looking statements.
Therefore, RGS Energy cautions you against relying on any of these
forward-looking statements.
Key risks and uncertainties that may cause a change in any
forward-looking statement or that could cause our actual results
and financial condition to differ materially from those indicated
in the forward- looking statements include: RGS Energy’s ability to
successfully implement its growth strategy, achieve its target
level of sales, generate cash flow from operations, achieve
break-even and better results, expand its sales teams and
marketing, decrease its customer acquisition cost, and develop and
implement new products and services; and RGS Energy’s current
capital resources being sufficient to implement its growth
strategy.
You should read the section entitled “Risk Factors” in our 2016
Annual Report on Form 10-K, as amended, and in our Quarterly Report
on Form 10-Q for the quarter ended June 30, 2017, each of which has
been filed with the Securities and Exchange Commission, which
identify certain of these and additional risks and uncertainties.
Any forward-looking statements made by us in this press release
speak only as of the date of this press release. Factors or events
that could cause our actual results to differ may emerge from time
to time, and it is not possible for us to predict all of them. We
do not undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
RGS EnergyCondensed Consolidated Balance
Sheets(in thousands) |
|
June 30, 2017 |
December 31, 2016 |
June 30, 2016 |
Cash |
$9,745 |
$2,940 |
$490 |
Restricted
Cash |
- |
173 |
8,250 |
Other
current assets |
6,516 |
6,742 |
8,844 |
Total current assets |
16,261 |
9,855 |
17,584 |
Non-current
assets |
4,196 |
4,518 |
4,386 |
Total assets |
$20,457 |
$14,373 |
$21,970 |
|
|
|
|
Debt |
$1 |
$787 |
$5,609 |
Accounts
payable |
547 |
2,019 |
7,107 |
Other
current liabilities |
2,970 |
3,469 |
7,521 |
Total current liabilities |
3,518 |
6,275 |
20,237 |
Non-current
liabilities |
3,035 |
3,120 |
6,698 |
Total liabilities |
6,553 |
9,395 |
26,935 |
|
|
|
|
Stockholders’ equity (deficit) |
13,904 |
4,978 |
(4,965) |
Total liabilities and stockholders’ equity |
$20,457 |
$14,373 |
$21,970 |
|
|
|
|
Other
information: |
|
|
|
Working Capital |
$12,743 |
$3,580 |
$(2,653) |
RGS EnergyConsolidated Summary Statements
of Operations(in thousands, except per share amounts) |
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
2017 |
2016 |
2017 |
2016 |
Contract Revenue: |
|
|
|
|
Sale and
Installation of Solar Systems |
$2,708 |
$4,750 |
$6,070 |
$9,553 |
Service |
277 |
133 |
568 |
270 |
Leasing |
12 |
14 |
25 |
28 |
Contract Expense: |
|
|
|
|
Installation of solar systems |
2,668 |
4,175 |
5,744 |
8,692 |
Service |
491 |
291 |
809 |
630 |
Customer acquisition
expense |
1,329 |
618 |
2,251 |
1,416 |
Contribution |
(1,491) |
(187) |
(2,141) |
(887) |
Operating expense |
2,461 |
2,743 |
5,432 |
5,759 |
Other expense |
- |
- |
- |
- |
Litigation expense |
55 |
- |
135 |
24 |
Operating loss |
(4,007) |
(2,930) |
(7,708) |
(6,670) |
Taxes |
- |
(27) |
- |
(27) |
Derivative &
Other |
10 |
(576) |
(368) |
(648) |
Income (loss) from
continuing operations |
(3,997) |
(3,533) |
(8,076) |
(7,345) |
Income (loss) from
discontinued operations |
(33) |
70 |
12 |
231 |
Net Income |
$(4,030) |
$(3,463) |
$(8,064) |
$(7,114) |
|
|
|
|
|
Other Information: |
|
|
|
|
Loss per Share |
$(0.53) |
$(162.60) |
$(1.32) |
$(338.40) |
Weighted average shares
outstanding |
7,481 |
21 |
6,102 |
21 |
Investor Relations Contact
Ron Both
Managing Partner, CMA
Tel 1-949-432-7566
RGSE@cma.team