BOULDER, Colo., March 9, 2011 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc. (Nasdaq:RSOL), a leading residential solar energy integrator, today announced results for its fourth quarter ended December 31, 2010.
Net revenue for the fourth quarter of 2010 increased 5.5% to $20.2 million from $19.1 million recorded in the same period last year. This growth included the replacement of a significant $5 million commercial project that was installed in the fourth quarter of 2009. All of the year-over-year revenue growth was organic.
Gross profit increased to $6.2 million, or 30.9% of net revenue, for the fourth quarter of 2010 from $5.4 million, or 28.1% of net revenue, in the comparable period last year. The increase in gross profit percentage primarily reflects improved selling and installation practices as well as declines in PV module prices over the last year.
Operating expenses as a percent of net revenue increased to 28.9% for the fourth quarter of 2010 from 26.3% in the comparable period last year. This primarily reflects increased share-based and bonus compensation as a direct result of our improved performance, partially offset by the leveraging of fixed costs and cost savings achieved by integrating all acquired businesses onto a single set of systems and a unified brand.
Operating income for the fourth quarter of 2010 improved to $396 thousand, as compared to $337 thousand for the comparable period last year. EBITDA for the fourth quarter of 2010 was $618 thousand, or 3.1% of net revenue. Refer to the Non-GAAP Financial Measures table below.
Net income for the fourth quarter of 2010 improved to $250 thousand, or $0.01 per share, as compared to $217 thousand, or $0.01 per share, for the comparable period last year.
For the year ended December 31, 2010, revenue grew to $77.3 million, a 20.2% increase from $64.3 million for last year. Operating income for the year was $2.0 million as compared to a loss of $2.6 million last year. Net income for the year was $1.2 million as compared to a loss of $1.6 million last year. EBITDA for the year was $2.9 million, or 3.7% of net revenue. Refer to the Non-GAAP Financial Measures table below.
"We are very pleased with our fourth quarter revenue performance, our improved gross profit margin and our sixth consecutive quarter of profitability," commented John Schaeffer, President. "Internal revenue growth for the year was over 20% and we continue to see strong demand for both residential and commercial solar. We remain focused on building our backlog and on hiring installation crews where appropriate to expand our production capacity to keep up with demand."
"Our financial metrics across the board were very strong in the fourth quarter," said Erik Zech, Chief Financial Officer. "Our ability to show both higher revenues and improved gross margins are indicative of the progress we have made in growing and optimizing our business. While our cash balance was down from the end of the third quarter largely due to a delayed payment of more than $3 million on a large commercial project, which has subsequently been collected, our balance sheet has remained strong with cash of $11.1 million and no debt."
Real Goods Solar will host a conference call tomorrow, March 10, 2011, at 8:30 a.m. PST (11:30 a.m. EST) to review the fourth quarter results.
A replay of the call will begin approximately two hours after the end of the call and will continue until midnight EDT on March 17, 2011.
About Real Goods Solar, Inc.
Real Goods Solar, Inc. is a leading residential and commercial solar energy integrator, having installed over 6,500 solar systems. Real Goods Solar offers turnkey solar energy services, and has 33 years of experience in 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
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.
Non-GAAP Financial Measures
We have utilized the non-GAAP information set forth below as an additional device to aid in understanding and analyzing our financial results for the three and twelve months ended December 31, 2010. We believe that these non-GAAP measures will allow for a better evaluation of the operating performance of our business and facilitate meaningful comparison of the results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered a substitute for results that are presented in a manner consistent with GAAP.
Reconciliations of our three and twelve months ended December 31, 2010 GAAP income from operations to our non-GAAP earnings before interest, taxes, depreciation and share-based compensation are set forth below (unaudited, in thousands):
CONTACT: Erik Zech Chief Financial Officer 415-295-4952 erik.zech@realgoods.com