BOULDER, Colo., Nov. 3, 2010 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc. (Nasdaq:RSOL), a leading residential solar energy integrator, today announced results for its third quarter ended September 30, 2010.
Net revenue for the third quarter of 2010 increased 7.2% to $24.6 million from $23.0 million recorded in the same period last year. All of the year-over-year revenue growth was organic.
Gross profit increased to $6.2 million, or 25.3% of net revenue, for the third quarter of 2010 from $5.0 million, or 21.8% 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 module prices over the last year.
Operating expenses as a percent of net revenue decreased to 20.5% for the third quarter of 2010 from 20.7% in the comparable period last year. This decrease primarily reflects 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 third quarter of 2010 improved significantly to $1.2 million, as compared to $258 thousand for the comparable period last year. EBITDA for the third quarter of 2010, prior to shared-based and bonus compensation, was $1.9 million, or 7.5% of net revenue. Refer to the Non-GAAP Financial Measures table below.
Net income for the third quarter of 2010 improved to $704 thousand, or $0.04 per share, as compared to $158 thousand, or $0.01 per share, for the comparable period last year.
For the nine months ended September 30, 2010, revenue grew to $57.2 million, a 26.4% increase from $45.2 million in the comparable period last year. Operating income for the nine month period was $1.6 million as compared to a loss of $2.9 million last year. Net income for the nine month period was $1.0 million as compared to a loss of $1.8 million last year.
For the twelve month period ended September 30, 2010, revenue increased to $76.3 million, representing 30.0% organic revenue growth from the previous twelve months. Operating income for the twelve month period was $2.0 million and EBITDA, prior to share-based and bonus compensation, was $3.6 million. Refer to the Non-GAAP Financial Measures table below.
"We are very pleased with our third quarter revenue performance, our improved gross profit margin and our expanding profitability," commented John Schaeffer, President. "Internal revenue growth for the last twelve months has been 30% 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 and keep up with demand."
"Our financial metrics across the board were very strong in the third quarter," said Erik Zech, Chief Financial Officer. "Our ability to show improved gross margins along with declines in operating expenses as a percentage of net revenue are both indicative of the progress we have made in optimizing our business. Our balance sheet remained strong with cash increasing by $3.0 million from the end of the year and by $3.4 million from the previous quarter to $15.2 million, and no debt."
Real Goods Solar will host a conference call tomorrow, November 4, 2010, at 8:30 a.m. PDT (11:30 a.m. EDT) to review the third quarter results.
A replay of the call will begin approximately two hours after the end of the call and will continue until midnight EST on November 11, 2010.
About Real Goods Solar, Inc.
Real Goods Solar, Inc. is a leading residential solar energy integrator, having installed over 6,500 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.
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 nine months ended September 30, 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 September 30, 2010 GAAP income from operations to our non-GAAP earnings before interest, taxes, depreciation, and share-based and bonus compensation are set forth below (unaudited, in thousands):
CONTACT: Real Goods Solar, Inc. Erik Zech, Chief Financial Officer 415-295-4952 email@example.com