UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of Earliest Event Reported): August 9, 2017

 

 

 

REAL GOODS SOLAR, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Colorado 001-34044 26-1851813

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

110 16th Street, Suite 300, Denver, CO 80202

(Address of Principal Executive Offices, Including Zip Code)

 

Registrant’s telephone number, including area code: (303) 222-8300

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On August 9, 2017, Real Goods Solar, Inc. (the “Company”) issued a press release and supplemental financial information announcing results for its second quarter ended June 30, 2017. Copies of the press release and supplemental financial material are attached as Exhibit 99.1 and Exhibit 99.2, respectively.

 

This Current Report on Form 8-K and the earnings press release and supplemental financial material attached hereto are being furnished by the Company pursuant to Item 2.02 “Results of Operations and Financial Condition.” In accordance with General Instruction B.2 of Form 8-K, the information contained in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. In addition, this information shall not be deemed incorporated by reference into any of the Company’s filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit
No.

 

Description

   

99.1

 

Press Release issued by Real Goods Solar, Inc. on August 9, 2017

99.2   Supplemental Financial Information dated August 9, 2017

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

     
  REAL GOODS SOLAR, INC.
     
  By: /s/ Alan Fine
    Alan Fine
    Principal Financial Officer

  

Date: August 9, 2017 

 

 

 

 

EXHIBIT INDEX

 

Exhibit
No.

 

Description

   

99.1

 

Press Release issued by Real Goods Solar, Inc. on August 9, 2017

99.2   Supplemental Financial Information dated August 9, 2017

 

 

 

 

Exhibit 99.1

 

(RGS ENERGY LOGO) 

 

RGS Energy Reports Second Quarter 2017 Results

 

DENVER, CO, August 9, 2017RGS 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 Update 

The 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

 

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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.

 

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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.

 

Investor Relations Contact

Ron Both

Managing Partner, CMA

Tel 1-949-432-7566

RGSE@cma.team

 

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RGS Energy

Condensed 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 Energy 

Consolidated 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 

 

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Exhibit 99.2

 

(RGS ENERGY LOGO) 

 

RGS Energy Second Quarter 2017

Supplemental Financial Information

 

Residential Segment Results:

(000’s omitted)

   2nd Quarter 2017   1st Quarter 2017   2nd Quarter 2016 
Contract revenue               
Sale and installation of solar system  $2,212   $3,362   $3,175 
Service   248    272    120 
Leasing   12    13    14 
Contract expense:               
Sale and installation of solar system   2,113    2,825    2,580 
Service   398    267    260 
Customer acquisition   1,211    765    517 
Contract loss   (1,250)   (210)   (48)
Operating expense   401    357    845 
Litigation expense   55    80    - 
Operating loss   (1,706)   (647)   (893)
                
Other Information:               
Gross sales   6,402    2,953    3,673 
Net cancellations   1,870    1,646    2,249 
Net sales   4,532    1,307    1,424 
                
Backlog  $7,190   $4,862   $8,225 
Number of rooftops installed   78    113    98 

 

Sunetric Segment Results:

(000’s omitted)

   2nd Quarter 2017   1st Quarter 2017   2nd Quarter 2016 
Contract revenue               
Sale and installation of solar system  $496   $-   $1,575 
Service   29    19    13 
Leasing   -    -    - 
Contract expense:               
Sale and installation of solar system   555    251    1,595 
Service   93    51    31 
Customer acquisition   118    157    101 
Contract loss   (241)   (440)   (139)
Operating expense   291    365    152 
Other expense   -    -    - 
Litigation expense   -    -    - 
Operating loss   (532)   (805)   (291)
                
Other Information:               
Gross sales   1,004    82    386 
Net cancellations   545    -    441 
Net sales   459    82    (55)
                
Backlog  $2,495   $2,530   $4,757 
Number of rooftops installed   12    -    16 

 

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Corporate Segment:

(000’s omitted)

   2nd Quarter 2017   1st Quarter 2017   2nd Quarter 2016 
General and administrative expenses  $1,631   $1,962   $1,462 
Stock based compensation   48    178    177 
Depreciation   90    109    107 
Operating loss  $(1,769)  $(2,249)  $(1,746)

 

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