Lacey named CEO to return RGS to profitability

LOUISVILLE – Solar provider RGS Energy (Nasdaq: RGSE) announced on Tuesday that it has named Dennis Lacey chief executive officer.

Lacy replaces Kam Mofid, who left the company to pursue other interests, according to a statement from RGS.

Officials for the company couldn’t immediately be reached.

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The announcement came in conjunction with a second-quarter earnings release for RGS in which Lacey said the company has reduced the headcount in its residential segment by 19 percent since April, though he didn’t specify how many jobs that entailed.

Lacey said RGS, which logged a $21.4 million loss for the second quarter ending June 30, has seen its commercial segment impacted adversely by pricing pressures and long cycle times for projects. As a result, the company is reducing its focus on the commercial market.

“We have already taken actions to further improve our performance in the residential segment, such as closing unprofitable offices, investing in improved sales training for our employees, test launching our leasing program in one market, and delivering better customer service,” Lacey said. “We had very strong performance this quarter from our East Coast sales team, which sold $15 million worth of installation jobs, much of which is in our current backlog.”

Lacey, who joined RGS in April, formerly served as president of the Residential Solar Division. He has served in senior executive positions at various companies, including as president and CEO of publicly traded equipment leasing company Capital Associates.

He takes over a company that reported $35.2 million in revenue in the second quarter, up from $20.7 million for the same period last year. The quarterly loss of $21.4 million, or 46 cents per share, was greater than a loss of $2.9 million last year.

“The board of directors has evaluated our company’s prospects, and we’ve determined our best opportunities for realizing greater shareholder value reside within the residential solar division,” RGS board chairman David Belluck said in a release about Lacy’s hiring. “Given Dennis’ highly successful career accomplishments – particularly with turnaround situations and more recently his strong leadership of our residential division – we have identified in Dennis the essential experience and skill set needed to return RGS Energy to profitability as we focus more on the residential segment of our business

“The board and I thank Kam for his contributions and wish him success in the future.”