RGS Energy reports $57.1M loss for 2014

Real Goods Solar Inc. (Nasdaq: RGSE), which does business as RGS Energy, lost $57.1 million last year versus a loss of $11.3 million the year before, the embattled rooftop solar installer said Tuesday.

RGS, based in Louisville, posted revenue of $70.8 million in 2014 compared with $57.7 million during the same period a year earlier. The company, which installs solar equipment in a number of U.S. states, announced its earnings after the market closed Tuesday.

Despite an overall increase in revenue, residential solar revenue in 2014 fell due to poor East Coast weather that hampered installations – which CEO Dennis Lacey said he also expected to affect the company’s first quarter financial results – among other factors.

“The decrease is primarily due to snow on the East Coast, and supply-chain issues,” he said.

At the same time, the company successfully increased sales along the East Coast as well as e-sales, which increased its residential backlog by 40 percent to $39.7 million.

The company also has taken steps to turn around the business, including laying off some workers in sales and replacing them with call-center operations. RGS said earlier in March that it would reduce its headcount by 100 jobs, or more than 30 percent, as part of the reorganization. The company also exited the large commercial market, focusing on residential markets to improve its profit margin.

“We have significantly strengthened the financial position of the company and restructured for improved operating results,” Lacey said. “We are encouraged by the progress we are making in turning around RGS’ business.”

During the fourth quarter, RGS lost $16.2 million vs. $2.5 million during the same period a year earlier. Fourth-quarter revenue remained essentially flat at $18.4 million vs. $18.2 million the same quarter a year earlier.

About $4.4 million, or 36 percent, of RGS’ residential segment’s revenue for the fourth quarter of 2013 came from two states, Missouri and Colorado, which previously offered attractive incentives to homeowners. With the repeal of those incentives, the revenue from these states in the fourth quarter of 2014 totaled 0.3 percent of the residential segment’s revenue.

The company also incurred a $10 million impairment charge related to its acquisition of Hawaii-based Sunetric, Lacey said. The acquisition has floundered as regulatory changes in Hawaii have made rooftop solar a less attractive option in that state.

“Although last quarter we had indications the local utility was going to be more accommodating to solar, that has not yet occurred,” Lacey said. “For instance, the local utility has recently halted all residential installations in high-saturation areas, which covers roughly 70 percent of Hawaii.”

RGS shares rose 2 cents, or 6 percent, to close at 27 cents. The stock traded at $4.09 a year ago and faces delisting by Nasdaq. The company has proposed a reverse stock split to address the situation.

RGS’ also faces three shareholder lawsuits based on statements the company made about its liabilities, cash balance and other items.

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