Results from Real Goods Solar, consolidated with Alteris following last summer’s merger, shows a fourth quarter net revenue increase of 99.8% to US$40.3 million for 2011. The revenue growth has been attributed to the acquisition of Alteris.
Gross profit increased to US$9.6 million, or 23.9% of net revenue, for the fourth quarter of 2011 from US$6.2 million, or 30.9% of net revenue, in the same period last year. The decrease in gross profit reflects an increase in mix of commercial revenue as well as a lower average gross margin on our commercial projects for the fourth quarter of 2011.
Operating expenses increased US$3.6 million to US$9.5 million for the fourth quarter of 2011 from US$5.8 million for the same period last year. As a percentage of net revenue, operating expenses decreased to 23.5% from 28.9%. The increase in operating expenses has also been attributed to the consolidation of Alteris.
Operating income for the fourth quarter of 2011 was US$0.2 million compared to US$0.4 million for the same period last year. EBITDA, excluding one-time expenses of US$0.8 million, was US$1.5 million for the fourth quarter. Net income for the fourth quarter of 2011 was US$0.1 million, or US$0.00 per share, as compared to US$0.3 million, or US$0.01 per share, for the same period last year.
For the year ended December 31, 2011, revenue grew to US$109.3 million, a 41.3% increase from US$77.3 million last year. Operating income for 2011, excluding acquisition-related costs of US$2.4 million, was US$0.1 million compared to US$2 million in 2010. Including the impact of the acquisition-related costs, net loss for 2011 was US$1.9 million, or US$0.08 per share, compared to net income of US$1.2 million, or US$0.07 per share, last year.
“We were pleased to close the Alteris transaction in the fourth quarter and to move forward with our strategy of becoming a truly national player in the solar EPC market,” said Erik Zech, chief financial officer. “We have been working hard to bring the aligned businesses together onto common platforms and are now focused on taking advantage of our increased scale. The company saw record revenue in the fourth quarter and was also able to maintain solid EBITDA profitability in a period of significant change and investment. This profitability is particularly impressive given the pre-acquisition losses that Alteris had experienced in the past and is an indicator of the success of our integration efforts.”