US solar provider RGS Energy (Real Goods Solar), which operates in the residential, commercial and utility sectors, has reported full-year results for 2013, in which the company saw revenues rise year on year by 9%.
The fourth quarter of 2013 brought RGS its highest level of residential installs to date, 5.2MW across 780 installs, worth US$18.6 million, despite poor weather conditions. During Q4 2013, in the commercial sector RGS completed its largest installation to date, a 4.2MW project in Massachusetts
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The company also reported a rise in residential installations from 2012 figures of over 50% in 2013, while in addition to the Massachusetts 4.2MW plant RGS also created a partnership in the final quarter with developer Green Lantern Capital to co-develop 4.5MW worth of projects.
The 9% increase in net revenue brought the 2013 figure up to US$101.3 million from US$92.9 million the previous year; gross profit declined from 24.8% of net revenue in 2012 when it was US$23 million, to US$22.3 million, representing 22% of net revenue.
Although the company stopped short of offering financial guidance, it issued its expected deployment figures for 2014, claiming that RGS “expects total deployments of solar energy systems in 2014 to increase to a range of 50-55 megawatts, compared to 35 megawatts in 2013.” The 2013 figure includes capacity added as a result of the successful acquisition of installer Mercury Solar Systems in August.
Despite the decline in profit, which the company blamed in part on poor weather conditions which slowed down installations and raised labour costs, RGS chief executive officer Kam Mofid said 2013 was “a successful and pivotal year for RGS Energy on a number of fronts”.
Mofid cited a 20% fall in operating expenses and an improvement in operational efficiency that yielded “double digit growth in megawatts deployed” as proof that the company’s strategy of focusing on revenue growth has worked. The company’s recent activities have included strategic acquisitions such as the deal with Mercury and the forming of RGS Energy Asset Management, a joint venture (JV) with Altus Power Management America aimed at funding, building and managing up to 150MW of commercial PV projects. RGS Energy Asset Management will allow the company to own interests in projects with minimal initial capital while retaining the option of subsequently taking a larger share of project ownership in future.
Two major developments for RGS in the final quarter of 2013 in the residential space were a deal with solar crowd-funding site Solar Mosaic to offer loaned products to customers, while the company also plans to begin offering its own solar leasing programme. Mofid said the in-house leasing programme, along with “expanded financial capabilities” were expected to “support a strong foundation for growth in 2014″.
The company also increased its level of working capital by US$13 million in 2013 compared to 2012, which RGS attributed to a November 2013 sale of shares and warrants which raised US$18.4 million.
Operational costs also fell year on year to US$31 million from US$36.9 million in 2012. This was due to what RGS referred to as “the company's continuing efforts to increase operating efficiency and lower customer acquisition costs”.
The company reported losses, as it did the year before; however net loss for 2013 was at US$11.3 million, equivalent to US$0.38 per share, compared to a 2012 net loss of US$47.2 million (US$1.77 per share). Similarly, while earnings before interest, taxes, depreciation and amortisation (EBITDA) was a loss of US$8.7 million in 2013, an improvement of US$5.4 million compared to 2012, when EBITDA stood at a loss of US$14.1 million.
The company intends to release its full 10-K annual report on or before 31 March.
