Real Goods Solar cuts Q3 loss, sees positive EBITDA for Q4

Nov 7, 2013 - US firm Real Goods Solar Inc (NASDAQ:RSOL) yesterday said its third-quarter 2013 net loss had narrowed to USD 2.1 million (EUR 1.6m) from USD 39 million a year ago and guided for positive adjusted EBITDA in the fourth quarter.

The solar systems integrator explained that its loss had contracted thanks to a rise in revenues and gross profit coupled with a cut in operating costs. The company’s operating expenses fell to USD 8.1 million or 24% of revenues from USD 11.1 million or 42% of revenues previously.

Adjusted EBITDA, which stands for earnings before interest, tax, depreciation and amortisation, was negative at USD 589,000, as compared to an EBITDA loss of USD 5.1 million in July-September 2012.

Real Good Solar’s revenue for the reporting period increased by 29% year-on-year to USD 34 million after the number of installed solar systems went up. The company noted that sales growth was also due to the greater share of residential projects as they cost more per watt than commercial solar installations.

For the fourth quarter of the year, the solar firm expects revenues of USD 34 million-USD 39 million. For the full year the top line result is seen at USD 105 million-110 million. In August, Real Goods Solar agreed to acquire Mercury Energy Inc, operating under the name Mercury Solar Systems, in an all-stock deal. The target is expected to book 2013 sales of USD 17 million-20 million.

In the nine months through September, Real Goods Solar posted a loss of USD 8.8 million, narrowing from USD 43.4 million a year back. Revenue was up by 8% to USD 71.4 million.

(USD 1 = EUR 0.739)

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