RGS Energy posts revenue increase, but loss widens
Last Updated: 17:16 May 14, 2014
The solar power provider had revenue of $22.1 million in the quarter that ended March 31, compared with $16.8 million during the same period a year ago. Net loss increased from $3.8 million last year to $13.8 million, or 32 cents per share, this year.
The increased revenue reflected an increase in total solar systems constructed this year, the company stated in its earnings report.
But total expenses also increased due in part to greater investment in sales and operations infrastructure. Weather delays also helped drive down gross profit in the first quarter.
"We continued to make progress with our strategic roadmap in the first quarter," RGS chief executive Kam Mofid said. "Improvements in residential sales and operations coupled with our investments in our own financing capabilities are expected to make important contributions to our market position and overall performance.
"On the commercial front, first quarter was challenging as we began the integration of Mercury and worked through a particularly harsh Northeast winter. Mercury integration is now complete and we look forward to a much stronger commercial performance in the second half of the year."
The earnings report came on the same day that RGS announced it closed on the previously announced $19 million acquisition of Hawaii-based Elemental Energy LLC, which does business as Sunetric. The terms of that acquisition have been restructured from a payment of $7 million in cash and $9 million in stock to an all-stock transaction. RGS will issue 4.5 million shares of Class A common stock to the sellers along with an additional $3 million in potential earn-out payments to be paid in common stock in 2015 and 2016.
RGS stock closed at $3.00 Wednesday, up 9 percent from the day before.
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