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ET | Source: Scatec Solar

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED HEREIN.

Oslo, October 23, 2017: Scatec Solar ASA (the "Issuer" or "Scatec Solar") is currently in the process of assessing its options to secure longer term funding beyond the maturity of the outstanding bond SSO01 G (ISIN NO0010752298, maturing in November 2018). The Issuer has mandated Nordea Bank AB (publ), Filial i Norge, Swedbank Norge, Norwegian Branch of Swedbank AB (publ) and ABN AMRO Bank N.V. (the "Mandated Banks") to arrange a series of fixed income investor meetings commencing on Wednesday 25 October 2017. Following the investor meetings, a NOK denominated, senior unsecured green bond issue with a 4-year tenor will  follow, subject to, inter alia, market conditions. A potential bond issue would be intended to refinance SSO01 G and for general corporate purposes.                      

For more information please contact:

Mikkel Tørud, CFO

Mobile: +47 97699144


About Scatec Solar

Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable source of clean energy worldwide. As a long term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants, and already has an installation track record of close to 600 MW.

Currently, the company is producing electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and another 394 MW are under construction.

With an established global presence, the company is growing briskly with a project backlog and pipeline of more than 1.8 GW under development in the Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway, and listed on the Oslo Stock Exchange under the ticker symbol 'SSO'.

To learn more, visit www.scatecsolar.com
 

Important Notice

The contents of this announcement have been prepared by, and are the sole responsibility of, the Issuer. The Issuer's financial advisors are acting exclusively for the Issuer and no one else, and will not be responsible to anyone other than the Issuer for providing the protections afforded to their respective clients, or for advice in relation to the potential bond issue (the "Transaction"), the contents of this announcement or any of the matters referred to herein. The Transaction and the distribution of this announcement and other information in connection with the Transaction may be restricted by law in certain jurisdictions. The Issuer assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about, and to observe, any such restrictions. This announcement may not be used for, or in connection with, and does not constitute, any offer of securities for sale in the United States or in any other jurisdiction.

The Transaction has not been, and will not be, made in any jurisdiction or in any circumstances in which such offer or solicitation would be unlawful. This announcement is not for distribution, directly or indirectly in or into any jurisdiction in which it is unlawful to make any such offer or solicitation to such person or where prior registration or approval is required for that purpose. No steps have been taken or will be taken relating to the Transaction in any jurisdiction in which such steps would be required. Neither the publication and/or delivery of this announcement shall under any circumstances imply that there has been no change in the affairs of the Issuer or that the information contained herein is correct as of any date subsequent to the earlier of the date hereof and any earlier specified date with respect to such information.

This announcement is not for publication or distribution, directly or indirectly, in the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any bonds in relation to the Transaction have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to, or for the account of, U.S. persons (as such term is defined in Regulation S under the US Securities Act), except pursuant to an effective registration statement under, or an exemption from the registration requirements of, the US Securities Act. All offers and sales outside the United States will be made in reliance on Regulation S under the US Securities Act. There will be no public offer of securities in the United States. This announcement does not constitute an offering circular or prospectus in connection with an offering of securities of the Issuer. Investors must neither accept any offer for, nor acquire, any securities to which this document refers, unless they do so on the basis of the information contained in the investor material made available by the Issuer only to qualified persons in certain jurisdictions where an offer may be made (if an offer is made). This announcement does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for, any securities and cannot be relied on for any investment contract or decision.

This document does not constitute an offer of, or an invitation by or on behalf of the Issuer or the Mandated Banks to subscribe or purchase, any of the securities under this transaction. No person has been authorised to give any information or to make any representation other than those contained in this document in connection with the issue or sale of the securities and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Issuer or the Mandated Banks.

The Mandated Banks have not separately verified the information contained in this document and make no representation, express or implied, or accept any responsibility, with respect to the accuracy or completeness of any of the information in document. To the fullest extent permitted by law, the Mandated Banks accept no responsibility whatsoever for the contents of this document or for any other statement, made or purported to be made by a Mandated Bank or on its behalf in connection with the Issuer or the issue and offering of the securities. Each Mandated Bank accordingly disclaims all liability which it might otherwise have in respect of this document, in relation to this issue and offering of the securities or any such statement.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Read more: Scatec Solar ASA fixed income investor meetings

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ET | Source: Scatec Solar

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED HEREIN.

Oslo, October 23, 2017: Scatec Solar ASA (the "Issuer") is inviting the holders (the "Bondholders") of its outstanding NOK 500,000,000 FRN Senior Unsecured Green Bond Issue 2015/2018 (ISIN NO0010752298) (the "Bonds") to approve certain amendments (the "Proposal") to the bond agreement governing the Bonds (the "Bond Agreement") at a bondholders' meeting (the "Bondholders' Meeting").

Concurrently, the Issuer is also announcing that it is soliciting consents through Nordea Bank AB (publ), Filial i Norge and Swedbank Norge, Norwegian Branch of Swedbank AB (publ) (together, the "Solicitation Agents") from Bondholders under a separate process (the "Consent Solicitation"). The Consent Solicitation is subject to the terms and conditions and restrictions set out in the consent solicitation memorandum dated 23 October 2017 (the "Consent Solicitation Memorandum"). Capitalized terms used herein shall have the meaning ascribed to them in the Consent Solicitation Memorandum.

Consent Solicitation from Bondholders
The Issuer is requesting that Bondholders approve the Proposal in order to permit an early redemption of the Bonds (the "Early Redemption") at a redemption price (the "Early Redemption Price") of 104.25 per cent. of par value (plus accrued interest on the redeemed Bonds) for settlement on a date no earlier than 17 November 2017.

A Bondholder who delivers a valid Voting Instruction in favour of the Proposal together with a proof of holding to the Consent Solicitation Paying Agent named below before 12:00 (CET) on 30 October 2017 (the "Early Consent Fee Deadline") will also be eligible to receive an early consent fee of 0.50 per cent in respect of the Bonds for which a vote has been cast (the "Early Consent Fee") and a priority in the allocation of the New Bonds (as described further below). For the avoidance of doubt, the total consideration to such Bondholders who vote in favour of the Proposal before the Early Consent Fee Deadline will be 104.75 per cent of par value.

Payment of the Early Consent Fee will take place if the Proposal is passed at the Bondholders' Meeting, the Issuer implements the Early Redemption provision into the Bond Agreement and the issuance of New Bonds has settled or is about to settle.

The Bondholders' Meeting will be held at the offices of Nordic Trustee ASA, Haakon VIIs gt 1, 0161 Oslo, 6th floor at 09:00 (CET) on 6 November 2017.

Bondholders who vote in person or represented by proxy (other than a Voting Instruction to the Solicitation Agents) at the Bondholders' Meeting or the Repeated Bondholders' Meeting will not be eligible to receive the Early Consent Fee, but all Bondholders will receive the Early Redemption Price if the Early Redemption is completed. Bondholders are advised to read carefully the Consent Solicitation Memorandum for full details of and information on the Early Redemption and the procedures for participating in the Consent Solicitation. The deadline for submission of valid Voting Instructions is before 16:00 (CET) on 2 November 2017 (the "Final Consent Deadline").

Priority in the allocation of the New Bonds
The Issuer is contemplating issuing a new bond (the "New Bond Issue") in conjunction with an Early Redemption. A Bondholder that wishes to subscribe for bonds in the New Bond Issue ("New Bonds") in addition to participating in the Consent Solicitation may receive priority in the allocation of the New Bonds (the "New Issue Allocation"). The New Issue Allocation may be given for an aggregate principal amount of New Bonds up to the aggregate principal amount of Bonds subject to a Bondholder's valid Voting Instruction in favour of the Proposal, where an allocation of New Bonds is also requested. Bondholders should contact any of the Solicitation Agents to obtain a unique reference number in respect of the New Issue Allocation.

If any Bondholder wishes to subscribe for New Bonds it must make an application to subscribe for such New Bonds to any of the Joint Lead Managers of the New Bonds. Nordea Bank AB (publ), Filial i Norge and Swedbank Norge, Norwegian Branch of Swedbank AB (publ) act as Joint Lead Managers for the issue of the New Bonds.

In order to participate in the Consent Solicitation, investors are requested to submit a Voting Instruction together with a valid proof of holding to the Consent Solicitation Paying Agent.

To receive copies of the Consent Solicitation Memorandum or for questions relating to the Consent Solicitation, please contact the Solicitation Agents.

Solicitation Agents:
Nordea Bank AB (publ), Filial i Norge
Tlf.: +45 6161 2996
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Swedbank Norge, Norwegian Branch of Swedbank AB (publ)
Tlf.: +46 8 700 90 22
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Consent Solicitation Paying Agent:
Nordea Bank AB (publ)
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

About Scatec Solar
Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable source of clean energy worldwide. A long term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants, and already has an installation track record of close to 600 MW.

Currently, the company is producing electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and another 394 WM are under construction.

With an established global presence, the company is growing briskly with a project backlog and pipeline of more than 1.8 GW under development in the Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway.

Important Notice
The contents of this announcement have been prepared by, and are the sole responsibility of, the Issuer. The Issuer's financial advisors are acting exclusively for the Issuer and no one else, and will not be responsible to anyone other than the Issuer for providing the protections afforded to their respective clients, or for advice in relation to the Proposal or the New Bond Issue (collectively the "Transaction"), the contents of this announcement or any of the matters referred to herein. The Transaction and the distribution of this announcement and other information in connection with the Transaction may be restricted by law in certain jurisdictions. The Issuer assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about, and to observe, any such restrictions. This announcement may not be used for, or in connection with, and does not constitute, any offer of securities for sale in the United States or in any other jurisdiction.

The Transaction has not been, and will not be, made in any jurisdiction or in any circumstances in which such offer or solicitation would be unlawful. This announcement is not for distribution, directly or indirectly in or into any jurisdiction in which it is unlawful to make any such offer or solicitation to such person or where prior registration or approval is required for that purpose. No steps have been taken or will be taken relating to the Transaction in any jurisdiction in which such steps would be required. Neither the publication and/or delivery of this announcement shall under any circumstances imply that there has been no change in the affairs of the Issuer or that the information contained herein is correct as of any date subsequent to the earlier of the date hereof and any earlier specified date with respect to such information.

This announcement is not for publication or distribution, directly or indirectly, in the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any bonds in relation to the Transaction have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to, or for the account of, U.S. persons (as such term is defined in Regulation S under the US Securities Act), except pursuant to an effective registration statement under, or an exemption from the registration requirements of, the US Securities Act. All offers and sales outside the United States will be made in reliance on Regulation S under the US Securities Act. There will be no public offer of securities in the United States. This announcement does not constitute an offering circular or prospectus in connection with an offering of securities of the Issuer. Investors must neither accept any offer for, nor acquire, any securities to which this document refers, unless they do so on the basis of the information contained in the investor material made available by the Issuer only to qualified persons in certain jurisdictions where an offer may be made (if an offer is made). This announcement does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for, any securities and cannot be relied on for any investment contract or decision.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. 

Read more: Scatec Solar ASA announces consent solicitation

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ET | Source: Scatec Solar

Oslo, October 20, 2017: Scatec Solar's third quarter consolidated revenues reached NOK 655 million, up from 281 million in the same period last year. Consolidated EBITDA reached NOK 595 million, up from NOK 222 million last year.

Power production reached 157 GWh in the third quarter, broadly in line with the same quarter last year excluding divestments, and up 7% from previous quarter.

Scatec Solar has entered into a partnership agreement with Statoil ASA to establish a 50/50 joint venture to build, own and operate large scale solar plants in Brazil. The Joint Venture has an ambition to become a significant player in the Brazilian solar market. Scatec Solar secured a net gain of NOK 375 million on this transaction in the third quarter.

On October 6, financial close was reached for three solar PV plants in Malaysia, totalling 197 MW. Financing for the plants has been raised through a successful issuance of the world's largest green SRI Sukuk (Islamic bond). Additional 400 MW in Egypt and 258 MW in South Africa are approaching financial close with expected construction start in 2018.

Scatec Solar's proportionate share of revenues reached NOK 922 million, up from 209 million in the same period last year. The proportionate EBITDA reached NOK 500 million, up from 111 million in the same period last year. Cash flow to equity across all business activities reached NOK 216 million in the third quarter, compared to NOK 29 million in the same period last year.

 "Our strong financial results reflect the value that has been created over the last few quarters. The Statoil partnership in Brazil and the Malaysian transaction clearly demonstrate the strength of our project portfolio and business model. I am very proud of our organisation's ability to deliver high value projects in new environments," says Scatec Solar's CEO, Raymond Carlsen.

For more details, please see attached the third quarter report and presentation.

A presentation of the results will be held today at 08.00 at Høyres Hus, Stortingsgata 20, 0161 Oslo. The presentation and Q&A session can also be followed through a live webcast from our website www.scatecsolar.com/investor.

For further information, please contact:

Mr. Raymond Carlsen, CEO,          tel: +47 454 11 280           This email address is being protected from spambots. You need JavaScript enabled to view it.

Mr. Mikkel Tørud, CFO,                  tel: +47 976 99 144           This email address is being protected from spambots. You need JavaScript enabled to view it.

About Scatec Solar

Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable clean energy worldwide. A long-term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants and has an installation track record of 600 MW.

The company is producing electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and another 394 MW are under construction.

With an established global presence, the company is growing briskly with a project backlog and pipeline of 1.8 GW under development in the Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol 'SSO'.

To learn more, visit www.scatecsolar.com

Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/0042969d-675a-4b37-8d26-baa88a5c1cc2

Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/ec617653-304b-4684-a8f7-881ca47ddb68

Read more: Third quarter: Strong financial results and 394...

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ET | Source: RGS Energy

DENVER, Oct. 19, 2017 (GLOBE NEWSWIRE) -- RGS Energy (NASDAQ:RGSE), the nation’s original solar company since 1978, provided a business update on its progress during the third quarter.

Summary of Expectations Versus Results:

  July 17, 2017 Business
Update Expectation
3rd Quarter
            Preliminary Results versus Q2
Sales Growth Gross sales increased ≈33%
Net sales increased ≈59%
Installation Revenue Growth Increased ≈36%
Sales organization Growth Increased ≈15%
Customer acquisition expense Cost effective Decreased ≈5%
Residential cycle time Reduce Reduced ≈11%
Cost of goods sold per watt Reduce Decreased ≈19%
Cash flow Outflow until break-even Outflow
     

Management Commentary:

Dennis Lacey, RGS Energy’s chief executive officer, commented: “We raised capital during February 2017. That capital positioned us to develop a revenue growth plan, which we commenced during April. Since then, to be transparent, we have been issuing business updates. This is the second update in a row where we met or exceeded the expectations we set.  We have been moving very quickly in making progress over this brief six-month period, and we are pleased with the results.”

“Beyond the progress on our revenue growth plan, on September 29th we were awarded the worldwide exclusive license for POWERHOUSE™, an aesthetically innovative solar shingle system that integrates into a house rooftop,” continued Lacey. “We believe that the revenue potential for this product is huge and, as discussed during our recent investor call announcing the license, we are working toward UL certification during second quarter of 2018.”

Growing Sales for Future Revenue:

      3rd Quarter 
2017 
(Preliminary) 
  2nd Quarter 
2017 
(Reported) 
  % change 
from Q2 
Building current backlog: (000’s omitted)          
Beginning backlog       $9,675     $7,392   31 %
Gross sales:          
Residential homeowners       7,528     4,871   55 %
Small business commercial       520     1,531   -66 %
Sunetric (Hawaii)       1,809     1,004   80 %
    Total       9,857     7,406   33 %
Cancellations       (1,944)     (2,415)   -20 %
Net sales       7,913     4,991   59 %
Installation revenue       3,677     2,708   36 %
           
Ending backlog       $13,911     $9,675   45 %
                   
Service and other revenue       332     289   15 %
Total revenue       $4,009     $2,997   34 %
           
Growth of Sales Organization:
(monthly average headcount during quarter)
         
Customer acquisition employees       71     62   15 %
Direct sales representatives       49     41   20 %
                       

Foundations for Profitability for our Residential Segment, RGS Energy’s Largest Segment:

  3rd Quarter   
2017   
(Preliminary)   
2nd Quarter   
2017   
(Reported)   
% change   
from Q2   
Productivity of Sales Organization:      
Number of sales   284     173   64 %
Sales per direct salesperson (avg)   43     36   18 %
Controlling Customer Acquisition Expense:      
Per gross watt sold $ 0.68   $ 0.62   11 %
Ratio of expense to net sales   0.25     0.26   -5 %
Increasing Installation Revenue Gross Margin Percentage:      
Installation cycle time (avg days)   99     111   -11 %
COGS per watt $ 2.43   $ 3.01   -19 %
Gross margin % on actual installation time   30%     16%   87 %
Gross margin % including idle time   17%     4%   276 %
                 

Financing in Place to Grow Sales:

Working Capital: (000’s omitted)             Sept 30, 2017
(Preliminary)
        June 30, 2017
(Reported)
Cash         $4,658   $9,745
Other Current Assets         6,634   6,516
    Total Current Assets         11,292   16,261
Current Liabilities         3,715   3,518
Accrued License Fee Payable         1,000   0
    Total Current Liabilities         4,715   3,518
Working Capital         $6,577   $12,743
Debt          $1   $1
 

Management Commentary:

Solar Division: “We are hitting on all cylinders during the first six months of our revenue growth strategy,” said Seth Wiggins, RGS Energy’s senior vice president of the Solar Division. “Gross sales increased, cancellations are down, net sales increased, revenue increased, installation cycle time improved, gross margin percentage increased by more than 270% from the prior quarter, our backlog increased and our small commercial sales pipeline is growing. As we have explained before, we must first grow sales and backlog, and we are expecting revenue growth in the next six months from our revenue growth strategy.”

The overall average sales price per watt for the residential segment in the third quarter was $3.62 versus $3.27 in the second quarter of 2017. The increase was in part due to the company selling less small commercial business during the third quarter as compared to the second quarter. Generally, small commercial involves larger systems, with more watts sold at a lower per watt sales price. Compared to the second quarter, the company’s residential segment net sales increased by 32% and watts sold increased 15%, resulting in an increase in the overall acquisition cost per watt. Customer acquisition expense as a percentage of net sales declined from the second quarter from the company’s cost-effective marketing strategy.

Wiggins continued: “We continue to innovate; for example, as planned, we commenced beta testing of our new customer centric software, which sets up a portal for our customers. In addition, we announced a smart battery storage program and we are also working towards launching a home energy score program, which we expect will generate leads and reduce our future acquisition expense.”

Finance/Working Capital: “Consistent with the expectation we set, we are utilizing cash to build a business that will ultimately operate on a positive cash flow basis,” noted Alan Fine, RGS Energy’s chief financial officer. “Additionally, because the 201 Tariff petition has created uncertainty regarding future solar panel costs, we strategically expended cash to purchase additional inventory in excess of our current needs so we could meet our future revenue targets. This caused our inventory to increase approximately $1.3 million since June 30, 2017.”

“Our strategy has been to expend cash, investing it in manner expected to allow us to meet and exceed our quarterly break-even results during 2018,” continued Fine. “Further, we expect to expend cash during the fourth quarter of 2017 and, if we, as projected, achieve revenue to operate profitably during the second quarter of 2018, our business will thereafter begin to operate on a positive cash flow basis. To achieve this outcome, we have been investing cash in our sales organization, marketing and a larger inventory of equipment for future installation. We project our cash balance at June 30, 2018, exclusive of cash activity for our new POWERHOUSE™ segment, to be approximately $2 million.”

The company recorded a non-current asset of $1 million for the POWERHOUSE™ license on September 29, 2017 and a corresponding $1 million current liability for the initial up-front license payment. The current liability of $1 million was paid by the company on October 6, 2017; an additional $2 million becomes payable 30 days after receiving UL product certification, which RGS Energy anticipates receiving during the second quarter of 2018. Recording the current liability resulted in a decrease of working capital.

Fine continued: “Following our announcement of our exclusive license for POWERHOUSE™, we received approximately $1 million in cash from conversions of about 600,000 common stock warrants. As the license was just awarded, it is premature to provide overall company financial expectations. As such, the ‘Targets and Expectations’ below are for our legacy segments, not consolidated with the new POWERHOUSE™ segment.”

Rhode Island National Grid Renewable Energy Growth Program:

On October 12, 2017, the company was notified by the Rhode Island National Grid that approvals under its Renewable Energy Growth program for residential solar systems has been suspended, and that there may be additional approvals made prior to March 31, 2018. A new program is scheduled to begin April 1, 2018.

As of September 30, 2017, the company’s backlog of $13.9 million includes $2.3 million of sales to Rhode Island residential homeowners not yet approved under the current Renewable Energy Growth program. The company believes that revenue from these contracts will be recognized when the new program begins during the second quarter of 2018.

Targets and Expectations for RGS Energy’s Solar Division and Corporate Segments:

  • Achieve break-even revenue in the second quarter of 2018.
  • Steady and improving progress in sales for the remainder of 2017, with installation revenue growth delayed a quarter.
  • Digital and content marketing, not vendor lead programs, to become the principal source of customer sourcing.
  • Introduce new products and services, such as battery storage and energy audits.
  • Cash outflow from operations until break-even results are achieved. 

Glossary:

Business Segments – The Solar Division consists of RGS Energy’s Residential and Sunetric business segments. The Corporate segment includes administrative costs associated with administrative services, legal settlements, legal, information systems, and accounting and finance. Commencing September 29, 2017, POWERHOUSE™ is a new business segment.

Gross Sales – The contract value of contracts signed by customers.

Cancellations – The reduction in backlog from customers canceling contracts; customer deposits retained by the company are recognized as revenue at cancellation. Customers may cancel contracts during statutory rescission periods or for other reasons such as accepting a competitor’s offer or following final site evaluation, a customer determining the solar system will not meet expectations.

Installation and Service Revenue – The company recognizes revenue on residential and small business commercial projects at the time of substantial completion of construction, and on large commercial projects on a percentage of completion basis. Service revenue is recognized as earned.

Substantial Completion – The solar power system is fully operational and capable of generating energy, but has not yet received permission to operate from the utility.

Backlog – Represents the dollar amount of revenue that may be recognized in the future from signed contracts to install solar energy systems that have not yet been installed without taking into account possible future cancellations. Backlog is not a measure defined by generally accepted accounting principles, and is not a measure of contract profitability. The company’s methodology for determining backlog may not be comparable to methodologies used by other companies in determining their backlog amounts. The backlog amounts we disclose are net of cancellations received and include anticipated revenues associated with (i) the original contract amounts, and (ii) change orders for which we have received written confirmations from customers. Backlog may not be indicative of future operating results, and projects in our backlog may be cancelled, modified or otherwise altered by customers.

Customer Acquisition Expense per Watt – Customer acquisition expenses represent the aggregate compensation of the sales and marketing organizations and the cost of acquiring customers leads such as purchasing paid leads, the cost of digital marketing, and other marketing campaigns to acquire customers.  Customer acquisition per watt represents the customer acquisition expense incurred during the period divided by the watts on solar systems sold during the period. The company internally measures cost of customer acquisition using several methods and principally as a percentage of revenue. The company presents certain metrics on a per watt basis as it believes this is a typical reporting convention for the solar installation industry.

Cycle Time - Number of days from signing of customer contracts until substantial completion.

COGS Per Watt and Gross Margin Percentage on Installations - Cost of goods sold (“COGS”) include direct project installation costs (materials, labor, travel, financing fees, and estimated warranty costs) and indirect costs for project installation support (including un-utilized labor of idle time of construction crews, supplies, and insurance).  The company employs an internal time reporting system to determine COGS and resulting gross margin percentage used by the company to measure its performance in achieving gross margin percentage targets.  Further, the company measures COGS per watt based upon COGS, excluding idle time, divided by the aggregate watts of systems installed during the period. For financial reporting purposes, COGS include the idle time of construction crews currently maintained by the company in anticipation of future growth of backlog.

About RGS Energy
RGS Energy (Nasdaq:RGSE) is America’s Original Solar Company providing solar, storage and energy services whose mission is clean energy savings. The company sells, designs, installs solar systems for residential homeowners and small business companies, and is also the exclusive manufacturer of POWERHOUSE™, an innovative in-roof solar shingle using technology developed by The Dow Chemical Company. 

For more information, visit RGSEnergy.com, RGSPOWERHOUSE.com, on Facebook at www.facebook.com/RGSEnergy and on Twitter at twitter.com/rgsenergy. Information on such websites is not incorporated by reference into this press release.

RGS Energy is the Company’s registered trade name. The Company files periodic and other reports with the Securities and Exchange Commission under its official name “Real Goods Solar, Inc.”

Forward-Looking Statements and Cautionary Statements
The preliminary financial data discussed above consists of estimates derived from RGS Energy’s internal books and records and has been prepared by, and are the responsibility of, the company’s management. The preliminary estimates discussed above are subject to the completion of financial closing procedures, final adjustments and other developments that may arise between now and the time the financial results for the third quarter ended September 30, 2017 are finalized. Therefore, actual results may differ materially from these estimates and all of these preliminary estimates are subject to change.

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including statements regarding the RGS Energy’s results of operations and financial positions, and RGS Energy’s business and financial strategies.  Forward-looking statements are neither historical facts nor assurances of future performance.  Instead, they provide our current beliefs, expectations, assumptions, forecasts, and hypothetical constructs about future events, and include statements regarding our future results of operations and financial position, business strategy, budgets, projected costs, plans and objectives of management for future operations.  The words “forecast,” “project,” “expect,” “plan,” “future,” “believe,” “may,” “hypothetical,” “will,” “estimate,” “target,” “anticipate” and similar expressions as they relate to RGS Energy or Dow are intended to identify such forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.  Forward looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.  Therefore, RGS Energy cautions you against relying on any of these forward-looking statements.

Key risks and uncertainties that may cause a change in any forward-looking statement or that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include: rules, regulations and policies pertaining to electricity pricing and technical interconnection of customer-owned electricity generation such as net energy metering; the continuation and level of government subsidies and incentives for solar energy; the continuation and level of utility and state incentives for solar energy; RGS Energy’s ability to successfully implement its revenue growth strategy, achieve its target level of sales, generate cash flow from operations, achieve break-even and better results for its solar division, expand its sales and installation teams and marketing, decrease its customer acquisition cost, develop and implement new products and services, and expand into new states; RGS Energy’s current capital resources being sufficient to implement its revenue growth strategy; the ability to successfully and timely commercialize POWERHOUSE™ 3.0 to homeowners and new home builders; the ability to obtain requisite certification of POWERHOUSE™ 3.0; the adequacy of, and access to, necessary capital to commercialize POWERHOUSE™ 3.0; the satisfaction of other conditions to the POWERHOUSE™ 3.0 license agreement; RGS Energy’s ability to manage supply chain in order to have production levels and pricing of the POWERHOUSE™ 3.0 shingles to be competitive; the ability of RGS Energy to successfully expand its operations and employees and realize profitable revenue growth from the sale and installation of POWERHOUSE™ 3.0, and to the extent, anticipated; the potential impact of the announcement of RGS Energy’s expansion into the POWERHOUSE™ 3.0 business with employees, suppliers, customers and competitors; RGS Energy’s ability to successfully and timely expand its POWERHOUSE™ 3.0 business outside of the United States; foreign exchange risks associated with the POWERHOUSE™ 3.0 business; changes in general economic, business and political conditions, including tariffs on imported solar cells and changes in the financial markets; significant competition that RGS Energy faces; RGS Energy’s ability to successfully complete the customer portal software development project on a timely basis and integrate the resulting software with RGS Energy’s existing software and business; customer acceptance of, experience with and satisfaction with the customer portal software; continued access to competitive third party financiers to finance customer solar installations; compliance with extensive government regulation; the potential impact on backlog and timing of revenue from the Rhode Island National Grid delay of approvals; and future cancellations and backlog.

You should read the section entitled “Risk Factors” in our 2016 Annual Report on Form 10-K, as amended, and in our Quarterly Report on Form 10-Q/A for the quarter ended June 30, 2017, each of which has been filed with the Securities and Exchange Commission, which identify certain of these and additional risks and uncertainties. Any forward-looking statements made by us in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

POWERHOUSE™ is a trademark of The Dow Chemical Company, used under license.

Investor Relations Contact
Ron Both
Managing Partner, CMA
Tel 1-949-432-7566
Read more: RGS Energy Issues Business Update – Net Sales Up...

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