RGS Energy (RGSE) to Delay 10-Q Filing; Prelim. Q2 Revs Top Expectations

RGS Energy (Nasdaq: RGSE) filed to delay its Form 10-Q submission with the U.S. SEC. The company offered the following explanation and update:

Real Goods Solar, Inc., (the “Company”) is unable to file its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 (the “Quarterly Report”) within the prescribed time period. On January 14, 2014, the Company completed the acquisition of Mercury Energy, Inc. and on May 14, 2014, the Company completed the acquisition of Elemental Energy LLC, doing business as Sunetric. The Company was unable to complete the accounting and reporting of the consolidation of the businesses in sufficient time to permit timely filing of the Quarterly Report without unreasonable expense or effort. The Company intends to file the Quarterly Report on or before the fifth calendar day following the prescribed due date.

The Company expects its net revenue to be in the range of $34 to $36 million for quarterly period ended June 30, 2014, compared to $20.7 million for the quarterly period ended June 30, 2013. The Company expects its net loss to increase significantly for the quarterly period ended June 30, 2014. As a result of its negative financial performance, the Company is evaluating the fair value of its goodwill and other assets as compared to their carrying values. Because the Company has not yet completed its purchase accounting for its business acquisitions done earlier this year, the Company has not been able yet to complete this impairment evaluation, but anticipates it will record an impairment charge in the range of $18 to $20 million. The Company estimates that its net loss for the quarterly period ended June 30, 2014 will be $20 to $22 million, compared to $2.9 million for the quarterly period ended June 30, 2013.

*** The Street sees Q2 revs of $29.9 million and loss of $0.09 per share.

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