RGS Energy (RGSE) Posts Q2 Loss of 46c/Share

RGS Energy (Nasdaq: RGSE) reported Q2 EPS of ($0.46), which may not compare with the analyst estimate of ($0.10). Revenue for the quarter came in at $35.18 million versus the consensus estimate of $29.87 million.

Loss in the same period last year was $0.82 per diluted share.

Adjusted EBITDA was negative $6.88 million, from $13.53 million posted in Q213.

Dennis Lacey, the newly appointed CEO, stated: "Since being appointed President of our Mainland Residential segment in April, we have made progress within the Residential segment; for instance, comparing the 1st quarter to the 2nd quarter, the close rate by our sales force has doubled, the average sales price increased 7.8%, our cost per acquisition decreased by 7.5%, our backlog increased 28.9%, and to address capacity and efficiency, through the end of July, the headcount has been reduced 19% from April. In addition, our Esales team averaged approximately $1 million in sales per month for the quarter and our East Coast residential sales team sold $15 million for the quarter. This strong performance by our East Coast team is 175% higher than they achieved in the first quarter presenting our operations team with the enviable challenge of keeping up with sales."

Dennis Lacey stated: "The current quarter's results reflect that there are now three primary reportable segments within our Company: Residential, Commercial, and Sunetric, with significantly different economics. Our Residential segment grew revenue and gross margin dollars over the prior year quarter. Furthermore, we intend to devote significant internal resources to growing our Residential segment by increasing the size of our sales force, building out our installation capabilities, and launching our leasing platform. On the other hand, the results of our Commercial segment were adversely impacted by increased pricing pressures and longer cycle times for commercial projects. As a result, we plan to reduce our focus on the commercial solar market in the future."

Dennis Lacey went on to add: "We have already taken actions to further improve our performance in the Residential segment, such as closing unprofitable offices, investing in improved sales training for our employees, test launching our leasing program in one market, and delivering better customer service. We had very strong performance this quarter from our East Coast sales team, which sold $15 million worth of installation jobs, much of which is in our current backlog."

For earnings history and earnings-related data on Real Goods Solar (RGSE) click here.

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