EX-99.1 2 tv525246_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

Business Update for 30-Day Period Since Last Conference Call

 

 

POWERHOUSE™ Division

POWERHOUSE™ Network: 

Reported as of June 15th

(Last Conference Call)

  

Reported as of July 15th

(Today’s Conference Call)

 
Number of participants   310    318 
Number of states   48    48 
           
Backlog & Sales Pipeline:          
Backlog  $5,069,144   $7,766,816 
Sales Pipeline   7,173,558    5,541,919 
           
Purchase Orders & Revenue:   

Activity from

May 16th - June 15th

    

Activity from

June 16th - July 15th

 
Purchase orders  $4,966,010   $2,803,840*
Revenue   69,496    1,932 

*includes one large order for $2.7M

 

Company Break-Even Analysis

   Per Quarter   Per Month 
Estimated POWERHOUSE™ revenue for the Company to achieve Break-Even results  $7,125,000   $2,375,000 
Number of orders per roofer currently in network to break-even   ~1    ~1/3 

The break-even analysis assumes no income or loss from Small Commercial and Sunetric Divisions; however, it includes the full burden of corporate expenses. Number of orders per roofer is estimated based on the current average order (a 7.2kW system at $21,800 full kit price including inverter, monitoring and rapid shut down equipment, plus shipping and handling fees).

 

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Progress Towards Achieving Break-Even Results for 3rd Quarter 2019:    
         3Q Revenue 
Large order reported as of June 15th (estimated 100% shipped 3Q)       $4,275,470 
Large order reported as of July 15th (estimated 25% shipped 3Q)        676,009 
Other contracts in Backlog (estimated 100% shipped 3Q)        787,309 
Expected 3Q revenue from purchase orders received as of July 15th        5,738,788 
Potential 3Q revenue from Sales Pipeline:          
Sales pipeline as of July 15th  $5,541,919      
Hypothetical percentage of Pipeline needed to be recognized in revenue for Break-Even results   25%   1,386,212 
Estimated POWERHOUSE™ revenue for the Company to achieve Break-Even results       $7,125,000 

 

Backlog of Signed Contracts: 

Reported as of June 15th

(Last Conference Call)

  

Reported as of July 15th

(Today’s Conference Call)

 
POWERHOUSE™  $5,069,144   $7, 766,816 
Solar Division   15,842,314    14,477,603 
Total Company Backlog  $20,911,458   $22,244,419 

 

Solar Division

  

Activity from

May 16th - June 15th

  

Activity from

June 16th - July 15th

 
Sales added to Backlog  $636,649   $533,843 
Installation revenue   1,151,854    332,393 
           
Backlog of signed contracts at reporting date  $15,842,314   $14,477,603 

 

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Glossary:

 

POWERHOUSE™ network – Participants are homebuilders, local roofers, EPC solar installers and distributors actively offering or being trained to offer POWERHOUSE™.

 

POWERHOUSE™ purchase orders – RGS receives a signed contract for POWERHOUSE™ kits.

 

POWERHOUSE™ revenue – Upon receipt of deposit or full payment, revenue is recognized when the POWERHOUSE™ kit is shipped to the Network Participant.

 

POWERHOUSE™ sales pipeline – Estimated purchase orders from: (i) local roofers and solar installers that have designed a solar system for a homeowner and received a quote from the Company, (ii) homebuilders that have planned their community for solar systems and received a preliminary quote from the Company and (iii) quotes generated for distributors. The Company’s methodology for determining sales pipeline may not be comparable to methodologies used by other companies in determining their sales pipeline amounts. Sales pipeline may not be indicative of future operating results, and projects in RGS Energy’s sales pipeline may not result in an executed contract.

 

Backlog - Represents the dollar amount of revenue that may be recognized in the future from signed contracts 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 backlog amounts disclosed are net of cancellations received and include anticipated revenues associated with (i) the original contract amounts, and (ii) change orders for which written confirmations have been received. Backlog may not be indicative of future operating results.

 

Solar Division - Consists of Sunetric segment, Small Commercial segment and the run-off of mainland residential.

 

Forward Looking Statements

 

The preliminary financial data discussed above consists of estimates derived from RGS Energy’s internal books and records and have been prepared by, and are the responsibility of, RGS Energy’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 are finalized. Therefore, actual results may differ materially from these estimates and all of these preliminary estimates are subject to change.

 

This document contains forward-looking statements that involve risks and uncertainties, including statements regarding 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 RGS Energy’s 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 “potential,” “hypothetical,” “estimated,” “will,” “expected,” “future “and similar expressions as they relate to us are intended to identify such forward-looking statements.

 

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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: 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 realize profitable revenue growth from the sale and installation of POWERHOUSE™ 3.0, and to the extent, anticipated; RGS Energy’s ability to realize revenue from backlog and sales pipeline for POWERHOUSE™; RGS Energy’s ability to increase the rate of participation within its network; RGS Energy’s ability to obtain future purchase orders for POWERHOUSE™ deliveries; whether RGS Energy will realize increased market penetration from its brand and network supporting activities; competition in the built-in photovoltaic solar system business; RGS Energy’s ability to successfully implement its revenue growth strategy, achieve its target level of sales, generate cash flow from operations, and achieve break-even and better results; and the adequacy of, and access to, capital necessary to implement its revenue growth strategy; and other risks and uncertainties included in the RGS Energy’s filings with the SEC

 

You should read the section entitled “Risk Factors” in our 2018 Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, 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 presentation speak only as of the date of this presentation. 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.

 

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.”

 

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