LOUISVILLE, Colo., March 2, 2015 (GLOBE NEWSWIRE) -- RGS Energy (Nasdaq:RGSE), one of the nation's largest and most recognized rooftop installers of solar equipment, has begun a process of reorganization and realignment under a new operational model designed to leverage core strengths while reducing non-core overhead.
"The foundation of our new operational model focuses on our core strengths of engineering, e-Sales, operations management and leasing," noted RGS Energy CEO, Dennis Lacey. "We expect this effort to streamline our operations and lower our fixed operating costs, as we leverage our recently strengthened financial position to address an over $50 million installation backlog."
RGS Energy will maintain a centralized engineering capability in its Louisville, Colorado headquarters, and will continue to maintain field sales and in-house construction teams on the East Coast. Most of the major changes will focus on its California operations, where it will replace its offices, warehouses, field sales and construction teams in California with greater utilization of call center e-Sales and the company's Authorized Integrator Program for solar installations. The company remains strongly committed to California, given the major opportunity, and believes it has a more efficient approach with the new operational model.
The company's reorganization will reduce employee headcount by 30% or 100 positions over the next few months. Severance, lease exit and the associated costs of the restructuring is expected to be between $140,000 and $240,000, with a non-cash impairment charge for leasehold improvements of approximately $70,000. The company expects to complete most of the restructuring in the current first quarter of 2015, with the completion and related charges subject to local labor regulations.
About RGS Energy
RGS Energy (Nasdaq:RGSE) is one of the nation's largest and most recognized rooftop installers of solar equipment, serving residential and small business customers in the mainland U.S. and Hawaii. Beginning with one of the very first photovoltaic panels sold in 1978, the company has installed tens of thousands of solar power systems. RGS Energy makes it very convenient for customers to save on their energy bill by providing a comprehensive solar solution, from design, financing, permitting and installation to ongoing monitoring, maintenance and support.
For more information, visit RGSEnergy.com, on Facebook at www.facebook.com/rgsenergy and on Twitter at www.twitter.com/rgsenergy. RGS Energy is a trade name and RGS Energy makes filings with the Securities and Exchange Commission under its official name "Real Goods Solar, Inc." These documents are available on both the EDGAR section of the SEC's website at www.sec.gov and the Investor Relations section of the Company's website at www.rgsenergy.com. For more information about the company, visit www.rgsenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they provide our current beliefs, expectations, assumptions and forecasts 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 "expect," "will" and similar expressions as they relate to us are intended to identify such forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, without limitation, the following: our ability to successfully complete the reorganization and realignment discussed in this press release, our ability to reduce overhead and operational costs as a result thereof, our ability to convert backlog into revenue, the costs associated with the reorganization and realignment discussed in this press release and such other factors as discussed in the documents that RGS Energy has filed with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
CONTACT: Media and Investor Relations Contact for RGS Energy: Ron Both Liolios Group, Inc. Tel 1-949-574-3860 RGSE@liolios.com
Source: RGS Energy