Real Goods Solar Inc., which installs and services residential solar power systems, plans an initial public offering of its common stock, according to a Securities and Exchange Commission filing Thursday.
The Broomfield, Colo.-based company did not disclose the expected size or price range of the IPO but indicated the offering may total up to $57.5 million. Real Goods said the total offering price was estimated solely to calculate its registration fee and may change.
The company says it is the largest residential solar company in California, which it says represents two-thirds of the U.S. market for grid-connected solar energy systems. The company was founded in 1978 and has installed more than 2,400 residential and small commercial solar energy systems.
The company's founder and chief executive, John Schaeffer, is the author of a reference guide called the "Solar Living Sourcebook," which the company says has sold about 250,000 copies.
Real Goods is a wholly owned subsidiary of Broomfield, Colo.-based Gaiam Inc., a media company that provides information, products and services for green living and personal development.
For 2007, Real Goods reported net income of $102,000 on revenue of $18.9 million, compared with net income of $250,000 on revenue of $16.8 million in 2006.
Including sales from Marin Solar and Carlson Solar, which Real Goods acquired in 2007, the company's net income would have been $491,000 on revenue of $32.7 million.
Real Goods plans to use $19.8 million of its net proceeds from the offering to repay Gaiam for costs to acquire and expand the business, though it says it has no formal loan agreement with Gaiam. Real Goods also plans to use proceeds for working capital and general corporate purposes, which it says could include acquisitions.
ThinkEquity Partners LLC, Canaccord Adams and Broadpoint are underwriting the IPO.
Real Goods plans to list its shares on the Nasdaq Global Market under the symbol "RSOL."
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