OneRoof Energy Group, Inc. today announced financial and operational results for the first quarter ended March 31, 2014.
“We made significant progress in the quarter as we continued to invest in our operational capabilities and sales channel so that we are positioned to capitalize on the rapid growth within the residential solar market,” said David Field, President and Chief Executive Officer of OneRoof Energy Group, Inc. “We are uniquely positioned to serve a growing ecosystem of channel partners who want to offer residential solar to their customer base, while at the same time reducing the cost of energy to US residential homeowners. We are pleased to report that we expanded our business into Massachusetts and New York in the quarter and continued to develop our solar leasing fulfillment platform which we believe positions us to accelerate growth and deployment in the quarters ahead. Our recently announced alliances with energy retailers and home services companies demonstrate early success of our channel strategy, ability to scale our operations, and rapidly increase our acquisition of customers while decreasing the overall cost to do so.”
Q1 2014 Operating Highlights
Key operating highlights in the quarter include:
- Deployed 0.67 megawatts in the first quarter
- Total cumulative megawatts deployed reached 8 megawatts
- Gross bookings totaled 337 systems during the quarter, an increase of 112 percent year-over-year
- Cumulative customers surpassed 1,500 as of March 31
Key strategic milestones since the beginning of the year include:
- Launched proprietary residential solar API (application programming interface) library
- Expanded OneRoof Energy operations to Massachusetts and New York
- Expanded the reach of OneRoof Energy’s Professional Affiliate Channel
- Announced the expansion of our Phoenix call center
- Launched marketing alliance with Choose Energy
- Introduced OneRoof Energy SolarSelect® bundled residential energy offering in Massachusetts
- Continued negotiations with retail energy providers to leverage the OneRoof Energy fulfillment platform
Q1 2014 Income Statement
For the first quarter of 2014, core operating lease revenue was $270,000, up 273 percent from $72,000 in the first quarter of 2013, due to an increase in cumulative operating lease megawatts deployed. In addition, the sold system revenue for the first quarter of 2014 was $517,000, compared to zero in the first quarter of 2013, as the Company started selling systems to third parties in the fourth quarter of 2013. Total revenue for the first quarter 2014 increased to $1.5 million from $114,000 in Q1 2013.
Gross profit margin on held leases was 22.0 percent and sold systems was 2.1 percent in the first quarter. Consolidated gross profit (loss) margin was (56.4) percent.
Total operating expenses were $8.1 million for the first quarter of 2014 as compared to $3.8 million in the first quarter 2013. Consistent with the strategy shift in the Company’s business model, headcount increased significantly as the Company transitioned its focus from dealer-led to direct channel sales. In addition, the Company continued to invest in its sales and marketing infrastructure to support lead generation and other corporate marketing initiatives.
Loss from operations in the first quarter of 2014 was $8.9 million as compared to $9.1 million in the first quarter of 2013.
IFRS net loss attributable to stockholders per basic and diluted share was $(0.66).
“We are deliberately investing for the long-term as we capitalize on the significant opportunity in solar,” commented Dan Halvorson, Executive Vice President and Chief Financial Officer. “As we expand our geographic footprint, focus on operational efficiencies, and build-out our sales and marketing infrastructure, we are investing in a business model that can scale quickly while driving down the costs associated with deploying solar systems.”
The Company uses certain measures which are not in accordance with IFRS. Non-IFRS measures are useful supplemental information but may not have a standardized meaning according to IFRS.
Bookings. Bookings represent a signed agreement and credit approval/bona fide payment source; this is prior to PSA (pre-site analysis) and prior to countersign.
Backlog. Backlog represents the expected quantity of orders we have received but have not yet executed and that are expected to translate into sales within the next 12 months. We use backlog to provide an indication of expected future revenues, and bookings to determine our ability to sustain and increase our revenues.
Deployed. Deployed represents the number of systems that are installed during the period. An installed system is one that is materially complete with all installation requirements. This metric includes solar energy systems deployed under energy contracts, as well as for solar energy system direct sales.
MW Deployed. MW Deployed represents the megawatt production capacity of solar energy systems deployed during the period. This metric includes solar energy systems deployed under energy contracts, as well as for solar energy system direct sales.
MW or Megawatts. MW or megawatts represents the DC nameplate production capacity.
OneRoof Energy Group, Inc. (TSXV:ON), operating through its wholly-owned subsidiary OneRoof Energy, Inc., is a complete solar services provider dedicated to saving homeowners money. The company offers homeowners everything from traditional and lease financing, superior solar system design and installation project management, to ongoing system monitoring and maintenance services. Utilizing its technology-rich, solar leasing fulfillment platform, OneRoof Energy is partnering with traditional energy retailers and home services companies of all sizes to offer residential customers a wide spectrum of affordable, renewable energy choices. With its unique end-to-end energy solution, the company has created multiple touch points to offer cost-saving energy products and services that create a seamless experience for the homeowner while fulfilling their unique energy needs. Currently, the company serves residential customers in five states including Arizona, California, Hawaii, Massachusetts and New York with plans for additional expansion.
SOURCE OneRoof Energy, Inc