This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gaiam Reports 2012 Third Quarter Results

Cash flow provided by operations for the nine months ended September 30, 2012 improved by $19.8 million to $19.4 million from a use of $0.4 million for the same period of last year. Also during the 2012 third quarter, Gaiam secured a new three year, $35 million asset-based credit facility from PNC Bank, N.A., which expires in July 2015. The credit facility currently carries an average rate of 3.64%. At September 30, 2012, the Company had outstanding borrowings against the credit facility of $20.9 million and cash of $19.1 million on its balance sheet.

Jirka Rysavy, Chairman of Gaiam, added, “Double digit internal revenue growth and a $20 million improvement in our operating cash flow during the first nine months are a good basis for entering into our seasonally strongest quarter.”

Following the completion of today’s conference call, a replay will be available until November 12, 2012 by dialing 800/633-8284 or 402/977-9140, passcode: 21609086.

About GAIAM

Gaiam, Inc. (NASDAQ: GAIA) is a leading producer and marketer of lifestyle media and fitness accessories. With a wide distribution network that consists of over 60,000 retail doors, 15,000 store within stores, and 6,000 media category management locations, and a digital distribution platform, Gaiam is dedicated to providing solutions for healthy and eco-conscious living. The Company dominates the health and wellness category and releases non-theatrical programming focused on family entertainment and conscious media. In addition, Gaiam has exclusive licensing agreements with Discovery Communications and other licensing partners. For more information about Gaiam, please visit www.gaiam.com or call 1.800.869.3603.

This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as “expect,” “intend,” “believe,” “will,” “should” or comparable terminology or by discussions of strategy. While Gaiam believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, introduction of new products and services, completion and integration of acquisitions, the possibility of negative economic conditions, and other risks and uncertainties included in Gaiam’s filings with the Securities and Exchange Commission. Gaiam assumes no duty to update any forward-looking statements.

           
GAIAM, INC.
2012 RESULTS WITH REAL GOODS SOLAR DECONSOLIDATED
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

 
Three Months Ended Three Months Ended
September 30, 2012 September 30, 2011
Net revenue $ 42,983 100.0 % $ 41,747 100.0 %
Cost of goods sold   18,912   44.0 %   17,686   42.4 %
 
Gross profit 24,071 56.0 % 24,061 57.6 %
Selling and operating 21,771 50.7 % 22,943 54.9 %
Corporate, general and administration   2,471   5.7 %   2,123   5.1 %
 
Loss from operations (171

)

-0.4 % (1,005 ) -2.4 %
Interest and other income (expense) (192 ) -0.5 % 89 0.2 %
Loss from equity method investment   (15,940 ) -37.1 %   (179 ) -0.4 %
 
Loss before income taxes (16,303 ) -38.0 % (1,095 ) -2.6 %
Income tax benefit   (5,377 ) -12.5 %   (205 ) -0.5 %
 
Net loss (10,926 ) -25.5 % (890 ) -2.1 %
Net income attributable to the noncontrolling interest   (231 ) -0.5 %   (252 ) -0.6 %
 
Net loss attributable to Gaiam, Inc. (a) $ (11,157 ) -26.0 % $ (1,142 ) -2.7 %
 
Weighted-average shares outstanding:
Basic 22,704 23,205
Diluted 22,704 23,205
Net loss per share attributable to Gaiam, Inc. common shareholders:
Basic $ (0.49 ) $ (0.05 )
Diluted $ (0.49 ) $ (0.05 )
 

_____________________

(a)

 

Excluding the losses from our equity method investment in RSOL and a related tax benefit, the net loss attributable to Gaiam, Inc. was $0.4 million, or $0.01 per share, during the third quarter of 2012 and a net loss of $0.9 million, or $0.04 per share, during the third quarter of 2011.

           
GAIAM, INC.
2012 RESULTS WITH REAL GOODS SOLAR DECONSOLIDATED
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

 
Nine Months Ended Nine Months Ended
September 30, 2012 September 30, 2011
Net revenue $ 135,762 100.0 % $ 109,889 100.0 %
Cost of goods sold   56,574   41.7 %   47,755   43.5 %
 
Gross profit 79,188 58.3 % 62,134 56.5 %
Selling and operating 72,828 53.6 % 63,437 57.7 %
Corporate, general and administration 8,125 6.0 % 6,623 6.0 %
Acquisition-related costs   1,667   1.2 %    

%

 
Loss from operations (3,432 ) -2.5 % (7,926 ) -7.2 %
Interest and other income (expense) (259 ) -0.2 % 203 0.2 %
Loss from equity method investment   (17,580 ) -12.9 %   (756 ) -0.7 %
 
Loss before income taxes (21,271

)

-15.6 % (8,479 ) -7.7 %
Income tax benefit   (6,938 ) -5.1 %   (2,631 ) -2.4 %
 
Net loss (14,333 ) -10.5 % (5,848 ) -5.3 %
Net income attributable to the noncontrolling interest   (96 ) -0.1 %   (168 ) -0.2 %
 
Net loss attributable to Gaiam, Inc. (a) $ (14,429 ) -10.6 % $ (6,016 ) -5.5 %
 
Weighted-average shares outstanding:
Basic 22,702 23,272
Diluted 22,702 23,272
Net loss per share attributable to Gaiam, Inc. common shareholders:
Basic $ (0.64 ) $ (0.26 )
Diluted $ (0.64 ) $ (0.26 )
 

_____________________

(a)

 

Excluding costs related to our acquisition of Vivendi Entertainment and the losses from our equity method investment in RSOL and a related tax benefit, the net loss attributable to Gaiam, Inc. was $1.4 million, or $0.08 per share, for the nine months ended September 30, 2012 and $5.3 million, or $0.23 per share, for the nine months ended September 30, 2011.

       
GAIAM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 
 
September 30, 2012 December 31, 2011
Assets
Current assets:
Cash $ 19,057 $ 14,545
Accounts receivable, net 34,200 31,113
Inventory, less allowances 37,442 29,205
Deferred advertising costs 3,421 3,303
Receivable and deferred tax assets 6,941 6,686
Receivables from equity method investee 83 2,176
Advances 17,543 5,336
Other current assets   2,564   1,969
 
Total current assets 121,251 94,333
Property and equipment, net 24,055 23,664
Media library, net 13,813 14,576
Deferred tax assets 17,874 12,636
Goodwill 9,405 2,673
Other intangibles, net 7,243 569
Equity method investment 14,300
Other assets   688   539
 
Total assets $ 194,329 $ 163,290
 
Liabilities and Equity
Current liabilities:
Line of credit $ 20,925 $
Accounts payable 29,361 21,069
Participations payable 24,233 7,851
Accrued liabilities   2,931   3,196
 
Total current liabilities 77,450 32,116
Total equity   116,879   131,174
 
Total liabilities and equity $ 194,329 $ 163,290
 

Non-GAAP Financial Measures For Earnings Before Share-Based Compensation, Acquisition-Related Costs, Interest, Loss From Equity Method Investment, Income Taxes, Depreciation and Amortization (Adjusted EBITDA)

The Company has utilized the non-GAAP information set forth below as an additional device to aid in understanding and analyzing its financial results for the three and nine months ended September 30, 2012 and 2011, respectively. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate meaningful comparison of the results in the current period to those in the prior period and future periods. Reference to these non-GAAP measures should not be considered a substitute for results that are presented in a manner consistent with GAAP.

4 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs