Gaia Reports Third Quarter 2020 Results
Gaia, Inc. (NASDAQ: GAIA) reported a strong performance for Q3 2020, with revenues up by 28% to $17.5 million compared to $13.7 million a year earlier. The company achieved positive earnings, posting a net income of $6.3 million or $0.33 per share, boosted by a $6.1 million gain on asset sales. Excluding this gain, net income rose substantially from a $4.1 million loss in the prior year. Growing member base and reduced operating expenses to $14.9 million contributed to improved cash flow, totaling $7.2 million in operations for the first nine months.
- Revenues increased 28% to $17.5 million from $13.7 million year-over-year.
- Net income was $6.3 million, or $0.33 per share, significantly improving from a loss of $4.1 million or $(0.23) per share in the previous year.
- Gross profit rose 29% to $15.3 million, with a gross margin of 87.1%.
- Outstanding debt reduced to $4.0 million from $17.0 million.
- Cash from operations improved by $13.1 million year-over-year.
- Net income included a one-time gain of $6.1 million, excluding which the company only realized $0.2 million in net income.
Revenues up
BOULDER, Colo., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the third quarter ended September 30, 2020.
Third Quarter 2020 Highlights vs. Same Year-Ago Quarter
28% increase in revenues- Generated positive earnings and cash flow
- Reduced outstanding debt to
$4.0 million from$17.0 million
“The results for the third quarter reflect the attainment of our goal to generate positive earnings and cash flows while sustaining a revenue growth rate above
Third Quarter 2020 Financial Results
Revenues in the third quarter increased
Gross profit in the third quarter increased
Total operating expenses in the third quarter decreased
Net income in the third quarter was
EBITDA improved significantly to
Gaia generated cash from operations of
The transition to cash generation during the quarter was completed as expected, with an overall increase in Gaia’s cash balance of
As of September 30, 2020, Gaia had
Conference Call
The company will hold a conference call today at 4:30 p.m. Eastern time to discuss its third quarter 2020 results.
Date: Monday, November 9, 2020
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-866-548-4713
International dial-in number: 1-323-794-2093
Conference ID: 2739010
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.
The conference call will be broadcast live and available for replay here and via ir.gaia.com. A telephonic replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through November 23, 2020.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 2739010
About Gaia
Gaia is a global video streaming service and community that provides curated conscious media in four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—to its subscribers in 185 countries with approximately 8,000 titles. Over
Forward-Looking Statements
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,” “believe,” “will,” or comparable terminology or by discussions of strategy. While Gaia 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, operating losses, general economic conditions, competition, changing consumer preferences, acquisitions, new initiatives we undertake, costs of acquiring new subscribers, subscriber retention rates, and other risks and uncertainties included in Gaia’s filings with the Securities and Exchange Commission. Gaia assumes no duty to update any forward-looking statements.
Contacts
Paul Tarell
Gaia, Inc.
(303) 222-3330
Paul.Tarell@gaia.com
Cody Slach
Gateway Investor Relations
(949) 574-3860
GAIA@gatewayir.com
GAIA, INC.
Condensed Consolidated Statements of Operations
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| (in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues, net | $ | 17,537 | $ | 13,660 | $ | 48,201 | $ | 39,291 | ||||||||
| Cost of revenues | 2,264 | 1,801 | 6,248 | 5,186 | ||||||||||||
| Gross profit | 15,273 | 11,859 | 41,953 | 34,105 | ||||||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 13,479 | 14,319 | 42,354 | 44,214 | ||||||||||||
| Corporate, general and administration | 1,426 | 1,440 | 4,716 | 4,526 | ||||||||||||
| Total operating expenses | 14,905 | 15,759 | 47,070 | 48,740 | ||||||||||||
| Income (loss) from operations | 368 | (3,900 | ) | (5,117 | ) | (14,635 | ) | |||||||||
| Interest and other income (expense), net | 5,946 | (241 | ) | 5,395 | (400 | ) | ||||||||||
| Income (loss) before income taxes | 6,314 | (4,141 | ) | 278 | (15,035 | ) | ||||||||||
| Provision for income taxes | — | 3 | 69 | 45 | ||||||||||||
| Income (loss) from continuing operations | 6,314 | (4,144 | ) | 209 | (15,080 | ) | ||||||||||
| Income (loss) from discontinued operations | — | — | — | (258 | ) | |||||||||||
| Net income (loss) | $ | 6,314 | $ | (4,144 | ) | $ | 209 | $ | (15,338 | ) | ||||||
| Earnings per share: | ||||||||||||||||
| Basic: | ||||||||||||||||
| Continuing operations | $ | 0.33 | $ | (0.23 | ) | $ | 0.01 | $ | (0.83 | ) | ||||||
| Discontinued operations | — | — | — | (0.01 | ) | |||||||||||
| Basic net income (loss) per share | $ | 0.33 | $ | (0.23 | ) | $ | 0.01 | $ | (0.84 | ) | ||||||
| Diluted: | ||||||||||||||||
| Continuing operations | $ | 0.32 | $ | (0.23 | ) | $ | 0.01 | $ | (0.83 | ) | ||||||
| Discontinued operations | — | — | — | (0.01 | ) | |||||||||||
| Diluted net income (loss) per share | $ | 0.32 | $ | (0.23 | ) | $ | 0.01 | $ | (0.84 | ) | ||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 19,183 | 18,375 | 18,834 | 18,070 | ||||||||||||
| Diluted | 19,737 | 18,375 | 19,442 | 18,070 | ||||||||||||
| EBITDA | $ | 3,372 | $ | (1,412 | ) | $ | 3,909 | $ | (8,044 | ) | ||||||
* See definition and reconciliation on following page.
GAIA, INC.
Summary of Cash Flows
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities - continuing operations | $ | 3,333 | $ | (679 | ) | $ | 7,197 | $ | (5,996 | ) | ||||||
| Operating activities - discontinued operations | — | — | — | 76 | ||||||||||||
| Operating activities | 3,333 | (679 | ) | 7,197 | (5,920 | ) | ||||||||||
| Investing activities | 9,862 | (5,151 | ) | 2,781 | (16,489 | ) | ||||||||||
| Financing activities | (12,932 | ) | — | (12,751 | ) | 4,092 | ||||||||||
| Net change in cash | $ | 263 | $ | (5,830 | ) | $ | (2,773 | ) | $ | (18,317 | ) | |||||
Reconciliation of Income (loss) from Continuing Operations to EBITDA and Adjusted EBITDA
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Income (loss) from continuing operations | $ | 6,314 | $ | (4,144 | ) | $ | 209 | $ | (15,080 | ) | ||||||
| Interest expense (income), net | 179 | 241 | 730 | 400 | ||||||||||||
| Provision for (benefit from) income taxes | — | 3 | 69 | 45 | ||||||||||||
| Gain on sale of real estate | (6,125 | ) | — | (6,125 | ) | — | ||||||||||
| Depreciation and amortization expense | 3,004 | 2,488 | 9,026 | 6,849 | ||||||||||||
| EBITDA | 3,372 | (1,412 | ) | 3,909 | (7,786 | ) | ||||||||||
| Share-based compensation expense | 336 | 488 | 1,864 | 1,597 | ||||||||||||
| Adjusted EBITDA | $ | 3,708 | $ | (924 | ) | $ | 5,773 | $ | (6,189 | ) | ||||||
EBITDA represents net loss before interest expense, provision for income taxes, other income, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to remove share-based compensation expense. EBITDA and Adjusted EBITDA do not represent net income, as that term is defined under GAAP, and should not be considered as an alternative to net income (loss) as an indicator of our operating performance.
Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management or discretionary use as such measures do not consider certain cash requirements such as capital expenditures, tax payments and debt service requirements. EBITDA and Adjusted EBITDA as presented herein are not necessarily comparable to similarly titled measures.
GAIA, INC.
Condensed Consolidated Balance Sheets
| September 30, | December 31, | |||||||
| (in thousands, except share and per share data) | 2020 | 2019 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 8,721 | $ | 11,494 | ||||
| Accounts receivable | 2,358 | 2,310 | ||||||
| Prepaid expenses and other current assets | 2,043 | 2,443 | ||||||
| Total current assets | 13,122 | 16,247 | ||||||
| Building and land, net | 24,653 | 22,681 | ||||||
| Media library, software and equipment, net | 39,084 | 36,921 | ||||||
| Goodwill | 17,289 | 17,289 | ||||||
| Investments and other assets | 12,647 | 13,034 | ||||||
| Total assets | $ | 106,795 | $ | 106,172 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 8,385 | $ | 10,594 | ||||
| Deferred revenue | 12,556 | 8,025 | ||||||
| Total current liabilities | 20,941 | 18,619 | ||||||
| Long-term debt and other liabilities, net | 12,127 | 18,433 | ||||||
| Deferred taxes | 276 | 206 | ||||||
| Total liabilities | 33,344 | 37,258 | ||||||
| Total equity | 73,451 | 68,914 | ||||||
| Total liabilities and equity | $ | 106,795 | $ | 106,172 | ||||
FAQ
What were Gaia's Q3 2020 revenues?
How much net income did Gaia report for Q3 2020?
What was Gaia's outstanding debt as of Q3 2020?
How did Gaia's cash flow perform in the first nine months of 2020?
