BOULDER, Colo., May 03, 2021 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the first quarter ended March 31, 2021.
Highlights
- 30% increase in revenues from the year-ago quarter
- Third sequential quarter of positive earnings and cash flow
- Crossed 750,000-member milestone
“The first quarter of 2021 was a solid follow through on the results we achieved during the second half of 2020, as we continued to generate net income and cash flows while driving revenue and member growth,” said Paul Tarell, Gaia’s CFO. “We continue to build on the foundation we laid over the past two years as seen by our ability to grow revenues 20% for the year while staying net income and cash flow positive.”
First Quarter 2021 Financial Results
Revenues in the first quarter increased 30% to $18.9 million from $14.5 million in the year-ago quarter. This was primarily due to growth in members and an increase in average revenue per member. Paying members increased to 750,100 as of March 31, 2021.
Gross profit in the first quarter increased 31% to $16.5 million compared to $12.6 million in the year-ago quarter. Gross margin increased to 87.1% versus 86.9% in the year-ago quarter.
Total operating expenses were $16.0 million, or 85% of revenues in the first quarter of 2021 compared to $15.9 million, or 109% of revenues, in the year-ago quarter. The significant reduction as a percentage of revenues is due to continued efficiency improvements in fixed operating expenses and reducing customer acquisition costs as a percentage of revenue to 40% from 52% in the year-ago quarter.
Net income improved by $4.0 million in the first quarter to $0.4 million or $0.02 per share, from a net loss of $3.6 million or $(0.19) per share in the year ago quarter. As a percentage of revenues, this represents a 26% improvement between periods.
EBITDA improved to $3.5 million, or 19% of revenues, compared to $(0.3) million, or (2)% of revenues in the year-ago quarter.
Cash flows from operations improved to $5.2 million during the first quarter of 2021 from $2.0 million in the year ago quarter. With the improvement, Gaia ramped its investment in original content as planned during the first quarter of 2021. Gaia’s cash balance increased to $13.0 million as of March 31, 2021.
With the improvements in cash flow generation over the past twelve months, Gaia’s board of directors has authorized a share repurchase program of up to 5,000,000 shares of its Class A common stock. Gaia may repurchase shares on the open market or through privately negotiated transactions. The repurchase plan does not have an expiration date, does not require Gaia to repurchase any specified number of shares and may be suspended, discontinued, or restarted at any time in Gaia’s discretion.
The board of directors also approved the renewal of our shelf registration statement on Form S-3 with the Securities Exchange Commission (SEC) for 10,000,000 shares of Class A common stock. The registration statement will replace an expired shelf registration Gaia previously had in place. The primary purpose of this shelf registration is to allow flexibility for potential future business combinations or content library acquisitions. Gaia has no current plans to utilize these shares. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Conference Call
Date: Monday, May 3, 2021
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-800-458-4121
International dial-in number: 1-323-794-2093
Conference ID: 3754957
Please call the conference telephone number 5-10 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 May 17, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 3754957
About Gaia
Gaia is a member-supported global video streaming service and community that produces and curates conscious media through four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—to its members in 185 countries. Gaia’s library includes approximately 8,000 titles, over 80% of which is exclusive to Gaia, and approximately 80% of the views are generated by content produced or owned by Gaia. Gaia is available on Apple TV, iOS, Android, Roku, Chromecast, and sold through Amazon Prime Video and Comcast Xfinity. For more information about Gaia, visit www.gaia.com .
Company Contact:
Paul Tarell
Chief Financial Officer
Gaia, Inc.
Investors@gaia.com
Investor Relations:
Gateway Investor Relations
Cody Slach
(949) 574-3860
GAIA@gatewayir.com
GAIA, INC.
Condensed Consolidated Statements of Operations
|
|
For the Three Months Ended March 31, |
|
| (in thousands, except per share data) |
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
| Revenues, net |
|
$ |
18,896 |
|
|
$ |
14,511 |
|
| Cost of revenues |
|
|
2,438 |
|
|
|
1,901 |
|
| Gross profit |
|
|
16,458 |
|
|
|
12,610 |
|
| Gross profit margin |
|
|
87.1 |
% |
|
|
86.9 |
% |
| Expenses: |
|
|
|
|
|
|
|
|
| Selling and operating |
|
|
14,538 |
|
|
|
14,458 |
|
| Corporate, general and administration |
|
|
1,496 |
|
|
|
1,417 |
|
| Total operating expenses |
|
|
16,034 |
|
|
|
15,875 |
|
| Income (loss) from operations |
|
|
424 |
|
|
|
(3,265 |
) |
| Interest and other income (expense), net |
|
|
(66 |
) |
|
|
(246 |
) |
| Income (loss) before income taxes |
|
|
358 |
|
|
|
(3,511 |
) |
| Provision for income taxes |
|
|
— |
|
|
|
69 |
|
| Net income (loss) |
|
$ |
358 |
|
|
$ |
(3,580 |
) |
|
|
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
| Basic earnings per share |
|
$ |
0.02 |
|
|
$ |
(0.19 |
) |
| Diluted earnings per share |
|
$ |
0.02 |
|
|
$ |
(0.19 |
) |
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
| Basic |
|
|
19,201 |
|
|
|
18,482 |
|
| Diluted |
|
|
19,724 |
|
|
|
18,482 |
|
|
|
|
|
|
|
|
|
|
| EBITDA* |
|
$ |
3,523 |
|
|
$ |
(296 |
) |
* See definition and reconciliation below.
GAIA, INC.
Summary of Cash Flows
|
|
For the Three Months Ended March 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
| Net cash provided by (used in): |
|
|
|
|
|
|
|
|
| Operating activities |
|
$ |
5,188 |
|
|
$ |
2,006 |
|
| Investing activities |
|
|
(4,774 |
) |
|
|
(3,601 |
) |
| Financing activities |
|
|
26 |
|
|
|
120 |
|
| Net change in cash |
|
$ |
440 |
|
|
$ |
(1,475 |
) |
Reconciliation of Income (loss) from Continuing Operations to EBITDA and Adjusted EBITDA
|
|
For the Three Months Ended March 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
| Net income (loss) |
|
$ |
358 |
|
|
$ |
(3,580 |
) |
| Interest expense, net |
|
|
66 |
|
|
|
246 |
|
| Provision for income taxes |
|
|
— |
|
|
|
69 |
|
| Depreciation and amortization expense |
|
|
3,099 |
|
|
|
2,969 |
|
| EBITDA |
|
|
3,523 |
|
|
|
(296 |
) |
| Share-based compensation expense |
|
|
613 |
|
|
|
465 |
|
| Adjusted EBITDA |
|
$ |
4,136 |
|
|
$ |
169 |
|
EBITDA represents net income (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
|
|
March 31, |
|
|
December 31, |
|
| (in thousands, except share and per share data) |
|
2021 |
|
|
2020 |
|
|
|
(unaudited) |
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash |
|
$ |
13,045 |
|
|
$ |
12,605 |
|
| Accounts receivable |
|
|
2,529 |
|
|
|
2,024 |
|
| Prepaid expenses and other current assets |
|
|
1,464 |
|
|
|
1,746 |
|
| Total current assets |
|
|
17,038 |
|
|
|
16,375 |
|
| Media library, software and equipment, net |
|
|
40,293 |
|
|
|
39,231 |
|
| Right-of-use lease asset, net |
|
|
8,437 |
|
|
|
8,622 |
|
| Real estate, investment, and other assets |
|
|
29,113 |
|
|
|
28,500 |
|
| Goodwill |
|
|
17,289 |
|
|
|
17,289 |
|
| Total assets |
|
$ |
112,170 |
|
|
$ |
110,017 |
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable, accrued and other liabilities |
|
$ |
8,228 |
|
|
$ |
8,947 |
|
| Deferred revenue |
|
|
14,415 |
|
|
|
12,376 |
|
| Total current liabilities |
|
|
22,643 |
|
|
|
21,323 |
|
| Long-term mortgage, net |
|
|
6,218 |
|
|
|
6,250 |
|
| Long-term lease liability |
|
|
7,775 |
|
|
|
7,952 |
|
| Deferred taxes |
|
|
257 |
|
|
|
257 |
|
| Total liabilities |
|
|
36,893 |
|
|
|
35,782 |
|
| Total equity |
|
|
75,277 |
|
|
|
74,235 |
|
| Total liabilities and equity |
|
$ |
112,170 |
|
|
$ |
110,017 |
|
