EXHIBIT 99.1

 

Gaia Reports Third Quarter 2021 Results

Revenues up 17% with 20% EBITDA Margin

BOULDER, CO, November 1, 2021 — Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the third quarter ended September 30, 2021.

Highlights

 

22% revenue growth year to date

 

Q3 EBITDA of $4.0 million, with EBITDA margin of 20%

 

Fifth straight quarter of positive earnings and cash flow

 

“The third quarter of 2021 marks another quarter of disciplined execution against our plan to generate net income and cash flows while driving revenue and member growth,” said Paul Tarell, Gaia’s CFO. “Now that we are consistently generating positive net income and cash flows from operations, we are focused on growing both average revenue per member and the overall member base. Early traction in our efforts to promote our $299 premium subscription tier to current and prospective members has been promising.”

Third Quarter 2021 Financial Results

Revenues increased 17% to $20.4 million from $17.5 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 790,500 as of September 30, 2021.

Gross profit in the third quarter increased to $17.8 million compared to $15.3 million in the year-ago quarter. Gross margin was flat at 87.1%.

Total operating expenses were $17.1 million or 84% of revenues compared to $14.9 million or 85% of revenues in the year-ago quarter. This reflects the stabilization of Gaia’s cost structure since turning profitable in the third quarter of 2020. EBITDA improved to $4.0 million, reflecting an EBITDA margin of 20%.

Net income increased to $0.6 million or $0.03 per share compared to $0.2 million or $0.01 per share in the year ago quarter, excluding the $6.1 million gain on the sale of a portion of Gaia’s corporate campus in September 2020. Including the gain, net income in the third quarter of 2020 was $6.3 million or $0.32 per share.

Cash flows from operations improved 55% to $5.1 million from $3.3 million in the year-ago quarter. Gaia’s cash balance as of September 30, 2021, was $14.4 million, an increase of $1.8 million since December 31, 2020.

Year to Date 2021 Financial Results

Revenues for the nine months ended September 30, 2021 increased 22% to $58.7 million from $48.2 million.

Gross profit for the nine months ended September 30, 2021 increased to $51.2 million compared to $42.0 million. Gross margin improved 10 basis points to 87.1%.

Total operating expenses were $49.3 million or 84% of revenues for the nine months ended September 30, 2021 compared to $47.1 million or 98% of revenues in the prior period. EBITDA improved to $11.5 million, which reflects a 72% flow through of the incremental revenues generated in the current period compared to the prior period.

1

 


 

 

Net income increased to $1.6 million or $0.08 per share for the nine months ended September 30, 2021 compared to $0.2 million or $0.01 per share in the prior period.

Cash flows from operations improved 103% to $14.5 million during the nine months ended September 30, 2021 compared to $7.2 million in the prior period.

Conference Call

Date: Monday, November 1, 2021

Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)

Toll-free dial-in number: 1-866-248-8441

International dial-in number: 1-323-289-6576

Conference ID: 6551369

 

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 November 15, 2021.

 

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 6551369

 

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

 

 

2


 

 

 

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)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(unaudited)

 

 

(unaudited)

 

Revenues, net

 

$

20,405

 

 

$

17,537

 

 

$

58,744

 

 

$

48,201

 

Cost of revenues

 

 

2,626

 

 

 

2,264

 

 

 

7,573

 

 

 

6,248

 

Gross profit

 

 

17,779

 

 

 

15,273

 

 

 

51,171

 

 

 

41,953

 

Gross profit margin

 

 

87.1

%

 

 

87.1

%

 

 

87.1

%

 

 

87.0

%

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and operating

 

 

15,544

 

 

 

13,479

 

 

 

44,820

 

 

 

42,354

 

Corporate, general and administration

 

 

1,509

 

 

 

1,426

 

 

 

4,506

 

 

 

4,716

 

Total operating expenses

 

 

17,053

 

 

 

14,905

 

 

 

49,326

 

 

 

47,070

 

Income (loss) from operations

 

 

726

 

 

 

368

 

 

 

1,845

 

 

 

(5,117

)

Interest and other income (expense), net

 

 

(79

)

 

 

5,946

 

 

 

(197

)

 

 

5,395

 

Income before income taxes

 

 

647

 

 

 

6,314

 

 

 

1,648

 

 

 

278

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

69

 

Net income

 

$

647

 

 

$

6,314

 

 

$

1,648

 

 

$

209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.33

 

 

$

0.09

 

 

$

0.01

 

Diluted

 

$

0.03

 

 

$

0.32

 

 

$

0.08

 

 

$

0.01

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,318

 

 

 

19,183

 

 

 

19,262

 

 

 

18,834

 

Diluted

 

 

19,812

 

 

 

19,737

 

 

 

19,787

 

 

 

19,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA*

 

$

4,036

 

 

$

3,372

 

 

$

11,486

 

 

$

3,909

 

 

* See definition and reconciliation below.

3


 

 

GAIA, INC.

Summary of Cash Flows

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(unaudited)

 

 

(unaudited)

 

Net cash provided by (used in):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

5,146

 

 

$

3,333

 

 

$

14,586

 

 

$

7,197

 

Investing activities

 

 

(4,376

)

 

 

9,862

 

 

 

(13,355

)

 

 

2,781

 

Financing activities

 

 

(81

)

 

 

(12,932

)

 

 

592

 

 

 

(12,751

)

Net change in cash

 

$

689

 

 

$

263

 

 

$

1,823

 

 

$

(2,773

)

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(unaudited)

 

 

(unaudited)

 

Net income

 

$

647

 

 

$

6,314

 

 

$

1,648

 

 

$

209

 

Interest expense, net

 

 

79

 

 

 

179

 

 

 

197

 

 

 

730

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

69

 

Gain on sale of real estate

 

 

 

 

 

(6,125

)

 

 

 

 

 

(6,125

)

Depreciation and amortization expense

 

 

3,310

 

 

 

3,004

 

 

 

9,641

 

 

 

9,026

 

EBITDA

 

 

4,036

 

 

 

3,372

 

 

 

11,486

 

 

 

3,909

 

Share-based compensation expense

 

 

533

 

 

 

336

 

 

 

1,236

 

 

 

1,864

 

Adjusted EBITDA

 

$

4,569

 

 

$

3,708

 

 

$

12,722

 

 

$

5,773

 

EBITDA represents net income 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 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.


4


 

 

 

GAIA, INC.

Condensed Consolidated Balance Sheets

 

 

September 30,

 

 

December 31,

 

(in thousands, except share and per share data)

 

2021

 

 

2020

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

14,428

 

 

$

12,605

 

Accounts receivable

 

 

2,589

 

 

 

2,024

 

Prepaid expenses and other current assets

 

 

1,863

 

 

 

1,746

 

Total current assets

 

 

18,880

 

 

 

16,375

 

Media library, software and equipment, net

 

 

42,246

 

 

 

39,231

 

Right-of-use lease asset, net

 

 

8,061

 

 

 

8,622

 

Real estate, investment, and other assets, net

 

 

29,199

 

 

 

28,500

 

Goodwill

 

 

17,289

 

 

 

17,289

 

Total assets

 

$

115,675

 

 

$

110,017

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable, accrued and other liabilities

 

$

9,855

 

 

$

8,947

 

Deferred revenue

 

 

14,130

 

 

 

12,376

 

Total current liabilities

 

 

23,985

 

 

 

21,323

 

Long-term mortgage, net

 

 

6,146

 

 

 

6,250

 

Long-term lease liability

 

 

7,416

 

 

 

7,952

 

Deferred taxes

 

 

257

 

 

 

257

 

Total liabilities

 

 

37,804

 

 

 

35,782

 

Total shareholders' equity

 

 

77,871

 

 

 

74,235

 

Total liabilities and shareholders' equity

 

$

115,675

 

 

$

110,017

 

 

 

 

 

5