Eighth Consecutive Quarter of Positive Earnings and EBITDA
BOULDER, Colo., Aug. 01, 2022 (GLOBE NEWSWIRE) — Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2022.
Highlights
- Established technology independence and began operating on Gaia owned hardware
- Eighth consecutive quarter of positive earnings and EBITDA, with Q2 EBITDA margins over 20%
“The spring marked a return to the seasonal patterns we have historically seen in our new member acquisition trends,” said Paul Tarell, Gaia’s CFO. “This resulted in less quarterly member additions since the pandemic began in March of 2020. Despite this shift we continued our financial discipline by delivering strong EBITDA margins while maintaining profitability. With the completion of our 18-month project to enable technology independence and ongoing financial discipline we remain well-positioned to achieve the long-term vision of our company.”
First Quarter 2022 Financial Results
Revenues increased 7% to $20.7 million from $19.4 million in the year-ago quarter, with an ending member count of 792,000 as of June 30, 2022, compared to 770,200 as of June 30, 2021.
Gross profit in the second quarter increased to $18.0 million compared to $16.9 million in the year-ago quarter. Gross margin decreased slightly to 86.7% from 87.1% in the year ago quarter primarily as a result of increased content amortization.
Total operating expenses were $17.7 million or 85% of revenues compared to $16.2 million or 84% of revenues in the year-ago quarter.
EBITDA improved to $4.2 million compared to $3.9 million in the year ago quarter, with EBITDA margin over 20%.
Net income from continuing operations was $0.1 million or $0.01 per share compared to $0.6 million or $0.03 per share in the year ago quarter. The slight decline reflects the incremental intangible asset amortization and operating expenses related to the integration of Yoga International, an acquisition that was completed at the end of December 2021.
Cash flows from operations was $2.5 million for the second quarter. Gaia’s cash balance as of June 30, 2022, was $6.2 million.
Conference Call
Date: Monday, August 1, 2022
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-888-220-8451
International dial-in number: 1-323-794-2588
Conference ID: 2614556
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 Group 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 August 15, 2022.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 2614556
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—in four languages (English, Spanish, French and German) to its members in 185 countries. Gaia’s library includes over 10,000 titles, 80% of which is exclusive to Gaia, and approximately 75% of viewership is 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.
Investor Relations:
Gateway Group, Inc.
Cody Slach
(949) 574-3860
GAIA, INC.
|
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For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
(in thousands, except per share data) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
| Revenues, net | $ | 20,720 | $ | 19,443 | $ | 42,551 | $ | 38,339 | ||||||||
| Cost of revenues | 2,759 | 2,509 | 5,664 | 4,947 | ||||||||||||
| Gross profit | 17,961 | 16,934 | 36,887 | 33,392 | ||||||||||||
| Gross profit margin | 86.7 | % | 87.1 | % | 86.7 | % | 87.1 | % | ||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 15,869 | 14,738 | 32,654 | 29,276 | ||||||||||||
| Corporate, general and administration | 1,794 | 1,501 | 3,579 | 2,997 | ||||||||||||
| Acquisition costs | — | — | 49 | — | ||||||||||||
| Total operating expenses | 17,663 | 16,239 | 36,282 | 32,273 | ||||||||||||
| Income from operations | 298 | 695 | 605 | 1,119 | ||||||||||||
| Interest and other expense, net | (50 | ) | (52 | ) | (110 | ) | (118 | ) | ||||||||
| Income before income taxes | 248 | 643 | 495 | 1,001 | ||||||||||||
| Provision for (benefit from) income taxes | — | — | — | — | ||||||||||||
| Income from continuing operations | 248 | 643 | 495 | 1,001 | ||||||||||||
| Loss from discontinued operations | (132 | ) | — | (293 | ) | — | ||||||||||
| Net income | $ | 116 | $ | 643 | $ | 202 | $ | 1,001 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | 0.05 | ||||||||
| Discontinued operations | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
| Basic earnings per share | $ | — | $ | 0.03 | $ | 0.01 | $ | 0.05 | ||||||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | 0.05 | ||||||||
| Discontinued operations | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
| Diluted earnings per share | $ | — | $ | 0.03 | $ | 0.01 | $ | 0.05 | ||||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 20,788 | 19,268 | 20,627 | 19,235 | ||||||||||||
| Diluted | 20,795 | 19,810 | 20,795 | 19,786 | ||||||||||||
| EBITDA* | $ | 4,163 | $ | 3,927 | $ | 8,216 | $ | 7,450 | ||||||||
* See definition and reconciliation below.
GAIA, INC.
|
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For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
(in thousands) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities – continuing operations | $ | 2,523 | $ | 4,252 | $ | 6,687 | $ | 9,440 | ||||||||
| Operating activities – discontinued operations | 454 | — | 293 | — | ||||||||||||
| Investing activities | (4,591 | ) | (4,205 | ) | (10,419 | ) | (8,979 | ) | ||||||||
| Financing activities | (3 | ) | 647 | (49 | ) | 673 | ||||||||||
| Net change in cash | $ | (1,617 | ) | $ | 694 | $ | (3,488 | ) | $ | 1,134 | ||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||||||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
(in thousands) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
| Net income | $ | 116 | $ | 643 | $ | 202 | $ | 1,001 | ||||||||
| Interest expense, net | 50 | 52 | 110 | 118 | ||||||||||||
| Provision for (benefit from) income taxes | — | — | — | — | ||||||||||||
| Depreciation and amortization expense | 3,997 | 3,232 | 7,904 | 6,331 | ||||||||||||
| EBITDA | 4,163 | 3,927 | 8,216 | 7,450 | ||||||||||||
| Acquisition costs | — | — | 49 | — | ||||||||||||
| Share-based compensation expense | 389 | 90 | 929 | 703 | ||||||||||||
| Discontinued operations | (132 | ) | — | (293 | ) | — | ||||||||||
| Adjusted EBITDA | $ | 4,420 | $ | 4,017 | $ | 8,901 | $ | 8,153 | ||||||||
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 acquisition costs, share-based compensation expense, and the results of discontinued operations. 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.
GAIA, INC.
|
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June 30, |
December 31, |
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(in thousands, except share and per share data) |
2022 |
2021 |
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ASSETS |
||||||||
| Current assets: | ||||||||
| Cash | $ | 6,195 | $ | 10,269 | ||||
| Accounts receivable | 2,972 | 2,728 | ||||||
| Prepaid expenses and other current assets | 2,278 | 1,986 | ||||||
| Total current assets | 11,445 | 14,983 | ||||||
| Media library, software and equipment, net | 52,618 | 50,558 | ||||||
| Right-of-use lease asset, net | 7,486 | 7,871 | ||||||
| Real estate, investment and other assets, net | 31,002 | 31,394 | ||||||
| Goodwill | 28,870 | 28,870 | ||||||
| Total assets | $ | 131,421 | $ | 133,676 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 11,604 | $ | 14,962 | ||||
| Deferred revenue | 15,218 | 14,847 | ||||||
| Total current liabilities | 26,822 | 29,809 | ||||||
| Long-term mortgage, net | 6,035 | 6,109 | ||||||
| Long-term lease liability | 6,865 | 7,234 | ||||||
| Deferred taxes | 309 | 309 | ||||||
| Total liabilities | 40,031 | 43,461 | ||||||
| Total shareholders’ equity | 91,390 | 90,215 | ||||||
| Total liabilities and shareholders’ equity | $ | 131,421 | $ | 133,676 | ||||
