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Gaia Reports Second Quarter 2022 Results

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Gaia, Inc.
Gaia, Inc.

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.
Investors@gaia.com

Investor Relations:
Gateway Group, Inc.
Cody Slach
(949) 574-3860
GAIA@gatewayir.com

 

GAIA, INC.
Condensed Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

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.
Summary of Cash Flows

 

 

 

 

 

 

 

 

 

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.
Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

(in thousands, except share and per share data)

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

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