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Gaiam Inc. (GAIA) filed Quarterly Report for the period ended 2011-09-30.
Gaiam Inc. has a market cap of $98.1 million; its shares were traded at around $4.21 with and P/S ratio of 0.4. The dividend yield of Gaiam Inc. stocks is 3.5%.
This is the annual revenues and earnings per share of GAIA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GAIA.
Highlight of Business Operations:
Net revenue. Net revenue decreased $12.1 million, or 6.3%, to $178.9 million during the nine months ended September 30, 2011 from $190.9 million during the nine months ended September 30, 2010. Net revenue in our business segment decreased $7.9 million, or 12.9%, to $53.6 million during the nine months ended September 30, 2011 from $61.5 million during the nine months ended September 30, 2010, primarily due to low in-stock levels at our largest retail customer which were not fully resolved until late May, an ineffective third party fulfillment program with our second largest retail customer that we abandoned and returned back to a direct relationship by the end of July, fewer As Seen On TV products offered at our retailers, and the absence of sales to Borders resulting from its bankruptcy during the second quarter of 2011. Net revenue in our direct to consumer segment decreased $16.0 million to $56.3 million during the nine months ended September 30, 2011 from $72.3 million during the nine months ended September 30, 2010, primarily attributable to a $16.9 million sales declines resulting from our previously disclosed plans to lower spending for direct response television advertising. Net revenue in our solar segment increased $11.8 million to $69.0 million during the nine months ended September 30, 2011 from $57.2 million during the nine months ended September 30, 2010. This increase was attributable to the acquisition of Alteris.Cost of goods sold. Cost of goods sold increased $1.8 million, or 1.9%, to $98.5 million during the nine months ended September 30, 2011 from $96.6 million during the nine months ended September 30, 2010. As a percentage of net revenue, cost of goods sold increased to 55.1% during the nine months ended September 30, 2011 from 50.6% during the nine months ended September 30, 2010. Cost of goods sold in our business segment decreased $3.6 million, or 11.4%, to $27.9 million during the nine months ended September 30, 2011 from $31.5 million during the nine months ended September 30, 2010 and, as a percentage of net revenue, increased to 52.0% during the nine months ended September 30, 2011 from 51.3% during the nine months ended September 30, 2010, primarily due to a shift in product sales mix. Cost of goods sold in our direct to consumer segment decreased $3.4 million, or 14.6%, to $19.9 million during the nine months ended September 30, 2011 from $23.3 million during the nine months ended September 30, 2010 and, as a percentage of net revenue, increased to 35.3% during the nine months ended September 30, 2011 from 32.2% during the nine months ended September 30, 2010, primarily reflecting increased revenues in our higher cost ecommerce business, partially offset by reduced revenues in our lower cost direct response television business. Cost of goods sold in our solar segment increased $8.8 million, or 21.1%, to $50.7 million during the nine months ended September 30, 2011 from $41.9 million during the nine months ended September 30, 2010 and, as a percentage of net revenue, increased slightly to 73.5% during the nine months ended September 30, 2011 from 73.3% during the nine months ended September 30, 2010.
Selling and operating expenses. Selling and operating expenses decreased $6.7 million, or 7.8%, to $79.2 million during the nine months ended September 30, 2011 from $85.9 million during the nine months ended September 30, 2010. As a percentage of net revenue, selling and operating expenses decreased to 44.3% during the nine months ended September 30, 2011 from 45.0% during the nine months ended September 30, 2010. This decrease is primarily a result of reducing direct response television advertising and catalog circulation, partially offset by an ineffective third party fulfillment program with our second largest retail customer that we abandoned and returned back to a more profitable direct relationship by the end of July, costs to develop and launch our GaiamTV and digital delivery strategies, inclusion of Alteris, and the opening of a beta retail store.
Corporate, general and administration expenses. Corporate, general and administration expenses increased $0.2 million, or 2.0%, to $9.1 million during the nine months ended September 30, 2011 from $9.0 million during the nine months ended September 30, 2010. As of percentage of net revenue, corporate, general and administration expenses increased to 5.1% during the nine months ended September 30, 2011 from 4.7% during the nine months ended September 30, 2010 reflecting the cost of Alteris’ infrastructure and the addition of senior management positions in our solar segment.
Operating activities. Our operating activities provided net cash of $0.4 million and $2.0 million during the nine months ended September 30, 2011 and 2010, respectively. Our net cash provided by operating activities during the nine months ended September 30, 2011 was primarily attributable to decreased accounts receivable of $17.2 million, noncash adjustment to net loss of $1.7 million, and increased deferred revenue and other current liabilities of $0.7 million, partially offset by decreased accounts payable and accrued liabilities of $7.3 million, net loss of $7.1 million, and increased other current assets, inventory, and deferred advertising costs of $1.8 million, $1.7 million, and $1.3 million, respectively. Our net cash provided by operating activities during the nine months ended September 30, 2010 was primarily attributable to decreased accounts receivable of $9.3 million, noncash adjustments to net income of $5.6 million, and net income of $0.5 million, partially offset by decreased accounts payable of $3.8 million, reduced accrued liabilities of $3.5 million, increased inventory of $3.1 million and increased deferred advertising costs and other current assets of $3.1 million. The reduction in accounts payable reflects payments for inventory purchases.
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