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30.10.2003: Meldung: Gaiam Reports Third Quarter 2003 Results
Gaiam, Inc. announced results for its third quarter ended September 30, 2003. Gaiam is a multi-channel lifestyle company catering to customers who value personal development, healthy living and renewable energy.The company will host a conference call today, October 29, 2003, at 2:30 p.m. M.S.T. (4:30 p.m. E.S.T.) to review its results for the third quarter 2003.
For the third quarter ended September 30, 2003, Gaiam reported sales of $23.5 million, a decline of 9% from $25.8 million in the quarter ended September 30, 2002, primarily due to lower sales to retailers. Gaiam reported an operating income of $16 thousand for the third quarter of 2003 compared to operating income of $2.2 million during the same period of 2002. Net loss for the third quarter was $201 thousand compared to net income of $1.4 million during the same period of 2002. For the third quarter ended September 30, 2003, the Company reported earnings (loss) per share of ($0.01) compared to $0.10 for the third quarter ended September 30, 2002.
For the nine months ended September 30, 2003, Gaiam reported sales of $67.3 million compared to $74.1 million for the same period in 2002, and posted an operating loss of $1.4 million for the first nine months of 2003, compared to $5.1 million operating income for the nine months ended September 30, 2002. The net loss for the nine months ended September 30, 2003 was $1.3 million, or $0.09 per share, compared to net income of $3.1 million for the same period in 2002, or $0.22 per share.
Gaiam ended the first nine months with $7.9 million in cash, no debt and availability of $15 million of its line of credit. For the first nine months of 2003, Gaiam generated $1.6 million cash contribution from its operations, compared to cash use of $6.0 million in the first nine months of 2002.
"We were still disappointed with our results even though we did see some positive trends, especially in the month of September," said Jirka Rysavy, Chairman and Chief Executive Officer. "The negative internal growth rates subsided and is continuing to improve. We expect the internal growth rate to become neutral in the month of December and increase to positive 5-10% growth in the following quarter. In October, we finished the system consolidation in which third party distribution to our retailers was transferred to our own distribution facility in Ohio. We also plan to move support for all our accounts to our Ohio facility by the end of the year, which, as previously announced, is expected to bring significant savings."
"As forecasted, we continued to see negative growth in our business channel during the third quarter. Our sales to retailers remained soft especially in the department store, distributor, and mall based specialty store channels," said Lynn Powers, President. "Beginning in September, we saw an up tick in business including a store-within-store roll out to all Barnes and Noble stores, a test of our Healing Arts line in Kroger and a launch of our kids line exclusively with Target. We doubled our sales force, added new product categories, segregated our products by channel, reset store floor plans, consolidated our operations into our Colorado headquarters, restructured our management organization and reduced our labor costs. We are in the process of finalizing our distribution system consolidation and moving the support for our remaining accounts to our Cincinnati distribution facility. These benefits are expected be fully realized by January 2004."
In the fourth quarter, Gaiam expects a significant sequential increase in its revenues, which are anticipated to reach or be slightly above its last year"s fourth quarter revenue of $37.3 million. The bottom line will return to profitability, but it is not expected to be sufficient to offset the current year-to-date earnings deficit. Additional guidance may be given on the conference call.
This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as "expect," "believe," "will," "should" or comparable terminology or by discussions of strategy. While the Company believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, introduction of the Company"s new products and services, the successful completion and integration of acquisitions, the possibility of negative economic conditions and other risks and uncertainties included in the Company"s filings with the Securities and Exchange Commission. The Company assumes no duty to update any forward-looking statements.
A replay of the conference call will begin 1 hour after the end of the call and will continue until Friday, October 31st, at 5:00 p.m. E.S.T.
Replay number: (888) 568-0137
For further information, please contact:
Janet Mathews
Chief Financial Officer of Gaiam, Inc.
+1-303-222-3663
http://www.gaiam.com
Corporate Headquarters:
360 Interlocken Blvd.
Broomfield, Colorado 80021
Phone: +1 303-222-3600
Fax: +1 303-222-3700
Gaiam, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended Three months ended
September 30, 2003 September 30, 2002
Net Revenue $23,533 100.0% $25,794 100.0%
Cost of goods sold 11,263 47.9% 10,764 41.7%
Gross profit 12,270 52.1% 15,030 58.3%
Operating expenses 12,254 52.0% 12,784 49.6%
Income (loss) from
operations 16 0.1% 2,246 8.7%
Interest (net) and
other (93) (0.4%) (120) (0.5%)
Profit (loss) before
income taxes (77) (0.3%) 2,126 8.2%
Income tax expense
(benefit) (44) (0.2%) 755 2.9%
Income (loss) before
minority interest (33) (0.1%) 1,371 5.3%
Minority interest
income (expense) (168) (0.7%) 24 0.1%
Net income (loss) $(201) (0.8%) $1,395 5.4%
Shares outstanding:
Basic 14,601,121 14,033,066
Diluted 14,601,121 14,376,074
Earnings (loss)
per share:
Basic $(0.01) $0.10
Diluted $(0.01) $0.10
Gaiam, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Nine months ended Nine months ended
September 30, 2003 September 30, 2002
Net Revenue $67,254 100.0% $74,145 100.0%
Cost of goods sold 31,547 46.9% 30,664 41.4%
Gross profit 35,707 53.1% 43,481 58.6%
Operating expenses 37,080 55.1% 38,383 51.8%
Income (loss) from
operations (1,373) (2.0%) 5,098 6.8%
Interest (net)
and other (243) (0.4%) (259) (0.3%)
Profit (loss) before
income taxes (1,616) (2.4%) 4,839 6.5%
Income tax expense
(benefit) (648) (1.0%) 1,718 2.3%
Income (loss) before
minority interest (968) (1.4%) 3,121 4.2%
Minority interest
income (expense) (345) (0.5%) 13 0.0%
Net income (loss) $(1,313) (1.9%) $3,134 4.2%
Shares outstanding:
Basic 14,591,428 14,020,392
Diluted 14,591,428 14,458,952
Earnings (loss)
per share:
Basic $(0.09) $0.22
Diluted $(0.09) $0.22
GAIAM, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
September 30,
Assets 2003
(Unaudited)
Current assets:
Cash and cash equivalents $ 7,852,489
Accounts receivable, net 15,866,172
Accounts and notes receivable, other 964,076
Inventory, less allowances 16,820,313
Deferred advertising costs 3,232,035
Other current assets 2,123,408
Total current assets 46,858,493
Property and equipment, net 10,155,773
Investments 7,865,192
Capitalized production costs, net 6,154,916
Video library, net 5,224,010
Goodwill, net 10,288,251
Deferred tax assets 2,514,257
Other assets 616,693
Total assets $89,677,585
Liabilities and stockholders" equity
Current liabilities:
Accounts payable $10,802,010
Accrued liabilities 4,399,734
Income taxes payable 29,982
Capital lease obligations, current 118,256
Total current liabilities 15,349,982
Capital lease obligations, long-term 9,349
Deferred tax liability 943,286
Other liabilities 1,962,000
Total liabilities 18,264,617
Minority interest 2,820,465
Stockholders" equity:
Class A common stock, $.0001 par value,
150,000,000 shares authorized, 9,201,296
and 9,134,098 shares issued and
outstanding at September 30, 2003 and
December 31, 2002, respectively 920
Class B common stock, $.0001 par value,
50,000,000 shares authorized, 5,400,000
issued and outstanding at
September 30, 2003 and
December 31, 2002, respectively 540
Additional paid-in capital 53,823,504
Deferred compensation (89,865)
Retained earnings 14,857,404
Total stockholders" equity 68,592,503
Total liabilities and stockholders"
equity $89,677,585
Gaiam Inc.: ISIN US36268Q1031 / WKN 929048
For the third quarter ended September 30, 2003, Gaiam reported sales of $23.5 million, a decline of 9% from $25.8 million in the quarter ended September 30, 2002, primarily due to lower sales to retailers. Gaiam reported an operating income of $16 thousand for the third quarter of 2003 compared to operating income of $2.2 million during the same period of 2002. Net loss for the third quarter was $201 thousand compared to net income of $1.4 million during the same period of 2002. For the third quarter ended September 30, 2003, the Company reported earnings (loss) per share of ($0.01) compared to $0.10 for the third quarter ended September 30, 2002.
For the nine months ended September 30, 2003, Gaiam reported sales of $67.3 million compared to $74.1 million for the same period in 2002, and posted an operating loss of $1.4 million for the first nine months of 2003, compared to $5.1 million operating income for the nine months ended September 30, 2002. The net loss for the nine months ended September 30, 2003 was $1.3 million, or $0.09 per share, compared to net income of $3.1 million for the same period in 2002, or $0.22 per share.
Gaiam ended the first nine months with $7.9 million in cash, no debt and availability of $15 million of its line of credit. For the first nine months of 2003, Gaiam generated $1.6 million cash contribution from its operations, compared to cash use of $6.0 million in the first nine months of 2002.
"We were still disappointed with our results even though we did see some positive trends, especially in the month of September," said Jirka Rysavy, Chairman and Chief Executive Officer. "The negative internal growth rates subsided and is continuing to improve. We expect the internal growth rate to become neutral in the month of December and increase to positive 5-10% growth in the following quarter. In October, we finished the system consolidation in which third party distribution to our retailers was transferred to our own distribution facility in Ohio. We also plan to move support for all our accounts to our Ohio facility by the end of the year, which, as previously announced, is expected to bring significant savings."
"As forecasted, we continued to see negative growth in our business channel during the third quarter. Our sales to retailers remained soft especially in the department store, distributor, and mall based specialty store channels," said Lynn Powers, President. "Beginning in September, we saw an up tick in business including a store-within-store roll out to all Barnes and Noble stores, a test of our Healing Arts line in Kroger and a launch of our kids line exclusively with Target. We doubled our sales force, added new product categories, segregated our products by channel, reset store floor plans, consolidated our operations into our Colorado headquarters, restructured our management organization and reduced our labor costs. We are in the process of finalizing our distribution system consolidation and moving the support for our remaining accounts to our Cincinnati distribution facility. These benefits are expected be fully realized by January 2004."
In the fourth quarter, Gaiam expects a significant sequential increase in its revenues, which are anticipated to reach or be slightly above its last year"s fourth quarter revenue of $37.3 million. The bottom line will return to profitability, but it is not expected to be sufficient to offset the current year-to-date earnings deficit. Additional guidance may be given on the conference call.
This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as "expect," "believe," "will," "should" or comparable terminology or by discussions of strategy. While the Company believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, introduction of the Company"s new products and services, the successful completion and integration of acquisitions, the possibility of negative economic conditions and other risks and uncertainties included in the Company"s filings with the Securities and Exchange Commission. The Company assumes no duty to update any forward-looking statements.
A replay of the conference call will begin 1 hour after the end of the call and will continue until Friday, October 31st, at 5:00 p.m. E.S.T.
Replay number: (888) 568-0137
For further information, please contact:
Janet Mathews
Chief Financial Officer of Gaiam, Inc.
+1-303-222-3663
http://www.gaiam.com
Corporate Headquarters:
360 Interlocken Blvd.
Broomfield, Colorado 80021
Phone: +1 303-222-3600
Fax: +1 303-222-3700
Gaiam, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended Three months ended
September 30, 2003 September 30, 2002
Net Revenue $23,533 100.0% $25,794 100.0%
Cost of goods sold 11,263 47.9% 10,764 41.7%
Gross profit 12,270 52.1% 15,030 58.3%
Operating expenses 12,254 52.0% 12,784 49.6%
Income (loss) from
operations 16 0.1% 2,246 8.7%
Interest (net) and
other (93) (0.4%) (120) (0.5%)
Profit (loss) before
income taxes (77) (0.3%) 2,126 8.2%
Income tax expense
(benefit) (44) (0.2%) 755 2.9%
Income (loss) before
minority interest (33) (0.1%) 1,371 5.3%
Minority interest
income (expense) (168) (0.7%) 24 0.1%
Net income (loss) $(201) (0.8%) $1,395 5.4%
Shares outstanding:
Basic 14,601,121 14,033,066
Diluted 14,601,121 14,376,074
Earnings (loss)
per share:
Basic $(0.01) $0.10
Diluted $(0.01) $0.10
Gaiam, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Nine months ended Nine months ended
September 30, 2003 September 30, 2002
Net Revenue $67,254 100.0% $74,145 100.0%
Cost of goods sold 31,547 46.9% 30,664 41.4%
Gross profit 35,707 53.1% 43,481 58.6%
Operating expenses 37,080 55.1% 38,383 51.8%
Income (loss) from
operations (1,373) (2.0%) 5,098 6.8%
Interest (net)
and other (243) (0.4%) (259) (0.3%)
Profit (loss) before
income taxes (1,616) (2.4%) 4,839 6.5%
Income tax expense
(benefit) (648) (1.0%) 1,718 2.3%
Income (loss) before
minority interest (968) (1.4%) 3,121 4.2%
Minority interest
income (expense) (345) (0.5%) 13 0.0%
Net income (loss) $(1,313) (1.9%) $3,134 4.2%
Shares outstanding:
Basic 14,591,428 14,020,392
Diluted 14,591,428 14,458,952
Earnings (loss)
per share:
Basic $(0.09) $0.22
Diluted $(0.09) $0.22
GAIAM, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
September 30,
Assets 2003
(Unaudited)
Current assets:
Cash and cash equivalents $ 7,852,489
Accounts receivable, net 15,866,172
Accounts and notes receivable, other 964,076
Inventory, less allowances 16,820,313
Deferred advertising costs 3,232,035
Other current assets 2,123,408
Total current assets 46,858,493
Property and equipment, net 10,155,773
Investments 7,865,192
Capitalized production costs, net 6,154,916
Video library, net 5,224,010
Goodwill, net 10,288,251
Deferred tax assets 2,514,257
Other assets 616,693
Total assets $89,677,585
Liabilities and stockholders" equity
Current liabilities:
Accounts payable $10,802,010
Accrued liabilities 4,399,734
Income taxes payable 29,982
Capital lease obligations, current 118,256
Total current liabilities 15,349,982
Capital lease obligations, long-term 9,349
Deferred tax liability 943,286
Other liabilities 1,962,000
Total liabilities 18,264,617
Minority interest 2,820,465
Stockholders" equity:
Class A common stock, $.0001 par value,
150,000,000 shares authorized, 9,201,296
and 9,134,098 shares issued and
outstanding at September 30, 2003 and
December 31, 2002, respectively 920
Class B common stock, $.0001 par value,
50,000,000 shares authorized, 5,400,000
issued and outstanding at
September 30, 2003 and
December 31, 2002, respectively 540
Additional paid-in capital 53,823,504
Deferred compensation (89,865)
Retained earnings 14,857,404
Total stockholders" equity 68,592,503
Total liabilities and stockholders"
equity $89,677,585
Gaiam Inc.: ISIN US36268Q1031 / WKN 929048