Gaiam plans to take TV division public
Last Updated: 15:57 March 18, 2014
The news came as part of the Louisville-based company's 2013 year-end earnings report.
Gaiam (Nasdaq: GAIA) reported net income for the year of $401,000 on revenue of $155.5 million, the revenue figure marking a 22 percent increase compared with 2012. Diluted earnings per share were 2 cents after a loss of 57 cents per share a year earlier.
Gaiam TV streams videos of yoga and fitness, health and longevity, and spiritual growth, among other topics, to its subscribers in more than 100 countries. Gaiam TV generated 2013 revenue of about $5.7 million, a figure the company expects to "at least double" in 2014.
The earnings release noted that Gaiam could at any time before the spinoff is complete abandon or change the terms of the transaction.
"Gaiam TV continues to gain traction with consumers seeking quality conscious media content," Gaiam's chairman Jirka Rysavy said in the earnings release. "The separation of Gaiam TV will allow the Gaiam brand to focus on yoga, fitness and well-being. At the same time, our board of directors believes that the business and shareholders will benefit from Gaiam TV operating as a standalone business."
In October, Gaiam sold its nonbranded entertainment media distribution business, GVE, to Los Angeles-based film distribution company Cinedigm Corp. for $51.5 million. Also in the fourth quarter, Gaiam discontinued its direct response television (DRTV) marketing operations.
In 2008, the company spun off its solar division, Gaiam Energy Tech, into a separate publicly-traded company. That company, Real Goods Solar, has since been rebranded as RGS Energy. In September, Gaiam sold $2 million worth of shares in RGS Energy.
Along with year-end results, Gaiam also released its fourth-quarter earnings. Revenue was $50.8 million for the quarter ended Dec. 31, up from $45.6 million for the same period a year earlier. The company did, however suffer a net loss of $7.3 million in the fourth quarter, or about 31 cents per share.
"The 2013 full year organic revenue growth of 22 percent reflects the successful execution of our strategic operating priority to focus our resources on delivering consistent growth in our core Gaiam-branded businesses, which include yoga, fitness and wellbeing," Gaiam chief executive Lynn Powers said in the earnings release.
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