Buoyed by building sale, Gaia posts $6.3M net income for third quarter

LOUISVILLE — Sale of half of its corporate campus in Louisville led Gaia Inc. (Nasdaq: GAIA) to post a $6.3 million profit for the third quarter, a significant improvement from a $4.1 million loss in the same period a year ago.

Gaia sold half of its corporate campus at 833 W. South Boulder Road for $13.1 million in September. Excluding gain from the building sale, the company recorded a profit of $200,000 for the quarter. Gaia provides video-streaming services for the conscious-media segment.

Earnings per share counting gain on the building sale amounted to 33 cents per share, and 1 cent per share excluding the gain. That compares with a loss of 23 cents per share a year ago.

Third-quarter revenue increased 28% to $17.5 million, compared with $13.7 million the year prior.

Gaia chief financial officer Paul Tarell said in an earnings conference call, as reported on Seeking Alpha, that the company added 33,900 members in the third quarter, reaching 697,300 total members. The company reported a membership increase of 117,000 for the 12 months ended Sept. 30.

“The quarter marks the final milestones in our transition to generating positive earnings and cash flow, while maintaining the revenue growth rate above 20%,” Tarell said.

CEO Jirka Rysavy said the company had “achieved all targets as planned and communicated 18 months ago, and we expect the fourth quarter to be another one with positive earnings and free cash flow and another 30,000 member jump in our base.”

© 2020 BizWest Media LLC

on Facebook on LinkedIn