Attached files
| file | filename |
|---|---|
| 8-K - 8-K - GAIA, INC | d176524d8k.htm |
| EX-2.1 - EX-2.1 - GAIA, INC | d176524dex21.htm |
| EX-99.1 - EX-99.1 - GAIA, INC | d176524dex991.htm |
| EX-99.2 - EX-99.2 - GAIA, INC | d176524dex992.htm |
Exhibit 99.3
Unaudited Pro Forma Condensed Consolidated Financial Information
Gaiam, Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Quarter Ending March 31, 2016
(in thousands, except per share data)
| Gaiam Historical Financial Statements |
Less: Natural Habitat Historical Financial Statements (a)(c) |
Pro Forma Adjustments (Disposition of Natural Habitat) |
Notes | Pro Forma Results (Adjusted for Disposition of Natural Habitat) |
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| Net revenues |
$ | 35,327 | $ | 9,585 | $ | — | $ | 25,742 | ||||||||||
| Cost of goods sold |
18,937 | 6,312 | — | 12,625 | ||||||||||||||
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| Gross profit |
16,390 | 3,273 | — | 13,117 | ||||||||||||||
| Selling, general, and administrative |
24,593 | 4,209 | 3 | (b) | 20,387 | |||||||||||||
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| Loss from operations |
(8,203 | ) | (936 | ) | (3 | ) | (7,270 | ) | ||||||||||
| Interest and other income (expense) |
509 | 944 | — | (435 | ) | |||||||||||||
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| (Loss) income before income taxes |
(7,694 | ) | 8 | (3 | ) | (7,705 | ) | |||||||||||
| Income tax (benefit) expense |
(9 | ) | 1 | — | (10 | ) | ||||||||||||
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| Net (loss) income from continuing operations |
(7,685 | ) | 7 | (3 | ) | (7,695 | ) | |||||||||||
| Net loss attributable to noncontrolling interest |
61 | 47 | — | 14 | ||||||||||||||
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| Net (loss) income from continuing operations attributable to Gaiam, Inc. |
$ | (7,624 | ) | $ | 54 | $ | (3 | ) | $ | (7,681 | ) | |||||||
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| Net loss from continuing operations per share: |
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| Basic and Diluted |
$ | (0.31 | ) | $ | (0.31 | ) | ||||||||||||
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| Weighted-average shares outstanding: |
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| Basic and Diluted |
24,531 | 24,531 | ||||||||||||||||
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| (a) | Represents the revenues and expenses excluding certain fixed overhead costs of Natural Habitat included in Gaiam’s historical financial statements. |
| (b) | Operating expenses are increased to reverse the impact of a human resources service allocation to Natural Habitat from Gaiam. |
| (c) | Results are consolidated then adjusted for noncontrolling interests. Gaiam owned 51.4% of Natural Habitat. |
Unaudited Pro Forma Condensed Consolidated Financial Information
Gaiam, Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year Ending December 31, 2015
(in thousands, except per share data)
| Gaiam Historical Financial Statements |
Less: Natural Habitat Historical Financial Statements (a)(c) |
Pro Forma Adjustments (Disposition of Natural Habitat) |
Notes | Pro Forma Results (Adjusted for Disposition of Natural Habitat) |
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| Net revenues |
$ | 188,018 | $ | 43,514 | $ | — | $ | 144,504 | ||||||||||
| Cost of goods sold |
103,249 | 27,544 | — | 75,705 | ||||||||||||||
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| Gross profit |
84,769 | 15,970 | — | 68,799 | ||||||||||||||
| Selling, general, and administrative |
80,588 | 12,126 | 10 | (b) | 68,472 | |||||||||||||
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| Income (loss) from operations |
4,181 | 3,844 | (10 | ) | 327 | |||||||||||||
| Interest and other income (expense) |
(1,406 | ) | (1,168 | ) | — | (238 | ) | |||||||||||
| Loss from equity method investments |
(465 | ) | — | — | (465 | ) | ||||||||||||
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| Income (loss) before income taxes |
2,310 | 2,676 | (10 | ) | (376 | ) | ||||||||||||
| Income tax expense (benefit) |
1,219 | 1,154 | — | 65 | ||||||||||||||
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| Net income (loss) from continuing operations |
1,091 | 1,522 | (10 | ) | (441 | ) | ||||||||||||
| Net income attributable to noncontrolling interest |
(694 | ) | (672 | ) | — | (22 | ) | |||||||||||
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| Net income(loss) from continuing operations attributable to Gaiam, Inc. |
$ | 397 | $ | 850 | $ | (10 | ) | $ | (463 | ) | ||||||||
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| Net income (loss) from continuing operations per share: |
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| Basic and Diluted |
$ | 0.02 | $ | (0.02 | ) | |||||||||||||
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| Weighted-average shares outstanding: |
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| Basic |
24,510 | 24,510 | ||||||||||||||||
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| Diluted |
24,612 | 24,612 | ||||||||||||||||
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| (a) | Represents the revenues and expenses excluding certain fixed overhead costs of Natural Habitat included in Gaiam’s historical financial statements. |
| (b) | Operating expenses are increased to reverse the impact of a human resources service allocation to Natural Habitat from Gaiam. |
| (c) | Results are consolidated then adjusted for noncontrolling interests. Gaiam owned 51.4% of Natural Habitat. |
Unaudited Pro Forma Condensed Consolidated Financial Information
Gaiam, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of March 31, 2016
(in thousands)
| Gaiam Historical Financial Statements |
Less: Natural Habitat Historical Financial Statements (a) |
Pro Forma Adjustments (Disposition of Natural Habitat) |
Notes | Pro Forma Results (Adjusted for Disposition of Natural Habitat) |
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| Cash |
$ | 11,228 | $ | 3,951 | $ | 11,050 | (b) | $ | 18,327 | |||||||||
| Accounts receivable, net |
13,002 | 389 | — | 12,613 | ||||||||||||||
| Inventory, less allowances |
16,847 | — | — | 16,847 | ||||||||||||||
| Other current assets |
14,351 | 8,714 | 5,637 | |||||||||||||||
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| Total current assets |
55,428 | 13,054 | 11,050 | 53,424 | ||||||||||||||
| Property and equipment, net |
25,590 | 1,418 | — | 24,172 | ||||||||||||||
| Media library, net |
9,348 | — | — | 9,348 | ||||||||||||||
| Goodwill |
15,448 | 3,384 | — | 12,064 | ||||||||||||||
| Other intangibles, net |
782 | 75 | — | 707 | ||||||||||||||
| Other assets |
4,160 | 423 | — | 3,737 | ||||||||||||||
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| Total assets |
$ | 110,756 | $ | 18,354 | $ | 11,050 | $ | 103,452 | ||||||||||
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| Accounts payable |
$ | 10,437 | $ | 2,615 | $ | — | $ | 7,822 | ||||||||||
| Accrued liabilities |
20,779 | 13,310 | 544 | (c) | 8,013 | |||||||||||||
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| Total current liabilities |
31,216 | 15,925 | 544 | 15,835 | ||||||||||||||
| Total Gaiam, Inc. shareholders’ equity |
76,743 | 1,501 | 10,506 | (d) | 85,748 | |||||||||||||
| Noncontrolling interest |
2,797 | 928 | — | 1,869 | ||||||||||||||
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| Total equity |
79,540 | 2,429 | 10,506 | 87,617 | ||||||||||||||
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| Total liabilities and equity |
$ | 110,756 | $ | 18,354 | $ | 11,050 | $ | 103,452 | ||||||||||
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| (a) | Represents the assets, liabilities, and equity attributable to Natural Habitat included in Gaiam’s historical financial statements. |
| (b) | Cash is adjusted to reflect the $11.0 million estimated net proceeds from the sale. |
| (c) | Accrued liabilities have been adjusted to reflect the accrual of estimated nonrecurring costs directly related to the disposition (not paid in close). |
| (d) | Equity is adjusted to reflect the estimated net gain of $9.0 million on the sale of Natural Habitat. We expect that there will be minimal income taxes on the gain due to utilization of our prior tax net operating losses. |
Gaiam, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of December 31, 2015
(in thousands)
| Gaiam Historical Financial Statements |
Less: Natural Habitat Historical Financial Statements (a) |
Pro Forma Adjustments (Disposition of Natural Habitat) |
Notes | Pro Forma Results (Adjusted for Disposition of Natural Habitat) |
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| Cash |
$ | 13,772 | $ | 8,937 | $ | 13,106 | (b)(c) | $ | 17,941 | |||||||||
| Accounts receivable, net |
26,999 | 385 | — | 26,614 | ||||||||||||||
| Inventory, less allowances |
17,303 | — | — | 17,303 | ||||||||||||||
| Other current assets |
14,843 | 8,386 | 6,457 | |||||||||||||||
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| Total current assets |
72,917 | 17,708 | 13,106 | 68,315 | ||||||||||||||
| Property and equipment, net |
25,046 | 1,467 | — | 23,579 | ||||||||||||||
| Media library, net |
9,117 | — | — | 9,117 | ||||||||||||||
| Goodwill |
15,448 | 3,384 | — | 12,064 | ||||||||||||||
| Other intangibles, net |
866 | 79 | — | 787 | ||||||||||||||
| Other assets |
5,148 | 526 | — | 4,622 | ||||||||||||||
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| Total assets |
$ | 128,542 | $ | 23,164 | $ | 13,106 | $ | 118,484 | ||||||||||
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| Accounts payable |
$ | 19,384 | $ | 3,481 | $ | — | $ | 15,903 | ||||||||||
| Accrued liabilities |
20,365 | 13,242 | 544 | (d) | 7,667 | |||||||||||||
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| Total current liabilities |
39,749 | 16,723 | 544 | 23,570 | ||||||||||||||
| Total Gaiam, Inc. shareholders’ equity |
83,940 | 3,503 | 12,562 | (e)(c) | 92,999 | |||||||||||||
| Noncontrolling interest |
4,853 | 2,938 | — | 1,915 | ||||||||||||||
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| Total equity |
88,793 | 6,441 | 12,562 | 94,914 | ||||||||||||||
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| Total liabilities and equity |
$ | 128,542 | $ | 23,164 | $ | 13,106 | $ | 118,484 | ||||||||||
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| (a) | Represents the assets, liabilities, and equity attributable to Natural Habitat included in Gaiam’s historical financial statements. |
| (b) | Cash is adjusted to reflect the $11.0 million estimated net proceeds from the sale. |
| (c) | Cash and equity are adjusted to reflect a $2.1 million dividend paid by Natural Habitat to Gaiam in 2016. |
| (d) | Accrued liabilities have been adjusted to reflect the accrual of estimated nonrecurring costs directly related to the disposition (not paid in close). |
| (e) | Equity is adjusted to reflect the estimated net gain of $7.0 million on the sale of Natural Habitat. We expect that there will be minimal income taxes on the gain due to utilization of our prior tax net operating losses. |