Gaiam reached record levels in terms of net revenue and operating income for the fourth quarter of 2009 by posting explosive internal revenue growth of 18.7% during the last few quarters. Net revenue for the fourth quarter ended December 31 increased 17.6% to $87.6 million from $74.5 million recorded in the same quarter of the prior year. The increase in net revenue was mainly due to the Business segment which posted a 44.1% gain, as well as strong growth in the Solar segment, partially counterbalanced by a predetermined 40% decrease in catalog circulation.
Fourth quarter gross profit increased to $45.9 million, or 52.3% of net revenue from $38.3 million, or 51.4% of net revenue, during the comparable quarter last year. Selling and operating expenses decreased to $35.4 million, or 40.4% of net revenue, during the fourth quarter of 2009, from $39.7 million, or 53.3% of net revenue, during the same quarter last year, reflecting leverage from sales growth and the significant cost saving measures implemented earlier this year.
Operating income for the quarter increased to $6.7 million from a loss of $47.2 million during the same quarter of last year. The results during the comparable quarter last year included a $42.3 million pre-tax charge primarily related to goodwill and intangible asset impairments and the disposition of an unprofitable business.
Free cash flow in the fourth quarter reached $5.6 million, a $17.2 million improvement from the use of free cash flow of $11.6 million during the fourth quarter last year. For the year, free cash flow increased to $22.8 million, a $52.8 million improvement from the use of $30.0 million in free cash flow during last year.
In addition, Gaiam recorded net income of $4.0 million during the quarter, or $0.17 per share, compared to a net loss of $30.3 million, or a loss of $1.26 per share, in the same year-ago period.
For the year ended December 31, Gaiam recorded net revenue of $278.5 million, an 8.3% increase from $257.2 million during 2008. The company recorded net income of $296,000, or a penny per share, compared to a net loss of $35.6 million, or a loss of $1.46 per share, in the prior year. The company also recorded $28.1 million in cash from operations and ended the year with $48.3 million in cash, up $16.4 million from the end of 2008, even after the company’s repurchase of 932,000 shares of its common stock during 2009.
“We ended the year on a very positive note
It was an especially good quarter for our business segment, where we reported over 44% growth in net sales to retailers compared to the same quarter last year, as said by Lynn Powers, Gaiam’s president & CEO.
