For 2009, GAIAM reported a strong start. With a goal of $20 million in sales for the year, GAIAM claims to have generated $17.2 million in free cash flow throughout the first nine months for fiscal 2009.
Direct sales comprised of 50% of total sales, while 35% were a result of the trade/retail segment. The final 15% were a result of consolidated sales from the company’s Solar Solutions business which designs and installs solar units in both residential and commercial properties.
With a productive year which resulted in increasing its market share to nearly 40% in the DVD fitness and wellness market, GAIAM also increased its shares within smaller markets. The company’s “Media That Matters” program, pertaining to children, family and inspirational films produced 1500 titles which afforded GAIAM a share position of 5.8%, up from nearly nothing in 2005.
For the future, GAIAM is looking to expand its partnerships. The company has already entered into contracts with Discovery and Reebok. Accordingly, GAIAM plans to team with Reebok in packaging GAIAM fitness DVD’s with Reebok fitness accessories. As of June 2010, Reebok will be taking over 12 square feet in Target stores to market the new products.
Moreover, GAIAM reported reducing its costs by $10 million in 2009. The company plans to further condense costs in 2010 by limiting catalogue distribution while increasing its online awareness. GAIAM is doing so in an effort to increase profit by bringing magazine circulation down 40%.
GAIAM’s emphasis in the future will be creating a store within a store presence. Currently, GAIAM distributes to nearly 72,000 U.S. stores, while retaining 11,000 branded stores within a store, touted as its major retail asset.
Current balance sheets are consolidated to include real goods, which result in $44 million in cash, ownership of land, zero dollars in debt, and ten million shares of real goods. Without real goods, GAIAM holds claim to $30 million in cash which totals 5.16 in tangible book value. Shares are trading from $7.80 to $7.50.
GAIAM plans to report its fourth quarter sales in March of the new fiscal year.