Gaiam, Inc., distributor of active lifestyle media, apparel and other products, reported third quarter net revenue rose three percent to $43 million after excluding results from its solar power business, deconsolidated from the company in Dec. 2011.

“I want to draw your attention to our year-to-date performance,” said Gaiam CFO Steve Thomas in a conference call with investors. “For the first nine months of 2012 our revenue rose 23.5 percent. Internal growth was 13 percent; cash flow from operations increased $19.8 million; and EBITDA improved to $5.3 million versus a loss of $3.4 million in the first nine months of 2011. These results reflect both the positive impact the Vivendi Entertainment acquisition is having as well as the health of our business as a whole.” Gaiam’s net revenue rose approximately $25.9 million.

The revenue for the direct-to-consumer segment was $15.9 million, compared to $22.2 million for the prior year quarter, reflecting the company’s previously disclosed strategy of reducing media spend and optimizing profitability in its DRTV business during a period in which the Olympic Games and political campaign advertising have the effect of significantly increasing costs.

Revenue for the business segment increased $7.5 million, or 38.6 percent, to $27.1 million, and excluding the revenue benefit from the acquisition of Vivendi Entertainment, internal revenue growth for the business segment was 15.2 percent.

“Gross profit was flat at $24.1 million for the third quarter of 2012 and 2011,” continued Thomas. “Gross margin decreased to 56 percent from 57.6 percent during the same quarter last year due to sales mix, given the decrease in typically higher-margin DRTV sales.”

“We are particularly pleased to see continued growth in our media business, as its expanded scale, expertise and operating efficiencies are proving integral to our efforts to provide exceptional service to existing studio partner customers and in attracting new, high-profile content, including our recent agreements with the Hallmark Channel and The Jim Henson company,” said CEO Lynn Powers. “Gaiam has emerged as the industry’s leading independent content distributor and we expect to continue our momentum with this business. In addition, we are pleased to see the continued evolution of our Gaiam-branded products, including our Gaiam Restore line of wellness accessories, across existing and new retail outlets.”