Ladies and gentlemen thank you for standing by. Welcome to the Gaiam, Inc. Third Quarter Results Conference Call. During the presentation all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. (Operator Instructions) As a reminder this conference is being recorded today Thursday, November 7, 2013. I would now like to turn the conference over to Norberto Aja. You may begin, sir.

Thank you, operator, and good afternoon, everyone. Thank you for participating Gaiam’s 2013 third quarter conference call. Joining me today on the call are Gaiam’s Chairman, Jirka Rysavy, Gaiam’s CEO, Lynn Powers and Steve Thomas, Gaiam’s CFO. Following some prepared remarks, we’ll open the call for your questions. But before we get started, I would like to take a minute or two to read the Safe-Harbor language; the following constitutes the Safe Harbor statement of the Private Securities Litigation Reform Act of 1995. Except for historic information contained herein, the matters discussed in this call today are forward-looking statements and involve risks and uncertainties including, but not limited to general business conditions, integration of acquisitions, the timely development of new businesses, the impact of competition and other risk details from time-to-time as described in the SEC reports. The risks and uncertainties associated with the forward-looking statements are described in today’s news announcement and in the company’s filings with the Securities and Exchange Commission including the company’s reports on Form 10-K and 10-Q. Gaiam assumes no obligation to publicly update or revise any forward-looking statements. Today’s call includes non-GAAP financial measures within the meaning of the SEC Regulation G, when required a reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in today’s press release as well as on the company’s website. With that, I would now like to turn the call over to Gaiam’s Chairman, Jirka Rysavy. Please go ahead.

Thank you, Norberto, and good afternoon, everyone. Revenue for third quarter which ended September 30 increased 22.8% to $52.8 million. All 22.8% growth was organic; excluding revenue from the subsequently divested non-brand and distribution business GVE, the revenue for quarter would increase 17.7% organically. Business segment revenue grew 32%.and business segment revenue excluding the revenue from GVE rose 27%. Direct-to-consumer segment revenue increased 7%. During the same quarter we recorded a gain of $2 million on additional sales Real Goods Solar, following our second quarter sale of 6 million shares for gain of $16.4 million. We founded Real Goods Solar as our solar subsidiary in 1999, called the unit Gaiam Energy Tech until its IPO and we used the portion of NOL to offset all the taxes from the gains. Net income for the quarter was $0.1 million, $0.01 per share compared to a net loss to $11.2 million, or $0.49 per share for third quarter 2012. Third quarter 2012 included an accounting flows or loss from our equity met that investment in Real Goods Solar of about [$10 million], mostly driven by the good of our impairment charge. Revenue for nine months increased $18.2 million, or 13.4% to $154 million, excluding contribution from GVE the revenue rose organically 12.0%. Net income for first nine months was $7.7 million, or $0.34 per share, compared to a net loss of $14.4 million, or $0.64 per share for the first nine months of 2012. In September 30, the Gaiam had a total cash of $10.9 million, this $15.4 million drawn company credit line. After the end of the quarter, Gaiam devastated its non-branded entertainment media distribution business GVE for $51.5 million plus working capital adjustment. Going-forward Gaiam intends to focus on its branded and wellness business in on Gaiam TV, the company’s…

Thank you, Jirka. I’ll spend a few minutes reviewing the financial results in greater detail and offering additional perspective on the performance for the quarter. Please note, given the timing around the closing of the sale of GVE, our non-Gaiam branded entertainment media distribution business, the financial results included in our press release earlier today as well as most of the results I will be discussing on today’s call, are inclusive of contributions from GVE. Beginning with the income statement, consolidated third quarter 2013 net revenue increased $9.8 million to $52.8 million representing an organic increase of 22.8%, compared to the prior year period. The increase in our top line was driven by the strong performance of our business segment, which saw net revenue increase over 32% to $35.8 million. Our direct to consumer segment generated 6.7% revenue improvement to $17 million. Excluding GVE, net revenue increased 27.3% or $5 million in the third quarter, compared to the prior year period. Moving down the income statement, gross profit for the third quarter was $28.7 million or 54.3% of net revenue, compared to $24.1 million or 56% of net revenue in Q3 of 2012. The decrease in gross margin primarily reflects a decline in our higher margin direct response television marketing business or DRTV revenue combined with increased sales, some lower margin fitness and wellness accessories. For the third quarter, total operating expenses increased to $30 million from $24.2 million in Q3 of 2012. However, as a percentage of net revenue, these expenses increased only slightly to 56.8% from 56.4%. This relates to an operating loss for the three months ended September 30, 2013 of $1.3 million, compared to an operating loss of $0.02 million in 2012. The increased operating loss is primarily attributable to the negative earnings comparisons in our…

Thanks Steve. Let me begin by announcing some exciting news. Earlier this week, we acquired My Yoga Online which is the largest online yoga video streaming subscription business in the world with an expansive content library including around a 1000 video titles and an active online community including the large international membership. This was a very attractive acquisition for us on multiple fronts is My Yoga Online reflects our strategy to grow Gaiam by leveraging the tremendous value of our brand in all distribution channels. The unique resources, we have around Yoga Health and Wellness and our strategic initiatives to grow the business as the unified global brand as well as our state-of-the-art video subscription platform. I’ll now offer some color around the recent results and our plans for the businesses. Given the recent sale of GVE, our non Gaiam branded entertainment media distribution business, I believe it will be more helpful as we focus the majority of our discussion on Gaiam’s future without entertainment. But first let me begin with the quick review of our recent sale of GVE to Cinedigm for $51.5 million. Monetizing the value of our entertainment media distribution business has been a key focus for us and we felt this is an approximately time to do so given both the return on investment we achieved and our desire to pursue growth in our core yoga health and wellness as well as our Gaiam TV businesses. Since combining our entertainment media business with Vivendi back in early 2012, we’ve achieved our goal of growing GVE to become the leading independent and second largest overall distributor of non-theatrical content in the U.S. making GVE a unique valuable and attractive asset that could command a premium valuation in the marketplace. I believe the combined teams at GVE and…

Thank you (Operator Instructions) And our first question is from the line of Mark Argento from Lake Street Capital Markets, you may begin sir. Mark Argento – Lake Street Capital Markets: Hi good afternoon everybody.

Hi Mark. Mark Argento – Lake Street Capital Markets: I think you mentioned in your prepared remarks that kind of the contributions from GVE is roughly $12 million in EBITDA on a trailing-12-month basis. Could you talk a little bit about how you see – I know you don't provide hard guidance, but how do you see the business now without GVE kind of any type of profit or cash flow goals? Just trying to get a better feel of how you see the business playing out without GVE on the financial side.

Clearly, the divestiture just happen and so there is definitely still some cost right because when we sold the unit Cinedigm obviously pick the parts where they want and paid for that and so we have to deal cost but still, what kind of stayed so we will do it over two months. And so it’s kind of we kind of said before we definitely need to make some kind of restructuring charge for that obviously we don’t disclose, but generally like if you kind of we developed on a go to guidance but you just kind of deduct for kind of people have what Steve mentioned, so that’s how it is going to do, but also you have a positive thing that on EBITDA basis, Gaiam TV probably lost about $8 million, last year or $7 million to $8 million and that will turn to some positive number next year, so that will also offset that deal. But I think it was – Lynn, do you want to say something?

: Mark Argento – Lake Street Capital Markets: And the business you sold – so you still are retaining all your fitness video business and all that? That did not go with the acquisition?

Absolutely Mark we didn’t sell any of our fitness wellness business nor anything that’s Gaiam branded? Mark Argento – Lake Street Capital Markets: Got you. Okay. And then, in terms of the cash, I know you talked a little bit about trying to figure out different ways to deploy it. Do you see more kind of the acquisition along the lines of the one you just did on the online yoga video company, more little tuck-in acquisitions? Or would you like to do something a little bit more sizeable if you see the opportunity?

Well I think we’ve done the branding study and I believe that study pretty, gave us pretty clear direction we want to own the yoga/fitness/wellness business across all platforms and in all categories. So I think it will depend on what acquisitions we see available but certainly something in the apparel space could be a possibility as well as certainly anything in the digital space. Mark Argento – Lake Street Capital Markets: Sure. And last question for me. I know you had mentioned kind of a mid-price-point yoga apparel line. Is that a 2014 event? How far down the road are you in terms of the design work and potentially have a product out to market?

We’ve hired the design team and we hired a couple of internal people to work with the design team and we hope to launch for fall or holiday 2014. Mark Argento – Lake Street Capital Markets: Fantastic. I appreciate it. Thank you..

Thanks Mark.

(Operator Instructions). And our next question is from the line Mr. George Kelly from Craig-Hallum Capital Group. You may begin sir. George Kelly – Craig-Hallum Capital Group LLC: Hi guys, just to follow up on Mark's question, so with the women's apparel line, and owning the sort of category, how important is it to have stores? And will this concept – is it a standalone store or is it kind of within the store-within-a-store concept that you already have developed?

I think initially we will go to the retail partners and a store-within-a-store concept. Certainly we believe that physical locations should be part of a long-term strategy for Gaiam but we haven’t identified anything at this time. George Kelly – Craig-Hallum Capital Group LLC: Okay. And the fall and holiday 2014 launch, that's not dependent on any kind of acquisition? That's just internal product development you're working on right now?

That’s correct. George Kelly – Craig-Hallum Capital Group LLC: Okay. And then, on the business segment, really strong quarter. I think you mentioned 55% growth in the top 25 retailers there. So wondering if you could highlight if there's a couple brands within that that have been doing really well, or what's driving that.

Yes, absolutely the Gaiam restore brand is doing really well everywhere it’s placed now. We started that a year ago target and now we have expanded it to having products that could consume four-seat, so that’s one of the big drivers in the second is SPRI taking that out into the consumer market from the professionals market started at the end of last year and we are getting great traction with it including a full cross train set at the sports authority. So those are the two brands and lines that are driving that growth. George Kelly – Craig-Hallum Capital Group LLC: That's great. That's great. How early on do you think we are? I know SPRI was – just really last year that you sort of shifted the position of the brand. But do you think that we can see – I mean, will 2015 or 2014 be similar? Could we see 20% plus growth in 2014, do you think?

Uncertain of our lines absolutely we’re right now the SPRI brand is really only in the Sports Authority and Sears. So you can see there is a lot of doors, we can expand that too as well as the Gaiam Restore, we have the opportunity on Restore because there are more wellness product offer the also to go out into the drug and grocery market and we have not penetrated that at all yet. George Kelly – Craig-Hallum Capital Group LLC: That's great. And then, couple of questions on GaiamTV. What was the number of subscribers? And then wondering if the breakeven has changed at all now with the My Yoga acquisition, and what that looks like, what that adds on a cost base if the next couple quarters we could expect to see a higher investment in TV with that acquisition.

So number of subscribers, it’s 750,000 a months or it mentioned revenue that's probably, it’s probably 70,000 subscribers and for this acquisition I think the it should, it’s definitely a positive to everything obviously there is a little integration cost and also we have to for accounting purposes there is this new GAAP guidance how you confer for acquisitions so we have to establish for the customers and amortize them, so it will take amortization, it will take about nine months. So that basically would kind of skewing it from being profitable a little early but we’ll get profitable when they get – it’s a big chunk when you get amortized for first nine months. And so we’ll get to profitability about mid-year 2014. George Kelly – Craig-Hallum Capital Group LLC: Okay. And of those 70,000 subscribers, how many came from the My Yoga acquisition?

We don’t we agree with the sellers we are not going to disclose any numbers. George Kelly – Craig-Hallum Capital Group LLC: Okay. Okay, fair enough.

It’s not material transaction for Gaiam. George Kelly – Craig-Hallum Capital Group LLC: Okay. And then, when you were thinking of looking at My Yoga, what do they offer that's different? What kind of capabilities do they bring that you didn't have before? And I guess why are you excited to bring them in?

First, they kind of the largest Yoga Online training business. They started 10 years ago and obviously getting a content what they build so there is limits about 1000 titles and the relationship is Yoga community, the founders. I think I’m personally most excited to bring the team in. The founders being an entrepreneur all my life I can’t really appreciate for somebody building something, because there is a lot of people who tried to do it, they never succeed. And so I think it’s probably from the most, just addition to that scale, because for us, it’s GaiamTV is still a relative startup, we took data out just like 13 to 14 months ago. And not even, and so that would be kind of my personal take, but otherwise it’s just same subscription. So the companies are perfect match. You just bring them together, they vary. We build much more robust technology. They have really the penetration on that what we call channel. And so you might kind of see more of this, kind of whenever you focus a different channel of the Gaiam TV, because that what you built within 10 years and you got communities it’s very hard to replace by just starting from scratch even. We – well known in yoga, we have a lot of content, it’s still, if you have the two strongest company in the market combining in that segment, it will definitely establish the ultimate player. George Kelly – Craig-Hallum Capital Group LLC: And will they continue to be independently kind of, do you experience there will be independent brands online?

No, the founders will within the year kind of, they'll come here and operate from – with our team here, so it will be one unit. George Kelly – Craig-Hallum Capital Group LLC: But I just mean as far as what I see on the Internet. I'll still be a My Yoga subscriber or a GaiamTV, maybe they'll be some – but they'll be independent sort of…

Just for until it show. Just until it’s integrated. George Kelly – Craig-Hallum Capital Group LLC: Okay, okay, gotcha. And then, on the Real Goods Solar stock, I wasn't sure, you’ve commented on it in the press release, do you guys still own 3 million shares, or did you sell more?

End of the quarter – end of the third quarter, we owned roughly about 3 million shares, yes. George Kelly – Craig-Hallum Capital Group LLC: And did you sell more subsequent to the end of the quarter?

When we did a little bit, yes. But we still have some. George Kelly – Craig-Hallum Capital Group LLC: We still have 3 million shares.

No, we don’t have quite 3 million, last time, actually when we have – because there was eroding pick, the snap for our proxy, we own about 1.8 million in that.

So, you’re okay, 1.8 million. George Kelly – Craig-Hallum Capital Group LLC: All right. Thank you very much.

Thanks.

Thanks, George.

Thank you.

Speakers, we have no further questions at this time. I’ll be turning the call back to you for your closing remarks.

We’d like to thank everybody for being with us and hopefully same in the next quarter. Thank you very much.