Overstock.com Reports FY and Q4 2010 Results
SALT LAKE CITY Feb. 28, 2011 December 31, 2010
http://photos.prnewswire.com/prnh/20110120/LA32935LOGO
Key FY 2010 metrics (comparison to FY 2009):
- $877M
- Gross margin: 17.4% vs. 18.8% (140 basis point decrease);
- $164.8M
- $61.3M $55.5M
- $128.3M $109.2M
- $113.9M $101.2M
- $4.5M $7.1M
- $13.8M $7.7M
- $0.59 $0.33
Key Q4 2010 metrics (comparison to Q4 2009):
- $322.4M
- Gross margin: 17.0% vs. 17.1% (10 basis point decrease);
- $55.0M
- $17.3M $18.6M
- $42.2M $36.4M
- $27.4M $23.0M
- $4.5M $5.2M
- $14.8M $12.7M
- $0.63 $0.55
Monday, February 28, 2011 2:00 p.m. Eastern Time
Webcast information
http://investors.overstock.com the United States Canada
Replay
http://investors.overstock.com 5:00 p.m. Eastern Time Monday, February 28, 2011 11:59 p.m. Eastern Time Monday, March 7, 2011 Canada
Kevin Moon kmoon@overstock.com
Key financial and operating metrics
$1,090 million $877 million $348.9 million $322.4 million
$189.6 million $164.8 million $59.4 million $55.0 million
$128.3 million $109.2 million $42.2 million $36.4 million
Contribution (a non-GAAP financial measure) (which we reconcile to "gross profit" in our statement of operations) consists of gross profit less sales and marketing expense and reflects an additional way of viewing our results. Contribution margin is contribution as a percentage of total net revenue. When viewed with our GAAP gross profit less sales and marketing expenses, we believe contribution and contribution margin provides management and users of the financial statements information about our ability to cover our fixed operating costs, such as technology and general and administrative expenses. Contribution and contribution margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. You should review our financial statements and publicly-filed reports in their entirety and not rely on any single financial measure. The material limitation associated with the use of contribution is that it is an incomplete measure of profitability as it does not include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at other GAAP measures, such as operating income (loss) and net income (loss).
For further details on contribution and contribution margin, see the calculation of these non-GAAP financial measures and the reconciliation of contribution to gross profit below (in thousands):
|
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Three months ended |
Year ended |
|||||||||||
December 31, |
December 31, |
|||||||||||
2010 |
2009 |
2010 |
2009 |
|||||||||
Total net revenue |
$ |
348,870 |
$ |
322,359 |
$ |
1,089,873 |
$ |
876,769 |
||||
Cost of goods sold |
289,458 |
267,337 |
900,233 |
712,017 |
||||||||
Gross profit |
59,412 |
55,022 |
189,640 |
164,752 |
||||||||
Less: Sales and marketing expense |
17,250 |
18,578 |
61,334 |
55,549 |
||||||||
Contribution |
$ |
42,162 |
$ |
36,444 |
$ |
128,306 |
$ |
109,203 |
||||
Contribution margin |
12.1% |
11.3% |
11.8% |
12.5% |
||||||||
$61.3 million $55.5 million $17.3 million $18.6 million
$58.3 million $52.3 million $5.9 million $6.5 million $1.5 million $1.4 million $15 $13
$55.7 million $48.9 million $6.7 million $5.1 million $2.3 million $2.0 million $3.2 million $2.6 million $4.5 million $7.1 million $4.5 million December 16, 2010 $11.5 million $9
$569,000 $66,000
$15.0 million $8.0 million $6.9 million $15.1 million $13.4 million $1.7 million
$157,000 $170,000 $46,000 $9,000
$3.0 million $3.5 million $732,000 $763,000
$2.1 million $3.3 million $678,000 $290,000
$359,000 $257,000
$13.8 million $0.59 $7.7 million $0.33 $14.8 million $0.63 $12.7 million $0.55
($4.2) million $38.8 million $43.0 million $13.2 million $29.8 million
Free cash flow reflects an additional way of viewing our cash flows and liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows and liquidity. Free cash flow, which we reconcile to "net cash provided by operating activities," is cash flow from operations, reduced by "expenditures for fixed assets, including internal-use software and website development." We believe that cash flows from operating activities is an important measure, since it includes both the cash impact of the continuing operations of the business and changes in the balance sheet that impact cash. However, we believe free cash flow is a useful measure to evaluate our business since purchases of fixed assets are a necessary component of ongoing operations and free cash flow measures the amount of cash we have available for future investment, debt retirement or other changes to our capital structure after we have paid all of our expenses. Therefore, we believe it is important to view free cash flow as a complement to our entire consolidated statements of cash flows.
Our calculation of free cash flow is set forth below (in thousands):
|
|||||||
Year ended December 31, |
|||||||
2010 |
2009 |
||||||
Net cash provided by operating activities |
$ |
16,322 |
$ |
46,117 |
|||
Expenditures for fixed assets, including internal-use software and |
|||||||
website development |
(20,511) |
(7,275) |
|||||
Free cash flow |
$ |
(4,189) |
$ |
38,842 |
|||
December 31, 2010 $124.0 million $14.7 million $51.2 million December 31, 2010 December 31, 2009 December 31, 2010 $34.5 million December 1, 2011
February 1, 2011 $10 million $15 million February 7, 2011 $10.1 million $24.5 million
About Overstock.com
Salt Lake City http://www.overstock.com http://www.o.co
Overstock.com® is a registered trademark and O.co™ and Savings Engine™ are trademarks of Overstock.com, Inc.
December 31, 2009
Overstock.com, Inc. |
||||||||||
Consolidated Statements of Operations |
||||||||||
(in thousands, except per share data) |
||||||||||
Three months ended |
Year ended |
|||||||||
December 31, |
December 31, |
|||||||||
2010 |
2009 |
2010 |
2009 |
|||||||
Revenue, net |
||||||||||
Direct |
$ 69,188 |
$ 55,053 |
$ 209,646 |
$ 150,901 |
||||||
Fulfillment partner |
279,682 |
267,306 |
880,227 |
725,868 |
||||||
Total net revenue |
348,870 |
322,359 |
1,089,873 |
876,769 |
||||||
Cost of goods sold |
||||||||||
Direct |
62,932 |
48,490 |
187,124 |
130,890 |
||||||
Fulfillment partner |
226,526 |
218,847 |
713,109 |
581,127 |
||||||
Total cost of goods sold |
289,458 |
267,337 |
900,233 |
712,017 |
||||||
Gross profit |
59,412 |
55,022 |
189,640 |
164,752 |
||||||
Operating expenses: |
||||||||||
Sales and marketing |
17,250 |
18,578 |
61,334 |
55,549 |
||||||
Technology |
15,948 |
13,538 |
58,260 |
52,336 |
||||||
General and administrative |
11,499 |
9,458 |
55,650 |
48,906 |
||||||
Restructuring |
(433) |
– |
(569) |
(66) |
||||||
Total operating expenses |
44,264 |
41,574 |
174,675 |
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