(State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer | ||||||||||||
incorporation or organization) | Identification Number) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit Number | Exhibit Description | |||||||
99.1 | ||||||||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101) |
OVERSTOCK.COM, INC. | ||||||||
By: | /s/ ADRIANNE B. LEE | |||||||
Adrianne B. Lee | ||||||||
Chief Financial Officer | ||||||||
Date: | February 22, 2023 |
• | Total net revenue was $405 million, a decrease of 34% year over year | ||||
• | Gross profit of $90 million, or 22.1% of total net revenue | ||||
• | Operating loss of $3 million | ||||
• | Net loss of $16 million | ||||
• | Diluted net loss per share of $0.34; Adjusted diluted net loss per share (non-GAAP) of $0.04 | ||||
• | Adjusted EBITDA (non-GAAP) of $7 million, which represents 1.6% of net revenue | ||||
• | Cash and cash equivalents totaled $371 million at the end of the fourth quarter |
• | Total net revenue of $1.9 billion, a decrease of 30% year over year | ||||
• | Gross profit of $443 million or 23.0% of total net revenue | ||||
• | Operating income of $27 million | ||||
• | Net loss of $35 million | ||||
• | Diluted net loss per share of $0.83; Adjusted diluted earnings per share (non-GAAP) of $0.52 | ||||
• | Adjusted EBITDA (non-GAAP) of $63 million, which represents 3.3% of net revenue | ||||
• | Active customers of 5.2 million, a decrease of 36% year over year | ||||
• | Last Twelve Months (LTM) net revenue per active customer of $374, an increase of 9% year over year | ||||
• | Orders delivered of 1.9 million, a decrease of 37% year over year | ||||
• | Average order value of $215, an increase of 4% year over year | ||||
• | Orders per active customer, measured as LTM orders divided by active customers, of 1.60, a decrease of 4% year over year | ||||
• | Orders placed on a mobile device were 52% of gross merchandise sales |
Contacts Investor Relations: Lavesh Hemnani ir@overstock.com | Media Relations: Sarah Factor pr@overstock.com |
Overstock.com, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share data) | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 371,263 | $ | 503,341 | |||||||
Restricted cash | 194 | 25 | |||||||||
Accounts receivable, net | 17,693 | 21,190 | |||||||||
Inventories | 6,526 | 5,137 | |||||||||
Prepaids and other current assets | 18,833 | 22,097 | |||||||||
Total current assets | 414,509 | 551,790 | |||||||||
Property and equipment, net | 109,906 | 109,479 | |||||||||
Deferred tax assets, net | 41,439 | 40,035 | |||||||||
Goodwill | 6,160 | 6,160 | |||||||||
Equity securities | 296,317 | 342,682 | |||||||||
Operating lease right-of-use assets | 7,460 | 12,584 | |||||||||
Other long-term assets, net | 2,755 | 3,236 | |||||||||
Total assets | $ | 878,546 | $ | 1,065,966 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 75,130 | $ | 102,293 | |||||||
Accrued liabilities | 63,614 | 101,902 | |||||||||
Unearned revenue | 44,480 | 59,387 | |||||||||
Operating lease liabilities, current | 4,410 | 5,402 | |||||||||
Other current liabilities | 3,508 | 3,349 | |||||||||
Total current liabilities | 191,142 | 272,333 | |||||||||
Long-term debt, net | 34,476 | 37,984 | |||||||||
Operating lease liabilities, non-current | 3,626 | 7,960 | |||||||||
Other long-term liabilities | 3,476 | 3,303 | |||||||||
Total liabilities | 232,720 | 321,580 | |||||||||
Stockholders' equity: | |||||||||||
Preferred stock, $0.0001 par value, authorized shares - 5,000 | |||||||||||
Series A-1, issued and outstanding - 0 and 4,204 | — | — | |||||||||
Series B, issued and outstanding - 0 and 357 | — | — | |||||||||
Common stock, $0.0001 par value, authorized shares - 100,000 | |||||||||||
Issued shares - 51,102 and 46,625 | |||||||||||
Outstanding shares - 44,951 and 43,023 | 5 | 4 | |||||||||
Additional paid-in capital | 982,718 | 960,544 | |||||||||
Accumulated deficit | (173,829) | (136,590) | |||||||||
Accumulated other comprehensive loss | (522) | (537) | |||||||||
Treasury stock at cost - 6,151 and 3,602 | (162,546) | (79,035) | |||||||||
Total stockholders' equity | 645,826 | 744,386 | |||||||||
Total liabilities and stockholders' equity | $ | 878,546 | $ | 1,065,966 |
Overstock.com, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) | |||||||||||||||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue | $ | 404,896 | $ | 612,659 | $ | 1,929,334 | $ | 2,756,446 | |||||||||||||||
Cost of goods sold | 315,341 | 473,815 | 1,485,990 | 2,132,544 | |||||||||||||||||||
Gross profit | 89,555 | 138,844 | 443,344 | 623,902 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales and marketing | 45,504 | 67,970 | 215,477 | 302,430 | |||||||||||||||||||
Technology | 27,999 | 30,917 | 121,158 | 123,001 | |||||||||||||||||||
General and administrative | 18,699 | 20,837 | 79,701 | 87,399 | |||||||||||||||||||
Total operating expenses | 92,202 | 119,724 | 416,336 | 512,830 | |||||||||||||||||||
Operating income (loss) | (2,647) | 19,120 | 27,008 | 111,072 | |||||||||||||||||||
Interest income (expense), net | 1,999 | (132) | 2,965 | (556) | |||||||||||||||||||
Other income (expense), net | (15,447) | 12,507 | (63,825) | 12,500 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | (16,095) | 31,495 | (33,852) | 123,016 | |||||||||||||||||||
Provision (benefit) for income taxes | (584) | (1,447) | 1,384 | (48,775) | |||||||||||||||||||
Income (loss) from continuing operations | (15,511) | 32,942 | (35,236) | 171,791 | |||||||||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | 217,246 | |||||||||||||||||||
Consolidated net income (loss) | (15,511) | 32,942 | (35,236) | 389,037 | |||||||||||||||||||
Less: Net loss attributable to noncontrolling interests—discontinued operations | — | — | — | (335) | |||||||||||||||||||
Net income (loss) attributable to stockholders of Overstock.com, Inc. | $ | (15,511) | $ | 32,942 | $ | (35,236) | $ | 389,372 | |||||||||||||||
Consolidated net income (loss) per share of common stock: | |||||||||||||||||||||||
Net income (loss) attributable to common shares—basic | |||||||||||||||||||||||
Continuing operations | $ | (0.34) | $ | 0.69 | $ | (0.83) | $ | 3.60 | |||||||||||||||
Discontinued operations | — | — | — | 4.58 | |||||||||||||||||||
Total | $ | (0.34) | $ | 0.69 | $ | (0.83) | $ | 8.18 | |||||||||||||||
Net income (loss) attributable to common shares—diluted | |||||||||||||||||||||||
Continuing operations | $ | (0.34) | $ | 0.68 | $ | (0.83) | $ | 3.57 | |||||||||||||||
Discontinued operations | — | — | — | 4.54 | |||||||||||||||||||
Total | $ | (0.34) | $ | 0.68 | $ | (0.83) | $ | 8.11 | |||||||||||||||
Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
Basic | 45,420 | 43,016 | 44,323 | 42,981 | |||||||||||||||||||
Diluted | 45,420 | 43,370 | 44,323 | 43,332 |
Overstock.com, Inc. Consolidated Statements of Cash Flows (Unaudited) (in thousands) | |||||||||||
Year ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Consolidated net income (loss) | $ | (35,236) | $ | 389,037 | |||||||
Income from discontinued operations, net of income taxes | — | (217,246) | |||||||||
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 16,706 | 18,564 | |||||||||
Non-cash operating lease cost | 5,304 | 5,021 | |||||||||
Stock-based compensation to employees and directors | 18,318 | 11,133 | |||||||||
Increase in deferred tax assets, net | (1,404) | (53,829) | |||||||||
(Income) loss from equity method securities | 63,923 | (12,585) | |||||||||
Other non-cash adjustments | 185 | 1,537 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | 3,805 | 1,677 | |||||||||
Inventories | (1,389) | 1,106 | |||||||||
Prepaids and other current assets | 4,076 | 2,958 | |||||||||
Other long-term assets, net | (1,116) | (1,755) | |||||||||
Accounts payable | (28,821) | (7,787) | |||||||||
Accrued liabilities | (36,625) | (21,595) | |||||||||
Unearned revenue | (14,907) | (12,778) | |||||||||
Operating lease liabilities | (5,527) | (5,261) | |||||||||
Other long-term liabilities | 173 | (150) | |||||||||
Net cash provided by (used in) continuing operating activities | (12,535) | 98,047 | |||||||||
Net cash used in discontinued operating activities | — | (17,128) | |||||||||
Net cash provided by (used in) operating activities | (12,535) | 80,919 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of equity securities | (18,920) | — | |||||||||
Contributions for capital calls | — | (41,122) | |||||||||
Capital distribution from investment | 1,224 | — | |||||||||
Expenditures for property and equipment | (14,899) | (13,617) | |||||||||
Other investing activities, net | (439) | (1,694) | |||||||||
Net cash used in continuing investing activities | (33,034) | (56,433) | |||||||||
Net cash used in discontinued investing activities | — | (29,703) | |||||||||
Net cash used in investing activities | (33,034) | (86,136) | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchase of shares | (80,117) | — | |||||||||
Payments on long-term debt | (3,447) | (3,030) | |||||||||
Payments of taxes withheld upon vesting of employee stock awards | (3,700) | (8,279) | |||||||||
Proceeds from employee stock purchase plan | 924 | — | |||||||||
Other financing activities, net | — | (1,374) | |||||||||
Net cash used in continuing financing activities | (86,340) | (12,683) | |||||||||
Net cash provided by discontinued financing activities | — | 2,085 | |||||||||
Net cash used in financing activities | (86,340) | (10,598) | |||||||||
Net decrease in cash, cash equivalents, and restricted cash | (131,909) | (15,815) | |||||||||
Cash, cash equivalents, and restricted cash, beginning of year, inclusive of cash balances of discontinued operations | 503,366 | 519,181 | |||||||||
Cash, cash equivalents, and restricted cash, end of period, inclusive of cash balances of discontinued operations | 371,457 | 503,366 | |||||||||
Less: Cash, cash equivalents, and restricted cash of discontinued operations | — | — | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 371,457 | $ | 503,366 | |||||||
Three months ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Active customers | 5,162 | 8,075 | |||||||||
LTM net revenue per active customer | 374 | 341 | |||||||||
Orders delivered | 1,882 | 2,974 | |||||||||
Average order value | 215 | 206 | |||||||||
Orders per active customer | 1.60 | 1.67 |
Three months ended December 31, | |||||||||||||||||
2022 | |||||||||||||||||
Diluted EPS | Less: equity method income (loss)1 | Adjusted Diluted EPS | |||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) from continuing operations attributable to common stockholders | $ | (15,511) | $ | (13,559) | $ | (1,952) | |||||||||||
Denominator: | |||||||||||||||||
Weighted average shares of common stock outstanding—diluted | 45,420 | 45,420 | 45,420 | ||||||||||||||
Net income (loss) from continuing operations per share of common stock: | |||||||||||||||||
Diluted | $ | (0.34) | $ | (0.30) | $ | (0.04) | |||||||||||
Year ended December 31, | |||||||||||||||||||||||
2022 | |||||||||||||||||||||||
Diluted EPS | Less: non-cash preferred stock dividend1 | Less: equity method income (loss)2 | Adjusted Diluted EPS | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | (35,236) | $ | — | $ | (58,179) | $ | 22,943 | |||||||||||||||
Less: Preferred stock dividends—issued | 1,697 | 1,697 | — | — | |||||||||||||||||||
Net income (loss) from continuing operations attributable to common stockholders | $ | (36,933) | $ | (1,697) | $ | (58,179) | $ | 22,943 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares of common stock outstanding—diluted | 44,323 | 44,323 | 44,323 | 44,323 | |||||||||||||||||||
Net income (loss) from continuing operations per share of common stock: | |||||||||||||||||||||||
Diluted | $ | (0.83) | $ | (0.04) | $ | (1.31) | $ | 0.52 | |||||||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Income (loss) from continuing operations | $ | (15,511) | $ | 32,942 | $ | (35,236) | $ | 171,791 | |||||||||||||||
Depreciation and amortization | 4,226 | 4,232 | 16,706 | 18,564 | |||||||||||||||||||
Stock-based compensation | 4,928 | 3,484 | 18,318 | 11,133 | |||||||||||||||||||
Interest (income) expense, net | (1,999) | 132 | (2,965) | 556 | |||||||||||||||||||
Other (income) expense, net | 15,447 | (12,507) | 63,825 | (12,500) | |||||||||||||||||||
Provision (benefit) for income taxes | (584) | (1,447) | 1,384 | (48,775) | |||||||||||||||||||
Special items (see table below) | — | 511 | 1,451 | 872 | |||||||||||||||||||
Adjusted EBITDA | $ | 6,507 | $ | 27,347 | $ | 63,483 | $ | 141,641 | |||||||||||||||
Special items: | |||||||||||||||||||||||
Special legal charges and other | $ | — | $ | — | $ | 498 | $ | (186) | |||||||||||||||
Severance | — | 502 | 878 | 755 | |||||||||||||||||||
Transaction costs | — | 9 | 75 | 303 | |||||||||||||||||||
$ | — | $ | 511 | $ | 1,451 | $ | 872 |
Year ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by (used in) continuing operating activities | $ | (12,535) | $ | 98,047 | |||||||
Expenditures for property and equipment | (14,899) | (13,617) | |||||||||
Free cash flow | $ | (27,434) | $ | 84,430 |
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Cover Page |
Feb. 22, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 22, 2023 |
Entity Registrant Name | Overstock.com, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 000-49799 |
Entity Tax Identification Number | 87-0634302 |
Entity Address, Address Line One | 799 W. Coliseum Way |
Entity Address, City or Town | Midvale |
Entity Address, State or Province | UT |
Entity Address, Postal Zip Code | 84047 |
City Area Code | 801 |
Local Phone Number | 947-3100 |
Written Communications | false |
Soliciting Material | false |
Title of 12(b) Security | Common Stock, $0.0001 par value per share |
Trading Symbol | OSTK |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001130713 |
Amendment Flag | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
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