Overstock.com 2004 Annual Report Download - page 35

During the fourth quarter of 2004, there were no purchases of shares of the Company's common stock made by or on behalf of the Company or any
"affiliated purchaser" as defined in Rule 10b-18(a)(3) under the Exchange Act. In January 2005, the Company announced that its board of directors had
authorized a three-year stock repurchase program for up to $50 million for the purpose of mitigating dilution from outstanding options, warrants and other
convertible securities. In February and March 2005, we paid $47.5 million for several purchased call options pursuant to which we may purchase up to
1,250,000 shares of our common stock.
ITEM 6. SELECTED FINANCIAL DATA
The following selected consolidated financial data as of December 31, 2003 and 2004 and for each of the three years in the period ended December 31,
2004, are derived from our consolidated financial statements and are included elsewhere in this Form 10-K. The consolidated financial data as of
December 31, 2000, 2001 and 2002 and for the years ended December 31, 2000 and 2001, are derived from consolidated financial statements, but are not
contained herein. The historical results do not necessarily indicate results expected for any future period. This information should be read in conjunction with
"Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Consolidated Financial Statements and the related notes
thereto included elsewhere in this Form 10-K.
Year ended December 31,
2000 2001 2002 2003 2004
(in thousands, except per share data)
Consolidated Statement of Operations Data:
Revenue
Direct revenue $ 24,656 $ 36,038 $ 79,405 $138,134 $213,210
Fulfillment partner revenue 867 3,965 12,379 100,811 281,425
Total revenue 25,523 40,003 91,784 238,945 494,635
Cost of goods sold
Direct 27,431 33,497 70,686 124,302 185,390
Fulfillment partner 381 1,143 2,755 89,190 243,468
Total cost of goods sold 27,812 34,640 73,441 213,492 428,858
Gross profit (loss) (2,289) 5,363 18,343 25,453 65,777
Operating expenses:
Sales and marketing expenses 11,376 5,784 8,669 20,173 40,533
General and administrative expenses 7,556 9,441 10,825 16,911 30,235
Amortization of goodwill 226 3,056 — — —
Amortization of stock-based compensation — 649 2,903 756 360
Total operating expenses 19,158 18,930 22,397 37,840 71,128
Operating loss (21,447) (13,567) (4,054) (12,387) (5,351)
Interest income 241 461 403 461 1,173
Interest expense (73) (729) (465) (76) (775)
Other income (expense), net (33) 29 (444) 115 (49)
Net loss (21,312) (13,806) (4,560) (11,887) (5,002)
Deemed dividend related to redeemable common stock (210) (404) (406) (262) (188)
Deemed dividend related to beneficial conversion feature of preferred stock — — (6,607) — —
Net loss attributable to common shares $(21,522) $(14,210) $(11,573) $ (12,149) $ (5,190)
Net loss per common share—basic and diluted $ (3.63) $ (1.29) $ (0.88) $ (0.75) $ (0.29)
Weighted average common shares outstanding—basic and diluted 5,922 10,998 13,108 16,198 17,846
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