Overstock.com 2012 Annual Report Download - page 69
Download and view the complete annual report
Please find page 69 of the 2012 Overstock.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59 -
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
 |
 |
Table of Contents
Regulation G, and other SEC regulations regulate the disclosure of certain non-GAAP
financial information.
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 revenues.
When viewed together with our GAAP results, we believe Contribution and Contribution margin provides management and users of the financial
statements information about our ability to cover our 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, see the calculation of this non-GAAP measure below (in thousands):
Free cash flow (a non-GAAP financial measure) 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 (used in) operating activities", is cash flows 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 mandatory debt service and financing obligations, changes in our capital structure, and future investments after we have paid
all of our operating expenses. Therefore, we
60
Total revenue $ 1,099,289 $ 1,054,277 $ 1,089,873
Cost of goods sold 900,859 875,189 900,233
Gross profit 198,430 179,088 189,640
Less: Sales and marketing expense 63,467 61,813 61,334
Contribution $ 134,963 $ 117,275 $ 128,306
Contribution margin 12.3% 11.1% 11.8%