Overstock.com 2002 Annual Report Download - page 48

The warehouse segment includes revenues, direct costs, and cost allocations associated with sales made to individual consumers at the Company's
warehouse store. Costs for this segment include product costs, warehousing and credit card fees.
Assets, have not been allocated between the segments for management purposes, and as such, they are not presented here.
In 2000, 2001 and 2002, virtually all sales were made to customers in the United States of America. No individual geographical area accounted for more
than 10% of net sales in any of the periods presented. At December 31, 2001 and 2002, all of the Company's fixed assets were located in the United States of
America.
22. QUARTERLY RESULTS OF OPERATIONS (unaudited)
The following tables set forth our unaudited quarterly results of operations data for the eight most recent quarters for the period ended December 31,
2002. We have prepared this information on the same basis as the Consolidated Statements of Operations and the information includes all adjustments,
consisting only of normal recurring adjustments, that we consider necessary for a fair statement of our financial position and operating results for the quarters
presented.
Three Months Ended
(unaudited)
Mar. 31,
2001
June 30,
2001
Sept. 30,
2001
Dec. 31,
2001
Mar. 31,
2002
June 30,
2002
Sept. 30,
2002
Dec. 31,
2002
Consolidated Statement of Operations Data:
Direct revenue $ 8,282 $ 6,709 $ 7,860 $12,392 $ 10,029 $ 11,853 $ 20,759 $35,302
Commission revenue 501 698 884 1,882 1,659 2,230 2,857 5,633
Warehouse revenue 795 — — — 379 297 192 594
Total revenue 9,578 7,407 8,744 14,274 12,067 14,380 23,808 41,529
Cost of goods sold(1) 8,549 6,658 7,744 11,689 9,990 11,831 19,238 32,382
Gross profit 1,029 749 1,000 2,585 2,077 2,549 4,570 9,147
Operating expenses:
Sales and marketing expenses(2) 1,413 1,710 1,230 1,431 1,219 1,313 2,083 4,054
General and administrative expenses(2) 2,128 2,170 2,402 2,741 2,802 2,195 2,372 3,456
Amortization of goodwill 774 764 759 759 — — — —
Amortization of stock-based compensation 67 113 145 324 846 806 674 577
Total operating expenses 4,382 4,757 4,536 5,255 4,867 4,314 5,129 8,087
Operating income (loss) (3,353) (4,008) (3,536) (2,670) (2,790) (1,765) (559) 1,060
Interest income 72 315 26 48 22 49 229 103
Interest expense (62) (104) (278) (285) (240) (208) (7) (10)
Other income (expense), net 7 14 (2) 10 1 (442) 63 (66)
Net income (loss) (3,336) (3,783) (3,790) (2,897) (3,007) (2,366) (274) 1,087
Deemed dividend related to redeemable common stock (100) (101) (101) (102) (111) (106) (97) (92)
Deemed dividend related to beneficial conversion feature of preferred stock — — — — (6,607) — — —
Net income (loss) attributable to common shares $ (3,436) $ (3,884) $ (3,891) $ (2,999) $ (9,725) $ (2,472) $ (371) $ 995
Net income (loss) per common share
- basic $ (0.32) $ (0.35) $ (0.35) $ (0.27) $ (0.87) $ (0.20) $ (0.03) $ 0.07
- diluted $ (0.32) $ (0.35) $ (0.35) $ (0.27) $ (0.87) $ (0.20) $ (0.03) $ 0.06
Weighted average common shares outstanding
- basic 10,596 11,036 11,172 11,178 11,171 12,280 14,447 14,486
- diluted 10,596 11,036 11,172 11,178 11,171 12,280 14,447 15,696
(1) Amounts include stock based compensation of $ 5 $ 15 $ 19 $ 39 $ 102 $ 96 $ 93 $ 82
(2) Amounts exclude stock-based compensation as follows:
Sales and marketing expenses $ 1 $ 3 $ 3 $ 7 $ 22 $ 21 $ 21 $ 19
General and administrative expenses 66 110 142 317 824 785 653 558
$ 67 $ 113 $ 145 $ 324 $ 846 $ 806 $ 674 $ 577
23. FOLLOW-ON PUBLIC OFFERING
On February 18, 2003, the Company closed a follow-on public offering, pursuant to which it sold 1,500 shares of its common stock at a price of $15.00
per share. The offering resulted in net proceeds to the Company of approximately $20,935, net of $1,734 of issuance costs. As part of the offering, the
Company granted the underwriter the right to purchase an additional 225 shares within thirty days after the offering to cover over-allotments. On February 18,
2003, the underwriter purchased all 225 shares of stock for $3,206.