Overstock.com 2005 Annual Report Download - page 77

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Overstock.com, Inc.
Consolidated Statements of Cash Flows
Year ended December 31,
2003 2004 2005
(in thousands)
Cash flows from operating activities:
Net loss $ (11,548 ) $ (4,540 ) $ (24,918 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 2,325 3,937 15,614
Realized loss (gain) on marketable securities (15 ) (2 ) 3,351
Loss on disposition of property and equipment — 34 1,457
Amortization of unearned stock-based compensation 846 360 72
Stock-based compensation to consultants for services 177 1,278 (389 )
Stock issued to employees 21 — —
Issuance of common stock from treasury — — 443
Amortization of debt discount and deferred financing fees — 147 620
Gain from retirement of convertible senior notes — — (6,158 )
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable, net (3,189 ) 4,468 (5,109 )
Inventories, net (16,311 ) (15,815 ) (46,711 )
Prepaid inventory (1,584 ) (9,376 ) 2,689
Prepaid expenses (666 ) (1,807 ) (4,939 )
Other long-term assets (7 ) (944 ) (2,151 )
Accounts payable 16,632 33,697 36,455
Accrued liabilities 2,907 13,601 23,566
Net cash provided by (used in) operating activities (10,412 )25,038 (6,108 )
Cash flows from investing activities:
Change in restricted cash — (1,602 ) 1,349
Purchases of marketable securities (41,363 ) (92,877 ) (185,543 )
Sales of marketable securities 51,388 15,373 216,265
Expenditures for property and equipment (6,707 ) (8,734 ) (44,740 )
Acquisition of Ski West (net of cash acquired) — — (24,620 )
Proceeds from the sale of property and equipment — 20 1
Expenditures for other long-term assets (172 )— —
Net cash provided by (used in) investing activities 3,146 (87,820 )(37,288 )
Cash flows from financing activities:
Payments on capital lease obligations (141 ) (658 ) (7,086 )
Drawdown on line of credit — 1,000 11,868
Payments on line of credit — (1,000 ) (11,868 )
Payments of deferred financing fees — (301 ) —
Proceeds from the issuance of convertible senior notes — 116,199 —
Payments to retire convertible senior notes — — (35,670 )
Issuance of common stock in offerings, net of issuance costs 23,968 113,064 —
Purchase of treasury stock — — (24,133 )
Purchased call options for purchase of treasury stock — — (47,507 )
Settlement of call options for cash — — 7,937
Exercise of stock options and warrants 1,227 4,288 7,315
Net cash provided by (used in) financing activities 25,054 232,592 (99,144 )
Effect of exchange rate changes on cash (1 )22 86