Overstock.com 2006 Annual Report Download - page 85

Overstock.com, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Year ended December 31,
2004 2005 2006
Cash flows from operating activities of continuing operations:
Net loss $ (4,540) $ (24,918) $ (101,766)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities of continuing operations:
Loss from discontinued operations — 2,571 6,882
Depreciation and amortization 3,937 14,111 32,327
Realized loss (gain) on marketable securities (2) 3,351 (2,085)
Loss on disposition of property and equipment 34 1,457 599
Stock-based compensation 360 72 4,120
Stock-based compensation to consultants for services 1,278 (389) 23
Issuance of common stock from treasury — 443 787
Amortization of debt discount and deferred financing fees 147 620 417
Gain from retirement of convertible senior notes — (6,158) —
Changes in operating assets and liabilities, net of effect of acquisition and discontinued operations:
Accounts receivable, net 4,468 (4,306) (2,052)
Inventories, net (15,815) (46,711) 67,009
Prepaid inventory (9,376) 2,689 7,388
Prepaid expenses (1,807) (5,022) 1,004
Other long-term assets (944) (2,151) 496
Accounts payable 33,697 35,210 (35,200)
Accrued liabilities 13,601 23,068 (6,242)
Net cash provided by (used in) operating activities of continuing operations 25,038 (6,063)(26,293)
Cash flows from investing activities of continuing operations:
Change in restricted cash (1,602) 1,349 253
Purchases of marketable securities (92,877) (185,543) —
Sales of marketable securities 15,373 216,265 56,756
Expenditures for property and equipment (8,734) (44,642) (23,441)
Acquisition of Ski West — (25,111) —
Proceeds from the sale of property and equipment 20 — 1
Other investments — — (100)
Decrease in cash resulting from de-consolidation of variable interest entity — — (102)
Net cash (used in) provided by investing activities of continuing operations (87,820)(37,682)33,367
Cash flows from financing activities of continuing operatons:
Payments on capital lease obligations (658) (7,086) (2,957)
Drawdown on line of credit 1,000 11,868 86,681
Payments on line of credit (1,000) (11,868) (86,681)
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 113,064 — 64,406
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 4,288 7,315 2,534
Net cash provided by (used in) financing activities of continuing operations 232,592 (99,144)63,983
Effect of exchange rate changes on cash 22 86 34
Cash (used in) provided by operating activies of discontinued operations — (45) 1,581
Cash (used in) provided by investing activities of discontinued operations — (98)(566)
Net increase (decrease) in cash and cash equivalents 169,832 (142,946) 72,106
Less change in cash and cash equivalents from discontinued operations — 143 (1,016)
Cash and cash equivalents, beginning of year 28,846 198,678 55,875
Cash and cash equivalents from continuing operations, end of year $ 198,678 $ 55,875 $ 126,965
Supplemental disclosures of cash flow information:
Interest paid $ 165 $ 5,108 $ 3,677
Equipment and software acquired under capital leases 1,835 15,438 2,273
Asset retirement obligation — — 450
Deemed dividend on redeemable common stock 188 185 99
Lapse of rescission rights on redeemable common stock — 146 3,304
Settlement of purchased call options for treasury stock — 41,121 —
Promissory note received in exchange for deconsolidation of variable interest entity — — 6,702
Supplemental disclosure on non-cash investing activities:
Fair value of assets acquired — 26,447 —
Fair value of liabilities assumed — (1,336)—
Cash paid to purchase business $ — $ 25,111 $ —
The accompanying notes are an integral part of these consolidated financial statements.
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