Overstock.com 2012 Annual Report Download - page 57
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Table of Contents
Other income, net for the years ended December 31, 2012 and 2011 totaled $3.7 million and $278,000, respectively. The increase was primarily
due to an increase in Club O rewards breakage. Additionally, 2011 included a $1.2 million loss on early retirement of our finance obligations resulting
from a prepayment premium. There were no losses on early retirement of debt in 2012.
Our provision (benefit) for income taxes for the years ended December 31, 2012 and 2011 of $485,000 and ($142,000) is for federal alternative
minimum tax and certain income tax uncertainties, including interest and penalties. As of December 31, 2012 and December 31, 2011 we had federal net
operating loss carry forwards of approximately $174.1 million and $192.5 million, respectively, and state net operating loss carry forwards of
approximately $151.6 million and $176.1 million, respectively, which may be used to offset future taxable income. We are currently reviewing whether
we had any ownership changes. Ownership changes under Internal Revenue Code Section 382 would limit the amount of net operating losses that
could be used in any annual period. Our net operating loss carry forwards will begin to expire in 2018.
Based upon our historical experience, revenue typically increases during the fourth quarter because of the holiday retail season. The actual quarterly
results for each quarter could differ materially depending upon consumer preferences, availability of product and competition, among other risks and
uncertainties. Accordingly, there can be no assurances that seasonal variations will not materially affect our results of operations in the future. The
following table reflects our total net revenues for each of the quarters in 2012, 2011 and 2010 (in thousands):
The key factors that affected financial results for the year ended December 31, 2011 were declining revenue, lower gross margin, and increased
operating expenses (including increases in personnel-related and legal expenses), all of which resulted in a net loss for the year.
Revenue for 2011 decreased by $35.6 million (3%), compared to 2010. Visits to our website were down 1% and new customer growth fell 9%
which was partially offset by a slightly higher average order size. We believe our revenues were adversely impacted during the first and second quarters
when
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2012 $ 262,367 $ 239,536 $ 255,352 $ 342,034
2011 $ 265,470 $ 234,992 $ 239,738 $ 314,077
2010 $ 264,330 $ 231,253 $ 245,420 $ 348,870