Overstock.com, Inc. (OSTK) saw its loss widen to $3.10 million, or $0.12 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.07 million, or $0.08 a share. Revenue during the quarter grew 12.87 percent to $441.56 million from $391.21 million in the previous year period. Gross margin for the quarter contracted 47 basis points over the previous year period to 18.05 percent. Operating margin for the quarter stood at negative 1.14 percent as compared to a negative 0.86 percent for the previous year period.
Operating loss for the quarter was $5.05 million, compared with an operating loss of $3.37 million in the previous year period.
"The retail business is re-accelerating and is fundamentally sound," said Overstock founder and chief executive officer Patrick M. Byrne. "It had a pre-tax loss of ($0.9) million in Q3, which included $3.9 million of impairment and bad debt expense related to an international minority investment. Our Medici business cost us $3.0 million pre-tax this quarter, but that was well worth it as we achieve real progress in our blockchain and fintech initiatives that others have yet to demonstrate."
Operating cash flow remains negative
Overstock.com, Inc. has spent $15.44 million cash to meet operating activities during the nine month period as against cash outgo of $36.40 million in the last year period. The company has spent $65.17 million cash to meet investing activities during the nine month period as against cash outgo of $66.24 million in the last year period.
Cash flow from financing activities was $34.81 million for the nine month period, up 1,436.36 percent or $32.55 million, when compared with the last year period.
Cash and cash equivalents stood at $124.47 million as on Sep. 30, 2016, up 53.16 percent or $43.20 million from $81.27 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Overstock.com, Inc. was negative $12.53 million on Sep. 30, 2016 compared with negative $24.36 million on Sep. 30, 2015. Current ratio was at 0.94 as on Sep. 30, 2016, up from 0.86 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 13 days for the quarter from 8 days for the last year period. Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 2 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding was almost stable at 19 days for the quarter, when compared with the previous year period.
Debt increases substantially
Overstock.com, Inc. has witnessed an increase in total debt over the last one year. It stood at $49.82 million as on Sep. 30, 2016, up 4,336.06 percent or $48.69 million from $1.12 million on Sep. 30, 2015. Long-term debt stood at $47.58 million as on Sep. 30, 2016. Total debt was 11.74 percent of total assets as on Sep. 30, 2016, compared with 0.34 percent on Sep. 30, 2015. Debt to equity ratio was at 0.31 as on Sep. 30, 2016, up from 0.01 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
