Overstock.com(OSTK) - 2021 Q3 - Quarterly Report

Financial Position - Total current assets as of September 30, 2021, were $564,672 thousand, a decrease from $582,740 thousand as of December 31, 2020, reflecting a decline of approximately 3%[17] - Cash and cash equivalents increased to $512,188 thousand from $495,425 thousand, representing a growth of about 3%[17] - Total assets reached $1,064,917 thousand, up from $830,214 thousand, indicating an increase of approximately 28%[17] - Total liabilities decreased to $355,803 thousand from $393,888 thousand, a reduction of about 10%[17] - Stockholders' equity rose significantly to $709,114 thousand from $436,326 thousand, marking an increase of approximately 63%[20] - The company reported an accumulated deficit of $(168,803) thousand, improved from $(525,233) thousand, indicating a reduction in losses[20] - The company has a deferred tax asset of $37,955 thousand, up from $37 thousand, showing a significant increase[17] - The company’s equity securities measured at fair value increased to $330,196 thousand from $1,412 thousand, a substantial rise[17] - Total stockholders' equity increased to $709.1 million as of September 30, 2021, up from $419.3 million at the end of the same period in 2020[31] - The balance of total equity attributable to stockholders of Overstock.com, Inc. was $709.1 million at the end of the period, reflecting strong financial health[31] Revenue and Profitability - Net revenue for the three months ended September 30, 2021, was $689.39 million, a decrease of 3.9% from $717.70 million in the same period of 2020[24] - Gross profit for the nine months ended September 30, 2021, was $485.06 million, compared to $420.83 million for the same period in 2020, representing a 15.3% increase[24] - Operating income for the three months ended September 30, 2021, was $28.85 million, down 26% from $38.86 million in the same period of 2020[24] - Consolidated net income attributable to stockholders for the three months ended September 30, 2021, was $30.43 million, an increase of 30.5% from $23.39 million in the same period of 2020[24] - Basic net income per share for continuing operations was $0.64 for the three months ended September 30, 2021, compared to $0.81 for the same period in 2020[24] - Comprehensive income for the three months ended September 30, 2021, was $30.43 million, compared to $21.23 million for the same period in 2020, marking a 43.3% increase[26] - Consolidated net income for the nine months ended September 30, 2021, was $356.1 million, a significant increase from $36.0 million in the same period of 2020[33] - The company reported a net loss from discontinued operations of $0 for the three months ended September 30, 2021, compared to a loss of $16.68 million in the same period of 2020[24] Expenses and Cash Flow - Total operating expenses for the nine months ended September 30, 2021, were $393.11 million, up from $346.48 million in the same period of 2020, reflecting a 13.4% increase[24] - The company reported a net cash provided by operating activities of $82.96 million for the nine months ended September 30, 2021, compared to $198.71 million for the same period in 2020[33] - The company experienced a net cash used in investing activities of $81.76 million for the nine months ended September 30, 2021, compared to $15.43 million in the same period of 2020[35] - Cash payments included in operating cash flows from lease arrangements were $5,007,000 for the nine months ended September 30, 2021[75] - Cash provided by operating activities for the nine months ended September 30, 2021, was $100.1 million, a decrease from $221.8 million in the same period of 2020[161] Stock and Shareholder Information - The weighted average shares of common stock outstanding increased to 43.01 million for the three months ended September 30, 2021, from 42.76 million in the same period of 2020[29] - The total number of Series A-1 preferred shares issued and outstanding remained at 4,204 for the three months ended September 30, 2021[29] - The Series A-1 preferred stockholders are entitled to an annual cash dividend of $0.16 per share, with no arrearages in cumulative preferred dividends[92] - The company announced a stock repurchase program on August 17, 2021, with an aggregate repurchase price not to exceed $100 million through December 31, 2023[96] - The maximum number of shares that can be issued under the 2021 ESPP is 3,000,000 shares, with $234,000 recognized in share-based compensation expense for the three and nine months ended September 30, 2021[105] Business Operations and Strategy - Overstock.com is focused on expanding its market presence and enhancing its technology offerings to drive future growth[12] - The company operates primarily in the retail segment, with substantial revenue generated from e-commerce product sales in the United States[119] - Current business strategies include improving product findability and expanding market share in Canada and government sectors[124] - The company aims to enhance customer experience through improved search and navigation on its website[124] - The company’s supply chain allows for direct shipping to customers from suppliers or warehouses, supporting its e-commerce operations[122] Market Risks and Legal Matters - The company is cooperating with SEC investigations and has provided all requested documents related to various subpoenas[83] - The company intends to vigorously defend against multiple class action lawsuits filed against it, with no estimates of possible losses available at this time[84][85] - The company is exposed to market risks including interest rate changes and foreign currency fluctuations, but most sales and operating expenses are denominated in U.S. dollars[172] - The company faces risks related to the ongoing COVID-19 pandemic, including potential impacts on technology, security, and employee productivity[187] - The company is subject to various laws and regulations that may increase expenses and impede growth, particularly as it expands its retail business outside the U.S.[170] Deferred and Unearned Revenue - Unearned revenue at September 30, 2021, was $65.206 million, a decrease from $72.165 million at December 31, 2020, with a deferral of revenue of $55.938 million during the period[108] - Breakage income related to Club O Reward dollars was $2.5 million for the three months ended September 30, 2021, compared to $1.6 million for the same period in 2020[108]