Overstock.com (OSTK), an online retailer, has announced a 48.38 percent drop in profit for the quarter ended Jun. 30, 2014. The company earned $1.91 million or $0.08 a share in the second-quarter compared with $3.70 million or $0.15 a share a year ago. Analysts on average had predicted net income of $0.10 a share.
Revenue during the second-quarter climbed 13.42 percent to $332.54 million from $293.20 million in the last year period.
Gross margin contracted by 89 basis points over the last year period to 18.83 percent. Total expenses as a percentage of revenues increased to 99.46 percent from 98.58 percent in the same period last year. That has resulted in contraction of 88 basis points in operating margins to 0.54 percent.
The company reported operating income of $1.79 million, compared with $4.16 million in the previous year period.
Cash Flow
Overstock.com has spent $29.30 million cash to meet operating activities during the first half, as against cash inflow of $3.52 million in the last year period.
The company has spent $15.07 million cash to meet investing activities during the first half, as against cash outgo of $9.24 million in the last year period. It has made net capital expenditure of $15.13 million during the first half, which was higher by 62.79 percent or $5.84 million, from a year ago.
The company has spent $2.42 million cash to meet financing activities during the first half, as against cash outgo of $3.09 million in the last year period. It has made net repayment of $0.32 million debt during the first half. It has spent net of $1.95 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $101.88 million, up 20.23 percent or $17.14 million from Jun. 30, 2013.
Working Capital
Overstock.com has witnessed an increase in the working capital over the last one year. The company's working capital stood at $27.29 million as at Jun. 30, 2014, up $13.19 million or 93.48 percent from $14.10 million on Jun. 30, 2013. It registered an increase in current ratio to 1.19 as at Jun. 30, 2014 from 1.11 on Jun. 30, 2013.
