Overstock.Com (OSTK) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $5.90 million, or $ 0.23 a share in the quarter, against a net profit of $13.43 million, or $0.53 a share in the last year period. Revenue during the quarter grew 4.53 percent to $432.44 million from $413.68 million in the previous year period. Gross margin for the quarter expanded 141 basis points over the previous year period to 20.10 percent. Operating margin for the quarter stood at negative 0.53 percent as compared to a positive 4.31 percent for the previous year period.
Operating loss for the quarter was $2.31 million, compared with an operating income of $17.81 million in the previous year period.
"The retail business had a pre-tax income of $1.4 million in Q1 and remains fundamentally sound," said Overstock founder and chief executive officer Patrick M. Byrne. "Our Medici business cost us $8.0 million pre-tax in the first quarter, which included a $4.5 million impairment charge related to our investment in Peernova. However, I remain confident that we are doing the right thing for our shareholders by having Medici pursue a position of global leadership in blockchain technology."
Operating cash flow remains negativeOverstock.Com has spent $23.10 million cash to meet operating activities during the quarter as against cash outgo of $34.50 million in the last year period. The company has spent $12.49 million cash to meet investing activities during the quarter as against cash outgo of $21.24 million in the last year period.
The company has spent $11.10 million cash to carry out financing activities during the quarter as against cash inflow of $13.67 million in the last year period.
Cash and cash equivalents stood at $136.42 million as on Mar. 31, 2017, up 6.42 percent or $8.23 million from $128.19 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Overstock.Com has turned negative to $21.93 million on Mar. 31, 2017 from positive $2.47 million on Mar. 31, 2016. Current ratio was at 0.90 as on Mar. 31, 2017, down from 1.01 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 21 days for the quarter from 18 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 6 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
Debt increases substantially
Overstock.Com has witnessed an increase in total debt over the last one year. It stood at $58.19 million as on Mar. 31, 2017, up 98.35 percent or $28.85 million from $29.34 million on Mar. 31, 2016. Total debt was 13.19 percent of total assets as on Mar. 31, 2017, compared with 7.48 percent on Mar. 31, 2016. Debt to equity ratio was at 0.35 as on Mar. 31, 2017, up from 0.18 as on Mar. 31, 2016. 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: [email protected]
