SALT LAKE CITY, March 14 /PRNewswire-FirstCall/ -- Overstock.com, Inc.
(Nasdaq: OSTK) filed its Form 10-K today for the year ended December 31, 2006.
This release is to explain the differences between the 2006 financial results
reported in the Form 10-K and the preliminary unaudited 2006 financial results
previously issued by press release on February 5, 2007.
The primary changes to the financial results and the related financial
statements are the result of our decision to sell our travel subsidiary,
OTravel.com. We have entered into a non-binding letter of intent to sell this
business to a third-party. As a result, our year-end 2005 and 2006 balance
sheets have been reclassified to show the travel subsidiary's assets and
liabilities as "held for sale." In addition, on our income statement, the
operations of the travel subsidiary (all revenue and expenses) have been
removed from our results and reported below our net loss as "discontinued
operations." As part of this process, we evaluated the goodwill related to
the original purchase of our travel subsidiary and determined that it was
subject to an impairment of approximately $4.5 million as of December 31,
2006. This, along with approximately $400,000 of other miscellaneous
adjustments, increased our consolidated net loss attributable to common shares
to $101.9 million, or $(5.01) per share from the previously reported $97.0
million loss, or $(4.77) per share.
Full details of the reclassification are available in Footnote 5
(page F-17) of the Consolidated Financial Statements in Form 10-K for the year
ended December 31, 2006 that we filed with the SEC today.
About Overstock.com
Overstock.com, Inc. is an online "closeout" retailer offering discount,
brand-name merchandise for sale over the Internet. The company offers its
customers an opportunity to shop for bargains conveniently, while offering its
suppliers an alternative inventory liquidation distribution channel.
Overstock.com, headquartered in Salt Lake City, is a publicly traded company
listed on the NASDAQ Global Market System and can be found online at
http://www.overstock.com.
Overstock.com is a registered trademark of Overstock.com, Inc.
This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements include, but
are not limited to, statements regarding the sale of our travel subsidiary, as
well as all such other risks as identified in our Form 10-K for the year ended
December 31, 2006, and all our subsequent filings with the Securities and
Exchange Commission, which contain and identify important factors that could
cause the actual results to differ materially from those contained in our
projections or forward-looking statements.
SOURCE: Overstock.com, Inc.
CONTACT:
Media,
Jared Matkin,
+1-801-947-3880,
jmatkin@overstock.com,
or
Investors,
Kevin Moon,
+1-801-947-3282,
kmoon@overstock.com,
both of Overstock.com, Inc.
.
