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Full Version: Overstock Q2 Sales Down 6% to $149 Million, Auction GMV Tumbles to $3.7 Million
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Q2 2007 auction GMV fell to $3.7 million from $6.8 million in Q2 2006

Quote: Dear Investor:

During Q2 we generated $14.9 million positive operating cash flow and $2.0 million positive EBITDA, excluding restructuring costs ("EBITDA excluding restructuring costs" is a non-GAAP number: see the reconciliation to operating income in the "Key financial and operating metrics" section below). Additionally, we generated $9.4 million positive trailing 12-month ("TTM") operating cash flow. Our Q2 gross margins of 17.7% were a historical best for us. At this year's start I suggested keeping an eye on contribution metrics (gross profits minus sales and marketing expenses): in Q2 our contribution margin was 12.3% (another record for us), and contribution profit grew 76% versus Q2 2006.

Two years is long to hold one's breath, but sweet indeed is the air of $14.9 million positive operating cash flow.

    Some data from the quarter:
    --  Revenue:  $149.0 million for Q2 2007, down 6% from Q2 2006
    --  Gross margin:  17.7%, up from 14.0% in 2006 (and 16.0% in Q1)
    --  Gross profits:  $26.3 million, up 18% from 2006
    --  Contribution margin:  12.3%, up from 6.5% in 2006 (and 8.9% in Q1)
    --  EBITDA (non-GAAP, excludes restructuring): $2.0 million vs. $(7.5)
        million in 2006
    --  Operating loss before restructuring (non-GAAP): $7.3 million
    --  Cash flow from operations (TTM): $9.4 million, up from $(39.8 ) million
        in 2006
    --  Net loss: $13.8 million or $0.58 loss per share

    I look forward to our call, and as always, remain,

                             Your humble servant,

                               Patrick M. Byrne

full earnings announcement: http://investors.overstock.com/phoenix.zhtml?c=131091&p=irol-newsArticle&ID=1034043&highlight=