Audiovox 1999 Annual Report Download - page 37

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AUDIOVOX
the segments based upon estimates made by management. Segment
identifiable assets are those which are directly used in or identified to
segment operations.
During the year ended November 30, 1997, one customer of the
Wireless segment accounted for approximately 11.3% of the Company’s
1997 sales. During the year ended November 30, 1998, two customers of
the Wireless segment accounting for approximately 18.3% and 14.9% of
the Company’s 1998 sales. During the year ended November 30, 1999,
three customers of the Wireless segment accounted for approximately
19.6%, 14.9% and 12.7% of the Company’s 1999 sales. No customers in
the Electronics segment exceeded 10% of the consolidated sales in fiscal
1997, 1998 or 1999.
Consolidated
Wireless Electronics Corporate Totals
1997
Net sales......................................... $444,400 $193,910 $ 772 $ 639,082
Intersegment sales
(purchases), net........................... 6 (6) — —
Interest income............................... 46 31 1,448 1,525
Interest expense ............................. 4,551 3,169 (5,546) 2,174
Depreciation and amortization ....... 775 630 498 1,903
Debt conversion expense ............... — — 12,686 12,686
Income (loss) before provision
for income tax............................. 11,582 8,002 23,858 43,442
Total assets..................................... 138,136 86,632 65,059 289,827
Non-cash items:
Provision for bad debt expense... 354 934 12 1,300
Deferred income tax benefit....... — — 3,123 3,123
Minority interest......................... — — 1,623 1,623
Capital expenditures................... 1,340 744 1,902 3,986
1998
Net sales......................................... $441,590 $175,105 $ — $ 616,695
Intersegment sales
(purchases), net........................... (1,125) 1,125 — —
Interest income............................... 215 165 517 897
Interest expense ............................. 5,536 4,068 (5,173) 4,431
Depreciation and amortization ....... 877 570 1,024 2,471
Income (loss) before provision
for income tax............................. (1,786) 5,937 (350) 3,801
Total assets..................................... 138,136 79,597 61,946 279,679
Non-cash items:
Provision for bad debt expense... 316 533 (268) 581
Deferred income tax benefit....... — — 902 902
Minority interest......................... — — (320) (320)
Capital expenditures................... 1,003 475 3,454 4,932
1999
Net sales ....................................... $929,303 $230,234 $ — $1,159,537
Intersegment sales
(purchases), net ....................... (1,149) 1,449 — —
Interest income............................ 65 80 793 938
Interest expense.......................... 6,098 3,268 (5,307) 4,059
Depreciation and
amortization.............................. 987 748 1,553 3,288
Income (loss) before
provision for income tax........ 31,255 11,296 172 42,723
Total assets................................... 256,954 122,163 96,229 475,346
Non-cash items:
Provision for bad
debt expense ........................
1,914 705 636 3,255
Deferred income tax benefit.. — — 565 565
Minority interest...................... — — (220) (220)
Capital expenditures .............. 1,747 1,211 1,864 4,822
Net sales and long-lived assets by location for the years ended
November 30, 1997, 1998 and 1999 were as follows.
Net Sales Long-Lived Assets
1997 1998 1999 1997 1998 1999
United States.... $499,417 $531,307 $1,059,536 $47,694 $50,469 $68,126
Canada.............. 18,323 15,789 23,146 — — —
Argentina.......... 39,832 27,354 22,831 — — —
Peru................... 7,426 10,514 9,913 — — —
Portugal............. 14,028 2,024 — — — —
Malaysia........... 31,660 7,592 7,780 1,903 1,348 1,275
Venezuela.......... 10,867 14,358 22,853 696 1,366 1,387
Mexico, Central
America and
Caribbean...... 10,493 7,289 10,568 — — —
Other foreign
countries....... 7,036 468 2,910 — — —
Total .................. $639,082 $616,695 $1,159,537 $50,293 $53,183 $70,788
(21) Contingencies
The Company is a defendant in litigation arising from the normal con-
duct of its affairs. The impact of the final resolution of these matters on
the Company’s results of operations or liquidity in a particular reporting
period is not known. Management is of the opinion, however, that the lit-
igation in which the Company is a defendant is either subject to product
liability insurance coverage or, to the extent not covered by such insur-
ance, will not have a material adverse effect on the Company’s consoli-
dated financial position.
The Company has guaranteed certain obligations of its equity invest-
ments and has established standby letters of credit to guarantee the bank
obligations of Audiovox Communications Sdn. Bhd. and Audiovox
Venezuela (Note 19(b)).
(22) Subsequent Event
The Company is anticipating selling 2,000,000 shares of its Class A
Common Stock to the public during the first quarter of fiscal 2000. In con-
nection with this offering, the Company has recorded $600 in deferred
costs which have been included in prepaid expenses and other assets on
the accompanying consolidated balance sheet at November 30, 1999.