Audiovox 2003 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2003 Audiovox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 159

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159

Previously reported operating income (loss) has remained unchanged by this
adoption. For purposes of comparability, these reclassifications have been
reflected retroactively for all periods presented.
The net sales and percentage of net sales by product line and marketing
group for the fiscal years ended November 30, 2001, 2002 and 2003 are reflected
in the following table. Certain reclassifications and recaptionings have been
made to the data for periods prior to fiscal 2003 in order to conform to fiscal
2003 presentation.
Fiscal Years Ended November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2001 (1) 2002 2003
−−−−−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−−−
Net sales:
Wireless
Products $ 948,921 74.3% $ 700,658 63.7% $ 787,297 59.4%
Activation commissions 26,879 2.1 24,393 2.2 16,652 1.3
Residual fees 2,396 0.2 2,187 0.2 2,261 0.2
Other 692 0.1 420 0.1 −− −−
−−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−−
Total Wireless 978,888 76.7 727,658 66.1 806,210 60.9
−−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−−
Electronics
Mobile electronics 157,706 12.4 229,327 20.8 294,519 22.2
Sound 57,456 4.5 56,281 5.1 78,413 5.9
Consumer electronics 80,380 6.3 86,472 7.9 144,240 10.9
Other 2,160 0.1 644 0.1 520 0.1
−−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−−
Total Electronics 297,702 23.3 372,724 33.9 517,692 39.1
−−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−− −−−−−−−−−− −−−−−−
Total $1,276,591 100.0% $1,100,382 100.0% $1,323,902 100.0%
========== ====== ========== ====== ========== ======
(1) See Note (2) of Notes to Consolidated Financial Statements.
Management Key Indicators
Management reviews the following financial and non−financial indicators to
assess the performance of the Company's operating results:
o Net Sales by product class − Management reviews this indicator in
order to determine sales trends for certain product classes as this
indicator is directly impacted by unit sales and new product
introductions.
o Gross profit margin − This indicator allows management to assess the
effectiveness of product introductions, timing of product acceptances
and significance of inventory write− downs.
o Operating Expenses as a % of net sales − This indicator is reviewed to
determine the efficiency of operating expenses in relation to the
Company's operations and identify significant fluctuations or possible
future trends.
o Inventory and Accounts Receivable turnover − Inventory purchases and
accounts receivable collections are two significant liquidity factors
42