Audiovox 2003 Annual Report Download - page 77

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Years Ended November 30, 2001, 2002 and 2003
(In thousands)
2001 2002 2003
−−−−−−−−− −−−−−−−−− −−−−−−−−−
Note 2
Cash flows from operating activities:
Net income (loss) $ (7,198) $ (14,040) $ 11,239
Adjustments to reconcile net income (loss) to net cash flows (used in)
provided by operating activities
Depreciation and amortization 4,476 4,780 4,581
Provision for bad debt expense 1,936 4,884 566
Equity in income of equity investees (3,586) (1,779) (3,279)
Minority interest (657) (5,055) 390
Gain on issuance of subsidiary shares −− (14,269) −−
Other−than−temporary decline in market value of investment security −− 1,158 21
Deferred income tax expense (benefit), net (3,332) 9,904 (2,468)
(Gain) loss on disposal of property, plant and equipment, net (18) (69) 274
Tax benefit on stock options exercised −− −− 216
Cumulative effect of a change in accounting for negative goodwill −− (240) −−
Non−cash stock compensation −− −− 297
Changes in operating assets and liabilities, net of assets and liabilities
acquired
Accounts receivable 35,797 48,555 (64,553)
Inventory (67,735) (64,548) 94,341
Receivables from vendors (1,263) (7,346) 6,348
Prepaid expenses and other assets 1,863 (7,983) (2,693)
Investment securities−trading (1,635) (125) (1,312)
Accounts payable, accrued expenses and other current liabilities (29,745) 66,644 (20,160)
Income taxes payable (2,979) 3,599 5,188
−−−−−−−−− −−−−−−−−− −−−−−−−−−
Net cash provided by (used in) operating activities (74,076) 24,070 28,996
−−−−−−−−− −−−−−−−−− −−−−−−−−−
Cash flows from investing activities:
Purchases of property, plant and equipment (2,869) (3,159) (5,454)
Proceeds from sale of property, plant and equipment 261 7,250 265
Proceeds from distribution from an equity investee 4,634 947 1,316
Net proceeds from issuance of subsidiary shares −− 22,158 −−
Proceeds from sale of assets to equity investee −− −− 3,600
Purchase of acquired business, net of acquired cash −− (7,106) (40,046)
−−−−−−−−− −−−−−−−−− −−−−−−−−−
Net cash provided by (used in) investing activities 2,026 20,090 (40,319)
−−−−−−−−− −−−−−−−−− −−−−−−−−−
Cash flows from financing activities:
Borrowings from bank obligations 901,628 403,043 277,983
Repayments on bank obligations (832,329) (454,300) (278,544)
Proceeds from issuance of convertible subordinated debentures −− 8,107 −−
Payment of dividend to minority shareholder of subsidiary (1,034) −− −−
Principal payments on capital lease obligation (29) (55) (61)
Proceeds from exercise of stock options and warrants 2,317 132 674
Repurchase of Class A common stock (1,382) (1,125) −−
Proceeds from issuance of long−term debt −− −− 12,913
Principal payments on subordinated debt (486) −− −−
−−−−−−−−− −−−−−−−−− −−−−−−−−−
Net cash provided by (used in) financing activities 68,685 (44,198) 12,965
−−−−−−−−− −−−−−−−−− −−−−−−−−−
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