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Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 29, 2008
(Dollars in thousands, except share and per share data)
The following unaudited pro-forma financial information for the years ended February 29, 2008, February 28, 2007, the three
months ended February 28, 2006 and the year ended November 30, 2005 represents the combined results of the Company's
operations as if the Thomson Accessory, Oehlbach, Incaar, Technuity, Thomson A/V and Terk acquisitions had occurred at
December 1, 2004. The unaudited pro-forma financial information does not necessarily reflect the results of operations that
would have occurred had the Company constituted a single entity during such periods.
Three
Year Year Months Year
Ended Ended Ended Ended
February 29, February 28, February 28, November 30,
2008 2007 2006 2005
(unaudited)
Net sales $ 948,031 $ 1,156,582 $ 277,847 $ 862,579
Net loss (1,972) (26,681) (7,209) (17,591)
Net loss per share-diluted $ (0.09) $ (1.18) $ (0.32) $ (0.80)
4) Receivables from Vendors
The Company has recorded receivables from vendors in the amount of $29,358 and $13,935 as of February 29, 2008 and
February 28, 2007, respectively. Receivables from vendors represent prepayments on product shipments and product
reimbursements.
5) Equity Investment
The Company has a 50% non-controlling ownership interest in Audiovox Specialized Applications, Inc. (“ASA”) which acts
as a distributor to specialized markets for specialized vehicles, such as RV’s, van conversions and marine vehicles, of
televisions and other automotive sound, security and accessory products. ASA’s fiscal year end is November 30, 2007,
however, the proportionate results of ASA as of and until February 29, 2008 have been recorded in the consolidated financial
statements.
The following represents summary information of transactions between the Company and ASA:
Three
Year Year Months Year
Ended Ended Ended Ended
February 29, February 28, February 28, November 30,
2008 2007 2006 2005
(unaudited)
Net sales $ 1,517 $ 742 $ 184 $ 1,404
Purchases 139 212 43 573
Royalty expense 899 656 200 871
February 29, February 28,
2008 2007
Accounts Receivable $ 310 $ 369
The following presents summary financial information for ASA. Such summary financial information has been provided
herein based upon the individual significance of this unconsolidated equity investment to the consolidated financial
information of the Company.
February 29, February 28,
2008 2007
(unaudited)
Current assets $ 26,344 $ 23,409
Non-current assets 4,710 4,716
Current liabilities 4,611 5,420
Source: AUDIOVOX CORP, 10-K, May 14, 2008