Audiovox 1998 Annual Report Download - page 26

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(In thousands)
1998 1997 1996
Cash flows from operating activities:
Net income (loss).................................................................................................. $ 2,972 $ 21,022 $ (26,469)
Adjustment to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Debt conversion expense............................................................................ —12,386 25,629
Depreciation and amortization.................................................................... 2,471 1,903 3,298
Provision for bad debt expense.................................................................. 581 1,300 429
Equity in income of equity investments ..................................................... (1,107) (1,468) (614)
Minority interest............................................................................................ (320) 1,623 767
Gain on sale of investments ........................................................................ (787) (37,471) (985)
Provision for (recovery of ) deferred income taxes, net............................ (902) (3,123) 468
Provision for unearned compensation........................................................ 53 135 297
Expense relating to issuance of warrants................................................... —106 —
Gain on disposal of property, plant and equipment, net ......................... (151) (9) (32)
Changes in:
Accounts receivable ......................................................................................... (27,940) 6,853 (21,848)
Receivable from vendor................................................................................... 4,266 — 532
Inventory............................................................................................................ 31,705 (36,823) 27,688
Accounts payable, accrued expenses and other current liabilities ............. 9,385 (2,855) 12,445
Income taxes payable ...................................................................................... (4,034) 2,181 5,360
Prepaid expenses and other, net .................................................................... 1,186 (2,659) (2,954)
Net cash provided by (used in) operating activities.............................. 17,378 (36,899) 24,011
Cash flows from investing activities:
Purchases of investment securities ..................................................................... (12,719) (4,706) —
Purchases of property, plant and equipment, net............................................. (4,932) (3,986) (2,805)
Net proceeds from sale of investment securities.............................................. 5,830 45,937 1,000
Proceeds from sale of equity collar .................................................................... 1,499 — —
Proceeds from distribution from equity investment.......................................... 1,125 450 317
Net cash provided by (used in) investing activities............................... (9,197) 37,695 (1,488)
Cash flows from financing activities:
Net repayments under line of credit agreements............................................. (5,047) (3,765) (14,040)
Net borrowings (repayments) under documentary acceptances..................... (3) 413 (3,620)
Principal payments on long-term debt............................................................... —— (5,029)
Debt issuance costs.............................................................................................. —(13) (392)
Principal payments on capital lease obligation................................................. (26) — (158)
Proceeds from issuance of Class A Common Stock ......................................... —2,328 —
Repurchase of Class A Common Stock.............................................................. (1,168) (2,421) —
Purchase of warrants ............................................................................................ (1,869) — —
Proceeds from release of restricted cash ........................................................... —— 5,959
Net cash used in financing activities ...................................................... (8,113) (3,458) (17,280)
Effect of exchange rate changes on cash .............................................................. (115) (243) 31
Net increase (decrease) in cash and cash equivalents.......................................... (47) (2,905) 5,274
Cash and cash equivalents at beginning of period .............................................. 9,445 12,350 7,076
Cash at end of period .............................................................................................. $ 9,398 $ 9,445 $ 12,350
See accompanying notes to consolidated financial statements.
24
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended November 30, 1998, 1997 and 1996
AUDIOVOX CORPORATION AND SUBSIDIARIES