Audiovox 1999 Annual Report Download - page 12

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Information Technology Over the past several years, we have
made substantial investments in information technology to improve our
operations, prepare us for an increase in international business and
position us for future growth. In 1999, our sales grew by 88% without
placing a strain on our systems and operations. We believe that we
are prepared for the anticipated growth over the next several years.
In addition, we have invested in our Intranet and Internet capabilities
and this spring expect to turn on a new and vastly improved web site
for the Company.
Follow On Offering In February 2000, the Company completed a
follow on offering of 3,565,000 Class A common shares at a price to
the public of $45.00 per share. Of the 3,565,000 shares sold, the
Company offered 2,300,000 and 1,265,000 were offered by selling
shareholders. Audiovox received approximately $97.5 million after
deducting expenses. We will use these net proceeds to repay a portion
of amounts outstanding under our revolving credit facility, any portion
of which can be reborrowed at any time, and for general purposes.
The Company did not receive any of the net proceeds from the sale of
shares by the selling shareholders.
Credit Facility During 1999 the Company increased its bank credit
facility to $250.0 million, up from $112.5 million with an expiration date
of July 2004. Chase Manhattan bank is the agent for this new revolving
line of credit. This latest increase to our bank lines provides us with
additional resources to fund our future business plans.
Equity Investments Audiovox Corporation maintains equity
investments in unconsolidated entities that it utilizes to augment oper-
ations and distribution. Talk Corporation, a 31% investment, provides
us with wireless products. Automotive Specialty Applications (ASA)
provides us the ability to market products to the specialized van, truck,
RV and agricultural industries. Our 20% ownership of Bliss-tel in
Thailand provides a distribution outlet for our product in that country.
AUDIOVOX
10
Report of
THE CFO
Michael Stoehr
Senior Vice President &
Chief Financial Officer