Audiovox 1999 Annual Report Download - page 23

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21
AUDIOVOX
Consolidated
Years Ended November 30, 1997, 1998 and 1999
Audiovox Corporation and Subsidiaries
(In thousands)
1997 1998 1999
Cash flows from operating activities:
Net income ........................................................................................................................................................... $ 21,022 $ 2,972 $ 27,246
Adjustment to reconcile net income to net cash provided by (used in) operating activities:
Debt conversion expense ................................................................................................................................. 12,386 — —
Depreciation and amortization......................................................................................................................... 1,903 2,471 3,288
Provision for bad debt expense........................................................................................................................ 1,300 581 3,255
Equity in income of equity investments........................................................................................................... (1,468) (1,107) (4,257)
Minority interest............................................................................................................................................... 1,623 (320) (220)
Gain on sale of investments............................................................................................................................. (37,471) (787) (3,501)
Gain on issuance of subsidiary shares ............................................................................................................ — — (3,800)
Other-than-temporary decline in market value of investment security........................................................... — — 1,953
Deferred income tax benefit, net..................................................................................................................... (3,123) (902) (565)
Provision for unearned compensation.............................................................................................................. 135 53 —
Expense relating to issuance of warrants ....................................................................................................... 106 — —
Gain on disposal of property, plant and equipment, net................................................................................. (9) (151) 36
Changes in:
Accounts receivable ......................................................................................................................................... 6,853 (27,940) (109,889)
Receivable from vendor.................................................................................................................................... — 4,266 (8,371)
Inventory ........................................................................................................................................................... (36,823) 31,705 (64,533)
Accounts payable, accrued expenses and other current liabilities................................................................. (2,855) 9,385 56,615
Income taxes payable....................................................................................................................................... 2,181 (4,034) 4,022
Prepaid expenses and other, net...................................................................................................................... (2,659) 1,186 3,105
Net cash provided by (used in) operating activities .................................................................................... (36,899) 17,378 (95,616)
Cash flows from investing activities:
Purchases of investment securities ..................................................................................................................... (4,706) (12,719) (14,151)
Purchases of property, plant and equipment, net................................................................................................ (3,986) (4,932) (4,822)
Net proceeds from sale of investment securities................................................................................................ 45,937 5,830 11,201
Proceeds from sale of equity collar ..................................................................................................................... — 1,499 —
Proceeds from distribution from equity investment ............................................................................................ 450 1,125 1,648
Proceeds from issuance of subsidiary shares...................................................................................................... — — 5,000
Net cash provided by (used in) investing activities..................................................................................... 37,695 (9,197) (1,124)
Cash flows from financing activities:
Net borrowings (repayments) under line of credit agreements .......................................................................... (3,765) (5,047) 93,428
Net borrowings (repayments) under documentary acceptances......................................................................... 413 (3) (1,917)
Debt issuance costs.............................................................................................................................................. (13) — (1,175)
Principal payments on capital lease obligation................................................................................................... — (26) (19)
Proceeds from issuance of Class A common stock ............................................................................................. 2,328 — —
Proceeds from exercise of stock options and warrants ...................................................................................... — — 3,449
Repurchase of Class A common stock................................................................................................................. (2,421) (1,168) (882)
Purchase of warrants............................................................................................................................................ — (1,869) —
Net cash provided by (used in) financing activities..................................................................................... (3,458) (8,113) 92,884
Effect of exchange rate changes on cash................................................................................................................ (243) (115) (15)
Net decrease in cash................................................................................................................................................ (2,905) (47) (3,871)
Cash at beginning of period..................................................................................................................................... 12,350 9,445 9,398
Cash at end of period............................................................................................................................................... $ 9,445 $ 9,398 $ 5,527
See accompanying notes to consolidated financial statements.
STATEMENTS OF CASH FLOWS