Audiovox 2000 Annual Report Download - page 15

The net sales and percentage of net sales by product line and marketing group for the fiscal years ended November 30, 1998, 1999 and 2000 are reflected
in the following table. Certain reclassifications and recaptionings have been made to the data for periods prior to fiscal 2000 in order to conform to fiscal
2000 presentation.
Fiscal Year Ended November 30,
1998 1999 2000
(Dollars in thousands)
Net sales:
Wireless
Products $401,184 65.1% $ 883,537 76.2% $1,390,026 81.7%
Activation commissions 21,438 3.5 24,412 2.1 28,983 1.7
Residual fees 3,592 0.6 2,939 0.3 1,852 0.1
Other 5,526 0.9 6,197 0.5 3,619 0.2
Total Wireless 431,740 70.0 917,085 79.1 1,424,480 83.7
Electronics
Mobile electronics 86,736 14.1 117,500 10.1 135,074 7.9
Sound 82,763 13.4 82,843 7.1 77,825 4.6
Consumer electronics 11,827 1.9 38,150 3.3 60,968 3.6
Other 3,629 0.6 3,959 0.3 3,949 0.2
Total Electronics 184,955 30.0 242,452 20.9 277,816 16.3
Total $616,695 100.0% $1,159,537 100.0% $1,702,296 100.0%
(Dollars in thousands, except share and per share data)
AUDIOVOX CORPORATION AND SUBSIDIARIES
AUDIOVOX 13
Fiscal 1999 Compared to Fiscal 2000
CONSOLIDATED RESULTS
Net sales for fiscal 2000 were $1,702,296, a 46.8% increase from net
sales of $1,159,537 in fiscal 1999. Wireless Group sales were $1,424,480
in fiscal year 2000, a 55.3% increase from sales of $917,085 in fiscal
1999. Unit sales of wireless handsets increased 46.9% to approximately
8,909,000 units in fiscal 2000 from approximately 6,067,000 units in fiscal
1999. The average selling price of the Company’s handsets increased to
$150 per unit in fiscal 2000 from $140 per unit in fiscal 1999.
Electronics Group sales were $277,816 in fiscal 2000, a 14.6% increase
from sales of $242,452 in fiscal 1999. This increase was largely due to
increased sales in the mobile video and consumer electronics product
lines. Sales by the Company’s international subsidiaries increased 2.8%
in fiscal 2000 to approximately $25.8 million as a result of improvements
in the Malaysian subsidiary.
Gross profit margin for fiscal 2000 was 9.0%, compared to 11.6% in fiscal
1999. This decline in profit margin resulted primarily from an $8,152 ana-
log inventory cost reduction and margin reductions in Wireless attribut-
able to increased sales of digital handsets, which have lower margins.
Due to specific technical requirements of individual carrier customers,
carriers place large purchase commitments for digital handsets with
Wireless, which results in a lower selling price which then lowers gross
margins. Gross profit increased 13.2% to $152,368 in fiscal 2000, versus
$134,628 in fiscal 1999.
Operating expenses were $113,844 in fiscal 2000, compared to $96,391 in
fiscal 1999. As a percentage of net sales, operating expenses decreased
to 6.7% in fiscal 2000 from 8.3% in fiscal 1999. Operating income for fis-
cal 2000 was $38,524, an increase of $287 from fiscal 1999.
During 2000, the Company also recorded an extraordinary gain of $2,189
in connection with the extinguishment of debt.
Net income for fiscal 2000 was $27,229 compared to $27,246 in fiscal
1999. Earnings per share before extraordinary item were $1.17, basic, and
$1.11, diluted, and $1.27, basic and $1.21, diluted after extraordinary item,
in fiscal 2000 compared to $1.43, basic and $1.39, diluted, in fiscal 1999.
WIRELESS RESULTS
The following table sets forth for the fiscal years indicated certain state-
ments of income data for Wireless expressed as a percentage of net sales:
1999 2000
Net sales:
Wireless products $883,537 96.3% $1,390,026 97.6%
Activation commissions 24,412 2.7 28,983 2.0
Residual fees 2,939 0.3 1,852 0.1
Other 6,197 0.7 3,619 0.3
Total net sales 917,085 100.0 1,424,480 100.0
Gross profit 81,679 8.9 93,184 6.5
Total operating expenses 44,248 4.8 54,524 3.8
Operating income 37,431 4.1 38,660 2.7
Other expense (6,176) 0.7 (7,663) (0.5)
Pre-tax income $ 31,255 3.4% $ 30,997 2.2%
Wireless is composed of ACC and Quintex, both subsidiaries of the Company.