Audiovox 2004 Annual Report Download - page 29

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As of and for the Years Ended November 30,
2000(2) 2001(2) 2002 2003(3) 2004
−−−−−−−−− −−−−−−−−−− −−−−−−−−−− −−−−−−−−−−−− −−−−−−−−
Net income per common share from
continuing operations:
Basic $ 0.28 $ 0.13 $ 0.04 $ 0.36 $ 0.00
Diluted 0.26 0.13 0.04 0.36 0.00
Net income (loss) per common share:
Basic 1.29 (0.33) (0.69) 0.51 3.52
Diluted 1.22 (0.33) (0.69) 0.51 3.45
Consolidated Balance Sheet Data
Total assets $ 517,586 $ 544,497 $ 555,365 $ 583,360 $ 543,338
Working capital 305,369 284,166 292,687 304,354 362,018
Long−term obligations, less current
installments 23,468 10,040 18,250 29,639 18,598
Stockholders' equity 330,766 323,220 309,513 325,728 404,187
−−−−−−−−−−−
(1) Amounts exclude the financial results of discontinued operations (see Note
2 of Notes to Consolidated Financial Statements).
(2) The Company previously restated its consolidated financial statements for
the fiscal years ended November 30, 2000 and 2001 and for the fiscal
quarters during the year ended November 30, 2001 and the fiscal 2002
quarters ended February 28, 2002, May 31, 2002 and August 31, 2002. In
addition, the Company previously reclassified certain expenses from
operating expenses to cost of sales for fiscal 2001 and for each of the
quarters in the nine months ended August 31, 2002. Please refer to the
Company's previously filed Form 10−K for the year ended November 30, 2002
for details.
(3) 2003 amounts reflect the acquisition of Recoton (see Note 5 of Notes to
Consolidated Financial Statements).
(4) 2004 amount reflects the results of the divestiture of the Cellular
business (see Note 2 of Notes to Consolidated Financial Statements).
Item 7−Management's Discussion and Analysis of Financial Condition and Results
of Operations ("MD&A")
This section should be read in conjunction with "Forward−Looking
Statements" below, as well as Item 1 of Part 1, "Cautionary Factors That May
Affect Future Results," and Item 8 of Part II, " Consolidated Financial
Statements and Supplementary Data."
We begin Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") with an overview of the business, including our
strategy to give the reader a summary of the goals of our business and the
direction in which our business is moving. This is followed by a discussion of
the Critical Accounting Policies and Estimates that we believe are important to
understanding the assumptions and judgments incorporated in our reported
financial results. In the next section, we discuss our Results of Operations for
fiscal 2003 compared to 2004, and for fiscal 2002 compared to 2003. We then
provide an analysis of changes in our balance sheet and cash flows, and discuss
our financial commitments in the sections entitled "Liquidity and Capital
Resources, including Contractual and Commercial Commitments," We conclude this
MD&A with a discussion of "Related Party Transactions" and "Recent Accounting
Pronouncements". All financial information, except share and per share data, is
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