Audiovox 2004 Annual Report Download - page 49

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The following significant fluctuations in the balance sheet impacted cash
flow from operations:
o Cash flows from operating activities for the year ended November 30, 2004
were favorably impacted by a decrease in accounts receivable primarily from
collections. The Company retained $148,494 of Cellular receivables and the
collection of such receivables in November 2004 caused assets of
discontinued operations to provide cash of $104,944. Accounts receivable
for assets of continued operations provided cash of $23,236 and accounts
receivable turnover approximated 4.3 during for the year ended November 30,
2004 compared to 4.6 in the fiscal 2003. Accounts receivable collections
are often impacted by the timing of collections.
o Cash flow from operating activities was also favorably impacted by a
$11,823 decrease in inventory due to the increase in sales for the year
ended November 30, 2004. Inventory turnover remained steady at 3.3 during
for the year ended November 30, 2004 compared to 3.3 in the fiscal 2003.
o Cash flow from operating activities for the year ended November 30, 2004,
was impacted by a $12,392 decrease in accounts payable and accrued sales
incentives, primarily from payments made to inventory vendors and
customers. The timing of payments made can fluctuate and are often impacted
by the timing of inventory purchases and amount of inventory on hand.
Investing activities used $3,739 during the year ended November 30, 2004,
primarily from the purchase of short−term investments offset by the sale of the
Cellular business (see Note 2 to Notes to Consolidated Financial Statements). In
addition, the cash usage from investing activities was due to the purchase of
property, plant and equipment, as well as the repurchase of subsidiary shares.
Investing activities used cash of $40,122 during the year ended November 30,
2003, primarily for the acquisition of Recoton (see Note 5 to Notes to
Consolidated Financial Statements).
Financing activities used $44,580 during the year ended November 30, 2004,
primarily for the net payment of bank obligations and debt. Financing activities
for the year ended November 30, 2003 provided cash of $12,965 mainly due to debt
proceeds acquired in connection with the Recoton acquisition.
The Company has certain contractual cash obligations and other commercial
commitments which will impact its short and long−term liquidity. At November 30,
2004, such obligations and commitments are summarized as follows:
Payments Due By Period
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−− − −−−−−−−−−−−−−
Less
than 1−3 4−5 Over
Contractual Cash Obligations Total 1 Year Years Years 5 Years
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−− −−−−−−− −−−−−−− −−−−−−− −−−−−−− −−−−−−−
Capital lease obligations (1) $13,099 $ 552 $ 1,137 $ 1,157 $10,253
Operating leases (2) 9,061 2,997 4,931 1,133 −−
−−−−−−− −−−−−−− −−−−−−− −−−−−−− −−−−−−−
Total contractual cash obligations $22,160 $ 3,549 $ 6,068 $ 2,290 $10,253
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