Audiovox 2004 Annual Report Download - page 95

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2002, 2003 and 2004
(Dollars in thousands, except share and per share data)
of deferred tax assets to taxes paid in current and prior years and the
Company's historical taxable income record, adjusted for unusual items,
management believes it is more likely than not that the Company will
realize the benefit of the net deferred tax assets existing at November 30,
2004. Further, management believes the existing net deductible temporary
differences will reverse during periods in which the Company generates net
taxable income. There can be no assurance, however, that the Company will
generate any earnings or any specific level of continuing earnings in the
future. The amount of the deferred tax asset considered realizable by the
Company, therefore, could be reduced in the near term if estimates of
future taxable income during the carryforward period are reduced.
(11) Capital Structure
The Company's capital structure is as follows:
Voting
Rights
Par Shares Per Liquidation
Security Value Shares Authorized Outstanding Share Rights
−−−−−−−−−−−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−−−−−−−−−−
November 30, November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−−−−−−−−−−
2003 2004 2003 2004
−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−− −−−−−−−−−−−−−−
Preferred
Stock $50.00 50,000 50,000 50,000 50,000 − $50 per share
Series
Preferred
Stock $ 0.01 1,500,000 1,500,000 − − − −
Class A
Common $ 0.01 60,000,000 60,000,000 19,655,645 19,788,889 One Ratably with
Stock Class B
Class B
Common Class A
Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 Ten Ratably with
The holders of Class A and Class B common stock are entitled to receive
cash or property dividends declared by the Board of Directors. The Board of
Directors can declare cash dividends for Class A common stock in amounts
equal to or greater than the cash dividends for Class B common stock.
Dividends other than cash must be declared equally for both classes. Each
share of Class B common stock may, at any time, be converted into one share
of Class A common stock.
The 50,000 shares of non−cumulative Preferred Stock outstanding are owned
by Shintom and have preference over both classes of common stock in the
event of liquidation or dissolution. These shares have no dividend rights.
The Company's Board of Directors approved the repurchase of 1,563,000
shares of the Company's Class A common stock in the open market under a
share repurchase program (the Program). As of
92