Audiovox 2005 Annual Report Download - page 35

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Income (loss) from Discontinued Operations
The following is a summary of results included within discontinued
operations:
FISCAL FISCAL
2004 2005
−−−−−−−−−− −−−−−−−−−
Net sales from discontinued operations $1,162,863 $ 3,404
Income (loss) from discontinued operations before income taxes 10,837 (1,187)
Provision for income taxes 701 362
−−−−−−−− −−−−−−−−
10,136 (825)
Gain (loss) on sale of discontinued operations, net of tax 67,000 (2,079)
−−−−−−−− −−−−−−−−
Income (loss) from discontinued operations, net of tax $ 77,136 $(2,904)
======== ========
Income (loss) from discontinued operations, net of tax, provided income of
$77,136 for fiscal 2004 compared to a loss from discontinued operations of
$2,904 for fiscal 2005. Included in loss from discontinued operations for fiscal
2005 is a loss of $2,079 on the sale of AVM. The decline in income from
discontinued operations for fiscal 2005 is primarily due to the losses of AVM as
well as the sale of Cellular business on November 1, 2004, which resulted in a
$67,000 gain in fiscal 2004.
Net Income (loss)
Net loss for fiscal 2005 was $9,591, compared to net income of $77,200 in
2004. Loss per share for fiscal 2005 was $0.43 basic and diluted, as compared to
earnings of $3.52 basic and $3.45 diluted for 2004. Net income (loss) was
favorably impacted by sales incentive reversals of $2,836 and $5,083 (inclusive
of discontinued operations) for fiscal 2005 and 2004, respectively.
We believe the Electronics Group has an expanding market with a certain
level of volatility related to both domestic and international new car sales,
increased competition by manufacturers, technological advancements, price
erosion and general economic conditions. As a result, all of our products are
subject to price fluctuations, which could affect the carrying value of
inventories and gross margins in the future.
FISCAL 2003 COMPARED TO FISCAL 2004
Continuing Operations
The following tables sets forth, for the periods indicated, certain
statement of operations data for the years ended November 30, 2003 ("fiscal
2003") and 2004 ("fiscal 2004").
Net Sales
FISCAL FISCAL %
2003 2004 $ CHANGE CHANGE
−−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−− −−−−−−−−−−−−
$ 350,546 $ 403,196 $52,650 15.0%
Mobile Electronics
Consumer Electronics 159,833 160,457 624 0.4%
Other 520 − (520) (100.0)%
−−−−−−−−− −−−−−−−−− −−−−−−−−−
Total net sales $ 510,899 $ 563,653 $52,754 10.3%
========= ========= =======
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