Audiovox 2005 Annual Report Download - page 41

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o Income taxes payable decreased $41,245 during fiscal 2005, primarily
due to tax payments made in connection with the gain on the sale of
the Cellular business in fiscal 2004.
o Cash flow from operations were impacted by a decline in inventory
purchases and improved turnover. Inventory turnover approximated 3.4
during fiscal 2005 compared to 3.3 in the prior year.
o Cash flows from operating activities for fiscal 2005 were impacted by
an increase in accounts receivable primarily due to increased fourth
quarter sales. Accounts receivable turnover approximated 4.4 during
fiscal 2005 compared to 4.3 in the comparable period in the prior year.
o In addition, cash flow from operating activities for fiscal 2005, was
impacted by a decrease in accrued expenses, as a result of payments
made during fiscal 2005.
Investing activities provided cash of $13,629 during fiscal 2005, due to
the sale (net purchase) of short−term investments, proceeds from sale of
cellular business partially offset by the acquisition of Terk. Investing
activities used cash of $3,739 during fiscal 2004, primarily due to the purchase
of subsidiary shares as well as property plant and equipment offset by a
distribution received from an equity investee.
Financing activities used cash of $495 during fiscal 2005, primarily due to
the payment of bank obligations which were acquired in connection with the Terk
acquisition, payment of debt and repurchase of treasury stock. The cash used
from financing activities was partially offset by proceeds received from the
exercise of stock options. Financing activities for fiscal 2004 used cash of $
44,068 mainly due to net borrowings of bank obligations and payment of debt.
Certain contractual cash obligations and other commercial commitments will
impact our short and long−term liquidity. At November 30, 2005, such obligations
and commitments are as follows:
PAYMENTS DUE BY PERIOD
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
TOTAL LESS THAN 1−3 4−5 AFTER
CONTRACTUAL OBLIGATIONS 1 YEAR YEARS YEARS 5 YEARS
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−− −−−−−−−− −−−−−−−−−−−−− −−−−−−−− −−−−−−−− −−−−−−−−
Capital lease obligation (1) $ 12,547 $ 561 $ 1,157 $ 1,154 $ 9,675
Operating leases (2) 11,038 3,247 5,281 2,464 46
−−−−−−−− −−−−−−− −−−−−−− −−−−−−− −−−−−−−−
Total contractual obligations $ 23,585 $ 3,808 $ 6,438 $ 3,618 $ 9,721
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