Audiovox 2005 Annual Report Download - page 84

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The allocation of the purchase price to assets and liabilities acquired
was based upon an independent valuation study and is final.
The following unaudited pro−forma financial information for the years
ended November 30, 2003, 2004 and 2005 represents the combined results
of the Company's operations and Terk as if the Terk acquisition had
occurred at the beginning of fiscal 2003. The unaudited pro−forma
financial information does not necessarily reflect the results of
operations that would have occurred had the Company constituted a
single entity during such periods.
YEARS ENDED NOVEMBER 30,
2003 2004 2005
(unaudited)
Net sales $556,903 $609,657 $543,550
Net income (loss) 10,313 76,274 (9,668)
Net income (loss) per share−diluted 0.47 3.41 (0.43)
(5) Receivables from Vendors
The Company has recorded receivables from vendors in the amount of
$7,028 and $8,075 as of November 30, 2004 and 2005, respectively.
Receivables from vendors represent prepayments on product shipments and
product reimbursements.
(6) Equity Investment
The Company has a 50% non−controlling ownership interest in Audiovox
Specialized Applications, Inc. ("ASA") which acts as a distributor to
specialized markets for specialized vehicles, such as RV's and van
conversions, of televisions and other automotive sound, security and
accessory products.
The following represents summary information of transactions between
the Company and ASA:
YEARS ENDED NOVEMBER 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2003 2004 2005
−−−−−−−−−−−− −−−−−−−−−−−− −−−−−−−−−−−−−
$4,277 $1,302 $1,404
Net sales
Purchases 1,978 213 573
Royalties 3,253 2,103 871
AS OF NOVEMBER 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2004 2005
−−−−−−−−−−−−− −−−−−−−−−−−−−
Accounts receivable $ 105 $ 138
F−30