Audiovox 2006 Annual Report Download - page 71

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Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 28, 2007
(Dollars in thousands, except share and per-share data)
Year
Ended
February 28,
2007
Three
Months
Ended
February 28,
2006
Years ended
November 30,
2005 2004
(unaudited) (Unaudited)
Net sales ................................... $60,414 $11,421 $49,795 $56,988
Gross profit................................. 17,764 3,709 11,877 14,540
Operating income ........................... 4,980 778 4,512 7,257
Net income ................................. 5,875 948 4,716 7,304
The Company’s share of income from ASA for the year ended February 28, 2007, the three
months ended February 28, 2006 and the years ended November 30, 2005 and 2004 was $2,937,
$474, $2,358 and $3,652, respectively. In addition, the Company received distributions from ASA
totaling $3,419, $713, $1,147 and $4,131 during the year ended February 28, 2007, the three
months ended February 28, 2006 and the years ended November 30, 2005 and 2004, respectively.
7) Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
February 28,
2007 2006
Commissions ................................................... $ 457 $ 512
Employee compensation......................................... 3,104 2,004
Professional fees and accrued settlements.......................... 1,951 1,505
Future warranty ................................................ 5,856 5,314
Freight and duty................................................ 1,872 1,722
Other taxes payable............................................. 909 378
Royalties, advertising and other .................................. 12,415 6,472
$26,564 $17,907
8) Financing Arrangements
The Company has the following financing arrangements:
February 28,
2007 2006
Bank Obligations
Domestic bank obligations (a).................................... $ — $ —
Venezuela bank obligations (b) ................................... — 956
Euro asset-based lending obligation (c) ........................... 2,890 4,373
Total bank obligations........................................... $2,890 $5,329
Debt
Euro term loan agreement (d).................................... $5,461 $6,282
Other (e) ...................................................... 1,493 1,013
Total debt ..................................................... $6,954 $7,295
a) Domestic Bank Obligations
At February 28, 2007, the Company has an unsecured credit line to fund the temporary
short-term working capital needs of the domestic operations. This line expires on
F-31