Audiovox 2008 Annual Report Download - page 38

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Net Income (Loss)
The following table sets forth, for the periods indicated, selected statement of operations data beginning with operating loss
from continuing operations to reported net income (loss) and basic and diluted net income (loss) per common share.
Fiscal Fiscal
2007 2006
Operating loss $ (5,077) $ (25,048)
Other income, net 7,235 6,952
Income (loss) from continuing operations before income taxes 2,158 (18,096)
Income tax benefit 1,534 12,328
Net income (loss) from continuing operations 3,692 (5,768)
Net loss from discontinued operations, net of tax (756) (2,435)
Net income (loss) $ 2,936 $ (8,203)
Net income (loss) per common share:
Basic $ 0.13 $ (0.36)
Diluted $ 0.13 $ (0.36)
Net income for fiscal 2007 was $2,936 compared to a net loss of $8,203 in fiscal 2006. Income per share for fiscal 2007 was $0.13
(diluted) as compared to a loss per share of $0.36 (diluted) for fiscal 2006. Net income (loss) was favorably impacted by sales
incentive reversals of $2,460 ($1,501 after taxes) and $1,995 ($1,217 after taxes) for fiscal 2007 and 2006, respectively.
Liquidity and Capital Resources
Cash Flows, Commitments and Obligations
As of February 29, 2008, we had working capital of $275,787 which includes cash and short-term investments of $39,341 compared
with working capital of $305,960 at February 28, 2007, which included cash and short-term investments of $156,345. The decrease in
short-term investments is primarily due to the acquisitions of Oehlbach, Incaar, Technuity and Thomson's audio/video business
totaling $42,265, the funding of our working capital, investments in capital equipment, repayment of certain bank and debt obligations
and the repurchase of our common stock, partially offset by the proceeds received from the exercise of stock options and the sale of
certain short and long-term investments. We plan to utilize our current cash position as well as collections from accounts receivable,
the cash generated from our operations and the income on our investments to fund the current operations of the business. However,
we may utilize all or a portion of current capital resources to pursue other business opportunities, including acquisitions. The
following table summarizes our cash flow activity for all periods presented:
Three
Year Year Months Year
Ended Ended Ended Ended
February 29, February 28, February 28, November 30,
2008 2007 2006 2005
Cash provided by (used in):
Operating activities $ (64,691) $ 43,420 $ 55,298 $ (42,085)
Investing activities 93,465 (40,897) (51,018) 13,629
Financing activities (5,241) (3,449) (2,188) (555)
Effect of exchange rate changes on cash 335 119 24 (234)
Net increase (decrease) in cash and cash equivalents $ 23,868 $ (807) $ 2,116 $ (29,245)
34
Source: AUDIOVOX CORP, 10-K, May 14, 2008