Audiovox 2008 Annual Report Download - page 58

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Audiovox Corporation and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended February 29, 2008, February 28, 2007,
the Three Months Ended February 28, 2006 and the Year Ended November 30, 2005
(Dollars in thousands)
Three
Year Year Months Year
Ended Ended Ended Ended
February 29, February 28, February 28, November 30,
2008 2007 2006 2005
Cash flows from operating activities:
Net income (loss) $ 8,465 $ 2,936 $ 183 $ (9,591)
Net (income) loss from discontinued operations (1,719) 756 184 2,904
Net income (loss) from continuing operations 6,746 3,692 367 (6,687)
Adjustments to reconcile net income (loss) to net cash
(used in) provided by continuing operating activities:
Depreciation and amortization 5,750 3,994 951 3,635
Bad debt expense (recovery) 297 (23) (595) 1,105
Equity in income of equity investees (3,590) (2,937) (474) (2,342)
Other-than-temporary decline in market value of
investment - - - 1,758
Deferred income tax (benefit) expense, net (1,198) 606 2,959 (3,104)
Loss (gain) on disposal of property, plant and
equipment 19 7 (155) 3
Tax benefit on stock options exercised 805 (896) - 1,357
Non-cash compensation (benefit) expense adjustment (790) 353 (115) 408
Unrealized gain on trading security - - - (4,971)
Non-cash stock based compensation expense 886 432 - -
Realized (gain) loss on sale of investment (1,533) 178 - -
Changes in operating assets and liabilities (net of assets
and liabilities acquired):
Accounts receivable (17,925) 4,066 40,560 (2,378)
Inventory (19,210) 23,589 33,091 17,805
Receivables from vendors (15,275) (4,079) (1,752) (1,064)
Prepaid expenses and other (3,560) (1,147) 945 (2,359)
Investment securities-trading 3,167 (1,026) (395) (1,279)
Accounts payable, accrued expenses,accrued sales
incentives and other current liabilities (23,387) 7,466 (18,314) (19,954)
Income taxes payable 4,107 9,145 (1,775) (41,245)
Change in assets and liabilities of discontinued
operations - - - 17,227
Net cash (used in) provided by operating activities (64,691) 43,420 55,298 (42,085)
Cash flows from investing activities:
Purchases of property, plant and equipment (7,326) (2,711) (479) (2,450)
Proceeds from sale of property, plant and equipment 94 50 677 18
Proceeds from distribution from an equity investee 1,720 3,419 713 1,147
Proceeds from a liquidating distribution from an
available-for-sale investment 646 - - -
Purchase of long-term investment - (1,000) - -
Net proceeds from sale of Cellular business - - - 16,736
Escrow payment for minority interest - - - (1,702)
Purchase of short-term investments (33,750) (158,230) (52,000) (143,075)
Sale of short-term investments 169,855 178,175 - 158,450
Sale of long-term investment 4,561 360 - -
Purchase of patents (70) (475) - (150)
(Purchase of) proceeds from acquired businesses, less
cash acquired (42,265) (60,485) 71 (15,345)
Net cash provided by (used in) investing activities 93,465 (40,897) (51,018) 13,629
Cash flows from financing activities:
Borrowings from bank obligations - - 654 1,100
Repayments on bank obligations (1,758) (2,853) (114) (5,350)
Principal payments on capital lease obligation (69) (89) (37) (69)
Source: AUDIOVOX CORP, 10-K, May 14, 2008