Audiovox Reports Delayed Fiscal 10-K

By Jeff Malester On Jun 9 2003 - 6:00am

Following a delay filing its fourth quarter and 12-month financial results, due to a Securities and Exchange Commission comment letter and completion of an audit, Audiovox has filed a 10-K for its fiscal year, ended Nov. 30, 2002.

The Audiovox Electronics (AEC) subsidiary, including mobile video, security and consumer product categories, posted $105.8 million in sales on income before taxes of $2.8 million.

The Audiovox Communications (ACC) subsidiary saw wireless sales impacted by reduced consumer demand, price erosion and delivery delays by some ACC suppliers, resulting in fourth quarter sales of $211.1 million, and a loss before taxes of $9.4 million.

Overall Audiovox fourth quarter sales hit $316.9 million, and net loss for the three months — which includes a valuation allowance, or charge of $13.1 million, on ACC's deferred tax assets — was $15.1 million. In the fourth quarter a year earlier, sales reached $341.2 million, with a loss of $3.1 million.

For the 12 months, the ACC subsidiary recorded revenue of $727.7 million, and a loss before taxes of $24.9 million. The AEC subsidiary reported sales of $372.7 million for the fiscal year, on income before taxes of $17.7 million.

Overall 12 month results for Audiovox shows sales of $1.1 billion, and a loss of $14 million. A year earlier, 12-month sales hit $1.3 billion, combined with a loss of $7.2 million.

As a result of its SEC dealings, Audiovox has restated results for fiscal years 2000, 2001 and the first three quarters of 2002. At the end of May, Audiovox announced a cumulative change to income and equity of $1 million. At the completion of the audit, the cumulative change results in a loss of $65,000 through the period ending Aug. 31, 2002.

In finalizing its 10-K, Audiovox made an additional adjustment to its financial statements, reversing $1.7 million in expenses which was previously recorded in paid in capital. This resulted in an increase in stockholders equity and reduced the gain recorded on the issuance of those shares.

After recovery for income taxes, the net charge to the income statement was $1.1 million.