Exhibit 99
FOR IMMEDIATE RELEASE
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ALL AMERICAN ANNOUNCES SECOND QUARTER RESULTS
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Miami, FL - August 7, 2003 -- All American Semiconductor, Inc. (The Nasdaq Stock
Market:SEMI), a leading distributor of electronic components, today announced
its results for the second quarter of 2003.
Net sales for the quarter ended June 30, 2003 were $71.9 million, compared to
$87.4 million for the same period of 2002. Income from operations was $778,000
for the second quarter of 2003, compared to $1.1 million for the second quarter
of last year. Net income for the quarter ended June 30, 2003 was $63,000 or $.02
per share (diluted), compared to $198,000 or $.05 per share (diluted) for the
second quarter of 2002.
For the first half of 2003, net sales were $141.8 million, compared to $169.5
million for the first half of 2002. Income from operations was $1.5 million for
the first six months of 2003, compared to $2.3 million for the same period of
2002. Net income was $124,000 or $.03 per share (diluted) for the six months
ended June 30, 2003, compared to $317,000 or $.08 per share (diluted) for the
same period of 2002.
Bruce M. Goldberg, President and Chief Executive Officer of All American,
stated, "Despite the sustained weakness in market conditions, we were able to
record our sixth consecutive quarter of modest profitability. Although it
remains difficult to project when and to what extent the electronics component
market will significantly rebound, we have begun to see more positive signals.
Our sales for the second quarter represented our first sequential increase in
four quarters. We experienced a slight increase in demand during the months of
June and July and we remain confident that our company's positioning will result
in enhanced returns to our shareholders in future periods."
All American is recognized as the nation's 4th largest distributor of
semiconductors and the 10th largest electronic components distributor overall.
The Company has offices in 36 strategic locations throughout North America, as
well as operations in the United Kingdom and Seoul, South Korea.
To the extent that this press release discusses financial projections, future
performance, expectations, beliefs or intentions about our bookings, sales,
markets, operating results, growth, or otherwise makes statements about positive
signals with respect to market conditions or our industry's or the Company's
future or plans, the statements are forward-looking and are subject to a number
of risks and uncertainties that could cause actual results, performance or
achievements to differ materially from the statements made. Factors that could
adversely affect the Company's future results, performance or achievements
include, without limitation: the continuance of the broad-based industry
downturn resulting in the decline in demand for electronic components and
further excess customer inventory; continuing or worsening in the overall
economic weakness; the continuance of a trend for electronics manufacturing to
move offshore; the level of effectiveness of the Company's business and
marketing strategies, including those outside North America; an increase in the
allowance for doubtful accounts receivable and bad debts or further write-offs
of accounts receivable as a result of the weakened and/or further weakening
financial condition of certain of the Company's customers; further write-offs of
inventory arising from customers returning additional inventory and further
canceling orders or the devaluation of inventory as a result of adverse market
conditions; a reduction in the Company's development of new customers, existing
customer demand as well as the level of demand for products of its customers;
deterioration in the relationships with existing suppliers, particularly one of
our largest suppliers; price erosion in and price competition for products sold
by the Company; difficulty in the management and control of expenses; the
inability of the Company to generate revenue commensurate with the level of
personnel and size of its infrastructure; price decreases on inventory that is
not price protected; decreases in gross profit margins, including decreasing
margins resulting from the Company being required to have aggressive pricing
programs; an increasing number of low-margin, large volume transactions and
increased availability of the supply for certain products; increased competition
from third party logistics and fulfillment companies, e-brokers and other
Internet providers through the use of the Internet as well as from its
traditional competitors; insufficient funds from operations, from the Company's
credit facility and from other sources (debt and/or equity) to support the
Company's operations; problems with telecommunication, computer and information
systems; the inability of the Company to expand its product offerings or obtain
product during periods of allocation; the inability of the Company to continue
to enhance its service capabilities and the timing and cost thereof; the failure
to achieve acceptance of or to grow in all or some of the new technologies that
have been or are being supported by the Company; an increase in interest rates;
the adverse impact of any product liability or warranty claims or intellectual
property claims; the impact from changes in accounting rules; the adverse impact
of terrorism on the economy; and the other risks and factors including those
detailed in the Company's reports on Forms 10-K and Forms 10-Q and other press
releases. These risks and uncertainties are beyond the ability of the Company to
control. In many cases, the Company cannot predict the risks and uncertainties
that could cause actual results to differ materially from those indicated by the
forward-looking statements. The Company undertakes no obligation to update
publicly or revise any forward-looking statements, business risks and/or
uncertainties.
(see accompanying table)
ALL AMERICAN SEMICONDUCTOR, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands
except per share amounts)
Quarters Six Months
Periods Ended June 30 2003 2002 2003 2002
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Net Sales $ 71,932 $ 87,397 $ 141,801 $ 169,539
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Income from Operations $ 778 $ 1,139 $ 1,462 $ 2,290
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Net Income $ 63 $ 198 $ 124 $ 317
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Earnings Per Share:
Basic and Diluted $ .02 $ .05 $ .03 $ .08
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Average Shares:
Basic 3,808,448 3,856,904 3,814,106 3,856,904
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Diluted 3,857,476 3,867,185 3,832,586 3,872,451
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CONTACT:
Bruce M. Goldberg, CEO
Howard L. Flanders, CFO
(305) 621-8282 x1417