Exhibit 99
FOR IMMEDIATE RELEASE
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ALL AMERICAN SEMICONDUCTOR REPORTS
FOURTH QUARTER AND YEAR-END 2003 RESULTS
Third Sequential Quarterly Increase in Sales
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Eighth Consecutive Quarter of Profitability
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Miami, FL - March 16, 2004 -- All American Semiconductor, Inc. (The Nasdaq Stock
Market:SEMI), a leading distributor of electronic components, today announced
its results for the quarter and year ended December 31, 2003.
Net sales for the fourth quarter of 2003 increased 13% to $86.9 million, from
$77.0 million for the same period of 2002, and up 5% sequentially from the third
quarter of 2003. Income from operations was $1.2 million for the fourth quarter
of 2003, up significantly from $701,000 for the fourth quarter of 2002. Net
income was $245,000 or $.06 per share (diluted) for the fourth quarter of 2003,
compared to net income of $7,000 or $.00 per share (diluted) for the same period
of 2002.
Net sales for 2003 were $311.5 million, compared to net sales for 2002 of $332.0
million. Income from operations was $3.6 million for 2003, compared to $4.1
million for 2002. Net income was $546,000 or $.14 per share (diluted) for 2003,
compared to $564,000 or $.15 per share (diluted) excluding other income for the
year ended December 31, 2002. Net income for 2002 was $1.9 million or $.49 per
share (diluted) after including other income of $1.3 million on an after-tax
basis that primarily relates to a partial payment in settlement of an accounts
receivable that had been written off in 2001. All American's management believes
that the comparison of net income and earnings per share (diluted) for 2003 and
2002 excluding other income on an after-tax basis in 2002 more clearly reflects,
and allows for a better understanding of the difference in, its operating
results for 2003 and 2002 since the other income item is unusual in nature and
is not likely to reoccur. See "Supplemental Disclosure - Net Income
Reconciliation" table.
Bruce M. Goldberg, President and Chief Executive Officer of All American,
stated, "We were pleased to report modest profitability throughout each of the
quarters of 2003 notwithstanding the very difficult market conditions. The
fourth quarter of 2003 represented our eighth consecutive quarter of
profitability. The fourth quarter also represented our third sequential
quarterly increase in sales and we are encouraged by the improved strength in
booking activity that started in September and has continued through the first
two months of 2004. As a result of our booking activity, our backlog has been
growing every month since September."
"We begin 2004 with more optimism than we have had over the past few years.
Industry associations and analysts appear to be in agreement that sales of
electronics components are on the rise. Prices from our suppliers are firming
and in some instances increasing. Many of our suppliers are reporting that lead
times have stretched out. After three years of excess availability, this is
another positive indicator for our industry. As a result, we are increasing our
inventory to support our growing customer backlog."
Mr. Goldberg continued, "To address the ongoing trend for business to transfer
offshore, we have been continuing our efforts to expand our operations in Asia
and Europe. Although we face new challenges in the increasingly global
marketplace of today, we have been diligent at addressing the issues. We are
confident that All American is well positioned within our industry and that, as
conditions further improve, our continued commitment to our strategies 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 both Asia and Europe.
To the extent that this press release discusses future performance,
expectations, beliefs or intentions about our bookings, sales, markets
(including expansion of operations in Asia and Europe), future operating
results, available cash flow, growth or otherwise makes statements about
strengthening of or positive signals with respect to market conditions and
business activity, the possibility of an industry recovery being underway or the
Company's positioning resulting in enhanced returns to shareholders, 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 recent improvements in market conditions and business activity
with respect to the broad-based industry downturn which resulted in the decline
in demand for electronic components and excess customer inventory failing to
continue and/or further improve; a failure of the general economy to continue to
improve; 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 and particularly in Asia; an
increase in the allowance for doubtful accounts receivable and bad debts or
write-offs of accounts receivable as a result of an adverse change in the
financial condition of one or more of the Company's customers or the estimate
made by the Company of the level of allowance for doubtful accounts based
primarily on historical assumptions proving to be inadequate; write-offs of
inventory arising from customers returning inventory or 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
and/or increases in the costs of goods; an increasing number of low-margin,
large volume transactions; 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, including increasing
inventory to support growing customer backlog and increasing accounts receivable
arising from growth in net sales, and to repay the Company's subordinated
debentures at maturity; 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 tables)
ALL AMERICAN SEMICONDUCTOR, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands
except per share amounts)
Quarters Years
(Unaudited)
Periods Ended December 31 2003 2002 2003 2002
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Net Sales $ 86,923 $ 76,985 $ 311,529 $ 332,047
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Income from Operations $ 1,154 $ 701 $ 3,620 $ 4,088
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Net Income (1) $ 245 $ 7 $ 546 $ 1,883
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Earnings Per Share (1):
Basic $ .07 $ .00 $ .14 $ .49
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Diluted $ .06 $ .00 $ .14 $ .49
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Average Shares:
Basic 3,760,001 3,833,218 3,793,347 3,849,553
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Diluted 3,988,754 3,833,571 3,882,199 3,850,002
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(1) The year ended December 31, 2002 includes $1,319,000 on an after-tax basis
of Other Income primarily related to a partial payment in settlement of an
accounts receivable that had been written off in 2001.
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ALL AMERICAN SEMICONDUCTOR, INC.
SUPPLEMENTAL DISCLOSURE - NET INCOME RECONCILIATION
(Unaudited)
(Dollars in thousands
except per share amounts)
Years Ended December 31 2003 2002
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Net Income, as Reported $ 546 $ 1,883
Other Income - Net - (2,220)
Income Tax Provision - 901
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Net Income, as Adjusted $ 546 $ 564
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Earnings Per Share (Diluted), as Reported $ .14 $ .49
Other Income - Net - (.57)
Income Tax Provision - .23
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Earnings Per Share (Diluted), as Adjusted $ .14 $ .15
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CONTACT:
Bruce M. Goldberg, CEO
Howard L. Flanders, CFO
(305) 621-8282 x1417