Exhibit 99
FOR IMMEDIATE RELEASE
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ALL AMERICAN SEMICONDUCTOR REPORTS
FIRST QUARTER RESULTS
Miami, FL - May 13, 2005 -- All American Semiconductor, Inc. (The Nasdaq Stock
Market:SEMI), a leading distributor of electronic components, today announced
its results for the first quarter of 2005.
Net sales for the quarter ended March 31, 2005 were $94.3 million, compared to
net sales of $98.2 million for the same period of 2004. Income from operations
was $1.1 million for the first quarter of 2005, compared to $2.4 million for the
first quarter of last year. Net income for the quarter ended March 31, 2005 was
$61,000 or $.01 per share (diluted), compared to net income of $891,000 or $.22
per share (diluted) for the first quarter of 2004.
Bruce M. Goldberg, President and Chief Executive Officer of All American,
stated, "As indicated in our last release, business was soft in the first
quarter. We believe that the softness is not a long term trend and we have
continued to invest in growing our business. These factors have contributed to
the reduction in our profitability. Although the book-to-bill ratio began to
improve toward the end of the first quarter, it is difficult to determine when
business will strengthen and how strong it will be. Due to the continued
consolidation in our industry we believe it is an important time to continue to
invest in order to be properly positioned to respond to recent industry
developments."
All American is recognized as the nation's 4th largest distributor of
semiconductors and the 9th 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 sales, markets, future operating
results or investments in the growth of our business or otherwise makes
statements about the softness of business or the current or future market
conditions or trends, 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: further weakening industry and market conditions; a
tightening by customers of their inventory levels; a continued slowdown in
sales; 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;
insufficient funds from operations, from the Company's credit facility and from
other sources (debt and/or equity) to support the Company's operations or the
inability of the Company to obtain additional financing when needed or on terms
acceptable to the Company; an increase in interest rates, including as a result
of interest rate hikes by the Federal Reserve Board, and/or an increase in the
Company's average outstanding borrowings; a reduction in the level of demand for
products of its customers including the level of growth of some of the new
technologies supported by the Company; deterioration in the relationships with
existing suppliers, particularly one of our largest suppliers; 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, inventory oversupply conditions and/or
increases in the costs of goods; 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 impact from
changes in accounting rules; adverse currency fluctuations; the adverse impact
of terrorism or the threat 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.
ALL AMERICAN SEMICONDUCTOR, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands
except per share amounts)
Quarters Ended March 31 2005 2004
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Net Sales $ 94,309 $ 98,242
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Income from Operations $ 1,119 $ 2,434
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Net Income $ 61 $ 891
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Earnings Per Share:
Basic $ .02 $ .24
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Diluted $ .01 $ .22
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Average Shares:
Basic 3,912,449 3,767,059
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Diluted 4,134,268 4,077,688
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CONTACT:
Bruce M. Goldberg, CEO
Howard L. Flanders, CFO
(305) 621-8282 x1417