Exhibit 99
FOR IMMEDIATE RELEASE
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ALL AMERICAN SEMICONDUCTOR REPORTS
SECOND QUARTER RESULTS
Second Quarter Sales at Highest Quarterly Level Since 2001
Representing 18% Sequential Increase and 4% Year Over Year
Miami, FL - August 3, 2005 -- All American Semiconductor, Inc. (The Nasdaq Stock
Market:SEMI), a leading distributor of electronic components, today announced
its results for the second quarter and first half of 2005.
Net sales for the quarter ended June 30, 2005 were $111.2 million, up from net
sales of $106.9 million for the same period of 2004. Income from operations was
$1.6 million for the second quarter of 2005, compared to $2.7 million for the
second quarter of last year. Net income for the quarter ended June 30, 2005 was
$308,000 or $.08 per share (diluted), compared to net income of $1.0 million or
$.25 per share (diluted) for the second quarter of 2004.
For the first half of 2005, net sales were $205.5 million, compared to net sales
of $205.2 million for the first half of 2004. Income from operations was $2.7
million for the first six months of 2005, compared to $5.2 million for the same
period of 2004. Net income was $369,000 or $.09 per share (diluted) for the six
months ended June 30, 2005, compared to $1.9 million or $.47 per share (diluted)
for the same period of 2004.
Bruce M. Goldberg, President and Chief Executive Officer of All American,
stated, "While industry conditions have improved slightly we are pleased that we
were able to achieve 18% sequential growth in sales for the second quarter of
2005. Sales for the second quarter represented the highest quarterly sales level
since the first quarter of 2001. Even though we achieved significant sequential
revenue growth in the second quarter, it is still difficult to determine how
strong the balance of 2005 will be."
"Due to the consolidation in our industry we believe it is an important time to
be adding resources and continuing to invest in order to be properly positioned
to respond to industry developments. These investments as well as a slight
decline in our gross margins have impacted our profitability. We are confident
that, when conditions improve further, 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 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 current or future industry or market conditions, trends or
developments including relating to industry consolidation, 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: a
weakening of industry and market conditions and business activity; a tightening
by customers of their inventory levels; a 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 Six Months
Periods Ended June 30 2005 2004 2005 2004
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Net Sales $ 111,214 $ 106,909 $ 205,523 $ 205,151
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Income from Operations $ 1,629 $ 2,728 $ 2,748 $ 5,162
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Net Income $ 308 $ 1,025 $ 369 $ 1,916
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Earnings Per Share:
Basic $ .08 $ .27 $ .09 $ .51
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Diluted $ .08 $ .25 $ .09 $ .47
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Average Shares:
Basic 3,926,791 3,811,213 3,919,620 3,789,136
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Diluted 4,105,271 4,157,996 4,118,387 4,107,474
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CONTACT:
Bruce M. Goldberg, CEO
Howard L. Flanders, CFO
(305) 621-8282 x1417