All American Announces First Quarter Results; Sales Increase 24% Over Fourth Quarter Of Last Year.Business Editors/High Tech Writers MIAMI--(BUSINESS WIRE)--April 23, 2002 All American Semiconductor, Inc. (Nasdaq:SEMI), a leading national distributor of electronic components, today announced its results for the first quarter of 2002. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended March 31, 2002 were $82.1 million, up 24% sequentially from the fourth quarter of 2001 and down 35% as compared to first quarter sales of $125.9 million for 2001. Income from continuing operations was $1.2 million for the first quarter of 2002, compared to $3.8 million for the first quarter of last year. Net income for the quarter ended March 31, 2002 was $119,000 or $.03 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared to $671,000 or $.17 per share (diluted) for the first quarter of 2001. Bruce M. Goldberg, President and Chief Executive Officer of All American, stated, "We are pleased to be able to return to profitability even though market conditions have not improved significantly as of yet. A contributing factor in returning to profitability was the success we had in reducing our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. from $21.2 million in the first quarter of 2001 to $14.5 million in the first quarter of 2002. Additionally, we have reduced our bank debt even further, with our line of credit at $47 million as of April 19, 2002. We have also been able to reduce our inventory levels down to $62 million as of the end of the first quarter. "It remains difficult to project just when market conditions will show more significant signs of improvement. Although probably not in the near term, we are confident that market conditions will improve and that our continued commitment to our strategies will result in meaningful returns to our shareholders in future periods." All American is recognized as the nation's 6th largest distributor of semiconductors and the 12th largest electronic components distributor overall. The Company has offices in 36 strategic locations throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . 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 market conditions or our industry's or the Company's future, 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 The adjournment or postponement of an action pending in a court to a later date of the same or another session of the court, granted by a court in response to a motion made by a party to a lawsuit. of or increase in the broad-based industry downturn resulting in the decline or increasing decline (as the case may be) in demand for electronic components and further excess customer inventory; continuing or worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension in the overall economic weakness; the reduced effectiveness of the Company's business and marketing strategies; an increase in the allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. receivable and bad debts or further write-offs of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying as a result of the weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. 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 devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. 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 de·te·ri·o·ra·tionn. The process or condition of becoming worse. in the relationships with existing 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 com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the level of personnel and size of its infrastructure; price decreases on inventory that is not price protected; decreases in gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. , 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 companies, e-brokers and other Internet providers Internet provider - Internet Service Provider through the use of the Internet as well as from its traditional competitors; insufficient funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. , 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 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. .
ALL AMERICAN SEMICONDUCTOR, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands
except per share amounts)
Quarters Ended March 31 2002 2001
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Net Sales $ 82,142 $125,917
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Income from Continuing Operations $ 1,151 $ 3,765
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Income from Continuing Operations Before
Discontinued Operations $ 119 $ 573
Discontinued Operations - 98
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Net Income $ 119 $ 671
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Basic and Diluted Earnings Per Share:
Income from Continuing Operations Before
Discontinued Operations $ .03 $ .15
Discontinued Operations - .02
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Net Income $ .03 $ .17
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Average Shares:
Basic 3,856,904 3,856,539
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Diluted 3,878,447 4,051,693
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