All American Semiconductor Reports Third Quarter Results; Sales Increase 9% Over Third Quarter of 2004.MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. -- All American Semiconductor, Inc. (Nasdaq:SEMI), a leading distributor of electronic components, today announced its results for the third quarter and first nine months of 2005. 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 for the quarter ended September 30, 2005 were $113.2 million, up from net sales of $103.8 million for the same period of 2004. Income from operations was $1.7 million for both the third quarter of 2005 and 2004. Net income for the quarter ended September 30, 2005 was $209,000 or $.05 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. ). Net income for the third quarter of 2004 included other income of $1.1 million on a pre-tax basis ($616,000 on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. or $.15 per share (diluted)) as a result of our prevailing in a contract litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Including the other income, net income for the third quarter of 2004 was $1.1 million or $.26 per share (diluted). For the first nine months of 2005, net sales were $318.8 million, compared to net sales of $308.9 million for the first nine months of 2004. Income from operations was $4.4 million for the first nine months of 2005, compared to $6.8 million for the same period of 2004. Net income was $578,000 or $.14 per share (diluted) for the nine months ended September 30, 2005. Net income for the first nine months of 2004 included other income of $1.1 million on a pre-tax basis ($616,000 on an after-tax basis or $.15 per share (diluted)) as a result of our prevailing in a contract litigation. Including the other income, net income for the first nine months of 2004 was $3.0 million or $.73 per share (diluted). Bruce M. Goldberg, President and Chief Executive Officer of All American, stated, "We are pleased with the continued growth in sales and encouraged by signs of improved industry conditions. Sales for the third quarter increased 2% over sales for the second quarter of this year and represented our second consecutive quarterly increase in sales." "We are excited about the opportunities presented by the continued consolidation in our industry. Accordingly, as we stated before, we believe that it is appropriate to continue to add resources and invest strategically to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the opportunities that will be presented. While these investments, together with a slight decline in our gross margins have impacted our profitability, we are confident that we are well positioned and that our commitment to our strategies will result in improved performance in the future." 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 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. , 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of industry and market conditions and business activity; a
tightening by customers of their inventory levels; a slowdown in sales;
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 a trend for electronics manufacturing This article presents a typical manufacturing process of an electronic assembly. Component manufacturingComponents such as resistors, capacitors and integrated circuits are generally made by specialized contractors. to move offshore; the level of effectiveness of the Company's business, investment and marketing strategies, including those outside North America and particularly in Asia; 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 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 de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the relationships with existing suppliers, particularly one of our largest suppliers; 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, inventory oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies conditions and/or increases in the costs of goods; problems with telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. , 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 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. . 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 Nine Months
Periods Ended September 30 2005 2004 2005 2004
----------------------------------------------------------------------
Net Sales $ 113,249 $ 103,757 $ 318,772 $ 308,908
========= ========= ========= =========
Income from Operations $ 1,690 $ 1,672 $ 4,438 $ 6,834
========= ========= ========= =========
Net Income (1) $ 209 $ 1,088 $ 578 $ 3,004
========= ========= ========= =========
Earnings Per Share (1):
Basic $ .05 $ .28 $ .15 $ .79
===== ===== ===== =====
Diluted $ .05 $ .26 $ .14 $ .73
===== ===== ===== =====
Average Shares:
Basic 3,933,457 3,877,819 3,924,232 3,818,697
========= ========= ========= =========
Diluted 4,107,600 4,201,717 4,109,868 4,127,946
========= ========= ========= =========
(1) Included in the quarter and nine months ended September 30,
2004 is $1,081,000 on a pre-tax basis ($616,000 on an after-tax basis
or $.15 per share (diluted)) of other income associated with our
prevailing in a contract litigation.
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