================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
--or--
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1999
Commission File Number: 0-16207
ALL AMERICAN SEMICONDUCTOR, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 59-2814714
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
16115 NORTHWEST 52ND AVENUE, MIAMI, FLORIDA 33014
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (305) 621-8282
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [X] Yes [] No
As of November 9, 1999, 3,973,431 shares (including 32,141 shares held by a
wholly-owned subsidiary of the Registrant) of the common stock of All American
Semiconductor, Inc. were outstanding, which gives effect to the Registrant's
one-for-five reverse stock split effective as of June 1, 1999.
================================================================================
<PAGE>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
FORM 10-Q - INDEX
Part Item Page
No. No. Description No.
- --------------------------------------------------------------------------------
I FINANCIAL INFORMATION:
1. Financial Statements
Consolidated Condensed Balance Sheets at September 30, 1999
(Unaudited) and December 31, 1998..............................1
Consolidated Condensed Statements of Income
for the Quarters and Nine Months Ended
September 30, 1999 and 1998 (Unaudited)........................2
Consolidated Condensed Statements of Cash Flows for the
Nine Months Ended September 30, 1999 and 1998 (Unaudited)......3
Notes to Consolidated Condensed Financial
Statements (Unaudited).........................................4
2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..................6
3. Quantitative and Qualitative Disclosures about Market Risk......9
II OTHER INFORMATION:
6. Exhibits and Reports on Form 8-K...............................10
SIGNATURES.....................................................10
i
<PAGE>
<TABLE>
<CAPTION>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
SEPTEMBER 30 December 31
ASSETS 1999 1998
- ------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
Current assets:
<S> <C> <C>
Cash .............................................................. $ 597,000 $ 473,000
Accounts receivable, less allowances for doubtful
accounts of $1,941,000 and $1,412,000............................. 53,100,000 37,821,000
Inventories......................................................... 73,554,000 69,063,000
Other current assets................................................ 5,415,000 2,574,000
--------------- ---------------
Total current assets.............................................. 132,666,000 109,931,000
Property, plant and equipment - net................................... 4,218,000 4,506,000
Deposits and other assets............................................. 3,325,000 3,458,000
Excess of cost over fair value of net assets acquired - net........... 1,020,000 1,062,000
--------------- ---------------
$ 141,229,000 $ 118,957,000
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------------------------------------------------------------------------------------
Current liabilities:
Current portion of long-term debt................................... $ 148,000 $ 269,000
Accounts payable and accrued expenses............................... 47,736,000 41,229,000
Income taxes payable................................................ 36,000 56,000
Other current liabilities........................................... 427,000 185,000
--------------- ---------------
Total current liabilities......................................... 48,347,000 41,739,000
Long-term debt:
Notes payable....................................................... 58,173,000 43,306,000
Subordinated debt................................................... 6,137,000 6,187,000
Other long-term debt................................................ 1,207,000 1,216,000
--------------- ---------------
113,864,000 92,448,000
--------------- ---------------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares
authorized, none issued........................................... - -
Common stock, $.01 par value, 40,000,000 shares
authorized, 3,973,431 shares issued and outstanding............... 40,000 40,000
Capital in excess of par value...................................... 25,751,000 25,751,000
Retained earnings................................................... 2,111,000 1,169,000
Treasury stock, at cost, 57,860 and 36,060 shares................... (537,000) (451,000)
--------------- ---------------
27,365,000 26,509,000
--------------- ---------------
$ 141,229,000 $ 118,957,000
=============== ===============
</TABLE>
See notes to consolidated condensed financial statements
1
<PAGE>
<TABLE>
<CAPTION>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
QUARTERS NINE MONTHS
PERIODS ENDED SEPTEMBER 30 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES.................................. $ 88,570,000 $ 59,027,000 $ 239,093,000 $ 185,538,000
Cost of sales.............................. (71,837,000) (45,896,000) (193,449,000) (143,742,000)
--------------- --------------- --------------- ---------------
Gross profit............................... 16,733,000 13,131,000 45,644,000 41,796,000
Selling, general and
administrative expenses.................. (14,576,000) (11,516,000) (40,450,000) (35,308,000)
--------------- --------------- --------------- ---------------
INCOME FROM OPERATIONS..................... 2,157,000 1,615,000 5,194,000 6,488,000
Interest expense........................... (1,276,000) (1,071,000) (3,540,000) (3,263,000)
--------------- --------------- --------------- ---------------
INCOME BEFORE INCOME TAXES................. 881,000 544,000 1,654,000 3,225,000
Income tax provision....................... (379,000) (234,000) (711,000) (1,387,000)
--------------- --------------- --------------- ---------------
NET INCOME................................. $ 502,000 $ 310,000 $ 943,000 $ 1,838,000
=============== =============== =============== ===============
Earnings per share:
Basic.................................... $ .13 $ .08 $ .24 $ .47
====== ====== ====== ======
Diluted.................................. $ .13 $ .08 $ .24 $ .46
====== ====== ====== ======
</TABLE>
See notes to consolidated condensed financial statements
2
<PAGE>
<TABLE>
<CAPTION>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30 1999 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash Flows Used For Operating Activities.............................. $ (13,781,000) $ (707,000)
-------------- --------------
Cash Flows From Investing Activities:
Acquisition of property and equipment................................. (460,000) (326,000)
Increase in other assets.............................................. (222,000) (295,000)
-------------- --------------
Cash flows used for investing activities........................ (682,000) (621,000)
-------------- --------------
Cash Flows From Financing Activities:
Net borrowings under line of credit agreement......................... 14,904,000 1,229,000
Increase in notes payable............................................. - 14,000
Repayments of notes payable........................................... (231,000) (262,000)
Purchase of treasury shares........................................... (86,000) -
Net proceeds from issuance of equity securities....................... - 4,000
-------------- --------------
Cash flows provided by financing activities..................... 14,587,000 985,000
-------------- --------------
Increase (decrease) in cash........................................... 124,000 (343,000)
Cash, beginning of period............................................. 473,000 444,000
-------------- --------------
Cash, end of period................................................... $ 597,000 $ 101,000
============== ==============
Supplemental Cash Flow Information:
Interest paid......................................................... $ 3,007,000 $ 3,170,000
============== ==============
Income taxes paid..................................................... $ 720,000 $ 1,223,000
============== ==============
</TABLE>
See notes to consolidated condensed financial statements
3
<PAGE>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
- ---------------------
In the opinion of management, the accompanying unaudited Consolidated Condensed
Financial Statements include all adjustments (consisting of normal recurring
accruals or adjustments only) necessary to present fairly the financial position
at September 30, 1999, and the results of operations and the cash flows for all
periods presented. The results of operations for the interim periods are not
necessarily indicative of the results to be obtained for the entire year.
For a summary of significant accounting policies (which have not changed from
December 31, 1998) and additional financial information, see the Company's
Annual Report on Form 10-K for the year ended December 31, 1998, including the
consolidated financial statements and notes thereto which should be read in
conjunction with these financial statements.
All references to shares of common stock, $.01 par value ("Common Stock"), stock
options and exercise prices per share and per share amounts have been restated
to reflect the effect of the Reverse Stock Split (see Note 5 below) unless
otherwise indicated.
Earnings Per Share
- ------------------
The following average shares were used for the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
Quarters Nine Months
Periods Ended September 30 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Basic.................................. 3,922,838 3,937,322 3,932,527 3,936,920
Diluted................................ 3,922,838 4,014,496 3,932,527 4,025,209
</TABLE>
2. LONG-TERM DEBT
Outstanding borrowings at September 30, 1999 under the Company's $100 million
line of credit facility aggregated $58,167,000.
3. OPTIONS
During the six months ended September 30, 1999, no stock options were granted by
the Company. During the quarter ended March 31, 1999, the Company granted an
aggregate of 39,000 stock options to 30 individuals pursuant to the Employees',
Officers', Directors' Stock Option Plan, as amended and restated (the "Stock
Option Plan"). These options have an exercise price of $4.50 per share (fair
market value at date of grant) and vest over a five-year period and are
exercisable over a six-year period. During the nine months ended September 30,
1999, 53,863 stock options were canceled at exercise prices ranging from $4.49
to $12.66 per share.
At the Company's 1999 annual meeting of shareholders which was held on June 1,
1999, the shareholders of the Company approved an amendment to the Stock Option
Plan increasing the number of shares of Common Stock reserved for issuance under
the Stock Option Plan to 900,000 shares and extending its term and expiration
date to April 18, 2009.
4
<PAGE>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
All stock option and Stock Option Plan amounts above have been adjusted to
reflect the Reverse Stock Split (as defined below).
4. STOCK REPURCHASE PROGRAM
On May 24, 1999, the Company announced that the Company's Board of Directors
authorized the repurchase of up to $2 million in purchase price of the Company's
Common Stock. The stock repurchases may, at the discretion of the Company's
management, be made from time to time at prevailing prices in the open market or
through privately negotiated transactions. The Company's management will base
its decision on market conditions, the price of the Common Stock and other
factors. The Company intends to make such stock repurchases using available cash
flow from operations and/or available borrowings under its credit facility. Any
shares of Common Stock repurchased will be available for reissuance in
connection with the Stock Option Plan or for other corporate purposes. As of
September 30, 1999, the Company repurchased 21,800 shares of its Common Stock at
an average price of $3.95 per share. The aggregate cost of the repurchased
shares is reflected as treasury stock on the Consolidated Condensed Balance
Sheet.
5. REVERSE STOCK SPLIT
On June 1, 1999, the Company's shareholders approved a one-for-five reverse
stock split (the "Reverse Stock Split") of the Company's outstanding shares of
Common Stock. The Reverse Stock Split became effective for trading in the
Company's new Common Stock as of Wednesday, June 2, 1999. Immediately following
the Reverse Stock Split, there were 3,973,431 shares of Common Stock
outstanding. The $.01 par value of the Common Stock remained the same after the
Reverse Stock Split.
6. NASDAQ LISTING
On June 24, 1999, the Company was advised by the Nasdaq Listing Qualifications
department of The Nasdaq Stock Market (the "Nasdaq Listing Department") that the
Company maintained a bid price in excess of the $1.00 minimum bid requirement
under The Nasdaq Stock Market rules for a minimum of ten consecutive business
days. Accordingly, the matter of maintaining a minimum bid price detailed in a
previous notification from the Nasdaq Listing Department was closed.
5
<PAGE>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
All American Semiconductor, Inc. and its subsidiaries (the "Company") is a
national distributor of electronic components manufactured by others. The
Company distributes a full range of semiconductors (active components),
including transistors, diodes, memory devices and other integrated circuits, as
well as passive components, such as capacitors, resistors, inductors and
electromechanical products, including cable, switches, connectors, filters and
sockets. These products are sold primarily to original equipment manufacturers
("OEMs") in a diverse and growing range of industries, including manufacturers
of computers and computer-related products, networking, satellite and
communications products, consumer goods, robotics and industrial equipment,
defense and aerospace equipment and medical instrumentation. The Company also
sells products to contract electronics manufacturers who manufacture products
for companies in all electronics industry segments. Through the Aved Memory
Products and Aved Display Technologies divisions of its subsidiary, Aved
Industries, Inc., the Company also designs and has manufactured under the label
of its subsidiary's divisions certain board level products including memory
modules and flat panel display driver boards. These products are also sold to
OEMs.
Results of Operations
- ---------------------
The Company achieved record net sales for the quarter and nine months ended
September 30, 1999 of $88.6 million and $239.1 million, representing a 50.0% and
28.9% increase from net sales of $59.0 million and $185.5 million for the same
periods of 1998. The increases resulted from improved conditions in the industry
as well as from increased sales in most territories and contributions from two
new sales offices which were opened during the second quarter of 1999.
Gross profit was $16.7 million and $45.6 million for the third quarter and first
nine months of 1999, compared to $13.1 million and $41.8 million for the same
periods of 1998. The increases were due to the increases in net sales. Gross
profit margins as a percentage of net sales were 18.9% and 19.1% for the third
quarter and first nine months of 1999 compared to 22.2% and 22.5% for the third
quarter and first nine months of 1998. The declines in gross profit margins
reflect increased competition, a greater number of low margin, large volume
transactions and continued changes in the Company's product mix. In addition,
the Company has experienced lower margins relating to the development of
long-term strategic relationships with accounts which have required aggressive
pricing programs. Management expects downward pressure on gross profit margins
to continue in the future.
Selling, general and administrative expenses ("SG&A") was $14.6 million for the
third quarter of 1999 compared to $11.5 million for the third quarter of 1998.
SG&A for the first nine months of 1999 was $40.5 million compared to $35.3
million for the first nine months of 1998. The increases were primarily a result
of an increase in the Company's infrastructure to support the changing needs and
additional requirements of its customers and increased variable expenses
associated with the increases in sales and gross profit. Furthermore, in an
effort to drive expansion and internal growth, the Company opened additional
sales offices and increased its management personnel during 1999. Due to these
factors, the Company expects that SG&A will increase in future periods.
SG&A as a percentage of net sales improved to 16.5% and 16.9% for the third
quarter and nine months ended September 30, 1999, from 19.5% and 19.0% for the
same periods of 1998. The improvements in SG&A as a percentage of sales reflect
the increases in net sales.
Income from operations increased 33.6% to $2.2 million for the third quarter of
1999 from $1.6 million for the third quarter of 1998. The increase in income
from operations for the third quarter of 1999 was
6
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ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
================================================================================
attributable to the increase in net sales, which more than offset the impact of
the decline in the gross profit margin and the increase in SG&A. For the first
nine months of 1999, income from operations was $5.2 million compared to $6.5
million for the same period of 1998. The decline in income from operations for
the nine months ended September 30, 1999 was due to the impact of the decline in
the gross profit margin as well as the increase in SG&A as discussed above.
Interest expense was $1.3 million and $3.5 million for the third quarter and
first nine months of 1999, compared to $1.1 million and $3.3 million for the
same periods of 1998. The increases in interest expense primarily resulted from
increases in average borrowings during the second and third quarters of 1999 to
support the growth in sales and the expanded infrastructure.
Net income increased 61.9% to $502,000, or $.13 per share (diluted), for the
quarter ended September 30, 1999 from $310,000, or $.08 per share (diluted), for
the third quarter of 1998. The increase in net income for the third quarter of
1999 was primarily due to the increase in net sales which more than offset the
impact of the decline in the gross profit margin and the increases in SG&A and
interest expense. For the first nine months of 1999, net income was $943,000, or
$.24 per share (diluted), compared to $1.8 million, or $.46 per share (diluted),
for the same period of 1998. The decrease in net income for the nine months
ended September 30, 1999 reflects the decrease in the gross profit margin as
well as increases in SG&A and interest expense.
All per share amounts reflect a one-for-five reverse stock split which became
effective June 2, 1999.
Liquidity and Capital Resources
- -------------------------------
Working capital at September 30, 1999 increased to $84.3 million from working
capital of $68.2 million at December 31, 1998. The current ratio was 2.74:1 at
September 30, 1999, compared to 2.63:1 at December 31, 1998. The increases in
working capital and the current ratio were primarily due to increases in
accounts receivable and inventories. These increases more than offset an
increase in accounts payable. Accounts receivable levels at September 30, 1999
were $53.1 million, up from accounts receivable of $37.8 million at December 31,
1998, reflecting significant increases in sales for the third quarter of 1999
over the fourth quarter of 1998. Inventory levels were $73.6 million at
September 30, 1999, up from $69.1 million at December 31, 1998. Accounts payable
and accrued expenses increased to $47.7 million at September 30, 1999 from $41.2
million at December 31, 1998. The increases in inventory and accounts payable
reflect increases in inventory purchases to support higher sales.
On May 24, 1999, the Company announced that the Company's Board of Directors
authorized the repurchase of up to $2 million in purchase price of the Company's
Common Stock. The Company intends to make such stock repurchases using available
cash flow from operations and/or available borrowings under its credit facility.
Any shares of Common Stock repurchased will be available for reissuance in
connection with the Stock Option Plan or for other corporate purposes. As of
September 30, 1999, the Company repurchased 21,800 shares of its Common Stock at
an average price of $3.95 per share.
At September 30, 1999, outstanding borrowings under the Company's credit
facility aggregated $58.2 million.
The Company expects that its cash flows from operations and additional
borrowings available under its credit facility will be sufficient to meet its
current financial requirements over the next twelve months.
7
<PAGE>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
================================================================================
Year 2000 Issue
- ---------------
The Company has evaluated its business information technology (IT) systems as
well as its non-IT systems and has surveyed its major vendors. The Company has
completed the testing of its internal systems and believes that its systems are
in compliance with Year 2000 requirements. The Company has not incurred any
material expenditures of funds or internal resources relating to such compliance
of its internal systems. Based upon the survey of the Company's major suppliers,
the Company currently believes that Year 2000 issues of its suppliers should not
have a material adverse effect on the Company's business, operations or
financial condition. Nevertheless, to the extent the Company's vendors
(particularly its major vendors) experience Year 2000 difficulties, the Company
may face delays in obtaining or even be unable to obtain certain products and
services and therefore may be unable to make shipments to customers resulting in
a material adverse effect on the Company's business, operations and financial
condition. The Company has not surveyed its customers and on a limited basis has
surveyed certain other third parties with which it has a business relationship.
As no assessment has been made of any potential impact by customers'
non-compliance (such as the ability of customers to electronically interface
with the Company), the Company does not have a cost estimate to address any
non-compliance by these customers nor can any assurance be given that such
non-compliance will not result in a material adverse effect on the Company's
business, operations and financial condition. The Company has not undertaken an
analysis (nor does it currently intend to analyze) the effect of a worst-case
Year 2000 scenario on the Company's business, operations or financial condition
and, accordingly, the materiality of such effect (if any) is uncertain and the
Company does not have a contingency plan and currently does not intend to create
one.
Forward-Looking Statements
- --------------------------
This Form 10-Q contains forward-looking statements (within the meaning of
Section 21E. of the Securities Exchange Act of 1934, as amended), representing
the Company's current expectations and beliefs concerning the Company's future
performance and operating results, its products, services, markets and industry,
and/or future events relating to or effecting the Company and its business and
operations. If and when used in this Form 10-Q, the words "believes,"
"estimates," "plans," "expects," "intends," "anticipates," "could" and similar
expressions as they relate to the Company or its management are intended to
identify forward-looking statements. The actual results or achievements of the
Company could differ materially from those indicated by the forward-looking
statements because of various risks and uncertainties. Factors that could
adversely affect the Company's future results, performance or achievements
include, without limitation, the amount and timing of shipments of previously
booked customer orders, the effectiveness of the Company's business and
marketing strategies, timing of delivery of products from suppliers, price
increases from suppliers that cannot be passed on to the Company's customers at
the same rate, the product mix sold by the Company, the Company's development of
new customers, existing customer demand as well as the level of demand for
products of its customers, the ability of the Company to open new sales offices
in a timely and cost-effective manner and to expand its product offerings and
continue to enhance its service capabilities and the timing and cost thereof,
utilization by the Company of any excess capacity, availability of products from
and the establishment and maintenance of relationships with suppliers, price
erosion in and price competition for products sold by the Company, management of
growth and expenses, the ability of the Company to generate the expected return
from its addition of people, addition of sales offices and the increase of its
infrastructure, the Company's ability to collect accounts receivable, price
decreases on inventory that is not price protected, gross profit margins,
including decreasing margins relating to the Company being required to have
aggressive pricing programs, increased competition from third party logistics
companies and e-brokers through the use of the Internet as well as from its
traditional competitors, availability and terms of financing to fund capital
needs,
8
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ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
================================================================================
the continued enhancement of telecommunication, computer and information
systems, the achievement by the Company and its vendors and customers and other
third parties with which the Company has a business relationship of Year 2000
compliance in a timely and cost efficient manner, the continued and anticipated
growth of the electronics industry and electronic components distribution
industry, the impact on certain of the Company's suppliers and customers of
economic or financial turbulence in off-shore economies and/or financial
markets, change in government tariffs or duties, currency fluctuations, a change
in interest rates, the state of the general economy, and the other risks and
factors detailed in this Form 10-Q, in the Company's other filings with the
Securities and Exchange Commission and in its 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.
Quantitative and Qualitative Disclosures About Market Risk
- ----------------------------------------------------------
The Company's credit facility bears interest based on interest rates tied to the
prime or LIBOR rate, either of which may fluctuate over time based on economic
conditions. As a result, the Company is subject to market risk for changes in
interest rates and could be subjected to increased or decreased interest
payments if market interest rates fluctuate. If market interest rates increase,
the impact may have a material adverse effect on the Company's financial
results.
9
<PAGE>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
================================================================================
Item 6. Exhibits and Reports on Form 8-K
- ------- --------------------------------
(a) Exhibits
--------
11.1 Statement Re: Computation of Per Share Earnings (Unaudited).
27.1 Financial Data Schedule.
(b) Reports on Form 8-K
-------------------
The Company did not file any reports on Form 8-K during the quarter
ended September 30, 1999.
------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
All American Semiconductor, Inc.
------------------------------------------------
(Registrant)
Date: November 12, 1999 /s/ PAUL GOLDBERG
------------------------------------------------
Paul Goldberg, Chairman of the Board
(Duly Authorized Officer)
Date: November 12, 1999 /s/ HOWARD L. FLANDERS
------------------------------------------------
Howard L. Flanders, Executive Vice President and
Chief Financial Officer
(Principal Financial and Accounting Officer)
10
<TABLE>
<CAPTION>
ALL AMERICAN SEMICONDUCTOR, INC. AND SUBSIDIARIES EXHIBIT 11.1
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS (UNAUDITED)
QUARTERS NINE MONTHS
PERIODS ENDED SEPTEMBER 30 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------
BASIC EARNINGS PER SHARE:
<S> <C> <C> <C> <C>
Net Income....................................... $ 502,000 $ 310,000 $ 943,000 $ 1,838,000
============= ============= ============= =============
Weighted Average Shares Outstanding (1).......... 3,922,838 3,937,322 3,932,527 3,936,920
============= ============= ============= =============
Basic Earnings Per Share (1)..................... $ .13 $ .08 $ .24 $ .47
===== ===== ===== =====
DILUTED EARNINGS PER SHARE:
Net Income....................................... $ 502,000 $ 310,000 $ 943,000 $ 1,838,000
============= ============= ============= =============
Weighted Average and Dilutive Shares (1):
Weighted average shares outstanding............ 3,922,838 3,937,322 3,932,527 3,936,920
Dilutive shares................................ - 77,174 - 88,289
------------- ------------- ------------- -------------
3,922,838 4,014,496 3,932,527 4,025,209
============= ============= ============= =============
Diluted Earnings Per Share (1)................... $ .13 $ .08 $ .24 $ .46
===== ===== ===== =====
</TABLE>
(1) Restated to reflect a one-for-five reverse stock split which became
effective June 1, 1999.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial
information from the Registrant's consolidated
condensed financial statements as of and for the
nine months ended September 30, 1999, and is
qualified in its entirety by reference to such
consolidated financial statements.)
</LEGEND>
<CIK> 0000818074
<NAME> ALL AMERICAN SEMICONDUCTOR, INC.
<MULTIPLIER> 1,000
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<EXCHANGE-RATE> 1
<CASH> 597
<SECURITIES> 0
<RECEIVABLES> 55,041
<ALLOWANCES> 1,941
<INVENTORY> 73,554
<CURRENT-ASSETS> 132,666
<PP&E> 10,580
<DEPRECIATION> 6,362
<TOTAL-ASSETS> 141,229
<CURRENT-LIABILITIES> 48,347
<BONDS> 65,517
0
0
<COMMON> 40
<OTHER-SE> 27,325
<TOTAL-LIABILITY-AND-EQUITY> 141,229
<SALES> 239,093
<TOTAL-REVENUES> 239,093
<CGS> 193,449
<TOTAL-COSTS> 193,449
<OTHER-EXPENSES> 39,858
<LOSS-PROVISION> 592
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</TABLE>
