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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-K

(Mark One)

For the fiscal year ended December 31, 2004

or

For the transition period from                    to                    

Commission File Number 0-23426

REPTRON ELECTRONICS, INC.

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (813) 854-2000

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

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.

Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes  x    No  ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).

Yes  ¨    No  x

The aggregate market value of shares of the registrant’s common stock held by non-affiliates of the registrant based upon the closing sale price of our common stock on June 30, 2004, the last day of our second fiscal quarter as reported on the Over-The-Counter Bulletin Board, was approximately $36,850,000.

The number of shares of the registrant’s common stock issued and outstanding as of March 30, 2005 was 5,000,000.

Documents Incorporated by Reference:

Portions of Reptron’s definitive proxy statement for the 2005 Annual Meeting of Reptron’s Shareholders are incorporated by reference into Part III of this Form 10-K.

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REPTRON ELECTRONICS, INC.

FORM 10-K ANNUAL REPORT

Fiscal Year ended December 31, 2004

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PART I

References to “Reptron”, “the Company”, “we”, “us” and “our” refer to Reptron Electronics, Inc., unless the context otherwise requires. This document contains certain forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are made in reliance on the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Factors that could cause or contribute to actual results to differ materially include the following: business conditions and growth in Reptron’s industry and in the general economy; competitive factors; risks due to shifts in market demand; the ability of Reptron to complete acquisitions; the risks discussed in the section of this report titled “Factors That Could Affect Future Results” and the risk factors listed from time to time in Reptron’s reports filed with the Securities and Exchange Commission as well as assumptions regarding the foregoing. The words “believe”, “plans”, “estimate”, “expect”, “intend”, “should”, “may”, “will”, “appear”, “hope”, “anticipate”, and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made These statements are only predictions. Reptron undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

General

We are an electronics manufacturing services (“EMS”) company providing engineering services, display and systems integration services and electronic manufacturing services through our two divisions: Reptron Manufacturing Services (“RMS”) and Reptron Outsource Manufacturing and Design (“ROMD”). RMS offers full electronics manufacturing services including complex circuit board assembly, complete supply chain services and manufacturing engineering services to OEMs in a wide variety of industries including medical, industrial/instrumentation, banking, telecommunications, and semiconductor equipment. ROMD provides value-added display design engineering and system integration services to OEMs primarily in the medical, semiconductor equipment, and industrial/instrumentation industries.

During 2003, we divested two divisions enabling the Company to focus solely on our core competency as an EMS provider. In June, 2003, we sold certain assets and liabilities of our electronic components distribution business, Reptron Distribution Services (“RDS”). In October, 2003, we sold substantially all of the assets and certain liabilities of our memory module division, Reptron Computer Products (“RCP”). RDS and RCP together comprised our electronic components distribution (“ECD”) segment. Descriptions of the ECD segment and its operating results have been included in financial statements and various other documents previously prepared by the Company. However, this annual report and other future reports filed with the Securities and Exchange Commission will focus primarily on our remaining operations in the EMS industry.

Reptron was incorporated under the laws of Michigan in 1973, reincorporated under the laws of Florida in 2003 and reorganized as a Florida corporation under Chapter 11 of the U.S. Bankruptcy Code in 2004. Reptron’s principle executive offices are located at 13700 Reptron Boulevard, Tampa, Florida 33626, and the telephone number is (813) 854-2000. Information about our Company is also available at our website at www.reptron.com which includes links free of charge to reports and filings we have made with the Securities and Exchange Commission (“SEC”). The contents of our website are not incorporated by reference in this Annual Report on Form 10-K.

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Reorganization

On February 3, 2004, Reptron implemented its previously announced financial restructuring when its pre-negotiated Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code (the “Plan” or “Plan of Reorganization”) became effective. Events occurring during 2003 and through February 3, 2004 related to the Chapter 11 proceedings are summarized as follows.

In January 2003, we announced that we were seeking to restructure $76.3 million principal amount of our outstanding 6¾% Convertible Subordinated Notes (the “Convertible Notes”). As part of this initiative, we discontinued all interest payments on the Convertible Notes.

In February 2003, we commenced discussions with certain holders of the Convertible Notes (“Ad-hoc Committee”) to discuss the financial condition of the Company and the proposed restructuring. We engaged in extensive, arms’ length negotiations with the Ad-hoc Committee regarding the terms of the consensual restructuring of Reptron.

On October 28, 2003, we filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Under the terms of the Plan, substantially all of our general unsecured creditors (except for holders of the Convertible Notes and certain other creditors) received full payment for all prepetition claims within ninety days subsequent to the Plan’s effective date. The Plan was confirmed by the bankruptcy court on January 14, 2004 and became effective February 3, 2004, resulting in conversion of the $76.3 million of Convertible Notes, $6.4 million of accrued interest and $0.8 million of other liabilities into $30 million of Senior Secured Notes due in 2009 (“New Notes”) and the issuance of 95% of the common stock of the reorganized entity (“New Common Stock”). Previously outstanding common stock was exchanged for 5% of the New Common Stock. The New Notes carry an interest rate of seven percent per annum during the first two years and eight percent per annum during the remaining three years.

In accordance with the Plan, Reptron, among other matters:

Our consolidated balance sheet at December 31, 2003 reflects $76.3 million principal amount of Convertible Notes along with $6.4 million of accrued and unpaid interest thereon, $0.6 million of real property lease liabilities, and $0.2 million of severance liabilities as “Liabilities subject to compromise.” These liabilities are reported at the amount allowed on pre-petition claims in the Chapter 11 proceedings.

Interest expense of approximately $4.3 million on the Convertible Notes was accrued through October 28, 2003, the Chapter 11 petition filing date, even though we discontinued interest payments on such debt. Interest expense for 2003 excludes $0.9 million of stated contractual interest associated with the Convertible Notes between October 28, 2003 and December 31, 2003. No interest expense was recorded on the Convertible Notes in 2004.

The Company incurred $4.1 million of reorganization costs during 2003 and $1.0 million in 2004, which primarily includes professional fees of approximately $2.4 million, a write-off of debt issuance costs of approximately $1.5 million, and contract settlement and other miscellaneous costs of approximately $1.2 million.

The Company’s emergence from Chapter 11 bankruptcy proceedings on February 3, 2004 resulted in a new reporting entity and adoption of fresh start reporting, in accordance with Statement of Position No. 90-7 (“SOP

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90-7”), “Financial Reporting by Entities in Reorganization Under the Bankruptcy Code.” Although the effective date of the Plan was February 3, 2004, the Company has accounted for the consummation of the Plan as if it occurred on January 31, 2004. The balance sheet as of December 31, 2003 does not give effect to any adjustments in the carrying value of assets or the amounts or classification of liabilities that were recorded upon adoption of fresh start accounting. As a result of the extinguishment of the liabilities subject to compromise, Reptron recognized a reorganization gain on debt discharge amounting to $3.5 million, representing the excess of the carrying value of those liabilities compared to management’s estimate of the fair value of the New Common Stock and the New Notes. As provided for in the Company’s Plan of Reorganization, the holders of the liabilities subject to compromise would receive their ratable portion of the New Common Stock and New Notes in full satisfaction of those liabilities.

The following unaudited financial information reflects the implementation of the Plan as of the close of business on January 31, 2004. Reorganization adjustments have been made to reflect the discharge of debt and adoption of fresh start reporting in accordance with SOP 90-7. Accordingly, the reorganization value of Reptron of $86 million, as disclosed in the Plan of Reorganization and related Disclosure Statement, limited to the aggregate carrying value of the pre-emergence assets, has been used to allocate the value of the assets and liabilities of Reptron in conformity with Statement of Financial Accounting Standards No. 141 (“SFAS 141”), “Business Combinations.” Reptron determined that independent third party appraisals of its long-term tangible and intangible assets was necessary in order to allocate the reorganization value of the Company to its various assets at January 31, 2004. The fresh-start adjustments included in the table which follows represent management’s estimate of adjustments necessary to record assets and liabilities at fair value with consideration given to the appraisal work that has been completed. Reptron is currently evaluating the effects the reorganization will have on its net operating loss carryforwards for income tax purposes. The amount of net operating losses available to the company may be limited in total or be subject to annual limitations.

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Background of the Electronic Manufacturing Services Industry

Electronics Manufacturing Services.    The EMS industry has experienced rapid changes over the past several years as an increasing number of original equipment manufacturers (“OEMs”) have chosen to outsource printed circuit board assemblies, display product integration, and total product assembly to electronics manufacturing specialists such as Reptron Manufacturing Services and Reptron Outsource Manufacturing and Design. Factors driving OEMs to favor outsourcing to electronics manufacturing specialists include:

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Strategy

Reptron’s principal business objective is to expand its presence as an electronics manufacturing services provider within specific market segments. Reptron has formed a strategy to achieve this objective based upon the following key elements:

Factors That Could Affect Future Results

Customer Effect from Bankruptcy Filing.    During 2001 through 2004, the Company incurred significant financial losses. These losses combined with defaults incurred on our senior secured revolving credit facility (“Credit Agreement”) and Convertible Notes culminated in filing a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on October 28, 2003. Reptron’s customers engage the Company to produce complex electronic products. These manufacturing engagements require significant investment and planning by both our customers and Reptron. Our inability to perform for our customers for whatever reason would have a significant impact on their business operations. Although the Company has subsequently completed its bankruptcy proceedings, it is possible that our major customers could suspend or terminate business activity with us due to their concerns about the long term financial stability of the Company. This action would have a material adverse effect on the Company.

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Supplier Effect from Bankruptcy Filing.    Reptron relies on a supply chain comprised of approximately 900 different suppliers. Many of the materials delivered by this supply chain are custom or built to order requiring advanced planning, tooling and significant disengagement costs. Our Plan confirmed by the bankruptcy court provided for the vast majority of the Company’s suppliers to be paid in full for both pre-petition and post-petition shipments. Although our suppliers have been paid in full, it is possible that our bankruptcy filing could result in several adverse actions including restricting our credit limit and the time allowed to pay outstanding obligations, elimination of all credit lines requiring cash in advance or cash on delivery terms, price increases to compensate for perceived risks and choosing not to supply the Company altogether requiring additional time and investment to resource materials. These actions could have a material adverse effect on the Company.

Bankruptcy Effect on Adding New Customers.    Reptron’s future success is greatly dependent upon the Company’s ability to increase sales. The Company’s growth strategy includes maintaining and growing sales from current customers as well as adding new customers. Although the Plan has become effective, our ability to attract new customers could be negatively impacted due to their concerns about the long term financial stability of the Company and the fact that the Company has recently emerged from bankruptcy. Our inability to add new customers could have a material adverse effect on the Company.

Recent Adverse Economic Environment.    During 2001 through 2003, the United States economy experienced little growth. Many companies in the electronics industry experienced significant contraction due to adverse market conditions. We have continued cost cutting measures, initiated in 2001, that were directed at addressing these market conditions. We sold two unprofitable divisions during 2003. Additionally, we significantly reduced our debt level and related interest costs through a pre-negotiated Chapter 11 filing. There can be no assurance, however, that these combined measures will be effective or adequate to compensate for the significant reductions in our sales and earnings. In addition, the default under our Convertible Notes and our bankruptcy filing have caused some of our suppliers to limit the amount of overall credit extended to us and/or reduce the time for payment of credit putting additional pressure on our overall financial condition. Further weakening of the economy, could have a material adverse effect on our operating results and financial condition.

Customer Concentration and Related Factors Effecting Operating Results.    Reptron has certain customers that account for a significant part of total net sales. Our three largest customers accounted for approximately 13% (Datascope), 12% (Diebold), and 12% (Eastern Research) of total net sales in 2004, respectively, and 21% (Diebold), 12% (Datascope), and 6% of total net sales in 2003, respectively. The loss of one or more of these major customers, or a reduction in their level of purchasing, could have a material adverse effect on Reptron’s business, results of operations and financial condition. Some of our customers have expressed concern over the large losses we have incurred and the bankruptcy filing. It is possible that our major customers could suspend or terminate business activity with us due to these concerns. This action would have a material adverse effect on our business.

Reptron’s operating results are affected by a number of factors, including fixed plant utilization, price competition, ability to keep pace with technological developments, the degree of automation that can be used in an assembly process, efficiencies that can be achieved by managing inventories and fixed assets, the timing of orders from major customers, the timing of capital expenditures in anticipation of increased sales, incurring substantial start-up costs on new assemblies, customer product delivery requirements and costs and shortages of components and labor. In addition, because of the limited number of customers served and the corresponding concentration of its accounts receivable, the insolvency or other inability or unwillingness of Reptron’s customers to pay for manufacturing services could have a material adverse effect on Reptron’s operating results.

The Volume and Timing of Customer Sales May Vary.    The volume and timing of purchase orders placed by our customers are affected by a number of factors, including variation in demand for customers’ products, customer attempts to manage inventory, changes in product design or specifications and changes in the customers’ manufacturing strategies. Reptron typically does not obtain long-term purchase orders or commitments but instead works with its customers to develop nonbinding forecasts of future requirements. Based

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on such nonbinding forecasts, we make commitments regarding the level of business that we will seek and accept, the timing of production schedules and the levels and utilization of personnel and other resources. A variety of conditions, both specific to each individual customer and generally affecting each customer’s industry, may cause customers to cancel, reduce or delay orders that were either previously made or anticipated. For example, voting equipment accounted for approximately 11% of Reptron’s net sales in 2003, however, we received no sales orders for voting equipment in 2004. The timing and level of acceptance of the use of voting equipment as opposed to current methods renders sales in this market segment to be very volatile. Generally, customers may cancel, reduce or delay purchase orders and commitments without penalty, except for payment for services rendered or products completed and, in certain circumstances, payment for materials purchased and charges associated with such cancellation, reduction or delay. Significant or numerous cancellations, reductions or delays in orders by customers, or any inability by customers to pay for services provided by us or to pay for components and materials purchased by us on such customers’ behalf, could have a material adverse effect on our operating results.

Competition.    We face substantial competition. We believe that many of our competitors have international operations and significantly greater manufacturing, financial, marketing, research and development resources, and broader name recognition. Reptron competes in a highly fragmented market composed of a diverse group of EMS providers. Reptron believes that the key competitive factors in its markets are manufacturing flexibility, price, manufacturing quality, advanced manufacturing technology and reliable delivery. Additionally, Reptron faces the potential risk that its customers may elect to produce their products internally, thereby eliminating our manufacturing opportunities. There can be no assurance that Reptron will be able to continue to compete effectively with existing or potential competitors.

Availability of Components.    We rely on third-party suppliers for electronic components. We believe that component shortages would have a material adverse effect on Reptron’s ability to service its customers. At various times, there have been shortages of components in the electronics industry and from time to time the supply of certain electronic components is subject to limited allocations. If shortages of components should occur, we expect that we may be forced to delay shipment or to purchase components at higher prices (that we may not be able to be pass on to our customers), which may have a material adverse effect on customer demand, our ability to service customer needs or our gross margins. We believe that any of these events could have a material adverse effect on our operating results.

Dependence Upon Key Personnel.    Reptron is largely dependent on the efforts and abilities of its key managerial and technical employees. The Company has not offered consistent increases in compensation for the last three years. Additionally, we have reduced medical and other benefits during this time frame in an effort to reduce operating expenses. The loss of the services of certain key employees or an inability to attract or retain qualified employees could have a material adverse effect on Reptron.

Migration of Electronic Manufacturing to Asia.    A growing number of electronic manufacturing service providers have relocated a portion or all of their manufacturing operations to Asia. In particular, the growth rate in China has been very strong in recent years to the detriment of other regions of the world. This trend is driven primarily by high availability of low cost labor. In order for us to remain competitive in the markets we serve and have targeted, we may need to expand a portion of our manufacturing capability to Asia. If we are unable to develop a manufacturing presence in Asia, our ability to effectively compete may be materially and adversely affected. There can be no assurance that we will develop a manufacturing presence in Asia.

Implementation of European RoHS Requirements and Other Environmental Regulations.    The European Union and the United Kingdom have developed additional manufacturing requirements aimed at the elimination of lead and other substances from most products sold in this region. These regulations become effective in 2006 and will require the industry to significantly change its manufacturing process and materials used in producing electronic products. These regulations will require Reptron to make additional capital investments in manufacturing equipment and introduce additional costs to the manufacturing and materials procurement

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process. There can be no assurance that Reptron will be able to comply with these new requirements in a timely fashion or that the additional costs associated with compliance will not have a material adverse effect of the Company’s operating results.

Expiration of Labor Union Contract.    The production workers in the Hibbing, Minnesota facility are organized and represented by a labor union. The current labor agreement expires in September, 2006. There can be no assurance that the Company will be able to negotiate a new labor agreement with terms and conditions which will allow for profitable operating results or that work stoppages will be avoided during the negotiation period.

Start-up Costs and Inefficiencies Related To New or Transferred Programs Can Adversely Affect Our Operating Results.    Start-up costs, the management of labor and equipment resources in connection with the establishment of new programs and new customer relationships, and the need to estimate required resources in advance can adversely affect our gross margins and operating results. These factors are particularly prominent in the early stages of the life cycle of new products and new programs. The effects of these start-up costs and inefficiencies can also occur when, and if, we open new facilities. These factors also affect our ability to efficiently use labor and equipment. Due to the improved economy and more successful marketing efforts, we are currently managing a number of new programs and new customer relationships. Consequently, our exposure to these factors has increased. In addition, if any of these new programs or new customer relationships were to be terminated, our operating results could be harmed, particularly in the near term.

Electronic Manufacturing Services (EMS)

Our operations include Reptron Manufacturing Services and Reptron Outsource Manufacturing and Design. Reptron Manufacturing Services currently operates from three locations and represents approximately 87% of total 2004 net sales. Reptron Outsource Manufacturing and Design was acquired in 1999 and operates from a single facility. Reptron Outsource Manufacturing and Design represents approximately 13% of our total 2004 net sales.

Manufacturing Operations.    Reptron Manufacturing Services provides turnkey manufacturing services, including the purchase of customer-specified components from its extensive network of component suppliers, assembly of components on printed circuit boards, performance of post-production testing and in certain instances total box build assembly. Reptron Manufacturing Services attempts to perform as much of a given manufacturing process as is feasible and generally does not perform labor-only, consignment assembly functions unless management believes that such engagements may provide a direct route to turnkey contracts. Typical manufacturing engagements include medium to high volume assembly of complex products.

Reptron Manufacturing Services provides design-for-manufacturability engineering services as well as surface mount technology (“SMT”) conversion from pin through hole (“PTH”) interconnection technologies and printed circuit board layout services for existing products. Reptron Manufacturing Services also provides test process design capabilities that include the design and development of test fixtures and procedures and software for both in-circuit tests and functional tests of circuit boards, components and products.

Reptron Manufacturing Services is able to efficiently manage its materials procurement and inventory management functions. The inherent scheduling and procurement challenges in medium volume production of a large number of different circuit board assemblies require a high level of expertise in material procurement. Reptron Manufacturing Services obtains its electronic components from a wide variety of manufacturers and distributors.

Reptron Outsource Manufacturing and Design performs product assembly services primarily for customers in the medical, industrial and semiconductor equipment market niches. This division also possesses specific expertise in flat panel display technology. We provide various forms of engineering, product burn-in, clean room environments and other services. This total service approach tends to produce customer loyalty and higher margins.

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Marketing and Customers.    Reptron Manufacturing Services follows a well-defined marketing strategy, which includes the following key elements:

Our marketing cycle for customers meeting these criteria normally spans six-to-twelve months. Additionally, the start-up phase for an engagement may run another six months. Typically, during this phase, significant investments are made by Reptron Manufacturing Services and the customer to successfully launch a high number of different, complex circuit board assemblies. Reptron Manufacturing Services works closely with its customers in all phases of design, start-up and production, and through this cooperative effort develops a close working relationship with the customer. These relationships, and the investments made both in time and financial resources by the customer and Reptron Manufacturing Services, management believes, promotes long-term customer loyalty.

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Reptron seeks to maintain diversity within its customer base and industries served. During 2004, Reptron’s largest three EMS customers represented 13%, 12%, and 12%, respectively, of total Reptron EMS net sales. During 2003, Reptron’s largest three EMS customers represented 21%, 12%, and 6%, respectively, of total Reptron EMS net sales. The following table sets forth the principle industries served and the percentage of Reptron’s EMS net sales derived from these industries for 2004 and 2003.

Manufacturing Facilities.    Reptron Manufacturing Services operates three plants. These manufacturing facilities are equipped with advanced SMT assembly equipment and PTH insertion equipment. The Gaylord, Michigan 80,000 square foot manufacturing facility is owned by us and was constructed in 1988. The Tampa, Florida 150,000 square foot manufacturing and corporate headquarters facility is owned by us and was completed in the first quarter of 1997. Reptron Manufacturing Services currently leases five buildings in Hibbing, Minnesota, which total 100,000 square feet. These buildings are owned in part by four individuals on Reptron Manufacturing’s senior management team. Additionally, we own a 40,300 square foot building in Hibbing, Minnesota which is occupied by Reptron Manufacturing Services. Reptron Outsource Manufacturing and Design operates from a 68,000 square foot leased facility in Fremont, California.

The Hibbing, Minnesota manufacturing plant accounted for approximately 35% of Reptron’s, 2004 net sales, with the Tampa, Florida manufacturing plant totaling approximately 27% of 2004 net sales, the Gaylord, Michigan plant totaling approximately 25% of 2004 net sales, and the Fremont, California facility producing the remaining 13% of 2004 EMS net sales.

Competition

We face substantial competition. Many of our competitors have international operations and significantly greater manufacturing, financial, marketing and research and development resources and broader name recognition than we do. Reptron competes in a highly fragmented market composed of a diverse group of EMS providers. We believe that the key competitive factors in our markets are manufacturing flexibility, price, manufacturing quality, advanced manufacturing technology and reliable delivery. Many EMS providers operate extremely high-volume facilities and focus on target markets, such as the computer industry, that Reptron does not seek to serve. Reptron considers its key competitive advantages to include its expertise in medium-to-high volume, flexible batch processing, its provision of value-added services and its material management techniques. We believe that our expertise in flexible, batch processing differentiates us from high-volume competitors because of the relative complexity of economically fulfilling a large number of batch contracts. We also believe that by focusing on medium-to-high volume production runs, Reptron competes effectively.

Reptron Outsource Manufacturing and Design competes in a highly fragmented market composed of a diverse group of EMS providers, display integration companies and electronic component distributors that have strategic alliances with display integration companies. We believe that market reputation combined with a high degree of technical competency, has allowed Reptron Outsource Manufacturing and Design to compete effectively in the marketplace.

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Management Information Systems

We have made significant investments in computer hardware, software and management information system (“MIS”) personnel. We employ approximately 18 individuals who are responsible for hardware upgrades, maintenance of current software and related databases and augmenting software packages with custom programming. We currently maintain an internet web page that provides a wide variety of information. Our expanded use of web based technologies include enhanced e-mail and interactive use of our intranet for data warehouse applications such as quality documentation, human resources documentation, MIS systems documentation and interactive corporate forms.

We operate Reptron Manufacturing Services with UNIX-based software packages written in a fourth generation language. The UNIX-based software packages used by Reptron Manufacturing Services may be operated on a variety of hardware platforms. Therefore, the Company is not restricted to the use of computer hardware from any one supplier and does not have the constraints associated with proprietary hardware.

Reptron Manufacturing Services operates an integrated MRP II package which has also been greatly enhanced by its MIS staff through custom programming. This system is used to operate and integrate Reptron Manufacturing Services’ manufacturing plants with central administrative functions.

Reptron Outsource Manufacturing and Design operates an integrated software package, MAS90. This client-server software has minimal hardware performance requirements and interfaces with a number of database formats, allowing the flexibility of utilizing third-party reporting tools.

Employees

As of March 4, 2005, we employed 1,006 persons, of whom 942 were dedicated to Reptron Manufacturing Services, 58 were dedicated to Reptron Outsource Manufacturing and Design and 6 were corporate employees. Hourly employees at the manufacturing plant in Hibbing, Minnesota are covered under a collective bargaining agreement with the International Brotherhood of Electrical Workers. The current term of the collective bargaining agreement expires in September 2006.

Owned facilities.    We own a 150,000 square foot facility located in Tampa, Florida which is occupied by the Tampa Reptron Manufacturing Services plant and the corporate headquarters for the entire Company. We also own an 80,000 square foot Reptron Manufacturing Services facility in Gaylord, Michigan. Finally, we own a 40,300 square foot manufacturing building which is one of six buildings that forms our manufacturing campus in Hibbing, Minnesota.

Leased Facilities.    We currently lease a total of 100,000 square feet of manufacturing and administrative offices for the Reptron Manufacturing Services operation in Hibbing, Minnesota. The lease on these buildings expires in December 2007.

We lease a total of 68,000 square feet of manufacturing and administrative offices for the Reptron Outsource Manufacturing and Design operation in Fremont, California. The lease on the building expires in November 2008.

We are, from time to time, involved in litigation relating to claims arising out of our operations in the ordinary course of business. We believe that none of these claims, which were outstanding as of December 31, 2004, should have a material adverse impact on our financial condition or results of operations.

None

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PART II

On October 28, 2003, the Company filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Our Plan of Reorganization was confirmed by the bankruptcy court on January 14, 2004 and became effective on February 3, 2004. The Company’s common stock (“Old Common Stock”) was cancelled and 5,000,000 shares of new common stock (“New Common Stock”) were issued pursuant to the Plan. The New Common Stock was distributed on March 22, 2004. The New Common Stock is traded on the Over the Counter Bulletin Board system (“OTCBB”) under the symbol “RPRN”.

Our Old Common Stock was traded on the OTCBB under the symbol “REPT”, prior to its cancellation. The Old Common Stock began trading on the OTCBB on September 22, 2003. From January 27, 2003 through September 21, 2003 our common stock was trading on the NASDAQ SmallCap Market. Prior to that, our common stock was traded on the NASDAQ National Market System. The following table sets forth, for the periods indicated, the high and low close prices of our common stock as reported by the NASDAQ National Market, the NASDAQ SmallCap Market and the Over the Counter Bulletin Board system, as appropriate:

On March 9, 2005, the last sale price of our New Common Stock, as reported by The OTCBB was $5.90 per share.

As of March 9, 2005, there were approximately 109 holders of record of our New Common Stock.

We have never declared or paid dividends on our common stock. We do not intend, for the foreseeable future, to declare or pay any cash dividends and intend to retain earnings, if any, for the future operation and expansion of our business. Our current Credit Agreement prohibits the payment of dividends and our Senior Secured Notes contain a restrictive covenant which limits our ability to pay cash dividends.

The following table sets forth certain information relating to our equity compensation plans as of December 31, 2004.

EQUITY COMPENSATION PLAN INFORMATION

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The equity compensation plans which existed as of December 31, 2003 were cancelled in conjunction with the Company’s Plan of Reorganization filed under Chapter 11 of the U.S. Bankruptcy Code and subsequently confirmed by the bankruptcy court. The Plan allowed for a new stock option plan with a total of 500,000 options available for future issuance as shown in the table above.

As discussed above, the Company’s Plan of Reorganization became effective on February 3, 2004. As a result of the implementation of fresh start accounting as of January 31, 2004, the Company’s results of operations after that date are not comparable to results reported in prior periods because of differences in the bases of accounting and the capital structure for the Predecessor Company and the Reorganized Company. To facilitate comparisons to prior periods, the results of operations for the year ended December 31, 2004, shown below, includes the one month period ended January 31, 2004 for the Predecessor Company and the eleven months ended December 31, 2004 for the Reorganized Company. The following table summarizes selected financial data and should be read in conjunction with the Consolidated Financial Statements and Notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” appearing elsewhere in this Annual Report on Form 10-K.

References to “Reptron”, “the Company”, “we”, “us” and “our” refer to Reptron Electronics, Inc., unless the context otherwise requires. This document contains certain forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are made in reliance on the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Factors that could cause or contribute to actual results to differ materially include the following: business conditions and growth in Reptron’s industry and in the general economy; competitive factors; risks due to shifts in market demand; the ability of Reptron to complete acquisitions; the risks discussed in the section of this report titled “Factors That Could Affect Future Results” and the risk factors listed from time to time in Reptron’s

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reports filed with the Securities and Exchange Commission as well as assumptions regarding the foregoing. The words “believe”, “plans”, “estimate”, “expect”, “intend”, “should”, “may”, “will”, “appear”, “hope “anticipate”, and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made These statements are only predictions Reptron undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Consolidated Financial Statements and Notes thereto included elsewhere in this report.

2004 Compared to 2003

As previously discussed, the Company’s Plan of Reorganization became effective on February 3, 2004. As a result of the implementation of fresh start accounting as of January 31, 2004, the Company’s results of operations after that date are not comparable to results reported in prior periods because of differences in the bases of accounting and the capital structure for the Predecessor Company and the Reorganized Company. To facilitate comparisons to prior periods, the results of operations for the year ended December 31, 2004, discussed below, includes the one month period ended January 31, 2004 for the Predecessor Company and the eleven months ended December 31, 2004 for the Reorganized Company.

Net Sales.    Net sales decreased $8.5 million, or 5.6%, from $150.1 million in 2003 to $141.6 million in 2004. This decrease is primarily attributable to continued weakness in the overall electronics industry and decreased demand of electronic voting equipment from our customer in the governmental segment. During 2004 and 2003 we transacted business with approximately 50 customers. The three largest customers accounted for approximately 13%, 12% and 12%, respectively, of 2004 net sales as compared to 21%, 12% and 6%, respectively, of 2003 net sales.

Gross Profit.    Gross profit decreased $2.4 million or 12.7%, from $18.9 million in 2003 to $16.5 million in 2004. The gross margin decreased from 12.6% in 2003 to 11.6% in 2004. The decrease in gross margin is primarily attributable to a combination of lower fixed cost absorption rates at the lower sales levels experienced in 2004 and production inefficiencies due to significant start-up costs associated with new customers and new circuit card assemblies. Start-up costs, the management of labor and equipment resources in connection with the establishment of new programs and new customer relationships, and the need to estimate required resources in advance can adversely affect our gross margins and operating results. These factors are particularly prominent in the early stages of the life cycle of new products and new programs. These factors also affect our ability to efficiently use labor and equipment. Due to an improving economy and more successful marketing efforts, we are currently managing a number of new programs and new customer relationships. Consequently, our exposure to these factors has increased.

Selling, General, and Administrative Expenses (“SG&A”).    Selling, general, and administrative expenses decreased $9.9 million, or 38.1%, from $26.1 million in 2003 to $16.2 million in 2004. The decrease in expense during 2004 is primarily attributable to a non-cash goodwill impairment charge of approximately $7.8 million in 2003. Without the goodwill impairment charge, selling, general and administrative expenses decreased $2.1 million, or 8.0%, from 2003 to 2004. This decrease in selling, general and administrative expenses is primarily attributable to reductions of these costs from prior periods as a result of our reorganization and the divesture of the distribution and computer products divisions. Additionally, certain operating expenses are variable with sales and were reduced in conjunction with the 5.6% net sales reduction in 2004.

Interest Expense.    Net interest expense allocated to the continuing EMS operations, decreased $2.5 million, or 46.4%, from $5.4 million in 2003 to $2.9 million in 2004. The decrease is primarily the result of the discharge of $76.3 million of Convertible Notes and the issuance of $30.0 million of Senior Secured Notes in accordance

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with the Plan of Reorganization. Approximately $4.3 million of interest expense was recorded in 2003 related to the Convertible Notes as compared to $2.1 million of interest expense for 2004 associated with the Senior Secured Notes. No interest expense was recorded for the two months ending December 31, 2003 and the one month ended January 31, 2004 related to the Convertible Notes. The remaining decrease in net interest expense is the result of a decrease in average outstanding debt, excluding the Convertible Notes and Senior Secured Notes, of $12.3 million from $24.5 million in 2003 to $12.2 million in 2004. Interest expense of $0.9 million was allocated to the discontinued operations of our electronic component distribution business and computer products division in 2003. The basis for this allocation was interest expense which could reasonably have been expected to be avoided through the collection of our distribution division’s trade receivables, proceeds from the sales of assets held for sale, and subsequent payment on our working capital credit facility.

Reorganization Costs.    On October 28, 2003, the Company filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The Company’s Plan of Reorganization was confirmed by the bankruptcy court on January 14, 2004 and became effective on February 3, 2004. The Company incurred costs as a result of this reorganization totaling $4.1 million in 2003 and $1.0 million in 2004 for various items including legal and consulting fees, financing costs and severance payments.

Income Taxes.    The Company recorded income tax expense from continuing operations of $0.8 million and an income tax benefit from discontinued operations of $0.2 million for the month ended January 31, 2004. Also, the deferred tax asset was reduced by a corresponding amount. The income tax provision resulted primarily from the reorganization gain on debt discharge that was partially offset by operating losses. During the eleven month period ended December 31, 2004, we incurred losses before income taxes of $2.1 million. As a result, we recognized a deferred tax asset and an offsetting valuation allowance of $0.8 million, resulting in no income tax benefit. Realization of the tax loss carryforwards are contingent upon future taxable earnings in the appropriate jurisdiction. Each carryforward item is reviewed for expected utilization, using a “more likely than not” approach, based on the character of the carryforward item (credit, loss, etc.), the associated taxing jurisdiction (federal or state), the relevant history for the particular item, the applicable expiration dates, and identified actions under our control in realizing the associated carryforward benefits. We assess the available positive and negative evidence surrounding the recoverability of the deferred tax assets, including our expected taxable income over the next one to two years, and apply judgement in estimating the amount of valuation allowance necessary under the circumstances. We continue to assess and evaluate strategies that will enable the carryforward, or a greater portion thereof, to be utilized, and will reduce the valuation allowance appropriately for each item at such time when it is determined that the “more likely than not” criterion is satisfied. As noted above, the effect of the reorganization may reduce the amount of net operating losses and/or limit the amount that may be available to the company in a given period.

Discontinued Operations.    The Company incurred a loss from discontinued operations in 2004 of approximately $0.1 million excluding an income tax benefit of approximately $0.2 million. See additional discussion of discontinued operations contained elsewhere herein.

2003 Compared to 2002

Discontinued Operations.    During 2003, Reptron exited the ECD business segment through the June, 2003 sale of Reptron Distribution Services and the October, 2003 sale of Reptron Computer Products. The operating results and loss incurred on the sale of these two divisions have been segregated and summarized as discontinued operations in 2003. Accordingly, the discussion and analysis for fiscal year 2003 compared to fiscal year 2002 pertains to the Company’s continuing operations in the EMS segment.

Net Sales.    Net sales decreased $15.0 million, or 9.1%, from $165.1 million in 2002 to $150.1 million in 2003. This decrease is primarily attributable to continued weakness in the overall electronics industry. Additionally, the Company has experienced significant operating losses during the past two years and was in default on both its Credit Facility and its Convertible Notes for the majority of the year. These defaults resulted

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in the Company filing a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code on October 28, 2003. The Company’s financial difficulties and uncertainties made it difficult to attract new customers during 2003. The three largest customers accounted for approximately 21%, 12% and 6%, respectively, of 2003 net sales as compared to 20%, 9% and 8%, respectively, of 2002 net sales.

Gross Profit.    Gross profit increased $1.8 million or 10.5%, from $17.1 million in 2002 to $18.9 million in 2003. The gross margin increased from 10.4% in 2002 to 12.6% in 2003. The increase in gross profit and gross margin is primarily attributable to changes implemented in materials procurement enabling the Company to leverage its overall purchasing needs as well as more effective manufacturing processes in 2003 versus 2002.

Selling, General, and Administrative Expenses.    Selling, general, and administrative expenses increased $2.7 million, or 11.6%, from $23.4 million in 2002 to $26.1 million in 2003. The increase in expense during 2003 is attributable to a non-cash goodwill impairment charge of approximately $7.8 million in 2003. Without the goodwill impairment charge, selling, general and administrative expenses decreased $5.1 million, or 21.8%, from 2002 to 2003. The overall decrease in selling, general and administrative expenses is primarily attributable to cost cutting measures initiated in 2001 and continued throughout 2003. The number of EMS employees declined by approximately 255 employees from 1,300 in 2002 to 1,045 in 2003, a 20% reduction in workforce. Additionally, certain operating expenses are variable with sales and reduced in conjunction with the 9.1% net sales reduction in 2003.

Interest Expense.    Total net interest expense decreased $1.7 million, or 21.3%, from $8.0 million in 2002 to $6.3 million in 2003. Net interest expense allocated to the continuing EMS operations, decreased $371,000, or 6.9%, from $5.8 million in 2002 to $5.4 million in 2003. Net interest allocated to the discontinued ECD segment totaled $2.2 million in 2002 and $0.9 million in 2003. The decrease in overall net interest expense is primarily attributed to the decrease in average outstanding debt of $23.0 million, from $123.9 million during 2002 to $100.9 million during 2003, and a decrease in our overall average interest rate from 6.5% during 2002 to 6.2% during 2003.

In February, 2003, the Company defaulted on its Convertible Notes by failing to pay interest when due. The Company eventually refinanced the Convertible Notes through its Plan of Reorganization filed under Chapter 11 of the U.S. Bankruptcy Code. Interest expense associated with the Convertible Notes was accrued but unpaid during 2003. The Plan of Reorganization confirmed by the bankruptcy court on January 14, 2004, includes the cancellation of all accrued and unpaid interest on the Convertible Notes.

Reorganization Costs.    On October 28, 2003, the Company filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The Company’s Plan of Reorganization was confirmed by the bankruptcy court on January 14, 2004 and became effective on February 3, 2004. The Company incurred costs as a result of this reorganization totaling $4.1 million in 2003 for various items including legal and consulting fees, financing costs and severance payments.

Discontinued Operations.    During 2003, the Company exited its ECD segment through the June, 2003 sale of Reptron Distribution Services and the October, 2003 sale of Reptron Computer Products. The operating results of the ECD segment as well as the loss incurred with the sale of the two divisions within the segment, have been segregated and summarized as discontinued operations. The loss from discontinued operations, net of taxes, totaled $14.1 million and $24.3 million in 2002 and 2003, respectively.

Income Taxes.    During 2002 and 2003, we incurred losses, including those from discontinued operations, before income taxes of $26.2 million and $41.1 million, respectively. As a result, we recognized a deferred tax asset and an offsetting valuation allowance of $8.7 million, in 2002 and $15.1 million in 2003, resulting in no income tax benefit. Realization of the tax loss carry forwards is contingent upon future taxable earnings in the appropriate jurisdiction. Each carry forward item is reviewed for expected utilization, using a “more likely than not” approach, based on the character of the carry forward item (credit, loss, etc.), the associated taxing

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jurisdiction (federal or state), the relevant history for the particular item, the applicable expiration dates, and identified actions under our control in realizing the associated carry forward benefits. We assess the available positive and negative evidence surrounding the recoverability of the deferred tax assets and apply judgment in estimating the amount of valuation allowance necessary under the circumstances. We continue to assess and evaluate strategies that will enable the carry forward, or a greater portion thereof, to be utilized, and will reduce the valuation allowance appropriately for each item at such time when it is determined that the “more likely than not” criterion is satisfied.

The Company’s Plan of Reorganization confirmed by the bankruptcy court on January 14, 2004, includes the cancellation of its Convertible Notes and the issuance of new notes (“New Notes”) resulting in a decrease of principle balance of approximately $46.3 million. Additionally, under the terms of the Plan accrued but unpaid interest on the Convertible Notes totaling approximately $6.4 million will be eliminated. The Company is in the process of determining the amount of taxable gain and the effect on its net operating loss carryforwards associated with this transaction.

Liquidity and Capital Resources

On October 28, 2003, we filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Under the terms of the Plan, substantially all of our general unsecured creditors (except for holders of the Convertible Notes and certain other creditors) received full payment for all prepetition claims within ninety days subsequent to the Plan’s effective date. The Plan was confirmed by the bankruptcy court on January 14, 2004 and became effective February 3, 2004, resulting in conversion of the $76.3 million of Convertible Notes, $6.4 million of accrued interest and $0.8 million of other liabilities into $30 million of Senior Secured Notes due in 2009 (“New Notes”) and the issuance of 95% of the common stock of the reorganized entity (“New Common Stock”). Previously outstanding common stock was exchanged for 5% of the New Common Stock. The New Notes carry an interest rate of seven percent per annum during the first two years and eight percent per annum during the remaining three years.

As of December 31, 2004, we had cash and cash equivalents of $0.2 million, restricted cash of $1.0 million and working capital of $7.8 million. The current ratio at December 31, 2004 and 2003 was 1.27 to 1 and 0.35 to 1, respectively. We primarily finance our operations through the New Notes, bank credit lines, operating cash flows, and short-term financing through supplier credit lines. Net cash used in or provided by operating activities has historically been provided by net income (loss) levels combined with fluctuations in inventory, accounts receivable and accounts payable. Operating activities for 2004 consumed cash of approximately $1.2 million. This consisted primarily of $0.8 million of net loss from continuing operations, $4.6 million of non-cash depreciation and amortization charges, $0.5 million reduction of deferred tax assets, $1.0 million reduction in prepaid expenses, $0.6 million reduction in other assets, $0.3 million increase in accrued liabilities, offset by $3.5 million of reorganization gain on debt discharge, $1.6 million increase in accounts receivable, $0.2 million increase in inventory, and $2.1 million decrease in accounts payable. Days sales outstanding in accounts receivable were approximately 37 days at December 31, 2004 compared to 32 days at December 31, 2003. Annualized inventory turns for 2004 were 6.6 times compared to 4.5 times for 2003.

Capital expenditures totaled approximately $3.3 million in 2004 and $2.1 million in 2003. These capital expenditures were primarily for manufacturing equipment and were funded by the working capital credit facility, as defined below.

Credit Agreement.    The Company has a revolving credit facility with Congress Financial Corporation that provides up to $25 million (the “Credit Agreement”) to fund the Company’s operations through February 2007. The Credit Agreement contains certain covenants including a minimum quarterly measure of earnings before interest, taxes, depreciation and amortization (“EBITDA”) as defined by the Credit Agreement. The Company was in compliance with the covenants contained in the Credit Agreement as of December 31, 2004. The interest rate on the credit facility is based on the lender’s prime rate plus one percent. The Credit Agreement is

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collateralized by substantially all of the Company’s assets. This credit facility, together with the Company’s available cash reserves and cash provided by operations, is expected to provide sufficient liquidity for the Company to pay for goods and services within standard terms. Under the advance rates contained in the Credit Agreement, there was approximately $6.9 million of unused available credit on December 31, 2004. Amounts outstanding under the Credit Agreement were approximately $10.4 million as of December 31, 2004.

Senior Secured Notes due in 2009.    As of December 31, 2003, there were outstanding approximately $76.3 million of Convertible Notes. These Convertible Notes were cancelled as outlined in the Company’s Plan of Reorganization which was confirmed by the bankruptcy court on January 14, 2004 and became effective February 3, 2004. The holders of the Convertible Notes received their pro-rata share of New Notes which collectively total $30 million and their pro-rata share of 95% of the New Common Stock. The New Notes will become due in five years from the date of issuance. These notes carry a seven percent annual interest rate in the first two years and an eight percent annual interest rate in the remaining three years. Distributions of the New Notes and New Common Stock were made on March 22, 2004.

Management believes that available credit facilities in addition to our current cash and cash flows expected to be generated from operations will be sufficient to meet our known capital requirements and working capital needs of our operations through at least the next twelve months. However, future liquidity and cash requirements will depend on a wide range of factors including the level of business in existing operations, credit lines extended by lenders and trade suppliers, the need for expansion of manufacturing operations in foreign countries (especially China) and capital expenditure requirements. To the extent we pursue acquisitions or other strategic growth opportunities, we may need to raise additional capital through debt or equity financings to fund such opportunities. There can be no assurance that financing will be available in amounts and on terms acceptable to management.

The following table summarizes our known contractual obligations, excluding interest:

Critical Accounting Policies and Estimates

The Company’s emergence from Chapter 11 bankruptcy proceedings on February 3, 2004 resulted in a new reporting entity and adoption of fresh start reporting, in accordance with Statement of Position No. 90-7 (SOP 90-7”), “Financial Reporting by Entities in Reorganization Under the Bankruptcy Code.” Although the effective date of the Plan was February 3, 2004, the Company has accounted for the consummation of the Plan as if it occurred on the close of business on January 31, 2004. The financial statements as of December 31, 2003 do not give effect to any adjustments in the carrying value of assets or the amounts or classification of liabilities that were recorded upon implementation of the Plan of Reorganization. The adoption of SOP 90-7 creates, in substance, a new reporting entity. SOP 90-7 also requires that changes in accounting principles required in the financial statements of the emerging entity within twelve months of fresh start reporting to be adopted at the time fresh start reporting is adopted, of which there were none.

The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make significant estimates and judgments that affect the reported amounts of assets, liabilities, revenues and

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expenses during the reporting period and related disclosure of contingent assets and liabilities. These estimates and assumptions are based upon the Company’s evaluation of historical results and anticipated future events. Actual results may differ from these estimates under different assumptions or conditions.

The Securities and Exchange Commission (the “SEC”) defines critical accounting polices as those that are, in management’s view, most important to the portrayal of the Company’s financial condition and results of operations and those that require significant judgments and estimates. The Company believes the following critical accounting policies involve the more significant judgments and estimates used in the preparation of its consolidated financial statements:

Valuation of Receivables.    The Company maintains an allowance for doubtful accounts for estimated losses resulting from customer defaults. The Company performs ongoing credit evaluations of its customers considering among other things, the customers’ payment history and current ability to pay. A provision for uncollectible amounts is adjusted based on these evaluations and historical experience. If the financial condition of a customer were to deteriorate, resulting in an impairment of that customer’s ability to make payments to the Company, additional reserves may be required. Generally, accounts are written-off upon the exhaustion of all reasonable collection efforts.

Valuation of Inventories.    Inventories are recorded at the lower of cost or estimated market value. Cost is determined using the first-in, first-out and average cost methods. The Company’s inventories are comprised, in part, of high technology components used in assemblies produced under contract with our customers. Inventories in excess of demand may be subject to technological obsolescence.

The Company evaluates inventories for excess, obsolescence or other factors that may render inventories unmarketable at normal margins. Write-downs are recorded so that inventories reflect the approximate net realizable value and take into consideration the Company’s contractual provisions with its customers and suppliers. If assumptions about future demand change or the financial strength of customers diminish significantly or actual market conditions are less favorable than those projected by management, additional write-downs of inventories may be required. In any case, actual amounts could be different from those estimated.

Impairment of Assets.    Reptron’s policy is to periodically review and evaluate whether there has been a permanent impairment in the value of long-lived assets. Factors considered in the evaluation include current operating results, trends and anticipated undiscounted future cash flows. An impairment loss is recognized to the extent that fair value of the assets measured as the sum of discounted estimated future cash flows (using the Company’s incremental borrowing rate over a period of less than 30 years) that is expected to result from the use of the asset or other measure of fair value, is less than the carrying value. There have been no impairment losses from continuing operations in 2004, 2003, or 2002.

Goodwill.    In assessing the Company’s goodwill for impairment in accordance with the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards No. 142 (“SFAS 142”), “Goodwill and Other Intangible Assets,” the Company is required to assess the valuation of its reporting units, which involves making significant assumptions about the future cash flows and overall performance of its reporting units. Should these assumptions or the structure of the reporting units change in the future based upon market conditions or changes in business strategy, the Company may be required to record impairment charges to its goodwill. In 2003, goodwill of approximately $3.3 million which was recorded in conjunction with a prior business acquisition by our Reptron Distribution Services division, was expensed and included in the loss from discontinued operations. The Company updated it’s analysis in response to filing a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the fourth quarter of 2003. This discounted cash flow analysis indicated that the goodwill recorded as a result of the purchase of a flat panel display business was fully impaired. Accordingly, the Company recorded an impairment charge of approximately $7.8 million in 2003, which is included in selling, general and administrative expenses. As previously discussed, the Company applied fresh start accounting during the first quarter of 2004 and has allocated the reorganization

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value among the company’s assets. This allocation resulted in recognition of goodwill totaling approximately $12.2 million, which is $6.8 million less than the amount recognized prior to adoption of fresh start accounting.

Deferred Income Taxes.    The carrying value of the Company’s deferred income tax assets is dependent upon the Company’s ability to generate sufficient future taxable income in certain tax jurisdictions. Should the Company determine that it would not be able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be expensed in the period such determination was made. The Company presently records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not expected to be realized. While the Company has considered future taxable income expected to be earned over the next one to two years and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance, in the event that the Company were not able to achieve these objectives additional valuation allowances and corresponding costs would be recorded. To the extent that deferred tax assets are realized in excess of those recorded, net of the valuation allowance, goodwill will be reduced and no tax benefit will be recognized in those periods.

Contingencies.    The Company is the subject of various threatened or pending legal actions and contingencies in the normal course of conduction its business. The Company provides for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The Company assesses the likelihood of adverse judgements or outcomes to these matters, as well as the range of potential losses. A determination of the reserves required, if any, is made after careful analysis. The required reserves may change in the future due to new developments.

New Accounting Pronouncements

In November 2004, the Financial Accounting Standards Board issued Statement 151, Inventory Costs, an amendment of ARB No. 43, Chapter 4, which is effective for inventory costs incurred during fiscal years beginning after June 15, 2005. The amendments made by Statement 151 will improve financial reporting by clarifying that abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) should be recognized as current-period charges and by requiring the allocation of fixed production overheads to inventory based on the normal capacity of the production facilities. The Company does not believe that the adoption of Statement 151 will have a significant effect on its financial statements.

In December 2004, the Financial Accounting Standards Board issued Statement 123 (revised 2004), Share-Based Payment (Statement 123(R)). This Statement, effective on July 1, 2005, requires that the costs of employee share-based payments be measured at fair value on the awards’ grant date using an option-pricing model and recognized in the financial statements over the requisite service period. This Statement does not change the accounting for stock ownership plans, which are subject to American Institute of Certified Public Accountants SOP 93-6, “Employer’s Accounting for Employee Stock Ownership Plans.” Statement 123(R) supersedes Opinion 25, Accounting for Stock Issued to Employees and its related interpretations, and eliminates the alternative to use Opinion 25’s intrinsic value method of accounting, which the Company is currently using.

Statement 123(R) allows for two alternative transition methods. The first method is the modified prospective application whereby compensation cost for the portion of awards for which the requisite service has not yet been rendered that are outstanding as of the adoption date will be recognized over the remaining service period. The compensation cost for that portion of awards will be based on the grant-date fair value of those awards as calculated for pro forma disclosures under Statement 123, as originally issued. All new awards and awards that are modified, repurchased, or cancelled after the adoption date will be accounted for under the provisions of Statement 123(R). The second method is the modified retrospective application, which requires that the Company restates prior period financial statements. The modified retrospective application may be applied either to all prior periods or only to prior interim periods in the year of adoption of this statement. The Company is currently determining which transition method it will adopt and is evaluating the impact Statement 123(R) will have on its financial position, results of operations, EPS and cash flows when the Statement is adopted.

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While Reptron had no holdings of derivative financial or commodity instruments at December 31, 2004, we are exposed to financial market risks, including changes in interest rates. Approximately 76% of our interest bearing borrowings have a fixed interest rate. However, borrowings under the working capital Credit Agreement bear interest at a variable rate based on the Domestic Rate Loan (6% at December 31, 2004). Based on the average floating rate borrowings outstanding throughout 2004, a 90 basis point change in the interest rate would have caused Reptron’s interest expense, net of the income tax effect, to change by approximately $75,000. Reptron believes that this amount is not significant to its 2004 results of operations.

The financial statements required by this Item are contained in pages F-1 through F-24 of this Report and are incorporated into this Item by reference.

None

Evaluation of disclosure controls and procedures.    Our management evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act of 1934, as amended) as of the end of the period covered by this Annual Report on Form 10-K. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and (2) accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our Disclosure Controls and internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control.

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Changes in internal control over financial reporting.    There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the period covered by this Annual Report on Form 10-K that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

None

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PART III

Information required by this Item is included under the captions Executive Officers, Section 16(a) Beneficial Ownership Reporting Compliance, and Election of Directors, in our definitive Proxy Statement for our 2005 Annual Meeting of Shareholders and is incorporated herein by this reference.

Information required by this Item is included under the caption Executive Compensation and other matters, Aggregated Option Exercises in Last Fiscal Year and Fiscal Year-end Option Values, Employment Contracts and Termination of Employment and Change-of-Control Arrangements, Compensation Committee Interlocks and Insider Participation in our definitive Proxy Statement for our 2005 Annual Meeting of Shareholders and is incorporated herein by this reference.

Information required by this Item is included under the caption Security Ownership of Certain Beneficial Owners in our definitive Proxy Statement for our 2005 Annual Meeting of Shareholders and is incorporated herein by this reference.

Information required by this Item is included under the caption Certain Relationships and Related Transactions in our definitive Proxy Statement for our 2005 Annual Meeting of Shareholders and is incorporated herein by this reference.

Information required by this Item is included under the caption Ratification of Appointment of Independent Auditors Fees and Services in our definitive Proxy Statement for our 2005 Annual Meeting of Shareholders and is incorporated herein by this reference.

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PART IV

Financial Statements and Schedules

Exhibits

The following exhibits are filed herewith and this list is intended to constitute the exhibit index. An asterisk (*) beside the exhibit number indicates the exhibits containing a management contract, compensatory plan or arrangement, which are required to be identified in this report.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized, in the City of Tampa, State of Florida, on March 31, 2005.

Power of Attorney

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Each person whose signature appears below constitutes and appoints Paul J. Plante, his true and lawful attorney-in-fact and agent, with full power of substitution and revocation, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments to this report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or either of them, may lawfully do or cause to be done by virtue hereof.

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REPTRON ELECTRONICS, INC.

INDEX TO FINANCIAL STATEMENTS AND SCHEDULE

Table of Contents

Report Of Independent Registered Public Accounting Firm

Board of Directors and Shareholders

Reptron Electronics, Inc.

We have audited the accompanying consolidated balance sheets of Reptron Electronics, Inc. and its wholly owned subsidiaries as of December 31, 2004 (Reorganized Company) and 2003 (Predecessor Company), and the related consolidated statements of operations, shareholders’ equity, and cash flows for the eleven months ended December 31, 2004 (Reorganized Company), the one month ended January 31, 2004 (Predecessor Company) and the two years ended December 31, 2003 (Predecessor Company). These financial statements are the responsibility of Reptron’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Reptron Electronics, Inc. and subsidiaries as of December 31, 2004 (Reorganized Company) and 2003 (Predecessor Company), and the consolidated results of their operations and cash flows for the eleven month period ended December 31, 2004 (Reorganized Company), the one month period ended January 31, 2004 (Predecessor Company) and the two years ended December 31, 2003 (Predecessor Company), in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note A to the consolidated financial statements, effective February 3, 2004, the Company was reorganized under a plan of reorganization confirmed by the United States Bankruptcy Court for the Southern District of Florida. In connection with its reorganization, the Company applied fresh start accounting as of February 1, 2004.

/s/ GRANT THORNTON LLP

Tampa, Florida

February 11, 2005

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REPTRON ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

The accompanying notes are an integral part of these statements.

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REPTRON ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

The accompanying notes are an integral part of these statements.

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REPTRON ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)

(in thousands, except share data)