AMERICAN INTERNATIONAL INDUSTRIES, INC.
(NasdaqCM: "AMIN")
601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077
Tel: (281) 334-9479 Fax: (281) 334-9508
www.americanii.com email: amin@americanii.com
FOR IMMEDIATE RELEASE
AMERICAN INTERNATIONAL INDUSTRIES, INC.
REPORTS SIGNIFICANT IMPROVEMENT IN OPERATING RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2009
Houston / Kemah, Texas – March 31, 2010 American International Industries, Inc. (NasdaqCM: AMIN) reported that its loss from continuing operations before interest, taxes, depreciation and amortization (EBITDA) significantly improved by $1,737,744 to $1,133,205, or $0.13 per share, for the year ended December 31, 2009, compared to EBITDA from continuing operations, excluding special items, for the year ended December 31, 2008, which reflected a loss of $2,870,949, or $0.37 per share. Our loss from continuing operations was $3,237,436, or $0.37 per share, for the year ended December 31, 2009, compared to $834,881, or $0.11 per share, for the year ended December 31, 2008. Our loss from continuing operations for the year ended December 31, 2009 included interest expense, taxes, and depreciation and amortization of $873,518, $51,364, and $1,179,349, respectively. Our income from continuing operations for the year ended December 31, 2008 included interest expense, a tax benefit, and depreciation and amortization of $841,212, $52,540, and $647,851, respectively. Special items included in our loss from continuing operations for the year ended December 31, 2008 were $1,450,000 from the Delta lawsuit settlement and a $4,922,591 gain on the Hammonds’ property dividend distribution. On March 17, 2010, we announced that Delta had reached a settlement and received a payment of $700,000 related to the lawsuit settlement in 2008. This amount will be included in other income for the three months ended March 31, 2010. The settlement was a result of litigation brought by Delta against certain of its insurance companies for their failure to obtain appropriate insurance coverage and misrepresentation of the coverage it did obtain for Delta.
Primarily due to a decrease in pipe sales to the oil field service industry by Delta, revenues from continuing operations decreased by $6,451,982, or 20% to $25,656,678 for the year ended December 31, 2009, compared to $32,108,660 for the prior year. Pipe sales revenues have decreased due to a decline in drilling activity creating decreased demand for pipe. Delta’s revenues decreased by $10,342,022. NPI’s revenues decreased by $718,768, due to the decline in the economy. The decreases in revenues and Delta and NPI were partially offset by the inclusion of a full year of revenues for Shumate of $7,193,272 compared to $2,584,464 for three months in the prior year.
Effective December 31, 2008, the Company deconsolidated Hammonds Industries, Inc. from its continuing operations. The loss from Hammonds’ discontinued operations was $350,000, or $0.04 per share, for the year ended December 31, 2009. The gain from Hammonds’ discontinued operations was $9,274,274, or $1.18 per share, for the year ended December 31, 2008.
The net loss attributable to our shareholders was $2,952,088, or $0.34 per share, for the year ended December 31, 2009, compared to net income of $8,381,667, or $1.07 per share, for the year ended December 31, 2008.
For more detailed information, please refer to our December 31, 2009 Form 10-K filing with the SEC on March 31, 2010.
American International Industries, Inc. is a diversified holding company, with a business model similar to General Electric, Tyco International, and Berkshire Hathaway. The Company has holdings in Industry, Finance, and Real Estate in Houston Texas and surrounding areas, and Oil & Gas. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiary’s access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.
Forward-Looking Statements:
The matters discussed in this release contain forward-looking that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate in each of our segments reflected by our subsidiaries' operations include without limitations, continued acceptance of our products and services, continued growth in the energy sector, increased levels of competition, the dependence upon adequate financing, third party suppliers and the ability to hire and retain qualified management for its operating subsidiaries, and the regulatory environment in the segments in which we operate. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof.
Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: amin@americanii.com