HAMMONDS INDUSTRIES, INC.
(OTCBB: "HMDI")
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
Hammonds Industries, Inc., a Subsidiary of
American International Industries, Inc.,
files Form 10-QSB and Reports 2nd Quarter Results
Houston / Kemah, Texas – August 13, 2007 Hammonds Industries, Inc. (OTCBB: HMDI)
Ms. Sherry Couturier, Chief Financial Officer of HMDI, which owns Hammonds Technical Services, Hammonds Fuel Additives and Hammonds Water Treatment Systems, announced that revenues were $2,417,776 for the three months ended June 30, 2007, compared to $1,835,659 for the three months ended June 30, 2006, representing an increase of $582,117, or 32%. Revenues for the six months ended June 30, 2007 were $4,037,175, compared to $3,160,828 for the same period in 2006, representing an increase of $876,347, or 28%. The increase was due to higher demand for Hammonds Water Treatment products and sales of Hammonds Technical Services’ transport mounted injection systems. Hammonds Technical Services’ revenues increased by $270,828 and $224,516 for the three and six months ended June 30, 2007, respectively. For this same period, revenues for Hammonds Water Treatment increased by $339,900 and $707,771, respectively. Hammonds Technical Services was awarded an order to provide equipment in support of the 800K FSSP Army fueling system. Hammonds will manufacture 72 of its model injectors, as part of the rapid deployment FSSP (Fuel System Supply Point) program. Hammonds will begin deliveries in August and complete the order by the end of this year. Total value of the order is $2,150,000. Additionally, the Company is in negotiations for orders with national aircraft manufacturers for Hammonds’ Omni Directional Vehicles (ODVs) to be used to improve aircraft production efficiency. Hammonds projected backlog of orders was $5.4 million at June 30, 2007. This backlog together with projected ongoing business and increased demand for Hammonds’ products has the Company on track for record revenues for 2007.The Company reported a net loss of $593,463 for the three month period ended June 30, 2007, compared to a net loss of $184,892 for the three month period ended June 30, 2006. Net loss for the six month period ended June 30, 2007 was $1,439,330, compared to a net loss of $632,866 for the six month period ended June 30, 2006. The net loss includes costs associated with Hammonds’ introduction of its new line of ODVs. For the six months ended June 30, 2007, Hammonds’ net loss includes non-cash items, including depreciation and amortization of $412,453 and a non-recurring expense for stock-based compensation of $40,000. Additional non-recurring expenses for this same period were $45,000 for legal and professional fees associated with lawsuit settlements and other one-time events. Excluding these items, Hammonds’ net loss for the six months ended June 30, 2007 was $941,877.
Other expense increased to $174,892 for the three month period ended June 30, 2007, from $26,687 for the three month period ended June 30, 2006. Other expense increased to $310,198 for the six month period ended June 30, 2007, from $73,514 for the six month period ended June 30, 2006. The increase was due to interest expense on working capital loans obtained to grow and develop Hammonds’ businesses.
At June 30, 2007 and December 31, 2006, we had total assets of $10,124,919 and $10,384,397, respectively. We had current liabilities at June 30, 2007 and December 31, 2006 of $1,586,599 and $1,627,734, respectively. We had positive working capital of $1,726,965 at June 30, 2007, compared to $1,754,559 at December 31, 2006.
Two of Hammonds’ companies, Hammonds Fuel Additives and Hammonds Water Treatment, are profitable. To meet revenue demand for Hammonds Technical Services’ products, the Company has obtained and continues to invest in machinery and equipment to significantly increase production capability and efficiency. The Company recently purchased a CNC controlled plasma steel cutting system, a state-of-the-art painting facility, multiple material handling cranes throughout the production area, an automated production saw and a new mill for the machine shop. In addition to tools, Hammonds installed new compressed air systems, new production flow testing stands, hydrostatic test stations, and expanded plant lighting and power distribution to support additional welding and assembly stations. In addition, Hammonds is implementing manufacturing and cost saving procedures in order to generate increased revenues with greater cost efficiencies.
For more detailed information, please refer to our June 30, 2007 Form 10-QSB filed with the SEC on August 13, 2007.
Hammonds Industries, Inc. is a 40.6% owned subsidiary of American International Industries, Inc. (OTCBB: AMIN). HMDI owns 100% of Hammonds Technical Services, Inc., Hammonds Fuel Additives, Inc., and Hammonds Water Treatment Systems, Inc. (collectively "Hammonds"). Hammonds Technical Services is a business engaged in fuel handling equipment for the military and industrial customers, a provider of fuel injection services for the aviation industry, and the designer of a new Omni directional vehicle for a wide variety of uses. Hammonds Fuel Additives produces and markets motor and aviation fuel additives. Hammonds Water Treatment manufactures calcium hypochlorite tablet and granular systems which provide water disinfection for a wide range of potable and waste water applications.
For additional viewing of Hammonds products please visit www.hammondscos.com
Private Securities Litigation Reform Act Safe Harbor Statement:
The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended 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 value of our real estate portfolio, the strength of the real estate market in Houston, Texas as a whole, continued acceptance of the Company's products and services, increased levels of competition, new products and technology changes, the dependence upon financing, third party suppliers and intellectual property rights, the rules of regulatory authorities and risks associated with any potential acquisitions. 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