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. COMPLETED THE PURCHASE OF THE ASSETS OF
SHUMATE MACHINE WORKS, AN ENERGY RELATED COMPANY
Houston / Kemah, Texas – October 9, 2008 American International Industries, Inc. (NasdaqCM: AMIN) Mr. Daniel Dror, Chairman and CEO, today announced that a subsidiary of the Company completed the purchase of 100% of the assets of Shumate Machine Works Corporation, a subsidiary of Shumate Industries, Inc. (OTC BB: SHMT). The purchase price was approximately $6.4 million in cash, which was financed in large part through long-term debt provided by Stillwater National Bank and Trust. The assets are now owned by a wholly-owned AMIN subsidiary, Shumate Energy Technologies, Inc. ("SET").
SET, which operates out of a 30,000 square foot manufacturing facility located in Conroe, Texas, manufactures highly specialized equipment for energy industry customers including Baker Hughes, Halliburton Energy Services, Smith International, National Oil Well Varco, BJ Services Company, Canrig Drilling Technology, a Nabors Industries company, Enventure Global Technologies, FMC Technologies, Oceaneering Intervention Engineering, Shell Development, Weatherford International and other energy related companies.
SET had approximately $8 million in revenues and $1.4 million EBITDA adjusted for non-recurring expenses for the year ended December 31, 2007. SET’s backlog of orders is $2,632,000, which it hopes to deliver in the fourth quarter of 2008.
Mr. Dror stated, "The Company expects benefits from synergies between SET and our other energy related subsidiary, Delta Seaboard Well Service, Inc., which experienced record quarterly revenues and profits for the third quarter of 2008. With the additional capital investment that we will provide, SET expects to substantially increase future revenues and profits. Larry Shumate has been appointed President of SET. Larry brings 30 years of manufacturing experience, which we believe will be highly valuable as we continue to increase production at our Hammonds Industries, Inc. subsidiary."
AMIN expects that these additional revenues will qualify the Company’s shares to be listed on the major Nasdaq exchange.
On September 22, 2008, SET was awarded four certifications from the American Petroleum Institute (API) for advanced quality systems including the license to produce components to API Spec 7.1, which will significantly expand the customers and product lines for SET. SET already has received orders as a result of the new certifications.
Larry Shumate stated, "I am pleased to become part of the AMIN family of companies. Along with the new API certifications and AMIN’s support, we will be able to expand into areas of the energy industry that we have not been part of or qualified for until now. As President of SET, I bring to AMIN my 30 years of experience in the energy industry and customer base channels. Synergies with AMIN’s other subsidiaries will allow us to draw on each others’ experience and support."
About American International Industries, Inc.
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.
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 at Tel: 281-334-9479 or email: amin@americanii.com