AMERICAN INTERNATIONAL INDUSTRIES, INC.
601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077
Tel: (281) 334-9479 Fax: (281) 334-9508
www.americanii.com email: email@example.com
FOR IMMEDIATE RELEASE
AMERICAN INTERNATIONAL INDUSTRIES, INC.
REPORTS 3rd QUARTER RESULTS
Houston / Kemah, Texas – November 8, 2007 American International Industries, Inc. (NasdaqCM: AMIN) Ms. Sherry Couturier, American International Industries’ Chief Financial Officer, reporting third quarter results, stated "our total assets increased by $7,806,098, or 21%, to $44,403,029 at September 30, 2007, compared to $36,596,931 at December 31, 2006; our consolidated liquidity was $12,064,348 at September 30, 2007, compared to $10,139,058 at December 31, 2006, representing an increase of $1,925,290, or 19%; our consolidated working capital was $26,298,746 at September 30, 2007, compared to working capital of $17,625,203 at December 31, 2006, representing an increase of $8,673,543, or 49%; and our Stockholders’ Equity was $24,298,060 at September 30, 2007 compared to $22,562,007 at December 31, 2006, an increase of $1,736,053, or 8%."
American International Industries, Inc. is a growing diversified holding company with a business model emphasis on enhancing assets and stockholders’ equity to facilitate substantial future revenues and earnings per share. Ms. Couturier stated "to that end, during the past five years, the Company has increased assets to $44,403,029 at September 30, 2007, or an increase of $33,235,880, or 298%, from $11,167,149 at December 31, 2002; the Company has increased stockholders’ equity to $24,298,060 at September 30, 2007, or an increase of $16,174,333, or 199%, from $8,123,727 at December 31, 2002."
Hammonds Industries, Inc. (OTCBB: HMDI), our 39.5% subsidiary, reported record revenues for the quarter ended September 30, 2007, with revenues of $3,083,286 for the three months ended September 30, 2007, compared to $1,527,863 for the same period of the prior year, representing an increase of $1,555,423, or 102%. The increase was due to increasing orders for Hammonds Water Treatment’ products and for Hammonds Technical Services’ transport mounted injection systems. Hammonds Technical Services’ revenues increased by $1,370,616 and $1,595,132 for the three and nine month-periods ended September 30, 2007, respectively, and for the same three and nine-month periods, revenues of Hammonds Water Treatment increased by $220,293 and $928,064, respectively. Hammonds backlog of orders was $4.8 million at September 30, 2007 and this backlog, together with projected ongoing business and increased demand for Hammonds’ product lines, has the Company on track for record revenues for 2007.
The Company reported revenues of $8,276,370 for the three months ended September 30, 2007, compared to $9,936,232 for the three months ended September 30, 2006. For the nine month period ended September 30, 2007, revenues were $21,916,235, compared to $24,347,673 for the same period in 2006. The decline in revenues for the quarter ended September 30, 2007, was primarily due to our wholly-owned subsidiary, Northeastern Plastics, where a major customer rescheduled orders and shipments from the third to the fourth quarters. In addition, two NPI customers changed the NPI product mix that they carry, resulting in a reduction in sales through the third quarter of 2007. The future impact of this reduction is being mitigated through replacement business with existing as well as new customers, with NPI in final negotiations with a major "big box" chain to distribute its Good Choice™ night light and wall tap products in the fourth quarter. At the end of September 2007, NPI had a backlog of $5.4 million. Our majority-owned subsidiary, Delta Seaboard Well Service, experienced a revenue decline for the three and nine-month periods ended September 30, 2007, primarily due to decreased pipe sales. Two of Delta's customers merged with other companies and temporarily slowed their drilling programs. Also, due to a fall in the price of natural gas in the first half of 2007, other natural gas drilling programs were delayed. The price of natural gas rebounded during the second half of the year and these drilling programs are being restarted. Additionally, Delta will activate a sixth well service rig during the fourth quarter and expects this rig will add a minimum of $100,000 in monthly revenues.
The Company reported a net loss of $1,363,542 for the three month period ended September 30, 2007 compared to net income of $695,762 for the same period in 2006. For the nine months ended September 30, 2007, the Company reported a net loss of $3,343,808 compared to a net loss of $156,214 for the nine months ended September 30, 2006. The Company’s net loss for the nine months ended September 30, 2007, included non-cash items totaling $2,196,206, of which $856,834 are non-recurring. Additional non-recurring expenses for this same period were $423,000 for legal and professional fees, expenses related to investment funding of transactions and commissions, real estate consulting fees, and initial NASDAQ listing fees.
Of the $3,343,808 net loss for the nine months ended September 30, 2007, $2,226,411 was attributable to our Hammonds subsidiary, primarily from the costs associated with the development and marketing of new Hammonds’ products. In addition, Hammonds’ net loss included non-cash items totaling $1,559,024, of which $939,834 are non-recurring, as well non-recurring expenses of $45,000 for legal and professional fees and other one-time events. Hammonds’ three wholly-owned subsidiaries all reported net income from operations for the first time during the three months ended September 30, 2007.
During the three and nine month-periods ended September 30, 2007, we recognized a non-cash finance expense of $386,334 associated with Hammonds' issuance and sale of Series A, B and C Convertible Preferred Stock to an institutional investor. Other income for the three and nine months ended September 30, 2006, included $2,000,000 from the settlement of the Company’s lawsuit related to the sale of the Nixon Refinery. For the three and nine months ended September 30, 2007, interest and dividend income increased by $9,741 and $343,354, respectively, compared to the same periods in 2006, primarily due to a significant increase in investment in certificates of deposit and interest on notes receivable. Delta recognized other income for a Texas Emissions Reduction Plan (TERP) grant from the Texas Commission on Environmental Quality in the amount of $431,595. TERP is a comprehensive set of incentive programs aimed at improving air quality in Texas. Through this grant, Delta’s rig engines are being replaced with engines certified to emit 25% less nitrogen oxide (NOx) than required under the current federal standard for the horsepower of the engines. The total grant awarded to Delta is $1,157,273 and the remainder of this amount will be recognized as the engines are replaced.
On October 15, 2007, Hammonds issued 7,142,857 shares of restricted common stock at $0.14 per share to the Company for the conversion of a $1,000,000 promissory note. After this transaction, the Company's ownership of Hammonds' common stock increased to 56.2% from 39.5% at September 30, 2007.
For more detailed information, please refer to our September 30, 2007 Form 10-Q filing with the SEC on November 7, 2007.
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, Tel: 281-334-9479, email: firstname.lastname@example.org