AMERICAN INTERNATIONAL INDUSTRIES, INC.
(OTCBB: "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. AND ITS SUBSIDIARIES REPORT RECORD THIRD QUARTER RESULTS
Kemah, Texas – November 10, 2005 American International Industries, Inc. (OTCBB: AMIN) Mr. Daniel Dror, Chairman and CEO, stated that the Company reported record revenues of $9,046,634 for the three months ended September 30, 2005 compared to $1,606,618 for the same period in 2004, representing an increase of 463%. For the nine month period ended September 30, 2005 revenues were $18,032,255 compared to $7,995,000 for the nine-month 2004 period, or an increase of 125%. The increased revenues were principally due to the increase in sales oil drilling pipe by the Company’s subsidiary, Delta, increased sales by its subsidiary, NPI, generated from NPI’s licenses to sell Motortrend and Good Housekeeping products and the revenues generated by our Hammonds subsidiary. The Company reported net income of $193,849 for the three month period ended September 30, 2005 and a net loss for the nine month period ended September 30, 2005 of $1,821,042 as compared to net income of $1,907,847 and $1,134,653 for the comparable three and nine-month periods in 2004.
The net loss for the nine month period of 2005 was attributable to the continuing market price decline in the common stock of Orion Healthcare (f/k/a Surgicare) of $2,021,250. The Company previously announced that it had filed a lawsuit in the Houston District Court alleging claims of fraud and security violations against Orion Health Corp., Brantley Capital, and certain directors of these companies, seeking damages totaling $7,600,000. Although there are no assurances of the outcome, the Company strongly believes it will recover its loss and will prevail in its claims against Orion Health Corp. et al.
The Company reported that total assets at September 30, 2005 increased to $34,906,780 from $22,745,845 at December 31, 2004, or an increase of approximately 53% Total liabilities at September 30, 2005 were $19,087,163 compared to $5,904,448 at December 31, 2004. The increase was principally due to the increase in long-term debt associated with the acquisition of Hammonds and its draw down on a line of credit, the purchase of real estate for Delta, and the draw down on the line of credit for NPI. At September 30, 2005 the Company had consolidated working capital of $15,097, 459 compared to working capital of $12,065,215 at December 31, 2004, or an increase of 25%. The Company’s current ratio is 3:1.
During the fourth quarter Delta plans to add at least one additional well service rig which could increase revenue by $1,200,000 annually, with gross margin of approximately 35%, which should result in an additional $180,000 to Delta’s annual net income. Due to the increased demand of pipe Delta expects to have increased revenue and profitability in the fourth quarter. NPI currently has a backlog of over $2,500,000 and NPI’s year-end revenues are expected to exceed $9,000,000, which represents a significant increase over NPI’s revenues for 2004. IMTG’s subsidiary, Hammonds Technical Services, acquired in April, 2005, is estimating that its revenue for the last quarter could exceed $1,500,000, with estimated total revenues of $6,000,000 during its first twelve months of operation.
American International Industries, Inc. is a holding company. The Company has holdings in Industry, Finance, 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: amin@americanii.com