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 NINE MONTHS ENDED SEPTEMBER 30, 2009
Houston / Kemah, Texas – November 13, 2009 American International Industries, Inc. (NasdaqCM: AMIN) reported that its loss from continuing operations before interest, taxes, depreciation and amortization (EBITDA) significantly improved by $2,673,490 to $284,524, or $0.03 per share, for the nine months ended September 30, 2009, compared to EBITDA from continuing operations, excluding special items, for the nine months ended September 30, 2008, which reflected a loss of $2,958,014, or $0.39 per share. Our loss from continuing operations improved by $465,639 to $1,914,343, or $0.19 per share, for the nine months ended September 30, 2009, compared to a loss from continuing operations of $2,379,982, or $0.34 per share, for the nine months ended September 30, 2008. Our loss from continuing operations for the nine months ended September 30, 2009 included interest expense, taxes, and depreciation and amortization of $705,264, $38,613, and $885,942, respectively. Our loss from continuing operations for the nine months ended September 30, 2008 included interest expense, a tax benefit, and depreciation and amortization of $586,632, $30,489, and $360,958, respectively. Special items included in our loss from continuing operations for the nine months ended September 30, 2008 were $1,450,000 from the Delta lawsuit settlement and a $2,945,133 gain on the Hammonds’ property dividend distribution.
EBITDA for the three months ended September 30, 2009 reflected a loss of $395,477, or $0.05 per share, compared to EBITDA from continuing operations, excluding special items, of $30,232, or $0.00 per share, for the three months ended September 30, 2008. Our loss from continuing operations was $926,302, or $0.10 per share, for the three months ended September 30, 2009, compared to a loss of $313,418, or $0.12 per share, for the three months ended September 30, 2008. Our loss from continuing operations for the three months ended September 30, 2009 included interest expense, taxes, and depreciation and amortization of $222,985, $13,383, and $294,457, respectively. Our loss from continuing operations for the three months ended September 30, 2008 included interest expense, taxes, and depreciation and amortization of $176,140, $43,951, and $123,559, respectively.
Revenues from continuing operations were $20,936,148 for the nine months ended September 30, 2009, compared to $22,416,228 for the same period in the prior year, representing a decrease of $1,480,080, or 7%. The decrease in revenues was due to decreased revenues at Delta of $6,976,467 and decreased revenues at NPI of $732,440, partially offset by the inclusion of Shumate Energy Technologies, Inc. (SET) revenues of $6,228,827.
For the three months ended September 30, 2009, revenues from continuing operations were $8,509,019, compared to $11,830,033 for the three months ended September 30, 2008, representing a decrease of $3,321,014, or 28%. The decrease in revenues was due to decreased revenues at Delta of $4,518,794 and decreased revenues at NPI of $1,036,730, partially offset by increased revenues due to the inclusion of SET of $2,234,510. The decrease in revenues at Delta is due to a decrease in pipe sales to the oil field service industry for the three and nine months ended September 30, 2009 of $4,346,732 and $7,123,501, respectively. Pipe sales revenues have decreased due to a decline in drilling activity creating decreased demand for pipe.
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 nine months ended September 30, 2009. The loss from Hammonds’ discontinued operations was $995,348, or $0.12 per share, and $2,471,957, or $0.33 per share, for the three and nine months ended September 30, 2008.
Our net loss was $911,642, or $0.10 per share, for the three months ended September 30, 2009, compared to a net loss of $2,037,301, or $0.24 per share, for the three months ended September 30, 2008. Our net loss was $1,957,029, or $0.23 per share, for the nine months ended September 30, 2009, compared to a net loss of $5,041,848, or $0.67 per share, for the nine months ended September 30, 2008.
For more detailed information, please refer to our September 30, 2009 Form 10-Q filing with the SEC on November 13, 2009.
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 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