Dear fellow shareholders,
Our asset portfolio, now primarily consists of two publicly traded partially-owned
subsidiaries and a real estate portfolio as follows:
Gas Corp. (OTCQB:BRHM)
a 53.2% owned publicly traded subsidiary,
owner of overriding royalty interests, interests in new oil & gas
fields in West Africa and presently engaged in negotiations with
financial institutions for the purpose of financing potential
acquisitions of existing oil and gas properties and reserves.
Real Estate Portfolio -
American International Texas Properties, Inc.,
real estate subsidiary owns a portfolio of strategically located
parcels of land primarily in Houston, Texas and vicinity. The
1) 6 units - The Dawn Condominiums in
Galveston County, Texas, $894,000
2) 65 acres in Galveston County, Texas, *$2,000,000
3) 96 acres in Galveston County, Texas,
34 acres on Airport Blvd. in Houston, Texas, **$2,000,000
5) 1.7 acres in Galveston County, Texas, **$500,000
6) 2 lots on I-59 in Houston, Texas,
* This property is carried on the Company's books for an amount
substantially less than the market value, because it was acquired
through a related party transaction. Under G.A.A.P. accounting,
this property must be booked at original cost to the related party
** Each valuation provided above is based on at least one of the
following: a professional appraisal, a pending offer, or management
All of these properties are listed for sale with brokers and have
appraised values that are significantly higher than their book
values. Management believes that these three properties should be
sold in the next 24 to 36 months, which will substantially increase
the Company’s cash and working capital positions.
Brenham acquired a 10% working interest in the 90 acres Pierce
Junction Oil Field in Houston, Texas on March 18, 2013. The
Company acquired a 437 acres lease on April 4, 2013 in the Gillock
Oil Field in Dickinson, Texas. Brenham acquired on January 16,
2014 a 332 lease "The Inez Prospect" in Victoria, Texas. The
Company is entertaining offers and negotiating possible development
of its leases.
Sale of Delta Seaboard Well Service, Inc. (“DSWSI”) - On April 3,
2012, the assets and associated liabilities of DSWSI were sold,
resulting in a gain to American of approximately $1.2 million.
DSWSI became a subsidiary of American approximately 8 years ago and
in line with our corporate business strategy, we took advantage of
an opportunity to increase shareholder value by selling this
Looking forward to 2015 and beyond
Of course, no one can predict what the economy will do in 2015;
however, we anticipate increased revenues and profitability from
operations in 2015 over those of 2014, despite the slowdown in the
American International Industries, Inc. is a diversified
holding company with a business model emphasis on enhancing assets
and stockholders’ equity to increase future revenues
and earnings per share.
We remain focused on further strengthening our financial profile in
2015 and beyond. We believe that we can achieve growth and add
shareholder value by continuing to pursue opportunities to acquire
additional and complementary businesses and by expanding the
operations of our existing properties and oil and gas business. We will evaluate whether
businesses can be acquired at reasonable terms and conditions, attractive earnings multiples and present opportunity for growth
and profitability. These efforts will include the application of
improved access to financing and management expertise afforded by
synergistic relationships between the Company and its subsidiaries.
Periodically, as opportunities present themselves, we may sell or
merge the subsidiaries in order to bring value to our shareholders
and to enable the Company to acquire larger companies.
As stewards of the Company, our management team seeks opportunities
to improve working capital through a variety of financing options. A
key talent of our management team has been to acquire real estate
and sell it for a substantial profit. The Company may acquire real
estate for resale, based upon market conditions, location and
development potential. We will use profits from these ventures and
continue to strengthen our relationships with financial institutions
and outside investors to improve our asset portfolio.
I wish to thank our management team and all of our employees for
their hard work and dedication. On behalf of our Board and
management, I wish to express our gratitude to our shareholders for
your continued support. We remain committed to delivering value to
our shareholders and look forward to a bright future.
Chairman and C.E.O.