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. (OTCBB: "AMIN")
FILES SEC FORM 10-KSB, ANNUAL REPORT, AND
REPORTS RECORD REVENUES, RECORD SHAREHOLDERS EQUITY,
AND SECOND HIGHEST RECORD EARNINGS
Houston & Kemah, Texas – April 5, 2007 American International Industries, Inc. (OTCBB: AMIN) Mr. Gary D. Woerz, Chief Financial Officer, said that the Company reported record revenues of $33,408,554 for the twelve months ended December 31, 2006, compared to $25,476,289 in the prior year, representing an increase of over 31%. Delta reported revenues of $13,829,625 for the twelve months ended December 31, 2006, an increase of $2,106,796, or 18%, over the same period in 2005. For the twelve months ended December 31, 2006, NPI reported an increase in revenues of $2,753,245, or 27%, to $13,111,536, due to its license agreements with Motortrend, Good Housekeeping products and sales to AutoZone. Revenues generated by our IMTG subsidiary, which owns the Hammonds Companies, were $6,467,393 for the twelve months ended December 31, 2006, an increase of $3,072,242, or 91%.
Gross margin for both 2005 and 2006 were 31%. NPI’s gross margin improved significantly, from 10% for the year ended December 31, 2005, to 20% for the year ended December 31, 2006. Increased sales volume enabled NPI to negotiate lower costs per unit, which was reflected in NPI's cost of goods increasing by only 12% in 2006. Delta’s gross margin improved from 50% in 2005 to 52% in 2006. Gross margin for the Hammonds Companies declined from 29% in 2005 to 17% in 2006, because of costs associated with the start up of new product lines. AMIN expects significant improvement in gross margin for the Hammonds Companies, as costs of sales are anticipated to decrease during 2007 because of new, more efficient equipment and supporting inventories.
The Company reported its second highest consolidated net income applicable for common shareholders of $1,509,274, or $0.32 per share, for the twelve month period ended December 31, 2006. The Company would have reported net income of $4,016,262 for the year ended December 31, 2006, or $0.86 per share, had the Hammonds Companies not recorded a loss of $2,506,988. The Company recognizes that in the past year the Hammonds Companies spent substantial funds and incurred losses due to the cost of development of the Omni Directional Vehicles, facilities and capital equipment enhancements, as well as depreciation and amortization in the amount of $627,500. With the progress of the development of the ODV’s, all of the pending orders for 2007, and the ongoing automation of the manufacturing of the ODV’s, the Company expects the Hammonds Companies to more than recover their losses and expect substantial profits in 2007, thus participating in the long-term profitability of the Company.
The Company reported total assets of $36,596,931 at December 31, 2006, compared to $30,163,349 at December 31, 2005, an increase of 21%. The Company had Current Assets of $22,653,250 at December 31, 2006, compared to $16,693,802 at the end of the prior year an increase of 36%. At December 31, 2006, the Company had Current Liabilities of $5,028,047, compared to $8,764,235 at December 31, 2005. As of year end 2006, consolidated working capital was $17,625,203, compared to $7,929,567 at December 31, 2005, an increase of 122%. Total Liabilities at December 31, 2006, were $14,034,924, compared to $17,264,410 at the end of the prior year. Shareholders Equity at the end of 2006 was $22,562,007 compared to $12,898,939 at December 31, 2005, an increase of over 74%.
Our Consolidated Selling General and Administrative expenses for 2006 were $14,143,237 compared to $9,562,334 in 2005. These expenses include the issuance of common shares of AMIN stock to management for services. The Company’s corporate segment had a gain of $3,477,218 in 2006 compared to a loss of $(3,623,383) in 2005, due to the $2,759,754 gain on the sale of the Rankin Road property, the receipt of $2,000,000 from the Nixon Refinery settlement, and $750,000 from the settlement of the Orion Health Care lawsuit.
The operating subsidiaries of AMIN are expecting continuing results for 2007:
Delta expects continued substantial sales of pipe and the introduction of an additional rig which will increase its revenue and profitability for the year. Delta has over a six month backlog;
NPI has a backlog of over $7,000,000, and AMIN expects NPI to have record shipments this year and an associated increase in profits. The Company expects NPI’s revenues to exceed $14,000,000, which represents a significant increase over NPI’s reported revenues for 2006;
IMTG’s subsidiaries, Hammonds Technical Services, Hammonds Fuel Additives, and Hammonds Water Treatment Systems, acquired in April, 2005, are estimating that their revenues will exceed $10,000,000, a significant increase over revenues reported for 2006. The Hammonds Companies are projected to be profitable in 2007; and
AMIN expects the sale of the 287 acres waterfront property in Galveston County, Texas to close, adding an additional $16 million dollars to the substantial cash position presently held by the Company.
For more detailed information, please review our 2006 Form10-KSB filing with the SEC.
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