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 SECOND QUARTER RESULTS
Kemah, Texas – August 10, 2006 American International Industries, Inc. (OTCBB: AMIN)
Mr. Gary D. Woerz, Chief Financial Officer, said that the Company reported for the period ending June 30, 2006 record revenues for the three months ending June 30, 2006 of $7,551,558 as compared to $4,869,929 in 2005 an increase of approximately 55% and for the nine month period ending June 30, 2006 $14,411,440 as compared to $8,985,621 an increase of approximately 60%. The increase was due to the increase in oil drilling pipe sales at Delta, the increase of sales at NPI due to the licenses to sell Motortrend and Good Housekeeping products and the revenues generated by our Hammonds subsidiary. The Company reported net losses for the three month period ending June 30, 2006 of $35,116 and a net loss for the nine month period of $365,707 as compared to net losses of $479,349 and $1,751,212 for the comparable periods in 2005. The three and six month loss in 2006 is attributable to the auditing and accounting fees in excess of $500,000. The Company reported that total assets for the six month period of $29,634,429 as compared to $30,163,349 at December 31, 2005. Total liabilities at June 30 were $17,229,853 as compared to $17,264,410 at year end. As of June 30, 2006 the consolidated working capital was $9,162,888 as compared to working capital of $7,929,567 at December 31, 2005.
The operating subsidiaries of AMIN are expecting certain results for the balance of the year as follows: (a) at the beginning of the third quarter Delta added an additional well service rig which could increase service revenue by 20%, with approximate gross margin of 35%, (b) due to the increased demand of pipe Delta expects to have increased revenue and profitability in the third quarter, (c) NPI currently has a backlog of over $3,500,000 and we expect NPI to have record shipments in the third and fourth quarter of this year, (d) the company currently expects NPI’s revenue to exceed $13,000,000, which represents a significant increase over NPI’s revenue for 2005 and (d) IMTG’s subsidiary Hammonds Technical Services, acquired in April, 2005, is estimating that its revenue for the next three months could exceed $1,500,000 with estimated 2006 revenues in excess of $6,000,000.
For more detailed information, please review our end of year 10K 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