HOUSTON and KEMAH, Texas, Aug. 14, 2008 (PRIME NEWSWIRE) -- American International Industries, Inc. (Nasdaq:AMIN) (the "Company"), reported revenues of $9,496,061 for the three months ended June 30, 2008, compared to $7,027,294 for the same period in the prior year, representing an increase of $2,468,767, or 35%. The increase in revenues is primarily due to higher pipe sales at Delta of $2,210,152 due to increased drilling activity creating greater demand for well services and pipe. For the six months ended June 30, 2008, the Company increased revenues by $1,572,259, or 12%, to $15,212,123, compared to $13,639,864 for the same period in the prior year. Revenues increased at Delta by $1,507,123 primarily due to higher pipe sales and at Hammonds by $588,753 due to greater demand for Hammonds Water Treatment products and increased sales of Hammonds Technical Services' transport mounted injection systems and Hammonds' line of Omni Directional Vehicles (ODVs(r)). Revenues at NPI were lower by $523,617 due to an overstock position from the 2007 holiday season from one large customer.
The Company's consolidated net loss from operations for the three months ended June 30, 2008 was $261,250, compared to $780,168 during the same three months in the prior year, representing an improvement of $518,918, or 67%. Operating expenses include non-cash items, such as depreciation, amortization, and stock based compensation. Excluding non-cash expenses, our operating income was $240,436 and operating loss was $1,362,526, respectively, for the three and six months ended June 30, 2008. For the three and six months ended June 30, 2008, depreciation and amortization was $352,538 and $691,635, respectively, and stock based compensation was $149,148 and $320,528, respectively. The decrease in net loss from operations was due to an increase in revenues and a decrease in general and administrative costs as a percentage of revenues to 39% for the three months ended June 30, 2008, compared to 49% for the same three months in the prior year. Consolidated net loss from operations for the six months ended June 30, 2008 was $2,374,689, compared to a net loss of $2,224,990 during the same period in 2007. Margins increased to 35% for the six months ended June 30, 2008, compared to 34% for the same six months in the prior year. Selling, general and administrative costs as a percentage of revenues improved to 50% for the six months ended June 30, 2008, compared to 51% for the same six months in the prior year.
Net income was $176,265 and net loss was $3,004,547, respectively, for the three and six months ended June 30, 2008, compared to net losses of $687,366 and $1,980,266, respectively, for the same period in 2007. Net income for the three and six months ended June 30, 2008 includes $2,945,133 for recognition of the property dividend distribution gain associated with the declaration of the Hammonds' stock dividend and the recognition of the Delta lawsuit settlement. Net income includes a net realized/unrealized loss on trading securities of $1,250,565 and $2,610,845 for the three and six months ended June 30, 2008, respectively, compared to a loss of $30,847 and a gain of $13,366 for the same periods in the prior year, respectively. The net unrealized loss on trading securities of $2,581,984 for the six months ended June 30, 2008, was due primarily to marking to market the decline in the value of our investments in OI Corporation and Rubicon Financial Incorporated of $2,277,806. Delta recognized other income from a Texas Emissions Reduction Plan (TERP) grant in the amount of $57,589 for the six months ended June 30, 2008 compared to $347,160 for the six months ended June 30, 2007.
Hammonds is building the infrastructure and prototypes for new products in anticipation of a major business expansion and is bidding on a large contract for the United States Army.
American International Industries, Inc. is a growing diversified holding company with a business model emphasis on enhancing assets and stockholders' equity to facilitate substantial future revenues and earnings per share. Ms. Sherry Couturier, Chief Financial Officer, stated, "During the past five years, the Company has increased assets to $43,312,307 at June 30, 2008, or an increase of $32,145,158, or 288%, from $11,167,149 at December 31, 2002; the Company has increased stockholders' equity to $20,681,657 at June 30, 2008, or an increase of $12,557,930, or 155%, from $8,123,727 at December 31, 2002."
For more detailed information, please refer to our June 30, 2008 Form 10-Q filing with the SEC on August 14, 2008.
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.