HOUSTON and KEMAH, Texas, Nov. 15, 2010 (GLOBE NEWSWIRE) -- American International Industries, Inc. (OTCBB:AMIN) (the "Company" or "American") reported revenues of $9,761,625 for the three months ended September 30, 2010, compared to $6,274,509 for the three months ended September 30, 2009, representing an increase of $3,487,116, or 55.6%. Revenues were $18,609,283 for the nine months ended September 30, 2010, compared to $14,707,321 for the nine months ended September 30, 2009, representing an increase of $3,901,962, or 26.5%.
American reported earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) of $2,085,738, or $0.21 per share, for the nine months ended September 30, 2010, compared to EBITDA from continuing operations for the nine months ended September 30, 2009, which reflected a loss of $507,717, or $0.06 per share. We had net income from continuing operations attributable to American of $1,342,390, or $0.14 per share, for the nine months ended September 30, 2010, compared to a net loss of $1,316,342, or $0.15 per share, for the same period in 2009. Our net loss from continuing operations for the nine months ended September 30, 2010 included interest expense, taxes, depreciation and amortization, and loss attributable to noncontrolling interest of $342,721, $51,354, $349,273, and $410,646, respectively. Our net loss from continuing operations for the nine months ended September 30, 2009 included interest expense, taxes, depreciation and amortization, and loss attributable to noncontrolling interest of $386,274, $26,008, $396,343 and $307,314, respectively.
EBITDA for the three months ended September 30, 2010 was $433,921, or $0.04 per share, compared to EBITDA from continuing operations for the three months ended September 30, 2009, which reflected a loss of $404,680, or $0.05 per share. We had net income from continuing operations attributable to American of $205,209, or $0.04 per share, for the three months ended September 30, 2010, compared to a net loss of $668,235, or $0.05 per share, for the same period in 2009. Our loss from continuing operations for the three months ended September 30, 2010 included interest expense, taxes, depreciation and amortization, and income attributable to noncontrolling interest of $113,764, $1,124, $113,824, and $2,555, respectively. Our net loss from continuing operations for the three months ended September 30, 2009 included interest expense, taxes, and depreciation and amortization, and loss attributable to noncontrolling interest of $123,472, $8,857, $131,226, and $14,660, respectively.
Revenues for Northeastern Plastics, Inc. ("NPI"), our wholly-owned subsidiary, during the three months ended September 30, 2010 were $7,032,494, compared to $4,123,329 for the three months ended September 30, 2009, representing an increase of $2,909,165, or 70.6%. NPI's revenues were $11,234,563 for the nine months ended September 30, 2010, compared to $7,761,016 for the nine months ended September 30, 2009, representing an increase of $3,473,547, or 44.8%. NPI's revenues increased primarily because NPI replaced a very large supplier for one of its major accounts, substantially increasing its business with this customer. Additionally, NPI's revenues increased due to the addition of several new accounts and increased orders for existing accounts.
During the nine months ended September 30, 2010, Delta Seaboard International, Inc. ("Delta"), in which we hold a 48.1% shareholder interest, had revenues of $2,424,500, compared to $2,151,180 during the three-month period ended September 30, 2009, representing an increase of $273,320, or 12.7%. During the nine months ended September 30, 2010, Delta had revenues of $6,708,240, compared to $6,946,305 during the nine-month period ended September 30, 2009, representing a decrease of $238,065, or 3.4%. Rig service revenues decreased for the three and nine months ended September 30, 2010, compared to the same period in the prior year by $455,100 and $1,481,148, respectively. Rig service revenues have decreased due to major maintenance on two rigs during 2010. This was offset by an increase in pipe sales for the three and nine months ended September 30, 2010, compared to the same period in the prior year, of $728,420 and $1,243,083 respectively.
In 2010, the Company formed a new 80%-owned subsidiary, Downhole Completion Products ("DCP"), that provides major international oil and gas service company end-users with the highest quality proprietary downhole/completion threaded products under any condition. The results of DCP for the three and nine months ended September 30, 2010 are included in our results of operations. For the three and nine months ended September 30, 2010, DCP's revenues were $303,379 and $665,228, respectively.
For the three and nine months ended September 30, 2010, revenues for Brenham Oil & Gas ("BOG") were $1,252 and $1,252, respectively. On September 21, 2010, American prepared a registration statement on Form S-1 in order to register the BOG shares being distributed to American's shareholders. Assuming the effectiveness of the registration statement, these shareholders will have registered free-trading shares. BOG will then be a separate reporting company, and we plan to take action in the future to quote BOG's common stock on the Over-The-Counter Bulletin Board.
Cost of sales for the three months ended September 30, 2010 was $7,097,590, compared to $4,147,587 for the three months ended September 30, 2009, representing an increase of $2,950,003, or 71.1%. Cost of sales for the nine months ended September 30, 2010 was $12,768,321, compared to $8,937,055 for the nine months ended September 30, 2009, representing an increase of $3,831,266, or 42.9%. Margins for the three months ended September 30, 2010 were 27%, compared to 34% for the three months ended September 30, 2009. Margins for the nine months ended September 30, 2010 were 31%, compared to 39% for the nine months ended September 30, 2009. The primary reason for the decline in margins is due to the change in the mix of the revenues during the period. NPI's margins are lower than those of our oil and gas related businesses. NPI's revenues during the three and nine months ended September 30, 2010 were 72% and 60%, respectively, of total revenues compared to 65% and 53% for the three and nine months ended September 30, 2009, respectively. Additionally, Delta experienced a decline in margins during the three months ended March 31, 2010, compared to the same period in the prior year, due to the sale of high-priced pipe from inventory. Margins on pipe sales were 2% for the three months ended March 31, 2010, compared to 25% during the same period in the prior year. Drilling activity has been increasing since the first quarter and we look forward to experiencing higher margins on pipe sales for the remainder of the year.
Selling, general and administrative expense for the three months ended September 30, 2010 was $2,295,043, compared to $2,967,961 for the three months ended September 30, 2009, representing a decrease of $672,918, or 22.7%. The decrease in general and administrative expenses is due primarily to a significant reduction in corporate operating costs, including executive salaries and related expenses, and lower expenses associated with the decline in rig service revenues. Selling, general and administrative expense for the nine months ended September 30, 2010 was $7,570,034, compared to $7,762,678 for the nine months ended September 30, 2009, representing a decrease of $192,644, or 2.5%. Non-cash stock-based compensation for the nine months ended September 30, 2010 was $1,174,803, compared to $436,430 for the nine months ended September 30, 2009, representing an increase of $738,373, of which $847,750 was to the executive officers of Delta in consideration for extending their employment agreements.
Other expense was $160,104 for the three months ended September 30, 2010, compared to other income of $167,001 for the three months ended September 30, 2009, representing a decrease of $327,105 from the prior period. The decrease in other income was primarily due to a net loss for realized/unrealized gains and losses on trading securities of $53,670 for the three months ended September 30, 2010, compared to net income of $200,382 for the three months ended September 30, 2009. Additionally, interest and dividend income decreased by $59,080. Other income was $2,712,170 for the nine months ended September 30, 2010, compared to $394,764 for the nine months ended September 30, 2009, representing an improvement of $2,317,406 from the prior period. Other income for the nine months ended September 30, 2010 includes non-cash compensation for consulting services of $1,370,000. The Company received 1,000,000 restricted shares of ADB International Group, Inc. common stock valued at $1.37 per share for these consulting services. Other income for the nine months ended September 30, 2010 included gains on the sale of assets of $760,542. During the nine months ended September 30, 2010, American sold an 8-acre tract of land with a book value of $175,480 for $340,445 and recognized a $164,965 gain for this transaction. During the nine months ended September 30, 2010, American sold its 51% ownership in Delta's facilities with a book value of $422,737 and the purchaser assumed the $943,500 note payable on the property. American recognized a $520,763 gain for this transaction. Additionally, other income for the nine months ended September 30, 2010 included the receipt of $700,000 by Delta as a cash settlement for its claims in an insurance lawsuit.
During the three months ended September 30, 2010, American began activities to sell the assets and associated liabilities of its wholly-owned subsidiary, SET. SET's losses are included in discontinued operations in the consolidated statements of operations for the three and nine months ended September 30, 2010 and 2009. Additionally, for the nine months ended September 30, 2009, our loss from discontinued operations includes $350,000 related to the sale of Hammonds Industries, Inc. We had a net loss from discontinued operations for the three and nine months ended September 30, 2010 of $375,058, or $0.04 per share, and $1,103,630, or $0.11 per share, respectively, and for the three and nine months ended September 30, 2009 of $243,407, or $0.03 per share, and $640,687, or $0.07 per share, respectively.
For more detailed information, please refer to our September 30, 2010 Form 10-Q filing with the SEC, which was filed on November 15, 2010.
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.
Forward-looking Statement:
This press release may contain forward-looking statements, including information about management's view of the Company's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are 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, among others:, continued value of our real estate portfolio; the strength of the real estate market in Houston, Texas as a whole; the ability to expand its interests in the energy sector; increased levels of competition; the dependence upon financing, the rules of regulatory authorities and risks associated with any potential acquisitions. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of the Company, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents the Company files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
CONTACT: American International Industries, Inc. Investor Relations: Rebekah Ruthstrom 281-334-9479 amin@americanii.com