HOUSTON and KEMAH, Texas, March 31, 2011 (GLOBE NEWSWIRE) -- American International Industries, Inc. (OTCBB:AMIN) (the "Company" or "American") reported revenues of $24,263,332 for the year ended December 31, 2010, compared to $18,463,407 for the year ended December 31, 2009, representing an increase of $5,799,925, or 31.4%.
Revenues for Northeastern Plastics, Inc. ("NPI"), our wholly-owned subsidiary, during the year ended December 31, 2010 were $14,460,039, compared to $9,673,598 for the year ended December 31, 2010, representing an increase of $4,786,441, or 49.5%. NPI's revenues increased primarily because NPI replaced a very large supplier for one of its major accounts, substantially increasing its business with this major customer. Additionally, NPI's revenues increased due to the addition of several new accounts and increased orders for existing accounts.
During the year ended December 31, 2010, Delta Seaboard International, Inc. ("Delta"), in which we hold a 48.1% shareholder interest, had revenues of $9,023,129, compared to $8,789,809 for the year ended December 31, 2009, representing an increase of $233,320, or 2.7%. Pipe sales for the year ended December 31, 2010 were $5,878,377 compared to $4,208,215 for the year ended December 31, 2009, representing an increase of $1,670,162, or 39.7%. Pipe sales increased primarily due to significantly increased drilling activities during 2010. Additionally, the cost of steel products decreased, allowing Delta to be more competitive in the pipe market. More pipe was sold to end-users, affording Delta larger pipe orders with higher margins. Rig service revenues decreased for the year ended December 31, 2010 by $1,436,842, or 31.4%, to $3,144,752 compared to $4,581,594 for the year ended December 31, 2009. Rig service revenues have decreased due to major maintenance on two rigs during 2010.
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 year ended December 31, 2010 are included in our results of operations. For the year ended December 31, 2010, DCP's revenues were $778,486.
For the year ended December 31, 2010, revenues for Brenham Oil & Gas ("BOG") were $1,678. 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 in a spin-off transaction. Mr. Scott Gaille, President of Brenham Oil & Gas, Inc. (BOG) today announced that the amended registration statement on Form S-1 of BOG was filed with the SEC on March 31, 2011. BOG has requested acceleration of the effective date of the registration statement for 10:00 a.m. on April 8, 2011. Upon the effective date of the registration statement, the BOG shareholders included in the S-1 will have registered free-trading shares of BOG common stock. BOG's as a separate reporting company, intends to make the requisite filing with FINRA to have its shares subject to quotation on the Over-The-Counter Bulletin Board.
Earnings before interest, taxes, depreciation and amortization (EBITDA) and excluding the noncontrolling interest and discontinued operations for the year ended December 31, 2010 reflected a loss of $426,263, or $0.04 per share, an improvement of $358,238, compared to EBITDA from continuing operations and excluding the noncontrolling interest for the year ended December 31, 2009, which reflected a loss of $784,501, or $0.09 per share. We had a net loss from continuing operations attributable to American of $1,334,681, or $0.13 per share, for the year ended December 31, 2010, compared to a net loss of $1,808,050, or $0.21 per share, for the same period in 2009. Our net loss from continuing operations for the year ended December 31, 2010 included interest expense, a tax benefit, depreciation and amortization, and loss attributable to non-controlling interest of $459,436, $12,521, $461,503, and $493,083, respectively. Our net loss from continuing operations for the year ended December 31, 2009 included interest expense, taxes, depreciation and amortization, and loss attributable to non-controlling interest of $460,517, $36,782, $526,250 and $635,348, respectively.
Cost of sales for the year ended December 31, 2010 was $16,354,957, compared to $11,107,087 for the year ended December 31, 2009. Our gross margins in 2010 were 32.6%, compared to gross margins of 39.8% in 2009. The decline in margins was primarily due to a change in the revenue mix. NPI's revenues represented 59.6% of total revenues for the year ended December 31, 2010, compared to 52.4% in 2009. The margins on NPI's revenues are historically lower than the margins on our other revenue components.
Consolidated selling, general and administrative expenses for the year ended December 31, 2010 were $11,189,708, compared to $10,450,154 in the prior year, representing an increase of $739,554, or 7.1%. Non-cash stock-based compensation for the year ended December 31, 2010 was $1,437,876, compared to $507,830 for the year ended December 31, 2009, representing an increase of $930,046, of which $847,750 was to the executive officers of Delta in consideration for extending their employment agreements. Selling, general and administrative expenses for the year ended December 31, 2010 included $645,270 in bad debt expense, primarily due to a $629,467 reserve established due to the uncertainty of collectability of notes receivable and related accrued interest. NPI's selling, general and administrative expenses for the year ended December 31, 2010 increased by $600,841 associated with the increase in revenues. These increases were significantly offset by lower expenses for Delta associated with a decline in rig service revenues and a significant reduction in corporate operating costs, including executive salaries and related expenses.
Other income was $1,441,048 for the year ended December 31, 2010, compared to $687,218 for the year ended December 31, 2009, representing an improvement of $753,830 from the prior period. Other income for the year ended December 31, 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 year ended December 31, 2010 included gains on the sale of assets of $763,597. During the year ended December 31, 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 year ended December 31, 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. On June 23, 2010, Joe Hoover, President of DCP, purchased 20% of the 1,000 shares of Common Stock of DCP held by American for $20,000 in cash and a $55,000 promissory note. American recorded a $74,814 gain on sale of assets for this transaction. Additionally, other income for the year ended December 31, 2010 included the receipt of $700,000 by Delta as a cash settlement for its claims in an insurance lawsuit. Other income included an expense of $1,650,000 for the Botts lawsuit settlement which was settled in February 2011. Interest and dividend income decreased by $324,397 for the year ended December 31, 2010 compared to the prior year due to lower interest rates and a reduction in the balance of certificates of deposit.
For more detailed information, please refer to our December 31, 2010 Form 10-K filing with the SEC, which was filed on March 31, 2011.
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: Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: amin@americanii.com