American International Industries Inc (AMIN, Financial) filed Quarterly Report for the period ended 2010-06-30.
American International Industries Inc has a market cap of $8.77 million; its shares were traded at around $0.79 with and P/S ratio of 0.34.
Selling, general and administrative. Selling, general and administrative expense for the three months ended June 30, 2010 was $2,451,615, compared to $2,746,616 for the three months ended June 30, 2009, representing a decrease of $295,001, or 11%. Selling, general and administrative expense for the six months ended June 30, 2010 was $5,875,994, compared to $5,399,702 for the six months ended June 30, 2009, representing an increase of $476,292, or 9%. The increase in general and administrative expenses is due primarily to non-cash stock-based compensation of $1,037,610, of which $847,750 was to the executive officers of Delta in consideration for extending their employment agreements. Stock-based compensation for the six months ended June 30, 2010 was $1,037,610, compared to $41,250 for the six months ended June 30, 2009, representing an increase of $996,360. This increase was partially offset by lower selling, general and administrative expense associated with the decline in rig service revenues at Delta.
Total other income/expenses. Other income was $2,126,329 for the three months ended June 30, 2010, compared to other expense of $113,564 for the three months ended June 30, 2009, representing an improvement of $2,239,893 from the prior period. Other income was $2,682,835 for the six months ended June 30, 2010, compared to $8,286 for the six months ended June 30, 2009, representing an improvement of $2,674,549 from the prior period. Other income for the three and six months ended June 30, 2010 includes 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 three and six months ended June 30, 2010 included gains on the sale of assets of $781,204. During the three months ended June 30, 2010, American sold an 8 acre tract of land valued at $175,480 for $340,445 and recognized a $164,965 gain for this transaction, see Note 4. During the three months ended June 30, 2010, American sold its 51% ownership in Delta's facilities valued at $422,737 and the purchaser assumed the $943,500 note payable on the property. American recognized a $520,763 gain for this transaction, see Note 6. Additionally, other income for the six months ended June 30, 2010 included the receipt of $700,000 by Delta as a cash settlement for its claims in an insurance lawsuit.
Total assets/working capital. Total assets at June 30, 2010 were $31,749,551, compared to $31,012,169 at December 31, 2009, representing an increase of $737,382. At June 30, 2010, consolidated working capital was $12,532,027, compared to working capital of $13,141,451 at December 31, 2009, representing a decrease of $609,424. Total assets as of June 30, 2010, included real estate held for sale of $6,980,680 (see Note 4), inventories of $5,086,598, accounts receivable of $3,845,201, cash and cash equivalents of $1,933,931, certificate of deposit of $1,386,888 and $1,664,120 of trading securities. Long term assets included $6,453,139 of property and equipment and $1,550,000 of marketable securities – available for sale, consisting of 1,000,000 shares of ADB International Group, Inc. ("ADBI") common stock received as compensation for consulting services.
Cash flow from operations. For the six months ended June 30, 2010, we used cash in operations of $412,475, compared to $4,200 during the same period in 2009. Our net loss of $4,592 for the six months ended June 30, 2010 included non-cash income of $2,151,204, including shares received for consulting services of $1,370,000 and gains on disposals of assets of $781,204. Non-cash expenses included in net income were $1,608,966, including depreciation and amortization of $571,356 and share-based compensation of $1,037,610. Our net loss of $988,041 for the six months ended June 30, 2009 included non-cash expenses of $632,735, including depreciation and amortization of $591,485 and share-based compensation of $41,250. Our inventories decreased by $695,861 for the six months ended June 30, 2010, compared to an increase of $797,874 during the six months ended June 30, 2009. We increased our investments in trading securities by $57,389 during the six months ended June 30, 2010, compared to a decrease of $124,148 during the same period in 2009. Accounts receivable increased by $778,652 during the six months ended June 30, 2010, compared to a decrease of $564,466 during the same period in 2009. Accounts payable increased by $584,702 during the six months ended June 30, 2010, compared to an increase of $659,580 during the same period in 2009.
Cash flow from investing activities. For the six months ended June 30, 2010, our investing activities provided cash of $736,327 primarily as a result of proceeds from the sale of real estate held for sale of $943,500 and from the sale of property and equipment of $340,445, offset by loans to related parties of $284,435 and the purchase of property and equipment of $105,843. Our investing activities provided cash of $964,076 during the six months ended June 30, 2009, as a result of a net decrease in investments in certificates of deposit of $1,550,000, offset by the issuance of a note receivable of $300,000, loans to related parties of $221,939, and purchases of property and equipment of $133,821.
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American International Industries Inc has a market cap of $8.77 million; its shares were traded at around $0.79 with and P/S ratio of 0.34.
Highlight of Business Operations:
During the three months ended June 30, 2010, Delta had revenues of $2,045,082, compared to $2,331,214 during the three-month period ended June 30, 2009, representing a decrease of $286,132, or 12%. During the six months ended June 30, 2010, Delta had revenues of $4,283,740, compared to $4,795,125 during the six-month period ended June 30, 2009, representing a decrease of $511,385, or 11%. The decrease in revenues is mainly due to a decrease in rig service revenues for the three and six months ended June 30, 2010, compared to the same period in the prior year, of $815,544 and $1,016,049, respectively. Rig service revenues have decreased due to major maintenance on two rigs during 2010. This was partially offset by an increase in pipe sales for the three and six months ended June 30, 2010, compared to the same period in the prior year, of $529,412 and $504,664, respectively.Selling, general and administrative. Selling, general and administrative expense for the three months ended June 30, 2010 was $2,451,615, compared to $2,746,616 for the three months ended June 30, 2009, representing a decrease of $295,001, or 11%. Selling, general and administrative expense for the six months ended June 30, 2010 was $5,875,994, compared to $5,399,702 for the six months ended June 30, 2009, representing an increase of $476,292, or 9%. The increase in general and administrative expenses is due primarily to non-cash stock-based compensation of $1,037,610, of which $847,750 was to the executive officers of Delta in consideration for extending their employment agreements. Stock-based compensation for the six months ended June 30, 2010 was $1,037,610, compared to $41,250 for the six months ended June 30, 2009, representing an increase of $996,360. This increase was partially offset by lower selling, general and administrative expense associated with the decline in rig service revenues at Delta.
Total other income/expenses. Other income was $2,126,329 for the three months ended June 30, 2010, compared to other expense of $113,564 for the three months ended June 30, 2009, representing an improvement of $2,239,893 from the prior period. Other income was $2,682,835 for the six months ended June 30, 2010, compared to $8,286 for the six months ended June 30, 2009, representing an improvement of $2,674,549 from the prior period. Other income for the three and six months ended June 30, 2010 includes 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 three and six months ended June 30, 2010 included gains on the sale of assets of $781,204. During the three months ended June 30, 2010, American sold an 8 acre tract of land valued at $175,480 for $340,445 and recognized a $164,965 gain for this transaction, see Note 4. During the three months ended June 30, 2010, American sold its 51% ownership in Delta's facilities valued at $422,737 and the purchaser assumed the $943,500 note payable on the property. American recognized a $520,763 gain for this transaction, see Note 6. Additionally, other income for the six months ended June 30, 2010 included the receipt of $700,000 by Delta as a cash settlement for its claims in an insurance lawsuit.
Total assets/working capital. Total assets at June 30, 2010 were $31,749,551, compared to $31,012,169 at December 31, 2009, representing an increase of $737,382. At June 30, 2010, consolidated working capital was $12,532,027, compared to working capital of $13,141,451 at December 31, 2009, representing a decrease of $609,424. Total assets as of June 30, 2010, included real estate held for sale of $6,980,680 (see Note 4), inventories of $5,086,598, accounts receivable of $3,845,201, cash and cash equivalents of $1,933,931, certificate of deposit of $1,386,888 and $1,664,120 of trading securities. Long term assets included $6,453,139 of property and equipment and $1,550,000 of marketable securities – available for sale, consisting of 1,000,000 shares of ADB International Group, Inc. ("ADBI") common stock received as compensation for consulting services.
Cash flow from operations. For the six months ended June 30, 2010, we used cash in operations of $412,475, compared to $4,200 during the same period in 2009. Our net loss of $4,592 for the six months ended June 30, 2010 included non-cash income of $2,151,204, including shares received for consulting services of $1,370,000 and gains on disposals of assets of $781,204. Non-cash expenses included in net income were $1,608,966, including depreciation and amortization of $571,356 and share-based compensation of $1,037,610. Our net loss of $988,041 for the six months ended June 30, 2009 included non-cash expenses of $632,735, including depreciation and amortization of $591,485 and share-based compensation of $41,250. Our inventories decreased by $695,861 for the six months ended June 30, 2010, compared to an increase of $797,874 during the six months ended June 30, 2009. We increased our investments in trading securities by $57,389 during the six months ended June 30, 2010, compared to a decrease of $124,148 during the same period in 2009. Accounts receivable increased by $778,652 during the six months ended June 30, 2010, compared to a decrease of $564,466 during the same period in 2009. Accounts payable increased by $584,702 during the six months ended June 30, 2010, compared to an increase of $659,580 during the same period in 2009.
Cash flow from investing activities. For the six months ended June 30, 2010, our investing activities provided cash of $736,327 primarily as a result of proceeds from the sale of real estate held for sale of $943,500 and from the sale of property and equipment of $340,445, offset by loans to related parties of $284,435 and the purchase of property and equipment of $105,843. Our investing activities provided cash of $964,076 during the six months ended June 30, 2009, as a result of a net decrease in investments in certificates of deposit of $1,550,000, offset by the issuance of a note receivable of $300,000, loans to related parties of $221,939, and purchases of property and equipment of $133,821.
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