American International Industries Inc (AMIN, Financial) filed Quarterly Report for the period ended 2012-03-31.
Amer Intl Indu has a market cap of $3.5 million; its shares were traded at around $0.22 with and P/S ratio of 0.2.
Cost of sales and margins. Cost of sales for the three months ended March 31, 2012 was $800,816, compared to $1,162,052 for the three months ended March 31, 2011. Our gross margins in 2012 were 30.6%, compared to gross margins of 27.4% in 2011. The increase in margins was primarily due to a better product mix at NPI. NPI has been able to move away from commodity-based products and toward more unique items, for which NPI receives higher margins. Selling, general and administrative. Consolidated selling, general and administrative expenses for the three months ended March 31, 2012 were $982,845, compared to $1,571,495 in the prior year, representing a decrease of $588,650, or 37.5%, primarily due to a decrease in stock-based compensation. General and administrative expenses for the three months ended March 31, 2012 included non-cash stock-based compensation of $0, compared to $507,549 during the three months ended March 31, 2011. Selling, general and administrative expenses for the three months ended March 31, 2011 included higher than normal legal costs related to the Botts lawsuit settlement and one-time costs incurred for Brenham to become a public company. Gain (loss) on sale of assets. Loss on sale of assets for the three months ended March 31, 2012 was $12,738, compared to $0 for the three months ended March 31, 2011. During the three months ended March 31, 2012, 3 Dawn Condominium units were sold for $340,202, resulting in a loss on sale of assets of $12,738 (see note 6 to the consolidated financial statements). 23 Income (Loss) from operations. We had an operating loss of $642,985 for the three months ended March 31, 2012, compared to an operating loss of $1,131,238 for the three months ended March 31, 2011. Total other income/expenses. Other income was $29,846 for the three months ended March 31, 2012, compared to other expenses of $330,358 for the three months ended March 31, 2011. Other income for the three months ended March 31, 2012 included non-cash unrealized gains on trading securities of $70,146, compared to losses of $399,545 for the three months ended March 31, 2011. Interest expense was $59,008 during the three-month period ended March 31, 2012, compared to $79,519 during the same period in the prior year. Net loss. We had a net loss from continuing operations of $572,941, or $0.00 per share, for the three months ended March 31, 2012, compared to a net loss of $1,463,711, or $0.13 per share, for the three months ended March 31, 2011. We had a net loss from the discontinued operations of DSWSI of $922,517, or $0.06 per share, for the three months ended March 31, 2012, compared to net income of $84,790, or $0.01 per share, for the three months ended March 31, 2011. Net loss from discontinued operations for the three months ended March 31, 2011 includes DSWSI's net income of $144,200, DCP's net loss of $4,410 for the three months ended March 31, 2011 and $55,000 for the promissory note owed by Joe Hoover which was forgiven as part of the sale of DCP. Our net loss was $965,901, or $0.06 per share, for the three months ended March 31, 2012, compared to net a net loss of $1,378,950, or $0.12 per share, for the three months ended March 31, 2011. Liquidity and Capital Resources
Liquidity is our ability to generate sufficient cash flows to meet the Company s obligations and commitments, or obtain appropriate financing. Currently, our liquidity needs arise primarily from working capital requirements, debt service on indebtedness, and capital expenditures. We have funded these liquidity requirements from proceeds from net borrowings under lines of credit agreements of $363,500 and proceeds from the sale of real estate held for sale of $340,202. Capital expenditures for the three months ended March 31, 2012 were $3,510 compared to $1,756 for the same period in the prior year. The Company has no major capital expenditure commitments for the next 12 months. Net cash used in operating activities from continuing operations was $656,645 for the three months ended March 31, 2012, compared to $2,448,587 for the three months ended March 31, 2011. Net cash used in operating activities for the three months ended March 31, 2012 was derived primarily from our net loss from continuing operations of $572,941, an increase in inventories at NPI of $225,043, offset by a decrease in accounts receivable of $173,345, due to collections of the higher seasonal revenues at NPI during the fourth quarter of 2011. Net cash used in operating activities for the three months ended March 31, 2011 includes a one-time lump sum payment of $1,250,000 for a lawsuit settlement that was accrued as of December 31, 2010. Additionally, accounts payable decreased significantly due to payments made in the three months ended March 31, 2011 for expenses incurred during the three months ended December 31, 2010 in support of higher revenues at NPI. The Company's prospects for selling real estate from its portfolio have improved significantly due to infrastructure developments in close proximity to these properties. Management believes that demand and prices for real estate will increase during the next 12 to 24 months from the date of this report. The appraised values of the Company's portfolio of real estate is significantly higher than the value recorded on the books. For the three months ended March 31, 2012, our investing activities provided cash of $285,898, compared to $243,797 during the three months ended March 31, 2011. Our financing activities provided cash of $320,959 during the three months ended March 31, 2012, compared to $1,322,741 during the three months ended March 31, 2011. In January 2011, NPI obtained a line of credit from Trustmark Bank in the amount of $3,000,000, which had a maturity date in April 2012. NPI is in the process of renewing this line of credit with the bank. We believe that our cash on hand, operating cashflows, and credit facilities will be sufficient to fund our operations, service our debt, and fund planned capital expenditures for at least 12 months from the date of this report. Total assets at March 31, 2012 were $20,629,189, compared to $20,866,526 at December 31, 2011, representing a decrease of $237,337. At March 31, 2012, consolidated working capital was $8,763,685, compared to working capital of $9,173,114 at December 31, 2011, representing a decrease of $409,429. Total assets as of March 31, 2012, included real estate held for sale of $7,562,572 (see note 6), inventories of $2,130,058, accounts receivable of $1,037,655, cash and cash equivalents of $819,458, certificates of deposit of $50,000, $225,746 of trading securities, $669,004 in notes receivable, $2,016,992 of property and equipment, and assets held for sale of $5,286,633.
We had total liabilities of $8,632,629 as of March 31, 2012, which included $7,169,272 of current liabilities, mainly consisting of $881,632 of accounts payable and accrued expenses, $2,409,522 of current installments of long-term debt, liabilities associated with assets held for sale of $3,740,660, and long-term liabilities of $1,463,357, consisting of long-term debt (less current installments) of $1,365,452, accrued pension expense of $53,599, and liabilities associated with assets held for sale of $44,306. Cash flow from operations. Net cash used in operating activities from continuing operations was $656,645 for the three months ended March 31, 2012, compared to $2,448,587 for the three months ended March 31, 2011. Net cash used in operating activities for the three months ended March 31, 2012 was derived from our net loss of $572,941, which included non-cash expenses of $41,260, including depreciation and amortization of $17,196 and amortization of guarantor fee of $24,064. Net cash used in operating activities for the three months ended March 31, 2011 includes a one-time lump sum payment of $1,250,000 for a lawsuit settlement. Our net loss from continuing operations of $1,463,711 for the three months ended March 31, 2011 included non-cash expenses of $523,655, including depreciation and amortization of $16,106 and share-based compensation of $507,549. Accounts receivable decreased by $173,345 during the three months ended March 31, 2012, compared to a decrease of $834,840 during the same period in 2011. NPI collected accounts receivable during the three months ended March 31, 2011, which resulted from significantly higher revenues during the three months ended December 31, 2010. Our inventories increased by $225,043 for the three months ended March 31, 2012, compared to an increase of $622,577 during the three months ended March 31, 2011. Accounts payable increased by $27,884 during the three months ended March 31, 2012, compared to a decrease of $1,953,603 during the same period in 2011. The decrease in accounts payable during the three months ended March 31, 2011 included the a one-time lump sum payment of $1,250,000 for a lawsuit settlement. The remainder of the decrease in accounts payable was primarily due to payments made in the three months ended March 31, 2011 for expenses incurred during the three months ended December 31, 2010 in support of higher revenues at NPI. Cash flow from investing activities. For the three months ended March 31, 2012, our investing activities provided cash of $285,898 primarily as a result of proceeds from the sale of real estate held for sale of $340,202, offset by the purchase of property and equipment of $10,949 and an investment in a certificate of deposit of $50,000. Our investing activities provided cash of $243,797 during the three months ended March 31, 2011, primarily as a result of proceeds from the sale of trading securities of $238,361. Cash flow from financing activities. Our financing activities provided cash of $320,959 during the three months ended March 31, 2012, primarily as a result of net borrowings under lines of credit agreements of $363,500, offset by payments on debt of $73,840. During the three months ended March 31, 2011, our financing activities provided cash of $1,322,741, primarily as a result of proceeds from the issuance of common stock of $300,000, proceeds from a common stock issuance obligation of $245,000, and net borrowings under lines of credit agreements of $844,963, offset by payments on debt of $48,503. ITEM 3.
Cash flow from operations. Net cash used in operating activities from continuing operations was $656,645 for the three months ended March 31, 2012, compared to $2,448,587 for the three months ended March 31, 2011. Net cash used in operating activities for the three months ended March 31, 2012 was derived from our net loss of $572,941, which included non-cash expenses of $41,260, including depreciation and amortization of $17,196 and amortization of guarantor fee of $24,064. Net cash used in operating activities for the three months ended March 31, 2011 includes a one-time lump sum payment of $1,250,000 for a lawsuit settlement. Our net loss from continuing operations of $1,463,711 for the three months ended March 31, 2011 included non-cash expenses of $523,655, including depreciation and amortization of $16,106 and share-based compensation of $507,549. Accounts receivable decreased by $173,345 during the three months ended March 31, 2012, compared to a decrease of $834,840 during the same period in 2011. NPI collected accounts receivable during the three months ended March 31, 2011, which resulted from significantly higher revenues during the three months ended December 31, 2010. Our inventories increased by $225,043 for the three months ended March 31, 2012, compared to an increase of $622,577 during the three months ended March 31, 2011. Accounts payable increased by $27,884 during the three months ended March 31, 2012, compared to a decrease of $1,953,603 during the same period in 2011. The decrease in accounts payable during the three months ended March 31, 2011 included the a one-time lump sum payment of $1,250,000 for a lawsuit settlement. The remainder of the decrease in accounts payable was primarily due to payments made in the three months ended March 31, 2011 for expenses incurred during the three months ended December 31, 2010 in support of higher revenues at NPI.
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Amer Intl Indu has a market cap of $3.5 million; its shares were traded at around $0.22 with and P/S ratio of 0.2.
Highlight of Business Operations:
Note 3 - Trading Securities and Marketable Securities - Available for Sale Investments in equity securities primarily include shares of common stock in various companies that are bought and held principally for the purpose of selling them in the near term with the objective of generating profits on short-term differences in price. These investments are classified as trading securities and, accordingly, any unrealized changes in market values are recognized in the consolidated statements of operations. For the three months ended March 31, 2012 and 2011, American had net unrealized trading gains of $70,146 and losses of $399,545, respectively, related to securities held on those dates. American recorded net realized gains of $0 and $144,812 for the three months ended March 31, 2012 and 2011, respectively. 11 On June 21, 2010, American received as compensation for consulting services 1,000,000 restricted shares of ADB International Group, Inc. ("ADBI") common stock valued at $1,370,000, based on the closing market price of $1.37 per share on that date. On December 8, 2010, American purchased an additional 300,000 shares for $35,000. This investment is classified as marketable securities - available for sale and, accordingly, any unrealized changes in market values are recognized as other comprehensive loss. At March 31, 2012, this investment was valued at $5,460, based on the closing market price of $0.0042 per share on that date. American recognized other comprehensive loss for the three months ended March 31, 2012 and 2011 of $2,340 and 117,000, respectively, for the unrealized loss on this investment.Cost of sales and margins. Cost of sales for the three months ended March 31, 2012 was $800,816, compared to $1,162,052 for the three months ended March 31, 2011. Our gross margins in 2012 were 30.6%, compared to gross margins of 27.4% in 2011. The increase in margins was primarily due to a better product mix at NPI. NPI has been able to move away from commodity-based products and toward more unique items, for which NPI receives higher margins. Selling, general and administrative. Consolidated selling, general and administrative expenses for the three months ended March 31, 2012 were $982,845, compared to $1,571,495 in the prior year, representing a decrease of $588,650, or 37.5%, primarily due to a decrease in stock-based compensation. General and administrative expenses for the three months ended March 31, 2012 included non-cash stock-based compensation of $0, compared to $507,549 during the three months ended March 31, 2011. Selling, general and administrative expenses for the three months ended March 31, 2011 included higher than normal legal costs related to the Botts lawsuit settlement and one-time costs incurred for Brenham to become a public company. Gain (loss) on sale of assets. Loss on sale of assets for the three months ended March 31, 2012 was $12,738, compared to $0 for the three months ended March 31, 2011. During the three months ended March 31, 2012, 3 Dawn Condominium units were sold for $340,202, resulting in a loss on sale of assets of $12,738 (see note 6 to the consolidated financial statements). 23 Income (Loss) from operations. We had an operating loss of $642,985 for the three months ended March 31, 2012, compared to an operating loss of $1,131,238 for the three months ended March 31, 2011. Total other income/expenses. Other income was $29,846 for the three months ended March 31, 2012, compared to other expenses of $330,358 for the three months ended March 31, 2011. Other income for the three months ended March 31, 2012 included non-cash unrealized gains on trading securities of $70,146, compared to losses of $399,545 for the three months ended March 31, 2011. Interest expense was $59,008 during the three-month period ended March 31, 2012, compared to $79,519 during the same period in the prior year. Net loss. We had a net loss from continuing operations of $572,941, or $0.00 per share, for the three months ended March 31, 2012, compared to a net loss of $1,463,711, or $0.13 per share, for the three months ended March 31, 2011. We had a net loss from the discontinued operations of DSWSI of $922,517, or $0.06 per share, for the three months ended March 31, 2012, compared to net income of $84,790, or $0.01 per share, for the three months ended March 31, 2011. Net loss from discontinued operations for the three months ended March 31, 2011 includes DSWSI's net income of $144,200, DCP's net loss of $4,410 for the three months ended March 31, 2011 and $55,000 for the promissory note owed by Joe Hoover which was forgiven as part of the sale of DCP. Our net loss was $965,901, or $0.06 per share, for the three months ended March 31, 2012, compared to net a net loss of $1,378,950, or $0.12 per share, for the three months ended March 31, 2011. Liquidity and Capital Resources
Liquidity is our ability to generate sufficient cash flows to meet the Company s obligations and commitments, or obtain appropriate financing. Currently, our liquidity needs arise primarily from working capital requirements, debt service on indebtedness, and capital expenditures. We have funded these liquidity requirements from proceeds from net borrowings under lines of credit agreements of $363,500 and proceeds from the sale of real estate held for sale of $340,202. Capital expenditures for the three months ended March 31, 2012 were $3,510 compared to $1,756 for the same period in the prior year. The Company has no major capital expenditure commitments for the next 12 months. Net cash used in operating activities from continuing operations was $656,645 for the three months ended March 31, 2012, compared to $2,448,587 for the three months ended March 31, 2011. Net cash used in operating activities for the three months ended March 31, 2012 was derived primarily from our net loss from continuing operations of $572,941, an increase in inventories at NPI of $225,043, offset by a decrease in accounts receivable of $173,345, due to collections of the higher seasonal revenues at NPI during the fourth quarter of 2011. Net cash used in operating activities for the three months ended March 31, 2011 includes a one-time lump sum payment of $1,250,000 for a lawsuit settlement that was accrued as of December 31, 2010. Additionally, accounts payable decreased significantly due to payments made in the three months ended March 31, 2011 for expenses incurred during the three months ended December 31, 2010 in support of higher revenues at NPI. The Company's prospects for selling real estate from its portfolio have improved significantly due to infrastructure developments in close proximity to these properties. Management believes that demand and prices for real estate will increase during the next 12 to 24 months from the date of this report. The appraised values of the Company's portfolio of real estate is significantly higher than the value recorded on the books. For the three months ended March 31, 2012, our investing activities provided cash of $285,898, compared to $243,797 during the three months ended March 31, 2011. Our financing activities provided cash of $320,959 during the three months ended March 31, 2012, compared to $1,322,741 during the three months ended March 31, 2011. In January 2011, NPI obtained a line of credit from Trustmark Bank in the amount of $3,000,000, which had a maturity date in April 2012. NPI is in the process of renewing this line of credit with the bank. We believe that our cash on hand, operating cashflows, and credit facilities will be sufficient to fund our operations, service our debt, and fund planned capital expenditures for at least 12 months from the date of this report. Total assets at March 31, 2012 were $20,629,189, compared to $20,866,526 at December 31, 2011, representing a decrease of $237,337. At March 31, 2012, consolidated working capital was $8,763,685, compared to working capital of $9,173,114 at December 31, 2011, representing a decrease of $409,429. Total assets as of March 31, 2012, included real estate held for sale of $7,562,572 (see note 6), inventories of $2,130,058, accounts receivable of $1,037,655, cash and cash equivalents of $819,458, certificates of deposit of $50,000, $225,746 of trading securities, $669,004 in notes receivable, $2,016,992 of property and equipment, and assets held for sale of $5,286,633.
We had total liabilities of $8,632,629 as of March 31, 2012, which included $7,169,272 of current liabilities, mainly consisting of $881,632 of accounts payable and accrued expenses, $2,409,522 of current installments of long-term debt, liabilities associated with assets held for sale of $3,740,660, and long-term liabilities of $1,463,357, consisting of long-term debt (less current installments) of $1,365,452, accrued pension expense of $53,599, and liabilities associated with assets held for sale of $44,306. Cash flow from operations. Net cash used in operating activities from continuing operations was $656,645 for the three months ended March 31, 2012, compared to $2,448,587 for the three months ended March 31, 2011. Net cash used in operating activities for the three months ended March 31, 2012 was derived from our net loss of $572,941, which included non-cash expenses of $41,260, including depreciation and amortization of $17,196 and amortization of guarantor fee of $24,064. Net cash used in operating activities for the three months ended March 31, 2011 includes a one-time lump sum payment of $1,250,000 for a lawsuit settlement. Our net loss from continuing operations of $1,463,711 for the three months ended March 31, 2011 included non-cash expenses of $523,655, including depreciation and amortization of $16,106 and share-based compensation of $507,549. Accounts receivable decreased by $173,345 during the three months ended March 31, 2012, compared to a decrease of $834,840 during the same period in 2011. NPI collected accounts receivable during the three months ended March 31, 2011, which resulted from significantly higher revenues during the three months ended December 31, 2010. Our inventories increased by $225,043 for the three months ended March 31, 2012, compared to an increase of $622,577 during the three months ended March 31, 2011. Accounts payable increased by $27,884 during the three months ended March 31, 2012, compared to a decrease of $1,953,603 during the same period in 2011. The decrease in accounts payable during the three months ended March 31, 2011 included the a one-time lump sum payment of $1,250,000 for a lawsuit settlement. The remainder of the decrease in accounts payable was primarily due to payments made in the three months ended March 31, 2011 for expenses incurred during the three months ended December 31, 2010 in support of higher revenues at NPI. Cash flow from investing activities. For the three months ended March 31, 2012, our investing activities provided cash of $285,898 primarily as a result of proceeds from the sale of real estate held for sale of $340,202, offset by the purchase of property and equipment of $10,949 and an investment in a certificate of deposit of $50,000. Our investing activities provided cash of $243,797 during the three months ended March 31, 2011, primarily as a result of proceeds from the sale of trading securities of $238,361. Cash flow from financing activities. Our financing activities provided cash of $320,959 during the three months ended March 31, 2012, primarily as a result of net borrowings under lines of credit agreements of $363,500, offset by payments on debt of $73,840. During the three months ended March 31, 2011, our financing activities provided cash of $1,322,741, primarily as a result of proceeds from the issuance of common stock of $300,000, proceeds from a common stock issuance obligation of $245,000, and net borrowings under lines of credit agreements of $844,963, offset by payments on debt of $48,503. ITEM 3.
Cash flow from operations. Net cash used in operating activities from continuing operations was $656,645 for the three months ended March 31, 2012, compared to $2,448,587 for the three months ended March 31, 2011. Net cash used in operating activities for the three months ended March 31, 2012 was derived from our net loss of $572,941, which included non-cash expenses of $41,260, including depreciation and amortization of $17,196 and amortization of guarantor fee of $24,064. Net cash used in operating activities for the three months ended March 31, 2011 includes a one-time lump sum payment of $1,250,000 for a lawsuit settlement. Our net loss from continuing operations of $1,463,711 for the three months ended March 31, 2011 included non-cash expenses of $523,655, including depreciation and amortization of $16,106 and share-based compensation of $507,549. Accounts receivable decreased by $173,345 during the three months ended March 31, 2012, compared to a decrease of $834,840 during the same period in 2011. NPI collected accounts receivable during the three months ended March 31, 2011, which resulted from significantly higher revenues during the three months ended December 31, 2010. Our inventories increased by $225,043 for the three months ended March 31, 2012, compared to an increase of $622,577 during the three months ended March 31, 2011. Accounts payable increased by $27,884 during the three months ended March 31, 2012, compared to a decrease of $1,953,603 during the same period in 2011. The decrease in accounts payable during the three months ended March 31, 2011 included the a one-time lump sum payment of $1,250,000 for a lawsuit settlement. The remainder of the decrease in accounts payable was primarily due to payments made in the three months ended March 31, 2011 for expenses incurred during the three months ended December 31, 2010 in support of higher revenues at NPI.
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