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MOST PROFITABLE YEAR IN A DECADE REPORTED BY AMERICAN STONE

April, 06

Higher interest income and lower interest expense contributed to the 277% increase in net income.

A supplier of building stone products, American Stone Industries, Inc. (Pink Sheets: AMST - News), reported net income of $575,972, or $0.27 per diluted share, on sales of $2,690,307 for the 12 months ended December 31, 2005. For the same period of 2004, the Company reported net income of $152,935, or $.07 per diluted share, on sales of $2,399,098.

The 12% increase in sales in 2005 was due to higher demand resulting from improved customer service, marketing and pricing. Income from operations more than doubled as a result of the sales increase combined with higher productivity and tight cost controls. Higher interest income and lower interest expense contributed to the 277% increase in net income.

American Stone President and Chief Executive Officer Russell Ciphers, Sr said "In 2005, we continued to increase the value that we provide to our customers with on-time delivery and quality product," "We believe our policies, customer service and customer relations are paying off as evidenced by our results for 2005 - the most profitable year for American Stone in the last ten years."

He continued, "Looking forward to the next several years, we have significant opportunities to increase our sales and profits through increased productivity and stone yield, along with continued strict monetary controls."

The Company also substantially strengthened its balance sheet during the year, reducing its long-term debt, including the current portion, by more than $1.7 million, or 60%, over the 12 months ending December 31, 2005.

American Stone executed an agreement on December 29, 2005, As previously announced under which Trans European Securities LLP, a European investment consortium, will acquire approximately 900 acres of land owned by American Stone in Lorain County, Ohio, for a cash payment of $15,250,000 at a closing anticipated in March 2006. The carrying value of the assets to be sold is approximately $1,870,000 at December 31, 2005.

The Company anticipates that the sale of this portion of its land will not significantly impact any of its existing or planned stone quarrying or processing operations. The Company will continue to own approximately 200 acres in Erie County, Ohio, where its sole active quarry is located. Management is currently evaluating relocation options for its processing and administrative offices, which are located on the land included in the sale. The sale agreement calls for the Company to be off the property prior to the start of development.

American Stone Industries is a holding company that mines and sells stone predominantly for the building stone market through its wholly owned subsidiary, American Stone Corporation. American Stone Corporation owns and operates Cleveland Quarries in Amherst, Ohio, one of the world's largest sandstone quarries. As of December 31, 2005, the Company had 2,361,110 shares outstanding. The Company's stock is traded on the Pink Sheets Electronic Quotation Service under the symbol AMST.

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are made based on Management's expectations and beliefs concerning future events affecting the Company and are subject to risks and uncertainties that could cause actual results to differ materially from the expectations expressed in or implied by forward-looking statements. Such risks include, but are not limited to, trends within the building construction industry, actions by competitors, equipment and operational problems, the success of advertising and promotional efforts, changes in relationships with major customers or in the financial condition of those customers, and the adequacy of the Company's financial resources and the availability and terms of any additional capital. On July 27, 2005, the Company reported that the deregistration application it had earlier filed with the U.S. Securities and Exchange Commission had become effective and all reporting obligations of the Company under the federal securities laws had ended, including forms 10-KSB, 10-QSB and 8-K.

AMERICAN STONE INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
DECEMBER 31, 2005 AND 2004.

Operations
12 Months Ended
 
Dec. 31, 2005
Dec. 31, 2004
 
(Audited)
(Audited)
Sales
$2,690,307
$2,399,098
Cost of goods sold
1,383,994
1,715,716
Gross Profit

1,306,313

683,382
Selling and Administrative Expenses
730,289
461,493
Income from Operations

576,024

221,889
Other income (expense):
    Sale of option to sell land
125,000
125,000
    Interest income
31,637
3,343
    Interest expense
(156,689)
(197,297)
Income before provision for income taxes

575,972

152,935
Provision for income taxes
-
-
 

$575,972

$152,935
Net income per common share:
    Basic
0.27
0.08
    Diluted

0.27

0.07
Weighted average common shares
    Outstanding:
        Basic
2,103,139
1,978,390
        Diluted
2,107,246
2,045,952
 
Financial Condition
Dec. 31, 2005
Dec. 31, 2004
 
(Audited)
(Audited)
Current assets
$2,839,547
$1,591,391
Property, plant and equipment, net
2,746,582
3,112,147
Other assets
52,484
51,728
                                Total assets

$5,638,613

$4,755,266
Current liabilities
$296,220
$614,670
Long-term liabilities
1,119,608
2,555,592
Stockholders' equity
4,222,785
1,585,004
                                Total liabilities and
                                Stockholders' equity

$5,638,613

$4,755,266
 
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