American Stone Reports Most Profitable Year in a Decade.AMHERST, Ohio Amherst is a city in Lorain County, Ohio, United States. The population was 11,797 at the 2000 census. History The town of Amherst was established by German immigrants in 1807. -- American Stone Industries, Inc. (Pink Sheets:AMST AMST Advanced Medium STOL Transport (US DoD) AMST Amst Systemtechnik GmbH (Austria) AMST Art Museum of South Texas (Corpus Christi, Texas) ), a supplier of building stone products, reported net income of $575,972, or $0.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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. "In 2005, we continued to increase the value that we provide to our customers with on-time delivery and quality product," said American Stone President and Chief Executive Officer Russell Ciphers, Sr. "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 Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , including the current portion, by more than $1.7 million, or 60%, over the 12 months ending December 31, 2005. As previously announced, American Stone executed an agreement on December 29, 2005, under which Trans European Securities LLP LLP - Lower Layer Protocol , a European investment consortium, will acquire approximately 900 acres of land owned by American Stone in Lorain County, Ohio Lorain County is a county located in the U.S. state of Ohio, and is considered to be a part of what is locally referred to as Greater Cleveland. As of the 2000 census, its population is 284,664. , for a cash payment of $15,250,000 at a closing anticipated in March 2006. The carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. 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 quarrying, open, or surface, excavation of rock used for various purposes, including construction, ornamentation, road building, and as an industrial raw material. Rock that has been quarried is commonly called stone. or processing operations. The Company will continue to own approximately 200 acres in Erie County, Ohio Erie County is a county located in the state of Ohio, United States. As of 2000, the population was 79,551. Its county seat is Sandusky6 and is named for the Erie (tribe), whose name was their word for "wildcat". , where its sole active quarry Quarry Cerynean stag captured by Hercules as third Labor. [Gk. and Rom. Myth.: Hall, 149] Cretan bull savage bull caught by Hercules as seventh Labor. [Gk. is located. Management is currently evaluating relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a 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 Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , American Stone Corporation. American Stone Corporation owns and operates Cleveland Quarries in Amherst, Ohio, one of the world's largest sandstone sandstone, sedimentary rock formed by the cementing together of grains of sand. The usual cementing material in sandstone is calcium carbonate, iron oxides, or silica, and the hardness of sandstone varies according to the character of the cementing material; quartz 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 Electronic Quotation Service An Internet-based quotation service operated by Pink Sheets LLC for brokers and market makers of over-the-counter equities and bonds. under the symbol AMST. This press release includes statements that may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 deregistration removal of right to practice by local registering body, usually as a disciplinary measure because of professional misconduct, possibly because of inability to perform because of psychiatric problem. 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
12 Months Ended
Operations: Dec. 31, 2005 Dec. 31, 2004
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(Audited) (Audited)
Sales $2,690,307 $2,399,098
Cost of goods sold 1,383,994 1,715,716
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Gross profit 1,306,313 683,382
Selling and administrative expenses 730,289 461,493
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Income from operations 576,024 221,889
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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)
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Income before provision for income taxes 575,972 152,935
Provision for income taxes - -
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Net income $575,972 $152,935
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Net income per common share:
Basic 0.27 0.08
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Diluted 0.27 0.07
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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
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(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
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Total assets $5,638,613 $4,755,266
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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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