SOURCE: Consolidated American Industries Corporation

July 08, 2005 14:39 ET

Consolidated American Industries Files Form 15c-211

Stating Revenues of $9.44 Million for First Half of 2005 - Average Weighted Earnings per Share of 20 Cents

TAMPA, FL -- (MARKET WIRE) -- July 8, 2005 -- Consolidated American Industries Corporation (OTC: CDMJ) announced filing of its 15c2-11. The 15c2-11 reflects gross revenues of $9.44 million for the first half of 2005 during the period ending June 30, 2005. This figure is already over 85% of last year's total revenue figures of $11 million for all of last year during the period ending December 31, 2004.

Gross margin was $3.34 million for the first half of 2005, as compared to $1.21 million for the year ending December 31, 2004. Gross margin percentage was also higher, climbing from 11.02% in 2004 to 35.3% for the six months ending June 30, 2005. Net income for this same period was $1.36 million, up $1.62 million from last year's net operating loss of $254,280.

Earlier in the year, the company re-acquired 2,590,000 shares of its own common stock. This transaction announced on April 11, 2005 reduced the total issued and outstanding Common Shares of the Company to 5,680,888. Total stockholder equity as of June 30, 2005 was $7.65 million, as opposed to $1.10 million on December 31, 2004. Earnings per share reached a weighted average of $.20.

On May 18, the company announced that its wholly owned subsidiary, Carbon Race Italia S.p.A., had acquired a 51% controlling interest in AEROprogetti.net. Due in part to this and a number of other acquisitions earlier in the year, the total assets of the company totaled $14.45 million as of June 30, 2005, as compared to total assets of $3.04 million as of December 31, 2004.

Based on continued performance at current levels, the company could end the 2005 year by nearly doubling the revenue of last year. At the current gross margin percentage, this could result in a gross margin of $6.68 million and a projected net income of approximately $2.7 million for the year.

Consolidated American Industries Corporation ("COAM"), with principal offices located in Tampa, Florida, is a public holding company involved in the manufacturing, natural resource and financial services business segments, including real estate lending, management and development activities. COAM's primary operating subsidiaries are: SIG Mortgage Company of Florida, Inc., a mortgage lender that provides financing for residential and commercial real estate transactions and buys and sells mortgages on the secondary market; Century Container Corporation, which specializes in corrugated, chipboard, and solid fiber containers, combined with other state of the art packaging materials, to provide total product protection during shipping, handling, and storage; SEH Technology, Inc., whose patented technology lends itself to all types of residential and commercial construction, using a patented innovative interlocking panel system; Carbon Race Italia S.p.A. which specializes in the manufacture and production of a variety of aeronautic, automotive, industrial and consumer products utilizing advanced compound materials; and SIG Wholesale Distribution, Inc., which is involved in the retail and wholesale distribution of numerous consumer and industrial products.

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.

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