(Updated 1-30-98) FAMH GENERAL "OVERVIEW" INFORMATION:
COMPANY:
Firamada
40 Wall Street, 32nd Floor
New York, NY 10005
Phone number: (212) 425-2168 or Toll Free 1-888-831-2442
CEO: Arif Adam
President: Ira A Monas
PR FIRM: Preferred Financial Marketing 1-310-789-1132
AUDITING FIRM: Marcum and Kliegman mkllp.com
SEC FILINGS: FAMH begins as a reporting company effective Jan 1, 1998. Their first Audited Financial Statement is scheduled to be done by about Feb 1, 1998. The 10-K for 1997 is supposed to be filed with the SEC as soon as possible.
PR Newswire INFO PAGE: prnewswire.com
(This includes recent Press Releases)
E-MAIL: irafm@aol.com
TOTAL SHARES AUTHORIZED: 100 Million
TOTAL SHARES OUTSTANDING: Apx 28 Million
FLOAT: Apx 10 Million
INSIDER HOLDINGS: Apx 17.5 Million
SUMMARY of FINANCIAL STATEMENT: (Unaudited. Thru 6-30-97)
Message 2783503
(A detailed copy of this financial statement is available from the company)
Audited Financials are expected in early February.
1997 Revenues: (Estimated) $8.5 Million
1997 EPS: Firamada President expects 10-11 cents (from Conference Call on 1-22-98)
1998 Revenues Projection: $75 - 80 Million
Projections are based on revenues and growth from existing offices plus Myriad Employment ($60 Million), 4-6 additional offices (either acquisitions or new offices planned for 1998). Firamada expects a gross margin of 26-30% which exceeds the industry average of 19-24%. In the conference call of 1-29-98, Firamada President indicated that we should see at least $60 Million just from the existing offices (including Myriad) without accounting for growth of those offices.
GENERAL BUSINESS INFO:
FAMH is a temporary staffing company. They currently have 6 offices (not including the corporate office at 40 Wall Street, NY, NY).
Since several of the offices have been acquired, you may find them under the following names: Encompass Staffing of Success Staffing. I don't know the name of the small NY company acquired on or about 1-28-98.
FAMH just went public last spring (1997), so this is their first year as a public company.
FAMH says their profits are expected to be slightly higher than the industry average because they are moving away from the low margin business (low range bulk temps) and focusing, instead, on the high profit end of the business (upscale permanent placements).
Firamada's finance subsidiary created in September showed a net profit of $73,645.25, in its first month of operation.
EXISTING OFFICES:
Encompass Staffing
67 Wall Street, Suite 2411
New York, NY 10005
(212) 269-4777
Encompass Staffing
2730 North Stemmons Freeway
West Tower Suite 1210
Dallas, TX 75207-2256
(214) 688-0711
(888) 523-9962
Encompass Staffing (New office opened in November, 1997)
10850 Richmond Ave
Houston, TX 77042
(713) 334-5665
Success Staffing
602 W 6th St., Suite D
Rolla, MO 65401
(573) 368-5782
(888) 368-5782
Success Staffing
3020 E Camelback RD, Third Floor
Phoenix, AZ 86016
(602) 955-6657
(888) 956-6657
??? (Small NY Acquisition) ???
Acquired on or about 1-28-98
Still researching address
PLANNED ADDITIONAL OFFICES (New & Acquisitions):
FAMH is completing an acquisition of Myriad Employment, a private employee leasing company that operates in California and Utah. The company says Myriad did approximately $45-50 Million in revenue for 1997. Of this amount, about $38 Million is in long term contracts.
Myriad was acquired for 2.5MM shares of stock, $350K Cash, and assumption of approximately $1.5MM in debt. The 2.5MM shares are restricted, some for 12 months, some 18 months, and some
24 months.
To facilitate growth by acquisition, Firamada has obtained a $25 Million line of credit from a European firm. I believe FAMH can draw down against the line of credit, but the amount of each draw down is tied to the trading volume for a given period of time. I believe any shares involved are restricted for at least a year. FAMH President has described the agreement as being very "shareholder firendly and management friendly."
LONG ISLAND, NY - New office planned to open in February, 1998.
MIAMI - New office planned to open in February, 1998.
CALIFORNIA - Acquisition of another company (in addition to Myriad) is in process. This acquisition is waiting on a probate court hearing in February.
FUTURE LOCATIONS CURRENTLY UNDER CONSIDERATION:
California, Utah, Colorado, North Carolina, Las Vegas, Pacific Northwest
NASDAQ or AMEX LISTING APPLICATION:
FAMH says they currently meet ALL the requirements for listed as a NASDAQ Small Cap company with the exception of share price. FAMH is considering either NASDAQ or AMEX for listing. The application process is supposed to begin sometime in February, 1998. The process is supposed to take 90 to 120 days.
OTHER INFO to Consider:
1) Temporary staffing is a hot industry. It is also a highly profitable industry.
2) Firamada is negotiating a settlement of a disputed tax lien in the state of Texas.
CLIENTS:
Some of their recent contracts have included Colonia Insurance Company, Coca-Cola Merchandising - Phoenix, AIG Insurance, Republic National Bank, Tokyo Marine, Arizona State University and Arizona Cardinals Football Team (thru Finehost), The Phoenix Suns Basketball Team and The Phoenix Coyotes Hockey Team (thru Restrua), Auto Zone, BF Goodrich Tire Company, Goodyear Tire & Rubber, Hilton Hotels, 1-800-FLOWERS, and General Electric.
FAMH IS DRAWING ATTENTION:
ED TAXIN'S FINANCIAL HOUR has picked FAMH (Firamada) as one of the "Top-10 Stocks to Watch in 1998." "Ed Taxin's Financial Hour" is on 32 radio stations across the country. The company said this was NOT a paid promotion.
Kostech Research has rated the company a buy up to $1.25
INVESTOR RELATIONS:
FAMH "Investor Awareness" promotions will be carried on 85 cable TV stations, in-flight talk on United Airlines & TWA, and the Morton Downey Jr Invest America TV Show begining in January-February 1998. These ARE paid promotional programs.
Conference calls to Brokers, Fund Managers, and Investors will be conducted most Thursday afternoons in January & February at 4:15 PM (EDT) at 1-800-860-3035. The "replay" of this call can be heard 24 hrs a day for 3 days by calling 1-800-567-1533.
Firamada has also publicized recent press releases in INVESTOR'S BUSINESS DAILY (1-2-98 issue) and BARRON'S (1-12-98 issue).
INDUSTRY POINTS FROM EARLIER POSTS:
"Contract Employee is crucial in all business today as I see many firms and the Government using staffing for many more projects as they are started." - Jim, post #70
"...executive placement which is REALLY profitable." - John, post #72
"Labor shortages will remain a big headache, with many managers particularly worried about the lack of qualified help. More firms will hire temps and lease workers,... a booming business. Let's managers concentrate on their core business while outside outfits handle the hiring, firing, payroll, insurance and job training chores."
The Kiplinger Washington Letter ---- Nov 14, 1997. - post #228
"I saw a news show on TV a month or so ago that indicated that the US work force is starting to change drastically. I don't remember the numbers exactly, but it was an extremely high percentage (like 50% to 70% or so) of the working force over the course of the next 5 to 10 years would not be working regular full time jobs. They would be working either for themselves or working temporary jobs. People are wanting to become more flexible in their employment." - Cheryl OD, post #235
INDUSTRY INFO in General:
Statistics from the National Association of Temporary and Staffing Services indicate that the temporary employment business is one of the three fastest growing industries in the United States.
FAMH vs. INDUSTRY ANALYSIS (SI post #903 by Dave)
207.183.153.23
INDUSTRY COMPARISON: Message 3043512
Post #1441 by Keiko: Message 3182596
CURRENT QUOTE:
cbs.marketwatch.com
CHART:
tscn.com
HISTORICAL PRICING: (Type "FAMH" in the Symbol box)
tradepbs.com
INSIDER BUYING / SELLING REPORTS: insidertrader.com
I am NOT associated with FAMH in any way. I am an individual investor with my own opinions. Everyone is urged to do their own research before investing in anything.
Best wishes,
Brad |
