Here is the recap of the 5/4/98 teleconference of FiraMada with Arif Adams and Randy Malinoff.
A CFO has been hired from a "Big Six" company with KPMG Peat Marwick and Deloitte & Touche experience. He will start June 11th. His name and biography will be released on that date. He has requested that his name not be released until that date because he is currently on an assignment.
FAMH has hired a prominent Los Angeles SEC law firm to begin the process for FAMH to become a fully reporting company. This process takes a minimum of 120 days. As part of the agreement with the law firm, the name of the law firm will not be released until the completion of the process. When the process is completed it will become part of the public record. The law firm felt it is not necessary to release their name and they did not want field many, many telephone calls.
FiraMada is now known coast to coast. Myriad's name has been changed to FiraMada, PEO. PEO stands for Professional Employers Organization.
FAMH has implemented new expense and cost control guidelines throughout the entire company. Malinoff's style of management is one to "always to look at operating cost and consolidate where economically feasible". He is self-professed to be conservative by nature.
Ted Colo, who was President of Myriad, has been assigned to VP of National Accounts. Ted's responsibility is to sell employee leasing to the major franchises and corporate accounts He has an incredible track record in franchise deals. He alone was responsible for $20mn in sales for Myriad. His background is in employee leasing with over 10 years experience (8 years with Myriad).
Mike Griffiths has been promoted to Western Regional Sales Manager He has over 18 years experience in employee leasing (4 years with Myriad). He has been responsible for over $10mn in sales for Myriad.
The $12mn line of credit with Bristol Asset Management will not be used and cannot be used (except under certain circumstances) until FAMH is a fully reporting company. This is per one of the points in the agreement. There are certain circumstances in which the line of credit can be accessed if FAMH requires it. The line of credit has not, at this time, been accessed and FAMH does not intend to, until FAMH is a fully reporting company (if at all). FAMH plans to operate on its positive cashflow. There has been no need to use the letter of credit.
Arif and Randy will be taping the "Investing in America" show on June 11th. Michael Jackson will interview Arif and Randy. It is an investment talk show that primarily showcases companies.
FAMH is being re-audited by Steve Corso's firm because Corso's firm could not vouch for the prior accounting firm's numbers. Accounting firms that do not know each other will not vouch for another's audited work. This audit commenced on June 1st. Steve Corso believes the audit will be completed in 4 weeks. On May 29th, Steve Corso's firm completed the evaluation and audit of the asset acquisition of Myriad. The final report should be complete in three weeks. Steve Corso's firm has been hired to represent all of FiraMada including FiraMada, PEO. It has been determined that Myriad will undergo a full audit for 1997 commencing on June 8th. This is being done in compliance with SEC regulations and as part of the due diligence to become fully reporting. FAMH wants to get a 2nd opinion on the numbers. FAMH was given audit numbers for Myriad that was performed by Myriad's former management as well as FAMH's completed audit of the asset acquisition of Myriad. It is expected to have combined Financials for FAMH produced by Corso's firm and made public to investors and others.
Currently, several options are being looked at, under advisement with FAMH's SEC attorney, regarding the outstanding shares issue. According to Arif, FAMH should come up with some strong answers by the next teleconference to be held on June 18th.
According to Arif, FiraMada is currently profitable and is generating positive cashflow. The line of credit has not been touched and they are using existing cashflow to conduct business. The company is looking to cut operating and other costs.
Arif is currently reviewing the Morton Downey Jr. Show situation and contract. A specialized entertainment attorney is already reviewing the contract. Arif has a meeting with the attorney next week to review the contract. At the next teleconference, Arif should be answer more questions regarding this.
According to Randy, with the prospective deals that are on the table, not yet signed (waiting for prospect's due diligence), FAMH sees a minimum of $30 to $40mn in additional sale in the next 6 months. In the next 2 weeks, Randy and the sales team will go over the revenue numbers and what they have to do to achieve it. When the new CFO comes on board, new pricing systems, new pro forma systems and new procedures will be installed/implemented to tighten up the pricing strategies. Eight small leasing deals were closed last week (each are 9-15 person operations). Ted Colo will lead the larger, prospective, leasing deals (300-500 person operations--franchise and corporate accounts). They are more difficult to close due to the tough competition. The sales force will be built to go after the smaller deals (10-20 people) because they are quick and easy to close. These leasing contracts are the "gravy" according to Randy. Per Arif, volume on the temporary side of the business has been increasing the past few weeks. FiraMada, before the purchase of Myriad, was only in temporary clerical staffing and IT staffing.
The website; firamadainc.com is up. The problem is with the carrier and the DSL line. There is a minor hitch where the website cannot be accessed. It should be available in a few days at the most. Elaine Zei is currently working on this problem. Biographies of key management will be on the website. Any communication received via the Internet and not through the website is unauthorized and cannot be relied upon by anyone.
A reminder:
There will be no conference next week because Arif and Randy will be taping the "Investing In America" program. The next conference will take place two weeks from today on June 18th.
Best Regards, |
