Axiom has achieved profitable revenue growth in less than two full years of operation while reaching over $9.9M in sales for the end of calendar year 2004; revenues of nearly $12M were realized in 2005 on a profitable adjusted EBITDA
basis with projected revenues of $7.4 in 2007.
KEY INVESTMENT HIGHLIGHTS
•Achieved profitable revenue growth in less than two years
•Strong revenue growth since inception with projected revenues of $7.4M in
2007
•Recently signed a new contract with a client that has added approximately
$7.0M in additional revenues / nearly $1.0M in pre-tax earnings per year
•Ability to grow rapidly through acquisition
•Favorable industry dynamics for consolidation
•Significant market opportunity exists
•Comprehensive set of services
•Strong and experienced management team
•Public companies in the staffing and outsourcing services industry, such as Gevity HR (GVHR), Manpower (MAN), are trading in the 25 times earnings range
GROWTH STRATEGY
Organic Growth - Axiom differs from other temporary agencies due to its value-added capabilities and services directed at loss prevention and overall cost reductions for its clients. Management believes that these services will continue to evolve as the Company grows. Axiom plans to sell additional value-added services to its existing customer base that are not currently using its full service offering. It is expected that by cross-selling new services to these clients and securing additional clients as well, the Company will continue to grow rapidly on an organic basis as it has done historically.
Geographic Expansion - The Company currently operates out of two offices located in Long Beach and Pico Rivera,
California. Future plans for geographic expansion include opening new offices in the City of Industry, California; Las Vegas,Nevada; Philadelphia, Pennsylvania; and Seattle, Washington. Opportunities have been identified and expansion plans into new locations are expected to occur in the near term. Axiom is also in the process of expanding into Florida with the acquisition of a full-service PEO (payroll/workers comp.) ASO (payroll) company, whose service offerings are highly complimentary to Axiom’s own and will present additional sales opportunities. As the Company ventures into different geographic markets, the extended
range of services and ability to create a physical presence in each area will be important in order to rapidly expand its business on a national basis.
Targeted Acquisitions - The staffing and outsourced services industry is highly fragmented and consists of numerous companies doing $5M to $30M in revenues. A majority of these target companies are privately held and have limited access to capital in order to grow their business. Axiom has signed an exclusive LOI and deposited $50,000.00 nonrefundable to acquire a leading PEO/ASO company located in Florida; the target has approximately $30M in annual revenues and $1.0M in adjusted EBITDA.
Axiom also has signed an exclusive LOI to acquire a leading staffing company located in the Northeast; the target has approximately $17M in annual revenues and $1.0M in adjusted EBITDA. The key growth of the Company going forward is expected to be through an aggressive acquisition strategy
that complements Axiom’s current platform.
Diversification - The Company plans to grow through diversification by targeting new employee markets such as high-end executive placement services, accounting/finance, and legal with an expanded product offering facilitated by the Florida acquisition. These market segments tend to have
above average demand for skilled employees, high average salaries, and strong gross margins for the staffing company. Management plans to OTC BB: EENR EXPERIENCED MANAGEMENT TEAM
Peter Morales has been the President of the Company since 2003 and is regarded as a leading professional in the safety, risk management, human resources and staffing fields. He has been successful in providing a number of companies with the tools in which to lower their employee incident rates.
James T. Clapp is the CEO of the Company and has over 24 years of experience in the warehouse, transportation, and logistics industries. He started his career by working in the field by organizing warehouse inventories, loading/unloading trailers, and eventually became Chief Operating Officer for a major national logistics company.
Gani Gjonbalaj is the Vice President of Axiom Management, Inc. His previous experience included various senior positions in the logistics and distribution industry. He graduated from St. John’s University with a Bachelor of Science and has over 17 years of experience in business development and logistics. AXMA aggressively pursue this growth opportunity in an effort to continually improve upon its current margins.
TARGET MARKETS
The markets currently targeted by the Company can be broken down into the following three segments:
Clerical and Technical Market - Clerical and other applicants with a special skill set such as engineers, information technology personnel, executive management, safety/risk management personnel, and others; tends to beone of the most profitable segments of the market due to lower direct costs such as workers compensation and higher average employee salaries; the typical gross margin for Axiom is in the 50% plus range over its direct employee cost. Logistics and Light Manufacturing Market - The Company targets warehouse and distribution, logistics, recycling, transportation, and other light industrial industries;this segment is comprised of skilled labor and certain workers are able to realize above-average salary levels; Axiom typically realizes a gross margin of 40-45% over its direct employee cost for this target market.
Risk Management Market - The Company’s Specialty Insurance Group secures business friendly, cost effective, workers'
compensation insurance coverage in conjunction with Axiom’s safety/risk management services for a number of industries; these value added services enable the Company to be a full solutions provider to their clients and provide greater than 50% average gross margins.
