Axiom Management, Inc. (AXMA.PK) is a full-service staff recruitment, fulfillment, and human resources management company in existence since 2003. Through Coastal Employment, the company’s wholly-owned subsidiary, Axiom Management provides services to clerical and technical companies, logistics providers, warehouses and light manufacturing businesses. Through another established subsidiary, Strategic Insurance Group (SIG), Axiom also offers risk management services to address rising workers compensation costs and related expenses.
The Company is recognized as a strong authority on safety, risk management and workplace compliance. Axiom Management’s regulation and strong following of (OSHA) requirements make them a key differentiator with a competitive advantage in the staffing market. The Company is also able to market its staffing and risk management services either separately or together, which causes them to stand out in the business.
In Axiom’s first full year of operations, they generated revenues of $9.9 million and earned a modest profit. The Company began trading under the symbol AXMA in August of 2007. Axiom increased revenues to $12 million in 2005, generated positive EBITDA (earnings before interest, taxes, depreciation and amortization) in both 2005 and 2006, and has increased 2007 revenues to an $18.4 million annualized run rate.
Let us hear your thoughts: Axiom Management, Inc. Message Board
Axiom Management is a full-service staff recruitment, fulfillment, and human resources management company. The company provides services to logistics providers, warehouses, clerical and technical companies, and light manufacturing businesses.
Axiom is compliant with all of OSHA requirements which sets the company apart from much of the competition and provides it with recognized authority. The company has also distinct itself from the rest of the market by being able to market its staffing and risk management services as a complete package or separately.
Axiom’s management team has the experience necessary to guide the company to greater success. Peter Morals, president of Axiom, has served as a COO of a regional staffing where he helped revenues grow from $11 million to $55 million in three years. The CEO, James Clapp has 24 years experience in the warehouse, transportation and logistics industries and has served as the COO of a national logistics company.
The company plans to grow by strengthening the business of its Strategic Insurance Group subsidiary, expanding its core staffing operations, and by acquiring profitable businesses. Axiom has identified several acquisition candidates that represent over $67.5 million in annual revenue and has already signed Letters of Intent to acquire a multi-location staffing company in upstate New York.
Let us hear your thoughts below:
Axiom Management is a full-service staff recruitment, fulfillment, and human resources management company. Through its wholly-owned subsidiary, Coastal Employment, the Company provides services to clerical and technical companies, logistics providers, warehouses and light manufacturing businesses. Axiom also offers risk management services to address rising workers compensation costs and related expenses through its other subsidiary, Strategic Insurance Group (SIG).
The American Staffing Association estimates that the temporary staffing industry grew from a $64 billion industry in 2003 to $82 billion in 2005 and $87 billion in 2007. Staffing services are expected to be ranked among the highest industry growth rates over the next 25 years. Unlike other businesses, staffing services is relatively immune to economic cycles. The staffing industry is highly fragmented, consisting of a few large players and thousands of small companies generating between $5 million to $20 million in annualized revenues. The fragmented nature of the industry creates favorable acquisition opportunities for consolidators such as Axiom.
The analyst who completed the report concluded, “In all, Axiom has identified acquisition candidates that cumulative represent more than $67.5 million in annualized revenues. If the Company closes pending acquisitions and secures the additional $10 million in financing, we expect Axiom’s revenue run rate to quickly rise from an $18 million range this year to a $65 million range next year. We are initiating coverage of Axiom Staff Management with a Speculative Buy rating and a $3.48 price target, based on a 13 times multiple of projected 2008 net income.
Let us hear your thoughts below: