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This Month's Tiny Gems - September 2009American International Industries, Inc. (NASDAQ: AMIN)
Maxygen, Inc. (NASDAQ: MAXY)
Five Star Quality Care, Inc. (AMEX: FVE)
American International Industries, Inc. (NASDAQ: AMIN)
American International Industries, Inc. (NASDAQ: AMIN) is a diversified holding company that utilizes a business model similar to General Electric, Tyco International, and Berkshire Hathaway. With holdings in Industry, Finance, Real Estate, and Oil & Gas, the focus of the company is to develop holdings in various industries by acquiring existing companies, applying the financial resources and management expertise needed to foster growth, and then leading the acquired businesses to profitability.
American International serves its subsidiaries as a financial and professional management partner to improve access to capital, achieve economies of scale by consolidating administrative functions, and provide the financial and management expertise of corporate personnel. The company continually works with the management of each subsidiary to improve revenues, operations and profitability.
The company’s management team has accumulated an incredible amount of experience in the various industries its portfolio companies operate in. American International’s portfolio currently consists of Northeastern Plastics, Inc., a supplier of automotive after-market products and consumer durable goods products to retailers and wholesalers; Delta Seaboard Well Service, Inc., an onshore rig-based well-servicing contracting company; and Shumate Energy Technologies, Inc., a contract machining and manufacturing company focused on the energy field services market.
For the six month period ended June 30, 2009, the company announced revenues of $12.4 million compared to $10,586,195 for the same period in the prior year, representing an increase of $1,840,934, or 17%. EBITDA also improved significantly from a loss of $2,988,246, or $0.42 per share, to income of $110,953, or $0.01 per share. As of last report, American International had total assets of $33.7 million and total liabilities of $17.2 million.
Maxygen, Inc. (NASDAQ: MAXY)
Maxygen, Inc. (NASDAQ: MAXY) is committed to developing superior versions of existing major protein pharmaceuticals. The company’s lead product candidates meet the demands of substantial market opportunities such as cancer and autoimmune diseases. Well positioned for growth, Maxygen has a number of promising product candidates and the financial strength required to drive them through clinical development.
Maxygen currently has three protein pharmaceuticals advancing towards clinical development. Behind its product candidates, the company has developed a broad pipeline of other human therapeutics products that are in earlier stages of development. In addition to these, Maxygen also believes its proprietary technologies could transform the design and development of vaccines.
The company’s MAXY-G34 product candidate was designed to be an improved next-generation granulocyte colony stimulating factor for the treatment of neutropenia, a severe decrease in neutrophil cell counts in the blood. MAXY-G34 may help the body make white blood cells more quickly than the products currently approved, which could make it an attractive alternative for both doctors and patients. With worldwide annual sales of G-CSF products totaling approximately $4.8 billion in 2007, there is much potential for this candidate.
Strategic collaborations are an important part of the company’s business strategy. Maxygen actively seeks out-licensing and other agreements with pharmaceutical and biotechnology companies that retain commercial development expertise. In exchange for licenses to protein therapeutics or other specific applications of its proprietary products, Maxygen usually requests up-front fees, collaborative research funding, milestone payments and royalties on product sales.
Five Star Quality Care, Inc. (AMEX: FVE)
Five Star Quality Care, Inc. (AMEX: FVE) is a national healthcare and senior living services provider focused on building a solid financial base by carefully managing assets, resulting in a better bottom-line and enhanced resident care. With more than 21,000 employees in 230 locations nationwide, the company operates through three major divisions: Five Star Senior Living, Five Star Rehabilitation Services, and Five Star Pharmacy Services.
The Five Star Senior Living division includes more than 200 Independent Living and Assisted Living facilities, Skilled Health Care facilities, and Continuing Care Retirement Communities. Through its Rehabilitation Services division, Five Star operates rehabilitation hospitals and outpatient health rehabilitation clinics. Through its Pharmacy Services division, Five Star operates institutional pharmacies across the country.
There is much opportunity for the company to grow as the aging U.S. population increases demand for independent living properties, assisted living communities, skilled nursing facilities, pharmacies and rehabilitation services. In addition to capitalizing on this industry growth, the company aims to improve profitability of its existing operations by increasing revenues and improving margins. Five Star is also utilizing a proven acquisition strategy for growth and continues to seek additional areas of expansion.
For the second quarter ended June 30, 2009, the company reported revenues of $297.1 million, up 9.9% from the $270.5 million reported for the same period last year. Net income more than doubled from $3.5 million to $8.6 million, while EBITDA for the quarter was $14.8 million compared to EBITDA of $8.7 million for the same period last year. With a well executed growth strategy and much potential for further growth, Five Star is one of our favorite Tiny Gems.