2000 Best Practices Study

B. Growth in Profitability (% change from prior year)

Average +25% Profit +25% Growth

Net Revenues (Total) Compensation Expense Selling Expense Operating Expense Administrative Expense

7.2% 7.9% 5.6% 3.7%

13.7% 15.7% 24.3% 2.7% 39.2% 11.6%

21.1% 20.4% 19.1% 8.2% -6.4% 48.4% 29.8%

-0.3% -13.5%

Pre-Tax Profit

20.5% 17.0%

Operating Pre-tax Profit

Growth in Pre-Tax Profit

Growth in Net Revenues

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0% 5.0%

0.0%

Average

+25% Profit

+25% Growth

Average

+25% Profit

+25% Growth

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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