25-27BPStudyCovers

PROFITABILITY

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

21.0% 21.4% 23.9% 25.1%

13.6% 15.9% 20.0% 23.2%

8.4%

Pre-Tax Profit

27.2% 28.8% 28.3% 30.7%

20.8% 21.2% 26.4% 26.9%

25.7% 26.7% 28.3% 29.9%

23.3% 24.9% 24.6% 27.0%

Pro Forma Pre-Tax Profit

10.8%

EBITDA

24.0% 26.9%

Pro Forma EBITDA 1

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

29.3% 28.2% 31.2% 32.3%

19.9% 20.4% 26.6% 28.0%

21.8% 20.7% 30.4% 31.0%

Pre-Tax Profit

40.7% 43.4% 39.8% 42.5%

31.4% 31.4% 36.5% 36.5%

33.2% 34.6% 35.4% 36.0%

34.4% 36.1% 36.2% 37.0%

Pro Forma Pre-Tax Profit

EBITDA

Pro Forma EBITDA 1

1 Pro Forma EBITDA excludes all administrative expenses (depreciation, amortization of intangibles, officer life, interest and other).

Pre-Tax Profit

40.7%

34.4%

33.2%

31.4%

29.3%

27.2%

25.7%

23.3%

21.8%

21.0%

20.8%

19.9%

13.6%

8.4%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Pro Forma Pre-Tax Profit

43.4%

36.1%

34.6%

31.4%

28.8%

28.2%

26.7%

24.9%

21.4%

21.2%

20.7%

20.4%

15.9%

10.8%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Cross Category Comparison

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