2016 BPS Study

Cross Category Comparison Detailed Data for All Revenue Categories

EXPENSES (expressed as a percentage of pro forma net revenues) 

AGENCIES WITH REVENUES OF:

<$1.25M $1.25‐$2.5M $2.5‐$5M $5‐$10M $10‐$25M >$25M

Compensation Payroll Employees

39.7%

43.6%

42.5%

48.7%

52.9%

51.6%

"Non‐employees" (1099  Prods/outsourced)

3.3%

3.6%

2.1%

2.5%

1.2%

3.6%

Total Payroll Benefits Payroll Taxes Retirement

43.0%

47.3%

44.6%

51.2%

54.1%

55.2%

3.2% 1.4% 3.1% 0.5% 8.1% 0.7% 1.0% 2.3% 4.1% 4.8% 0.8% 2.5% 1.1% 0.4% 1.1% 1.0% 0.7% 1.7% 0.9% 0.2% 0.2% 0.3% 0.4% 1.7% 1.4% 0.2% 1.1% 0.3% 4.6%

3.4% 1.6% 3.1% 0.1% 8.2% 1.2% 0.8% 1.7% 3.7% 4.8% 0.5% 2.6% 0.8% 0.3% 0.8% 0.8% 0.4% 1.4% 0.9% 0.1% 0.3% 0.3% 0.5% 1.0% 0.8% 0.2% 0.5% 0.1% 2.7%

3.1% 2.0% 3.5% 0.1% 8.7% 1.0% 0.7% 1.6% 3.2% 4.0% 0.2% 2.3% 0.6% 0.4% 1.0% 0.7% 0.3% 1.3% 0.7% 0.1% 0.7% 0.4% 0.3% 1.1% 1.2% 0.1% 0.5% 0.1% 3.1%

3.2% 1.4% 3.1% 0.3% 7.9% 1.2% 0.8% 1.5% 3.5% 3.9% 0.4% 2.2% 0.7% 0.3% 0.7% 0.8% 0.3% 1.4% 1.0% 0.1% 1.2% 0.4% 0.2% 0.6% 0.7% 0.2% 0.4% 0.1% 2.0%

3.2% 1.5% 3.3% 0.2% 8.1% 1.4% 0.6% 1.1% 3.1% 3.3% 0.4% 1.9% 0.5% 0.2% 0.6% 0.9% 0.3% 1.1% 0.9% 0.1% 0.9% 0.4% 0.2% 0.8% 1.4% 0.2% 0.4% 0.7% 3.5%

2.9% 1.8% 3.3% 0.3% 8.4% 2.3% 0.6% 1.0% 3.9% 3.5% 0.4% 1.6% 0.5% 0.2% 0.5% 0.6% 0.4% 1.0% 1.1% 0.1% 1.3% 0.4% 0.3% 1.1% 1.8% 0.1% 0.5% 0.4% 4.0%

Insurance

Other

Total Benefits

Total Compensation

51.1%

55.5%

53.2%

59.1%

62.2%

63.6%

Selling Travel and Ent./Conventions

Automobile Expense Advertising/Promotions

Total Selling

Operating Occupancy Expenses 1

Office Equipment Expenses

IT Expenses Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

Miscellaneous Total Operating Administrative Depreciation

15.9%

14.6%

13.1%

13.7%

11.4%

11.9%

Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

TOTAL EXPENSES

75.7% 24.3% 29.0%

76.4% 23.6% 26.2%

72.6% 27.4% 30.5%

78.3% 21.7% 23.7%

80.2% 19.8% 23.3%

83.4% 16.6% 20.5%

PRO FORMA PRE‐TAX PROFIT/LOSS

PRO FORMA EBITDA 2

1  For firms that own their building and reported a much lower than peer expense load, we have normalized their occupancy expense.  2 Pro Forma EBITDA reflects normalized income and expenses after discretionary owner expenses are eliminated.  Also excludes all administrative expenses.

61