2016 BPS Study

Cross Category Comparison Detailed Data for All Revenue Categories

PROFITABILITY

AGENCIES WITH REVENUES OF:

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

AVERAGE

Pre‐Tax Profit

23.5% 24.3% 14.1% 14.7% 26.9% 29.0% 24.5% 40.5% 44.1% 29.8%

20.8% 23.6% 13.5% 15.3% 23.1% 26.2% 24.5% 37.6% 34.8% 28.0%

21.8% 27.4% 13.4% 18.5% 24.6% 30.5% 24.5% 43.3% 33.8% 33.5%

17.6% 21.7%

17.5% 19.8% 10.3% 12.9% 20.1% 23.3% 24.5% 29.1% 21.8% 22.7%

15.1% 16.6%

Pro Forma Pre‐Tax Profit

Operating Profit 1

9.6%

7.6% 9.1%

Pro Forma Operating Profit

14.1% 19.4% 23.7% 24.5% 33.1% 23.7% 26.9%

EBITDA

18.5% 20.5%

Pro Forma EBITDA 2

TOP QUARTILE Pre‐Tax Profit

26.5% 26.7% 20.3% 20.2%

Pro Forma Pre‐Tax Profit

Operating Profit 1

Pro Forma Operating Profit

Pro Forma EBITDA 2

44.1%

39.6%

45.9%

34.9%

32.4%

29.9%

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.  

Pro Forma Operating Profit

33.5%

29.8%

28.0%

26.9%

22.7%

20.2%

18.5%

15.3%

14.7%

14.1%

12.9%

9.1%

< $1.25M

$1.25M‐ $2.5M

$2.5M‐ $5.0M

$5.0M‐ $10.0M

$10.0M‐ $25.0M

> $25.0M

Average Top Quartile

Pro Forma EBITDA

45.9%

44.1%

39.6%

34.9%

32.4%

30.5%

29.9%

29.0%

26.2%

23.7%

23.3%

20.5%

< $1.25M

$1.25M‐ $2.5M

$2.5M‐ $5.0M

$5.0M‐ $10.0M

$10.0M‐ $25.0M

> $25.0M

Average Top Quartile

62