Business services, misc. [ ] Sector: Services

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[128-389] Sector: Services Business services, misc.

1 [ ] Sector: Services Business services, misc. Firms Analyzed: 153,600 Contents P1: 5- year Income- Expense statement- dollar- based P2: 5- year Income- Expense statement- percentage- based P3: 5- year Annual Cash Flow P4: 5- year Monthly Cash Flow P5: Financial Ratios - Cash Flow- Solvency P6: Financial Ratios - Profitability P7: Financial Ratios - Efficiency P9: About the Data The Sole Proprietor/ Startup Profit & Loss series mirrors the more streamlined financial reports of many startup firms and sole proprietorships. Startups which are not structured as Sole Proprietorships, and SPs desiring a corporate- style balance sheet analysis, can utilize the small business and lower sales class versions of the Industrial Financial Profile series. Dollar- based sales and other dollar- based data in this report reflect averages for sales of the industry segment, not total industry- wide averages. As a result, sales levels may vary from year to year, depending on the mix of firms that a relisted as startups (single site firms with one year or less of operation) or sole proprietorships. Because most startups are also sole proprietorships, the sole proprietor reporting format is used for our startup financial series as well. Column labels reflect full year data at the end of the quarter indicated. Annual Average Revenue, Income & Expense ($) Revenue 208, , , , ,934 Inventory (% Revenue) 2,402 2,018 2,012 2,073 2,266 Cost of Sales 55,466 52,123 52,867 49,517 50,986 COS- Labor Portion 12,440 11,914 10,143 8,874 9,440 Gross Profit 153, , , , ,949 Salary- Wages 16,211 11,257 10,984 10,835 13,433 Contract Labor- Commissions 2,653 2,185 5,749 6,587 6,799 Rent 5,285 4,078 3,511 3,365 3,576 Advertising 2,841 1,769 1,704 1,662 1,788 Benefits- Pension Insurance (non- health) 4,011 3,080 3,121 3,160 3,223 Taxes paid 2,737 2,081 2,320 2,093 2,100 Other SG&A Exp. 43,391 44,112 39,810 39,277 45,080 EBITDA 75,773 86,892 84,853 88,199 80,389 Interest paid 1,922 1, Home Office Expense 1,901 1,519 1,458 1,272 1,726 Amort. & Dep. 9,443 6,305 7,104 6,341 6,342 Total Expenses 90,939 77,925 77,114 75,988 85,565 Net Profit 62,507 78,028 75,326 79,704 71,385 Total Direct Labor & NP 93, , , , ,057 1

2 Annual Average Revenue, Income & Expense (%) Revenue 100.0% 100.0% 100.0% 100.0% 100.0% Inventory (% Revenue) 1.15% 0.97% 0.98% 1.01% 1.09% Cost of Sales 26.55% 25.05% 25.75% 24.13% 24.52% COS- Labor Portion 5.95% 5.73% 4.94% 4.32% 4.54% Gross Profit 73.45% 74.95% 74.25% 75.87% 75.48% Salary- Wages 7.76% 5.41% 5.35% 5.28% 6.46% Contract Labor- Commissions 1.27% 1.05% 2.80% 3.21% 3.27% Rent 2.53% 1.96% 1.71% 1.64% 1.72% Advertising 1.36% 0.85% 0.83% 0.81% 0.86% Benefits- Pension 0.26% 0.24% 0.19% 0.25% 0.27% Insurance (non- health) 1.92% 1.48% 1.52% 1.54% 1.55% Taxes paid 1.31% 1.00% 1.13% 1.02% 1.01% Other SG&A Exp % 21.20% 19.39% 19.14% 21.68% EBITDA 36.27% 41.76% 41.33% 42.98% 38.66% Interest paid 0.92% 0.50% 0.47% 0.43% 0.45% Home Office Expense 0.91% 0.73% 0.71% 0.62% 0.83% Amort. & Dep. 4.52% 3.03% 3.46% 3.09% 3.05% Total Expenses 43.53% 37.45% 37.56% 37.03% 41.15% Net Profit 29.92% 37.50% 36.69% 38.84% 34.33% Total Direct Labor & NP 44.90% 49.69% 49.78% 51.65% 48.60% Inventory (% Revenue): The stockpile of unsold products. Unlike corporate reports which show inventory as a percent of total assets, the sole proprietorship financial format displays Inventory as a percent of Revenue. Cost of Sales includes materials and labor involved in the direct delivery of a product or service. Other costs are included in the cost of sales to the extent that they are involved in bringing goods to their location and condition ready to be sold. Non- production overheads such as development costs may be attributable to the cost of goods sold. The costs of services provided will consist primarily of personnel directly engaged in providing the service, including supervisory personnel and attributable overhead. COS- Labor Portion: This reporting format details labor from the materials and delivery portion of the total Cost of Sales. Gross Profit represents direct operating expenses plus net profit. In addition to the labor portion of Cost of Sales, wage costs are reflected in the Officers Compensation and Wages- Salary line items. The Contract Labor- Commissions line item is reserved for non- employee labor, sales and related costs. In many cases, SG&A (Sales, General and Administrative) costs also include some overhead, administrative and supervisory wages. The Taxes line item includes the employer portion of payroll tax on wages taken during the year as well as other paid- in tax items. Sole Proprietorships do not accrue federal business income taxes; Instead, Net Profit is assessed as owner s wages. As a result, the Net Profit line item represents what is commonly referred to as Pre- tax Net Profit or Net Profit Before Tax. Although it is a controversial measure, the EBITDA line item (Earnings before interest, taxes, depreciation and amortization) adds back Interest Paid, Depreciation- Amortization and Home Office expense to reduce the effect of paper expenses and accounting decisions on the bottom line of the Profit and Loss Statement. Since some firms utilized EBITDA is to add back non- cash and flexible expenses which may be altered through credits and accounting procedures (such as income tax), paid- in income taxes from the Taxes Paid line item are not added back in the EBITDA calculation. Rent covers the rental cost of any business property, including land, buildings and equipment. Insurance (non- health) costs include business liability and property insurance, but exclude employee health insurance, which is covered under the Benefits- Pension line item. Advertising includes advertising, promotion and publicity for the reporting business, but not on behalf of others. Benefits- Pension includes, but is not limited to, employee health care and retirement costs. In addition to varying proportions of overhead, administrative and supervisory wages, some generally more minor expenses, including repairs and written- off debt, are aggregated under SG&A (Sales, General and Administrative). The Total Direct Labor & NP line is developed to indicate overall labor costs, aggregating them as a percentage indicator for one- person sole proprietorships as well as larger operations. Total Direct Labor & NP sums the labor portion of Cost of Sales, Salary- Wages, Contract Labor- Commissions and Net Profit line items. 2

3 Cash Flow Annual Cash Flow ($) full year through the end of: QII 04 QII 05 QII 06 QII 07 QII 08 Revenue 208, , , , ,934 Cost of Sales 55,466 52,123 52,867 49,517 50,986 Gross Profit 153, , , , ,949 All Direct Expenses 135, , , , ,483 Net Cash 73,851 85,852 83,888 87,317 79,453 Net Cash & Labor 105, , , , ,125 Annual Cash Flow (%) Net Cash/ Revenue 35.35% 41.26% 40.86% 42.55% 38.21% Net Cash/ Cost of Sales % % % % % Net Cash/ Gross Profit 48.13% 55.05% 55.03% 56.08% 50.62% Net Cash/ All Direct Expenses 54.68% 70.24% 69.09% 74.07% 61.84% Net Cash % % % % % Net Cash/ Net Cash & Labor 70.23% 77.20% 75.74% 76.85% 72.81% All Direct Expenses includes Cost of Sales plus Total Expenses from the P1 Income & Expense table, less largely non- cash Amortization, Depreciation and Home Office expenses. Net Cash adds back these non- cash expenses. This generally offers a more comprehensive picture of owner compensation, which will also vary with the actual proportion of owner labor. Monthly Cash Flow tables on the following page are calculated on a straight- line sales basis. Different sales patterns alter monthly cash flow (but not annual totals). 3

4 Monthly Cash Flow Table: Year ending QII 04 Retained Cash 6,154 12,308 18,462 24,616 30,770 36,924 43,078 49,232 55,386 61,540 67,694 Income 17,409 17,409 17,409 17,409 17,409 17,409 17,409 17,409 17,409 17,409 17,409 17,411 Available Cash 17,409 23,563 29,717 35,871 42,025 48,179 54,333 60,487 66,641 72,795 78,949 85,103 Cost of Sales 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,624 Gross Profit 12,787 12,787 12,787 12,787 12,787 12,787 12,787 12,787 12,787 12,787 12,787 12,788 All Direct Exp. 11,255 11,255 11,255 11,255 11,255 11,255 11,255 11,255 11,255 11,255 11,255 11,256 Net Cash 6,154 12,308 18,462 24,616 30,770 36,924 43,078 49,232 55,386 61,540 67,694 73,851 Net Cash & Labor 8,763 17,526 26,289 35,052 43,815 52,578 61,341 70,104 78,867 87,630 96, ,155 Monthly Cash Flow Table: Year ending QII 05 Retained Cash 7,155 14,310 21,465 28,620 35,775 42,930 50,085 57,240 64,395 71,550 78,705 Income 17,340 17,340 17,340 17,340 17,340 17,340 17,340 17,340 17,340 17,340 17,340 17,336 Available Cash 17,340 24,495 31,650 38,805 45,960 53,115 60,270 67,425 74,580 81,735 88,890 96,045 Cost of Sales 4,344 4,344 4,344 4,344 4,344 4,344 4,344 4,344 4,344 4,344 4,344 4,339 Gross Profit 12,996 12,996 12,996 12,996 12,996 12,996 12,996 12,996 12,996 12,996 12,996 12,997 All Direct Exp. 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,189 Net Cash 7,155 14,310 21,465 28,620 35,775 42,930 50,085 57,240 64,395 71,550 78,705 85,852 Net Cash & Labor 9,268 18,536 27,804 37,072 46,340 55,608 64,876 74,144 83,412 92, , ,208 Monthly Cash Flow Table: Year ending QII 06 Retained Cash 6,991 13,982 20,973 27,964 34,955 41,946 48,937 55,928 62,919 69,910 76,901 Income 17,109 17,109 17,109 17,109 17,109 17,109 17,109 17,109 17,109 17,109 17,109 17,111 Available Cash 17,109 24,100 31,091 38,082 45,073 52,064 59,055 66,046 73,037 80,028 87,019 94,010 Cost of Sales 4,406 4,406 4,406 4,406 4,406 4,406 4,406 4,406 4,406 4,406 4,406 4,401 Gross Profit 12,704 12,704 12,704 12,704 12,704 12,704 12,704 12,704 12,704 12,704 12,704 12,698 All Direct Exp. 10,118 10,118 10,118 10,118 10,118 10,118 10,118 10,118 10,118 10,118 10,118 10,121 Net Cash 6,991 13,982 20,973 27,964 34,955 41,946 48,937 55,928 62,919 69,910 76,901 83,888 Net Cash & Labor 9,231 18,462 27,693 36,924 46,155 55,386 64,617 73,848 83,079 92, , ,764 Monthly Cash Flow Table: Year ending QII 07 Retained Cash 7,277 14,554 21,831 29,108 36,385 43,662 50,939 58,216 65,493 72,770 80,047 Income 17,101 17,101 17,101 17,101 17,101 17,101 17,101 17,101 17,101 17,101 17,101 17,096 Available Cash 17,101 24,378 31,655 38,932 46,209 53,486 60,763 68,040 75,317 82,594 89,871 97,148 Cost of Sales 4,126 4,126 4,126 4,126 4,126 4,126 4,126 4,126 4,126 4,126 4,126 4,131 Gross Profit 12,974 12,974 12,974 12,974 12,974 12,974 12,974 12,974 12,974 12,974 12,974 12,977 All Direct Exp. 9,824 9,824 9,824 9,824 9,824 9,824 9,824 9,824 9,824 9,824 9,824 9,828 Net Cash 7,277 14,554 21,831 29,108 36,385 43,662 50,939 58,216 65,493 72,770 80,047 87,317 Net Cash & Labor 9,468 18,936 28,404 37,872 47,340 56,808 66,276 75,744 85,212 94, , ,613 Monthly Cash Flow Table: Year ending QII 08 Retained Cash 6,621 13,242 19,863 26,484 33,105 39,726 46,347 52,968 59,589 66,210 72,831 Income 17,328 17,328 17,328 17,328 17,328 17,328 17,328 17,328 17,328 17,328 17,328 17,326 Available Cash 17,328 23,949 30,570 37,191 43,812 50,433 57,054 63,675 70,296 76,917 83,538 90,159 Cost of Sales 4,249 4,249 4,249 4,249 4,249 4,249 4,249 4,249 4,249 4,249 4,249 4,247 Gross Profit 13,079 13,079 13,079 13,079 13,079 13,079 13,079 13,079 13,079 13,079 13,079 13,080 All Direct Exp. 10,707 10,707 10,707 10,707 10,707 10,707 10,707 10,707 10,707 10,707 10,707 10,706 Net Cash 6,621 13,242 19,863 26,484 33,105 39,726 46,347 52,968 59,589 66,210 72,831 79,453 Net Cash & Labor 9,094 18,188 27,282 36,376 45,470 54,564 63,658 72,752 81,846 90, , ,125 4

5 financial ratios: Cash Flow- Solvency net cash/ Revenue % net cash turnover (X) Net Cash: Revenue: (Retained Cash plus Net Profit) divided by Revenue. Adds back non- out of pocket items (e.g., depreciation, amortization, home office) which show as expenses but largely do not reduce liquid assets. Net Cash Turnover: Revenue divided by Cash. Cash totals taken from the Cash Flow table less out of pocket expenses. Results too far from the benchmark may indicate overly conservative or aggressive liquidity policies. 5

financial ratios: Profitability gross profit: Revenue 73.45 74.95 74.25 75.87 75.48 EBITDA: Revenue 36.27 41.76 41.33 42.98 38.66 return on Revenue (%) 29.92 37.50 36.69 38.84 34.

6 financial ratios: Profitability gross profit: Revenue EBITDA: Revenue return on Revenue (%) Gross Profit: Revenue: Gross Profit: divided by Annual Revenue. This is the profit ratio before direct expenses. This ratio can indicate the "play" in other expenses which could be adjusted to increase the Net Profit margin. EBITDA: Revenue: Earnings Before Interest, income taxes due, Depreciation and Amortization divided by Revenue. EBITDA: Revenue is a relatively controversial (and often criticized) metric designed to eliminate the effect of finance and accounting decisions when comparing companies and industry benchmarks. Tax credits and deferral procedures and non- cash expenditures (Amortization and Depreciation) are not deducted from the profit equation, as are interest expenditures. In the case of sole proprietor reporting formats, the before tax refers to owner federal income taxes resulting from Net Profit, rather than federal corporate income taxes. Return on Revenue: Net Profit divided by Annual Net Revenue, indicating the level of profit from each dollar of Revenue. Income taxes attributable to the Net Profit portion of proprietor income have not been deducted from Net Profit. This ratio can be used as a predictor of the company's ability to withstand changes in prices or market conditions. The ratio is often higher for startups and sole proprietorships due to owner compensation draws accounted as net profit. 6

7 financial ratios: Efficiency: cost of sales: inventory (x) days inventory EBITDA: interest inventory turnover total labor: Revenue Cost of Sales: Inventory: Cost of Sales divided by Inventory. This ratio reflects the number of times inventory is turned over during the course of the year. High levels can mean good liquidity or sales, or shortages requiring better management. Low levels may indicate poor cash flow or overstocking. Days Inventory: 365 divided by (Cost of Sales: Inventory): Shows the average number of days of items in inventory. Positive inventory balance will align most closely with industry benchmarks. EBITDA: Interest: Earnings before Interest, income axe due, Depreciation and Amortization divided by Interest expense. This ratio assesses financial stability by examining whether a company is at least profitable enough to pay interest expense. A ratio >1.00 indicates it is. See cautions in the listing for EBITDA. Inventory Turnover: Revenue divided by Inventory. Target at or slightly above industry level. This ratio indicates how quickly inventory turns over. Ratios below the industry norm suggest high levels of inventory. High ratios could indicate product levels insufficient to satisfy demand in a timely manner. Total Labor: Revenue: All direct compensation costs as a percentage of sales, including the labor cost portion of cost of sales, salary & wages, contract labor and commissions. Net Profit is also included for sole proprietorship and most startup operations because it is considered owner compensation. 7

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9 About the Data Raw data analyzed for BizMiner reports is sourced from an array of the nation's private government statistical sources, including the IRS, various Economic Census reports, Bureau of Labor Statistics data, commercial real estate surveys, state revenue departments, business databases, credit reporting agencies and directories. None of these raw data sources creates the final measures reflected in BizMiner industry profiles. In total, BizMiner accesses over half a billion sourced data points from eighteen million business operations for each of its twice annual updates. Existing data and BizMiner algorithms are used to inform and test projections for non- reporting firms. At the same time, some firms are missed and specific information on others is lacking from the database. However, the overall current coverage of the databases approaches 12 million business operations annually. While 100% firm coverage is desirable for analysis purposes, the greatest value of the content rests in discerning patterns of activity, which are reflected in the large samples used to develop our reports. As is the case with any databases this large, some errors are inevitable. No representation is made as to the accuracy of the databases utilized or the results of subsequent analyses. Sales volume figures are for firms identifying this as their primary classification. For example, a report for retail furniture stores analyzes sales of stores whose predominant revenue stream is furniture sales; that data would not include furniture sold at a general department store. Firms in more detailed industry segments may opt to identify a higher level parent classification as their primary line of business, effectively reducing sales applied to the detailed segment. It is sometimes difficult to ascertain precise sales data for the smallest firms in the databases. When precise numbers are not available, reports that offer a sales range may be utilized. When there is a very small number of firms in a category (most often startups, which are by nature often microfirms) the sales is recorded at 150,000 (reflecting a 100, ,000 range). Survival and sales analysis of independent business operations are based on information supplied largely by business owners and representatives to private reporting services. Inaccurate information supplied by business owners or representatives may affect the analysis. Survival rates assume that the discontinuation of a facility's presence among credit reporting databases utilized reflects the discontinuation of operations of that facility. Where insufficient data is available to create specific line items in specific industry reports, projections developed through proprietary algorithms, including projections from broader industry data, may be utilized. The Time Series: Our Profiles are adjusted to account for time lags in raw data. We adjust the time series to compensate, and the dates shown in the reports generally reflect the actual time series shown in each Profile. Neither the Brandow Company nor its resellers are responsible for conclusions drawn or decisions made based upon this data or analysis. In no event will the Brandow Company or its resellers be liable for any damages, direct, indirect, incidental or consequential resulting from the use of the information contained in BizMiner reports. BizMiner 2601 Market Street Camp Hill, PA fax: The Brandow Company. All rights reserved. services@bizminer.com 9

Startup Profit & Loss Profile release date: December 2017 [238220] Plumbing, Heating, and Air-Conditioning Contractors Sector: Construction

Startup Profit & Loss Profile release date: December 217 [23822] Plumbing, Heating, and Air-Conditioning Contractors Sector: Construction Contents Income-Expense statement - dollar-based Income-Expense