Industry Financial

7/31/2019 Industry Financial

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[238] Specialty Trade Contractors

Sector: Construction

Sales Class: $5m - $9.99m

Firms Analyzed: 9,189

Contents

P1: Income-Expense statement- dollar-based

P2: Income-Expense statement- percentage-based

P4: Balance Sheet- dollar-based

P5: Balance Sheet- percentage-based

Sources-Uses of Funds

P6: Financial Ratios - Cash Flow-Solvency

P8: Financial Ratios - Profitability

P10:Financial Ratios - Efficiency-Debt-Risk

P13:Financial Ratios- Turnover

P15:About the Data

NAICS-6 industries Applied: 238110, 238120, 238140, 238150, 238160, 238170, 238190, 238210, 238220, 238290, 238310, 238320, 238330, 238340, 238350,

238390, 238910, 238990

See P2 notes on Business Receipts for financial industry exceptions.

Income and Expense- Profit and Loss ($)

2007 2008 2009 2010 2011

Business Revenue 7,516,650 7,479,110 7,470,932 7,643,874 7,537,702

Cost of Sales 5,323,642 5,223,637 5,240,613 5,262,822 5,156,675

Gross Margin 2,193,008 2,255,473 2,230,319 2,381,052 2,381,027

Officers Comp 287,314 301,977 297,368 308,058 317,850

Salary-Wages 487,294 485,728 501,167 508,449 459,371

Rent 146,841 157,221 168,252 163,910 167,757

Taxes Paid 175,891 174,215 162,378 139,283 153,036

Advertising 24,404 35,472 27,504 31,691 32,389

Benefits-Pensions 174,047 169,867 182,886 182,967 182,197

Repairs 30,307 32,709 32,923 38,124 33,631

Bad Debt 17,841 14,177 14,596 19,326 19,552

Other SG&A Exp. 453,972 459,887 466,226 452,826 463,867

EBITDA 395,097 424,220 377,019 536,417 551,377

Amort-Deprec-Depl 93,672 103,655 101,603 112,058 111,577

Operating Expenses 1,891,583 1,934,908 1,954,904 1,956,692 1,941,227

Operating Income 301,425 320,565 275,416 424,360 439,800

Interest Income 4,194 3,782 7,471 1,580 890Interest Expense 30,305 30,794 46,448 37,013 19,813

Other Income 33,479 26,977 41,646 57,244 48,601

Pre-Tax Net Profit 308,793 320,529 278,084 446,171 469,478

Income Tax 103,679 108,256 91,703 151,698 159,623

After Tax Net Profit 205,114 212,273 186,382 294,473 309,856

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 fall within the selected

segment.

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Income and Expense- Profit and Loss %

2007 2008 2009 2010 2011

Business Revenue 100.0% 100.0% 100.0% 100.0% 100.0%

Cost of Sales 70.82% 69.84% 70.15% 68.85% 68.41%

Gross Margin 29.18% 30.16% 29.85% 31.15% 31.59%

Officers Comp 3.82% 4.04% 3.98% 4.03% 4.22%

Salary-Wages 6.48% 6.49% 6.71% 6.65% 6.09%

Rent 1.95% 2.10% 2.25% 2.14% 2.23%

Taxes Paid 2.34% 2.33% 2.17% 1.82% 2.03%

Advertising 0.32% 0.47% 0.37% 0.41% 0.43%Benefits-Pensions 2.32% 2.27% 2.45% 2.39% 2.42%

Repairs 0.40% 0.44% 0.44% 0.50% 0.45%

Bad Debt 0.24% 0.19% 0.20% 0.25% 0.26%

Other SG&A Exp. 6.04% 6.15% 6.24% 5.92% 6.15%

EBITDA 5.26% 5.67% 5.05% 7.02% 7.31%

Amort-Deprec-Depl 1.25% 1.39% 1.36% 1.47% 1.48%

Operating Expenses 25.17% 25.87% 26.17% 25.60% 25.75%

Operating Income 4.01% 4.29% 3.69% 5.55% 5.83%

Interest Income 0.06% 0.05% 0.10% 0.02% 0.01%

Interest Expense 0.40% 0.41% 0.62% 0.48% 0.26%

Other Income 0.45% 0.36% 0.56% 0.75% 0.64%

Pre-Tax Net Profit 4.11% 4.29% 3.72% 5.84% 6.23%

Income Tax 1.38% 1.45% 1.23% 1.98% 2.12%After Tax Net Profit 2.73% 2.84% 2.49% 3.85% 4.11%

Business Revenue includes receipts from core business operations. Interest Income and Other income (such as rents and royalties) are

generally detailed separately below Operating Income. While Business Revenue is separated from Interest Income for most classifications,

Business Revenue includes interest income from the private sector where i t is central to financial industry operations, including Finance and

Insurance (NAICS 52xxxx except NAICS 5242xx Insurance Brokers and Other Insurance Activities); Real Estate-Rental-Leasing (53xxxx); and

Management of Companies and Enterprises (55xxxxx).

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.

Gross Margin 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. In many cases, SG&A (Sales, General and Administrative) costs also include

some overhead, administrative and supervisory wages.

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Rent covers the rental cost of any business property, including land, buildings and equipment.

The Taxes paid line item includes payroll other paid-in tax items, but not business income taxes due for the period. Although it canbe calculated in many ways and is a controversial measure, the EBITDA line item (Earnings before Interest Expense, income tax

due, Depreciation and Amortization) adds back interest payments, depreciation, amortization and depletion allowances, andexcludes income taxes due to reduce the effect of accounting decisions on the bottom line of the Profit and Loss Statement. Since

some firms utilize EBITDA 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.

Pre-Tax Net Profit represents net profit before income tax due. Income Tax calculates the federal corporate tax rate before credits,

leaving After-Tax Profit at the bottom line.

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 are

aggregated under SG&A (Sales, General and Administrative).

Operating Expenses sums the individual expense line items above, yielding the Operating Income or net of core business operations, when

subtracted from the Gross Margin.

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Balance Sheet - dollar-based

Assets 2007 2008 2009 2010 2011

Cash 367,989 412,059 523,503 530,431 418,165

Receivables 1,074,757 1,027,990 1,002,028 1,048,376 657,338

Inventory 148,558 150,476 158,372 136,145 87,858

Other Current Assets 247,284 250,136 298,726 216,296 143,036

Total Current Assets 1,838,588 1,840,661 1,982,629 1,931,247 1,306,398

Gross Fixed Assets 1,200,445 1,437,510 1,392,029 1,321,643 1,062,789

Accumulated Depreciation-Amortization-Depletion 823,275 985,856 954,665 906,394 736,780

Net Fixed Assets 377,170 451,654 437,364 415,249 326,009

Other Non-Current Assets 138,249 146,660 173,607 280,235 1,127,780

Total Assets 2,354,007 2,438,974 2,593,600 2,626,731 2,760,186

Liabilities

Accounts Payable 527,738 491,134 1,146,213 421,234 420,214

Loans/Notes Payable 170,167 166,466 42,557 135,213 138,276

Other Current Liabilities 355,623 411,694 419,392 385,526 416,748

Total Current Liabilities 1,053,527 1,069,294 1,608,162 941,973 975,238

Total Long Term Liabilities 416,055 418,379 448,817 405,597 453,968

Total Liabilities 1,469,583 1,487,672 2,056,979 1,347,570 1,429,206

Net Worth 884,425 951,302 536,621 1,279,161 1,330,980

Total Liabilities & Net Worth 2,354,007 2,438,974 2,593,600 2,626,731 2,760,186

Cash: Money on hand in checking, savings or redeemable certificate accounts.

Receivables: A short-term asset (to be collected within one year) in the form of accounts or notes receivable, and usually representing a

credit for a completed sale or loan.

Inventory: The stockpile of unsold products.

Current Assets: The sum of a firm's cash, accounts and notes receivable, inventory, prepaid expenses and marketable securities which can

be converted to cash within a single operating cycle.

Fixed Assets: Long-term assets such as building and machinery, net of accumulated amortization-depreciation-depletion.

Total Assets: The sum of current assets and fixed assets such as plant and equipment.

Accounts Payable: Invoices due to suppliers within the current business cycle.

Loans/Notes Payable: Loan amounts due to suppliers within the current business cycle.

Current Liabilities: Measurable debt owed within one year, including accounts, loans and notes payable, accrued liabilities and taxes due.

Long Term Liabilities: Debt which is due in more than one year, including the portion of loans and mortgages that become due after the

current business cycle.

Total Liabilities: Current Liabilities plus Long Term Liabilities such as notes and mortgages due over more than one year.

Net Worth: Current assets plus fixed assets minus current and long-term liabilities.

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Balance Sheet - percentage-based

Assets 2007 2008 2009 2010 2011

Cash 15.63% 16.89% 20.18% 20.19% 15.15%

Receivables 45.66% 42.15% 38.63% 39.91% 23.81%

Inventory 6.31% 6.17% 6.11% 5.18% 3.18%

Other Current Assets 10.50% 10.26% 11.52% 8.23% 5.18%

Total Current Assets 78.10% 75.47% 76.44% 73.52% 47.33%

Gross Fixed Assets 51.00% 58.94% 53.67% 50.32% 38.50%

Accumulated Depreciation-Amortization-Depletion 34.97% 40.42% 36.81% 34.51% 26.69%

Net Fixed Assets 16.02% 18.52% 16.86% 15.81% 11.81%Other Non-Current Assets 5.87% 6.01% 6.69% 10.67% 40.86%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

Liabilities

Accounts Payable 22.42% 20.14% 44.19% 16.04% 15.22%

Loans/Notes Payable 7.23% 6.83% 1.64% 5.15% 5.01%

Other Current Liabilities 15.11% 16.88% 16.17% 14.68% 15.10%

Total Current Liabilities 44.75% 43.84% 62.01% 35.86% 35.33%

Total Long Term Liabilities 17.67% 17.15% 17.30% 15.44% 16.45%

Total Liabilities 62.43% 61.00% 79.31% 51.30% 51.78%

Net Worth 37.57% 39.00% 20.69% 48.70% 48.22%

Total Liabilities & Net Worth 100.00% 100.00% 100.00% 100.00% 100.00%

The Balance Sheet reflects average balance sheet percentages and dollars for the industry segment analyzed. Liabilities, net worth and ratios

are calculated for each industry segment and class, while asset line items are blended with the closest four digit industry segment.

Sources & Uses of Funds

Change in: 2006 2007 2008 2009 2010

Cash and cash equivalents 367,989 44,071 111,444 6,928 -112,266

Worksheet:

Accounts receivable -1,074,757 46,767 25,962 -46,348 391,038

Inventory -148,558 -1,918 -7,896 22,227 48,286

Other Curr Assets -247,284 -2,851 -48,590 82,430 73,260

Net Fixed Assets -377,170 -74,484 14,290 22,115 89,240

Other Non-Curr Assets -138,249 -8,410 -26,947 -106,628 -847,545

Accounts payable 527,738 -36,604 655,080 -724,979 -1,020

Loans/Notes Payable 170,167 -3,700 -123,909 92,656 3,063

Other Current Liabilities 355,623 56,071 7,698 -33,866 31,223

Long-term debt 416,055 2,323 30,438 -43,220 48,371

Net Worth 884,425 66,877 -414,681 742,540 51,819

Total Sources & Uses 367,989 44,071 111,444 6,928 -112,266

Cash: Beginning period 0 367,989 412,059 523,503 530,431

Cash: End period 367,989 412,059 523,503 530,431 418,165

Change in Cash & Cash equivalents 367,989 44,071 111,444 6,928 -112,266

Sources and Uses: The Sources and Uses of Funds table tests the accuracy of the balance sheet and distinguishes the sources offunds from their use. It is the basic worksheet preliminary to a formal cash flow statement examining the liquidity of a business. A

multi-year industry benchmark common size balance sheet, which includes overlapped but not identical sets of firms in each year, is

not well-suited for the presentation of a formal cash flow analysis.

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Financial Ratios: Cash Flow-Solvency

2007 2008 2009 2010 2011

Accounts Payable: Business Revenue (%) 7.02 6.57 15.34 5.51 5.57

Current Liabilities: Inventory (%) 7.09 7.11 10.15 6.92 11.10

Current Liabilities: Net Worth (%) 1.19 1.12 3.00 0.74 0.73

Current Ratio (%) 1.75 1.72 1.23 2.05 1.34

Days Payable (%) 36.19 34.32 79.82 29.22 29.74

Quick Ratio (%) 1.37 1.35 0.95 1.68 1.10

Total Liabilities: Net Worth (%) 1.66 1.56 3.83 1.05 1.07

Accounts Payable: Business Revenue: Accounts Payable divided by Annual Business Revenue, measuring the speed with which a

company pays vendors relative to Business Revenue. Numbers higher than typical industry ratios suggest that the company may be using

suppliers to float operations.

Current Liabilities: Inventory: Current Liabilities divided by Inventory: A high ratio, relative to industry norms, suggests over-reliance on

unsold goods to finance operations.

Current Liabilities: Net Worth: Current Liabilities divided by Net Worth, reflecting a level of security for creditors. The larger the ratio relative

to industry norms, the less security there is for creditors.

Current Ratio: This is the same as Current Assets divided by Current Liabilities, measuring current assets available to cover current

liabilities, a test of near-term solvency. The ratio indicates to what extent cash on hand and disposable assets are enough to pay off near term

liabilities. The Quick Ratio is applied as a more stringent test.

Days Payables: 365/(Cost of Sales: Accounts Payable ratio): Reflects the average number of days for each payable before payment is made.

Quick Ratio: Cash plus Accounts Receivable, divided by Current Liabilities, indicating liquid assets available to cover current debt. Also

known as the Acid Ratio. This is a harsher version of the Current Ratio, which balances short-term liabilities against cash and liquid

instruments.

Total Liabilities: Net Worth: Total liabilities divided by Net Worth. This ratio helps to clarify the impact of long-term debt, which can be seen by

comparing this ratio with Current Liabilities: Net Worth. Creditors are concerned to the extent that total liability levels exceed Net Worth.

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Cash Flow-Solvency Ratios:

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Financial Ratios: Profitability

2007 2008 2009 2010 2011

EBITDA: Business Revenue (%) 5.26 5.67 5.05 7.02 7.31

Pre-Tax Return On Assets (%) 13.12 13.14 10.72 16.99 17.01

Pre-Tax Return on Net Worth (%) 0.35 0.34 0.52 0.35 0.35

Pre-Tax Return on Business Revenue (%) 4.11 4.29 3.72 5.84 6.23

After Tax Return on Assets (%) 8.71 8.70 7.19 11.21 11.23

After Tax Return on Net Worth (%) 23.19 22.31 34.73 23.02 23.28

After Tax Return on Business Revenue (%) 2.73 2.84 2.49 3.85 4.11

EBITDA: EBITDA: Business Revenue: Earnings Before Interest, (income) Taxes due, Depreciation and Amortization divided by Business

Revenue. EBITDA: Business 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.

Return on Assets: Pre-Tax or After Tax Net Profit divided by Total Assets, a critical indicator of profitability. Companies which use their assets

efficiently will tend to show a ratio higher than the industry norm. The ratio may appear higher for small businesses due to ownercompensation draws accounted as net profit.

Return on Net Worth: Pre-Tax or After Tax Net Profit divided by Net Worth. This is the 'final measure' of profitability to evaluate overall return.

This ratio measures return relative to investment, how well a company leverages the investment in it. May appear higher for small businesses

due to owner compensation draws accounted as net p rofit.

Return on Business Revenue: Pre-Tax or After Tax Net Profit Net Profit divided by Annual Business Revenue, indicating the level of profit

from each dollar of Business Revenue. This ratio can be used as a predictor of the company's ability to withstand changes in prices or market

conditions. May appear higher for small businesses due to owner compensation draws accounted as net profit.

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Profitability Ratios

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Financial Ratios: Efficiency-Debt-Risk:

2007 2008 2009 2010 2011

Assets: Business Revenue 0.31 0.33 0.35 0.34 0.37

Cost of Sales: Accounts Payable 10.09 10.63 4.57 12.49 12.27

Cost of Sales: Inventory 35.84 34.71 33.07 38.68 58.75

Days Inventory 10.18 10.52 11.04 9.44 6.21

Days Receivables 52.19 50.17 48.95 50.06 31.82

Days Working Capital 38.12 37.65 18.28 47.24 16.04

EBITDA: Interest Expense 13.04 13.78 8.12 14.49 27.83Fixed Assets: Net Worth 0.43 0.47 0.81 0.32 0.24

Gross Margin: Business Revenue 0.29 0.30 0.30 0.31 0.32

Net Working Capital: Business Revenue 0.10 0.10 0.05 0.13 0.04

Assets: Business Revenue: Total Assets divided by Net Business Revenue, indicating whether a company is handling too high a volume of

Business Revenue in relation to investment. Very low percentages relative to industry norms might indicate overly conservative sales efforts or

poor sales management.

Cost of Sales:Accounts Payable: Measures the number of times payables turn over in the course of the year. High measures may indicate

cash flow concerns.

Cost of Sales: Inventory: Reflects the number of times inventory is turned over during the course of the year. High levels can mean good

liquidity or Business Revenue, or shortages requiring better management. Low levels may indicate poor cash flow or overstocking.

Days Inventory: 365/(Cost of Sales: Inventory): The average number of days of items in inventory.

Days Receivables: 365/ (Receivables Turnover): Reflects the number of days that receivables are outstanding. Target average or lower.

Days Working Capital: 365/ (Working Cap ital Turnover): Expresses the coverage in number of days of available working capital.

EBITDA: interest expense: Earnings before Interest, (income) Taxes due, Depreciation and Amortization divided by Interest expense.

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.

Fixed Assets: Net Worth: Fixed Assets divided by Net Worth. High ratios relative to the industry can indicate low working capital or high

levels of debt.

Gross Margin:Business Revenue: Pre-tax profits divided by Annual Business Revenue. This is the profit ratio before product and Business

Revenue costs, as well as taxes. This ratio can indicate the "play" in other expenses which could be adjusted to increase the Net Profit margin.

Net Working Capital: Business Revenue: Net Working Capital divided by Business Revenue. Indicates if a company is maintaining a

reasonable level of liquidity relative to its Business Revenue volume. A high ratio indicate an overly conservative reliance on liquid assets,

while low ratios suggests the opposite.

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Efficiency-Debt-Risk Ratios

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Financial Ratios: Turnover:

2007 2008 2009 2010 2011

Cash Turnover (X) 20.43 18.16 14.27 14.41 18.03

Current Asset Turnover 4.09 4.06 3.77 3.96 5.77

Fixed Asset Turnover 19.93 16.56 17.08 18.41 23.12

Inventory Turnover (X) 50.60 49.70 47.14 56.18 85.88

Receivables Turnover (X) 6.99 7.28 7.46 7.29 11.47

Total Asset Turnover (X) 3.19 3.07 2.88 2.91 2.73

Working Capital Turnover (X) 9.57 9.69 19.96 7.73 22.76

Cash Turnover: Business Revenue divided by Cash. Indicates efficiency in the use of cash to develop Business Revenue . A more stringent

ratio than Working Capital Turnover (below). Target at or slightly below industry level.

Current Asset Turnover: Business Revenue divided by Current Assets. A general indicator of the efficiency of asset use. Target at or slightly

below industry level.

Fixed Asset Turnover: Business Revenue divided by Fixed Assets. An indicator of the efficiency of investment in fixed asset such as plant

and equipment. Target at or slightly below industry level.

Inventory Turnover: Business Revenue divided by Inventory. This ratio gives a picture of how quickly inventory turns over. Ratios below the

industry norm suggest high levels of inventory. High ratios could ind icate product levels insufficient to satisfy demand in a timely manner.

Target: at or slightly above industry level.

Receivables Turnover: Business Revenue divided by Receivables. An indicator of how efficiently invoiced sales are collected. Target at or

slightly above industry level.

Total Asset Turnover: Business Revenue divided by Total Assets. Target: at or slightly below industry level.

Working Capital Turnover: Business Revenue divided by Net Working Capital (current assets minus current liabilities). Ratios higher than

industry norms may indicate a strain on available l iquid assets, while low ratios may suggest too much liquidi ty. Target: at or above industry

level.

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Turnover Ratios

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About the Data

Raw data analyzed for BizMiner reports is sourced from an array of the nation's government and private statistical sources. None of these raw

data sources creates the final measures reflected in BizMiner industry profiles. In total, BizMiner accesses over a billion sourced data points

from 15 million business operations for each of its twice annual updates covering a 3-5 year time series. Historical data and BizMiner

algorithms are used to inform and test projections for non-reporting firms. Data elements are sourced specifically from:

- IRS SOI Corporation Income Tax Returns

- IRS SOI Corporation Tax Book

- IRS SOI 1040 Schedule C Income Tax Returns

- IRS SOI Statistics of Income- Individual Tax Statistics

- US Economic Census of Manufactures

- US Census Economy Overview

- US Census Annual Survey of Manufactures

- US Census Annual Retail Trade Survey

- US Census Annual Wholesale Trade Survey

- US Census Quarterly Financial Reports

- US Census County Business Patterns

- Bureau of Labor Statistics Monthly Employment Reports

- Bureau of Labor Statistics Monthly Unemployment Reports

- US Census Wholesale Trade Report

- US Census Quarterly (New Housing) Sales by Price and Financing

- US Census Total Construction Spending

- US Census Retail Trade Report

- US Census Quarterly Services Survey

- Commercial Real Estate Survey

- Credit Reporting Agencies

- InfoGroup, Inc.

- Business Directories

While 100% firm coverage is desirable for analysis purposes, the greatest value of BizMiner reports rests in discerning patterns of activity,

which are reflected in the large samples used to develop our reports. The overall current coverage of the databases surpasses 13 million

active business operations at any point in time.

As is the case with any databases this large, some errors are inevitable. Some firms are missed and specific information on others is lacking

from the database. Not all information received is uniform or complete, resulting in the need to develop projection algorithms for specific

industry segments and metrics in some report series. No representation is made as to the accuracy of the databases utilized or the results of

subsequent analyses. Neither the Brandow Company nor its resellers has undertaken independent primary research to confirm the accuracy

of the data utilized in the Profile analyses. Neither the Brandow Company nor i ts 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.

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