Page 108 - FINAL Combined CB2_Neat

The following table displays key metrics from the Deltek Survey and how FGM performs against
other Architectural firms.

2017 2016

Industry Industry
FGM FGM
Benchmark Benchmark
Effective Multiplier (EM)
3.38 3.02 3.25 3.00

Utilization 52.3% 60.1% 51.9% 59.0%

Revenue Factor 1.77 1.82 1.69 1.80

Revenue per Employee $ 144,700 $ 140,200 $ 138,000 $ 133,000

Overhead Rate (OH)
2.12 1.54 2.18 1.55
Spread (EM-OH)
1.26 1.48 1.07 1.45

Percent Operating Profit 7.7% 13.0% 2.1% 13.5%

THE YEAR AHEAD

The year begins with optimism. Net revenue is projected to grow over 10%. Backlog at October
1 was over $9 million, or 47% higher than last year. Even though salary, benefits, and employee
st
related expenses will be higher since we increased headcount in 2017, operating profit is
projected to be consistent with 2017.
With this stability, investments in capital improvements will be made. The Chicago office was
relocated and opened for business in December. The St. Louis office will be reconfigured to add
more desks. There are plans for a Milwaukee office, adding the much-needed Wisconsin address
to our marketing materials. The discussion about replacing the Boxx computers has changed from
“if and can we?” to “how and when.”

The accounting department continues to have a high commitment to supporting the firm. From
collaborating with the CEO and President, determining how we can help the Managing Directors
with their new responsibilities, providing information to the Practice Leaders and PICs, meeting
with the Project Managers monthly or as often as needed, onboarding new employees, and
processing all transactions in a timely and accurate manner, we are here for you. A measure of
success for accounting is how much we can help you with the back office business details so that
you can focus on clients, projects, and business development.