Page 53 - FINAL Combined CB2_Neat

Business Development and Project Financial Performance
As indicated above, the number of project opportunities decreased again last year. On average
over the past five years, we have pursued about 1/3 of the total opportunities we identify, and FY
2017 fit into this pattern. A summary of some metrics for the past six years is provided below:

Category FY FY FY FY FY FY
2012 2013 2014 2015 2016 2017
Total Opportunities (Proposals + No 91 81 60 66 40 30
Go’s)

Proposals Submitted
- Studies/Retainer Contracts 7 4 8 5 6 3
- Full Projects 20 17 17 26 7 7
- Total 27 21 25 31 13 10

Construction Values of Projects
Pursued
- Total $418M $421M $249M $214M $62M $53M
- Average $21M $25M $10M $9M $9M $7.5M

Hit Rate
- Proposal to Shortlist/Interview 10/27 6/21 11/25 11/31 4/13 1/8
(37%) (29%) (44%) (35%) (31%) (13%)
- Shortlist/Interview to Win 7/10 2/6 3/11 4/11 1/3* 1/1
(70%) (33%) (27%) (36%) (33%) (100%)
- Pending 2

The following chart tracks our performance in regard to the Sales and Net Revenue goals and the
Marketing budget which we had set at the beginning of FY 2017. Our sales for the year were anemic,
and were due almost entirely to several small commissions at Northwestern University. We finished
slightly under budget in regard to Marketing Costs. If the TDL project had resumed in FY 2017 as
anticipated, our net revenue target would likely have been realized. We entered FY2018 with a
backlog of work valued at approximately $815,000 in net revenue.

Sales/Revenue/Marketing Costs Summary (FY 2017)
Category Target Actual Percent of Target

Sales
Gross Fees $3,954,489 $162,650 4%
Net Fees $1,626,187 $150,250 9%
Revenue
Net $1,571,742 $1,107,189 70%
Profit ($) $157,174 $222,723 146%
Profit (%) 10% 20%
Marketing Costs
Labor (Hours) 3,200 2,367 74%
Labor ($) $136,500 $140,564 103%
Out-of-pocket expenses $37,515 $27,540 73%
Total Marketing Cost $174,015 $168,104 97%

The graph below reflects efforts to adjust our marketing costs with expectations regarding the
number and value of opportunities we anticipate through the year. As a general rule of thumb in