Page 60 - Annual Report 2016 - Cover & Divider Pages.indd

Higher Education: Profit as Percent of Net Revenue
3,500,000

3,000,000

2,500,000

2,000,000
Net Revenue
1,500,000 Net Revenue
1,000,000 Profit

500,000 Project Profitability

-
22% 3%
(500,000)
-16% -14% -9% -10%
(1,000,000)
FYE 11 FYE 12 FYE 13 FYE 14 FYE 15 FYE 16

Business Development
As indicated above, the number of project opportunities decreased again last year. Although we
might have missed a few SO Region opportunities in the months following Shelley Simon’s
departure, last year’s dip follows a trend underway for, at least, the last five years. On average,
over the past five years, we have pursued about 1/3 of the total opportunities we identified, and FY
2016 fit into this pattern. A summary of some metrics for the past five years is provided below:

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

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

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

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

[*NEIU
canceled]

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 2016. As mentioned above, we
exceeded the sales goal, but fell short on revenue (which requires we actually do the work we