Microsoft PowerPoint - ME Wilson Report Out Document

M.E. Wilson Preliminary Financial Reporting Information Data as of October 2018

Contents

• Summary

• Year to Date Performance

• YTD Income Statement Comparison • YTD Expense Benchmarks • YTD EBITDA Benchmarks • Organic Revenue Change

1

M.E. Wilson YTD Income Statement Comparison

YTD Comparison

2017 YTD Oct

2018 YTD Oct

YTD Change

REVENUES P&C Commissions P&C Service Fees

5,144,673

5,364,591

4.3% 1.9%

134,259 213,280

136,754 393,172

Contingent

84.3%

L&H

2,090,421

2,159,087

3.3%

Securities Commissions

-

-

Investments Miscellaneous

380

564

22,252

39,365

Total Revenues

7,605,265

8,093,533

6.4%

Brokerage Commission Expense

0

0

NET REVENUES

7,605,265

8,093,533

6.4%

EXPENSES Compensation expenses Payroll

4,310,055

4,402,369

Benefits

451,575

482,318

Total compensation

4,761,630

4,884,687

2.6%

Selling expenses

Travel, entertainment and auto

144,482 15,301 159,783

173,816 18,510 192,326

Advertising, Promotion, and Other Selling

Total selling expenses

20.4%

Operating expenses Occupancy

282,709 12,177

296,345 13,332

Telephone

Postage

9,214

8,535

Supplies/Printing

83,826 74,503 12,566 111,025 54,549 233,687

59,502 124,377 22,383 71,884 29,861 225,502

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance (P/C & E/O)

Professional fees

Equipt Rental/Maintenance

Bad debts

345

1,493

Outside services Education/Training

-

-

12,877

9,385 3,504

Miscellaneous operating expense

2,751

Total operating expenses

890,229

866,103

-2.7%

EBITDA

1,793,623

2,150,417

19.9%

EBITDA Margin %

23.6%

26.6%

EBITDA Ex Contingents

1,580,343

1,757,245

11.2%

EBITDA Margin Ex Contingents %

21.4%

22.8%

Disposition Revenue Acquisition Revenue

-

-

2

Organic Revenue Change

7,369,353

7,660,432

3.9%

M.E. Wilson v. Industry and BroadStreet Partners’ Benchmarks Relative Expense Comparison: Prior Year End and Current TTM

Full YR 2017

Industry Avg

TTM

BP TTM

Expense Distribution Compensation Exp

62.1% 60.3% 2.3% 2.5% 11.8% 11.0% 76.3% 73.7%

60.6%

58.9%

Selling Exp

3.5%

2.9%

Operating Exp

13.8% 77.9%

11.5% 73.3%

Total Operating Expenses

100%

75%

13.8%

2.3% 2.5% 11.8% 11.0%

11.5%

3.5%

2.9%

50%

62.1% 60.3%

60.6%

58.9%

25%

0%

Full YR 2017

TTM

Industry Avg

BP TTM

Compensation Exp

Selling Exp

Operating Exp

Compares agency’s year end 2017 results to the trailing 12 months as of October 2018 Industry data is based on the 2018 IIABA Best Practices Study found on the Reagan Consulting website BP TTM metrics are the aggregate results of the agencies

3

Full Year 2017 includes one month of results prior to the BroadStreet partnership

M.E. Wilson v. Industry and BroadStreet Partners’ Benchmarks Relative EBITDA Margin Comparison: Prior Year End and Current TTM

Full YR 2017

Reagan Top 25%

BP TTM Top 25%

BP TTM Average

TTM

Profitability

EBITDA %

23.7% 26.3%

33.0%

30.9% 26.7%

35%

33.0%

30.9%

30%

26.7%

26.3%

23.7%

25%

20%

15%

10%

5%

0%

Full YR 2017

TTM

Reagan Top 25%

BP TTM Top 25%

BP TTM Average

Compares agency’s year end 2017 results to the trailing 12 months as of October 2018 Industry data is based on the 2018 IIABA Best Practices Study found on the Reagan Consulting website BP TTM metrics are the aggregate results of the agencies

4

Full Year 2017 includes one month of results prior to the BroadStreet partnership

Detailed M.E. Wilson TTM Income Statement as a Percent of Revenue, Compared to Benchmarks

ME Wilson

2018 IIABA Best Practices Study (from Reagan Consulting Site) Agencies with revenue between $5M and $10M

% of Revenue % of Revenue

Industry Average

BP TTM

Year End

TTM

% of Revenue

REVENUES

2017

at Oct 2018

2018 IIABA

at Oct 2018

P&C Commissions P&C Service Fees

67.7%

66.5%

75.8%

72.2%

1.8% 2.4%

1.7% 4.1%

5.0% 9.2%

Contingent

8.7%

L&H

27.8%

27.2%

14.4%

14.0%

Securities Commissions

0.0% 0.0% 0.3%

0.0% 0.0% 0.5%

0.1% 0.0% 0.3%

Investments Miscellaneous

0.5% 0.6%

Total Revenues

100.0%

100.0%

100.0%

100.8%

Brokerage Commission Expense

0.0%

0.0%

0.3%

-0.8%

NET REVENUES

100.0%

100.0%

99.7%

100.0%

EXPENSES

Compensation expenses Payroll

56.2%

54.3%

52.5%

51.1%

Benefits

5.9%

6.0%

8.1%

7.8%

Total compensation

62.1%

60.3%

60.6%

58.9%

Selling expenses

Travel, entertainment and auto

1.9% 0.3% 2.3% 3.7% 0.2% 0.1% 1.2% 1.1% 0.2% 1.5% 0.6% 3.0% 0.0% 0.1% 0.2% 0.0%

2.2% 0.4% 2.5% 3.7% 0.2% 0.1% 0.9% 1.5% 0.3% 1.0% 0.3% 2.8% 0.0% 0.0% 0.2% 0.0%

2.0% 1.5% 3.5% 4.1% 0.7% 0.3% 0.6% 0.8% 0.3% 1.3% 1.1% 2.9% 0.1% 1.0% 0.4% 0.2%

2.0% 0.9% 2.9% 3.6% 0.6% 0.3% 0.8% 0.6% 0.2% 0.9% 0.2% 3.2% 0.1% 0.8% 0.2% 0.1%

Advertising, Promotion, and Other Selling

Total selling expenses

Operating expenses Occupancy

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance (P/C & E/O)

Professional fees

Equipt Rental/Maintenance

Bad debts

Year end 2017 includes one month of results prior to the BroadStreet partnership

Outside services Education/Training

Miscellaneous operating expense

5

Total operating expenses

11.8%

11.0%

13.8%

11.5%

M.E. Wilson Organic Revenue Change Comparison

Annual Organic Revenue Change

Quarterly Organic Revenue Change

-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

7.9%

12.7%

7.3%

11.5%

6.9%

3.9%

2.1%

-0.4%

-2.8%

-1.1%

-2.9%

2013 2014 2015 2016 2017 YTD 2018

6

Key Metric Comparison across BroadStreet Partner Agencies

October 2018

Contents 1. YTD EBITDA Margin Excluding Contingent Commission 2. YTD EBITDA Margin (with contingent commissions) 3. YTDTotal Revenue Change

4. YTD Organic Revenue Change 5. TTM Organic Revenue Change 6. Revenue per Associate 7. Compensation per Associate 8. YTD Operating Expense Components as a Percent of Revenue 9. TTM Occupancy Expenses as a Percent of TTM Revenue 10. TTM Compensation Expense Breakdown as a Percent of TTM Revenue: Payroll and Benefits

7

1. YTD EBITDA Margin, Excluding Contingent Commissions

*All partners consolidated

8

2. YTD EBITDA Margin (with contingent commissions)

*All partners consolidated

9

3. YTDTotal Revenue Change

10

4. YTD Organic Revenue Change

*All partners consolidated Correll organic impacted by change in revenue accounting policy at a major division

11

5. TTM Organic Revenue Change

*All partners consolidated Correll organic impacted by change in revenue accounting policy at a major division

12

6. Revenue Per Associate: TTM 2018 v.TTM 2017

TTM 2018 TTM 2017

*Prior Year TTM information is not yet available

13

7. Compensation Per Associate: TTM 2018 v.TTM 2017

*Prior Year TTM information is not yet available

TTM 2018 TTM 2017

14

8.YTD Operating Expense Components as a Percent of Revenue

Selling Expenses Other Operating Expenses Compensation Expenses

*All partners consolidated

15

9.TTM Occupancy Expense as a Percent of Revenue, Ex Contingents

*All partners consolidated

16

10.TTM Compensation Expense Breakdown: Payroll and Benefits Expense as a Percent of Revenue

*All partners consolidated

Payroll Expense Benefit Expense

17

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17

Made with FlippingBook - professional solution for displaying marketing and sales documents online