The Private Company Report: Private Companies See Double Digit Sales Growth
New York, NY, April 30, 2013— Tuesday marked the release of the latest Private Company Report by Sageworks. Chairman Brian Hamilton unveiled these numbers Tuesday morning at The Private Company Outlook, an event hosted by Sageworks in New York.
Private companies in the United States saw annual sales growth of more than 10 percent in the period ended March 2013, slightly above the previous period and the growth seen one year ago. On average, private-company sales increased 10 percent in the period ended February 2013 and 10.1% in the period ended March 2012.
Based on financial statements from the six months ended March 2013, the average private company had a 7.3 percent net profit margin compared to 4.5 percent a year earlier. Net profit margin is adjusted to exclude taxes and include owner compensation in excess of their market-rate salaries. These adjustments are commonly made to private-company financials in order to provide a more accurate picture of the companies’ operational performance.
Hamilton pointed out the strong performance of private construction companies, noting that the construction resurgence may not be a flash in the pan. “It looks as if construction is back to stay,” said Hamilton, “at least for now.”
Hamilton continued, “The real estate industry was the worst hit industry of the last recession and the last to rebound. The construction industry has grown at a very healthy rate for the past two years, which is encouraging.”
Sageworks releases a monthly report on the state of privately held companies in America. It includes metrics on the average U.S. privately held company, as well as the performance of notable sectors and industries. The full report, including sector breakout and further analysis, can be found here.
Raleigh, NC-based Sageworks is a financial information company that provides risk management solutions to financial institutions. Sageworks’ data and applications are used by thousands of financial professionals across North America. The company has been named to the Inc. 500 list of the fastest growing privately held companies in the U.S. and to the Deloitte Technology Fast 500.