Survey Participants 1

Results – General 42008 Comparatives – All Generals 5Generals By Size 17 Under $10 Million Revenue 18 $10 to $25 Million Revenue 30 Over $25 Million Revenue 42

Results – Subs 542008 Comparative Subs – All Trades 55Subs – By Trade 67 Electrical Contractors 68 Steel Fabricators/Erectors 80 Underground Contractors 92 Mechanical and HVAC Contractors 104 Concrete Contractors 116Subs – By Size 128 Under $2 Million Revenue 129 $2 to $10 Million Revenue 139 $10 to $25 Million Revenue 151 Over $25 Million Revenue 163

Acknowledgements 175

VonLehman & Company Inc.2008 Annual Survey of

Greater Cincinnati ContractorsTable of Contents

2

Survey Participants

3

Type of Contractor

10%8%

3%

9%

6%

36%

28%

Underground

Electrical

Steel Fab./Erectors

Mechanical & HVAC

Concrete

All Other Trades

Generals

33%

67%

UnionNon-Union

Union vs. Non-Union

4

Union vs. Non-Union

2004 2005 2006 2007 2008

Union 39

%

Non-Union 61%

Union 47

%

Non-Union 53%

Union 48

%

Non-Union 52%

Union 4

2%

Non-Union 58%

Union 33

%

Non-Union 67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5

Results - Generals

6

2008 Comparative – All Generals

7

0.6%

3.2%3.1%

2.3%

1.7%

2.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

Net Earnings to RevenueGenerals (by Size)

8

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

Gross ProfitGenerals (by Size)

9

Operating Expenses to RevenueGenerals (by Size)

19.4%

8.3%

5.7%

11.2%

4.3%

7.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

10

Operating Income to RevenueGenerals (by Size)

4.6%

3.3%

3.1%

3.7%

1.6%

2.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of

net sales. A contractor becomes healthier as this ratio becomes higher.

11

Current RatioGenerals (by Size)

1.5

1.4

1.31.4

1.21.3

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

12

Age of Accounts Receivable in DaysGenerals (by Size)

64.0

58.0

53.0 58

.7

48.0

46.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

13

Retainage to Total Accounts ReceivableGenerals (by Size)

13.3%

19.1%

15.2% 16

.3%

14.3%

9.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

14

Cash as a % of Total AssetsGenerals (by Size)

18.8%

24.1%

20.0% 21

.4% 21.6%

24.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

15

Cost in Excess/Billings in ExcessGenerals (by Size)

99.1%

30.0%

22.2%

50.3%

19.7%

39.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Under $10M

$10-$25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

16

Debt to EquityGenerals (by Size)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

17

Average Months in BacklogGenerals (by Size)

2.0

7.28.8

5.9

14.2

6.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Under $10M

$10-25M

Over $25M

Avg Cinti Genera

l

CFMA Midwest

CFMA BIC < $50M

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

18

GeneralsBy Size

19

Under $10 Million Revenue

20

Net Earnings to RevenueUnder $10M

0.9% 1.3

%

2.8%

5.2%

0.6% 2.2

%2.3

%

3.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

21

Gross ProfitUnder $10M

13.4%

16.7%

19.1%

17.3%

23.9%

18.1%

14.9%

12.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

22

Operating Expenses to RevenueUnder $10M

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

23

Operating Income to RevenueUnder $10M

2.5%

2.2%

5.9%

6.6%

4.6%

4.4%

3.7%

2.5%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of

net sales. A contractor becomes healthier as this ratio becomes higher.

24

Current RatioUnder $10M

1.6

2.3

1.6 1.8

1.51.8

1.4 1.4

0.0

0.5

1.0

1.5

2.0

2.5

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

25

Age of Accounts Receivable in DaysUnder $10M

64

48

54

31

64

5259

52

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that receivables

are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

26

Retainage to Total Accounts Receivable

Under $10M

32.0%

25.0%

13.6%

39.3%

13.3%

24.6%

16.3%

4.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

27

Cash as a % of Total AssetsUnder $10M

17.0%

28.0%

24.5%

32.3%

18.8%

24.1%

21.4% 22

.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

28

Cost in Excess/Billings in ExcessUnder $10M

19.0%

58.0%

22.6%

0.7%

99.1%

39.9%

50.3% 55

.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

29

Debt to EquityUnder $10M

1.7

0.9

1.8

1.1

1.6

1.4

2.3 2.3

0.0

0.5

1.0

1.5

2.0

2.5

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

30

Average Months in BacklogUnder $10M

3.9

9.6

6.1

2.3 2.0

4.95.9

9.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA Under $10M

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

31

$10 to $25 MillionRevenue

32

Net Earnings to Revenue$10 to $25M

0.6%

-0.5%

0.7%

3.0%

3.2%

1.4%

2.3%

3.2%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

33

Gross Profit$10 to $25M

9.5%

9.1%

9.5% 10

.7% 11.6%

10.1%

14.9%

11.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

34

Operating Expenses to Revenue$10 to $25M

7.4%

8.8%

6.1% 6.6

%

8.3%

7.4%

11.2%

8.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

35

Operating Income to Revenue$10 to $25M

2.1%

0.3%

3.4%

4.1%

3.3%

2.6%

3.7%

3.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of

net sales. A contractor becomes healthier as this ratio becomes higher.

36

Current Ratio$10 to $25M

1.2 1.2 1.2

1.4 1.4

1.3

1.4 1.4

1.1

1.2

1.2

1.3

1.3

1.4

1.4

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

37

Age of Accounts Receivable in Days$10 to $25M

64 65

19

66

5854

59

44

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

38

Retainage to Total Accounts Receivable

$10 to $25M

19.6%

18.4%

27.9%

17.0%

13.3%

19.2%

16.3%

8.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

39

Cash as a % of Total Assets$10 to $25M

12.0%

11.2%

16.6%

12.5%

24.1%

15.3%

21.4%

24.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

40

Cost in Excess/Billings in Excess$10 to $25M

56.3%

85.4%

54.4%

22.6% 30

.0%

49.7%

50.3%

41.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

41

Debt to Equity$10 to $25M

3.5

5.7

4.95.9

2.5

4.5

2.3

3.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

42

Average Months in Backlog$10 to $25M

5.9

10.0

5.25.9

7.26.8

5.9

7.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA $10-25M

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

43

Over $25 MillionRevenue

44

Net Earnings to RevenueOver $25M

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

45

Gross ProfitOver $25M

13.8%

11.7%

13.5%

9.1%

8.8%

11.4%

14.9%

9.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

46

Operating Expenses to RevenueOver $25M

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

47

Operating Income to RevenueOver $25M

4.0%

2.8%

4.6%

3.0%

3.1%

3.5% 3.7

%

2.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of

net sales. A contractor becomes healthier as this ratio becomes higher.

48

Current RatioOver $25M

1.1

1.4

1.3

1.21.3 1.3

1.4

1.3

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

49

Age of Accounts Receivable in DaysOver $25M

48.0

72.0

69.0

53.0

53.0 59

.059

.0

48.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

50

Retainage to Total Accounts Receivable

Over $25M

15.0%

12.0%

15.7%

11.9%

15.2%

14.0%

16.3%

10.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

51

Cash as a % of Total AssetsOver $25M

8.0%

16.0%

14.8%

10.5%

19.9%

13.8%

21.4%

24.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

52

Cost in Excess/Billings in ExcessOver $25M

13.0%

53.0%

37.7%

47.8%

22.2%

34.7%

50.3%

41.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

53

Debt to EquityOver $25M

2.6 2.4

2.93.4

2.52.8

2.3

3.1

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

54

Average Months in BacklogOver $25M

5.8

8.8

5.9

5.1

8.8

6.9

5.9

7.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

20042005

20062007

2008

5 Year Average

Average Cinti Generals

CFMA over $25M

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

55

Results – Subs

56

2008 Comparative – Subs – All Trades

57

Net Earnings to RevenueSubs (by Trade)

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

58

Gross ProfitSubs (By Trade)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

59

Operating Expenses to Revenue

Subs (By Trade)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

60

Operating Income to RevenueSubs (By Trade)

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

61

Current RatioSubs (By Trade)

0.0

0.5

1.0

1.5

2.0

2.5

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

62

Age of Accounts Receivable in Days

Subs (By Trade)

0

10

20

30

40

50

60

70

80

90

100

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that receivables

are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

63

Retainage to Total Accounts

Receivable Subs (By Trade)

0%

5%

10%

15%

20%

25%

30%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

64

Cash as a % of Total AssetsSubs (By Trade)

0%

5%

10%

15%

20%

25%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

65

Cost in Excess/Billings in Excess

Subs (By Trade)

0%

50%

100%

150%

200%

250%

300%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

66

Debt to EquitySubs (By Trade)

0.0

0.5

1.0

1.5

2.0

2.5

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

67

Average Months in BacklogSubs (By Trade)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

68

Subs – By Trade

69

Electrical Contractors

70

Net Earnings to RevenueElectrical Contractors

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

71

Gross ProfitElectrical Contractors

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

72

Operating Expenses to Revenue

Electrical Contractors

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

73

Operating Income to RevenueElectrical Contractors

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

74

Current RatioElectrical Contractors

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

75

Age of Accounts Receivable in Days

Electrical Contractors

0

10

20

30

40

50

60

70

80

90

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

76

Retainage to Total Accounts

Receivable Electrical Contractors

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

77

Cash as a % of Total AssetsElectrical Contractors

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

78

Cost in Excess/Billings in Excess

Electrical Contractors

0%

50%

100%

150%

200%

250%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

79

Debt to EquityElectrical Contractors

0.0

0.5

1.0

1.5

2.0

2.5

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

80

Average Months in BacklogElectrical Contractors

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

81

Steel Fabricators/Erectors

82

Net Earnings to RevenueSteel Fabricators/Erectors

8.7%

10.8%

4.2%

5.9% 6.3

% 7.2%

0.9%

5.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Steel

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

83

Gross ProfitSteel Fabricators/Erectors

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

84

Operating Expenses to Revenue

Steel Fabricators/Erectors

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

85

Operating Income to RevenueSteel Fabricators/Erectors

11.1% 11

.2%

4.2%

7.3% 7.9

% 8.3%

2.5%

5.2%

0%

2%

4%

6%

8%

10%

12%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Steel

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

86

Current RatioSteel Fabricators/Erectors

0.0

0.5

1.0

1.5

2.0

2.5

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

87

Age of Accounts Receivable in Days

Steel Fabricators/Erectors

0

20

40

60

80

100

120

140

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

88

Retainage to Total Accounts

Receivable Steel Fabricators/Erectors

12%

22%

11%

26% 27

%

20%

15%

10%

0%

5%

10%

15%

20%

25%

30%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Steel

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

89

Cash as a % of Total AssetsSteel Fabricators/Erectors

1%

7%

14%

1% 4%5%

15%

13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Steel

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

90

Cost in Excess/Billings in Excess

Steel Fabricators/Erectors

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

91

Debt to EquitySteel Fabricators/Erectors

0.0

0.5

1.0

1.5

2.0

2.5

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

92

Average Months in BacklogSteel Fabricators/Erectors

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

93

Underground Contractors

94

Net Earnings to RevenueUnderground

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

95

Gross ProfitUnderground

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

96

Operating Expenses to RevenueUnderground

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

97

Operating Income to RevenueUnderground

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

98

Current RatioUnderground

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

99

Age of Accounts Receivable in Days

Underground

0

10

20

30

40

50

60

70

80

90

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

100

Retainage to Total Accounts

Receivable Underground

0%

5%

10%

15%

20%

25%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

101

Cash as a % of Total AssetsUnderground

0%

2%

4%

6%

8%

10%

12%

14%

16%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

102

Cost in Excess/Billings in Excess

Underground

0%

20%

40%

60%

80%

100%

120%

140%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

103

Debt to EquityUnderground

0.0

0.5

1.0

1.5

2.0

2.5

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

104

Average Months in BacklogUnderground

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

105

Mechanical and HVAC Contractors

106

Net Earnings to RevenueMechanical and HVAC

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

107

Gross ProfitMechanical and HVAC

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

108

Operating Expenses to Revenue

Mechanical and HVAC

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

109

Operating Income to RevenueMechanical and HVAC

0%

1%

2%

3%

4%

5%

6%

7%

8%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

110

Current RatioMechanical and HVAC

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

111

Age of Accounts Receivable in Days

Mechanical and HVAC

0

10

20

30

40

50

60

70

80

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

112

Retainage to Total Accounts

Receivable Mechanical and HVAC

0%

2%

4%

6%

8%

10%

12%

14%

16%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

113

Cash as a % of Total AssetsMechanical and HVAC

0%

5%

10%

15%

20%

25%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

114

Cost in Excess/Billings in Excess

Mechanical and HVAC

0%

10%

20%

30%

40%

50%

60%

70%

Computation: Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

115

Debt to EquityMechanical and HVAC

0.0

0.5

1.0

1.5

2.0

2.5

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

116

Average Months in BacklogMechanical and HVAC

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

117

Concrete Contractors

118

Net Earnings to RevenueConcrete

7.1%

5.7%

7.9%

3.3%

6.0%

0.9%

6.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

20052006

20072008

4 Yr. Average

Avg. Cinti S

ubs

CFMA Concrete

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

119

Gross ProfitConcrete

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

120

Operating Expenses to Revenue

Concrete

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

121

Operating Income to RevenueConcrete

0%

2%

4%

6%

8%

10%

12%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

122

Current RatioConcrete

0.0

0.5

1.0

1.5

2.0

2.5

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

123

Age of Accounts Receivable in Days

Concrete

0

10

20

30

40

50

60

70

80

90

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

124

Retainage to Total Accounts

Receivable Concrete

0%

5%

10%

15%

20%

25%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

125

Cash as a % of Total AssetsConcrete

0%

5%

10%

15%

20%

25%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

126

Cost in Excess/Billings in ExcessConcrete

0%

50%

100%

150%

200%

250%

300%

350%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

127

Debt to EquityConcrete

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

128

Average Months in BacklogConcrete

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

129

Subs – By Size

130

Under $2 Million Revenue

131

Net Earnings to RevenueUnder $2M

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

132

Gross ProfitUnder $2M

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

133

Operating Expenses to Revenue

Under $2M

0%

5%

10%

15%

20%

25%

30%

35%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

134

Operating Income to RevenueUnder $2M

7.3% 7.4

%

3.2%

11.3%

-4.0%

5.0%

2.5%

3.8%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Subs <$10M

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

135

Current RatioUnder $2M

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

136

Age of Accounts Receivable in Days

Under $2M

0

10

20

30

40

50

60

70

80

90

100

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

137

Cash as a % of Total AssetsUnder $2M

0%

5%

10%

15%

20%

25%

30%

35%

40%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

138

Debt to EquityUnder $2M

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

139

Average Months in BacklogUnder $2M

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

140

$2 to $10 Million Revenue

141

Net Earnings to Revenue$2 to $10M

3.2%

5.3%

4.2%

3.7%

0.9%

3.5%

0.9%

4.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Subs <$10M

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

142

Gross Profit$2 to $10M

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

143

Operating Expenses to Revenue$2 to $10M

0%

5%

10%

15%

20%

25%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

144

Operating Income to Revenue$2 to $10M

0%

1%

2%

3%

4%

5%

6%

7%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

145

Current Ratio$2 to $10M

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

146

Age of Accounts Receivable in Days

$2 to $10M

0

10

20

30

40

50

60

70

80

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

147

Retainage to Total Accounts

Receivable $2 to $10M

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

148

Cash as a % of Total Assets$2 to $10M

0%

2%

4%

6%

8%

10%

12%

14%

16%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

149

Cost in Excess/Billings in Excess$2 to $10M

0%

20%

40%

60%

80%

100%

120%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

150

Debt to Equity$2 to $10M

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

151

Average Months in Backlog$2 to $10M

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

152

$10 to $25 Million Revenue

153

Net Earnings to Revenue$10 to $25M

3.8%

4.6%

3.5% 3.6

%

1.6%

3.4%

0.9%

4.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Subs $10-25M

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

154

Gross Profit$10 to $25M

14.5%

15.0%

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

19.5%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

155

Operating Expenses to Revenue$10 to $25M

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

156

Operating Income to Revenue$10 to $25M

0%

1%

2%

3%

4%

5%

6%

7%

8%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of net

sales. A contractor becomes healthier as this ratio becomes higher.

157

Current Ratio$10 to $25M

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

158

Age of Accounts Receivable in Days

$10 to $25M

0

20

40

60

80

100

120

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

159

Retainage to Total Accounts

Receivable $10 to $25M

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

160

Cash as a % of Total Assets$10 to $25M

0%

2%

4%

6%

8%

10%

12%

14%

16%

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

161

Cost in Excess/Billings in Excess

$10 to $25M

0%

20%

40%

60%

80%

100%

120%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

162

Debt to Equity$10 to $25M

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

163

Average Months in Backlog$10 to $25M

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

164

Over $25 Million Revenue

165

Net Earnings to RevenueOver $25M

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Computation:This ratio is computed by dividing earnings before taxes by revenue

Net EarningsRevenue

Interpretation:This ratio shows a company’s net income before tax, and is typically one of the most relied upon measures of a company’s profitability by users of the company’s financial statements.

166

Gross ProfitOver $25M

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Computation:This ratio is computed by dividing gross profit by revenue

Gross ProfitRevenue

Interpretation:This ratio shows the profit generated by jobs, including reductions for not only direct job costs, but indirect job costs as well.

167

Operating Expenses to Revenue

Over $25M

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Computation:Operating (selling and administrative) expenses divided by revenue

Operating ExpensesRevenue

Interpretation:This graph depicts operating (selling and administrative) expenses as a percentage of net sales. One benchmark for healthy contractors puts the ratio at 6%.

168

Operating Income to RevenueOver $25M

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Computation: Operating income divided by revenueOperating Income

RevenueInterpretation:This graph depicts operating income as a percentage of

net sales. A contractor becomes healthier as this ratio becomes higher.

169

Current RatioOver $25M

0.00.10.20.30.40.50.60.70.80.91.01.11.21.31.41.51.61.71.8

Computation:Total current assets divided by total current liabilities

Current AssetsCurrent Liabilities

Interpretation:This ratio is a rough indication of the company’s ability to service its current obligations. Generally, the higher the current ratio, the greater a company’s ability to pay its current obligations. However, the composition and quality of current assets is a critical factor in the analysis of an individual company’s liquidity.

170

Age of Accounts Receivable in Days

Over $25M

0

10

20

30

40

50

60

70

80

Computation:Accounts receivable divided by sales, multiplied 365 days Accounts Receivable x 365

SalesInterpretation:This figure expresses the average time in days that

receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies in accounts receivable. A comparison of a company's daily receivables may indicate the extent of a company's control over credit and collections. The terms offered by a company to its customers, however, may differ from terms within the industry and should be taken into consideration.

171

Retainage to Total Accounts

Receivable Over $25M

0%

5%

10%

15%

20%

25%

30%

Computation:A/R retainage divided by total accounts receivable

A/R RetainageTotal Accounts Receivable

Interpretation:This ratio depicts the amount of receivables retained by owners on work performed in hard dollar contracts, compared to total accounts receivable.

172

Cash as a % of Total AssetsOver $25M

1%

3%

7%

19%

12%

8%

15%

14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

20042005

20062007

2008

5 Yr. Average

Avg. Cinti S

ubs

CFMA Subs $25-50M

Computation: Cash divided by total assets

CashTotal Assets

Interpretation:This ratio shows how much cash the company keeps on hand, as compared to its total assets.

173

Cost in Excess/Billings in ExcessOver $25M

0%

10%

20%

30%

40%

50%

60%

Computation:Cost in excess divided by billings in excess

Cost in ExcessBillings in Excess

Interpretation:This ratio measures the extent to which the company is able to progress bill its open jobs. The lower the ratio, the more quickly the company has been able to bill its customers as work progresses, and the sooner it should be able to collect its receivables.

174

Debt to EquityOver $25M

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Computation: Total liabilities divided by total net worth

Total LiabilitiesTotal Net Worth

Interpretation:This ratio expresses the relationship between capital contributed by creditors to that contributed by owners. It also expresses the degree of protection provided by the owners for the creditors. The higher the ratio, the greater the risk being assumed by creditors. A lower ratio generally indicates greater long-term financial safety. A common, rule-of-thumb standard for this ratio of 3 to 1 or better is often considered acceptable.

175

Average Months in BacklogOver $25M

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Computation:Twelve months per year times backlog divided by revenue

Backlog x 12Revenue

Interpretation:This ratio measures the number of months of work that a company has in backlog, based upon its most recent sales experience. Normally, the higher the figure the better, as long as the contractor has adequate resources (working capital and equity) to handle the increased backlog.

176

•The participants for the survey were selected from several databases listing contractors located in the Greater Cincinnati area. Financial information of 99 contractors is included, 28 of which are general contractors, and 71 that are subcontractors.

•The percentages depicted in all of these graphs are dependent upon how well the specific respondents in each size range or trade type did for the year, and may vary if another survey were performed, depending on the respondents to that survey.

•All Cincinnati averages shown in the survey are based on the weighted average as determined by the number of respondents in each category.

•Each category was deemed to have a population large enough to preserve of anonymity of all respondents involved.

ACKNOWLEDGEMENTS

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ACKNOWLEDGEMENTS

•In some instances, respondents that were deemed to be outliers were eliminated from the graphical presentation so as to protect the integrity of the data presented.

•In addition, the results of the survey were compared to the results of the Construction Financial Management Association’s (CFMA) 2008 Construction Industry Annual Financial Survey for the Midwest Region, specific industries and size, as well as the overall best in class.

©2008 by the CONSTRUCTION FINANCIAL MANAGEMENT ASSOCIATION. All rights reserved. Reprinted with the permission of CFMA.