Taylor: Agency Business Report 2007

Taylor unveiled a new brand and logo in 2007 as it continued to refine its emphasis on entertainment, lifestyle, and sports PR.

Taylor unveiled a new brand and logo in 2007 as it continued to refine its emphasis on entertainment, lifestyle, and sports PR.

Less was more for the former Alan Taylor Communications, as Tony Signore, CEO and managing partner, says the client base has been trimmed of short-term contract relationships in lieu of long-term commitments to 22 global brands, including MasterCard, Microsoft, Diageo, Allstate, and Staples.

"We [can now] play a more integral role in [clients'] overall marketing mix," Signore says. Forays into Europe, new operations on the West Coast, and an acquired Hispanic PR arm rounded out a year that saw 36% in revenue gains.

Principal: Tony Signore, CEO and managing partner
Ownership: Independent
Subsidiary agencies: Taylor PRimero
Offices: Four in the US; one in London

Staff
Swelled by 51.5% to 100 from 66 in 2005. Reported 4.7% turnover, while key hires included VPs Jessica Blue (from French/ West/Vaughan), and Michael Gross (Glo- bal Consulting Group).

Structural changes
Acquired Hispanic marcomms firm OMMPR; opened LA and London offices; inked alliances with Leader's Edge and Second Quadrant Solutions (professional development/ leadership training), and with historically black colleges and universities.

Regional performance
Significant Southeast growth, with Charlotte, NC, posting 47% gains on revenue to $4.5 million. Revenue outside the US was driven mainly by the Winter Games, FIFA World Cup, and Formula One.

Practice areas
Sports (53%), entertainment (28%), and food and beverage (19%). The firm launched a new multicultural practice.

Accounts
New wins included Bombardier, Subway, Levi Strauss Signature, and International Speedway Corp. Globally, extended programs for MasterCard, Gillette, Diageo, and Microsoft into Europe.

Financial performance
Posted a 36% increase to $18,006,000 in revenue. Year-over-year growth of $4.7 million split between $3.6 million (organic) and $1.1 million (new business).

Agency's full questionnaire follows below:

Name of parent division/company (enter both where applicable)
None

Name of subsidiary companies
Taylor PRimero

Has your ownership status changed in the past year?
No

Name of global CEO and US CEO
Tony Signore, CEO & Managing Partner

What is your current headcount
100

How has your headcount changed since FY 2005?
At 12/31/2005 headcount was 66; headcount has increased 51.5%.

What was the percentage of staff turnover in 2006?
4.7%

Did you make any senior hires in 2006 (VP and higher)? Please state name, title (and unique responsibilities, if applicable), and previous company
Leah West – creative director (Meredith Corporation)
Jairo Hoyos – it director (AW Systems)
Carlos De Leon - account director (Microsoft)
Jessica Blue – VP (French West Vaughn)
Michael Gross – VP (The Global Consulting Group)

What senior staff have departed the firm? Please state name and previous title
At the senior level, no senior staff turnover.

Please list any other senior management changes, including restructures and significant, senior-level promotions
None

Have you made any acquisitions in the past year, or merged with another agency?
Acquired OMMPR, a Los Angeles-based Hispanic marketing communications company, in 2006.

How many wholly owned offices do you have globally? Please list with agency names and cities under the following headings
• North America
o New York, NY
o Charlotte, NC
o Los Angeles, CA
o OMMPR – Los Angeles-based Hispanic marketing communications company with over 20 years experience in the Hispanic market.
• Europe
o London, UK  

How many partly owned offices or affiliates do you operate globally? Please list agency names and cities under the following headings
None

What offices opened in 2006 or early 2007? (State when)
Alan Taylor Communications opened offices in the following cities: • Los Angeles, CA (December 2006) • Taylor PRimero in Los Angeles, CA (December 2006) • London, UK (December 2006)

What offices closed in 2006 or early 2007? (State when)
None

Which regions in the US, are growing, and why?
The southeast region experienced significant growth in 2006. The Charlotte office earned revenue of $4.5 million – a 47% increase over 2005. Much of the year-over-year growth was organic driven, especially from Alltel, Duofold, and NASCAR. Furthermore, the region realized extensive growth from NASCAR-sponsored campaigns from Gillette, Alltel, Crown Royal, and Levi Strauss Signature.

How many practice areas do you have? Please list.
• Sports • Entertainment • Food & Beverage • Multi-Cultural

Which ones are new?
Multi-Cultural

Of those, which ones are part of the core strategy of the agency?
Each play an integral role in the agency’s growth and success.

Which practice areas have been phased out in the past year?
None

What practice areas showed the most growth? Please elucidate
All practice areas reported double digit growth in 2006.

Which practice areas showed the least growth? Please elucidate
None

What is the distribution of accounts across practice areas?
The following table details the distribution of practice areas: Entertainment/Cultural 28% Food & Beverage 19% Sports 53% Total 100%

What key account wins did you have in 2006? If based outside the US, or are global, please state regions
Bombardier, Subway, Levi Strauss Signature, and International Speedway Corporation

Of your 2006 wins, how many were across three or more countries?
None

What key accounts did you lose in 2006? If based outside the US, or are global, please state regions.
None

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate.
ATC continues to extend all client programs nationwide. Globally, ATC extended its programs for MasterCard, Gillette, Diageo, and Microsoft into the European market.

What proportion of your clients are on a retainer? Has this changed over the past year?
Approximately 36% and all retainer clients are supplemented with significant project work. Both retainer and project work have increased.

What was your 2006 global (including US) revenue? (Figure should match the figure entered into the separate Rankings Form, if submitting.)
$18,006,000

What was the % change over 2005 global revenue
36%

What was your global profit margin in 2006
Agency declined to give information.

What was your 2006 US revenue? (Figure should match the figure entered into the separate Rankings Form, if submitting.)
$18,006,000

What was the % change over 2005 US revenue
36%

What was your US profit margin in 2006?
Cannot provide information; proprietary data.

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate.
ATC experienced significant top-line and bottom-line growth in 2006. New business wins plus increases from existing clients increased revenue and operating profit. Moreover, the agency experienced an insignificant amount of client turnover. This combination resulted in double digit revenue and operating profit growth.

How much of your growth was organic, and how much was due to new business won?
The year-over-year revenue growth amounted to $4.7 million. Of this amount, $3.6 million was due to organic growth and $1.1 million was due to new business.

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
CEO and Managing Partner, Tony Signore, continues to expect double-digit growth in revenue based on the agency’s vision, which calls for ATC to be exclusively aligned with category leading consumer brands.

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