The first full year following its restructuring exceeded the expectations of the Alan Taylor team.A process of paring down clients to focus on key areas of expertise was met with skepticism by some staff at first, but it paid off.
"We went from 71 clients in fiscal 2004 that generated $8.9 million in revenue," says CEO Tony Signore.
For calendar 2005, the firm had boosted revenues 36%, and the future is bright.
"In fiscal 2006, we are down to 25 client partners and the revenue is expected to reach $15.5 million," Signore affirms.
The criteria for retaining or pursuing new business was that they should be category leaders.
"We call this addition by subtraction," says Signore.
Name of global CEO and US CEO (or most senior equivalent)
Tony Signore, CEO & Managing Partner
What is your current headcount, and how has it changed from this time last year?
58 as of 2/05; 80 as of 2/06
What was the percentage of staff turnover?
Less than 10%
Did you make any senior hires in 2005 (VP and higher)?
Stacey Gomoljak, VP (was Director of Communications at Mattel)
What senior staff have departed the firm?
Other senior management changes
Hired Alan Posner, Controller
Have you made any acquisitions in the past year, or merged with another agency?
How many offices do you have globally?
Headquarters in NYC and a full-service office in Charlotte, NC
Is there a particular region, US and globally, that is growing right now?
How many practice areas do you have?
Lifestyle and Sports
Of those, which ones are part of the core strategy of the agency?
Which practice areas have been phased out in the past year?
What practice areas showed the most growth?
Both Lifestyle and Sports
What is the distribution of accounts across practice areas?
Lifestyle (45%); Sports (55%)
What key account wins did you have in 2005?
DHL; Alltel; Johnny Walker; Levi Strauss Signature;
Royal Bank of Scotland; Panasonic; Microsoft
What key accounts did you lose in 2005?
Did you expand any existing accounts into new domestic or international markets?
Diageo (Johnny Walker, Globally)
Did any dormant clients start to spend with you again?
No dormant clients
What proportion of your clients are on a retainer?
Less than 20% and all retainer clients are supplemented with significant project work
Has this changed over the past year?
Retainer fees and the number of retainer clients have both increased
What was your 2005 US revenue?
$13,275,000 (calendar 2005)
What was the % change over 2004 US revenue
Did you experience top-line or bottom-line growth in the past year?
How did your performance, in terms of revenue and growth, meet expectations you had for the year?
Based on the agency's new vision and the commitment of our six managing partners who combine for more than 100 years within the ATC culture, we view a 36% growth in revenue as simply meeting our expectations. We expect this growth, which is outpacing the industry average, to continue in our next fiscal year.