The 2010 PROFIT 100 Frequently Asked Questions (FAQ)


 
Benefits of participation
  1. What is the PROFIT 100?

    The PROFIT 100 is the authoritative ranking of Canada's top private and public companies by five-year revenue growth. Results of our annual survey, with stories profiling these growth leaders, are published in the June issue of PROFIT.

    Quebec-based winners will also be featured in L'actualité magazine's ranking of les Leaders de la croissance.

  2. Why should my company enter the PROFIT 100?

    Past PROFIT 100 companies report they have benefited in many ways from their appearance on the list. We honour winning firms at an exclusive CEO Summit. Plus, national and local publicity, increased employee motivation, industry accolades and contacts with potential new customers are common benefits of participation.
Ranking methodology
  1. How are the PROFIT 100 ranked?

    The PROFIT 100 ranks firms by their percentage sales growth over the past five years. For the 2010 ranking, participating firms must reveal their gross revenues for 2004 and 2009 (or 2005 and 2010, where 2010 results are available).

  2. How is revenue recognized for the ranking?

    PROFIT defines gross annual revenue per generally accepted accounting principles (GAAP). Sales that cannot be booked as revenue under GAAP do not count for the purposes of the PROFIT 100. (For instance, a travel agency can claim as revenue its commissions on airline tickets sold, but not the total dollar value of the tickets.) Gross revenue must be reported net of returns and discounts. Franchisors must report corporate revenue only.

  3. How are candidates' claims verified?

    All candidates must submit complete financial statements for the fiscal periods used to calculate the five-year growth rate.

Eligibility requirements
  1. Who can enter the PROFIT 100?

    To qualify for the PROFIT 100 a company must:

    • Be headquartered in Canada with significant operations in Canada;

    • Be independent (i.e., not a division or subsidiary, except of a holding company);

    • Have more than 50% Canadian ownership if a privately owned company; public companies with 50% or less Canadian ownership will be judged by PROFIT on a case-by-case basis;

    • Operate at arm's length from related companies that have also declared their candidacy for the ranking (see No. 10).

  2. What are the revenue requirements?

    There is no maximum revenue requirement. Minimum revenue requirements apply as follow:
    • In the most recent fiscal year used in the five-year growth calculation (i.e., 2009/10): companies must have revenue of $2 million or more.

    • In the base year used in the five-year growth calculation (i.e., 2004/05): Qualifying companies must have been generating operating revenue. Any companies with revenue of less that $200,000 will have their revenue of that period lifted to $200,000 for the purpose of calculating five-year growth that is not grossly exaggerated by immaterial differences in the base-year revenues of otherwise equal candidates; for instance, a company that grows from $1 to $2 million would have a higher growth rate than a company that grows from $2 to $3 million.

    Here's a sample calculation. A company that reports 2009 revenue of $2.2 million and 2004 revenue of $100,000 would be assigned the minimum 2004 revenue of $200,000, resulting in a five-year growth rate of 1,000%: (2,200,000 - 200,000) / 200,000) * 100 = 1,000%.

  3. Are non- and not-for-profit enterprises eligible?

    Non- and not-for-profit organizations are encouraged to enter, although PROFIT will consider such candidates on a case-by-case basis.

  4. Are franchisors or franchisees eligible for the PROFIT 100?

    Yes. However, franchisors are ranked by corporate revenue only; they should not report system-wide sales. Franchisees should report the gross revenue of their company or network.

  5. Can related companies apply separately?

    In the case of related firms that do not operate at arm's length from one another, only one of those companies is eligible. Also, divisions and subsidiaries are ineligible.

How to enter
  1. How do I enter my company in the PROFIT 100?

    Simply fill out the short electronic ballot. Contact information appears on the entry form.

  2. How much does it cost to enter the PROFIT 100?

    There is no entry fee for the program.

  3. Should we report fiscal or calendar revenues?

    Fiscal. For the 2010 ranking, you must report revenues from the most recent fiscal year completed through February 28, 2010 and for the fiscal year five years prior. For instance, the PROFIT 100 will rank firms with a September 30 year-end on the basis of the fiscal years ending September 30, 2009 and September 30, 2004. In the case of a January 31 year-end, we require revenues as of January 31, 2010 and January 31, 2005.

  4. What if my fiscal year end has changed in the past five years?

    We encourage you to enter the PROFIT 100. Each case will be considered individually.

  5. What if my company reports in U.S. dollars?

    Submit your revenue to PROFIT in whatever currency you used for reporting in the corresponding year on the entry form.

  6. What happens after I enter the PROFIT 100?

    If your company's growth rate appears to place you on our list, we will contact you for an interview and to verify financial information.

Terms and conditions
  1. Can my company be disqualified?

    PROFIT and L'actualité reserve the right to remove any company from the PROFIT 100 and/or les Leaders de la croissance ranking[s] at any time if PROFIT or L'actualité determine that inclusion of that company would discredit PROFIT, L'actualité or their respective ranking programs. PROFIT and L'actualité also reserve the right to withdraw invitations to events related to the rankings.

For more information
  1. I still have a question. Who do I call?

    If you need more information, please call our toll-free PROFIT 100 hotline at 1-800-713-GROW (1-800-713-4769).