Typical members of the Textile Rental Services Association continued in 2009 their year-after-year streak of outperforming the economy, the association's new Industry Performance Report indicates.
Compared with the nation's real GDP decline of 2.6%, a company with a classic TRSA business profile (dominated by linen and healthcare work) lost only 1.8% in revenue. And profits increased—from 4.8% of sales to 5.9%.
“We anticipated that the industry's revenues would decline slightly,” said Joseph Ricci, TRSA president. “Although these had grown during previous recessions, this time around, the economic decline in the industry's customer base was just too severe to sustain our members' expansion,”
“In the years leading to the recession, TRSA members committed capital to operating more efficiently. They made the tough choices and investments they needed to prepare themselves to remain profitable in a down economy. The new TRSA Industry Performance Report reflects their resilience and suggests revenue growth is ahead. There definitely appears to be light at the end of the tunnel, as our profit increases indicate.”
The report enables industry companies to compare their financial results with operations similar to theirs in these respects:
• Line of Business: typical TRSA; predominantly industrial, linen, or healthcare; or mixed (balanced) linen and industrial.
• Number of Locations: single, 2 or 3, 4 and over.
• Sales Volume: under $5 million in annual revenue; $5 million to $10 million; $10 million to $20 million; and over $20 million.
TRSA member companies submitted balance sheets, income statements, and other data to create the TRSA Industry Performance Report. Each member received a customized individual Financial Performance Report (FPR) at no charge. For example, data reported by a uniform rental specialist with only one location and $4 million in annual revenue would be included in the report's tables on industrial, single-plant, and under-$5-million companies. Likewise, this participant's FPR makes it easier for him or her to compare their own statistics with those of all respondents in these three classifications.
For each classification, the TRSA Industry Performance Report offers an income statement, balance sheet, strategic profit model ratios (to determine return on investment), financial ratios, production profile, wage and cost salary summary and employee productivity ratios.
A trend analysis section highlights key long-term performance statistics for the four business-line specialties. These sections present balance-sheet and income-statement data for the average plant in each classification for the past five years. Year-to-year strategic profit model ratios are included as well, along with total sales, pounds processed, and sales and numbers of customers per route.
2010 TRSA Industry performance report:
Each of the four specialties experienced a decrease in rental sales from 2008 to 2009. The mixed and linen sectors increased profitability, while industrial and healthcare margins declined. High plant costs in the industrial sector contributed to this segment's margin drop, while merchandise expenses accounted for the healthcare rental income dip.
Textile Rental Services Association of America
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