Each year the Business Journal identifies 100 of the fastest growing privately held companies in the county. Fifty-two companies managed to make the list again this year, while just 28 companies have made the list for three consecutive years.
No. 35 NewMark Merrill Cos. currently has the longest consecutive run on the Business Journal’s list at eight years. The Woodland Hills-based shopping center developer and manager reported 2006 revenues of $33.9 million, up 113 percent compared with 2 years earlier.
Panda Restaurant Group and United Oil, Nos. 80 and 85, respectively, have both been on the list for seven consecutive years, while No. 75 Micro Solutions Enterprises has been listed for six consecutive years.
The biggest jump on this year’s list was made by No. 17 Latitudes International. The Rancho Dominguez-based designer and manufacturer of private-label fragrances saw revenues grow by more than 200 percent over the past two years to $24.5 million. Founded in 1994, the woman-owned business employs 150 people.
One of the main reasons for the constant influx is that it’s often very tough for companies to sustain the double digit growth over an extended period. Many companies simply see revenue plateau or decline.
In rare cases, companies have a spectacular year that is the product of the economy and other factors. That’s the case of last year’s No. 1 Major Properties, which didn’t make this year’s list at all. The real estate brokerage and investment firm’s annual revenues hovered around $4 million until a number of clients sold large portfolios in 2005. That catapulted the company to the top of the 2006 list when suddenly its revenues hit $36 million. By last year, revenues were down again to a reported $3.7 million.
Other companies drop off the list when they capitalize on their success by going public. Additional capital may be used to sustain growth, or founders and early investors may be just looking for a way to cash out. That was the case with two companies on last year’s list.
Pasadena-based Guidance Software Inc., No. 27 last year, went public last December. The company, founded in 1997, reported revenues of $55.9 million in 2006, compared with $39.5 million for 2005.
Santa Monica-based Business.com, No. 37 last year, was acquired by Cary, N.C.-base RH Donnelley Corp., a publisher and distributor of print and online yellow page directories. The transaction valued at $345 million closed in August. Business.com founder and Chief Executive Jake Weinbaum was appointed president of RH Donnelley’s interactive unit.
American Apparel, the Los Angeles-based apparel manufacturer and retailer, also is going public through a merger arrangement with New York-based Endeavor Acquisition Corp. The nearly $400 million deal is expected to close by the end of this year, which would knock it off the 2007 list. American Apparel was founded in 1998 and has appeared on the Business Journal’s list for five consecutive years.
