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Index of Private Company Revenue Takes First Dip in Eight Months
Chicago, IL – March 18, 2008 – The Private Company Index (PCI) for month-end February 2008 reflects a 2.96% decline in revenue performance from this diverse portfolio of North American companies. Key capital markets indicators (Dow Jones Industrial Average, NASDAQ 100 and the S&P Small Cap 600) each ended the month down between 3-5%.
Stephen H. Watkins, CEO of PCI sponsor company, Entrex, explains this data; “The decline in the PCI is a firm indication that there is real softness in the economy. Consumers are cautious and this caution is leading to a decline in the revenues of private business owners. It is important to note that this is the first revenue decline in the PCI sector ($1-250 million in revenue private companies) in eight months – while traditional stock market indices are down for the fourth month in a row.”
Mr. Watkins went on to point out that, “The decline of the major stock indices likely predicted a slowdown in the economy. This slowdown is finally showing up as decline in the revenue of private companies measured in the PCI.”
PCI portfolio company CEOs who experienced a drop in revenue for February cited various reasons, including: the decline in the value of the US dollar, the rise in commodity prices and the dampening effect on consumer sentiment of a depressed housing sales/home equity market.
Tim Staub, CEO of Richmond, Virginia, based Elko Products, shares his story; “We sell to distributors, who sell to contractors, who service the home repairs market. We’re feeling a triple-play punch. A severely depressed home market and declining equity means fewer home repairs being contracted. Huge recessionary fears mean slowed spending and fewer home repairs being contracted. The fact that this is a US election year seems to be adding to the uncertainty and not speeding an economic resolution. Add to that the new highs for commodity metals prices and it’s easy to see why a lot companies in our industry sector are finding ways to brace ourselves.”
About the Private Company Index:
Published monthly by Entrex, Inc., the Private Company Index (PCI) is a proprietary benchmarking tool that measures revenue performance and activity in the $1-$250 million private company sector. The PCI is recognized by investment professionals and financial media as a leading and authoritative source on private company revenue performance. www.privatecompanyindex.com.
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