January 2011 – As we look back upon 2010, we are pleased that our portfolio companies achieved success that dramatically outpaced the lackluster rate of growth in the economy at large. We believe that our portfolio's success, which is largely a consequence of substantial organic growth, is directly related to key elements of our investment philosophy:
- Conservative capital structures that provide significant liquidity for investments in growth strategies
- Consistent focus on long term value creation rather than month-to-month EBITDA variation
- Strong support for organic growth initiatives notwithstanding soft macroeconomic conditions
Let us update you on a few highlights of 2010, which are representative of the success enjoyed across our entire spectrum of portfolio companies:
maxIT Healthcare reached new highs in revenues and profitability, exceeding the Company's prior records in each category by over 40%. maxIT is a leading national provider of IT consulting services to hospitals.
IntriPlex Technologies (IPT) achieved record revenue and profit levels, surpassing previous peak levels in each category by over 50%. IPT designs, develops, and manufactures specialized, high precision, very high unit volume components used in hard disk drives and medical devices.
Creative Circle grew by more than 50% compared to the prior year and set all-time records in both revenues and earnings. The Company is one of the largest creative talent staffing firms in the US.
Secure Mission Solutions increased both revenues and profits to record levels, while becoming one of the largest pure-play providers of services that defend government operations against cyber attacks and data security breaches.
Cymetrix increased revenues and earnings by more than 50%, hitting record levels in both categories, while strengthening its position as a leader in providing comprehensive revenue cycle management services to hospitals.
Silverado Senior Living (SSL) attained record highs in revenues, operating cash flow, and number of community residents. SSL offers individuals with dementia a superior quality of life via assisted living communities, home care, and hospice services.
Looking ahead to 2011, we will continue to pursue our strategy of generating high growth with modest leverage that has been the centerpiece of our investment efforts for over 25 years. We believe that the merits of such an approach are especially evident from the results of our portfolio companies during the challenging economic conditions of 2010. |