Census
2 0 1 0
AMP annual Report
Economic
Geography
Household
People
People You Can Count On
Mission Statement
Contents
Applied Measurement Professionals, Inc. (AMP) is a private stock corporation located in the greater Kansas City area. It was incorporated in the state of Kansas in 1982 as a wholly owned subsidiary of the National Board for Respiratory Care, Inc. AMP’s corporate mission is to provide certification organizations, governmental agencies and private industry with assessment, management, communications and technology services that meet the highest professional and ethical standards; tailor these services to fulfill the unique requirements of each business partner; and personalize the delivery of these services by providing innovative and accessible professional and managerial staffs serving business partner organizations throughout all phases of the program.
Executive Office
People staff
18000 W. 105th Street Olathe, Kansas 66061.7543 913.895.4600
Household company
913.895.4650 FAX info@goAMP.com www.goAMP.com
Geography community Economic finances
Regional Offices Atlanta, GA (Lilburn and Marietta) Georgetown, SC Jefferson City, MO Macon, GA Savannah, GA Springfield, IL Springfield, MO St. Louis, MO Washington, DC
PRESIDENT ’S LETTER
What Counts at AMP? 308,745,538.
Look to your left and then to your right. If you look hard and long enough, that’s how many people you’ll see in this great country of ours. Every 10 years, we’re lucky enough to fill out all the forms so we can count all the people living in the United States. I’m sure you remember the US Census 2010 fondly, but did you know that each of those sometimes irksome questions – how is person 1 related to person 2…does person 3 sometimes live or stay somewhere else – help determine how $400 billion will be allocated to communities across the country? And, if you want to know where the center of the population is, the census tells us it’s just outside of Plato, Missouri; not far from our home in the Kansas City area. The center of the population is the place where an imaginary, flat, weightless and rigid map of the US would balance perfectly if all residents were of equal weight. As you might imagine, ever since the first census in 1790, it has been moving steadily west and south. Even if you didn’t find that tidbit of information remarkable, I’m confident you will find the rest of our 2010 Annual Report interesting and enjoyable to read. It is in the spirit of counting all that matters and a few things just for fun, that we present this year’s annual report – AMP Census 2010.
Much like the US Census, you will find the report grouped by People (staff), Household (company), Geography (community) and Economic (finances). For example, we looked at how our staff has grown in several areas you might expect, such as number, experience, tenure, and education. However, we also thought you might like to know a little about who we really are – where we come from, what we like and even a little bit about our families. Who would have thought most of our children were already old enough to drive? I guess that just goes to show our experience. We took a look back at how our home has changed over the years, as well as how we were able to use our facilities to best serve you and your customers. We thought some about where we’d been and found that our office staff, located predominantly in Olathe, Kansas, had traveled to each and every one of the 50 states (and beyond!) to serve our clients in 2010. Then, we counted you, our trusted business partners, and we were pleased to see how the family has grown. Finally, we considered our financial situation, which remains strong thanks to your loyal support. Through your continued trust in AMP, we have been able to give back to our community and support many worthy causes that we believe make this world a better place to live and work. Most of all, we count ourselves lucky to work with such good people doing so many good things. What counts at AMP is Loyal Clients being served by Caring People. I hope you enjoy this year’s annual report and, as always, if you have any questions or would just like to talk, please give me a call.
Gary A. Smith President and CEO
People
People Count at AMP According to the US Department of Labor, Bureau of Labor Statistics, the median tenure of an employee is 4.4 years. At AMP, we are pleased to blow that statistic out of the water. Here at AMP, we have an unprecedented track record of employee retention. In 2010, our median employee tenure was 9 years and our average was 10 years. That is more than double the national average. What is our secret? We could list many factors: fair compensation and time off policies, a great benefits package, state-of-the-art office space, social and wellness programs, even free soda; but the bottom line is that we are an ethical company doing good work for organizations involved in significant service, and people enjoy being part of that culture. We work hard at providing the highest quality services, and we are fully aware that our staff is our greatest asset. So, we treat them as such. Need proof? The data below speaks for itself.
Number of AMP Staff by Department 26
28
OPERATIONS INFORMATION TECHNOLOGY PSYCHOMETRICS
25
MANAGEMENT SERVICES REGIONAL OFFICES EXECUTIVE AND EXECUTIVE SUPPORT
42
FINANCE HUMAN RESOURCES/FACILITIES
20 5
6
7
10
Staff Years of Experience with AMP by Department
MARKETING
154°
109 undergraduate degrees 45 advanced degrees
We turn the heat up on education and professional designations. After all, we are in the credentialing and certification business. We strive to hire the most qualified staff and support continuing education opportunities and achievement of relevant credentials – all in pursuit of better serving our clients.
AMP Staff Degrees/Credentials PhDEdDMBAMEdMACPACAECMPMPACMPPHR
As you can see, AMP’s staff longevity is significant across all areas of service, with most departments’ staff members averaging more than 10 years with the company. All that experience is at work for our clients day in and day out. Even our departments with lower averages are impressive when you look at all the facts. Our management services division, with 8 average years of service was formed five years after AMP was incorporated. We didn’t even start hiring staff in that area until 1987, and in 1998 we expanded by hiring several new team members, most of which are still with us today. How about marketing? This department didn’t exist until 1993, yet still has a 10-year average. Similarly, our information technology department, while always mission critical, has increased in importance and staff size over the years as we have become more and more reliant on technology for the way we conduct business. Each department is an integral part of our team, dedicated to serving our clients.
NBRC/AMP’s 20 w/ 20 Our top 20 (well, 22) longest-term employees have 20 or more years of service. Karen Flint
Director, Internal Development & Systems Integration
36
Barb Rossi
Senior Examination Services Specialist
34
Beth Crowley
Association Manager
30
Jody Burns
Senior Examination Services Specialist
29
Bill Lair
Lead Systems Administrator, LXR
29*
Sue Prine
Lead Software Engineer, LXR
29*
Rhett Tindall
Chief Information Officer
29*
Mark Biewer
Lead Software Engineer, LXR
28*
Patsy Rush
Test Development Coordinator
27
Gary Smith
Chief Executive Officer
27
Dede Gish-Panjada Senior Vice President, Management Services
26
Donna Howard
Manager, Facilities
26
Steve Nettles
Senior Vice President, Psychometrics
25
Melanie Thomas
Manager, Examination Services
25
Don Todd
Test Center Supervisor
23
Mary Jones
Graphic Artist
22
Larry Fabrey
Senior Vice President, Psychometrics
21
Scott Hermansen
Chief Financial Officer
21
Bob Ulrich
Technology Liaison & Quality Assurance Coordinator
21
Susan Hime
Data Administration Coordinator
20
Cuong Luu
Manager, Technology Operations & Support
20
Leesa Wells
Senior Examination Services Specialist
20
* Includes prior service to Logic eXtension Resources (LXR)
Next year, we will add six more staff members to this elite club.
People AMP founded as NBRC Management Services
1982
My How We’ve Grown
Contracted with first outside testing clients
1987 1986 Developed and administered all NBRC examinations in-house
Things have surely changed since AMP first started doing business in 1982. Ronald Reagan was president of the United States, a postage stamp cost $0.20 (people still wrote and mailed letters then), cell phones still had antennas and pretty much only made phone calls, CATS opened on Broadway and Michael Jackson released his Thriller album. Fast forward 28 years and Barack Obama is the first African American to be president, a postage stamp costs $0.44 (not that anyone mails letters these days), cell phones are in virtually everyone’s hands and do most anything including turning on your house lights from across the country, CATS finally closed after more than 7,000 performances and Michael, an album of Michael Jackson’s unreleased tracks, was posthumously released. The total US population grew by almost 80 million, a 33% increase from 1982 to 2010. Well, we’ve grown and changed too: from a start-up company founded by a nonprofit organization (a novel idea at the time) with two employees and no clients to a thriving occupational testing and association management company with more than 130 clients and nearly 170 employees. We have changed office space four times to keep up with our growing human and technology needs. We’ve also expanded our testing reach internationally. Many of our clients have been by our side from the start and some have joined us along the way. Regardless, each and every one of you is a part of who we are today. Let’s take a look at the journey. 170 136 102 Number of Employees
68 34 0
1982 1985 1990 1995 2000 2005 2010 Year
Acquired national real estate testing program with 4 states (all still with AMP)
1990 1988 Name changed to Applied Measurement Professionals, Inc. (AMP) Contracted with first association management client
Began CBT in Georgia
AMP Assessment Center Network opened nationally with 72 assessment centers
AMP CBT volume hit 1,000,000 candidates
Surpassed 1.5 Million candidates tested in the AMP Assessment Center Network
1997
2000
2006
2010
1996
1998
2002
2007
Acquired Logic Extension Resources (LXR) to provide CBT software
Contracted with H&R Block to establish AMP Assessment Center Network
AMP underwent first (and only) leadership change, Gary A. Smith became AMP President and CEO following retirement of Steven K. Bryant, AMP’s first president
AMP built its current state-of-the-art facility in Olathe, KS
It’s been a long trip, and we look forward to the next leg.
AMP Assessment Center Network Growth 2010
What a long way our CBT network has come, growing by more than 10 sites per year. And they’re all true AMP sites – no “third-party” vendors or “authorized” sites. Just fully secure, standardized testing locations completely under our control and guaranteed to meet AMP’s exacting standards. We keep growing so you can keep growing.
2000
72 sites
Our Office Space Has Grown Too
180 sites
Olathe � 2007-present 75,000 sq. feet Lenexa � 1989-2007 36,000 sq. feet
Shawnee � 1981-1989 6,000 sq. feet Westwood (NBRC location) � 1974-1981 800 sq. feet
People
Who Are We? Every day our clients work with their AMP Program Director, Executive Director, Test Development Specialist, Meeting Planner, Marketing Representative, Examination Services Administrator or IT Professional. For every contact person you know well at AMP, there is a handful working diligently for you behind the scenes. While we are all dedicated to ensuring the highest quality services, we are more than just our jobs, and we wanted to take this opportunity to give you a behind the scenes look at who we “really” are. We hope you enjoy learning more about us.
30%
While there may be a “border war” between Kansas and Missouri, with our loyalties lying across a range of rival college sports teams, we have the common denominator of Midwest values. The majority of our staff is from right here in the heartland, where we tend to be honest, hard-working, straightforward individuals. Add some staff from a wide range of other areas, US and international, and we have a well-rounded group of dedicated people ready to serve you.
32%
Percentage of Staff Born in Kansas and Missouri We stay pretty busy even when we aren’t working. Collectively, we have more than 200 kids to raise (even those that are now grown themselves) and more grandchildren than we can even count. We watch sports, tinker with hobbies and spend time with our furry (or feathered) friends. AMP recognizes the need for balance between work and life activities, and we are proud that our employees lead full and interesting lives.
WATCH TV/MOVIES READING/WRITING ENTERTAINING/FAMILY TIME TRAVEL FITNESS ANIMALS FOOD/COOKING GAMES/CARDS WATER SPORTS OUTDOOR/CAMPING WINE/BEER TASTING VIDEO GAMES/COMPUTERS CRAFTS/SEWING GARDENING TEAM SPORTS DRAMATIC ARTS FINE ARTS SNOW SPORTS GOLF AMP Staff Hobbies HUNTING/FISHING OTHER CARS 0
7
14
21 28 35 42 Percent of Participants
49
56
63
Michael Most common child’s name
Sam AMP Staff Families 90 Number of Children
We enjoyed gathering this information and taking a closer look at ourselves. A few things in particular really struck a chord with us. Look how many grown children we’ve raised over our years with AMP; some of them have even joined us along the way as interns or staff members. The large number of dogs is no surprise, but who keeps hermit crabs as pets? Again, with the Kansas City Chiefs and several Big 12 programs nearby, the popularity of football is no surprise, and with the recent addition of the Kansas Speedway, we anticipate the number of NASCAR fans will continue to grow. It will be fun to take a look in a few more years and see how things have changed.
Most common pet’s name
72 54 36 18
<2
2-5
6-10 11-15 16-19 Ages
>20
Pets of AMP Staff 80 *Other includes turtles, horses & hermit crabs
Sports We Watch
60
80
50
70
40 30 20 10 0
Dog
Cat
Fish
Bird Other*
Percent of Households
Percent of Households
70
*Other includes tennis, hockey, boxing, rugby, bowling, racing, rowing
60 50 40 30 20 10 0
ll ll ll r* er tba tba eba Socc Othe Foo Baske Bas
lf Go SCAR NA
Household
What Makes Up Our Household? 1.5% 6.9% 1.5%
7.6%
We call Kansas City home. It is the center of our professional lives. We love it here – the heartland values, the BBQ, the seasonal (sometimes unpredictable) weather. We think of our close knit corporate office environment as our “household,” if you will. However, our reach extends far beyond our slice of Kansas prairie, and our full household includes 10 regional offices, nearly 200 AMP Assessment Centers, international testing sites and institutions across the US that host our web-based and paper/ 18.5%pencil testing ventures. We run our household smoothly and fairly and are excited by our growing reach.
6.9%
18.5%
Proportion of Office Space
7.6%
8.2%
OPERATIONS EXECUTIVE/ADMINISTRATIVE SUPPORT
8.2%
14.6%
8.5%
14.6% 8.5%
PSYCHOMETRICS
OPERATIONS
FACILITIES SUPPORT
EXECUTIVE/ADMINISTRATIVE SUPPORT
ATG/TECHNOLOGY PSYCHOMETRICS FACILITIES SUPPORT DINING AREA AND GENERAL USE ATG/TECHNOLOGY CONFERENCE CENTER DINING AREA AND GENERAL USE
STAFF MEETING/TRAINING
CONFERENCE CENTER
MANAGEMENT SERVICES
9.6%
12.9%
9.6%
11.7%
12.9%
STAFF MEETING/TRAINING
TEST CENTER MANAGEMENT SERVICES TEST CENTER
11.7%
75,000
88
square feet of usable building space
houseplants make us feel at home
SPRINGFIELD, IL
OLATHE, KS JEFFERSON CITY, MO SPRINGFIELD, MO
AMP Regional Offices
ST. LOUIS, MO
WASHINGTON, DC
MARIETTA, GA
LILBURN, GA GEORGETOWN, SC
MACON, GA
SAVANNAH, GA
Most of our regional offices serve as assessment centers and support for state regulatory contracts. However, our Washington, DC office houses our Government Affairs Division and Georgetown, SC is the home of our LXR Division and the redundant server location for automatic failover in the event of an emergency.
In 2010, AMP staff traveled to all 50 states for business (and all states except five for pleasure too). Yes, this meant someone had to travel to Hawaii. This also meant that our staff spent many days on the road, facilitating client meetings, attending association events and maintaining the AMP Assessment Center Network. The four departments listed to the right battled it out for most time spent traveling. Our test development department even has an informal award for the staff member who attends the most client meetings during the year. In 2010, Nate Hagemann, an AMP Test Development Coordinator who has been with us for nine years, won this honor by attending 48 days of client meetings over the course of the year. Way to go Nate!
180 servers, printers and routers
More than 6 miles of network cable
80 metric tons of equipment and furniture
227
AMP Staff Days on the Road
PSYCHOMETRICS 147
MANAGEMENT SERVICES 143
TEST DEVELOPMENT 121 ASSESSMENT CENTER NETWORK SUPPORT
Maintaining testing centers six days per week at nearly 200 locations across the US is not an easy task, and 2010 was a particularly tough year for weather â&#x20AC;&#x201C; locally and across the nation. We always strive to remain open to serve candidates if at all possible, but sometimes safety must come first. We closed our corporate headquarters early twice due to significant snowfall. Critical operations can be handled remotely, so we were able to keep communications and testing on schedule. We also had to close 35 AMP Assessment Center locations temporarily and reschedule one paper/pencil and two web-based examination administrations due to severe weather or flooding. All candidates were quickly notified and rescheduled to minimize inconvenience and keep everyone safe.
Household
How Do We Compare? It is always interesting to see how the US population is dispersed from census to census. As mentioned in the opening letter, the population has been steadily moving south and west. We thought it would be interesting to see how our 2010 candidate population compared with the general US population.
AMP Testing Population vs. US Population by State
0.1% 0.3%
Bold number indicates percentages of AMP examinations given. Shaded number indicates US population data from US Census 2010.
5.8% 2.4%
0.7%
0.4%
0.4%
1.6% 1.4%
0.2%
0.2% 0.6%
0.2% 0.2% 1.0% 1.9%
0.7% 0.4%
2.0%
0.3%
0.2%
1.0%
0.6% 1.0%
1.2% 1.8%
8.5% 4.9%
1.0%
0.5% 0.7%
2.3%
4.6%
0.2%
0.9% 1.3%
6.4% 9.0%
5.3% 2.1%
0.5% 0.5%
1.2% 1.6%
2.9% 4.5%
3.0%
9.6% 2.0%
1.0%
1.7%
3.5%
1.1%
0.7%
6.9%
1.7%
0.6%
1.1%
0.7%
4.1%
0.9%
4.1%
0.4% 1.6% 0.9% 0.7% 2.9% 1.6%
1.1%
1.7%
1.4% 0.5% 2.0% 2.3% 0.5% 0.4% 0.6% 1.3% 1.5% 3.1% 0.5% 0.3% 1.1% 2.1% 0.8% 0.1%
2.1% 3.4%
2.0% 2.3% 0.4% 2.8%
0.3%
0.5%
2.1% 7.0%
1.7%
3.5%
6.9% 6.7%
0.3% 0.5%
As you might guess, our candidate population is proportionally higher than the general population in states in which we contract with state licensing agencies (Illinois, Georgia, California, etc.). It was interesting to learn that in most other areas though, our candidate population was fairly proportional.
AMP Testing Around the World Sydney, Australia • Paget, Bermuda • Courtice, Ontario, Canada • Edmonton, Alberta, Canada • Halifax, Nova Scotia, Canada • Hamilton, Ontario, Canada • Kelowna, British Columbia, Canada • Mississauga (Port Credit), Ontario, Canada • Mississauga, Ontario, Canada • Mississauga (Erin Mills), Ontario, Canada • Montreal, Quebec, Canada • Oakville, Ontario, Canada • Ottawa, Ontario, Canada • Pickering, Ontario, Canada • Prince George, British Columbia, Canada • Regina, Saskatchewan, Canada • Saskatoon, Saskatchewan, Canada • Scarborough, Ontario, Canada • St. John’s, Newfoundland, Canada • Sudbury, Ontario, Canada • Thunder Bay, Ontario, Canada • Vancouver, British Columbia, Canada • Vaughan, Ontario, Canada • Victoria, British Columbia, Canada • Windsor, Ontario, Canada • Winnipeg, Manitoba, Canada • Beijing, China • Guangzhou/Guangdong, China • Hong Kong, China • Shanghai, China • Shenzhen, China • La Sabana, Costa Rica • San Pedro, Costa Rica • Limassol, Cyprus • Guayaquil, Ecuador • Cairo, Egypt • Alexandria, Egypt • Paris, France • Mangilao, Guam • Dublin, Ireland • Ahmedabad, India • Hyderabad, India • Kolkata (Calcutta), West Bengal, India • Mumbai, Maharashtra, India • Tokyo, Japan • Amman, Jordan • Nairobi, Kenya • Salmiya, Kuwait • Beirut, Lebanon • Kwajalein, Marshall Islands • Mexico City, Mexico • Kuala Lumpur, Malaysia • Auckland, New Zealand • Saipan, Northern Mariana Islands • Lagos, Nigeria • Karachi, Pakistan • Lahore, Pakistan • Manila, Philippines • San Juan, Puerto Rico • Doha, Qatar • Moscow, Russia • Al Khobar, Saudi Arabia • Dhahran, Saudi Arabia • Jeddah, Saudi Arabia • Madinah, Saudi Arabia • Riyadh, Saudi Arabia • Singapore • Pretoria, South Africa • Barcelona, Spain • Malmö, Sweden • Seoul, South Korea • Taipei, Taiwan • Sisli Istanbul, Turkey • Abu Dhabi, United Arab Emirates • High Wycombe, Buckinghamshire, UK • Northampton, England, UK
Household
How Do You Count Quality Service? We do many things in our household – testing, association management, software development, website maintenance, marketing, government affairs, finance – but it all boils down to quality service. At the heart of all we do is the desire to provide our business partners with timely responses, accurate data, quality deliverables and knowledgeable Processed 226 total contracts counsel. We believe the services we provide our clients are top notch, but we admit we are Completed 66 contract renewals a little biased. So, how do we know we are with satisfied clients performing well? Satisfied return customers.
431 Hours Spent on Examination Quality Control
AMP Customer Call Center
Test development staff spent more than 400 hours reviewing CBT examination forms before they were released into the network. This includes ensuring accurate presentation on screen, ability to answer and change an answer, questions and options are being scrambled appropriately, tables and artwork display properly and text is formatted correctly and easy to read. We take the quality of our clients’ examinations seriously and are willing to spend the time ensuring everything is perfect before it goes live. Right from its very first year of operation, the AMP Assessment Center Network has lived up to our clients’ and candidates’ high expectations, and we’ve only gotten better since then.
CBT Candidate Satisfaction
Processed 313,191 calls
73 years of combined customer service experience 5 min 12 sec average talk time on phone Handled up to 276 calls/hour during peak times
Another Busy Year We always accomplish a lot during the course of a year, and 2010 was certainly no exception. Due to the economy and industry trends, it wasn’t our best financial year. While we didn’t need to make dramatic changes to the way we do business, we did move forward and continue to serve and grow the testing programs and associations we manage. We coordinated testing for our certification clients and provided quality application processing and test administration for approximately 180,000 candidates. Additionally, we began betatesting LXR•TEST 7.0, which will be the most significant upgrade to our item authoring/banking software. We also completed or began redesigns for many of our proprietary software tools (VIP Client Portal, School Portal, Recertification Database) and began transition to iMIS 15, an improved, web-based version of the membership/certificant database used to support our association management clients. With all that going on, it’s no wonder we worked up a big thirst.
Test Development/ Scoring
How We Keep Going
Facilitated 147 examination committee meetings Generated 810 item analyses Implemented 1,043 new test forms
Conducted 41 cut score meetings
Psychometrics
Facilitated 18 item writing workshops
Management Services
Conducted 30 job analysis studies
Planned and attended 52 meetings Planned meetings in 24 different locations Served 6,177 meeting attendees
Dedicated 2,305 hours to graphic design Produced 615 individual publishing projects
Publishing
Printed 26,372 candidate handbooks The trend in 2010 continued to focus more and more on online publications, as many corporate and client publications moved to electronic media. We are dedicated to helping our clients be inventive when trying to reduce reliance on printed materials without losing contact with their stakeholders. In 2010, that included such innovation as smart phone apps, social media, e-publications, blogging, video and RSS feeds.
Geography
You Count at AMP The geography we are most concerned with is our loyal business partners and community outreach. We are pleased that our client base has grown and diversified over time as illustrated below.
FINANCE VETERINARY WATER/WASTEWATER
WATER/WASTEWATER
VETERINARY
FINANCE
TRADES
OTHER TRADES
OTHER
REAL ESTATE
HEALTHCARE
2000 2010
REAL ESTATE
HEALTHCARE
Percentage of AMP Clients by Industry
Getting new clients is a key business goal, but we realize that keeping our current ones is just as important. That is where our quality service speaks for itself. In fact, 28 of our clients have been with us for more than 15 years and 41 have been with us for more than 10 years. Our clients are continually improving the workforce through quality credentialing programs. We applaud their efforts and are proud to work with them to serve their candidate populations.
Growing Candidate Population
Client Years with AMP
200,000 Client Candidates Tested
Years with AMP
21-26 16-20 11-15 6-10 1-5 0
10
20
30
40
Number of Clients
50
60
179,302 150,000
100,000
50,000
0
52,267 2000
Year
2010
71%
of AMP staff are involved in charitable activities outside of work
Our Community You can’t expect the exceptional staff longevity we have been fortunate to experience without having developed a pleasant work environment. Some of us have worked together for many years and others have come along more recently to breathe new life into our community. This stable and fruitful work community allows us to make our local and global communities a better place to live. In 2010, the NBRC/AMP companies made numerous financial contributions to charity, and individual staff donated nearly $6,000 in additional funds, carloads of clothing and boxes full of toys and other supplies to select organizations. We believe every little bit helps and enjoy doing our part.
Best basketball shoot out score: baskets in two minutes
69
Number of homemade salsas battling for the win
14
4
It helps to have a little fun and camaraderie along the way Pairs of knickers too, and our Social and Wellness Committee took the lead. worn during the In 2010, we held many activities, including a March Madness Wacky Golf Event Number of holes in Basketball Shoot Out, Cinco de Mayo Salsa Contest, Wacky Golf one made Event, Beat the Heat Ice Cream Treats, Company Picnic at the Zoo, Halloween Costume and Pumpkin Carving Contest and a Chili/Soup Cook Off. It’s impossible to measure the amount of goodwill and fun that was had by all, but we can provide a little insight with the numbers to the right. Number of AMP also continued to strengthen our green efforts again in 2010. We underCompany Picnic stand the toll that business takes on the environment and have pledged to do all Zoo guests we can to operate responsibly. Our EPA Energy Star certified building continues to operate efficiently – we are one of only 103 such buildings in all of Kansas. In addition, our Green Committee keeps AMP and its employees focused on makNumber of homemade chili/ ing responsible decisions. As you can see below, we continue to make a positive soups battling for the best impact.
108 228
11
On high energy demand days (hot, hot, hot), AMP partners with Kansas City Power and Light to reduce our consumption of electricity. It may get a little warm in the afternoons, but we use designated cool areas of the building and frozen treats to keep the work flowing and make it through. A few small sacrifices can add up. Recycled 23 Tons of materials Collected 270 hazardous household materials for recycling Participated in
8 Power Curtailment Events
Nearly 20% of AMP executive office staff participated in the green transportation program
76% of AMP staff recycle at home
Geography
Our Clients AACN Certification Corporation
Association of College and University Auditors
Alabama Real Estate Appraisers Board
Association of Credit Union Internal Auditors
Alabama Real Estate Commission
Association of Genetic Technologists
American Academy of Healthcare Providers in the Addictive Disorders
Association of Pulmonary and Critical Care Medicine Program Directors
American Academy of Pain Management
Association of Strategic Alliance Professionals
American Association of Colleges of Nursing
Axiom Resource Management
American Association of Heart Failure Nurses
Board of Ambulatory Surgery Certification
American Association for Public Opinion Research
Board of Certification for Emergency Nursing
American Association of Oral and Maxillofacial Surgeons
Board for Critical Care Transport Paramedic Certification
American Association for Respiratory Care
Board of Certification/Accreditation, International
American Board of Audiology
Breining Institute
American Board of Genetic Counseling
California Office of Real Estate Appraisers
American Board of Histocompatibility and Immunogenetics
California State Board of Pharmacy
American Board of Medical Genetics
Center for Health Design
American Board for Occupational Health Nurses
Center for Interviewer Standards and Assessment
American Board for Transplant Certification
Certification Board of Infection Control and Epidemiology
American Board of Veterinary Practitioners
Certification Board for Music Therapists
American Case Management Association
Chartered Realty Investor Society
American College for Advancement in Medicine
Commission for Certification in Geriatric Pharmacy
American College of Chest Physicians
Commission on Dietetic Registration
American College of Healthcare Architects
Drivers Rehabilitation Specialist Certification Board
American College of Veterinary Emergency and Critical Care
Employee Assistance Certification Commission
American College of Veterinary Internal Medicine
Foundation for Addiction Nursing
American College of Veterinary Radiology American Hospital Association Certification Center American Midwifery Certification Board
Canadaâ&#x20AC;&#x2122;s Health Informatics Association
Entertainment Services and Technology Association Georgia Construction Industry Licensing Board Georgia Real Estate Commission
American Public Works Association
Client Growth
American Society of Anesthesia Technologists and Technicians American Society for Healthcare Engineering American Society of Heating, Refrigerating and AirConditioning Engineers American Society for Pain Management Nursing American Sports Builders Association American Veterinary Dental College Association of Boards of Certification
Number of Clients
American Society of Andrology
135
133
108 81
91
54 27 0
2000
Year
2010
Hand Therapy Certification Commission
National Enrichment Teachers Association
HCPro
National League for Nursing
Healthcare Compliance Certification Association
National Marrow Donor Program
Healthcare Information and Management Systems Society
National Patient Safety Foundation
Healthcare Quality Certification Board
National Society of Insurance Premium Auditors
Illinois Department of Financial and Professional Regulation
Nebraska Real Property Appraiser Board
Infusion Nurses Certification Corporation
New Hampshire Real Estate Commission
Institute of Internal Auditors
New York Department of Civil Service
International Association of Electrical Inspectors
New York Division of Licensing Services
International Association of Lighting Management Companies
North American Electric Reliability Council
International Board of Lactation Consultant Examiners International Nurses Society on Addictions
Nebraska Real Estate Commission
North American Menopause Society North Dakota Real Estate Appraisal Qualifications and Ethics Board
Investment Management Consultants Association
North Dakota Real Estate Commission
Kentucky Real Estate Appraisers Board
National Strength and Conditioning Association
Lambda Beta Society
Oak Park Homes Association
Missouri Division of Professional Registration
OASIS Certificate and Competency Board
Missouri Real Estate Commission
Office of Indiana State Chemist
Missouri Veterinary Medical Board
Oncology Nursing Certification Corporation
Montana Board of Realty Regulation
Oncology Nursing Society
NATCO, The Organization for Transplant Professionals
Oregon Department of Consumer and Business Services
National Association of EMS Physicians
Orthopaedic Nurses Certification Board
National Association of Graduate Admissions Professionals
PJM Interconnection
National Association of Health Unit Coordinators National Asthma Educator Certification Board National Board of Boiler and Pressure Vessel Inspectors National Board for Certification of Hospice & Palliative Nurses National Board for Certified Counselors National Board for Respiratory Care National Board of Surgical Technology and Surgical Assisting National Certification Board for Diabetes Educators National Certification Corporation for the Obstetric, Gynecologic, and Neonatal Nursing Specialties National Council on Qualifications for the Lighting Professions National Credentialing Agency for Laboratory Personnel
Pediatric Nursing Certification Board SABA University School of Business Sam M. Walton College of Business Society of Quality Assurance South Dakota Department of Revenue and Regulation Sudden Cardiac Arrest Association TAANA Foundation The American Association of Nurse Attorneys Transportation Lawyers Association Virginia Department of Professional and Occupational Regulation Washington Department of Licensing Web Analytics Association Wound, Ostomy and Continence Nursing Certification Board
Economic
How Does It All Add Up? In keeping with the standard timing for a census, we decided to compare this year’s financial performance with the year 2000. The table below details a few important line items from the Balance Sheet and Statement of Income (shown in full on the following pages) that paint an interesting and healthy financial picture over the past 10 years. While current assets nearly tripled, perhaps even more telling of our focus and efforts to strengthen the balance sheet was quadrupling stockholders’ equity. The revenue in our core business units, testing and association management, basically both doubled, driving an overall growth of 84% for total revenue. Conversely, since operating expenses only grew at 70% we were able to grow our gross margin substantially. Now, make no mistake, 2000 was not a normal year at AMP. That was the year we launched our nationwide network of CBT sites, which resulted in significant expense that drove down net income. It is, however, very encouraging to know that the expense and risk of developing our assessment center network to better serve our customers has not only “worked” but paved the way for increased revenues and overall financial strength, even during challenging economic times.
10-YEAR COMPARISON 2
0 00
10 20
e as e r Inc
BALANCE SHEET Current Assets
$2,066,759
$5,831,958
182%
Stockholders’ Equity
$1,250,852
$5,224,128
318%
$9,498,920
$18,447,293
94%
$447,495
$1,207,656
170%
$1,480,229
$3,075,545
108%
Software Products
$599,485
$641,605
7%
Publishing/Other
$986,141
$590,564
-40%
TOTAL REVENUE
$13,012,270 $23,962,663
84%
OPERATING EXPENSES
$12,771,008 $21,668,901
70%
REVENUE Testing Research/Self-Assessment Association Management
NET (before taxes and bonuses)
$241,262
$2,293,762
851%
Another encouraging note from our 10-year comparison is the continued growth of our self-assessment products and their positive impact for both our clients and AMP. Many of our testing clients have implemented self-assessment examinations to help candidates prepare and gain confidence for the actual certification examination. Finally, it is no surprise that publishing revenue has fallen, as we divested our full service print shop in 2006 and continue to move to a predominantly electronic format.
% 8 31
Growth of stockholders’ equity in last 10 years
As you can see in the statements below, 2010 was a slightly tougher year than 2009 for AMP, but all was not doom and gloom. I think we can agree that the economy has not fully recovered from the recession of 2008. However, thanks to our loyal business partners, AMP was still able to build infrastructure for tomorrow and achieve a reasonable net return. Total revenue was down slightly and expenses were up slightly, so naturally the net income before taxes and bonuses was lower than the previous year. Even so, we were still able to provide the high-quality products and services our clients require and deserve, while continuing to invest in the future and strengthen our financial position.
STATEMENT OF INCOME (unaudited) Years ended December 31, 2010, 2009 and 2000
REVENUE
2010
2009
18,447,293
18,641,637
9,498,920
Applied research products
1,207,656
1,118,386
447,495
Association management
3,075,545
3,104,742
1,480,229
Software products
641,605
631,483
599,485
Publishing and other income
590,564
769,325
986,141
$23,962,663
$24,265,573
$13,012,270
7,127,058
6,867,869
3,877,033
Personnel - before bonuses
11,143,077
11,185,750
6,836,679
General and administrative
3,183,023
3,144,950
1,475,000
—
—
170,408
215,743
348,010
411,888
$21,668,901
$21,546,579
$12,771,008
$2,293,762
$2,718,994
$241,262
Testing revenue
TOTAL REVENUE
2000
EXPENSES Test development and administration
Interest Expense Publishing expense TOTAL EXPENSES (before taxes and bonuses)
NET INCOME (before taxes and bonuses)
Economic
We firmly believe that the current tough economic environment will run its course and things will get better in time. In the meantime, we equally believe you must pay close attention to your financial position during a downturn. That is why we continue to work diligently to strengthen our balance sheet by increasing our cash positions and continuing to be free of bank debt. We also know we must continue to upgrade our equipment to better serve our business partners, and we have been able to pay for these improvements with current cash flow. Stockholders’ equity continues to increase and we were able to reduce our liabilities, resulting in an excellent debt-equity ratio (a measure of financial leverage) of .61. Current ratio (ability to meet obligations for the coming year) rose from a healthy 1.8 to a very favorable 2.2 by the end of 2010; marking the first year in which current assets are at least twice that of current liabilities.
BALANCE SHEET (unaudited) December 31, 2010, 2009 and 2000
ASSETS
2010
Current Assets Other Assets
2009
2000
5,831,958
5,746,358
2,066,759
690,056
578,841
226,825
Property and Equipment
6,112,471
5,821,713
5,244,331
Less accumulated depreciation
4,231,617
3,707,300
2,996,744
Net Property and Equipment TOTAL ASSETS
1,880,854
2,114,413
2,247,587
$8,402,868
$8,439,612
$4,541,171
2,662,253
3,138,657
1,982,293
—
—
1,220,036
516,487
409,106
87,990
5,224,128
4,891,849
1,250,852
$8,402,868
$8,439,612
$4,541,171
LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Long-term debt Other long-term liabilities Stockholders’ equity TOTAL LIABILITIES AND Stockholders’ EQUITY
Our Team 2010 Board of Directors Gary A. Smith President Olathe, KS James H. Hayes, MHA Chairman of the Board San Antonio, TX Paul L. Goldiner, MD Vice Chairman Larchmont, NY
Gregg L. Ruppel, MEd, RRT, RPFT, FAARC Secretary St. Louis, MO
Theodore Oslick, MD, FCCP, FAARC Glenside, PA
Harry E. Jordan Treasurer Leawood, KS
Barbara G. Wilson, MEd, RRT Chapel Hill, NC
Robert D. Regnier Overland Park, KS
Kerry E. George, MEd, RRT, FAARC Ankeny, lA
William W. Burgin, Jr., MD, FCCP Director Emeritus Corpus Christi, TX
Steven S. Nettles, EdD Senior Vice President, Psychometrics
Deidre Gish-Panjada, MBA Senior Vice President, Management Services
Lawrence J. Fabrey, PhD Senior Vice President, Psychometrics
Patrick Gallagher, MBA Vice President, Sales & Marketing
Management Team Gary A. Smith President & Chief Executive Officer Lori M. Tinkler, MBA Executive Vice President & Chief Operating Officer Scott M. Hermansen, CPA Chief Financial Officer & Senior Vice President, Finance
J.E. (â&#x20AC;&#x153;Rhettâ&#x20AC;?) Tindall Jr. Chief Information Officer & President & Founder, LXR Division
Department Managers Cathy Berra, MBA Director, Management Services
Larry D. Flint Director, Operations
Nisha Bhagchandani, MBA Manager, Technology Planning & Development
Donna K. Howard, FMP Manager, Facilities
Bridget Coiner Manager, Candidate Support Center Wade Delk Director, Government Affairs Andrew J. Falcone, PhD Director, Psychometrics Karen S. Flint Director, Internal Development & Systems Integration
Catherine B. Johnson, PhD Director, Test Development & Scoring Cuong D. Luu Manager, Technology Operations & Support Alicia G. Nentwig, MS Manager, Operations/Assessment Center Support Melanie C. Thomas Manager, Examination Services
Technology That Works
People Who Care
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