AMP 2010 Annual Report

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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