Verifying the CE Pro 100: How it’s Done

Unfortunately, you can't undertake an annual project like the CE Pro 100 without delving into the methodology. If you read this last year, you can probably skip it; the methodology is the same.

Seven years ago, CE Pro began asking for independent verifying documentation from companies submitting information. The verification is optional, but the number of verified financials has steadily increased.

This year, 87 of the 100 companies provided verification in the form of copies of tax returns or letters from an outside CPA. That number is up from 86 companies on the 2007 list and 69 companies on the 2006 list.

Given the state of the economy, it’s not surprising that there are nearly 30 new companies appearing on the list. Surely, some companies didn’t want to reveal their 2008 data. The companies that did should be congratulated by everyone in the industry for providing a glimpse into how they are handling the economy.

The red "v" next to several of the entries denotes that the revenues listed were verified by the submission of tax records, P&L statements or written confirmations from the company's certified public accountant.

Companies were required to sign a statement (for faxed or mailed entries) that says, "The information provided is accurate and truthful." That statement also appears at the bottom of electronic submissions.

Similar to previous years, CE Pro selected gross revenue in multisystem residential installations as the determining factor for the ranking.

Another much-talked-about aspect of the list is the outlining of the product lines that these large companies have chosen to offer. There may be better and more or less expensive product lines on the market, but it is certainly worth examining why these dealers are using particular brands.

The list also allows you to gauge your company's performance compared to others.

The CE Pro list is obtained in several ways:

• A qualification form appeared in the February and March 2009 issues of CE Pro.
  
• An online form was posted for three months, inviting entries. The Web site will also maintain a list of the 2008 CE Pro 100 for the next 12 months.
  
• An e-mail blast was sent out to the installing companies that subscribe to CE Pro.
  
• Special e-mails and phone calls were made to a handful of firms that appeared in previous CE Pro 100 listing.

The list is ranked by the volume of billed (not booked) business from residential systems that incorporate at least three of the following subsystems:

• Audio (sources, speakers, processors or multiroom distribution components)
  
• HVAC Control Systems and/or Energy Management Systems
  
• Lighting Controls
  
• Security Systems (alarms, integrated fire, access control or CCTV)
  
• Structured Wiring Systems
  
• Telecommunications Systems
  
• Video (sources, monitors, projectors, screens DBS or multiroom distribution components)
  
• Whole-House Automation/Integration
  
• PC Networks and/or Broadband Installation
  
• Window Covering Controls
  
• Other (central vacuum, surge protection, irrigation control, spa controls, etc.)

The dollar volume listed for companies on the list, whose primary business is selling and installing security systems, is derived solely from their residential installation income in which at least three subsystems are included.

Likewise, hybrid retailers that have entered the custom installation business are included, but only with their multi-subsystem installation revenue.

As always, there are several large companies that chose not to participate in this year's listing. Many higher-end custom companies do not want to be compared with high-volume companies on any list.

Is your company missing from the list?

If so, e-mail CE Pro at .(JavaScript must be enabled to view this email address), or please e-mail any other comments about the CE Pro 100.