Orange County’s fastest growing publicly traded companies increased revenue by $16 billion in a two-year span.
The 43 fastest-growing grew sales 44% to $52.1 billion in the 24 months ended June 30, up from $36.1 billion in June 2015.
The fastest-growing industries were health, with 10 companies, technology with nine, and banks with seven. The top two among small companies are involved in the cannabis industry.
The biggest growth driver among larger firms was acquisitions. No. 11, Western Digital Corp. increased sales by the biggest amount, $14.6 billion to $19.1 billion, by acquiring SanDisk Corp. last year. Western Digital, which moved its headquarters in April from Irvine to San Jose, still has a large OC presence with 1,474 employees based here, though that represents a 13% decline from a year ago.
This week’s Business Journal Special Report features publicly held businesses with headquarters in OC and is ranked by two-year revenue. The list also details employment data and market capitalizations, though those metrics don’t factor into the rankings.
Ranked companies grew revenue by at least 15% since 2015 and are ranked by two-year percentage increases. Last year’s list featured 47 companies that increased sales by at least 15% over two years.
The companies’ revenue data were compiled for the Business Journal by B. Riley & Co., a Los Angeles-based investment bank and research firm with an office in Newport Beach.
They employed 17,186 in Orange County, up 2.3% from a year ago, and 223,134 companywide, up 4.8%.
The companies are divided into three size categories separated by revenue, and ranked within the categories based on percentage gains.
Large Companies
The large company category ranks 16 businesses with revenue of at least $500 million for the year.
The companies had an average two-year sales growth of 44% to $49.5 billion, up from $34.4 billion in the 12 months ended June 30, 2015.
The firms reported combined net income of $2.9 billion for the year and had a combined market cap of $85.1 billion as of last week.
Together, they employed 13,884 locally, up 0.7% from a year ago, and 210,620 firmwide, up 4.3%.
The fastest-growing firm did so organically by expanding into new segments and markets while the next two made major acquisitions.
• The New Home Co. in Aliso Viejo reported sales more than tripled to $769.5 million from $250 million two years previously (see separate article, page 22).
• CalAtlantic Group Inc. in Irvine stayed at No. 2 as revenue continued soaring to $6.67 billion, up 161%. The homebuilder reported net income of $479.4 million in June and had a market cap of $4.3 billion as of last week. It employs 253 locally; up 9% from two years ago, and 3,135 firmwide, up 4.4%.
CalAtlantic was formed by the 2015 merger of Standard Pacific Corp. and the Ryland Group.
• ICU Medical Inc. of San Clemente is No. 3 with $772 million in revenue, up 139% over two years. It doubled revenue by acquiring Hospira Infusion System business in February and projects annual revenue will eventually reach $1.45 billion.
The infusion device maker reported net income of $47.1 million in June and had a market cap of $3.8 billion last week. It employs 177 locally, up 7.3%, and 9,000 firmwide, up more than threefold.
Midsize Companies
The midsize company category ranks businesses with revenue between $100 million to $499.9 million for the year.
The nine companies had an average two-year sales growth of 52% for $2.1 billion. They reported net income of $22.8 million for the year and had a combined market cap of $5.2 billion last week.
• First Foundation Inc. topped the midsize group by doubling sales to $158.5 million (see separate article, page TK).
• No. 2 is Anaheim-based Willdan Group Inc., whose revenue climbed 99% to $256.3 million and net income was $10 million. Its OC employment climbed 6.3% to 101, and the companywide worker base rose 27% to 872.
Willdan, which performs engineering and energy-efficiency consulting, had a market cap of $261.8 million last week. Its stock has soared 30-fold in the past five years.
• No. 3, Pacific Premier Bancorp Inc. in Irvine, reported 96% sales growth over two years to $226.3 million. The bank reported net income of $44.9 million for the year and has a market cap of about $1.6 billion, more than double a year ago. It employed 275 locally as of September, up 55%, and 719 firmwide, up 59%.
Pacific Premier purchased Heritage Oaks Bancorp of Paso Robles this year and is scheduled to acquire Irvine-based Plaza Bancorp on Wednesday.
Small Companies
The small-company category includes businesses with revenue below $100 million for the year.
The 18 companies had an average two-year sales growth of 53% for $494.4 million.
They reported a net loss of $93 million for the year and had a combined market cap of $1.4 billion last week. Fourteen companies reported losses ranging from $294,000 to $28.4 million. The four other firms reported profits of $4.5 million to $11 million.
The companies combined to employ 1,197 locally, up 8.7% from a year ago, and 2,063 firmwide, up 13%.
• No. 1, Terra Tech Corp., an Irvine-based manufacturer of farming products for growing marijuana, reported the highest revenue growth, 234% to $28.7 million. It has a $123 million market cap, but shares have fallen two-thirds in the past year (see separate article, page 25).
• GreenGro Technologies Inc. of Anaheim ranks No. 2. Its revenue almost tripled to nearly $1.7 million in the past two years. The company provides farming services to cannabis growers.
• Netlist Inc., an Irvine-based maker of memory subsystems, is No. 3, as revenue almost tripled to $29 million. It’s reduced its OC workforce 26% to 31 and companywide employment 16% to 81. The company has about a $46 million market cap.
