Orange County’s fastest-growing public companies got faster this year.
This week’s Special Issue is based on the 30 publicly traded companies that are based here and have seen revenues increase by at least 15% over the past two years.
The companies’ revenue data have been compiled for the Business Journal by B. Riley & Co., a Los Angeles-based investment bank and research firm with an office in Newport Beach.
The latest batch of OC’s fastest-growing public companies had a total of $12 billion in revenue for the year ended June 30, a 41% increase from the $8.5 billion two years earlier.
The pace of growth is up significantly from our last two annual lists, both of which showed increases of about 24% over the two-year period we use as a benchmark for fast growers.
This year’s list is smaller in terms of total entries compared to recent years. A total of 37 companies made the list last year, when a two-year rate of growth of at least 15% was required, the same as this year.
The 2013 list included 49 companies and a lower barrier to entry—companies needed only a 10% two-year rate of growth.
Revenue wasn’t the only place where this week’s entries saw fast growth. The local work force employed by the companies has grown at double the pace of OC’s overall job gains during the past year.
The entries currently account for 10,000 jobs here, up 6% from a year earlier. OC’s overall economy saw the number of jobs grow about 3% during the same period for a total of about 1.5 million, according to the state Employment Development Department’s latest monthly report published in October.
Companywide totals indicate the entries have 66,727 employees overall, up 13% year-over-year. The nationwide pace of job gains was 2% over the year through September, when the total number of employees on payroll came to 142.3 million, according to data from the Bureau of Labor Statistics.
Our list includes data other than revenue and employment, such as the companies’ recent net income and market capitalization, though those figures don’t affect the rankings.
The 30 companies are divided into three categories separated by size; they’re ranked within their respective categories based on percentage gains.
Large
The Large Companies category includes businesses that had revenues of $500 million or more for the year through June.
The eight companies featured on this list combined for $10.4 billion in recent annual revenue, up 38% from the $7.6 billion two years earlier.
All eight were profitable, with a combined net income of $543.6 million in the recent year for a profit margin of about 5%.
The total market capitalization of the large companies came to $29.8 billion as of the middle of last week.
The group accounts for slightly more than 6,800 jobs in Orange County, up 3.5% over the past year. The OC work force makes up about 11% of the companies’ combined overall employee base, which totaled 60,556, up 13% year-over-year.
n William Lyon Homes Inc. had the biggest percentage growth over two years, logging a 145% increase in revenue to $1 billion from $415 million (see related story, page 1).
The Newport Beach-based homebuilder had $737 million in market cap as of mid-last week. Its stock price has fallen about 9% over the past two years.
William Lyon Homes has 160 employees in Orange County and 584 overall, down about 2% and 1%, respectively, from a year earlier.
n Irvine-based CalAtlantic Group Inc.—the newly renamed and combined entity that resulted from the recent deal between Standard Pacific Corp. and Ryland Group Inc.—had a 64% increase in revenue over two years to $2.6 billion, good for the No. 2 spot. The data on revenue and growth reflect Standard Pacific’s operations as of June 30, prior to its combination with Ryland, which took effect last month. CalAtlantic is the largest company on the list by revenue, even before it counts revenue from Ryland’s operations, which will be reflected on future Business Journal lists.
CalAtlantic has 219 employees locally, up about 3% year-over-year, and 1,250 companywide, up 12%.
n Edwards Lifesciences Corp. had $2.4 billion in recent 12-month revenue, a 23% increase that landed the Irvine-based heart valve maker at No. 5.
Its stock price has increased about 97% over the past two years for a recent market cap of $15.8 billion, the biggest by far on the list. It’s also the biggest local employer, with more than 3,300 working in OC, up 7%. It has 9,701 workers companywide, up about 8%.
n Masimo Corp., No. 7, had a 16% increase to $606 million. It had the largest profit margin on the list, at 13%, with a net income for the year through June of $76 million.
The Irvine-based maker of patient monitoring products had $1.9 billion in market cap, with its stock price up about 39% over two years.
It has added 12 employees locally—up 2%, for a total of 583—while cutting its companywide headcount by 5%, or nearly 200, to 3,486.
Midsize
Midsize companies had between $100 million and $499.9 million in revenue for the year through mid-2015.
The midsize category comprises six companies, which combined for $1.1 billion in recent revenue, up 73% over two years. All but one company were profitable, for a combined net income of $31.8 million.
The six companies combined for about $2.2 billion in market cap.
They employ about 1,700 workers here, up 9% from a year ago. Their OC total accounts for 44% of their overall work force, which summed up to about 3,900, up 13% year-over-year.
n Banc of California Inc. topped the list, with 176% revenue growth over two years to $409.4 million (see related story, page 25). The Irvine-based bank is the list’s biggest employer, with 848 workers in OC, up by 17% year-over-year, and about 1,650 companywide, up 10%.
n Irvine-based Pacific Premier Bancorp Inc. was No. 2, with a 74% revenue increase to $115.5 million. The bank had a 16% profit margin, the highest in the midsize category.
Pacific Premier boosted its local work force by 13% to 175 while growing its companywide job base 27% to 330.
n Anaheim-based Eaco Corp. made the list at No. 6 with 18% revenue growth to $141.1 million. Shares of the distributor of electronic components and fasteners trade on the OTC exchange.
Eaco boosted its OC work force by 7% over the past year to 147 while keeping its companywide total the same at 424.
Small
The Small Companies category includes enterprises that had up to $99.9 million in revenue for the 12 months through June. The segment features 16 companies, which collectively had $473.6 million, up 52% over two years. They combined for a net loss of about $89 million for the recent year, driven down by 10 companies that were in the red.
Total market cap for the Small category was $976 million.
The companies employ 1,473 workers locally, a 15% increase over the past year. Their OC headcount makes up 65% of their overall employment total of 2,278, up 24% year-over-year.
n Terra Tech Corp. was No. 1, with a 754% increase in revenue to $8.6 million for the year through June, during which time it reported a loss of $17 million (see related story, page 27).
Newport Beach-based Terra Tech, which designs and manufactures horticulture equipment, now has 11 employees in OC, its sole location, versus two a year earlier.
n California Republic Bank in Irvine made the list at No. 5 with a 117% jump in revenue to $90 million, the biggest revenue figure in the category. Its net income also was the biggest on the list, at $12.5 million.
The bank, which is among the largest banks with headquarters in Orange County by assets, has 233 employees in OC, up 38%, and 432 overall.
