Upload
stephanie-d-mckenzie
View
58
Download
2
Embed Size (px)
Citation preview
GREENBERG TRAURIG, LLP ATTORNEYS AT LAW WWW.GTLAW.COM ©2011. All rights reserved.
Atlanta – Finance and Operations January 16, 2013
Contact:Stephanie McKenzie Human Resources [email protected] 678-553-2328Dean Garcia Finance [email protected] 678-553-2247Tony Hatchett Business Director [email protected] 678-553-2350
1
OverviewHeadcount - Average attorney headcount was up slightly to 98.95 in 2012 versus 96.6 in 2011.
Productivity – Attorneys worked an average of 1,946 hours in 2012, down 2.9% from 2,004 in 2011. Associates averaged 1,976 hours in 2012, down from 2,062 in 2011. Shareholders averaged 1,993 hours in 2012, down from 2,015 in 2011.
Rates - Average rate/attorney was $410, up 3% from $398 in the prior year.
Billings - Atlanta’s billing attorneys billed $104.7M million in 2012, down from $108.7 million in the prior year. Billings as a percentage of work performed declined slightly to 96% (from 97%).
Revenue – Atlanta’s gross revenue (collected) was $85.1 million, up $3.2 million (3.9%) over the prior year. On a per attorney basis, annualized revenue was $860K, an increase of 1.4% over 2011. Relative to work performed, the collection percentage was 95.0% versus 92.7% in the prior year.
Overhead - Overhead expense was $270K per attorney, an increase of $26K (10.7%) from the prior year. Increase was driven primarily by increases in depreciation, moving expense, malpractice insurance and shared service allocations (GT Evolve, Intake/Conflicts etc)
Overtime / FTE Ratios- Only slight improvements were made in overtime expenses and Secretarial Ratios
2
Comparative Analysis
2010 2011 2012 $ %
Avg. # of Attys 97.6 96.6 99.0
REVENUEGross Revenue 74,118,056 81,907,492 85,076,174 3,168,682 3.9%Gross Rev per Atty 759,484 848,079 859,790 11,711 1.4%
Atty & Directors, including On Account:Fee Revenue 65,773,777 73,232,454 76,363,622 3,131,168 4.3%% of Atty worked performed 89.4% 95.0% 96.7% 0 1.8%Fee Rev per Atty annualized YTD / Prior YE Actual 673,981 758,257 771,739 13,482 1.8%
Non-Atty:Paralegal Revenue 6,894,346 7,094,363 6,606,429 (487,934) -6.9%% of Paralegal Work Performed 81.8% 81.0% 82.8%Rev per Paralegal annualized YTD / Prior YE Actual 224,269 227,968 225,322 (2,646) -1.2%
Costs:Cost Income 1,313,831 1,386,215 1,323,144 (63,071) -4.5%% Cost Income/Revenue 1.8% 1.7% 1.6%Cost Income per Atty 13,463 14,353 13,372 (981) -6.8%
BILLINGSGross Fee Bil l ings 75,771,075 85,083,411 84,819,445 (263,966) -0.3%% of Work Performed 91.3% 97.9% 96.3%
Change from PY
3
Revenue / Billings 2007 - 2012
Revenue Increase $3.2M to $85.1M
Gross Billings declined slightly (-.3%)
Revenue gains driven by 3% increase in rates, offset slightly by decreases in productivity
Revenue per attorney increase to $860K
Work performed declined from $111.9M to $107.8M, while Billed fees declined from 108.7M to $103.7M
4
2007 2008 2009 2010 2011 2012Revenue 58.0 58.2 61.3 74.1 81.9 85.1Gross Fee Billings 59.3 62.2 65.5 75.8 85.1 84.8Revenue Per Atty 725 678 711 759 848 860
300
400
500
600
700
800
900
50.0
55.0
60.0
65.0
70.0
75.0
80.0
85.0
90.0
Rev
per A
tty
($ T
hous
and)
Atla
nta
Reve
nue
ATL Revenue & Billings
2007 2008 2009 2010 2011 2012Work Performed 74.7 71.2 91.4 108.5 111.9 107.8Fees Billed 68.2 68.9 83.8 98.3 108.7 103.7
50.0
60.0
70.0
80.0
90.0
100.0
110.0
120.0
Wor
k Pe
rfor
med
& B
illed
by
ATL
Billi
ng A
tty
Billed Fees (Incl Exports)
Comparative Analysis2010 2011 2012 $ %
Attorneys:Hrs Wrk'd - Attys 188,580 193,542 192,553 (989) -0.5%Value of Hours - Attys 73,583,696 77,110,158 78,996,831 1,886,673 2.4%Avg Hourly Rate - Attys 390.20 398.42 410.26 12 3.0%Hrs Wrk'd per Atty, annualized 1,932 2,004 1,946 (58) -2.9%# of Attys 97.6 96.6 99.0 2 2.5%
Shareholders:Avg Hourly Rate - Shareholders 499.21 519.87 534.46 15 2.8%Hrs Wrk'd per Shareholder, annualized 1,975 2,015 1,993 (23) -1.1%# of Shareholders 40.9 38.1 42.7 5 12.0%
Associates:Avg Hourly Rate - Associates 310.82 326.50 328.23 2 0.5%Hrs Wrk'd per Associate, annualized 1,993 2,062 1,976 (86) -4.2%# of Associates 40.3 40.3 38.5 (2) -4.5%
Counsels & Equiv:Avg Hourly Rate - Counsels & Equiv 372.19 406.20 439.56 33 8.2%Hrs Wrk'd per Counsel & Equivalent,annualized 1,347 1,770 1,705 (66) -3.7%# of Counsels & Equiv 5.5 5.8 7.0 1 19.9%
Contract Attys:Avg Hourly Rate - Contract Attys 275.09 251.38 171.32 (80) -31.8%Hrs Wrk'd per Contract Atty, annualized 1,841 1,888 1,809 (79) -4.2%# of Contract Attys 10.9 12.3 10.8 (2) -12.5%
Paralegals:Avg Hourly Rate - Paralegals 176.46 176.41 183.22 7 3.9%Hrs Wrk'd per Paralegal, annualized 1,600 1,596 1,486 (111) -6.9%# of Paralegals 29.9 31.1 29.3 (2) -5.8%
Total Office/Firm:Hours Worked - Total Offi ce/Firm 246,182.00 253,451.00 246,327.56 (7,123) -2.8%Value of Hours - Total Offi ce/Firm 82,964,709 86,898,118 88,119,040 1,220,922 1.4%% Collected of Total Work Performed 87.8% 92.7% 95.0% 2.3% 2.5%
Change from Prior
• Productivity declined in all categories but most notably with paralegals (-6.9%).
• Contract Atty rates declined significantly. Rates have been adjusted and should bounce back in 2013.
• Shareholder FTE’s increased by 5 and Counsels increased by 1, while Associates and contract attorneys declined a total of -4.
5
Hours / Rates and 2013 Outlook
$-
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
2007 2008 2009 2010 2011 2012
Rate
Average RatesShareholders Associates Counsels & Equiv
Contract Attys Paralegals
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2,000
2,100
2,200
2007 2008 2009 2010 2011 2012
Hour
s
Hours / ProductivityShareholders Associates Counsels & Equiv
Contract Attys Paralegals
Overall Atlanta rates increased 3% from $398 to $410 in 2012
Contract Atty rates depressed because several are billed at cost. Rates recently adjusted.
Rates budgeted to increase 2% in 2013
Productivity declined 2.8% in 2012 from 2,004 hrs to 1,946 hrs.
Productivity declines expected in 2013 in many practice groups
Revenue budgeted to decline $6M (7%) in 2013 due to lower demand/productivity and continued pricing pressures. A like decrease in overhead equates to $19K/Atty reduction.
6
Overhead (Per Atty) – Staff Comp2010 2011 2012 $ % $ %
GEN'L & ADMIN EXPENSESSalaries-Paralegal 20,878 21,989 21,647 1,111 5.3% (342) -1.6%Overtime Paraprofessionals 4,800 4,425 4,079 (375) -7.8% (346) -7.8%
Salaries-Secretaries 24,907 25,294 24,280 387 1.6% (1,014) -4.0%Overtime Secretaries 4,877 4,743 4,235 (134) -2.7% (508) -10.7%
Salaries-Other Administrative Staff 17,374 18,792 21,350 1,418 8.2% 2,558 13.6%Overtime Other Administrative Staff 1,771 1,954 2,694 183 10.3% 740 37.9%
Total Staff Compensation 74,607 77,197 78,285 2,590 3.5% 1,088 1.4%
Total Salaries-Overtime 11,448 11,122 11,008 (326) -2.8% (114) -1.0%
Var. 2011 vs 2010 Var. 2012 vs 2011
Staff Compensation increased $1,088 / Attorney (+1.4%).
Overtime decreased slightly from $11,122 /attorney to $11,008
7
Overhead – Overtime v. Total Comp.
8
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
PracticeGroups
SupportArea
PracticeGroups
SupportArea
PracticeGroups
SupportArea
2010 2010 2011 2011 2012 2012
Overtime
Total Comp
Year Group Overtime Total Comp2010 Practice Groups $994,874 $6,032,7582010 Support Area $99,834 $873,5062010 Total $1,094,707 $6,906,2642011 Practice Groups $994,027 $6,336,1082011 Support Area $96,925 $953,8592011 Total $1,090,952 $7,289,9672012 Practice Groups $952,296 $6,507,6102012 Support Area $127,480 $880,0672012 Total $1,079,776 $7,387,677
Overtime (Per Atty)
New Overtime Procedures in effect 2013
Pre-approval Required
30 Minute Lunch
Overtime tagged to Shareholders
Expense will be reported Monthly and included in year-end statements
2009 2010 2011 2012
Paralegals 312,880 468,462 427,324 403,616
Secretaries 375,968 476,990 457,753 419,124
Other Administrative Staff 131,381 172,838 188,715 266,590
820,230 1,118,291 1,073,792 1,089,330
Number of Attorneys 86.21 97.59 96.58 98.95
Overhead per Attorney 9,514 11,459 11,118 11,008
Peer Group Avg. (Per Attorney) 4,327 4,719 4,874 4,568
Overtime Expense
9
FTE Ratios2012 2011 2010 2012 2011 2010
FTE RATIO FTE RATIO FTE RATIO FTE RATIO FTE RATIO FTE RATIOATTORNEYS: SHAREHOLDERS 873.14 0.52 905.64 0.53 881.60 0.52 43.67 0.46 40.67 0.43 37.67 0.37 ASSOCIATES 607.48 0.36 600.39 0.35 624.70 0.37 38.00 0.40 39.00 0.41 44.94 0.45 OF COUNSEL AND OTHER * 207.85 0.12 196.45 0.12 199.12 0.12 14.14 0.15 15.40 0.16 17.88 0.18 TOTAL 1,688.47 1,702.48 1,705.42 95.81 95.07 100.49 DEPARTMENTAL STAFF: SECRETARIES 526.42 0.31 568.55 0.33 596.31 0.35 39.10 0.41 42.01 0.44 41.90 0.42 DOCUMENT SERVICES 8.94 0.01 12.29 0.01 24.16 0.01 - - 0.40 0.00 0.40 0.00 LEGAL DEPTS.- ADMIN STAFF 75.33 0.04 72.20 0.04 82.95 0.05 19.33 0.20 18.55 0.20 17.65 0.18 SUB TOTAL 610.69 0.36 653.04 0.38 703.42 0.41 58.43 0.61 60.96 0.64 59.95 0.60 PARALEGALS & CONSULTANTS 231.49 0.14 249.71 0.15 277.03 0.16 26.00 0.27 30.44 0.32 32.77 0.33 PARA LEGAL CLERK 24.64 0.01 32.75 0.02 37.90 0.02 1.00 0.01 1.00 0.01 1.00 0.01 SUB TOTAL PL & C 256.13 0.15 282.46 0.17 314.93 0.18 27.00 0.28 31.44 0.33 33.77 0.34 SUB TOTAL 866.82 0.51 935.50 0.55 1,018.35 0.60 85.43 0.89 92.40 0.97 93.72 0.93 NON DEPARTMENTAL STAFF: SUB TOTAL SUPPORT STAFF 503.77 0.30 501.58 0.29 513.86 0.30 23.45 0.24 28.70 0.30 25.65 0.26 SUB-TOTAL 1,370.59 0.81 1,437.08 0.84 1,532.21 0.90 108.88 1.14 121.10 1.27 119.37 1.19 LAW CLERKS 42.12 0.02 17.48 0.01 10.15 0.01 1.84 0.02 - - - - SUMMER ASSOCIATES - - - - - - - - - - - - TOTAL SUPPORT STAFF 1,412.71 0.84 1,454.56 0.85 1,542.36 0.90 110.72 1.16 121.10 1.27 119.37 1.19 TOTAL SUP.STAFF EXC. PARALEGALS, SUMMER ASSOC & LAW CLERKS 1,139.10 0.67 1,187.37 0.70 1,255.18 0.74 82.88 0.87 90.66 0.95 86.60 0.86
ALL OPERATING OFFICES ATL OFFICE
2.45 / 1
3.21 / 1
Atlanta Secretarial Ratio is 2.45 : 1 versus Firm average of 3.21 : 1
Atlanta Support Staff slightly better than firm average
10
Secretarial Coordinator
□ The Secretarial Coordinator will principally be responsible for the equitable management of workflow across their assigned departments. Other anticipated functions include: Make sure there is coverage for any assistant who may be out of
the office. Assist with work flow by ensuring even distribution of work within their responsible group.
Promote a team environment and strive to make GT a great place to work.
Act as a liaison between the staff, attorneys and human resources. Recommend any training that may be beneficial for their work
area. Network with other office coordinators and keep communication
flowing.
11
Associate & Paralegal Profitability
2011 2012
Associates 2,829,522 702,463
Paralegals 1,175,598 150,139
Total 4,005,120 852,602
Profitability decline driven by lower productivity (-4.2% Associates, -6.9% Paralegals) and slightly lower FTEs
Associate and Paralegal rates had minimal gains in 2012
12
Overhead (Per Atty) – Gen & Admin
• Telephone Expense – Increase resulting from new phone system and VOIP charges
• Photocopies – Flat with prior year. Highlighted as an area of opportunity
• Printing & Engraving – 2012 expense includes one-time move relates (new business cards etc.)
2010 2011 2012 $ % $ %
GEN'L & ADMIN EXPENSES- Cont.Payroll Taxes 5,994 6,263 6,351 269 4.5% 88 1.4%Trust Plans 0 2,097 2,056 2,097 (41) -2.0%
Insurance-Health-Staff 5,877 7,612 7,367 1,735 29.5% (245) -3.2%Insurance-Life-Staff 563 359 426 (204) -36.2% 67 18.7%
Temp Services-Agencies-Non-timekeepers 74 0 608 (74) -100.0% 608Temp Services-Agencies-Timekeepers 3,746 3,335 2,807 (411) -11.0% (528) -15.8%Temp Services-Independent-Non-timekeepers 73 23 0 (50) -68.5% (23) -100.0%Temp Services-Independent-Timekeepers 0 0 5 0 5Temp Services-Advertising 0 0 0 0 0Staff Acquisition 1,172 1,614 1,324 442 37.7% (290) -18.0%Offi ce Supplies 1,288 1,709 1,594 421 32.7% (115) -6.7%Outsourcing-Offi ce Services 2,566 3,293 4,004 727 28.3% 711 21.6%Telephone Expense 1,885 1,586 2,974 (299) -15.9% 1,388 87.5%Telephone-Long Distance 278 261 153 (17) -6.1% (108) -41.4%
Fax-Charged 0 0 0 0 0Messenger Service 678 797 939 119 17.6% 142 17.8%Photocopies 3,189 3,025 3,075 (164) -5.1% 50 1.7%Administrative Travel 172 337 354 165 95.9% 17 5.0%Postage 463 361 389 (102) -22.0% 28 7.8%Printing & Engraving 185 177 463 (8) -4.3% 286 161.6%Equipment Rental 42 42 74 0 0.0% 32 76.2%
Furniture Leasing 0 0 0 0 0Equipment Maintenance 4 1 8 (3) -75.0% 7 700.0%
Var. 2011 vs 2010 Var. 2012 vs 2011
13
Overhead (Per Atty) – Gen & Admin
• Depreciation – Increase resulting from move to Terminus (build-out)
• Information & Research– Down slightly from prior year. Highlighted as an area of opportunity
• Record Storage– Increase resulting from ~4,000 additional boxes sent offsite during move. Ongoing effort to clean-up
• In-House Moving – Primarily one-time move related expense.
2010 2011 2012 $ % $ %
GEN'L & ADMIN EXPENSES- Cont.Maintenance-Premises 337 488 559 151 44.8% 71 14.5%Maintenance & Repairs 37 8 76 (29) -78.4% 68 850.0%Depreciation Expense 2,767 2,589 8,720 (178) -6.4% 6,131 236.8%Information & Research 8,219 7,904 7,506 (315) -3.8% (398) -5.0%Library Expenses-Local 1,718 1,482 1,548 (236) -13.7% 66 4.5%Gift Expense 0 0 3 0 3Record Storage 683 797 1,019 114 16.7% 222 27.9%Employee Lounge 937 1,057 976 120 12.8% (81) -7.7%Consulting Services 918 1,035 1,471 117 12.7% 436 42.1%Furnishing Expense 282 310 381 28 9.9% 71 22.9%(Gain) Loss-Disposition & Sale 28 0 0 (28) -100.0% 0Taxes - Other than Income 357 412 592 55 15.4% 180 43.7%Computer Expense 3,615 2,008 2,332 (1,607) -44.5% 324 16.1%Holiday Party, Picnic Expense 286 459 364 173 60.5% (95) -20.7%Business Meals 741 511 591 (230) -31.0% 80 15.7%In-House Food Service 369 716 759 347 94.0% 43 6.0%In-House Moving 23 41 4,572 18 78.3% 4,531 11051.2%Bank & E-bill Charges 14 11 5 (3) -21.4% (6) -54.5%Business Staff Dues and Seminars 77 39 61 (38) -49.4% 22 56.4%All Other G & A Expenses 49 64 21 15 30.6% (43) -67.2%TOTAL GEN'L & ADMIN EXPENSES 124,313 130,020 144,815 5,707 4.6% 14,795 11.4%
Var. 2011 vs 2010 Var. 2012 vs 2011
14
Overhead (Per Atty) – Total
• Firm Marketing– Increase resulting expenses associated with Client Open House
• Insurance - Malpractice– Firm allocation
• Other Allocated Expense – Firmwide Shared Service allocations – increases driven by GT Evolve, Human Capital related to new Intake & Conflicts Team.
15
2010 2011 2012 $ % $ %
Firm Marketing 1,911 2,113 3,385 202 10.6% 1,272 60.2%Attorney Recruiting Expense 2,201 1,789 2,109 (412) -18.7% 320 17.9%Rent & Parking Expense 31,493 34,687 34,357 3,194 10.1% (330) -1.0%Property and Casualty Costs Incurred 0 5 0 5 (5) -100.0%Insurance-Malpractice 36,547 32,470 38,242 (4,077) -11.2% 5,772 17.8%Total Contributions 107 147 192 40 37.4% 45 30.6%Costs Written Off 4,712 3,951 2,926 (761) -16.2% (1,025) -25.9%Other Allocated Expenses 32,924 39,109 44,410 6,185 18.8% 5,301 13.6%
OVERHEAD PER ATTY 234,208 244,291 270,436 10,083 4.3% 26,145 10.7%
Revenue (per Atty) - Atlanta 759,484 848,079 859,790Overhead % of Revenue 30.8% 28.8% 31.5%
FIRM Overall Average OH/Rev 32.3% 30.4% 32.4%
Var. 2011 vs 2010 Var. 2012 vs 2011
Overhead (Per Atty) – 2011 – 2012 change
Overhead per attorney increased from $244K in 2011 to $270K in 2012.
Increase primarily driven:
□ Depreciation $6,131
□ Allocations $5,301
□ Moving Exp $4,531
□ Malpractice Ins. $5,772
□ Telephone $1,338
□ Firm Mkt $1,272
□ Staff Comp $1,088
2013 Potential Reductions:
Moving expense of $4,531 per Atty.
Overtime ~2K - $3K
Printers
Information/Research/Library
No Open House in 2013
Depr
ec.
Allo
catio
ns
In-H
ouse
Mov
ing Insu
ranc
e-M
alp.
Tele
phon
e
Firm
Mar
ketin
g
Staff
Com
p
Mis
c Oth
er
240,000
245,000
250,000
255,000
260,000
265,000
270,000
2012 Increases 2012 total $270K
$270
$244K
+0.1K+1.1K+1.3K
+1.4K
+5.8K
+4.5K
+5.3K
+6.1K
2013
Expe
nse
Redu
ction
s
$250K
16
Facilities / Rent / Parking (per Atty)□ Forum Rent ends May 2013
□ Terminus Rent expense will begin amortizing after the Form Lease term ends.
□ Operating Expenses begin 8/2013
□ Free parking through July 2014
17
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2012 2013 2014 2015
Rent / Facilities Expense (per Atty)
Rent Operating - Pass Through Parking A/C & Electric
Conclusion / Outlook
□ Demand for legal services expected to decline in 2013
□ World Class Customer Service
□ Plan to manage overhead expense and improve business processes Manage/reduce overtime expense
Improve Secretary/Staff to Attorney Ratios
Review contracts and reduce overhead expenses
Monitor/manage profitability
Technology upgrades
Employee engagement and continuous improvement
18