Despite Economic Slow Down, Paycom Continues to Grow and is Honored by Inc. 500/5000 for the Fourth Time

OKLAHOMA CITY, August 12, 2009 –Today Inc. ranked Paycom, an internet payroll company headquartered in Oklahoma City, No. 1,916 on its annual ranking of the 5,000 fastest-growing private companies in the country.   The list represents the most comprehensive look at the most important segment of the economy—America’s independent-minded entrepreneurs. Consumer electronics maker Vizio, Internet giant GoDaddy, rental car service Zipcar, and beverage maker Honest Tea are among the prominent brands featured on this year’s list.

“Savvy trend spotters and those who invest in private companies know that the Inc. 5000 is the best place to find out about young companies that are achieving success through a wide variety of unprecedented business models, as well as older private companies that are still expanding at an impressive rate,” said Inc. 5000 project manager Jim Melloan. “That’s why our list is so eagerly anticipated every year.”

Paycom processes payroll for customers in all 50 states and has also enjoyed significant growth over the last year, adding five new sales offices and expanding on two floors of its Oklahoma City headquarters at Lakepoint Towers located at 4005 NW Expressway. In addition to their offices in Oklahoma City, Tulsa, Denver, Dallas, Atlanta, Chicago, and Fort Worth, they have added offices in Tampa, Austin, Houston, Charlotte, and Phoenix.

Oklahoma entrepreneur and Paycom CEO Chad Richison is excited about Paycom’s fourth year to be recognized by Inc. “The success and growth of our company and this continued recognition from Inc. is a testament to our ability to listen to our customers and provide them with the cost effective solutions they need to streamline their payroll and HR processes.”

Paycom eliminates the burden of installed payroll software’s purchase price, maintenance and support by providing its payroll product as Software as a Service (SaaS) over the Internet. Customers enjoy an integrated solution for not only payroll but time and attendance, HR, background checks, benefit administration and COBRA with the online convenience that makes it more efficient to operate and less expensive than traditional alternatives.  Paycom has an impressive 99% customer retention rate.

“In these economic times, customers don’t want the financial burden of the upfront costs associated with purchasing installed software,” said Paycom VP of Sales Jeff York.  “With Paycom they pay as they go for the online services they use. Because we offer an entire suite of services in one system, customers eliminate the need to purchase, maintain, and interface multiple payroll and HR systems which can save them a ton of money and time.”

The 2009 Inc. 5000, unveiled today on Inc.com, serves as a unique report card on the U.S. economy. Despite the ongoing recession, aggregate revenue among the companies on the list actually increased to $214 billion, up $29 billion from last year, with a median three-year growth rate of 126 percent. The Inc. 5000 are responsible for creating more than 1 million jobs since their founding, making the list perhaps the best example of the impact private, fast-growing companies can have on the economy. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found on Inc.com.

This year’s list also offers a preview of which industries are poised for growth in coming years. With an average growth rate of 667 percent, Insurance ranked as the top industry overall. Government Services was the top industry gainer with 252 companies on this year’s list, up from 135 last year. Health is the top industry by both total revenue ($22.7 billion) and total employment (156,223 jobs).

The Hottest Regions for Fast-Growing Companies

Once again, California tops the Inc. 5000 with the most companies of any state with 612. The Golden State is followed by Texas (393), New York (316), Florida (263), and Virginia (261). All 50 states, plus Washington, D.C., and Puerto Rico, are represented on this year’s list.

New York boasts 371 Inc. 5000 companies, making it the top metropolitan area, followed by Washington, D.C. (317), Los Angeles (253), Atlanta (209), and Chicago (203).

The Inc. 5000 at a Glance

Bolstered by this year’s No. 1 company, Northern Capital Insurance, Insurance emerged as the top industry, with an average growth rate of 667 percent. Other strong performers include Energy (523 percent) and Government Services (491 percent).

In total, the companies on the Inc. 5000 have created more than 1 million jobs. Health is the top employer with 156,223 jobs, followed by Business Products & Services (122,911), IT Services (89,632), Food & Beverage (86,572), and Construction (65,494).

IT Services had the most companies on this year’s list with 658, followed by Business Products & Services (502), Advertising & Marketing (398), Construction (354), and Manufacturing (342).

Topping this year’s list is Northern Capital Insurance, a Miami-based firm that is helping to revolutionize Florida’s ailing insurance industry. The company generated $95 million in revenue in 2008 and an impressive three-year growth rate of 19,812 percent.

The top woman-owned company is P3S (No. 17 overall), a San Antonio–based firm that provides IT network security and physical security services, mostly to the Defense Department. P3S, owned by Mary Ellen Trevino, recorded revenue of $13.5 million in 2008 and a three-year growth rate of 5,898 percent. The top minority-owned company is Harley Stanfield (No. 3 overall), a Washington, D.C.–based real estate investment firm that buys existing properties, makes them energy efficient, and then resells them as investment properties. Harley Stanfield, founded by Cedric Franklin, posted revenue of $38.4 million in 2008 and a three-year growth rate of 13,350 percent.

The Inc. 5000 posted an aggregate revenue of $214 billion in 2008, up nearly 16 percent from the previous year. The top five industries by total revenue include Health ($22.7 billion), Business Products & Services ($19.6 billion), Construction ($18.8 billion), Energy ($14.7 billion), and IT Services ($13.2 billion).

The Top 10 Inc. 5000 Companies Ranked by Growth

Rank	Company	Location	Industry	Year Founded	Three-Year Revenue Growth	2008 Revenue
No. 1	Northern Capital Insurance	Miami	Insurance	2003	19,812.2%	$95 million
No. 2	National Retirement Partners	San Juan Capistrano, California	Financial Services	2003	13,416.4%	$47.4 million
No. 3	Harley Stanfield	Washington, D.C.	Real Estate	2003	13,350.3%	$38.4 million
No. 4	Perfect Fitness	Mill Valley, California	Consumer Products & Services	2002	12,749.3%	$63.5 million
No. 5	IntegraClick	Sarasota, Florida	Advertising & Marketing	2002	12,654.4%	$96.4 million
No. 6	Kiva Systems	Woburn, Massachusetts	Logistics & Transportation	2003	10,399%	$21.4 million
No. 7	Freedom Health	Tampa	Insurance	2004	10,035.3%	$182.8 million
No. 8	One Technologies	Dallas	Advertising & Marketing	2000	9,946.4%	$50.7 million
No. 9	MediaTrust	New York City	Advertising & Marketing	2004	9,481.1%	$38.3 million
No. 10	Criterion Systems	Vienna, Virginia	Government Services	2005	8,433.7%	$20.3 million

The Top 10 Inc. 5000 Companies Ranked by Total Revenue

Overall Rank	Company	Location	Industry	2008 Revenue
No. 4606	Hy-Vee	West Des Moines, Iowa	Food & Beverage	$6.2 billion
No. 3304	CH2M Hill	Englewood, Colorado	Engineering	$5.6 billion
No. 826	Maxum Petroleum	Old Greenwich, Connecticut	Energy	$4.9 billion
No. 1178	Lansing Trade Group	Overland Park, Kansas	Business Products & Services	$4.4 billion
No. 1710	Medical Management Options	Baton Rouge, Louisiana	Health	$4.4 billion
No. 4445	Kingston Technology	Fountain Valley, California	Computer Hardware	$4 billion
No. 3771	Brightstar	Miami	Telecommunications	$3.6 billion
No. 3474	CoBank	Greenwood Village, Colorado	Financial Services	$2.6 billion
No. 4219	Cooper-Standard Automotive	Novi, Michigan	Manufacturing	$2.6 billion
No. 4288	IASIS Healthcare	Franklin, Tennessee	Health	$2.1 billion

Methodology

The Inc. 5000 is ranked according to percentage revenue growth from 2005 through 2008. To qualify, companies must have been founded and generating revenue by the first week of 2005, and therefore able to show four full calendar years of sales. Additionally, they have to be U.S.-based, privately held, for profit, and independent — not subsidiaries or divisions of other companies — as of December 31, 2008. Revenue in 2005 must have been at least $200,000, and revenue in 2008 must have been at least $2 million. The top 10 percent of companies on the list comprise the Inc. 500, now in its 28th year.

About Inc. Magazine

Founded in 1979 and acquired in 2005 by Mansueto Ventures LLC, Inc. (www.inc.com) is the only major business magazine dedicated exclusively to owners and managers of growing private companies that delivers real solutions for today’s innovative company builders. With a total paid circulation of 712,961, Inc. provides hands-on tools and market-tested strategies for managing people, finances, sales, marketing, and technology. Visit us online at Inc.com.

About the Inc. 500|5000 Conference

Each year, Inc. and Inc.com celebrate the remarkable achievements of today’s entrepreneurial superstars—the privately held small businesses that drive our economy. The Inc. 500|5000 Conference & Awards Ceremony brings together members of the Inc. 5000 community, both a new class of Inc. 5000 honorees and the list’s alumni, for three days of powerful networking, inspired learning, and momentous celebration. Please join us September 23–25, 2009, at the Gaylord National Resort and Convention Center in National Harbor, Maryland. For more information about the 2009 Inc. 500|5000 Conference & Awards Ceremony, and to register, visit www.Inc5000event.com. Stay connected with Inc. Events by following @IncEvents on Twitter.

About Paycom With over 250 employees, Paycom has offices in 12 markets and clients in all 50 states.

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