PLEASE NOTE: As of 2014, the PROFIT will no longer be publishing the HOT 50 ranking of Canada's Top New Growth Companies. We invite you to review our past rankings (and related coverage) in these pages. Thank you for your interest.


Benefits of participation

1. What is the PROFIT HOT 50?
The PROFIT HOT 50 is the premier ranking of Canada's Emerging Growth Companies based on two-year revenue growth. Results of our annual survey, with stories profiling these growth leaders, are published in the October issue of PROFIT.

2. Why should my company enter the PROFIT HOT 50?
Past winners report they have benefited in many ways from their appearance on the list. The PROFIT HOT 50 can help you:

  • Receive local and national media exposure
  • Motivate your employees
  • Attract new investors and customers
  • Build valuable new alliances

Plus, leaders of the PROFIT HOT 50 receive a pass to GrowthCamp, a leadership conference featuring top business speakers, unmatched networking opportunities, seminars and workshops.

Ranking methodology

3. Who can enter the PROFIT HOT 50?
The 2013 edition of the PROFIT HOT 50 is open to private and publicly traded companies that:

  • were founded in 2008 through 2010;
  • are headquartered and have significant operations in Canada;
  • are Canadian-owned; if private, Canadians must own at least 50% of the firm; publicly traded companies with less than 50% Canadian ownership will be judged by PROFIT on a case-by-case basis;
  • are independent (i.e., not a division or subsidiary, except of a holding company);
  • operate at arm's length from related companies that have also declared their candidacy for the ranking (see point 12).
  • Non- and not-for-profit organizations are encouraged to enter, although PROFIT will consider such candidates on a case-by-case basis.

4. How do you rank the PROFIT HOT 50?
The PROFIT HOT 50 ranks firms on percentage revenue growth over two years. This year, participating firms must reveal their gross revenues for 2010 and 2012. (Submit your revenue to PROFIT in U.S. dollars if you use this currency for reporting.)

5. What financial information will be published about the companies?
To better serve participating companies, we're changing the financials reported in the PROFIT HOT 50 ranking as follows:

  • revenue figures for the most recent year (e.g., 2012 or 2013) will be published only as a range for those private companies that request this treatment (e.g., an actual revenue figure of $3.7 million might be published as “$2-5 million”)
  • for publicly traded companies, the actual revenue figure may be published
  • we will no longer publish revenue figures of the year two years prior (e.g., 2010 or 2011)
  • we will no longer publish any information about the profitability of individual companies
  • SAMPLE: The financial data in a firm’s 2013 PROFIT HOT 50 listing would be presented like this: “EntrantCompany Ltd. / 2012 revenue: $2-5 million / 2-year growth: 127%”

6. How is revenue recognized for the ranking?
PROFIT defines gross annual revenue per generally accepted accounting principles (GAAP). Sales that cannot be booked as revenue under GAAP do not count for the purposes of the PROFIT HOT 50. (For instance, a travel agency can claim as revenue its commissions on airline tickets sold, but not the total dollar value of the tickets.) Gross revenue must be reported net of returns and discounts. Franchisors must report corporate revenue only.

7. How are candidates' claims verified?
All candidates must submit complete financial statements for the fiscal periods used to calculate the two-year growth rate.

Eligibility requirements

8. Are there minimum revenue requirements?
Qualifying companies must have revenue of at least $500,000 in the most recent year of the two-year growth calculation (i.e., 2012/2013), and will be ranked based on a minimum of $100,000 in revenue in the base year (i.e., 2010/2011). This means that companies reporting revenue below the base-year revenue minimum will have their revenue for that period lifted to $100,000 for the purpose of calculating two-year growth that is not grossly exaggerated by immaterial differences in the base-year revenues of otherwise equal candidates; for instance, a company that grows from $1 to $1 million would have twice the growth rate of a company that grows from $2 to $1 million.

Here's a sample calculation. A company that reports 2012 revenue of $1.2 million and actual 2010 revenue of $6,500 would be assigned the minimum 2010 revenue of $100,000, resulting in a two-year growth rate of 1,100%: (1,200,000 - 100,000) / 100,000) * 100 = 1,100%.

9. Should we report fiscal or calendar revenue?
This year, the PROFIT HOT 50 asks for revenues from the most recent fiscal year completed through May 31, 2013 and from the fiscal year two years prior.

For instance, firms with a Sept. 30 year-end will be ranked on the basis of their fiscal years ending Sept. 30, 2012 and Sept. 30, 2010. In the case of a March 31 year-end, we require revenues for the years ending March 31, 2013 and March 31, 2011.

10. What if my fiscal year-end has changed in the past two years?
We encourage you to enter the PROFIT HOT 50 or call our toll-free hotline at 1-800-713-GROW. Each case will be considered individually.

11. Are franchisors or franchisees eligible for the PROFIT HOT 50?
Franchisors are eligible; franchisees are not. And franchisors are ranked by corporate revenue only; they should not report system-wide sales.

12. Can related companies apply separately?
In the case of related firms that do not operate at arm's length from one another, only one of those companies is eligible. Also, divisions and subsidiaries are ineligible.

How to enter

13. How do I enter the PROFIT HOT 50?
Fill in an online ballot. Or print it out and fax it to (416) 764-1404, or mail it to:

One Mount Pleasant Rd., 11th floor
Toronto, ON M4Y 2Y5

14. How much does it cost to enter the PROFIT HOT 50?
There is no entry fee for the program.

15. What happens after I enter the PROFIT HOT 50?
If your company's growth rate appears to place you on our list, we will contact you for an interview and to verify financial information.

Terms and conditions

16. Can my company be disqualified?
PROFIT reserves the right to remove any company from the PROFIT HOT 50 ranking at any time if PROFIT determines that inclusion of that company would discredit PROFIT or its ranking programs. PROFIT also reserves the right to withdraw invitations to events related to the rankings.

For more information

17. I need more information. Who do I call?
You can get more details or answers to company-specific questions by calling the toll-free PROFIT HOT 50 hotline at 1-800-713-GROW (1-800-713-4769).

"Since our recognition in last year's PROFIT HOT 50 list, business has basically doubled for us. We have moved to a bigger office and recently, we have formed a strategic joint-venture with another IT firm. I really must thank you guys for the exposure and credibility that the PROFIT HOT 50 gave us. it was a great boost at the right time. "

Sathish Bala
NewAge Inc. Toronto

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