Class Reunions

On the occasion of the fifth INC. 100, a look back at what became of the companies on the previous lists.

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The 1983 INC. 100 represents the fifth annual ranking of the fastest-growing publicly held companies in the United States. Only four companies from the charter roster still qualify -- CACI (#79), CPT (#83), Cray Research (#74), and Tandem Computers (#46). Of those, however, only Tandem and Cray have consistently appeared on the list (see sidebar). What of their counterparts and the INC. 100 companies that have followed? Here are highlights from the first four years.

Class of 1979. Launched with INC.'s first issue in April 1979, the charter INC. 100 was heavily oriented toward manufacturing. There were 70 manufacturers, most of which were in the data processing field, although the roster also included 17 oil and gas producers and 13 service companies.

Among the leaders in the computer business were Amdahl, Prime, Tandem, and Cray. But the list also included such well-known names as Century 21 Real Estate, Federal Express, and Pizza Inn. Not surprisingly, California led geographically with 21 of the 100 companies, followed by Texas (13), Minnesota (9), and New York (9).

In the past four years, 23 of the charter INC. 100 companies have grown too large to qualify (sales in the base year must be less than $25 million), 18 have fallen off the five-year pace (a sales increase of 500% or more), and 8 have watched their sales plateau. Sixteen others have been acquired by or merged with another company, and 4 companies have gone bankrupt.

Among the emerging giants, Federal Express is clearly the outstanding performer, with sales of $804 million in 1982 -- up from $17 million in 1974, the base year for the initial INC. 100.

Others out of range include Amdahl ($462 million) and Pizza Inn ($141 million). And what of #1 on the charter INC. 100, Sonic Industries? A drive-in-restaurant developer based in Oklahoma City, Sonic retrenched a bit last year. Still, the 1,000 stores in its system rang up $275 million in sales with net income of $580,000.

Class of 1980. Newcomers included Air Florida, Southwest Airlines, DPF (Interstate Bakeries), Computervision, and Chuck Barris Productions (producer of TV's "The Gong Show"). Among the 56 manufacturers in the group, 14 were in the computer field.

There were also 35 service companies and nine oil and gas producers. With 8 Massachusetts businesses on the list, the Northeast earned an extra nod in the geography department. However, California again led (18), followed by New York (12) and Texas (10).

Six companies on the list became takeover targets later, and 2 soon staggered into the bankruptcy courts. Of the remainder, 20 companies have grown too big to qualify, 15 have simply fallen behind the front-runners, and 11 are treading water.

Among those that quickly soared out of range are DPF ($668 million in '82), Computervision ($325 million), and Southwest Airlines ($300 million). Air Florida, however, is straining to maintain altitude above a sea of red ink, while Chuck Barris Productions' sales have nose-dived from $38.5 million in 1980 to $2.9 million in 1982.

Class of 1981. Led by a uranium company, the 1981 list boasted 26 computer and business equipment makers, 20 oil and gas producers, 10 manufacturers in the medical field, and two fast-food operations. It was a group that hit an INC. 100 high in total sales ($5 billion) and total work force (88,732 employees). It was also an acquisitive club, with 58 members having grown through outside takeovers.

Among the newcomers were NIKE, Nutri/System, KinderCare Learning Centers, and Minnetonka -- making it the year for running shoes, weight loss, child care, and liquid soap. Geographically, the pattern remained unaltered, with California anchored in first place (18 companies), and New York (12), Texas (9), and Colorado (9) holding their own.

Of those on the 1981 INC. 100 that failed to make the '83 roster, 3 have gone bankrupt, and 3 have been acquired. The rest have either grown too large (11), not as fast (22), or experienced setbacks in '82 sales (10). The company at the top of the list, Cobb Resources, would prove to be a flash in the pan. Hard hit by the deep slump in the uranium market, sales of the Albuquerque company crumbled from $11 million in 1980 to $1.7 million in '82. Among those that were disqualified because of their size are NIKE, Intermedics, Data Terminal Systems, Petro-Lewis, and Rolm.

Class of 1982. With a hard core of 50 companies from the previous year, the 1982 INC. 100 took on a strong new contingent from the computer industry. Featuring Apple Computer in the top slot, the newcomers included ASK Computer, Computer Associates International, and Compucorp. The latter, rebounding from bankruptcy proceedings five years earlier, came in 95th (advancing to 65th in 83).

While the industries were familiar, with little change from the previous year, the geography balanced slightly. New York and Texas, with 15 companies each, edged up on California (still first with 17). Minnesota was fourth with 7. Total sales hit $5 billion again, although growth for the majority was internal and the total number of employees dropped to 62,600 -- suggesting a leaner, more productive group of smaller growth companies.

Half of last year's class have continued their meteoric growth, with 51 graduating to the '83 list. However, two have been acquired (Cado and Taco Charley), and one, Flight Transportation, has been thrust into receivership and a string of court cases that charge top management with fraud and theft. Three soared beyond the size limits -- Commodore, Paradyne, and Petroleum Equipment Tools.

Of the others, 25 saw 1982 sales trail below 1981 levels, and 19 simply fell short of the 500% increase in sales chalked up by INC.'s 1983 crop of 100 fastest-growing smaller companies.