K&L Gates Revenue Up 9.3 Percent, RPL Down 5 Percent
Reed Smith has not yet reported its 2013 numbers.
K&L Gates broke down its net income figures based on total profits available to all equity partners and those available to fully participating equity partners. According to the firm, about 27.6 percent of its gross revenue in 2013 was profit available for all equity partners, a slight drop from 30.2 percent in 2012.
The firm said about 19 percent of its gross revenue in 2013 was profit available for fully participating equity partners, as compared to about 21.4 percent the previous year.
K&L Gates said the net income decline "was principally due to the decreased revenue experienced by the combined firm on a pro forma basis."
"The profit percentage continued to be influenced by the firm's commitment to meet market demand with large numbers of income partners, whose compensation is accounted for as expense," the firm added.
Young said it's difficult to do an apples-to-apples comparison between firms' financial data, even if those firms are of similar sizes.
"It varies so much with practice mix and geographic mix," Young said.
In general, according to Young, most firms are likely to have seen a modest revenue boost in 2013, in the range of 5 percent or less, along with slight profit increases.
But annual profit margins are often a wild card because so many factors, from the number of significant investments a firm makes in a given year to the firm's utilization rate, affect the bottom line, Young said.
The only accurate way to measure a firm's success is to examine whether it has grown over a period of years, according to Young.