How the rankings were determined
The information in this special section is drawn from many sources. Data for the Houston Chronicle 100 chart and others based on financial results of publicly traded Houston-area companies were collected and analyzed by S&P Global Market Intelligence.
Kevin Kelly directed the research for S&P Global Market Intelligence. He can be reached at 303-721-4525 or kevin.kelly@ spglobal.com. Find more information at spcapitaliq.com.
The Chronicle developed the criteria for the rankings. Data used in charts and profiles primarily reflect performance as reported by public companies to the U.S. Securities and Exchange Commission.
The tables used numbers reported for calendar years 2014 and 2015, or as close as possible to the calendar year for companies with different fiscal years or reporting schedules. Data may reflect restatements for accounting changes, acquisitions or discontinued operations.
Other information was gathered by Chronicle researcher Katherine Feser, who surveyed companies to determine the area’s biggest employers, grocers, privately owned businesses, hospitals and law firms. Chronicle 100 scores
Companies based in the Houston area were ranked by a score based on four categories for 2015: total revenue, earnings-pershare growth, annual revenue growth and one-year total return to shareholders on a dividend-reinvested basis.
The companies were ranked in each of the criteria, with each category given equal weight. The best possible score in each category is 1. To calculate the overall score, the four ranks were added and then divided by 4. If there was a tie, the change in earnings per share was used to break it.
To qualify, a company must have reported a profit for 2015 based on diluted net income per share before extraordinary items.
The company’s stock price must have been above $1 per share as of March 31, 2016, and it must have been trading for all of 2015. Companies must have had total sales exceeding $5 million for 2015 and $2.5 million for 2014.
The Chronicle 100 was derived from a list of 81 companies that met the criteria. All of the other public companies charts are based on a set of 161 companies. General criteria
To qualify for charts based on financial performance of publicly held companies, a company must be traded on a major stock exchange — New York, Nasdaq or NYSE Amex — and have its headquarters in the Houston area. Some companies with dual headquarters, primary administrative offices or major operations in the area were considered.
Companies with overseas headquarters were included if their CEOs were based in the Houston area.
The following companies were excluded because their earnings had not been reported in time to be considered: Layne Christensen Co., Mitcham Industries and PrimeEnergy Corp.
Revenue was defined as net sales for 2015. In most cases, sales exclude excise taxes and other non-operating income.
For banks and savings and loans, revenue equals total current operating revenue and net pretax profit and loss on securities.
For insurance companies, revenue equals the sum of earned premiums and net investment income. It excludes equity in other investments and foreign currency adjustments.
Earnings-per-share growth was based on the percentage
change in the earnings per share before extraordinary items. EPS growth can include one-time gains or losses, such as profits on asset sales, as long as they are reported before taxes on income statements.
Where the earnings-per-share number in the previous year was negative, the percentage change was calculated using the absolute difference. Largest companies
This chart ranks companies by annual revenue. To be considered, companies had to be publicly traded on Dec. 31, 2014, and have met other criteria for Chronicle 100 chart consideration. IPOs
This chart shows companies tracked by S&P Global Market Intelligence that had an initial public offering of shares from January 2015 through May 24, 2016. The companies are ranked by the value of the offer amount. The current market capitalization may include additional shares issued in subsequent offerings and/or private placements. Spinoffs are also listed. Revenue growth
The revenue growth chart ranks companies by the annual percentage gain in revenue in 2015. See the chart at HoustonChronicle.com/chron100. Banks
SNL Financial, an offering of S&P Global Market Intelligence, ranked bank holding companies and commercial banks based on deposits in the Houston area as of June 30, 2015. Data are pro forma for acquisitions that had closed or been announced as of April 25, 2016. Communities and homebuilders
Sales figures for homebuilders and housing starts for the most active communities were provided by Metrostudy. Homebuilders were ranked by Houston-area sales that closed during 2015. The fastest-growing communities were ranked by housing starts in 2015. Employers
Companies were ranked by the number of fulland part-time workers they employ in Harris, Montgomery, Liberty, Chambers, Galveston, Brazoria, Fort Bend, Waller, Austin and San Jacinto counties.
The companies supplied the numbers, some of which are estimates, for a Chronicle survey.
Some of the companies hire contractors, who are not included in the total employee count.
Some major employers, notably Hewlett-Packard and Macy’s, are not on the list because they do not provide employment numbers by city. Government entities generally are not included. Some public health care institutions are part of the survey. Grocers
The list of grocers is based on a survey of stores. Some information was collected from company websites. Hospitals
Area hospitals provided information about their Houston operations. The Chronicle requested the latest information available. The Texas Department of State Health Services and company websites supplemented the survey. Private companies
Companies were ranked by revenue based on a Chronicle survey. In some instances, companies provided estimates. Auto dealers, banks and lawyers’ and doctors’ practices were not included. Retail construction
Wulfe & Co., a Houstonbased commercial real estate brokerage, development and property management firm, provided a list of the 10 largest retail additions that opened or are planned to open in 2016 in the Houston area.