How the rankings were determined
THE information in this 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 Capital IQ.
Kevin Kelly directed the research for S&P Capital IQ. He can be reached at 303-721-4525 or kevin.kelly@spcapitaliq.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 2013 and 2014, 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 in the section 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 2014: total revenue, earnings-per-share 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 2014 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, 2015, and it must have been trading for all of 2014. Companies must have had total sales exceeding $5 million for 2014 and $2.5 million for 2013.
The Chronicle 100 was derived from a list of 132 companies that met the criteria. All of the other public companies charts are based on a set of 168
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 Houston.
The following companies were excluded because their earnings had not been reported in time to be considered: Layne Christensen Co., Mitcham Industries and Saratoga Resources.
Revenue was defined as net sales for 2014. 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-pershare 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, 2013, and have met other criteria
for Chronicle 100 chart consideration.
Market value
The market value chart ranks companies by the value of their stock as of March 31, 2015. Market value is the company’s stock price multiplied by the number of outstanding shares. The number of shares is based on the most recently available information.
To be considered, companies had to be publicly traded on Dec. 31, 2013, and have met other criteria for Chronicle 100 chart consideration. The market value chart is an online only feature at HoustonChronicle.com/ chron100.
IPOs
This chart shows companies tracked by S&P Capital IQ that had an initial public offering of shares from January 2014 through May 13, 2015. 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 2014. See the chart at HoustonChronicle.com/ chron100.
Auto dealers
Car sales data were provided by InfoNation, which publishes market information about area car dealers in its TexAuto Facts Report. The report is compiled from vehicle title records maintained by the Texas Department of Motor Vehicles. Reports include new-vehicle sales from title records processed in the 10-county Houston region and all sales by dealers in the region if titled in Texas. Sales of cars titled in other states are not included.
Retail sales exclude fleet sales, defined as rental cars, dealer-owned loaner cars and vehicles purchased for lease by third parties.
Vehicles purchased by other commercial buyers (such as companies) are included in retail sales. Vehicles leased directly by dealers to retail customers are included in retail sales.
Banks
SNL Financial ranked bank holding companies and commercial banks based on deposits in the Houston area as of June 30, 2014. Data is pro forma for acquisitions that had closed or been announced as of April 20, 2015.
Employers
Companies were ranked by the number of full- and 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, Hewlett-Packard and Macy’s, are not on the list because they do not provide employment numbers by city. Government entities are generally 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.
Homebuilders and communities
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 2014. The fastest-growing communities were ranked by housing starts in 2014.
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.
Law firms
The chart of biggest law firms is based on a Chronicle survey of the firms’ operations.
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 lanned to open in 2015 in the Houston area.