How the rankings were determined
THE Houston Chronicle 100 rankings were based on the financial results of publicly traded Houston-area companies, which were collected and analyzed by S&P Global Market Intelligence. Other charts in this special section were based on information drawn from many sources. 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 www.spglobal.com/ market intelligence. The Chronicle developed the criteria for the rankings, which reflect performance as reported by public companies to the U.S. Securities and Exchange Commission. The tables used numbers reported for calendar years 2016 and 2017, 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 largest employers, grocers, privately owned businesses, and hospitals and law firms.
Chronicle 100 scores
Companies based in the Houston area were ranked by a score based on four categories for 2017: total revenue, earnings-per-share growth, annual and one-year revenue total growth return to shareholders on a dividend-reinvested basis. The companies were ranked in each of the criteria, with each category given best possible equal weight. score in The each category is 1. To calculate the overall score, the four rankings were added and then divided by 4. If there was a tie, the change in earnings per share was used to break it. must for To 2017 have qualify, based reported a on company diluted a profit net income per share before extraordinary items. The company’s stock price must have been above $1 per share as of March 31, 2018, and it must have been trading for all of 2017. Companies must have had total sales exceeding $5 million for 2017 and $2.5 million for 2016. The Chronicle 100 was derived companies from that a list met of the 91 criteria. All of the other public companies charts are based on a set of 152 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. Revenue was defined as net sales for 2017. 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, 2017, 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 2017 through May 14, 2018. 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 2017. See the chart at HoustonChronicle.com/chron100.
Communities and homebuilders
Sales figures for homebuilders and housing starts for the most were Metrostudy. provided active communities by Homebuilders were ranked by Houston-area sales that closed during 2017. The most active communities were ranked by housing starts in 2017.
Banks
Intelligence S&P Global ranked Market bank holding companies and commercial banks based on deposits in the Houston area as of June 30, 2017. Data are pro forma for acquisitions that had closed or been announced as of April 20, 2018.
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 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.
Hospitals
Area hospitals provided information about their Houston operations. The Chronicle requested the latest information available. The Texas Department of State Health Services 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.