Energy, plastics, multimedia technology and corrections define Oklahoma's top companies among the pink sheets — publicly traded but over the counter, not listed on a stock exchange.
Of the top six, two are energy companies, Reserve Petroleum Co. and Beard Co., both in Oklahoma City.
The plastics company is manufacturer-recycler Greystone Logistics in Tulsa.
The tech company is EnXnet Inc., also in Tulsa.
The corrections company is Avalon Correctional Services Inc., based in Oklahoma City.
Vaughan Foods Inc. in Moore, No. 6 on the Oklahoma Inc. list, sold to Reser's Fine Foods Inc. in Beaverton, Ore., and is no longer traded, so it's out.
As usual, the numbers weren't all that defined among the Bulletin Board stocks, with just about as many negatives as positives among the factors going into the Oklahoma Inc. rankings. Below are snapshots of the top five over-the-counter companies.
• No. 1, Reserve Petroleum Co., trading symbol RSRV.
The company, founded in 1931, is in oil and natural gas exploration and development and minerals management mainly in Oklahoma, Texas, Kansas and Arkansas. It owned nonproducing mineral interests in 260,470 gross acres; royalty interests in 23 gross wells; and held interests in about 660 producing properties as of March 31, according to Bloomberg BusinessWeek.
Cameron R. McLain has been CEO since 2009, president since 2008 and exploration manager since 1982. The company has eight employees and offices at 6801 Broadway Extension, Suite 300. Its website is www.reserve-petro.com.
As of June 30, Reserve Petroleum, which was No. 4 in the Oklahoma Inc. rankings last year, had a one-year return on stocks and dividends of 80.9 percent; a 4.1 percent increase in revenues; and increase in earnings per share of 36 percent. The company had a market capitalization of $58.765 million, revenues of $12.6 million and net income of $4.7 million.
• No. 2, Beard Co., trading symbol BRCO.
The company dates to a sole proprietorship started by founder Joseph G. Beard in 1921 when he drilled his first producing well in Stephens County. It has offices at 301 NW 63, Suite 400. Its website is www.beardco.com.
Beard, now led by Herb Mee Jr., president, continues with restructuring begun in late 2010. The company downsized, reducing expenses by about 35 percent; eliminated management perks; and adopted a deferred stock compensation plan for officers and directors to conserve cash.
The company said it struggled with operations in the Dilworth Field in northern Oklahoma, its primary asset, in the first four months of this year, but that new financing and infrastructure repair “for the first time, positioned us to aggressively reduce bottom-hole pressures, which should allow us to achieve our ultimate goal of matrix production.”
Beard, which was No. 4 in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 73.5 percent; a 220.1 percent increase in revenues; and increase in earnings per share of 52.6 percent. The company had a market capitalization of $8.428 million, revenues of $1.149 million and net loss of $1.977 million.
• No. 3, Avalon Correctional Services Inc., trading symbol CITY.
Donald E. Smith founded Avalon in 1985 as an alternative incarceration for drunken drivers. The company has expanded to 10 locations and 2,600 beds. The company operates facilities and manages programs in Oklahoma, Texas and Wyoming, with plans to expand into other states. Smith continues as chairman and chief executive officer.
The recession and declining state revenues caused Avalon to concentrate on “new opportunities in existing community corrections operations” and in states new to “the positive results of utilizing community corrections programs,” Smith said in a shareholder letter posted on the company website, www.avaloncorrections.
However, Smith said, “Our optimism about the company's future is greater today than when we started the company in 1985. Our mission continues to be offering cost effective alternatives with lower recidivism rates to the ever-increasing prison population. Virtually all states and governmental agencies have experienced tremendous increases in the cost of maintaining and operating their prison systems. Many states are evaluating their incarceration policies and considering the utilization of a greater number of community-based corrections beds and services to reduce costs and reduce the rate of recidivism while continuing to provide public safety. We believe we have an excellent opportunity to participate in this national movement to significantly increase the utilization of community based correctional services.”
Avalon, which was not in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 12.5 percent; a 12.1 percent increase in revenues; and loss in earnings per share of 10.7 percent. The company had a market capitalization of $11.9 million, revenues of $26.453 million and net income of $6.375 million.
• No. 4, Greystone Logistics, trading symbol GLGI.
The Tulsa company, founded in 1968 as a marine paint manufacturer, suffered significant losses before going dormant, then several years ago launched a high-risk, capital-intensive plan to become a leading manufacturer in the growing plastic pallet industry. Warren Kruger, who had placed a significant private investment, took over as CEO in 2003.
Greystone, with a manufacturing plant in Bettendorf, Iowa, designs, manufactures, sells and leases plastic pallets for the food and beverage, automotive, chemical, pharmaceutical and consumer product
“The technology in its injection molding equipment, proprietary blend of recycled petrochemical resins, and patented pallet designs allow production of high-quality pallets more quickly and at a lower cost than competitors. The recycled plastic for its pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resins,” the company says on its website, www.greystone
Greystone, which was not in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 36.4 percent; a 22.7 percent increase in revenues; and loss in earnings per share of 450 percent. The company had a market capitalization of $1.828 million, revenues of $19.313 million and net loss of $865,000.
• No. 5, EnXnet Inc., trading symbol, EXNT.
Tulsa-based EnXnet, formerly Southern Wireless, was founded in 1999 and develops, markets and licenses technologies, business strategies and practices for multimedia management products and services. Its products include DVDplus, a dual-sided hybrid optical disc with DVD on one side and CD on the other; Thin Disc, an optical disc with reduced thickness; Disc Security Tag, which provides unique item identification for customers and clients; and others.
The company, in partnership with BAHF LLC, develops Medical D-Tect-OR, a “retained foreign object detection system, which detects surgical instruments and surgical products, such as gauze, laparoscopy sponges, and operating room towels that are left in the body during a surgical procedure,” according to Yahoo! Finance. Ryan Corley, is chairman, CEO and president.
EnXnet “spent its early years finding and developing new technologies with great potential for making valuable impacts in the multimedia environment,” the company says on its website, www.enxnet.
EnXnet, No. 5 in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 58.3 percent; a 100 percent decrease in revenues; and increase in earnings per share of 110 percent. The company had a market capitalization of $2.152 million, no revenues and net loss of $220,000.