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     101  0 Kommentare Argan, Inc. Reports First Quarter Results

    Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its first quarter ended April 30, 2022. For additional information, please read the Company’s Quarterly Report on Form 10-Q, which the Company intends to file today with the U.S. Securities and Exchange Commission (the “SEC”). The Quarterly Report can be retrieved from the SEC’s website at www.sec.gov or from the Company’s website at www.arganinc.com.

    Summary Information (dollars in thousands, except per share data)

     

     

    April 30,

     

     

     

     

     

     

    2022

     

    2021

     

    Change

    For the Quarter Ended:

     

     

     

     

     

     

     

     

     

     

    Revenues

     

    $

    100,277

     

    $

    126,341

     

     $

    (26,064)

     

    Gross profit

     

     

    19,738

     

     

    23,714

     

     

    (3,976)

     

    Gross margin %

     

     

    19.7

    %

     

    18.8

    %

     

    0.9

    %

    Net income

     

    $

    7,485

     

    $

    10,766

     

     $

    (3,281)

     

    Diluted per share

     

     

    0.50

     

     

    0.67

     

     

    (0.17)

     

    EBITDA

     

     

    10,733

     

     

    15,644

     

     

    (4,911)

     

    Cash dividends per share

     

     

    0.25

     

     

    0.25

     

     

     

     

     

    April 30,

     

    January 31,

     

     

     

     

    As of:

     

    2022

     

    2022

     

    Change

     

    Cash, cash equivalents and short-term investments

     

    $

    367,484

     

    $

    440,498

     

    $

    (73,014)

     

    Net liquidity (1)

     

     

    261,317

     

     

    284,257

     

     

    (22,940)

     

    RUPO (2)

     

     

    339,162

     

     

    397,023

     

     

    (57,861)

     

    (1)

     

    Net liquidity, or working capital, is defined as total current assets less total current liabilities.

    (2)

     

    The amount of remaining unsatisfied performance obligations (“RUPO”) represents the project backlog related to active contracts with customers, as determined under revenue recognition rules.

    “We continue to be pleased with the current execution on all of our major projects despite the well-publicized global supply chain disruptions, current inflationary challenges and continued COVID-19 pandemic impacts. These successes for all of our stakeholders reflect the talent and adaptability of our employees,” Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, said. “Earlier today, our international efforts continued to expand, as we announced entering into three new engineering and construction contracts for 195 MW power projects in Ireland. Our sales efforts continue to be a major priority, and we believe there are a number of meaningful projects that will start this year for each of our subsidiaries. Our earnings per share of $0.50 for the first quarter is a reasonable start to the year and we look forward to building on it throughout Fiscal 2023.”

    Consolidated revenues for the quarter ended April 30, 2022 were $100.3 million. The primary revenue drivers were the post peak construction activities associated with the Guernsey Power Station project in Ohio, early construction activities on the Kilroot power project in Northern Ireland and an overall sustained level of activity at each business segment. Additionally, during the quarter, the Maple Hill solar energy project revenues were adversely affected by the market disruption in the supply of photovoltaic panels. Consolidated revenues for the quarter ended April 30, 2021 reflected primarily the peak construction activities associated with the Guernsey Power Station project.

    For the three-month period ended April 30, 2022, we reported a consolidated gross profit of approximately $19.7 million which represented a gross profit percentage of approximately 19.7% of corresponding consolidated revenues. The gross profit percentages of corresponding revenues for the power industry services, industrial services and the telecommunications infrastructure segments were 20.2%, 17.0% and 26.2%, respectively, for the quarter ended April 30, 2022.

    Selling, general and administrative expenses for the three months ended April 30, 2022 and 2021, were $10.6 million and $9.9 million, respectively. For three months ended April 30, 2022, net income attributable to our stockholders was $7.5 million, or $0.50 per diluted share. For the three months ended April 30, 2021, we reported net income attributable to our stockholders in the amount of $10.8 million, or $0.67 per diluted share.

    As of April 30, 2022, cash, cash equivalents and short-term investments totaled $367 million and net liquidity was $261 million; furthermore, the Company had no debt. The $73 million reduction in cash, cash equivalents and short-term investments from January 31, 2022 reflected the expected cash flow cycle of two significant projects, the payment of dividends and the repurchase of shares. During the three months ended April 30, 2022, the Company repurchased 710,879 shares of common stock at a cost of $27 million. To date, the Company has repurchased 1,621,808 shares of common stock, or approximately 10% of its outstanding shares, at a cost of approximately $61.7 million under the $75 million share repurchase program authorization. The Company’s consolidated amount of RUPO was approximately $339 million as of April 30, 2022.

    About Argan

    Argan’s primary business is providing a full range of services to the power industry, including the renewable energy sector. Argan’s service offerings focus on the engineering, procurement and construction of natural gas-fired power plants and renewable energy facilities, along with related commissioning, operations management, maintenance, project development and consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns The Roberts Company, which is a fully integrated fabrication, construction and industrial plant services company, and SMC Infrastructure Solutions, which provides telecommunications infrastructure services.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Reference is hereby made to the cautionary statements made by the Company with respect to risk factors set forth in its most recent reports on Form 10-K, Forms 10-Q and other SEC filings. The Company’s future financial performance is subject to risks and uncertainties including, but not limited to, the successful addition of new contracts to project backlog, the receipt of corresponding notices to proceed with contract activities, the Company’s ability to successfully complete the projects that it obtains and the resurgence of the COVID-19 pandemic due to the spread of various variants. The Company has several signed EPC contracts that have not started and may not start as forecasted due to market and other circumstances beyond its control. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to the risk factors highlighted above and described regularly in the Company’s SEC filings.

     

    ARGAN, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

    (In thousands, except per share data)

    (Unaudited)

     

     

     

    Three Months Ended

     

     

    April 30,

     

     

    2022

     

    2021

    REVENUES

     

    $

    100,277

     

     

    $

    126,341

     

    Cost of revenues

     

     

    80,539

     

     

     

    102,627

     

    GROSS PROFIT

     

     

    19,738

     

     

     

    23,714

     

    Selling, general and administrative expenses

     

     

    10,575

     

     

     

    9,892

     

    INCOME FROM OPERATIONS

     

     

    9,163

     

     

     

    13,822

     

    Other income, net

     

     

    595

     

     

     

    712

     

    INCOME BEFORE INCOME TAXES

     

     

    9,758

     

     

     

    14,534

     

    Income tax expense

     

     

    (2,273

    )

     

     

    (3,768

    )

    NET INCOME

     

     

    7,485

     

     

     

    10,766

     

    Net income attributable to the non-controlling interest

     

     

     

     

     

     

    NET INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.

     

     

    7,485

     

     

     

    10,766

     

    Foreign currency translation adjustments

     

     

    (1,264

    )

     

     

    (118

    )

    COMPREHENSIVE INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.

     

    $

    6,221

     

     

    $

    10,648

     

     

     

     

     

     

     

     

    NET INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.

     

     

     

     

     

     

    Basic

     

    $

    0.50

     

     

    $

    0.68

     

    Diluted

     

    $

    0.50

     

     

    $

    0.67

     

     

     

     

     

     

     

     

    WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

     

     

     

     

     

     

    Basic

     

     

    14,910

     

     

     

    15,726

     

    Diluted

     

     

    14,992

     

     

     

    15,961

     

     

     

     

     

     

     

     

    CASH DIVIDENDS PER SHARE

     

    $

    0.25

     

     

    $

    0.25

     

     

     ARGAN, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (In thousands, except share and per share data)

     

     

     

     

     

     

     

     

     

    April 30,

     

    January 31,

     

     

    2022

     

    2022

     

     

    (Unaudited)

     

     

     

    ASSETS

     

     

     

     

     

     

    CURRENT ASSETS

     

     

     

     

     

     

    Cash and cash equivalents

     

    $

    192,255

     

     

    $

    350,472

     

    Short-term investments

     

     

    175,229

     

     

     

    90,026

     

    Accounts receivable, net

     

     

    36,047

     

     

     

    26,978

     

    Contract assets

     

     

    6,880

     

     

     

    4,904

     

    Other current assets

     

     

    37,180

     

     

     

    34,904

     

    TOTAL CURRENT ASSETS

     

     

    447,591

     

     

     

    507,284

     

    Property, plant and equipment, net

     

     

    9,936

     

     

     

    10,460

     

    Goodwill

     

     

    28,033

     

     

     

    28,033

     

    Other purchased intangible assets, net

     

     

    3,175

     

     

     

    3,322

     

    Right-of-use, deferred tax and other assets

     

     

    4,075

     

     

     

    4,486

     

    TOTAL ASSETS

     

    $

    492,810

     

     

    $

    553,585

     

     

     

     

     

     

     

     

    LIABILITIES AND EQUITY

     

     

     

     

     

     

    CURRENT LIABILITIES

     

     

     

     

     

     

    Accounts payable

     

    $

    39,942

     

     

    $

    41,822

     

    Accrued expenses

     

     

    39,365

     

     

     

    53,315

     

    Contract liabilities

     

     

    106,967

     

     

     

    127,890

     

    TOTAL CURRENT LIABILITIES

     

     

    186,274

     

     

     

    223,027

     

    Noncurrent liabilities

     

     

    4,523

     

     

     

    4,963

     

    TOTAL LIABILITIES

     

     

    190,797

     

     

     

    227,990

     

     

     

     

     

     

     

     

    COMMITMENTS AND CONTINGENCIES

     

     

     

     

     

     

     

     

     

     

     

     

     

    STOCKHOLDERS’ EQUITY

     

     

     

     

     

     

    Preferred stock, par value $0.10 per share – 500,000 shares authorized; no shares issued and outstanding

     

     

     

     

     

     

    Common stock, par value $0.15 per share – 30,000,000 shares authorized; 15,827,772 and 15,788,673 shares issued at April 30, 2022 and January 31, 2022, respectively; 14,585,908 and 15,257,688 shares outstanding at April 30, 2022 and January 31, 2022, respectively

     

     

    2,374

     

     

     

    2,368

     

    Additional paid-in capital

     

     

    159,170

     

     

     

    158,190

     

    Retained earnings

     

     

    192,463

     

     

     

    188,690

     

    Less treasury stock, at cost – 1,241,864 and 530,985 shares at April 30, 2022 and January 31, 2022, respectively

     

     

    (47,482

    )

     

     

    (20,405

    )

    Accumulated other comprehensive loss

     

     

    (3,715

    )

     

     

    (2,451

    )

    TOTAL STOCKHOLDERS’ EQUITY

     

     

    302,810

     

     

     

    326,392

     

    Non-controlling interest

     

     

    (797

    )

     

     

    (797

    )

    TOTAL EQUITY

     

     

    302,013

     

     

     

    325,595

     

    TOTAL LIABILITIES AND EQUITY

     

    $

    492,810

     

     

    $

    553,585

     

     

    ARGAN, INC. AND SUBSIDIARIES

    Reconciliation to EBITDA

    (In thousands)(Unaudited)

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

     

    April 30,

     

     

    2022

     

    2021

    Net income, as reported

     

    $

    7,485

     

    $

    10,766

    Income tax expense

     

     

    2,273

     

     

    3,768

    Depreciation

     

     

    809

     

     

    882

    Amortization of purchased intangible assets

     

     

    166

     

     

    228

    EBITDA

     

     

    10,733

     

     

    15,644

    EBITDA of the non-controlling interest

     

     

     

     

    EBITDA attributable to the stockholders of Argan, Inc.

     

    $

    10,733

     

    $

    15,644

     



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    Argan, Inc. Reports First Quarter Results Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its first quarter ended April 30, 2022. For additional information, please read the Company’s Quarterly Report on Form 10-Q, which the Company intends to file …