Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today
announced financial results for its first quarter ended April 30,
2021. 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,
2021
2020
Change
For the Quarter Ended:
Revenues
$
126,341
$
60,148
$
66,193
Gross profit
23,714
4,009
19,705
Gross margin %
18.8
%
6.7
%
12.1
%
Net income (loss) attributable to the
stockholders of the Company
$
10,766
$
(763)
$
11,529
Diluted per share
0.67
(0.05)
0.72
EBITDA attributable to the stockholders of
the Company
15,644
(4,055)
19,699
Diluted per share
0.98
(0.26)
1.24
Cash dividends per share
0.25
0.25
—
April 30,
January 31,
As of:
2021
2021
Change
Cash, cash equivalents and short-term
investments
$
466,750
$
456,726
$
10,024
Net liquidity (1)
275,966
270,133
5,833
RUPO (2)
478,743
552,531
(73,788
)
(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 are continuing the momentum from Fiscal 2021 into the first
quarter of Fiscal 2022 with our third consecutive quarter of
earnings per share equal to or in excess of $0.60,” Rainer
Bosselmann, Chairman and Chief Executive Officer of Argan, said.
“All of our business segments continue to rebound from the
beginning of the COVID-19 pandemic and produce increasing revenues
and profit quarter over quarter. In addition, we were pleased to
announce in May the award and start of an EPC services contract to
build one of the largest solar power plants in Pennsylvania, which
complements our core gas-fired power plant business, where we are
executing on the Guernsey Power Station, which is the largest
single-phase gas-fired power plant construction project in the
US.”
Consolidated revenues for the quarter ended April 30, 2021 were
$126.3 million, which represented an increase of $66.2 million, or
110.1%, from consolidated revenues of $60.1 million reported for
the three months ended April 30, 2020. The increase was primarily
due to increasing revenues at Gemma Power Systems (“GPS”)
associated with the construction of the Guernsey Power Station.
Additionally, the industrial services business segment reported
revenues of $26.7 million for the three months ended April 30,
2021, which represented an increase of $16.9 million, or 173.6%,
from revenues of $9.7 million reported for the three months ended
April 30, 2020.
Consolidated gross profit for the three-month period ended April
30, 2021 was $23.7 million, or 18.8% of the corresponding
consolidated revenues, which reflected primarily the favorable
impacts of the higher amount of consolidated revenues and positive
contributions from all three reportable business segments. For the
three-month period ended April 30, 2020, the consolidated gross
profit was $4.0 million, which represented approximately 6.7% of
the corresponding amount of consolidated revenues and reflected
$2.7 million of subcontract loss incurred by Atlantic Projects
Company (“APC”) related to the TeesREP project, for which APC has
recently completed activities.
Selling, general and administrative expenses for the three
months ended April 30, 2021 and 2020 were $9.9 million, or 7.8% of
corresponding consolidated revenues, and $10.3 million, or 17.2% of
corresponding consolidated revenues, respectively.
Due primarily to the consolidated pre-tax book income reported
for the three-month period ended April 30, 2021 in the amount of
$14.5 million, we reported income tax expense in the amount of $3.8
million for the period. For the three months ended April 30, 2020,
we recorded an income tax benefit of $4.5 million which amount
included primarily $4.2 million of carryback benefit related to the
net operating loss incurred by us for the year ended January 31,
2020.
For the three months ended April 30, 2021, our improved overall
operating performance resulted in net income attributable to our
stockholders in the amount of $10.8 million, or $0.67 per diluted
share. Last year, despite the favorable effect of the net operating
loss carryback benefit, we reported a net loss attributable to our
stockholders in the amount of $0.8 million, or $0.05 per dilutive
share.
As of April 30, 2021, cash, cash equivalents and short-term
investments totaled $467 million and net liquidity was $276
million; furthermore, the Company had no debt. The Company’s
consolidated amount of RUPO was approximately $0.5 billion as of
April 30, 2021.
In May 2021, we announced that GPS entered into an engineering,
procurement and construction services contract with an affiliate of
Competitive Power Ventures, Inc., to construct the 100 MW Maple
Hill Solar facility in Pennsylvania. GPS also received Notice to
Proceed with project activities immediately. The project will be
added to the Company’s RUPO in the second quarter and completion is
scheduled to occur during the second half of 2022.
About Argan, Inc.
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 and the Company’s ability to successfully complete the
projects that it obtains. 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,
2021
2020
REVENUES
$
126,341
$
60,148
Cost of revenues
102,627
56,139
GROSS PROFIT
23,714
4,009
Selling, general and administrative
expenses
9,892
10,344
INCOME (LOSS) FROM OPERATIONS
13,822
(6,335
)
Other income, net
712
1,088
INCOME (LOSS) BEFORE INCOME
TAXES
14,534
(5,247
)
Income tax (expense) benefit
(3,768
)
4,454
NET INCOME (LOSS)
10,766
(793
)
Net loss attributable to non-controlling
interests
—
(30
)
NET INCOME (LOSS) ATTRIBUTABLE TO THE
STOCKHOLDERS OF ARGAN, INC.
10,766
(763
)
Foreign currency translation
adjustments
(118
)
(246
)
COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
$
10,648
$
(1,009
)
NET INCOME (LOSS) PER SHARE
ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Basic
$
0.68
$
(0.05
)
Diluted
$
0.67
$
(0.05
)
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING
Basic
15,726
15,643
Diluted
15,961
15,643
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,
2021
2021
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
396,675
$
366,671
Short-term investments
70,075
90,055
Accounts receivable, net
32,379
28,713
Contract assets
26,158
26,635
Other current assets
33,744
34,146
TOTAL CURRENT ASSETS
559,031
546,220
Property, plant and equipment, net
19,944
20,361
Goodwill
27,943
27,943
Other purchased intangible assets, net
3,869
4,097
Deferred taxes
—
249
Right-of-use and other assets
7,185
3,760
TOTAL ASSETS
$
617,972
$
602,630
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
$
41,467
$
53,295
Accrued expenses
42,050
50,750
Contract liabilities
199,548
172,042
TOTAL CURRENT LIABILITIES
283,065
276,087
Deferred taxes
350
—
Other noncurrent liabilities
3,741
4,135
TOTAL LIABILITIES
287,156
280,222
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; 15,772,673 and 15,706,202 shares
issued at April 30, 2021 and January 31, 2021 respectively;
15,769,440 and 15,702,969 shares outstanding at April 30, 2021 and
January 31, 2021, respectively
2,366
2,356
Additional paid-in capital
154,974
153,282
Retained earnings
172,934
166,110
Accumulated other comprehensive loss
(1,199
)
(1,081
)
TOTAL STOCKHOLDERS’ EQUITY
329,075
320,667
Non-controlling interests
1,741
1,741
TOTAL EQUITY
330,816
322,408
TOTAL LIABILITIES AND EQUITY
$
617,972
$
602,630
ARGAN, INC. AND
SUBSIDIARIES
Reconciliations to
EBITDA
(In
thousands)(Unaudited)
Three Months Ended
April 30,
2021
2020
Net income (loss), as reported
$
10,766
$
(793
)
Income tax expense (benefit)
3,768
(4,454
)
Depreciation
882
937
Amortization of purchased intangible
assets
228
225
EBITDA
15,644
(4,085
)
EBITDA of non-controlling interests
—
(30
)
EBITDA attributable to the stockholders of
Argan, Inc.
$
15,644
$
(4,055
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210608006072/en/
Company: Rainer Bosselmann 301.315.0027
Investor Relations: David Watson 301.315.0027
Argan (NYSE:AGX)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
Argan (NYSE:AGX)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024