Argan, Inc. (NYSE: AGX) today announced financial results
for the three months and fiscal year ended January 31, 2014.
For the year ended January 31, 2014, revenues were $227.5
million compared to $278.6 million for the year ended January 31,
2013. Gemma Power Systems LLC and affiliates (Gemma) contributed
$218.6 million, or 96% of revenues in fiscal 2014, compared to
$261.3 million, or 94% of revenues in fiscal 2013.
Argan reported consolidated EBITDA (Earnings before interest,
taxes, depreciation and amortization) attributable to the
stockholders of Argan, Inc. of $66.3 million for the year ended
January 31, 2014 compared to $37.7 million for the prior fiscal
year. Gemma recorded $69.5 million in EBITDA attributable to the
stockholders of Argan, Inc. for fiscal 2014 compared to $40.2
million for fiscal 2013.
Income from continuing operations for fiscal 2014 was $43.3
million, compared to income from continuing operations for fiscal
2013 of $22.1 million.
Net income attributable to shareholders of Argan, Inc. for
fiscal 2014 was $40.1 million, or $2.78 per diluted share based on
14,427,000 diluted shares outstanding, compared to $23.3 million,
or $1.65 per diluted share based on 14,116,000 diluted shares
outstanding for fiscal 2013.
For the three months ended January 31, 2014 consolidated
revenues were $59.5 million compared to $57.8 million for the three
months ended January 31, 2013. Gemma contributed $58.3 million or
98% of consolidated revenues for the fourth quarter of fiscal 2014,
compared to $55.0 million, or 95% of consolidated revenues for the
fourth quarter of fiscal 2013.
Argan reported consolidated EBITDA (Earnings before interest,
taxes, depreciation and amortization) attributable to the
stockholders of Argan, Inc. of $15.8 million for the three months
ended January 31, 2014 compared to $10.4 million in the fourth
quarter of last fiscal year. Gemma recorded $17.6 million in EBITDA
attributable to the stockholders of Argan, Inc. for the three
months ended January 31, 2014 compared to $11.6 million for the
three months ended January 31, 2013.
Income from continuing operations for the three months ended
January 31, 2014 was $10 million, compared to income from
continuing operations of $5.9 million, for the fourth quarter of
fiscal 2013.
For the three months ended January 31, 2014, Argan reported net
income attributable to Argan, Inc. stockholders of $9.2 million, or
$0.63 per diluted share based on 14,581,000 diluted shares
outstanding, compared to net income of $6.6 million or $0.46 per
diluted share based on 14,186,000 diluted shares outstanding for
the fourth quarter of fiscal 2013.
Argan had consolidated cash of $272 million as of January 31,
2014. During the current fiscal year, Argan used cash of $10.6
million to pay for a $0.75 dividend per share of common stock.
Consolidated working capital increased during the current fiscal
year to approximately $133.3 million as of January 31, 2014 from
approximately $88.6 million as of January 31, 2013. Consolidated
tangible net worth increased to $135.7 million at January 31, 2014
from $100.1 million at January 31, 2013.
Gemma’s backlog as of January 31, 2014 was $790 million compared
to $180 million as of January 31, 2013. The substantial increase in
backlog is the result of Gemma entering into EPC agreements with
affiliates of Panda Power Funds to design and to build two gas
fired power plants.
Commenting on Argan’s financial results, Rainer Bosselmann,
Chairman and Chief Executive Officer stated, “Gemma’s execution on
projects in fiscal 2014 coupled with success fees earned for the
development efforts of the Panda Liberty and Panda Patriot projects
contributed to record earnings during fiscal 2014. We appreciate
the dedicated efforts of our Gemma associates.”
About Argan, Inc.
Argan’s primary business is designing and building energy plants
through its Gemma Power Systems subsidiary. These energy plants
include traditional gas as well as alternative energy including
biodiesel, ethanol, and renewable energy sources such as wind and
solar power. Argan also owns Southern Maryland Cable, Inc.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal
securities laws and are subject to risks and uncertainties
including, but not limited to: (1) the Company’s ability to achieve
its business strategy while effectively managing costs and
expenses; (2) the Company’s ability to successfully and profitably
integrate acquisitions; and (3) the continued strong performance of
the energy sector. Actual results and the timing of certain events
could differ materially from those projected in or contemplated by
the forward-looking statements due to a number of factors detailed
from time to time in Argan’s filings with the Securities and
Exchange Commission. In addition, reference is hereby made to
cautionary statements with respect to risk factors set forth in the
Company’s most recent reports on Form 10-K and 10-Q, and other SEC
filings.
ARGAN, INC. AND SUBSIDIARIES
Consolidated Statements of
Operations
Three Months Ended January 31, Years Ended January
31, 2014 2013 2014
2013 (Unaudited) Revenues Power industry
services $ 58,257,000 $ 54,963,000 $ 218,649,000 $ 261,327,000
Telecommunications infrastructure services 1,234,000
2,877,000 8,806,000 17,308,000 Revenues
59,491,000 57,840,000 227,455,000
278,635,000 Cost of revenues Power industry services
37,745,000 41,478,000 141,807,000 214,817,000 Telecommunications
infrastructure services 1,059,000 2,343,000
6,800,000 13,683,000 Cost of revenues
38,804,000 43,821,000 148,607,000
228,500,000
Gross profit 20,687,000 14,019,000
78,848,000 50,135,000 Selling, general and administrative expenses
4,329,000 4,245,000 12,918,000
14,350,000
Income from operations 16,358,000
9,774,000 65,930,000 35,785,000 Gains on the deconsolidation of
VIEs -- -- 2,444,000 -- Other income (expense), net 134,000
(14,000 ) 961,000 (43,000 )
Income from
continuing operations before income taxes 16,492,000 9,760,000
69,335,000 35,742,000 Income tax expense 6,460,000
3,899,000 25,991,000 13,640,000
Income from continuing operations 10,032,000
5,861,000 43,344,000 22,102,000
Discontinued operations
Loss on discontinued operations before
income taxes
-- -- -- (405,000 ) Income tax benefit -- --
-- 120,000
Loss on discontinued
operations -- -- -- (285,000
)
Net income 10,032,000 5,861,000 43,344,000 21,817,000
Income (loss) attributable to
noncontrolling interests
868,000 (700,000 ) 3,219,000 (1,448,000
)
Net income attributable to the
stockholders of Argan, Inc.
$ 9,164,000 $ 6,561,000 $ 40,125,000 $ 23,265,000
Earnings (loss) per share attributable
to the stockholders of Argan, Inc.
Continuing operations Basic $ 0.64 $ 0.47 $ 2.85 $
1.71 Diluted $ 0.63 $ 0.46 $ 2.78 $ 1.67
Discontinued operations Basic $ -- $ -- $ -- $
(0.02 ) Diluted $ -- $ -- $ -- $ (0.02 )
Net
income Basic $ 0.64 $ 0.47 $ 2.85 $ 1.69 Diluted
$ 0.63 $ 0.46 $ 2.78 $ 1.65
Weighted
average number of shares outstanding Basic 14,219,000
13,951,000 14,072,000 13,784,000
Diluted 14,581,000 14,186,000
14,427,000 14,116,000
Cash dividends
declared per common share $ -- $ -- $ 0.75 $ 0.60
ARGAN, INC. AND SUBSIDIARIES
RECONCILIATIONS TO EBITDA
(Unaudited)
Continuing Operations
Three Months Ended January 31, 2014
2013 Income from continuing operations $ 10,032,000 $
5,861,000 (Income) loss - noncontrolling interests (868,000 )
700,000 Interest expense -- (266,000 ) Income tax expense 6,460,000
3,874,000 Depreciation 141,000 136,000 Amortization of purchased
intangible assets 61,000 61,000
EBITDA attributable to the stockholders of
Argan, Inc.
$ 15,826,000 $ 10,366,000
Power Industry Services
Three Months Ended January 31, 2014
2013 Income from continuing operations before income taxes $
18,324,000 $ 11,052,000 (Income) loss before income taxes -
noncontrolling interests (868,000 ) 675,000 Interest expense --
(266,000 ) Depreciation 97,000 85,000 Amortization of purchased
intangible assets 61,000 61,000
EBITDA attributable to the stockholders of
Argan, Inc.
$ 17,614,000 $ 11,607,000
Continuing Operations
Years Ended January 31,
2014
2013 Income from continuing operations $ 43,344,000 $
22,102,000 (Income) loss - noncontrolling interests (3,219,000 )
1,448,000 Interest expense (161,000 ) (688,000 ) Income tax expense
25,559,000 14,072,000 Depreciation 549,000 522,000 Amortization of
purchased intangible assets 243,000 243,000
EBITDA attributable to the stockholders of
Argan, Inc.
$ 66,315,000 $ 37,699,000
Power Industry Services
Years Ended January 31, 2014
2013 Income
from continuing operations before income taxes $ 72,669,000 $
38,515,000 (Income) loss before income taxes – noncontrolling
interests (3,651,000 ) 1,880,000 Interest expense (161,000 )
(688,000 ) Depreciation 366,000 290,000 Amortization of purchased
intangible assets 243,000 243,000
EBITDA attributable to the stockholders of
Argan, Inc.
$ 69,466,000 $ 40,240,000 Management uses
EBITDA, a non-GAAP financial measure, for planning purposes,
including the preparation of operating budgets and to determine
appropriate levels of operating and capital investments. Management
believes that EBITDA provides additional insight for analysts and
investors in evaluating the Company's financial and operational
performance and in assisting investors in comparing the Company's
financial performance to those of other companies in the Company's
industry. However, EBITDA is not intended to be an alternative to
financial measures prepared in accordance with GAAP and should not
be considered in isolation from our GAAP results of operations.
Pursuant to the requirements of SEC Regulation G, a reconciliation
between the Company's GAAP and non-GAAP financial results is
provided above and investors are advised to carefully review and
consider this information as well as the GAAP financial results
that are presented in the Company's SEC filings.
ARGAN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 31, 2014 January 31, 2013
ASSETS CURRENT ASSETS: Cash and cash
equivalents $ 272,209,000 $ 175,142,000 Accounts receivable, net of
allowance for doubtful accounts 23,687,000 24,879,000 Costs and
estimated earnings in excess of billings 527,000 1,178,000 Deferred
income tax assets 178,000 1,303,000 Prepaid expenses and other
current assets 1,958,000 1,606,000
TOTAL CURRENT ASSETS 298,559,000 204,108,000
Property, plant and equipment, net
($5,309,000 related to variable interest entities as of January 31,
2013)
4,183,000 9,468,000 Goodwill 18,476,000 18,476,000 Intangible
assets, net of accumulated amortization 2,088,000 2,331,000
Deferred income tax and other assets --
341,000
TOTAL ASSETS $ 323,306,000 $
234,724,000
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable $ 22,589,000 $ 32,699,000 Accrued expenses
7,911,000 9,488,000 Billings in excess of costs and estimated
earnings 134,736,000 73,359,000
TOTAL CURRENT LIABILITIES 165,236,000 115,546,000 Deferred
tax and other liabilities 293,000 10,000
TOTAL LIABILITIES 165,529,000
115,556,000
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; 14,289,134 and 13,977,560 shares
issued at January 31, 2014 and 2013, respectively; 14,285,901 and
13,974,327 shares outstanding at January 31, 2014 and 2013,
respectively
2,143,000
2,096,000
Additional paid-in capital 100,863,000 95,004,000 Retained earnings
53,335,000 23,850,000 Treasury stock, at cost – 3,233 shares at
January 31, 2014 and 2013 (33,000 ) (33,000 )
TOTAL STOCKHOLDERS’ EQUITY 156,308,000 120,917,000
Noncontrolling interests 1,469,000 (1,749,000
)
TOTAL EQUITY 157,777,000 119,168,000
TOTAL LIABILITIES AND EQUITY $ 323,306,000 $
234,724,000
Argan, Inc.Company Contact:Rainer Bosselmann,
301-315-0027orInvestor Relations Contact:Arthur Trudel,
301-315-9467
Argan (NYSE:AGX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Argan (NYSE:AGX)
Historical Stock Chart
From Sep 2023 to Sep 2024