ROCKVILLE, Md.--(BUSINESS WIRE)--Argan, Inc. (NYSE: AGX) announced financial results for its first quarter ended April 30, 2016. Please read the Company’s Quarterly Report on Form 10-Q, which the Company expects to file tomorrow with the U.S. Securities and Exchange Commission (the “SEC”), which can be retrieved from the SEC's website at www.sec.gov or from the Company's website at www.arganinc.com.
Highlights for the Quarter:
- Revenues increased 12% to $130 million for the quarter ended April 30, 2016 as compared to $116 million in the prior quarter.
- Net income attributable to the stockholders of Argan increased 82% to $12.2 million, or $0.81 per diluted share, for the quarter ended April 30, 2016.
- Gemma Power Systems (“Gemma”), a wholly owned subsidiary of ours, received a full notice-to-proceed with EPC activities for a 785 MW dual-fuel combined cycle electric generating facility (“CPV Towantic”) to be located in Oxford, Connecticut. With the addition of CPV Towantic, our backlog increased 27% to $1.5 billion as of April 30, 2016.
- Gemma reached substantial completion on one large, gas-fired power plant during the quarter.
First Quarter Results:
Revenue increased 12% to $130 million over last quarter primarily due to Gemma ramping up work on five new projects and a full quarter of revenues from The Roberts Company (“Roberts”) which we acquired in December of last quarter, partially offset by a decrease in revenues from two existing Gemma projects. Our gross profit increased $4.8 million to $28.3 million compared to last quarter due to improved performance and reduced estimated costs to complete certain fixed price projects, particularly at Gemma and Roberts. Net income attributable to our stockholders for the first quarter increased 82% to $12.2 million, or $0.81 per diluted share, from $6.7 million, or $0.45 per diluted share, for the prior quarter. Likewise, EBITDA attributable to our stockholders for the first quarter increased 58% to $20.2 million, or $1.34 per diluted share, from $12.8 million, or $0.85 per diluted share, for the prior quarter. The increase in earnings is due primarily to the aforementioned $4.8 million increase in gross profit, a $2.0 million decrease in selling, general and administrative expenses due to year-end incentive compensation incurred in the prior quarter, and a $0.5 million reduction from the impact of noncontrolling interests.
Commenting on Argan’s first quarter results, Rainer Bosselmann, Chairman and Chief Executive Officer, stated, “We are pleased with the first quarter results and the continued growth we are experiencing. While we wrap up work at two major power plant projects, we are focusing on ramping up our five new projects. This activity along with the acquisitions of Roberts and Atlantic Projects Company has resulted in our revenue concentration being less than 18% in any one project for the quarter. With a backlog of $1.5 billion, we look forward to the continued ramp in our increasingly diversified revenues over the remainder of the year.”
About Argan, Inc.
Argan’s primary business is providing a full range of services to the power industry including the engineering, procurement and construction of gas-fired and biomass-fired power plants, 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 Southern Maryland Cable, which provides telecommunications infrastructure services, and The Roberts Company, which is a fully integrated fabrication, construction and plant services company.
