Argan Inc. (AGX, Financial) filed Quarterly Report for the period ended 2012-04-30.
Argan Inc has a market cap of $197.5 million; its shares were traded at around $14.56 with a P/E ratio of 25.8 and P/S ratio of 1.4. Argan Inc had an annual average earning growth of 15.2% over the past 5 years.
Mostly due to construction activity on five energy plant projects, the net revenues of our power industry services segment for the three months ended April 30, 2012 increased to $57.7 million, which represented approximately 91% of our net revenues from continuing operations for the current quarter. For the comparable period last year, net revenues were $14.0 million. As a result, income before income taxes for this business increased to $7.2 million for the three months ended April 30, 2012 from a comparable amount of $2.1 million for the three months ended April 30, 2011. As of April 30, 2012, the value of our construction contract backlog was $358 million compared with a backlog value of $415 million as of January 31, 2012. Over 92% of our current backlog relates to two projects; the design and construction of an 800 megawatt gas-fired electricity peaking facility in Southern California and a 49.9 megawatt biomass-fired power plant located in east Texas. The rest of the backlog amount primarily relates to a pair of wind-farm projects and a solar-powered energy facility.
Due to the increase in the net revenues from continuing operations, gross profit increased to $10.1 million for the three months ended April 30, 2012 compared with a gross profit of $3.9 million reported for the three months ended April 30, 2011. However, our overall gross profit percentage of 15.9% for the three months ended April 30, 2012 compared unfavorably with the gross profit percentage of 24.4% reflected in the operating results for the three months ended April 30, 2011. Last years first quarter gross margin benefited from the recognition of final incentive fees earned related to a completed contract. Selling, general and administrative expenses increased by $269,000, or 9.7%, to $3,028,000 for the three months ended April 30, 2012 compared with $2,759,000 for the prior year due primarily to the current year consolidation of the costs associated with the variable interest entities. Income from continuing operations for the three months ended April 30, 2012 was $4,547,000 compared with income from continuing operations of $745,000 for last years first quarter.
The net revenues of the power industry services business increased by $43.7 million to $57.7 million for the three months ended April 30, 2012 compared with net revenues of $14.0 million for the first quarter last year. The net revenues of this business represented approximately 91% of consolidated net revenues from continuing operations for the three months ended April 30, 2012, and approximately 88% of consolidated net revenues from continuing operations for the three months ended April 30, 2011.
Net cash in the amount of $19.9 million was provided by the operating activities of continuing operations during the three months ended April 30, 2012. Income from continuing operations for the three months ended April 30, 2012 was $4.5 million. We also received payments on projects during the current quarter due to the achievement of billing milestones, which resulted in an $18.0 million temporary increase in the amount of billings in excess of costs and estimated earnings. Amortization of the amounts of construction costs prepaid by GPS and the utilization of prepaid income taxes contributed to an overall decline in the balance of prepaid expenses and other assets during the three months ended April 30, 2012, representing a source of cash in the amount of $2.4 million. The aggregate amount of non-cash adjustments to income from continuing operations represented a net source of cash of approximately $435,000 for the current quarter.
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Argan Inc has a market cap of $197.5 million; its shares were traded at around $14.56 with a P/E ratio of 25.8 and P/S ratio of 1.4. Argan Inc had an annual average earning growth of 15.2% over the past 5 years.
Highlight of Business Operations:
For the three months ended April 30, 2012 (the first quarter of our fiscal year 2013), consolidated net revenues from continuing operations were $63.7 million which represented an increase of $47.7 million from net revenues from continuing operations of $16.0 million for the first quarter of last year. Net income attributable to our stockholders for the three months ended April 30, 2012 was $4,438,000, or $0.32 per diluted share. We reported net income attributable to our stockholders of $606,000, or $0.04 per diluted share, for the three months ended April 30, 2011. The significant improvement in our operating results for the first quarter was due to increased business activity in both of our business segments.Mostly due to construction activity on five energy plant projects, the net revenues of our power industry services segment for the three months ended April 30, 2012 increased to $57.7 million, which represented approximately 91% of our net revenues from continuing operations for the current quarter. For the comparable period last year, net revenues were $14.0 million. As a result, income before income taxes for this business increased to $7.2 million for the three months ended April 30, 2012 from a comparable amount of $2.1 million for the three months ended April 30, 2011. As of April 30, 2012, the value of our construction contract backlog was $358 million compared with a backlog value of $415 million as of January 31, 2012. Over 92% of our current backlog relates to two projects; the design and construction of an 800 megawatt gas-fired electricity peaking facility in Southern California and a 49.9 megawatt biomass-fired power plant located in east Texas. The rest of the backlog amount primarily relates to a pair of wind-farm projects and a solar-powered energy facility.
Due to the increase in the net revenues from continuing operations, gross profit increased to $10.1 million for the three months ended April 30, 2012 compared with a gross profit of $3.9 million reported for the three months ended April 30, 2011. However, our overall gross profit percentage of 15.9% for the three months ended April 30, 2012 compared unfavorably with the gross profit percentage of 24.4% reflected in the operating results for the three months ended April 30, 2011. Last years first quarter gross margin benefited from the recognition of final incentive fees earned related to a completed contract. Selling, general and administrative expenses increased by $269,000, or 9.7%, to $3,028,000 for the three months ended April 30, 2012 compared with $2,759,000 for the prior year due primarily to the current year consolidation of the costs associated with the variable interest entities. Income from continuing operations for the three months ended April 30, 2012 was $4,547,000 compared with income from continuing operations of $745,000 for last years first quarter.
The net revenues of the power industry services business increased by $43.7 million to $57.7 million for the three months ended April 30, 2012 compared with net revenues of $14.0 million for the first quarter last year. The net revenues of this business represented approximately 91% of consolidated net revenues from continuing operations for the three months ended April 30, 2012, and approximately 88% of consolidated net revenues from continuing operations for the three months ended April 30, 2011.
Net cash in the amount of $19.9 million was provided by the operating activities of continuing operations during the three months ended April 30, 2012. Income from continuing operations for the three months ended April 30, 2012 was $4.5 million. We also received payments on projects during the current quarter due to the achievement of billing milestones, which resulted in an $18.0 million temporary increase in the amount of billings in excess of costs and estimated earnings. Amortization of the amounts of construction costs prepaid by GPS and the utilization of prepaid income taxes contributed to an overall decline in the balance of prepaid expenses and other assets during the three months ended April 30, 2012, representing a source of cash in the amount of $2.4 million. The aggregate amount of non-cash adjustments to income from continuing operations represented a net source of cash of approximately $435,000 for the current quarter.
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