Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Apr. 07, 2017 | Jul. 31, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | ARGAN INC | ||
Entity Central Index Key | 100,591 | ||
Trading Symbol | AGX | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 15,465,719 | ||
Entity Public Float | $ 513,266,000 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
REVENUES | |||
Revenues | $ 675,047 | $ 413,275 | $ 383,110 |
COST OF REVENUES | |||
Cost of revenues | 528,336 | 313,810 | 299,507 |
GROSS PROFIT | 146,711 | 99,465 | 83,603 |
Selling, general and administrative expenses | 32,478 | 25,060 | 19,470 |
Impairment loss | 1,979 | ||
INCOME FROM OPERATIONS | 112,254 | 74,405 | 64,133 |
Other income, net | 2,278 | 1,101 | 234 |
INCOME BEFORE INCOME TAXES | 114,532 | 75,506 | 64,367 |
Income tax expense | 37,106 | 25,302 | 20,912 |
NET INCOME | 77,426 | 50,204 | 43,455 |
Net income attributable to noncontrolling interests | 7,098 | 13,859 | 13,010 |
NET INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | 70,328 | 36,345 | 30,445 |
OTHER COMPREHENSIVE LOSS | |||
Foreign currency translation adjustments, net of tax | (197) | (565) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | $ 70,131 | $ 35,780 | $ 30,445 |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |||
Basic (in Dollars per share) | $ 4.67 | $ 2.46 | $ 2.11 |
Diluted (in Dollars per share) | $ 4.50 | $ 2.42 | $ 2.05 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||
Basic (in shares) | 15,066 | 14,757 | 14,433 |
Diluted (in shares) | 15,625 | 15,024 | 14,823 |
CASH DIVIDENDS PER COMMON SHARE (Note 16) | $ 1 | $ 0.70 | $ 0.70 |
Power industry services | |||
REVENUES | |||
Revenues | $ 586,628 | $ 387,636 | $ 376,676 |
COST OF REVENUES | |||
Cost of revenues | 452,599 | 290,823 | 294,643 |
GROSS PROFIT | 134,029 | 96,813 | 82,033 |
Selling, general and administrative expenses | 17,588 | 15,303 | 11,930 |
Impairment loss | 1,979 | ||
INCOME FROM OPERATIONS | 114,462 | 81,510 | 70,103 |
Other income, net | 2,145 | 827 | 231 |
INCOME BEFORE INCOME TAXES | 116,607 | 82,337 | 70,334 |
Industrial fabrication and field services | |||
REVENUES | |||
Revenues | 78,994 | 15,260 | |
COST OF REVENUES | |||
Cost of revenues | 68,354 | 15,527 | |
GROSS PROFIT | 10,640 | (267) | |
Selling, general and administrative expenses | 6,264 | 1,151 | |
INCOME FROM OPERATIONS | 4,376 | (1,418) | |
INCOME BEFORE INCOME TAXES | 4,376 | (1,418) | |
Telecommunications infrastructure services | |||
REVENUES | |||
Revenues | 9,425 | 10,379 | 6,434 |
COST OF REVENUES | |||
Cost of revenues | 7,383 | 7,460 | 4,864 |
GROSS PROFIT | 2,042 | 2,919 | 1,570 |
Selling, general and administrative expenses | 1,430 | 1,323 | 1,299 |
INCOME FROM OPERATIONS | 612 | 1,596 | 271 |
INCOME BEFORE INCOME TAXES | $ 612 | $ 1,596 | $ 271 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 167,198 | $ 160,909 |
Short-term investments | 355,796 | 114,098 |
Accounts receivable, net | 54,836 | 64,185 |
Costs and estimated earnings in excess of billings | 3,192 | 4,078 |
Prepaid expenses and other current assets | 6,927 | 7,342 |
TOTAL CURRENT ASSETS | 587,949 | 350,612 |
Property, plant and equipment, net | 13,112 | 12,308 |
Goodwill | 34,913 | 37,405 |
Intangible assets, net | 8,181 | 9,344 |
Other assets | 92 | 122 |
TOTAL ASSETS | 644,247 | 409,791 |
CURRENT LIABILITIES | ||
Accounts payable | 101,944 | 46,395 |
Accrued expenses | 39,539 | 35,454 |
Billings in excess of costs and estimated earnings | 209,241 | 105,863 |
TOTAL CURRENT LIABILITIES | 350,724 | 187,712 |
Deferred income taxes | 954 | 224 |
TOTAL LIABILITIES | 351,678 | 187,936 |
COMMITMENTS AND CONTINGENCIES (Note 11 and 12) | ||
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; 15,461,452 and 14,839,702 shares issued at January 31, 2017 and 2016, respectively; 15,458,219 and 14,836,469 shares outstanding at January 31,2017 and 2016, respectively | 2,319 | 2,226 |
Additional paid-in capital | 135,426 | 117,274 |
Retained earnings | 154,649 | 99,581 |
Accumulated other comprehensive loss | (762) | (565) |
TOTAL STOCKHOLDERS' EQUITY | 291,632 | 218,516 |
Noncontrolling interests (Note 4) | 937 | 3,339 |
TOTAL EQUITY | 292,569 | 221,855 |
TOTAL LIABILITIES AND EQUITY | $ 644,247 | $ 409,791 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2017 | Jan. 31, 2016 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.15 | $ 0.15 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 15,461,452 | 14,839,702 |
Common stock, shares outstanding | 15,458,219 | 14,836,469 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total |
Balances at Jan. 31, 2014 | $ 2,143 | $ 100,830 | $ 53,335 | $ 1,469 | $ 157,777 | |
Balances (in shares) at Jan. 31, 2014 | 14,285,901 | |||||
Net income | 30,445 | 13,010 | 43,455 | |||
Exercise of stock options | $ 52 | 5,336 | $ 5,388 | |||
Exercise of stock options (in shares) | 345,300 | 346,000 | ||||
Stock option vesting | 2,017 | $ 2,017 | ||||
Excess tax benefit on exercised stock options | 1,480 | 1,480 | ||||
Cash dividends | (10,166) | (10,166) | ||||
Cash distributions to joint venture partner | (25,000) | (25,000) | ||||
Formation of VIE | 1 | 1 | ||||
Balances at Jan. 31, 2015 | $ 2,195 | 109,663 | 73,614 | (10,520) | 174,952 | |
Balances (in shares) at Jan. 31, 2015 | 14,631,201 | |||||
Net income | 36,345 | 13,859 | 50,204 | |||
Foreign currency translation loss | $ (565) | (565) | ||||
Acquisition of APC | $ 15 | 3,521 | 3,536 | |||
Acquisition of APC (in shares) | 98,818 | |||||
Exercise of stock options | $ 16 | 1,802 | $ 1,818 | |||
Exercise of stock options (in shares) | 106,450 | 106,000 | ||||
Stock option vesting | 2,374 | $ 2,374 | ||||
Excess tax benefit on exercised stock options | (86) | (86) | ||||
Cash dividends | (10,378) | (10,378) | ||||
Balances at Jan. 31, 2016 | $ 2,226 | 117,274 | 99,581 | (565) | 3,339 | 221,855 |
Balances (in shares) at Jan. 31, 2016 | 14,836,469 | |||||
Net income | 70,328 | 7,098 | 77,426 | |||
Foreign currency translation loss | (197) | (197) | ||||
Exercise of stock options | $ 93 | 15,808 | $ 15,901 | |||
Exercise of stock options (in shares) | 621,750 | 622,000 | ||||
Stock option vesting | 2,344 | $ 2,344 | ||||
Cash dividends | (15,260) | (15,260) | ||||
Cash distributions to joint venture partner | (9,500) | (9,500) | ||||
Balances at Jan. 31, 2017 | $ 2,319 | $ 135,426 | $ 154,649 | $ (762) | $ 937 | $ 292,569 |
Balances (in shares) at Jan. 31, 2017 | 15,458,219 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 77,426 | $ 50,204 | $ 43,455 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Impairment loss | 1,979 | ||
Deferred income tax expense | 1,237 | 3,421 | 896 |
Stock option compensation expense | 2,344 | 2,374 | 2,017 |
Depreciation | 2,043 | 779 | 551 |
Amortization of purchased intangibles assets | 1,163 | 531 | 243 |
Gain on the deconsolidation of a variable interest entity | (349) | ||
Other | 517 | 107 | |
Changes in operating assets and liabilities | |||
Accounts receivable | 9,217 | (12,194) | (3,879) |
Prepaid expenses and other assets | (668) | (2,751) | 501 |
Accounts payable and accrued expenses | 59,522 | (12,196) | 22,645 |
Billings in excess of costs and estimated earnings, net | 104,264 | (62,958) | 26,900 |
Net cash provided by (used in) operating activities | 259,044 | (33,032) | 93,329 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of short-term investments | (595,000) | (252,000) | |
Maturities of short-term investments | 354,000 | 138,000 | |
Purchase of subsidiaries, net of cash acquired (Note 3) | (17,381) | ||
Purchases of property, plant and equipment | (2,811) | (3,118) | (2,936) |
Decrease (increase) in notes receivable | 3,960 | (614) | |
Net cash used in investing activities | (243,811) | (130,539) | (3,550) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash dividends | (15,260) | (10,378) | (10,166) |
Cash distributions to joint venture partner | (9,500) | (25,000) | |
Proceeds from the exercise of stock options | 15,901 | 1,818 | 5,389 |
Excess income tax benefits on exercised stock options (Note 2) | (86) | 1,480 | |
Net cash used in financing activities | (8,859) | (8,646) | (28,297) |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (85) | (565) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 6,289 | (172,782) | 61,482 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 160,909 | 333,691 | 272,209 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 167,198 | 160,909 | 333,691 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Cash paid for income taxes | $ 36,861 | $ 25,678 | $ 18,662 |
Common stock issued in connection with the acquisition of APC (noncash transaction, see Note 3) | 3,536 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Jan. 31, 2017 | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | NOTE 1 — DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Description of the Business The consolidated financial statements include the accounts of Argan, Inc. (“Argan”), its wholly owned subsidiaries, its majority-controlled joint ventures and any variable interest entities for which Argan or one of its wholly-owned subsidiaries is deemed to be the primary beneficiary. Argan conducts operations through its wholly owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”), which provided 85%, 90% and 98% of consolidated revenues for the fiscal years ended January 31, 2017, 2016 and 2015, respectively; The Roberts Company (“TRC”); Atlantic Projects Company Limited and affiliates (“APC”) and Southern Maryland Cable, Inc. (“SMC”). Argan and these consolidated subsidiaries are hereinafter cumulatively referred to as the “Company.” Through GPS and APC, the Company provides a full range of engineering, procurement, construction, commissioning, operations management, maintenance, development, technical and consulting services to the power generation and renewable energy markets for a wide range of customers including independent power project owners, public utilities, power plant equipment suppliers and global energy plant construction firms. GPS, including its consolidated joint ventures and variable interest entities, and APC represent our power industry services reportable segment. Through TRC, the industrial fabrication and field services reportable segment provides field services that support maintenance turnarounds, shutdowns and emergency mobilizations for industrial plants primarily located in the southern United States and that are based on its expertise in producing, delivering and installing fabricated steel components such as pressure vessels, heat exchangers and piping systems. Through SMC, the telecommunications infrastructure services segment provides project management, construction, installation and maintenance services to commercial, local government and federal government customers primarily in the mid-Atlantic region. Basis of Presentation The consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries, its majority-controlled joint ventures and any variable interest entity for which the Company is deemed to be the primary beneficiary (see Note 4). All significant inter-company balances and transactions have been eliminated in consolidation. Certain amounts in the balance sheets and statements of cash flows for prior years were reclassified to conform to the current year presentations. In Note 18, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 of each year. Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, revenues, expenses, and certain financial statement disclosures. Management believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to it at the time that these estimates, judgments and assumptions are made. Estimates are used for, but are not limited to, the Company’s accounting for revenue recognition, the valuation of assets with long and indefinite lives including goodwill, the valuation of options to purchase shares of the Company’s common stock, the evaluation of contingent obligations, the valuation of deferred taxes, and the determination of the allowance for doubtful accounts. Actual results could differ from these estimates. Property, Plant and Equipment — Property, plant and equipment are stated at cost. Such assets acquired in a business combination are initially included in the Company’s consolidated balance sheet at fair values. Depreciation amounts are determined using the straight-line method over the estimated useful lives of the assets, other than land, which are generally from five to thirty-nine years. Building and leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the related asset or the lease term, as applicable. The costs of maintenance and repairs are expensed as incurred and major improvements are capitalized. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in earnings. Goodwill — At least annually, the Company reviews the carrying value of goodwill amounts for impairment. The goodwill impairment test is performed using the two-step process unless the consideration of a possible goodwill impairment conducted pursuant to the permitted simplified approach results in a conclusion that no such impairment has occurred. The first step of the impairment test is to identify a potential impairment by comparing the fair value of the business unit with its carrying amount, including goodwill. The weighted average estimate of fair value of the business unit, generally an operating segment, is determined using various market-based and income-based valuation techniques as applicable in the particular circumstances. If the fair value of the business unit exceeds its carrying amount, goodwill of the business unit is not deemed impaired and the second step of the impairment test is not performed. If the carrying amount of the business unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. The second step of the impairment test compares the implied fair value of the business unit’s goodwill with the corresponding carrying amount. If the carrying amount of the business unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. Accordingly, the fair value of the business unit is allocated to all of the assets and liabilities of that business unit (including any unrecognized intangible assets) as if the business unit had been acquired in a business combination and the fair value of the business unit was the purchase price paid to acquire it. Nonetheless, the Company would evaluate any of these assets for impairment more frequently if events or changes in circumstances indicate that an asset value might be impaired. The simplified approach allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a business unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The guidance includes discussions of the types of factors which should be considered in conducting the qualitative assessment including macroeconomic, industry, market and entity-specific factors. Long-Lived Assets — Long-lived assets, consisting primarily of purchased intangible assets with definite lives, property and equipment, are subject to review for impairment whenever events or changes in circumstances indicate that a carrying amount should be assessed. In such circumstances, the Company would compare the carrying value of the long-lived asset to the undiscounted future cash flows expected to result from the use of the asset. In the event that the Company would determine that the carrying value of the asset is not recoverable, a loss would be recognized based on the amount by which the carrying value exceeds the fair value of the asset. Fair value would be determined by using quoted market prices or valuation techniques such as the present value of expected future cash flows, appraisals, or other pricing models as appropriate. The useful lives and amortization of purchased intangible assets are described in Note 8. Revenue Recognition — Revenues are recognized primarily under various construction contracts, including contracts for which revenues are based on either a fixed price, cost-plus-fee or time and materials basis, with typical durations of three months to three years. Revenues from fixed price construction contracts, including a portion of estimated profit, are recognized as services are provided, based on costs incurred and estimated total contract costs using the percentage of completion method. Revenues from cost-plus-fee construction contracts are recognized on the basis of costs incurred during the period plus the fee earned, measured using the cost-to-cost method. Revenues from time and materials contracts are recognized when the related services are provided to the customer. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Unapproved change orders, which represent contract variations for which the Company has project owner directive for additional work or authorization for scope changes but not for the price associated with the corresponding change, are reflected in revenues when it is probable that the applicable costs will be recovered through a change in the contract price. The total amount of unapproved change orders included in the total contract value amounts used to determine revenues as of January 31, 2017 was $2.7 million. In general, claims that are unapproved in regard to both scope and price are reflected in revenues only when an agreement on the amount has been reached with the project owner. The Company’s long-term contracts typically have schedule dates and other performance obligations that if not achieved could subject the Company to liquidated damages. These contract requirements generally relate to specified activities that must be completed by an established date or by achievement of a specified level of output or efficiency. Each contract defines the conditions under which a project owner may make a claim for liquidated damages. However, in some instances, potential liquidated damages are not asserted by a project owner, but may be considered during the negotiation or settlement of claims and the close-out of a contract. In June 2016, the Company negotiated the general close-out of a contract including the $12.9 million in potential liquidated damages related to it. In general, the Company considers potential liquidated damages, the costs of other related items and potential mitigating factors in determining the adequacy of its estimates of completed contract costs. The following schedule presents the two categories of revenues earned by the power industry services business during the years ended January 31, 2017, 2016 and 2015. Core services represent primarily the revenues from ongoing activities conducted pursuant to engineering, construction and procurement contracts for energy plant project owners. Project development fees represent amounts realized upon the success of cooperative activities performed by project developers and the Company including the permanent financing and sale of the associated project (see Note 4). Category of Service 2017 2016 2015 Core services $ $ $ Project development success fees — — Revenues $ $ $ Income Taxes — Deferred tax assets and liabilities are recognized using enacted tax rates for the effects of temporary differences between the book and tax bases of recorded assets and liabilities. If management believes that it is more likely than not that some portion or all of a deferred tax asset will not be realized, the carrying value will be reduced by a valuation allowance. The Company accounts for uncertain tax positions in accordance with current accounting guidance which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on our consolidated tax return. We evaluate and record the effect of any uncertain tax position based on the amount that management deems is more likely than not (i.e., greater than a 50% probability) to be sustained upon examination and ultimate settlement with the tax authorities in the applicable tax jurisdictions. Interest incurred related to overdue income taxes is included in income tax expense; income tax penalties are included in selling, general and administrative expenses. Stock-Based Compensation — The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based upon fair value at the date of award using a fair value based option pricing model. The compensation expense is recognized on a straight-line basis over the requisite service period. Fair Values — Current professional accounting guidance applies to all assets and liabilities that are being measured and reported on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The requirements prescribe a fair value hierarchy that has three levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value. A Level 1 input includes a quoted market price in an active market or the price of an identical asset or liability. Level 2 inputs are market data other than Level 1 inputs that are observable either directly or indirectly including quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. The carrying value amounts presented in the consolidated balance sheets for the Company’s cash and cash equivalents, short-term investments, accounts receivable, notes receivable and accounts payable are reasonable estimates of their fair values due to the short-term nature of these instruments. The fair value amounts of business segments (as needed for purposes of identifying indications of impairment to goodwill) are determined by averaging valuations that are calculated using several market-based and income-based approaches deemed appropriate in the circumstances (see Note 8). Foreign Currency Translation — The accompanying consolidated financial statements are presented in US Dollars. The effects of translating the financial statements of APC from its functional currency (Euros) into the Company’s reporting currency (US Dollars) are recognized as translation adjustments in accumulated other comprehensive income (loss) which is net of tax, where applicable. The translation of assets and liabilities to US Dollars is made at the exchange rate in effect at the consolidated balance sheet date, while equity accounts are translated at historical rates. The translation of the statement of earnings amounts is made monthly at the average currency exchange rate for the month. Net foreign currency transaction gains and losses were included in the other income section of the Company’s consolidated statements of earnings for the years ended January 31, 2017 and 2016; such amounts were not material for the years ended January 31, 2017 and 2016. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jan. 31, 2017 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 2 — RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS There are no recently issued accounting pronouncements that have not yet been adopted that we consider material to the Company’s consolidated financial statements except for the following new professional guidance related to revenue recognition and leases. Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a final standard on revenue recognition, Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), in order to create a new, principles-based revenue recognition framework that may affect nearly every revenue-generating entity. As delayed by the FASB, ASU 2014-09 becomes effective for public companies for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements, including which of the alternative application approaches available under the standard will be utilized for its adoption. Entities are permitted to apply the new standard either retrospectively, subject to certain practical expedients, or through an alternative transition method that requires the application of the guidance only to contracts that are uncompleted on the date of initial application. The Company expects to apply the new standard using the modified retrospective method upon its adoption date on February 1, 2018. To date, the Company has examined a contract that it believes is representative of the contracts that will be in place at the date of adoption and has come to preliminary conclusions on the impact of the new standard on revenues using the 5-step process prescribed by ASU 2014-09. It does not believe that the adoption of ASU 2014-09 will have a significant impact on its revenue recognition patterns as compared to revenue recognition under the existing revenue guidance, assuming that contract structures similar to those in place are in effect at the time of the Company’s adoption of ASU 2014-09. The Company expects that revenues generated will continue to be recognized over time utilizing the percent-complete measure of progress consistent with current practice. However, there are certain industry-specific implementation issues that are still unresolved and, depending on the resolution of these matters, conclusions on the impact on the Company’s revenue recognition patterns could change. The Company will continue to evaluate the impacts of ASU 2014-09 through the date of adoption to ensure that its preliminary conclusions continue to remain accurate. Additionally, the Company is continuing its assessment of ASU 2014-09’s impact on its financial statement disclosures. Leases In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases, which amends the existing guidance and which will require recognition of operating leases with lease terms of more than twelve months on the balance sheet. For these leases, companies will record assets for the rights and liabilities for the obligations that are created by the leases. The pronouncement will require disclosures that provide qualitative and quantitative information for the lease assets and liabilities recorded in the financial statements. Although the adoption of this pronouncement, which is effective for fiscal years beginning after December 15, 2018, will affect the Company’s consolidated financial statements, the Company has not yet determined the complete extent or significance of the changes. Stock Options In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting , as part of its simplification initiative. The simplifications in this pronouncement affect several aspects of the accounting for share-based payment transactions, including the income tax consequences, the classification of awards as either equity or liabilities, and the presentation of the statement of cash flows. The Company determines for each stock option award whether the difference between the deduction for income tax reporting purposes created at the time of stock option exercise and the related compensation cost previously recorded for financial reporting purposes results in either an excess income tax benefit or an income tax deficiency. In accordance with past guidance, excess income tax benefits were recorded as additions to the additional paid-in capital account; past income tax deficiencies were not material. Under the new guidance, all excess income tax benefits and income tax deficiencies are recognized accordingly as income tax benefit or expense in the income statement. The events are treated as discrete items in the determination of income tax expense for each quarterly reporting period in which they occur. In addition, excess tax benefits are classified along with other income tax cash flows as an operating activity. As permitted, the Company adopted the new pronouncement in the current fiscal year, effective as of February 1, 2016, with the primary effect being the reduction of federal income tax expense for the fiscal year ended January 31, 2017 in the amount of $5.0 million. Deferred Income Taxes Late in 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes , which eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations are required to classify all deferred tax assets and liabilities as noncurrent. Implementation of this new standard is required for public entities for reporting periods beginning after December 15, 2016. As permitted, the new guidance was adopted early by the Company in the current fiscal year using a retrospective approach. Accordingly, deferred tax assets in the amount of $1.1 million that were previously included in current assets as of January 31, 2016 were reclassified and reflected in the net balance of deferred income tax liabilities classified as noncurrent in the consolidated balance sheet as of January 31, 2016 included herein. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jan. 31, 2017 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | NOTE 3 — BUSINESS COMBINATIONS On December 4, 2015, the Company acquired TRC, including its consolidated subsidiaries, in a business combination that was completed pursuant to the terms and conditions of a Membership Interest Purchase Agreement. TRC is principally an industrial fabricator and constructor serving both light and heavy industrial organizations primarily in the southern United States. Consideration included a $0.5 million cash payment. In addition, the Company made cash payments totaling $15.6 million on the closing date in order to retire the outstanding bank debt and certain leases of TRC. On May 29, 2015, a wholly owned subsidiary of the Company purchased 100% of the outstanding capital of APC, a private company incorporated in the Republic of Ireland. This business combination was completed pursuant to the terms and conditions of a Share Purchase Agreement, dated May 11, 2015 (the “SPA”). Including its affiliated companies, APC provides turbine, boiler and large rotating equipment installation, commissioning and outage services to original equipment manufacturers, global construction firms and plant owners worldwide. The fair value of the consideration transferred to the former owners of APC was $11.1 million including a liability in the amount of $1.1 million representing cash held back until the expiration of the escrow period. During the fiscal year ended January 31, 2017, the Company paid the full amount of these funds to the former owners of APC. Both business combinations were accounted for using the acquisition method of accounting, with Argan as the acquirer. The results of operations for APC and TRC have been included in the consolidated financial statements since the corresponding acquisition dates. |
SPECIAL PURPOSE ENTITIES
SPECIAL PURPOSE ENTITIES | 12 Months Ended |
Jan. 31, 2016 | |
SPECIAL PURPOSE ENTITIES | |
SPECIAL PURPOSE ENTITIES | NOTE 4 — SPECIAL PURPOSE ENTITIES Construction Joint Ventures GPS assigned its contracts for the engineering, procurement and construction of two natural gas-fired power plants (the “EPC Contracts”), known as Panda Liberty and Panda Patriot, to two separate joint ventures that were formed in order to perform the work for the applicable project and to spread the bonding risk of each project. The joint venture partner for both projects is a large civil contracting firm. The corresponding joint venture agreements, as amended, provide that GPS has the majority interest in any profits, losses, assets and liabilities resulting from the performance of the EPC Contracts. Final completion of the two projects, as defined by each EPC Contract, was achieved in December 2016 and October 2016, respectively. GPS has no significant commitments under these arrangements beyond those related to the completion of the EPC Contracts except for the provision of services under the related warranty obligations. Due to the financial control by GPS, the accounts of the joint ventures have been included in the Company’s consolidated financial statements since the commencement of contract activities (near the end of the fiscal year ended January 31, 2014). The shares of the profits of the joint ventures have been determined based on the percentages by which the Company believes profits will ultimately be shared by the joint venture partners. Moxie Freedom LLC In August 2014, GPS entered into a Development Loan Agreement (the “DLA”) with Moxie Freedom LLC (“Moxie Freedom”), a variable interest entity (“VIE”) that was wholly owned by Moxie Energy, LLC (“Moxie”), a power facility project development firm. The financial support provided by GPS covered a significant portion of the costs for Moxie Freedom to develop a large natural gas-fired power plant. Under the DLA, GPS made development loans to Moxie Freedom that totaled $4.3 million. Such loans earned interest based on an annual rate of 20%. In November 2015, Moxie sold a substantial portion of its ownership interest in Moxie Freedom, GPS received repayment of its development loans in full and $0.6 million in accrued interest, GPS received a development success fee in the amount of $4.3 million and the full notice-to-proceed with activities pursuant to the corresponding EPC contract. Pursuant to a participation agreement, an equipment supplier to Moxie Freedom provided GPS with 40% of the funding for the development loans made to Moxie Freedom that totaled $1.7 million. Under the applicable accounting guidance, the funding provided to GPS was treated as a secured borrowing. Interest payable to the supplier accrued based on an annual rate of 20% and the supplier was entitled to receive 40% of any development success fee earned by GPS in connection with the permanent financing and/or sale of the project. In November 2015, all amounts due under the participation agreement were paid by GPS including principal and interest in the total amount of $1.9 million and the supplier’s share of the development success fee in the amount of $1.7 million. Through its arrangements with Moxie Freedom, the Company was deemed to be the primary beneficiary of this VIE entity at its inception. However, Moxie Freedom substantially completed its project development efforts during the fiscal year ended January 31, 2016, and financial support was thereafter provided substantially by the pending investor. As a result, the Company was no longer the primary beneficiary of the VIE and it was deconsolidated during the quarter ended July 31, 2015. The primary effects of the deconsolidation were the elimination of the capitalized project costs from the Company’s consolidated balance sheet ($4.9 million) and the addition to the consolidated balance sheet of the notes receivable from Moxie Freedom and related accrued interest. For reporting periods prior to the deconsolidation, the amounts of the notes receivable from Moxie Freedom and the corresponding amounts of accrued interest and interest income were eliminated in consolidation. The deconsolidation resulted in a pre-tax gain which was included in the statement of earnings for the fiscal year ended January 31, 2016 in the amount of $0.3 million. |
CASH, CASH EQUIVALENTS AND SHOR
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Jan. 31, 2016 | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | NOTE 5 — CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company considers all liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Short-term investments as of January 31, 2017 and 2016 consisted solely of certificates of deposit purchased from the Bank of America (the “Bank”) with weighted average original maturities of 185 days and 174 days, respectively (the “CDs”). The Company has the intent and ability to hold these securities until they mature, and they are carried at cost plus accrued interest which approximates fair value. The total carrying value amounts as of January 31, 2017 and 2016 included accrued interest of $0.8 million and $0.1 million, respectively. Interest income is recorded when earned and is included in other income, net. As of January 31, 2017 and 2016, the weighted average annual interest rates on the Company’s short-term investment CDs were 1.13% and 0.63%, respectively. The Company has cash on deposit in excess of federally insured limits at the Bank, has purchased CDs and has liquid mutual fund investments at the Bank. Management does not believe that maintaining substantially all such assets with the Bank represents a material risk. The amount of cash and cash equivalents included in the consolidated balance sheet as of January 31, 2017 included $12.5 million held by the consolidated joint venture entities that are discussed in Note 4 above that will be used to cover any remaining future construction or warranty costs incurred under the corresponding EPC Contracts and the remaining earnings distributions to the joint venture partners. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Jan. 31, 2016 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 6 — ACCOUNTS RECEIVABLE Amounts retained by project owners under construction contracts and included in accounts receivable at January 31, 2017 and 2016 were $36.2 million and $44.6 million, respectively. Such retainage amounts represent funds withheld by project owners until a defined phase of a contract or project has been completed and accepted by the project owner. Retention amounts and the length of retention periods may vary. Most of the amount outstanding as of January 31, 2017, relates to active projects and will not be collected until the fiscal year ending January 31, 2019. Retainage amounts related to active contracts are classified as current assets regardless of the term of the applicable contract and amounts are generally collected by the completion of the applicable contract. The Company may extend credit to its customers based on an evaluation of the customers’ financial condition, generally without requiring collateral. Exposure to losses on accounts receivable is expected to differ by customer due to the varying financial condition of each customer. The Company monitors its exposure to credit losses and maintains an allowance for anticipated losses considered necessary under the circumstances based on historical experience with uncollected accounts and a review of its currently outstanding accounts receivable. The provision for uncollectible accounts was $1.2 million for the fiscal year ended January 31, 2017 and was included in selling, general and administrative expenses; such amounts were not material for the years ended January 31, 2016 and 2015. The amount of the allowance for uncollectible accounts at January 31, 2017 was $1.9 million; it related primarily to project development loans made in prior years. The allowance amount as of January 31, 2016 was not material. Due to the circumstances described in Note 8 below, APC wrote-off its account receivable from a project owner in the amount of $0.8 million during the fiscal year ended January 31, 2017. |
COSTS, ESTIMATED EARNINGS AND B
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | 12 Months Ended |
Jan. 31, 2016 | |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | NOTE 7 — COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS The table below sets forth the aggregate amounts of costs charged to and earnings accrued on uncompleted contracts compared with the billings on those contracts through January 31, 2017 and 2016. 2017 2016 Costs charged to uncompleted contracts $ $ Estimated accrued earnings Less - billings to date $ ) $ ) Amounts above are included in the accompanying consolidated balance sheets under the following captions: 2017 2016 Costs and estimated earnings in excess of billings $ $ Billings in excess of costs and estimated earnings $ ) $ ) Contract costs charged as of January 31, 2017 included amounts billed to the Company for delivered goods and services totaling $17.2 million where payments have been retained; retained amounts were included in the Company’s accounts payable as of January 31, 2017. Generally, such amounts are expected to be paid prior to the completion of the applicable project. |
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS | 12 Months Ended |
Jan. 31, 2016 | |
PURCHASED INTANGIBLE ASSETS | |
PURCHASED INTANGIBLE ASSETS | NOTE 8 — PURCHASED INTANGIBLE ASSETS At January 31, 2017, the goodwill balances related to the acquisitions of GPS, TRC and APC were $18.5 million, $14.4 million and $2.0 million, respectively. In July 2016, construction work was suspended on APC’s largest project at that time, which reflected over 90% of its contract backlog. Additionally, APC’s primary market is the United Kingdom, which voted to leave the European Union on June 23, 2016 (“Brexit”). The resulting sterling pound drop, financial market uncertainty and recessionary pressures were considered likely to impact the availability of financing for future power plant developments in the United Kingdom for the foreseeable future. APC’s second largest market was the Middle East, which has experienced decreased project activity due to capital constraints, resulting from decreased oil revenues. APC reported losses during the first half of the fiscal year ended January 31, 2017. Given the events above, analyses were performed in order to determine whether APC’s goodwill had incurred an impairment loss. Using income and market approaches, the assessment analyses indicated that the carrying value of the business exceeded its fair value. As a result, APC recorded an estimated impairment loss at July 31, 2016 related to goodwill of approximately $2.0 million that has been reflected in the consolidated statement of earnings for the year ended January 31, 2017. No impairment loss occurred during the years ended January 31, 2016 or 2015. The Company’s other purchased intangible assets consisted of the following elements as of January 31, 2017 and 2016. 2017 2016 Estimated Gross Accumulated Net Net Trade names - GPS 15 years $ $ $ $ TRC 15 years SMC indefinite — Process certifications - TRC 7 years Customer relationships - TRC 10 years APC 4 years Other intangibles various Totals $ $ $ $ The Company determined the fair values of the trade names using a relief-from-royalty methodology. The Company believes that the useful lives of the trade names for GPS and TRC represent the number of years that such intangibles are expected to contribute to future cash flows. The useful life for the trade name of SMC is considered to be indefinite. In order to value the process certifications of TRC, the Company applied a new reproduction cost method that required the estimation of the costs to replace the assets with certifications that would have the same functionality or utility as the acquired assets. Other intangible assets include primarily the fair values estimated for acquired contract backlogs, other customer relationships and non-compete agreements. The tables below present the activity for the years ended January 31, 2017 and 2016 related to intangible assets, excluding goodwill, that were acquired in connection with business combinations. 2017 2016 Intangible assets, beginning of year $ $ Addition - acquisition of APC — Addition - acquisition of TRC — Total intangible assets, end of year Accumulated amortization, beginning of year Amortization expense Accumulated amortization, end of year Intangible assets, net $ $ The future amounts of amortization expense related to intangibles are presented below for the years ending January 31: 2018 $ 2019 2020 2021 2022 Thereafter Total $ For income tax reporting purposes, goodwill in the approximate amount of $14.4 million is being amortized on a straight-line basis over periods of 15 years. The other amounts of the Company’s goodwill are not amortizable for income tax reporting purposes. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jan. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 9 — PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following at January 31, 2017 and 2016: 2017 2016 Land and improvements $ $ Building and improvements Furniture, machinery and equipment Trucks and other vehicles Less - accumulated depreciation Property, plant and equipment, net $ $ Depreciation for property, plant and equipment was $2.0 million, $0.8 million and $0.6 million for the years ended January 31, 2017, 2016 and 2015, respectively, which amounts were charged substantially to selling, general and administrative expenses in each year. The costs of maintenance and repairs were $2.3 million, $0.8 million and $0.3 million for the years ended January 31, 2017, 2016 and 2015, respectively, which amounts were charged substantially to selling, general and administrative expenses each year as well. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Jan. 31, 2016 | |
FINANCING ARRANGEMENTS | |
FINANCING ARRANGEMENTS | NOTE 10 — FINANCING ARRANGEMENTS The Company maintains financing arrangements with the Bank that are described in a Replacement Credit Agreement, effective August 10, 2015 (the “Credit Agreement”). The Credit Agreement, which superseded the Company’s prior arrangements with the Bank, provides a revolving loan with a maximum borrowing amount of $10.0 million that is available until May 31, 2018 with interest at the 30-day LIBOR plus 2.00%. The Company may also use the borrowing ability to cover standby letters of credit issued by the Bank for the Company’s use in the ordinary course of business. There were no actual borrowings outstanding under the Credit Agreement as of January 31, 2017 or 2016. Borrowing availability in the amount of $3.0 million has been designated to cover a letter of credit issued by the Bank, with an expiration date of June 30, 2017, for insurance exposures. The Company has pledged the majority of its assets to secure the financing arrangements. The Bank’s consent is not required for acquisitions, divestitures, cash dividends or significant investments as long as certain conditions are met. The Bank requires that the Company comply with certain financial covenants at its fiscal year-end and at each of its fiscal quarter-ends. As of January 31, 2017, the Company was compliant with the financial covenants of the Credit Agreement. The commercial bank that supports the activities of TRC has issued an outstanding irrevocable letter of credit on its behalf in the amount of $0.4 million with a current expiration date in January 2018. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Jan. 31, 2016 | |
COMMITMENTS | |
COMMITMENTS | NOTE 11 — COMMITMENTS The Company leases certain office space and other facilities under non-cancelable operating leases expiring on various dates through December 2019. Certain leases contain renewal options. As it is management’s intention to continue to occupy the headquarters facility of SMC, the future minimum lease payment amounts presented below include the payment amounts associated with one remaining two-year option term. The future minimum lease payments presented below also include amounts due under a long-term lease covering the primary offices and plant for TRC with the founder and current chief executive officer of TRC at an annual rate of $0.3 million through April 30, 2017, as well as amounts due under a long-term lease covering the primary offices for APC with several of its current executives at an annual rate of less than $0.1 million through January 1, 2024. None of the Company’s leases include significant amounts for incentives, rent holidays, penalties, or price escalations. Under certain lease agreements, the Company is obligated to pay property taxes, insurance, and maintenance costs. The following is a schedule of future minimum lease payments for the operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of January 31, 2017: 2018 $ 2019 2020 2021 2022 Thereafter Total $ The Company also uses equipment and occupies other facilities under non-cancelable operating leases and other rental agreements. Rent incurred on construction projects and included in the costs of revenues was $13.2 million, $15.0 million and $14.4 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. Rent expense amounts included in selling, general and administrative expenses were $0.6 million, $0.3 million and $0.2 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jan. 31, 2016 | |
CONTINGENCIES | |
CONTINGENCIES | NOTE 12 — CONTINGENCIES In the normal course of business, the Company may have pending claims and legal proceedings. It is the opinion of management, based on information available at this time, that there are no current claims and proceedings that could have a material effect on the Company’s consolidated financial statements other than the one discussed below. The material amounts of any legal fees expected to be incurred in connection with legal matters are accrued when such amounts are estimable. PPS Engineers Matter On February 1, 2016, TRC was sued in Person County, North Carolina, by a subcontractor, PPS Engineers, Inc. (“PPS”), in an attempt to force TRC to pay invoices for services rendered. The amount claimed by PPS in this lawsuit approximates $0.9 million. PPS has placed liens on the property of the customers where work was performed by PPS and it has also filed a claim against the bond issued on behalf of TRC relating to one significant project located in Tennessee in the amount of $2.5 million. On March 4, 2016, TRC filed responses to the claims of PPS. The positions of TRC are that PPS failed to deliver a number of items required by the applicable contract between the parties and that the invoices rendered by PPS covering the disputed services will not be paid until such deliverables are supplied. Further, TRC maintains that certain sums are owed to it by PPS for services, furniture, fixtures, equipment, and software that were supplied by TRC on behalf of PPS that total $2.2 million. The amounts invoiced by PPS were accrued by TRC and the corresponding liability amount was included in accounts payable in the consolidated balance sheet as of January 31, 2017. TRC has not recorded an account receivable for the amounts it believes are owed to it by PPS. The Company intends to defend against the claim of PPS and to pursue its claims against PPS with vigorous efforts. Due to the uncertainty of the ultimate outcomes of these legal proceedings, assurance cannot be provided by the Company that TRC will be successful in these efforts. Management does not believe that resolution of the matters discussed above will result in additional loss with material negative effect on the Company’s consolidated operating results in a future reporting period. Self-Insurance TRC has elected to retain portions of future losses, if any, through the use of self-insurance for exposures related to worker’s compensation and employee health insurance claims. Liabilities in excess of contractually limited amounts are the responsibility of an insurance carrier. To the extent that the Company is self-insured for these exposures, including claims incurred but not reported, liabilities have been accrued based upon the Company’s best estimates, with input from legal and insurance advisors. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the near-term. Management believes that reasonably possible losses, if any, for these matters, to the extent not otherwise disclosed and net of recorded accruals, will not have a material adverse effect on the Company’s future results of operations, financial position or cash flow. At January 31, 2017 and 2016, the aggregate amounts established to cover self-insured losses were included in the balances of accrued expenses in the consolidated balance sheets. Beginning in calendar year 2017, the employee health benefits for the employees of TRC will be fully insured. Warranty Costs Many of the Company’s construction contracts contain warranty provisions covering defects in equipment, materials, design or workmanship that generally run from nine to twenty-four months after the completion of construction. Because of the nature of the Company’s projects, including project owner inspections of the work both during construction and prior to substantial completion, we have not experienced material unexpected warranty costs. However, provision for estimated warranty costs, (if any) is made in the period in which such costs become probable and is periodically adjusted to reflect actual experience. Warranty costs are estimated based on the Company’s experience with the type of work and any known risks relative to each completed project. At January 31, 2017 and 2016, the amounts established to cover future warranty costs under completed EPC contracts were included in the balances of accrued expenses in the consolidated balance sheets. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 31, 2016 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 13 — STOCK-BASED COMPENSATION The Company’s board of directors may make awards under the Stock Plan to officers, directors and key employees. Awards may include incentive stock options (“ISOs”) or nonqualified stock options (“NSOs”), and restricted or unrestricted stock. ISOs granted under the Stock Plan shall have an exercise price per share at least equal to the common stock’s market value per share at the date of grant, shall have a term no longer than ten years, and typically become fully exercisable one year from the date of grant. NSOs may be granted at an exercise price per share that differs from the common stock’s market value per share at the date of grant, may have up to a ten-year term, and typically become exercisable one year from the date of award. As of January 31, 2017, there were approximately 1.2 million shares of the Company’s common stock reserved for issuance under the Company’s stock option plans, including approximately 0.4 million shares of the Company’s common stock available for future awards. Summaries of activity under the Company’s stock option plans for the years ended January 31, 2017, 2016 and 2015, along with the corresponding weighted average per share amounts, are presented below (shares in thousands): Shares Weighted Weighted Weighted Outstanding, January 31, 2014 $ 6.04 $ Granted $ Exercised ) $ Outstanding, January 31, 2015 $ 7.08 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, January 31, 2016 $ 6.36 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, January 31, 2017 $ 7.82 $ Exercisable, January 31, 2017 $ 6.68 $ The changes in the number of non-vested options to purchase shares of common stock for the years ended January 31, 2017, 2016 and 2015, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Weighted Non-vested, January 31, 2014 $ Granted $ Vested ) $ Non-vested, January 31, 2015 $ Granted $ Vested ) $ Non-vested, January 31, 2016 $ Granted $ Vested ) $ Non-vested, January 31, 2017 $ Compensation expense amounts related to stock options were $2.3 million, $2.4 million, and $2.0 million for the years ended January 31, 2017, 2016 and 2015, respectively. At January 31, 2017, there was $3.1 million in unrecognized compensation cost related to outstanding stock options. The Company expects to recognize the compensation expense for these awards within the next twelve months. The total intrinsic values for the stock options exercised during the years ended January 31, 2017, 2016 and 2015 were $18.4 million, $2.1 million and $5.7 million, respectively. At January 31, 2017, the aggregate market values of the shares of common stock subject to outstanding and exercisable stock options exceeded the aggregate exercise prices of such options by $24.5 million and $20.3 million, respectively. The Company estimates the weighted average fair value of stock options on the date of award using a Black-Scholes option pricing model, which was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. For companies with limited stock option exercise experience, current guidance provided by the SEC permits the use of a “simplified method” in developing the estimate of the expected term of a “plain-vanilla’’ share option based on the average of the vesting period and the option term. Historically, the Company used the simplified method to estimate the expected terms of its stock options. However, the Company believes that its stock option exercise activity, particularly over the last two years, has become sufficient to provide it with a reasonable basis upon which to estimate expected lives. Accordingly, the estimated expected life used in the determination of recent stock option awards was 3.35 years. The simplified method would have resulted in the use of 5.5 years as the estimated expected life of each of these stock options. As a result, the aggregate fair value of this group of stock options was reduced by $0.8 million, or approximately 20%. The effect of the change on the amount of stock option compensation expense recorded in Fiscal 2017 was not material. The risk-free interest rates and expected volatility factors used in the determinations of the fair value of stock options awarded during the year ended January 31, 2017 ranged from 1.3% to 1.9% and from 33.3% to 35.0%, respectively. For stock options awarded during the year ended January 31, 2016, the comparable ranges were 1.0% to 1.7% and from 33.9% to 35.3%, respectively. For stock options awarded during the year ended January 31, 2015, the comparable ranges were 0.1% to 1.6% and 29.9% to 34.4%, respectively. The calculations of the expected volatility factors were based on the monthly closing prices of the Company’s common stock for the five-year periods preceding the dates of the corresponding awards. The fair value of each stock option granted in the years ended January 31, 2017, 2016 and 2015 was estimated on the corresponding date of award using the Black-Scholes option-pricing model based on the following weighted average assumptions: 2017 2016 2015 Dividend yield % % % Expected volatility % % % Risk-free interest rate % % % Expected life (in years) The Company also has 401(k) savings plans pursuant to which the Company makes discretionary contributions for the eligible and participating employees. The Company’s expense amounts related to these defined contribution plans were approximately $1.9 million, $1.5 million and $1.1 million for the years ended January 31, 2017, 2016 and 2015, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2016 | |
INCOME TAXES | |
INCOME TAXES | NOTE 14 — INCOME TAXES The components of income tax expense for the years ended January 31, 2017, 2016 and 2015 are presented below: 2017 2016 2015 Current: Federal $ $ $ State Deferred: Federal State ) Income tax expense $ $ $ The Company’s income tax expense amounts for the years ended January 31, 2017, 2016 and 2015 differed from the expected income tax expense amounts computed by applying the federal corporate income tax rate of 35% to income before income taxes for the periods as shown in the table below. 2017 2016 2015 Computed “expected” income tax $ $ $ Increase (decrease) resulting from: State income taxes, net of federal benefit Stock option exercises ) — — Domestic production activities deduction ) ) ) Exclusion of noncontrolling interests ) ) ) Other permanent differences Adjustments and other differences ) Income tax expense $ $ $ For the years ended January 31, 2017, 2016 and 2015, the favorable income tax effects of permanent differences related primarily to the exclusion from taxable income of the income attributable to noncontrolling interest entities (which are considered partnerships for income tax reporting purposes), and the domestic manufacturing deduction, offset partially by the unfavorable income tax effects of state income taxes, net of federal income tax benefit. Also, during the year ended January 31, 2017, there was a favorable income tax effect related to the recognition of the excess income tax benefits associated with stock options exercised during the year (see Note 2). Other permanent differences included nondeductible executive compensation and, for the current year, the unfavorable income tax effect of the goodwill impairment loss. The most significant item reflected in adjustments and other differences for the current year was the foreign income tax differential. The tax effects of temporary differences that gave rise to deferred tax assets and liabilities as of January 31, 2017 and 2016 included the following: 2017 2016 Assets: Net operating loss (“NOL”) carryforwards $ $ Stock options Purchased intangibles Accrued expenses and other Liabilities: Purchased intangibles $ ) $ ) Construction contracts ) ) Property and equipment and other ) ) ) ) Net deferred tax liabilities $ ) $ ) The Company acquired unused net operating losses (“NOLs”) for federal income tax reporting purposes from TRC that are subject to limitations imposed by Section 382 of the Internal Revenue Code of 1986, as amended (the “IRC”). These losses are subject to annual limits that reduce the aggregate amount of NOLs available to the Company in the future to approximately $7.9 million (the “IRC 382 Limit”). These NOLs are available to offset future taxable income and, if not utilized, begin expiring during 2032. The Company also has certain NOLs that will be available to the Company for state and foreign income tax reporting purposes that are substantially similar to the federal NOLs. As APC has incurred operating losses since its acquisition, it does not have any undistributed foreign earnings as of January 31, 2017. The Company’s ability to realize deferred tax assets, including those related to the NOLs discussed above, depends primarily upon the generation of sufficient future taxable income to allow for the utilization of the Company’s deductible temporary differences and tax planning strategies. If such estimates and assumptions change in the future, the Company may be required to record additional valuation allowances against some or all of its deferred tax assets resulting in additional income tax expense in the consolidated statement of earnings. At this time, based substantially on the strong earnings performance of the Company’s power industry services reporting segment, management believes that it is more likely than not that the Company will realize the benefits of its deferred tax assets. As of January 31, 2017 and 2016, the consolidated balance sheets included prepaid income taxes in the amounts of $3.9 million and $3.3 million, respectively. As of January 31, 2017, the Company does not believe that it has any material uncertain income tax positions reflected in its accounts. The Company is subject to income taxes in the United States of America, the Republic of Ireland and in various other state and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company is no longer subject to income tax examinations by tax authorities for its fiscal years ended on or before January 31, 2012 except for a few notable exceptions including the Republic of Ireland and California where the open periods are one year longer. The amounts of interest and penalties related to income taxes that were incurred by the Company during the years ended January 31, 2017, 2016 and 2015 were not material. |
EARNINGS PER SHARE ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | 12 Months Ended |
Jan. 31, 2016 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | NOTE 15 — EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. Reconciliations of weighted average basic shares outstanding to weighted average diluted shares outstanding and the computations of basic and diluted earnings per share for the years ended January 31, 2017, 2016 and 2015 are as follows (shares in thousands): 2017 2016 2015 Net income attributable to the stockholders of Argan, Inc. $ $ $ Weighted average number of shares outstanding - basic Effect of stock options (1) Weighted average number of shares outstanding - diluted Net income per share attributable to the stockholders of Argan, Inc.: Basic $ $ $ Diluted $ $ $ (1) The numbers of antidilutive shares excluded from the diluted earnings per share computations were 165, 180 and 40 for the years ended January 31, 2017, 2016 and 2015, respectively. |
CASH DIVIDENDS
CASH DIVIDENDS | 12 Months Ended |
Jan. 31, 2016 | |
CASH DIVIDENDS | |
CASH DIVIDENDS | NOTE 16 — CASH DIVIDENDS In September 2016, the Company’s board of directors declared regular and special cash dividends of $0.70 and $0.30 per share of common stock, respectively, which were paid on October 28, 2016 to stockholders of record at the close of business on October 18, 2016. In September 2015, the Company’s board of directors declared a regular cash dividend of $0.70 per share of common stock, which was paid in November 2015. During the year ended January 31, 2015, the Company declared and paid a special cash dividend of $0.70 per share of common stock. |
CONCENTRATIONS OF REVENUES AND
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE | 12 Months Ended |
Jan. 31, 2016 | |
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE | |
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE | NOTE 17 — CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE The majority of the Company’s consolidated revenues related to performance by the power industry services segment which provided 87%, 94% and 98% of consolidated revenues for the years ended January 31, 2017, 2016 and 2015, respectively. For the year ended January 31, 2017, the Company’s most significant customer relationships included five power industry service customers which accounted for 20%, 18%, 17%, 14% and 10% of consolidated revenues, respectively. For the year ended January 31, 2016, the Company’s most significant customer relationships included two power industry service customers which accounted for 38% and 35% of consolidated revenues. For the year ended January 31, 2015, the Company’s most significant customer relationships included three power industry service customers which accounted for 45%, 41% and 12% of consolidated revenues. Accounts receivable balances from four major customers represented 18%, 17%, 17% and 11% of the corresponding consolidated balance as of January 31, 2017, and accounts receivable balances from two major customers each represented 27% of the corresponding consolidated balance as of January 31, 2016. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jan. 31, 2016 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 18 — SEGMENT REPORTING Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s reportable segments, power industry services, industrial fabrication and field services, and telecommunications infrastructure services, are organized in separate business units with different management teams, customers, technologies and services, and may include more than one operating segment. With the acquisition of TRC in December 2015, the Company began operations in a new reportable segment, Industrial Fabrication and Field Services (see Note 3). Accordingly, financial information has been presented for this reportable segment for the year ended January 31, 2017 and 2016, and there is no information to be presented for this segment for the year ended January 31, 2015. Presented below are summarized operating results and certain financial position data of the Company’s reportable business segments for the year ended January 31, 2017. The “Other” columns include the Company’s corporate and unallocated expenses. Year Ended January 31, 2017 Power Telecom Industrial Other Totals Revenues $ $ $ $ — $ Cost of revenues — Gross profit — Selling, general and administrative expenses Impairment loss — — — Income (loss) from operations ) Other income, net — — Income (loss) before income taxes $ $ $ $ ) Income tax expense Net income $ Amortization of intangibles $ $ — $ $ — $ Depreciation Property, plant and equipment additions Current assets $ $ $ $ $ Current liabilities Goodwill — — Total assets $ Presented below are summarized operating results and certain financial position data of the Company’s reportable business segments for the years ended January 31, 2016 and 2015. As above, the “Other” columns include the Company’s corporate and unallocated expenses. Year Ended January 31, 2016 Power Telecom Industrial Other Totals Revenues $ $ $ $ — $ Cost of revenues — Gross profit ) — Selling, general and administrative expenses Income (loss) from operations ) ) Other income, net — — Income (loss) before income taxes $ $ $ ) $ ) Income tax expense Net income $ Amortization of intangibles $ $ — $ $ — $ Depreciation Property, plant and equipment additions Goodwill $ $ — $ $ — $ Total assets Year Ended January 31, 2015 Power Telecom Other Totals Revenues $ $ $ — $ Cost of revenues — Gross profit — Selling, general and administrative expenses Income (loss) from operations ) Other income, net — Income (loss) before income taxes $ $ $ ) Income tax expense Net income $ Amortization of intangibles $ $ — $ — $ Depreciation Property, plant and equipment additions Goodwill $ $ — $ — $ Total assets |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (unaudited) | 12 Months Ended |
Jan. 31, 2016 | |
QUARTERLY FINANCIAL INFORMATION (unaudited) | |
QUARTERLY FINANCIAL INFORMATION (unaudited) | NOTE 19 — QUARTERLY FINANCIAL INFORMATION (unaudited ) Certain unaudited financial information reported for the quarterly periods ended April 30, July 31, October 31 and January 31 included in the years ended January 31, 2017 and 2016 is presented below: April 30 July 31 October 31 January 31 Full Year 2017 Revenues $ $ $ $ $ Gross profit Income from operations Net income Net income attributable to the stockholders of Argan, Inc. Earnings per share(1)(2) Basic $ $ $ $ $ Fully diluted $ $ $ $ $ 2016 Revenues $ $ $ $ $ Gross profit Income from operations Net income Net income attributable to the stockholders of Argan, Inc. Earnings per share(1)(2) Basic $ $ $ $ $ Fully diluted $ $ $ $ $ (1) The earnings per share amounts are attributable to the stockholders of Argan, Inc. (2) Earnings per share amounts for the quarter periods may not cross-foot to the corresponding full-year amounts as the amounts for each quarter are calculated independently of the calculations for the full-year amounts. |
DESCRIPTION OF THE BUSINESS A26
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Jan. 31, 2017 | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries, its majority-controlled joint ventures and any variable interest entity for which the Company is deemed to be the primary beneficiary (see Note 4). All significant inter-company balances and transactions have been eliminated in consolidation. Certain amounts in the balance sheets and statements of cash flows for prior years were reclassified to conform to the current year presentations. In Note 18, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 of each year. |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, revenues, expenses, and certain financial statement disclosures. Management believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to it at the time that these estimates, judgments and assumptions are made. Estimates are used for, but are not limited to, the Company’s accounting for revenue recognition, the valuation of assets with long and indefinite lives including goodwill, the valuation of options to purchase shares of the Company’s common stock, the evaluation of contingent obligations, the valuation of deferred taxes, and the determination of the allowance for doubtful accounts. Actual results could differ from these estimates. |
Property, Plant and Equipment | Property, Plant and Equipment — Property, plant and equipment are stated at cost. Such assets acquired in a business combination are initially included in the Company’s consolidated balance sheet at fair values. Depreciation amounts are determined using the straight-line method over the estimated useful lives of the assets, other than land, which are generally from five to thirty-nine years. Building and leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the related asset or the lease term, as applicable. The costs of maintenance and repairs are expensed as incurred and major improvements are capitalized. When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in earnings. |
Goodwill | Goodwill — At least annually, the Company reviews the carrying value of goodwill amounts for impairment. The goodwill impairment test is performed using the two-step process unless the consideration of a possible goodwill impairment conducted pursuant to the permitted simplified approach results in a conclusion that no such impairment has occurred. The first step of the impairment test is to identify a potential impairment by comparing the fair value of the business unit with its carrying amount, including goodwill. The weighted average estimate of fair value of the business unit, generally an operating segment, is determined using various market-based and income-based valuation techniques as applicable in the particular circumstances. If the fair value of the business unit exceeds its carrying amount, goodwill of the business unit is not deemed impaired and the second step of the impairment test is not performed. If the carrying amount of the business unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. The second step of the impairment test compares the implied fair value of the business unit’s goodwill with the corresponding carrying amount. If the carrying amount of the business unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. Accordingly, the fair value of the business unit is allocated to all of the assets and liabilities of that business unit (including any unrecognized intangible assets) as if the business unit had been acquired in a business combination and the fair value of the business unit was the purchase price paid to acquire it. Nonetheless, the Company would evaluate any of these assets for impairment more frequently if events or changes in circumstances indicate that an asset value might be impaired. The simplified approach allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a business unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The guidance includes discussions of the types of factors which should be considered in conducting the qualitative assessment including macroeconomic, industry, market and entity-specific factors. |
Long-Lived Assets | Long-Lived Assets — Long-lived assets, consisting primarily of purchased intangible assets with definite lives, property and equipment, are subject to review for impairment whenever events or changes in circumstances indicate that a carrying amount should be assessed. In such circumstances, the Company would compare the carrying value of the long-lived asset to the undiscounted future cash flows expected to result from the use of the asset. In the event that the Company would determine that the carrying value of the asset is not recoverable, a loss would be recognized based on the amount by which the carrying value exceeds the fair value of the asset. Fair value would be determined by using quoted market prices or valuation techniques such as the present value of expected future cash flows, appraisals, or other pricing models as appropriate. The useful lives and amortization of purchased intangible assets are described in Note 8. |
Revenue Recognition | Revenue Recognition — Revenues are recognized primarily under various construction contracts, including contracts for which revenues are based on either a fixed price, cost-plus-fee or time and materials basis, with typical durations of three months to three years. Revenues from fixed price construction contracts, including a portion of estimated profit, are recognized as services are provided, based on costs incurred and estimated total contract costs using the percentage of completion method. Revenues from cost-plus-fee construction contracts are recognized on the basis of costs incurred during the period plus the fee earned, measured using the cost-to-cost method. Revenues from time and materials contracts are recognized when the related services are provided to the customer. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Unapproved change orders, which represent contract variations for which the Company has project owner directive for additional work or authorization for scope changes but not for the price associated with the corresponding change, are reflected in revenues when it is probable that the applicable costs will be recovered through a change in the contract price. The total amount of unapproved change orders included in the total contract value amounts used to determine revenues as of January 31, 2017 was $2.7 million. In general, claims that are unapproved in regard to both scope and price are reflected in revenues only when an agreement on the amount has been reached with the project owner. The Company’s long-term contracts typically have schedule dates and other performance obligations that if not achieved could subject the Company to liquidated damages. These contract requirements generally relate to specified activities that must be completed by an established date or by achievement of a specified level of output or efficiency. Each contract defines the conditions under which a project owner may make a claim for liquidated damages. However, in some instances, potential liquidated damages are not asserted by a project owner, but may be considered during the negotiation or settlement of claims and the close-out of a contract. In June 2016, the Company negotiated the general close-out of a contract including the $12.9 million in potential liquidated damages related to it. In general, the Company considers potential liquidated damages, the costs of other related items and potential mitigating factors in determining the adequacy of its estimates of completed contract costs. The following schedule presents the two categories of revenues earned by the power industry services business during the years ended January 31, 2017, 2016 and 2015. Core services represent primarily the revenues from ongoing activities conducted pursuant to engineering, construction and procurement contracts for energy plant project owners. Project development fees represent amounts realized upon the success of cooperative activities performed by project developers and the Company including the permanent financing and sale of the associated project (see Note 4). Category of Service 2017 2016 2015 Core services $ $ $ Project development success fees — — Revenues $ $ $ |
Income Taxes | Income Taxes — Deferred tax assets and liabilities are recognized using enacted tax rates for the effects of temporary differences between the book and tax bases of recorded assets and liabilities. If management believes that it is more likely than not that some portion or all of a deferred tax asset will not be realized, the carrying value will be reduced by a valuation allowance. The Company accounts for uncertain tax positions in accordance with current accounting guidance which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on our consolidated tax return. We evaluate and record the effect of any uncertain tax position based on the amount that management deems is more likely than not (i.e., greater than a 50% probability) to be sustained upon examination and ultimate settlement with the tax authorities in the applicable tax jurisdictions. Interest incurred related to overdue income taxes is included in income tax expense; income tax penalties are included in selling, general and administrative expenses. |
Stock-Based Compensation | Stock-Based Compensation — The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based upon fair value at the date of award using a fair value based option pricing model. The compensation expense is recognized on a straight-line basis over the requisite service period. |
Fair Values | Fair Values — Current professional accounting guidance applies to all assets and liabilities that are being measured and reported on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The requirements prescribe a fair value hierarchy that has three levels of inputs, both observable and unobservable, with use of the lowest possible level of input to determine fair value. A Level 1 input includes a quoted market price in an active market or the price of an identical asset or liability. Level 2 inputs are market data other than Level 1 inputs that are observable either directly or indirectly including quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. The carrying value amounts presented in the consolidated balance sheets for the Company’s cash and cash equivalents, short-term investments, accounts receivable, notes receivable and accounts payable are reasonable estimates of their fair values due to the short-term nature of these instruments. The fair value amounts of business segments (as needed for purposes of identifying indications of impairment to goodwill) are determined by averaging valuations that are calculated using several market-based and income-based approaches deemed appropriate in the circumstances (see Note 8). |
Foreign Currency Translation | Foreign Currency Translation — The accompanying consolidated financial statements are presented in US Dollars. The effects of translating the financial statements of APC from its functional currency (Euros) into the Company’s reporting currency (US Dollars) are recognized as translation adjustments in accumulated other comprehensive income (loss) which is net of tax, where applicable. The translation of assets and liabilities to US Dollars is made at the exchange rate in effect at the consolidated balance sheet date, while equity accounts are translated at historical rates. The translation of the statement of earnings amounts is made monthly at the average currency exchange rate for the month. Net foreign currency transaction gains and losses were included in the other income section of the Company’s consolidated statements of earnings for the years ended January 31, 2017 and 2016; such amounts were not material for the years ended January 31, 2017 and 2016. |
DESCRIPTION OF THE BUSINESS A27
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
Schedule of Revenues by Service Category | Category of Service 2017 2016 2015 Core services $ $ $ Project development success fees — — Revenues $ $ $ |
COSTS, ESTIMATED EARNINGS AND28
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | |
Aggregate Amount of Costs Incurred and Earnings Accrued on Uncompleted Contracts Compared with Billings on Contracts | The table below sets forth the aggregate amounts of costs charged to and earnings accrued on uncompleted contracts compared with the billings on those contracts through January 31, 2017 and 2016. 2017 2016 Costs charged to uncompleted contracts $ $ Estimated accrued earnings Less - billings to date $ ) $ ) Amounts above are included in the accompanying consolidated balance sheets under the following captions: 2017 2016 Costs and estimated earnings in excess of billings $ $ Billings in excess of costs and estimated earnings $ ) $ ) |
PURCHASED INTANGIBLE ASSETS (Ta
PURCHASED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
PURCHASED INTANGIBLE ASSETS | |
Schedule of Intangible Assets | 2017 2016 Estimated Gross Accumulated Net Net Trade names - GPS 15 years $ $ $ $ TRC 15 years SMC indefinite — Process certifications - TRC 7 years Customer relationships - TRC 10 years APC 4 years Other intangibles various Totals $ $ $ $ |
Scheduled of Activity of Acquired Intangible Assets | 2017 2016 Intangible assets, beginning of year $ $ Addition - acquisition of APC — Addition - acquisition of TRC — Total intangible assets, end of year Accumulated amortization, beginning of year Amortization expense Accumulated amortization, end of year Intangible assets, net $ $ |
Schedule of Expected Amortization Expense | The future amounts of amortization expense related to intangibles are presented below for the years ending January 31: 2018 $ 2019 2020 2021 2022 Thereafter Total $ |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT | |
Summary of Property, Plant and Equipment | 2017 2016 Land and improvements $ $ Building and improvements Furniture, machinery and equipment Trucks and other vehicles Less - accumulated depreciation Property, plant and equipment, net $ $ |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
COMMITMENTS | |
Schedule of Future Minimum Lease Payments for the Operating Leases of Continuing Operations | The following is a schedule of future minimum lease payments for the operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of January 31, 2017: 2018 $ 2019 2020 2021 2022 Thereafter Total $ |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
STOCK-BASED COMPENSATION | |
Summary of Activity under Option and Stock Plans | Summaries of activity under the Company’s stock option plans for the years ended January 31, 2017, 2016 and 2015, along with the corresponding weighted average per share amounts, are presented below (shares in thousands): Shares Weighted Weighted Weighted Outstanding, January 31, 2014 $ 6.04 $ Granted $ Exercised ) $ Outstanding, January 31, 2015 $ 7.08 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, January 31, 2016 $ 6.36 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, January 31, 2017 $ 7.82 $ Exercisable, January 31, 2017 $ 6.68 $ |
Summary of Change in Number of Non-Vested Options to Purchase Shares of Common Stock | The changes in the number of non-vested options to purchase shares of common stock for the years ended January 31, 2017, 2016 and 2015, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Weighted Non-vested, January 31, 2014 $ Granted $ Vested ) $ Non-vested, January 31, 2015 $ Granted $ Vested ) $ Non-vested, January 31, 2016 $ Granted $ Vested ) $ Non-vested, January 31, 2017 $ |
Summary of Assumptions Used to Estimate Fair Value of Stock Options Granted | 2017 2016 2015 Dividend yield % % % Expected volatility % % % Risk-free interest rate % % % Expected life (in years) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
INCOME TAXES | |
Components of Company's Income Tax Expense | 2017 2016 2015 Current: Federal $ $ $ State Deferred: Federal State ) Income tax expense $ $ $ |
Actual Income Tax Expense Amounts | 2017 2016 2015 Computed “expected” income tax $ $ $ Increase (decrease) resulting from: State income taxes, net of federal benefit Stock option exercises ) — — Domestic production activities deduction ) ) ) Exclusion of noncontrolling interests ) ) ) Other permanent differences Adjustments and other differences ) Income tax expense $ $ $ |
Schedule of Tax Effects of Temporary Differences that Gave Rise to Deferred Tax Assets and Liabilities | 2017 2016 Assets: Net operating loss (“NOL”) carryforwards $ $ Stock options Purchased intangibles Accrued expenses and other Liabilities: Purchased intangibles $ ) $ ) Construction contracts ) ) Property and equipment and other ) ) ) ) Net deferred tax liabilities $ ) $ ) |
EARNINGS PER SHARE ATTRIBUTAB34
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |
Schedule of computations of basic and diluted earnings per share | Reconciliations of weighted average basic shares outstanding to weighted average diluted shares outstanding and the computations of basic and diluted earnings per share for the years ended January 31, 2017, 2016 and 2015 are as follows (shares in thousands): 2017 2016 2015 Net income attributable to the stockholders of Argan, Inc. $ $ $ Weighted average number of shares outstanding - basic Effect of stock options (1) Weighted average number of shares outstanding - diluted Net income per share attributable to the stockholders of Argan, Inc.: Basic $ $ $ Diluted $ $ $ (1) The numbers of antidilutive shares excluded from the diluted earnings per share computations were 165, 180 and 40 for the years ended January 31, 2017, 2016 and 2015, respectively. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
SEGMENT REPORTING | |
Summarized Operating Results and Certain Financial Position Data of Company's Reportable Business Segments | Presented below are summarized operating results and certain financial position data of the Company’s reportable business segments for the year ended January 31, 2017. The “Other” columns include the Company’s corporate and unallocated expenses. Year Ended January 31, 2017 Power Telecom Industrial Other Totals Revenues $ $ $ $ — $ Cost of revenues — Gross profit — Selling, general and administrative expenses Impairment loss — — — Income (loss) from operations ) Other income, net — — Income (loss) before income taxes $ $ $ $ ) Income tax expense Net income $ Amortization of intangibles $ $ — $ $ — $ Depreciation Property, plant and equipment additions Current assets $ $ $ $ $ Current liabilities Goodwill — — Total assets $ Presented below are summarized operating results and certain financial position data of the Company’s reportable business segments for the years ended January 31, 2016 and 2015. As above, the “Other” columns include the Company’s corporate and unallocated expenses. Year Ended January 31, 2016 Power Telecom Industrial Other Totals Revenues $ $ $ $ — $ Cost of revenues — Gross profit ) — Selling, general and administrative expenses Income (loss) from operations ) ) Other income, net — — Income (loss) before income taxes $ $ $ ) $ ) Income tax expense Net income $ Amortization of intangibles $ $ — $ $ — $ Depreciation Property, plant and equipment additions Goodwill $ $ — $ $ — $ Total assets Year Ended January 31, 2015 Power Telecom Other Totals Revenues $ $ $ — $ Cost of revenues — Gross profit — Selling, general and administrative expenses Income (loss) from operations ) Other income, net — Income (loss) before income taxes $ $ $ ) Income tax expense Net income $ Amortization of intangibles $ $ — $ — $ Depreciation Property, plant and equipment additions Goodwill $ $ — $ — $ Total assets |
QUARTERLY FINANCIAL INFORMATI36
QUARTERLY FINANCIAL INFORMATION (unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
QUARTERLY FINANCIAL INFORMATION (unaudited) | |
Schedule of Quarterly Financial Information | April 30 July 31 October 31 January 31 Full Year 2017 Revenues $ $ $ $ $ Gross profit Income from operations Net income Net income attributable to the stockholders of Argan, Inc. Earnings per share(1)(2) Basic $ $ $ $ $ Fully diluted $ $ $ $ $ 2016 Revenues $ $ $ $ $ Gross profit Income from operations Net income Net income attributable to the stockholders of Argan, Inc. Earnings per share(1)(2) Basic $ $ $ $ $ Fully diluted $ $ $ $ $ (1) The earnings per share amounts are attributable to the stockholders of Argan, Inc. (2) Earnings per share amounts for the quarter periods may not cross-foot to the corresponding full-year amounts as the amounts for each quarter are calculated independently of the calculations for the full-year amounts. |
DESCRIPTION OF THE BUSINESS A37
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2017USD ($)category | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Description of the Business | ||||||||||||
Revenues | $ 206,760 | $ 175,444 | $ 162,495 | $ 130,348 | $ 116,386 | $ 113,967 | $ 97,434 | $ 85,488 | $ 675,047 | $ 413,275 | $ 383,110 | |
Minimum | ||||||||||||
Description of the Business | ||||||||||||
Estimated useful lives of the assets | 5 years | |||||||||||
Maximum | ||||||||||||
Description of the Business | ||||||||||||
Estimated useful lives of the assets | 39 years | |||||||||||
Power industry services | ||||||||||||
Description of the Business | ||||||||||||
Unapproved change orders contract amount | $ 2,700 | $ 2,700 | ||||||||||
Number of categories | category | 2 | |||||||||||
Revenues | $ 586,628 | $ 387,636 | $ 376,676 | |||||||||
Power industry services | Minimum | ||||||||||||
Description of the Business | ||||||||||||
Revenue recognition period | 3 months | |||||||||||
Power industry services | Maximum | ||||||||||||
Description of the Business | ||||||||||||
Revenue recognition period | 3 years | |||||||||||
GPS | ||||||||||||
Description of the Business | ||||||||||||
Consolidated revenues by subsidiaries | 85.00% | 90.00% | 98.00% | |||||||||
Pending Litigation | Liquidated Damages | ||||||||||||
Description of the Business | ||||||||||||
Potential amount of damages sought by plaintiff at end of contract | $ 12,900 | |||||||||||
Core services | Power industry services | ||||||||||||
Description of the Business | ||||||||||||
Revenues | $ 586,628 | $ 383,378 | $ 376,676 | |||||||||
Project development success fees | Power industry services | ||||||||||||
Description of the Business | ||||||||||||
Revenues | $ 4,258 |
RECENTLY ISSUED ACCOUNTING PR38
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Recently issued accounting pronouncements | |||
Income tax expense (benefit) | $ 37,106 | $ 25,302 | $ 20,912 |
Deferred income tax liabilities, noncurrent | 954 | 224 | |
Accounting Standards Update ('ASU') 2016-09 - Reduction in income tax expense: Improvements to Employee Share-Based Payment Accounting | |||
Recently issued accounting pronouncements | |||
Income tax expense (benefit) | $ 5,000 | ||
Accounting Standards Update ("ASU") 2015-17 - Income Taxes: Balance Sheet Classification of Deferred Taxes | |||
Recently issued accounting pronouncements | |||
Deferred income tax liabilities, noncurrent | $ 1,100 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Millions | Dec. 04, 2015 | May 29, 2015 |
TRC | ||
Business Combinations | ||
Acquisition date | Dec. 4, 2015 | |
Cash held-back at closing and paid to the owners | $ 0.5 | |
Cash payments to retire outstanding debt and certain leases | $ 15.6 | |
APC | ||
Business Combinations | ||
Acquisition date | May 29, 2015 | |
Percentage of capital stock acquired | 100.00% | |
Acquisition related Share Purchase Agreement date | May 11, 2015 | |
Acquisition, purchase price Consideration | $ 11.1 | |
Cash held-back at closing and paid to the owners | $ 1.1 |
SPECIAL PURPOSE ENTITIES - Addi
SPECIAL PURPOSE ENTITIES - Additional Information (Details) - GPS | 12 Months Ended |
Jan. 31, 2017itemproject | |
Variable Interest Entity | |
Number of natural gas-fired power plants | project | 2 |
Number of joint ventures | item | 2 |
SPECIAL PURPOSE ENTITIES - Moxi
SPECIAL PURPOSE ENTITIES - Moxie Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | |
Variable Interest Entity | |||
Gain on deconsolidation | $ 349 | ||
Gemma Power, Inc. | |||
Variable Interest Entity | |||
Notes payable and accrued interest shared with supplier | $ 1,900 | ||
Development success fees paid | 1,700 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity | |||
Interest rate on loan receivable | 20.00% | ||
Accrued interest paid to GPI at closing | 600 | ||
Development success fee received | $ 4,300 | ||
Capitalized project costs | 4,900 | ||
Loan participation percentage of the supplier | 40.00% | ||
Cash received pursuant to participation agreement | $ 1,700 | ||
Interest rate on borrowings | 20.00% | ||
Percentage of development success fee to be shared with equipment seller, not yet earned | 40.00% | ||
The total amount of loans made to the VIE from inception of the arrangement plus accrued interest | $ 4,300 | ||
Gain on deconsolidation | $ 300 |
CASH, CASH EQUIVALENTS AND SH42
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Cash and Cash Equivalents | ||||
Weighted average annual interest rates on short-term investment CDs (as a percent) | 1.13% | 0.63% | ||
Cash, cash equivalents | $ 167,198 | $ 160,909 | $ 333,691 | $ 272,209 |
Joint Venture | ||||
Cash and Cash Equivalents | ||||
Cash, cash equivalents | $ 12,500 | |||
Held-to-maturity Securities | ||||
Cash and Cash Equivalents | ||||
Maturity period | 185 days | 174 days | ||
Accrued interest on held-to-maturity securities | $ 100 | $ 800 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
ACCOUNTS RECEIVABLE | ||
Contract payment amounts retained by project owners | $ 36.2 | $ 44.6 |
Provision for uncollectible accounts | 1.2 | |
Allowance for uncollectible accounts | 1.9 | |
APC | ||
ACCOUNTS RECEIVABLE | ||
Write-off a receivable | $ 0.8 |
COSTS, ESTIMATED EARNINGS AND44
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | ||
Costs charged to uncompleted contracts | $ 485,629 | $ 764,071 |
Estimated accrued earnings | 78,708 | 116,326 |
Contracts Receivables, Gross | 564,337 | 880,397 |
Less - billings to date | 770,386 | 982,182 |
Costs and estimated earnings in excess of billings | 3,192 | 4,078 |
Billings in excess of costs and estimated earnings | 209,241 | 105,863 |
Billings in excess of costs and estimated earnings on uncompleted contracts, net | (206,049) | $ (101,785) |
Retention payable | $ 17,200 |
PURCHASED INTANGIBLE ASSETS - G
PURCHASED INTANGIBLE ASSETS - Goodwill and Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Finite-Lived Intangible Assets | ||||
Goodwill | $ 34,913 | $ 37,405 | $ 18,476 | |
Goodwill allocated for income tax reporting purposes | 14,400 | |||
Percentage of contract backlog suspended | 90.00% | |||
Impairment loss | $ 1,979 | |||
Period of amortization of goodwill for income tax purpose | 15 years | |||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 11,854 | |||
Accumulated Amortization | 3,673 | 2,510 | 1,979 | |
Finite Lived Intangible Assets - Net Amount | 8,000 | |||
Intangible assets, net | 8,181 | 9,344 | ||
APC | ||||
Finite-Lived Intangible Assets | ||||
Impairment loss | 2,000 | 0 | $ 0 | |
GPS | ||||
Finite-Lived Intangible Assets | ||||
Goodwill | 18,500 | |||
TRC | ||||
Finite-Lived Intangible Assets | ||||
Goodwill | 14,400 | |||
APC | ||||
Finite-Lived Intangible Assets | ||||
Goodwill | $ 2,000 | |||
Trade names | GPS | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 15 years | |||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 3,643 | |||
Accumulated Amortization | 2,464 | |||
Finite Lived Intangible Assets - Net Amount | 1,179 | 1,421 | ||
Trade names | TRC | ||||
Finite-Lived Intangible Assets | ||||
Finite Lived Intangible Assets - Gross Carrying Amount | 4,499 | |||
Accumulated Amortization | 350 | |||
Finite Lived Intangible Assets - Net Amount | $ 4,149 | 4,499 | ||
Process certifications | TRC | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 7 years | |||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 1,897 | |||
Accumulated Amortization | 316 | |||
Finite Lived Intangible Assets - Net Amount | $ 1,581 | 1,852 | ||
Customer relationships | TRC | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 10 years | |||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 916 | |||
Accumulated Amortization | 107 | |||
Finite Lived Intangible Assets - Net Amount | $ 809 | 901 | ||
Customer relationships | APC | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 4 years | |||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 430 | |||
Accumulated Amortization | 167 | |||
Finite Lived Intangible Assets - Net Amount | 263 | 371 | ||
Other intangibles | ||||
Finite-Lived Intangible Assets | ||||
Finite Lived Intangible Assets - Gross Carrying Amount | 288 | |||
Accumulated Amortization | 269 | |||
Finite Lived Intangible Assets - Net Amount | $ 19 | $ 119 |
PURCHASED INTANGIBLE ASSETS - I
PURCHASED INTANGIBLE ASSETS - Indefinite Lived Intangible Assets - Trade Name (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Trade names | SMC | ||
Indefinite-Lived Intangible Assets | ||
Indefinite-lived Intangible Assets | $ 181 | $ 181 |
PURCHASED INTANGIBLE ASSETS -47
PURCHASED INTANGIBLE ASSETS - Intangible Assets Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Activity related to intangible assets, excluding goodwill | |||
Intangible assets, beginning of year | $ 11,854 | $ 3,824 | |
Intangible assets, end of year | 11,854 | 11,854 | $ 3,824 |
Accumulated amortization, beginning of year | 2,510 | 1,979 | |
Amortization expense | 1,163 | 531 | 243 |
Accumulated amortization, end of year | 3,673 | 2,510 | $ 1,979 |
Intangible assets, net | $ 8,181 | 9,344 | |
APC | |||
Activity related to intangible assets, excluding goodwill | |||
Addition | 543 | ||
TRC | |||
Activity related to intangible assets, excluding goodwill | |||
Addition | $ 7,487 |
PURCHASED INTANGIBLE ASSETS - F
PURCHASED INTANGIBLE ASSETS - Finite Lived Intangible Future Amortization Schedule (Details) $ in Thousands | Jan. 31, 2017USD ($) |
PURCHASED INTANGIBLE ASSETS | |
2,018 | $ 1,032 |
2,019 | 1,013 |
2,020 | 954 |
2,021 | 905 |
2,022 | 870 |
Thereafter | 3,226 |
Total | $ 8,000 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Property, plant and equipment | ||
Property and equipment, gross | $ 19,680 | $ 17,390 |
Less - accumulated depreciation | 6,568 | 5,082 |
Property, plant and equipment, net | 13,112 | 12,308 |
Land and improvements | ||
Property, plant and equipment | ||
Property and equipment, gross | 863 | 863 |
Buildings and improvements | ||
Property, plant and equipment | ||
Property and equipment, gross | 5,148 | 5,111 |
Furniture, machinery and equipment | ||
Property, plant and equipment | ||
Property and equipment, gross | 9,961 | 8,510 |
Trucks and other vehicles | ||
Property, plant and equipment | ||
Property and equipment, gross | $ 3,708 | $ 2,906 |
PROPERTY, PLANT AND EQUIPMENT50
PROPERTY, PLANT AND EQUIPMENT - Depreciation Expense and Cost of Maintenance and Repairs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Depreciation expense | $ 2,043 | $ 779 | $ 551 |
Costs of maintenance and repairs | $ 2,300 | $ 800 | $ 300 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Expires on August 31, 2017 | ||
Financing Arrangements | ||
Letters of credit outstanding amount | $ 400,000 | |
Revolving Credit Facility | ||
Financing Arrangements | ||
Borrowing available under financing arrangements | 10,000,000 | |
Borrowings outstanding under Bank financing arrangements | 0 | $ 0 |
Borrowing amount designated to cover letters of credit issued by Bank in support of project development activities | $ 3,000,000 | |
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||
Financing Arrangements | ||
Variable rate | 30-day LIBOR | |
Interest rate margin on referred rate | 2.00% |
COMMITMENTS - General Informati
COMMITMENTS - General Information (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017USD ($)item | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Commitments | |||
The number of option terms remaining | item | 1 | ||
The period of the option terms | 2 years | ||
Costs of Revenues | |||
Commitments | |||
Rent incurred on construction projects included in the costs of revenues | $ 13.2 | $ 15 | $ 14.4 |
Selling, General and Administrative Expenses | |||
Commitments | |||
Rent expense included in selling, general and administrative expenses of continuing operations | 0.6 | $ 0.3 | $ 0.2 |
TRC | |||
Commitments | |||
Annual lease amount for primary offices and plant | 0.3 | ||
APC | |||
Commitments | |||
Annual lease amount for primary offices and plant | $ 0.1 |
COMMITMENTS - Maturity Schedule
COMMITMENTS - Maturity Schedule (Details) $ in Thousands | Jan. 31, 2017USD ($) |
COMMITMENTS | |
2,018 | $ 712 |
2,019 | 448 |
2,020 | 231 |
2,021 | 133 |
2,022 | 116 |
Thereafter | 143 |
Total | $ 1,783 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Millions | Mar. 04, 2016USD ($) | Feb. 01, 2016USD ($)project | Jan. 31, 2017 |
Minimum | |||
Loss Contingencies | |||
Warranty period | 9 months | ||
Maximum | |||
Loss Contingencies | |||
Warranty period | 24 months | ||
PPS Engineers, Inc. claims lawsuit | Pending Litigation | |||
Loss Contingencies | |||
Amount of damages sought by plaintiff | $ 0.9 | ||
Number of significant project locations involved in the lawsuit | project | 1 | ||
Damages sought against bond of the project | $ 2.5 | ||
Counter claim amount sought | $ 2.2 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | Jan. 31, 2017 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares of common stock reserved for issuance | 1.2 | 1.2 | ||
Number of shares of common stock available for award | 0.4 | 0.4 | ||
Intrinsic value of the stock options exercised | $ 18,400 | $ 2,100 | $ 5,700 | |
Intrinsic value of outstanding stock options | $ 24,500 | 24,500 | ||
Intrinsic value of exercisable stock options | 20,300 | 20,300 | ||
Compensation expense | 2,344 | 2,374 | 2,017 | |
Unrecognized compensation cost | $ 3,100 | $ 3,100 | ||
Estimated expected life simplified method | P3Y4M6D | |||
Estimated expected life | P5Y6M | |||
Reduction in the aggregate fair value of stock option | $ 800 | |||
Percentage reduction in the aggregate fair value of stock option | 20.00% | |||
Period used for calculations | 5 years | |||
Company's expense for defined contribution savings plans | $ 1,900 | 1,500 | 1,100 | |
Stock Options Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | $ 2,300 | $ 2,400 | $ 2,000 | |
Method used for fair value assumption | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | |
Risk-free interest rate, minimum | 1.30% | 1.00% | 0.10% | |
Risk-free interest rate, maximum | 1.90% | 1.70% | 1.60% | |
Volatility rate, minimum | 33.30% | 33.90% | 29.90% | |
Volatility rate, maximum | 35.00% | 35.30% | 34.40% | |
ISOs | Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Period to become exercisable | 1 year | |||
ISOs | Stock Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Incentive stock option award maximum expiration period | 10 years | |||
NSOs | Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Period to become exercisable | 1 year | |||
NSOs | Stock Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Incentive stock option award maximum expiration period | 10 years |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
STOCK-BASED COMPENSATION | ||||
Shares, Outstanding, Beginning balance | 1,064 | 876 | 916 | |
Shares, Granted | 270 | 300 | 306 | |
Shares, Exercised | (622) | (106) | (346) | |
Shares, Forfeited | (5) | (6) | ||
Shares, Outstanding, Ending balance | 707 | 1,064 | 876 | 916 |
Shares, Exercisable | 437 | |||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 26.38 | $ 22.34 | $ 17.36 | |
Weighted Average Exercise Price, Granted | 57.88 | 34.70 | 21.09 | |
Weighted Average Exercise Price, Exercised | 25.57 | 17.10 | 15.61 | |
Weighted Average Exercise Price, Forfeited | 36.73 | 17.33 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 39.04 | $ 26.38 | $ 22.34 | $ 17.36 |
Weighted Average Exercise Price, Exercisable | $ 27.40 | |||
Weighted Average Remaining Term (Years), Outstanding | 7 years 9 months 26 days | 6 years 4 months 10 days | 7 years 29 days | 6 years 15 days |
Weighted Average Remaining Term (Years), Exercisable | 6 years 8 months 5 days | |||
Weighted Average Fair Value, Outstanding | $ 10.22 | $ 6.91 | $ 6.01 | $ 5.58 |
Weighted Average Fair Value, Exercisable | $ 7.31 |
STOCK-BASED COMPENSATION - Su57
STOCK-BASED COMPENSATION - Summary of Change in Number of Non-Vested Options to Purchase Shares of Common Stock (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
STOCK-BASED COMPENSATION | |||
Shares, Nonvested, Beginning balance | 300 | 306 | 303 |
Shares, Granted | 270 | 300 | 306 |
Shares, Vested | (300) | (306) | (303) |
Shares, Nonvested, Ending balance | 270 | 300 | 306 |
Weighted Average Fair Value, Nonvested, Beginning balance | $ 8.97 | $ 7.14 | $ 4.40 |
Weighted Average Fair Value, Granted | 14.93 | 8.97 | 7.14 |
Weighted Average Fair Value, Vested | 8.97 | 7.14 | 4.40 |
Weighted Average Fair Value, Nonvested, Ending balance | $ 14.93 | $ 8.97 | $ 7.14 |
STOCK-BASED COMPENSATION - Su58
STOCK-BASED COMPENSATION - Summary of Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) - Stock Options Plans | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Dividend yield | 1.40% | 2.00% | 3.50% |
Expected volatility | 34.60% | 34.80% | 33.70% |
Risk-free interest rate | 1.70% | 1.30% | 1.30% |
Expected life (in years) | 4 years 2 months 12 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
INCOME TAXES - Components of Co
INCOME TAXES - Components of Company's Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Current: | |||
Federal | $ 29,681 | $ 16,458 | $ 15,249 |
State | 6,188 | 5,423 | 4,767 |
Total | 35,869 | 21,881 | 20,016 |
Deferred: | |||
Federal | 1,277 | 2,950 | 788 |
State | (40) | 471 | 108 |
Total | 1,237 | 3,421 | 896 |
Income tax expense | $ 37,106 | $ 25,302 | $ 20,912 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
INCOME TAXES | |||
Federal corporate income tax rate | 35.00% | 35.00% | 35.00% |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Expected Income Tax Expense to Actual Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
INCOME TAXES | |||
Computed "expected" income tax expense | $ 40,086 | $ 26,427 | $ 22,528 |
State income taxes, net of federal benefit | 4,001 | 4,030 | 3,284 |
Stock option exercises | (4,969) | ||
Domestic production activities deduction | (2,906) | (1,635) | (1,504) |
Exclusion of noncontrolling interests | (2,484) | (4,823) | (4,582) |
Other permanent differences | 1,933 | 1,557 | 902 |
Adjustments and other differences | 1,445 | (254) | 284 |
Income tax expense | $ 37,106 | $ 25,302 | $ 20,912 |
INCOME TAXES - Schedule of Tax
INCOME TAXES - Schedule of Tax Effects of Temporary Differences that Gave Rise to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Assets: | ||
Net operating loss ("NOL") carryforwards | $ 3,487 | $ 3,345 |
Stock options | 1,594 | 2,354 |
Purchased intangibles | 1,592 | 2,233 |
Accrued expenses and others | 2,052 | 2,144 |
Total Assets | 8,725 | 10,076 |
Liabilities: | ||
Purchased intangibles | (4,428) | (4,375) |
Construction contracts | (2,862) | (3,681) |
Property and equipment and other | (2,389) | (2,244) |
Total Liabilities | (9,679) | (10,300) |
Net deferred tax liabilities | (954) | (224) |
Net operating losses | 7,900 | |
Prepaid income taxes | $ 3,900 | $ 3,300 |
EARNINGS PER SHARE ATTRIBUTAB63
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |||||||||||
Net income attributable to the stockholders of Argan, Inc. | $ 20,351 | $ 18,073 | $ 19,674 | $ 12,230 | $ 6,728 | $ 10,807 | $ 11,307 | $ 7,503 | $ 70,328 | $ 36,345 | $ 30,445 |
Weighted average number of shares outstanding - basic | 15,066 | 14,757 | 14,433 | ||||||||
Effect of stock options | 559 | 267 | 390 | ||||||||
Weighted average number of shares outstanding - diluted | 15,625 | 15,024 | 14,823 | ||||||||
Basic (in Dollars per share) | $ 1.33 | $ 1.19 | $ 1.32 | $ 0.82 | $ 0.45 | $ 0.73 | $ 0.77 | $ 0.51 | $ 4.67 | $ 2.46 | $ 2.11 |
Diluted (in Dollars per share) | $ 1.29 | $ 1.16 | $ 1.29 | $ 0.81 | $ 0.45 | $ 0.72 | $ 0.75 | $ 0.50 | $ 4.50 | $ 2.42 | $ 2.05 |
EARNINGS PER SHARE ATTRIBUTAB64
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Details 2) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |||
Numbers of antidilutive shares excluded from the diluted earnings per share computation | 165 | 180 | 40 |
CASH DIVIDENDS (Details)
CASH DIVIDENDS (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Jan. 31, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
CASH DIVIDENDS | ||||||
Cash dividend declared per common share | $ 0.70 | $ 0.70 | $ 1 | $ 0.70 | $ 0.70 | |
Dividend record date | Oct. 18, 2016 | |||||
Special Cash dividend declared per common share | $ 0.30 | $ 0.70 | ||||
Special Cash dividend paid per common share | $ 0.70 |
CONCENTRATIONS OF REVENUES AN66
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE (Details) - Customer Concentration Risk - customer | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Accounts Receivable | |||
Major Customers | |||
Number of major power industry service customers | 4 | 2 | |
Major Customer One | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 18.00% | ||
Major Customer One | Accounts Receivable | |||
Major Customers | |||
Percentage of major customers or segments | 27.00% | ||
Major Customer Two | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 17.00% | ||
Major Customer Two | Accounts Receivable | |||
Major Customers | |||
Percentage of major customers or segments | 27.00% | ||
Major Customer Three | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 17.00% | ||
Major Customer Four | Accounts Receivable | |||
Major Customers | |||
Percentage of consolidated accounts receivable accounted by major customer | 11.00% | ||
Power industry services | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 87.00% | 94.00% | 98.00% |
Number of major power industry service customers | 5 | 2 | 3 |
Power industry services | Major Customer One | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 20.00% | 38.00% | 45.00% |
Power industry services | Major Customer Two | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 18.00% | 35.00% | 41.00% |
Power industry services | Major Customer Three | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 17.00% | 12.00% | |
Power industry services | Major Customer Four | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 14.00% | ||
Power industry services | Major Customer Five | Revenue | |||
Major Customers | |||
Percentage of major customers or segments | 10.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2017USD ($)item | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Segment Reporting Information | |||||||||||
Operating segment | item | 1 | ||||||||||
Revenues | $ 206,760 | $ 175,444 | $ 162,495 | $ 130,348 | $ 116,386 | $ 113,967 | $ 97,434 | $ 85,488 | $ 675,047 | $ 413,275 | $ 383,110 |
Cost of revenues | 528,336 | 313,810 | 299,507 | ||||||||
Gross profit | 37,819 | 36,578 | 44,012 | 28,302 | 23,543 | 26,262 | 28,493 | 21,167 | 146,711 | 99,465 | 83,603 |
Selling, general and administrative expenses | 32,478 | 25,060 | 19,470 | ||||||||
Impairment loss | 1,979 | ||||||||||
Income (loss) from operations | 29,770 | 26,730 | 34,499 | 21,255 | 14,461 | 20,672 | 23,645 | 15,627 | 112,254 | 74,405 | 64,133 |
Other income, net | 2,278 | 1,101 | 234 | ||||||||
Income (loss) before income taxes | 114,532 | 75,506 | 64,367 | ||||||||
Income tax expense | 37,106 | 25,302 | 20,912 | ||||||||
Net income | 20,781 | $ 19,226 | $ 23,299 | $ 14,120 | 9,160 | $ 14,359 | $ 15,834 | $ 10,851 | 77,426 | 50,204 | 43,455 |
Amortization expense | 1,163 | 531 | 243 | ||||||||
Depreciation | 2,043 | 779 | 551 | ||||||||
Property, plant and equipment additions | 2,811 | 3,118 | 2,936 | ||||||||
Current assets | 587,949 | 350,612 | 587,949 | 350,612 | |||||||
Current liabilities | 350,724 | 187,712 | 350,724 | 187,712 | |||||||
Goodwill | 34,913 | 37,405 | 34,913 | 37,405 | 18,476 | ||||||
Total assets | 644,247 | 409,791 | 644,247 | 409,791 | 391,193 | ||||||
Power industry services | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 586,628 | 387,636 | 376,676 | ||||||||
Cost of revenues | 452,599 | 290,823 | 294,643 | ||||||||
Gross profit | 134,029 | 96,813 | 82,033 | ||||||||
Selling, general and administrative expenses | 17,588 | 15,303 | 11,930 | ||||||||
Impairment loss | 1,979 | ||||||||||
Income (loss) from operations | 114,462 | 81,510 | 70,103 | ||||||||
Other income, net | 2,145 | 827 | 231 | ||||||||
Income (loss) before income taxes | 116,607 | 82,337 | 70,334 | ||||||||
Amortization expense | 350 | 415 | 243 | ||||||||
Depreciation | 665 | 433 | 372 | ||||||||
Property, plant and equipment additions | 1,005 | 2,985 | 2,807 | ||||||||
Current assets | 461,086 | 461,086 | |||||||||
Current liabilities | 337,617 | 337,617 | |||||||||
Goodwill | 20,548 | 22,525 | 20,548 | 22,525 | 18,476 | ||||||
Total assets | 488,431 | 274,627 | 488,431 | 274,627 | 303,737 | ||||||
Telecommunications infrastructure services | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 9,425 | 10,379 | 6,434 | ||||||||
Cost of revenues | 7,383 | 7,460 | 4,864 | ||||||||
Gross profit | 2,042 | 2,919 | 1,570 | ||||||||
Selling, general and administrative expenses | 1,430 | 1,323 | 1,299 | ||||||||
Income (loss) from operations | 612 | 1,596 | 271 | ||||||||
Income (loss) before income taxes | 612 | 1,596 | 271 | ||||||||
Depreciation | 201 | 162 | 169 | ||||||||
Property, plant and equipment additions | 563 | 100 | 77 | ||||||||
Current assets | 3,399 | 3,399 | |||||||||
Current liabilities | 1,012 | 1,012 | |||||||||
Total assets | 4,318 | 1,885 | 4,318 | 1,885 | 2,293 | ||||||
Industrial fabrication and field services | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 78,994 | 15,260 | |||||||||
Cost of revenues | 68,354 | 15,527 | |||||||||
Gross profit | 10,640 | (267) | |||||||||
Selling, general and administrative expenses | 6,264 | 1,151 | |||||||||
Income (loss) from operations | 4,376 | (1,418) | |||||||||
Income (loss) before income taxes | 4,376 | (1,418) | |||||||||
Amortization expense | 813 | 116 | |||||||||
Depreciation | 1,165 | 172 | |||||||||
Property, plant and equipment additions | 1,238 | 28 | |||||||||
Current assets | 19,329 | 19,329 | |||||||||
Current liabilities | 10,335 | 10,335 | |||||||||
Goodwill | 14,365 | 14,880 | 14,365 | 14,880 | |||||||
Total assets | 47,316 | 52,436 | 47,316 | 52,436 | |||||||
Other | |||||||||||
Segment Reporting Information | |||||||||||
Selling, general and administrative expenses | 7,196 | 7,283 | 6,241 | ||||||||
Income (loss) from operations | (7,196) | (7,283) | (6,241) | ||||||||
Other income, net | 133 | 274 | 3 | ||||||||
Income (loss) before income taxes | (7,063) | (7,009) | (6,238) | ||||||||
Depreciation | 12 | 12 | 10 | ||||||||
Property, plant and equipment additions | 5 | 5 | 52 | ||||||||
Current assets | 104,135 | 104,135 | |||||||||
Current liabilities | 1,760 | 1,760 | |||||||||
Total assets | $ 104,182 | $ 80,843 | $ 104,182 | $ 80,843 | $ 85,163 |
QUARTERLY FINANCIAL INFORMATI68
QUARTERLY FINANCIAL INFORMATION (unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
QUARTERLY FINANCIAL INFORMATION (unaudited) | |||||||||||
Revenues | $ 206,760 | $ 175,444 | $ 162,495 | $ 130,348 | $ 116,386 | $ 113,967 | $ 97,434 | $ 85,488 | $ 675,047 | $ 413,275 | $ 383,110 |
Gross profit | 37,819 | 36,578 | 44,012 | 28,302 | 23,543 | 26,262 | 28,493 | 21,167 | 146,711 | 99,465 | 83,603 |
Income from operations | 29,770 | 26,730 | 34,499 | 21,255 | 14,461 | 20,672 | 23,645 | 15,627 | 112,254 | 74,405 | 64,133 |
Net income | 20,781 | 19,226 | 23,299 | 14,120 | 9,160 | 14,359 | 15,834 | 10,851 | 77,426 | 50,204 | 43,455 |
Net income attributable to the stockholders of Argan, Inc. | $ 20,351 | $ 18,073 | $ 19,674 | $ 12,230 | $ 6,728 | $ 10,807 | $ 11,307 | $ 7,503 | $ 70,328 | $ 36,345 | $ 30,445 |
Earnings per share | |||||||||||
Basic (in Dollars per share) | $ 1.33 | $ 1.19 | $ 1.32 | $ 0.82 | $ 0.45 | $ 0.73 | $ 0.77 | $ 0.51 | $ 4.67 | $ 2.46 | $ 2.11 |
Diluted (in Dollars per share) | $ 1.29 | $ 1.16 | $ 1.29 | $ 0.81 | $ 0.45 | $ 0.72 | $ 0.75 | $ 0.50 | $ 4.50 | $ 2.42 | $ 2.05 |