Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2017 | Dec. 01, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | ARGAN INC | |
Entity Central Index Key | 100,591 | |
Trading Symbol | AGX | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,548,719 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||
REVENUES | $ 232,945 | $ 175,444 | $ 723,237 | $ 468,287 |
Cost of revenues | 195,227 | 138,866 | 594,016 | 359,395 |
GROSS PROFIT | 37,718 | 36,578 | 129,221 | 108,892 |
Selling, general and administrative expenses | 10,119 | 9,848 | 30,408 | 24,429 |
Impairment loss (Note 7) | 1,979 | |||
INCOME FROM OPERATIONS | 27,599 | 26,730 | 98,813 | 82,484 |
Other income, net | 1,692 | 690 | 4,221 | 1,283 |
INCOME BEFORE INCOME TAXES | 29,291 | 27,420 | 103,034 | 83,767 |
Income tax expense | 12,062 | 8,194 | 37,738 | 27,122 |
NET INCOME | 17,229 | 19,226 | 65,296 | 56,645 |
Net income attributable to non-controlling interests | 1,153 | 303 | 6,668 | |
NET INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | 17,229 | 18,073 | 64,993 | 49,977 |
Foreign currency translation adjustments, net of tax | (139) | (326) | 754 | (192) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | $ 17,090 | $ 17,747 | $ 65,747 | $ 49,785 |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | ||||
Basic (in dollars per share) | $ 1.11 | $ 1.19 | $ 4.19 | $ 3.34 |
Diluted (in dollars per share) | $ 1.09 | $ 1.16 | $ 4.11 | $ 3.23 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
Basic (in shares) | 15,545 | 15,137 | 15,509 | 14,974 |
Diluted (in shares) | 15,793 | 15,601 | 15,796 | 15,490 |
CASH DIVIDENDS PER SHARE (Note 11) | $ 1 | $ 1 | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 149,708 | $ 167,198 |
Short-term investments | 333,973 | 355,796 |
Accounts receivable | 83,681 | 54,836 |
Costs and estimated earnings in excess of billings | 10,197 | 3,192 |
Prepaid expenses and other current assets | 6,236 | 6,927 |
TOTAL CURRENT ASSETS | 583,795 | 587,949 |
Property, plant and equipment, net | 15,257 | 13,112 |
Goodwill | 34,913 | 34,913 |
Other intangible assets, net | 7,405 | 8,181 |
Deferred taxes | 383 | 241 |
Other assets | 548 | 92 |
TOTAL ASSETS | 642,301 | 644,488 |
CURRENT LIABILITIES | ||
Accounts payable | 114,448 | 101,944 |
Accrued expenses | 31,005 | 39,539 |
Billings in excess of costs and estimated earnings | 146,863 | 209,241 |
TOTAL CURRENT LIABILITIES | 292,316 | 350,724 |
Deferred taxes | 1,788 | 1,195 |
TOTAL LIABILITIES | 294,104 | 351,919 |
COMMITMENTS AND CONTINGENCIES (Notes 8 and 9) | ||
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; 15,551,952 and 15,461,452 shares issued at October 31, 2017 and January 31, 2017, respectively; 15,548,719 and 15,458,219 shares outstanding at October 31, 2017 and January 31, 2017, respectively | 2,333 | 2,319 |
Additional paid-in capital | 141,766 | 135,426 |
Retained earnings | 204,095 | 154,649 |
Accumulated other comprehensive loss | (8) | (762) |
TOTAL STOCKHOLDERS' EQUITY | 348,186 | 291,632 |
Non-controlling interests | 11 | 937 |
TOTAL EQUITY | 348,197 | 292,569 |
TOTAL LIABILITIES AND EQUITY | $ 642,301 | $ 644,488 |
CONDENSED CONSOLIDATED BALANCE4
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 31, 2017 | Jan. 31, 2017 |
CONDENSED 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 | 15,551,952 | 15,461,452 |
Common stock, shares outstanding | 15,548,719 | 15,458,219 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 65,296 | $ 56,645 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities | ||
Stock option compensation expense | 3,573 | 1,774 |
Depreciation | 1,936 | 1,444 |
Amortization of purchased intangible assets | 776 | 752 |
Deferred income tax expense (benefit) | 475 | (1,693) |
Other | (317) | (119) |
Impairment loss | 1,979 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (31,453) | 21,304 |
Prepaid expenses and other assets | 758 | (1,432) |
Accounts payable and accrued expenses | 5,600 | 50,099 |
Billings in excess of costs and estimated earnings, net | (69,383) | 54,558 |
Net cash (used in) provided by operating activities | (22,739) | 185,311 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of short-term investments | (462,500) | (375,000) |
Maturities of short-term investments | 485,000 | 214,000 |
Purchases of property, plant and equipment | (4,006) | (2,481) |
Loans made under notes receivable | (200) | |
Net cash provided by (used in) investing activities | 18,294 | (163,481) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash dividends paid | (15,548) | (15,260) |
Proceeds from the exercise of stock options | 2,781 | 10,988 |
Distributions to joint venture partners | (1,229) | (7,500) |
Net cash used in financing activities | (13,996) | (11,772) |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 951 | (192) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (17,490) | 9,866 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 167,198 | 160,909 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 149,708 | 170,775 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | $ 36,922 | $ 26,364 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Oct. 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 condensed consolidated financial statements include the accounts of Argan, Inc. (“Argan”), its wholly owned subsidiaries and its financially controlled joint ventures. Argan conducts operations through its wholly owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”), which provided 89% and 83% of consolidated revenues for the nine months ended October 31, 2017 and 2016, respectively; The Roberts Company, Inc. (“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 APC represent our power industry services reportable segment. Through TRC, the industrial fabrication and field services reportable segment provides on-site 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, conducting business as SMC Infrastructure Solutions, 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 In Note 15, 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. All significant inter-company balances and transactions have been eliminated in consolidation. The deferred tax amounts included in the comparative balance sheet were reclassified to conform to the current year presentation. The Company’s fiscal year ends on January 31 of each year. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements, the notes thereto (including the summary of significant accounting policies), and the independent registered public accounting firm’s report thereon that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2017. The condensed consolidated balance sheet as of October 31, 2017, the condensed consolidated statements of earnings for the three and nine months ended October 31, 2017 and 2016, and the condensed consolidated statements of cash flows for the nine months ended October 31, 2017 and 2016 are unaudited. The condensed consolidated balance sheet as of January 31, 2017 has been derived from audited financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, considered necessary to present fairly the financial position of the Company as of October 31, 2017, and its earnings and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Revenue Recognition — Revenues are recognized primarily under various long-term contracts, including those for which revenues are based on either a fixed price, time and materials or cost-plus-fee basis, with typical durations of one month to three years. Revenues from fixed price 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 time and materials contracts are recognized when the related services are provided to the customer. Revenues from cost-plus-fee construction contracts are recognized on the basis of costs incurred during the period plus the amount of fee earned. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Unpriced 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. There were no significant unpriced change orders included in the total contract value amounts used to determine revenues as of October 31, 2017. Amounts of identified change orders that are not yet considered probable as of the corresponding balance sheet date are excluded from forecasted revenues. Actual costs related to change orders are expensed as they are incurred. Contract results may be impacted by estimates of the amounts of change orders that we expect to receive. The effects of any resulting revisions to revenues and estimated costs can be determined at any time and they could be material. In general, contract claims are reflected in revenues only when an agreement on the amount has been reached with the project owner. Fair Values — The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s cash and cash equivalents, short-term investments, accounts 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 reporting units (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. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Oct. 31, 2017 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 2 — RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS There is no recently issued accounting guidance that has not yet been adopted that the Company considers material to its condensed consolidated financial statements except for the following: Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a new standard on revenue recognition, Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), in order to create a principles-based revenue recognition framework that may affect nearly every revenue-generating entity. ASU 2014-09 and a series of related amending pronouncements issued by the FASB become effective for public companies for fiscal years beginning after December 15, 2017. As a result, the Company will be required to adopt the new standard effective February 1, 2018. The Company is completing its evaluation of the impacts of ASU 2014-09, as amended, on its consolidated financial statements. The Company expects to adopt the new standard using the allowable modified retrospective method which will result in a cumulative effect adjustment as of February 1, 2018. To date, the Company has examined an engineering, procurement and construction (“EPC”) contract of GPS that it believes is representative of the four other active EPC contracts of GPS, significant contracts that were awarded to TRC during the current year that the Company believes are representative of the large customer contracts that will be in place at the date of adoption, and the largest contract awarded to APC during the current year. Based on these reviews, it has come to preliminary conclusions on the impact of the new standard on the revenues of the Company using the 5-step process prescribed by ASU 2014-09, as amended. The Company does not believe that the adoption of the standard will have a significant impact on the revenue recognition patterns for its long-term contracts as compared to revenues recognized 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. The Company expects that most of its future revenues will continue to be recognized over time utilizing the cost-to-cost measure of progress similar to 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. Through the date of adoption, the Company will continue to evaluate the impacts of ASU 2014-09, as amended, on its large EPC and its smaller long-term contracts to ensure that its preliminary conclusions continue to remain accurate for future revenues. Additionally, the Company is continuing its assessment of the impact of ASU 2014-09, as amended, on its financial statement disclosures which are expected to be more extensive based on the requirements of the new standard. 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 presented 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 condensed consolidated financial statements, the Company has not yet determined the complete extent or significance of the changes. Goodwill In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment . Current guidance requires a public entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The amendments in the new pronouncement remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. As early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017, the Company intends to use the new guidance in the determination of any goodwill impairment loss determined in connection with the Company’s annual testing as of November 1, 2017, and in the future. The effect of the adoption of this new standard is not expected to be material to the Company’s consolidated financial statements. |
CONSTRUCTION JOINT VENTURES
CONSTRUCTION JOINT VENTURES | 9 Months Ended |
Oct. 31, 2017 | |
CONSTRUCTION JOINT VENTURES | |
CONSTRUCTION JOINT VENTURES | NOTE 3 — CONSTRUCTION JOINT VENTURES GPS assigned its EPC contracts for two natural gas-fired power plants 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 contracts. Final contractual completion of the two projects was achieved in October 2016 and December 2016, respectively. GPS has no significant remaining commitments under these arrangements 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 condensed 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. |
CASH, CASH EQUIVALENTS AND SHOR
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 9 Months Ended |
Oct. 31, 2017 | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | NOTE 4 — 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 October 31, 2017 and January 31, 2017 consisted solely of certificates of deposit purchased from Bank of America (the “Bank”) with weighted average initial maturities of 269 days and 185 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 October 31, 2017 and January 31, 2017 included accrued interest of $1.5 million and $0.8 million, respectively. Interest income is recorded when earned and is included in other income. As of October 31, 2017 and January 31, 2017, the weighted average annual interest rates of the CDs classified as short-term investments were 1.36% and 1.13%, respectively. The Company has cash on deposit in excess of federally insured limits at the Bank, has purchased CDs from the Bank, and has liquid mutual fund investments through an arrangement with the Bank. Management does not believe that maintaining substantially all such assets with the Bank represents a material risk. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Oct. 31, 2017 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 5 — ACCOUNTS RECEIVABLE Amounts retained by project owners under construction contracts and included in accounts receivable as of October 31, 2017 and January 31, 2017 were $65.0 million and $36.2 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 October 31, 2017 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 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 and notes receivable. The amount of the allowance for uncollectible accounts as of October 31, 2017 and January 31, 2017 was approximately $2.5 million and $1.9 million, respectively, and it related primarily to project development loans made in prior years. The provision amounts for uncollectible accounts for the three and nine months ended October 31, 2017 were $0.1 million and $0.4 million, respectively. The Company did not record a provision for uncollectible accounts for the three and nine months ended October 31, 2016. |
COSTS, ESTIMATED EARNINGS AND B
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | 9 Months Ended |
Oct. 31, 2017 | |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | NOTE 6 — 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 October 31, 2017 and January 31, 2017. October 31, January 31, Costs charged to uncompleted contracts $ $ Estimated accrued earnings Less - billings to date $ ) $ ) Amounts above are included in the accompanying condensed consolidated balance sheets under the following captions: October 31, January 31, Costs and estimated earnings in excess of billings $ $ Billings in excess of costs and estimated earnings $ ) $ ) Costs charged to contracts include amounts billed to the Company for delivered goods and services where payments have been retained from subcontractors and suppliers. Retained amounts as of October 31, 2017 and January 31, 2017, which were included in the Company’s balance of accounts payable as of those dates, totaled $34.6 million and $17.2 million, respectively. Generally, such amounts are expected to be paid prior to the completion of the applicable project. |
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS | 9 Months Ended |
Oct. 31, 2017 | |
PURCHASED INTANGIBLE ASSETS | |
PURCHASED INTANGIBLE ASSETS | NOTE 7 — PURCHASED INTANGIBLE ASSETS At October 31, 2017, the goodwill balances included in the condensed consolidated balance sheets related to the acquisitions of GPS, TRC and APC were $18.5 million, $14.4 million and $2.0 million, respectively. TRC’s management recently completed a reforecasting of its future financial results which provides essential data for the required annual goodwill assessment of TRC as of November 1, 2017. The new forecast presents a less favorable outlook for TRC, which represents the Company’s Industrial Fabrication and Field Services reportable business segment, than in the past. With this new information and using preliminary valuation analyses, including discounted net after tax cash flow estimates, management determined that the goodwill associated with this business may be impaired. Based on this currently available data, management estimates that the amount of possible loss ranges from an immaterial amount to $5.5 million, with the estimated federal income tax rate representing the most significant variable affecting the range. Depending on the completion of the goodwill assessment including the resolution of this uncertainty, the Company may be required to record an impairment loss related to the goodwill of TRC in the fourth quarter of the current year up to an amount of $5.5 million. However, the completion of the full valuation of the business of TRC could materially change this outcome. Last year, APC recorded a goodwill impairment loss during the nine months ended October 31, 2016 of approximately $2.0 million. The other purchased intangible assets consisted of the following elements as of October 31, 2017 and January 31, 2017. October 31, 2017 January 31, Estimated Gross Accumulated Net 2017 (net Trade names - GPS/TRC 15 years $ $ $ $ SMC indefinite — Process certifications - TRC 7 years Customer relationships - TRC/APC 4-10 years Other intangibles various Totals $ $ $ $ |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 9 Months Ended |
Oct. 31, 2017 | |
FINANCING ARRANGEMENTS | |
FINANCING ARRANGEMENTS | NOTE 8 — FINANCING ARRANGEMENTS The Company maintains financing arrangements with the Bank that are described in an Amended and Restated Replacement Credit Agreement (the “Credit Agreement”), dated May 15, 2017, which superseded the Company’s prior arrangements with the Bank. The Credit Agreement provides a revolving loan with a maximum borrowing amount of $50.0 million that is available until May 31, 2021 with interest at the 30-day LIBOR plus 2.00%. The Company may also use the borrowing ability to cover other credit instruments issued by the Bank for the Company’s use in the ordinary course of business. The Company has approximately $14.9 million of credit outstanding under the Credit Agreement, but no borrowings. The Company has pledged the majority of its assets to secure its 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. The Credit Agreement includes other terms, covenants and events of default that are customary for a credit facility of its size and nature. As of October 31 and January 31, 2017, the Company was compliant with the financial covenants of its financing arrangements. |
LEGAL MATTERS
LEGAL MATTERS | 9 Months Ended |
Oct. 31, 2017 | |
LEGAL MATTERS | |
LEGAL MATTERS | NOTE 9 — LEGAL MATTERS 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 condensed 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. 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 in the total amount of $2.3 million. PPS has placed liens on the property of the customers in several states 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 approximately $2.2 million. The amounts invoiced by PPS are accrued by TRC and the corresponding liability amount was included in accounts payable in the condensed consolidated balance sheets as of October 31, 2017 and January 31, 2017. TRC has not recorded an account receivable for the amounts it believes are owed to it by PPS. A mediation effort was attempted in 2016 but it was unproductive and an impasse was declared. The Company intends to continue to defend against the claim of PPS and to pursue its claims against PPS. 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. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Oct. 31, 2017 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 10 — STOCK-BASED COMPENSATION The Company’s board of directors may make awards under its 2011 Stock Plan (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 common 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 October 31, 2017, there were 1,061,650 shares of the Company’s common stock reserved for issuance under the Company’s stock option plans (including the Stock Plan and an expired predecessor plan), including 330,000 shares of the Company’s common stock available for future awards under the Stock Plan. Summaries of activity under the Company’s stock option plans for the nine months ended October 31, 2017 and 2016, along with corresponding weighted average per share amounts, are presented below (shares in thousands): Shares Exercise Remaining Fair Value Outstanding, February 1, 2017 $ 7.82 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, October 31, 2017 $ 7.59 $ Exercisable, October 31, 2017 $ 6.52 $ Shares Exercise Remaining Fair Value Outstanding, February 1, 2016 $ 6.36 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, October 31, 2016 $ 7.21 $ Exercisable, October 31, 2016 $ 6.55 $ The changes in the number of non-vested options to purchase shares of common stock for the nine months ended October 31, 2017 and 2016, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2017 $ Granted $ Vested ) $ Forfeited ) $ Non-vested, October 31, 2017 $ Shares Fair Value Non-vested, February 1, 2016 $ Granted $ Vested ) $ Non-vested, October 31, 2016 $ Compensation expense amounts related to stock options were $1.3 million and $0.5 million for the three months ended October 31, 2017 and 2016, respectively, and were $3.6 million and $1.8 million for the nine months ended October 31, 2017 and 2016, respectively. At October 31, 2017, there was $1.5 million in unrecognized compensation cost related to outstanding stock options. The Company expects to recognize the compensation expense for these awards over the next twelve months. The total intrinsic values of the stock options exercised during the nine months ended October 31, 2017 and 2016 were $3.1 million and $10.9 million, respectively. At October 31, 2017, the aggregate market values of the shares of common stock subject to outstanding and exercisable stock options that were “in-the-money” as of October 31, 2017 exceeded the aggregate exercise prices of such options by $18.7 million and $18.1 million, respectively. For companies with limited stock option exercise experience, 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, which the Company used to estimate the expected terms of its stock options awarded in prior years. However, the Company’s stock option exercise activity has become sufficient to provide it with a reasonable basis on which to estimate the expected life of newly awarded stock options. Accordingly, the estimated expected life used in the determination of stock options awarded so far in calendar year 2017 was 3.35 years. The simplified method would have resulted in the use of 5.50 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 $1.2 million, or approximately 19%. The effect of the change on the amount of stock option compensation expense recorded during the three and nine months ended October 31, 2017 were reductions of $0.3 million and $0.8 million, respectively. The fair values of each stock option granted in the nine-month periods ended October 31, 2017 and 2016 were estimated on the corresponding dates of award using the Black-Scholes option-pricing model based on the following weighted average assumptions: Nine Months Ended October 31, 2017 2016 Dividend yield % % Expected volatility % % Risk-free interest rate % % Expected life (in years) |
CASH DIVIDENDS
CASH DIVIDENDS | 9 Months Ended |
Oct. 31, 2017 | |
CASH DIVIDENDS | |
CASH DIVIDENDS | NOTE 11 — CASH DIVIDENDS In September 2017, the Company’s board of directors declared a regular cash dividend of $1.00 per share of common stock, which was paid on October 31, 2017 to stockholders of record at the close of business on October 20, 2017. In addition, the Company announced that its board of directors intends to declare a regular quarterly cash dividend of $0.25 per share of common stock starting in the first quarter of its fiscal year ending January 31, 2019. 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. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 31, 2017 | |
INCOME TAXES | |
INCOME TAXES | NOTE 12 — INCOME TAXES The Company’s income tax expense amounts for the nine months ended October 31, 2017 and 2016 differed from corresponding amounts computed by applying the federal corporate income tax rate of 35% to the amounts of income before income taxes for the periods as shown in the table below. Nine Months Ended October 31, 2017 2016 Computed expected income tax expense $ $ Increase (decrease) resulting from: State income taxes, net of federal tax benefit Domestic production activities deduction ) ) Stock option exercises ) ) Exclusion of non-controlling interests ) ) Adjustments and other differences $ $ As of October 31, 2017 and January 31, 2017, the condensed consolidated balance sheets included prepaid income taxes in the amounts of $3.5 million and $3.9 million, respectively. As of October 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, the United Kingdom and 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, 2014 except for a few notable exceptions relevant to the Company including the Republic of Ireland, the United Kingdom, California and Texas where the open periods are one year longer. The Company received notice from Internal Revenue Service on November 7, 2017 that its federal consolidated tax return for the tax year ended January 31, 2016 has been selected for audit. At this time, the Company does not have reason to expect any material changes to its income tax liability resulting from the outcome of this audit. |
EARNINGS PER SHARE ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | 9 Months Ended |
Oct. 31, 2017 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | NOTE 13 — EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. Reconciliations of the number of weighted average basic shares outstanding to the number of weighted average diluted shares outstanding and the computations of basic and diluted earnings per share for the three and nine months ended October 31, 2017 and 2016 are as follows (shares in thousands): Three Months Ended October 31, 2017 2016 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 $ $ Nine Months Ended October 31, 2017 2016 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) Antidilutive shares excluded from the diluted computations were 155,000 for the three and nine months ended October 31, 2017. The comparable numbers for the prior year were not material. |
CONCENTRATIONS OF REVENUES AND
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE | 9 Months Ended |
Oct. 31, 2017 | |
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE | |
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE | NOTE 14 — CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE During the three and nine months ended October 31, 2017 and 2016, the majority of the Company’s consolidated revenues related to performance by the power industry services segment which provided 91% and 86% of consolidated revenues for the three months ended October 31, 2017 and 2016, respectively, and 92% and 86% of consolidated revenues for the nine months ended October 31, 2017 and 2016, respectively. The Company’s significant customer relationships for the three months ended October 31, 2017 included three power industry service customers which accounted for approximately 36%, 24% and 13% of consolidated revenues, respectively. The Company’s significant customer relationships for the three months ended October 31, 2016 included four customers which accounted for approximately 21%, 19%, 18% and 15% of consolidated revenues, respectively. The Company’s significant customer relationships for the nine months ended October 31, 2017 included four power industry service customers which accounted for approximately 29%, 27%, 16% and 14% of consolidated revenues, respectively. The Company’s significant customer relationships for the nine months ended October 31, 2016 included five customers which accounted for approximately 17%, 16%, 16%, 14% and 14% of consolidated revenues, respectively. Accounts receivable balances from four major customers as of October 31, 2017 represented 22%, 22%, 16% and 15% of the corresponding condensed consolidated balance as of October 31, 2017, and accounts receivable balances from four major customers represented 18%, 17%, 17% and 11% of the corresponding consolidated balance as of January 31, 2017. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Oct. 31, 2017 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 15 — 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, talents and services, and may include more than one operating segment. The intersegment revenues of our operations, and the related cost of revenues, are netted against the corresponding amounts of the segment receiving the intersegment services. For the three and nine months ended October 31, 2017, intersegment revenues totaled approximately $0.2 million and $1.8 million, respectively. For the three and nine months ended October 31, 2016, intersegment revenues were insignificant. Intersegment revenues for the aforementioned periods related to services provided by our industrial fabrication and field services segment to our power industry services segment. Presented below are summarized operating results and certain financial position data of the Company’s reportable business segments for the three and nine months ended October 31, 2017 and 2016. The “Other” column in each summary includes the Company’s corporate and unallocated expenses. Three Months Ended Power Industrial 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions — Current assets $ $ $ $ $ Current liabilities Goodwill — — Total assets Three Months Ended Power Industrial 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions — Current assets $ $ $ $ $ Current liabilities Goodwill — — Total assets Nine Months Ended Power Industrial 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions Nine Months Ended Power Industrial Telecom 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions |
DESCRIPTION OF THE BUSINESS A21
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Oct. 31, 2017 | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
Description of the Business | Description of the Business The condensed consolidated financial statements include the accounts of Argan, Inc. (“Argan”), its wholly owned subsidiaries and its financially controlled joint ventures. Argan conducts operations through its wholly owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”), which provided 89% and 83% of consolidated revenues for the nine months ended October 31, 2017 and 2016, respectively; The Roberts Company, Inc. (“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 APC represent our power industry services reportable segment. Through TRC, the industrial fabrication and field services reportable segment provides on-site 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, conducting business as SMC Infrastructure Solutions, 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 | Basis of Presentation In Note 15, 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. All significant inter-company balances and transactions have been eliminated in consolidation. The deferred tax amounts included in the comparative balance sheet were reclassified to conform to the current year presentation. The Company’s fiscal year ends on January 31 of each year. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements, the notes thereto (including the summary of significant accounting policies), and the independent registered public accounting firm’s report thereon that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2017. The condensed consolidated balance sheet as of October 31, 2017, the condensed consolidated statements of earnings for the three and nine months ended October 31, 2017 and 2016, and the condensed consolidated statements of cash flows for the nine months ended October 31, 2017 and 2016 are unaudited. The condensed consolidated balance sheet as of January 31, 2017 has been derived from audited financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, considered necessary to present fairly the financial position of the Company as of October 31, 2017, and its earnings and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. |
Revenue Recognition | Revenue Recognition — Revenues are recognized primarily under various long-term contracts, including those for which revenues are based on either a fixed price, time and materials or cost-plus-fee basis, with typical durations of one month to three years. Revenues from fixed price 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 time and materials contracts are recognized when the related services are provided to the customer. Revenues from cost-plus-fee construction contracts are recognized on the basis of costs incurred during the period plus the amount of fee earned. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Unpriced 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. There were no significant unpriced change orders included in the total contract value amounts used to determine revenues as of October 31, 2017. Amounts of identified change orders that are not yet considered probable as of the corresponding balance sheet date are excluded from forecasted revenues. Actual costs related to change orders are expensed as they are incurred. Contract results may be impacted by estimates of the amounts of change orders that we expect to receive. The effects of any resulting revisions to revenues and estimated costs can be determined at any time and they could be material. In general, contract claims are reflected in revenues only when an agreement on the amount has been reached with the project owner. |
Fair Values | Fair Values — The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s cash and cash equivalents, short-term investments, accounts 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 reporting units (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. |
COSTS, ESTIMATED EARNINGS AND22
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | |
Aggregate amount of costs charged 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 October 31, 2017 and January 31, 2017. October 31, January 31, Costs charged to uncompleted contracts $ $ Estimated accrued earnings Less - billings to date $ ) $ ) Amounts above are included in the accompanying condensed consolidated balance sheets under the following captions: October 31, January 31, Costs and estimated earnings in excess of billings $ $ Billings in excess of costs and estimated earnings $ ) $ ) |
PURCHASED INTANGIBLE ASSETS (Ta
PURCHASED INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
PURCHASED INTANGIBLE ASSETS | |
Schedule of Company's other purchased intangible assets | October 31, 2017 January 31, Estimated Gross Accumulated Net 2017 (net Trade names - GPS/TRC 15 years $ $ $ $ SMC indefinite — Process certifications - TRC 7 years Customer relationships - TRC/APC 4-10 years Other intangibles various Totals $ $ $ $ |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
STOCK-BASED COMPENSATION | |
Schedule of activity under the Company's stock option plans | Summaries of activity under the Company’s stock option plans for the nine months ended October 31, 2017 and 2016, along with corresponding weighted average per share amounts, are presented below (shares in thousands): Shares Exercise Remaining Fair Value Outstanding, February 1, 2017 $ 7.82 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, October 31, 2017 $ 7.59 $ Exercisable, October 31, 2017 $ 6.52 $ Shares Exercise Remaining Fair Value Outstanding, February 1, 2016 $ 6.36 $ Granted $ Exercised ) $ Forfeited ) $ Outstanding, October 31, 2016 $ 7.21 $ Exercisable, October 31, 2016 $ 6.55 $ |
Schedule of changes in the 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 nine months ended October 31, 2017 and 2016, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2017 $ Granted $ Vested ) $ Forfeited ) $ Non-vested, October 31, 2017 $ Shares Fair Value Non-vested, February 1, 2016 $ Granted $ Vested ) $ Non-vested, October 31, 2016 $ |
Summary of assumptions used to estimate fair value of stock options granted | Nine Months Ended October 31, 2017 2016 Dividend yield % % Expected volatility % % Risk-free interest rate % % Expected life (in years) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
INCOME TAXES | |
Schedule of actual income tax expense amounts | Nine Months Ended October 31, 2017 2016 Computed expected income tax expense $ $ Increase (decrease) resulting from: State income taxes, net of federal tax benefit Domestic production activities deduction ) ) Stock option exercises ) ) Exclusion of non-controlling interests ) ) Adjustments and other differences $ $ |
EARNINGS PER SHARE ATTRIBUTAB26
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |
Schedule of computations of basic and diluted earnings per share | Reconciliations of the number of weighted average basic shares outstanding to the number of weighted average diluted shares outstanding and the computations of basic and diluted earnings per share for the three and nine months ended October 31, 2017 and 2016 are as follows (shares in thousands): Three Months Ended October 31, 2017 2016 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 $ $ Nine Months Ended October 31, 2017 2016 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) Antidilutive shares excluded from the diluted computations were 155,000 for the three and nine months ended October 31, 2017. The comparable numbers for the prior year were not material. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
SEGMENT REPORTING | |
Schedule of operating results and certain financial position data of the Company's reportable business segments | Three Months Ended Power Industrial 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions — Current assets $ $ $ $ $ Current liabilities Goodwill — — Total assets Three Months Ended Power Industrial 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions — Current assets $ $ $ $ $ Current liabilities Goodwill — — Total assets Nine Months Ended Power Industrial 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions Nine Months Ended Power Industrial Telecom 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 purchased intangible assets $ $ $ — $ — $ Depreciation Property, plant and equipment additions |
DESCRIPTION OF THE BUSINESS A28
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Description of the Business | ||
Unapproved change orders contract amount | $ 0 | |
Power Services | Minimum | ||
Description of the Business | ||
Revenue recognition period | 1 month | |
Power Services | Maximum | ||
Description of the Business | ||
Revenue recognition period | 3 years | |
GPS | ||
Description of the Business | ||
Consolidated revenues by subsidiaries | 89.00% | 83.00% |
RECENTLY ISSUED ACCOUNTING PR29
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) | 1 Months Ended |
May 31, 2014contract | |
Accounting Standards Update 2014-09 - Revenue from Contracts with Customers | |
Revenue Recognition | |
Number of active EPC contracts of GPS | 4 |
CONSTRUCTION JOINT VENTURES (De
CONSTRUCTION JOINT VENTURES (Details) - GPS | 9 Months Ended |
Oct. 31, 2017itemproject | |
Variable Interest Entity | |
Number of natural gas-fired power plants | project | 2 |
Number of joint ventures | item | 2 |
CASH, CASH EQUIVALENTS AND SH31
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - Held-to-maturity Securities - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2017 | |
Cash and Cash Equivalents | ||
Maturity period | 269 days | 185 days |
Accrued interest | $ 1.5 | $ 0.8 |
Weighted average annual interest rate on short-term investment CDs (as a percent) | 1.36% | 1.13% |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2017 | Jan. 31, 2017 | |
ACCOUNTS RECEIVABLE | |||
Contract payment amounts retained by project owners | $ 65 | $ 65 | $ 36.2 |
Allowance for uncollectible accounts | 2.5 | 2.5 | $ 1.9 |
Provision for uncollectible accounts | $ 0.1 | $ 0.4 |
COSTS, ESTIMATED EARNINGS AND33
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | ||
Costs charged to uncompleted contracts | $ 1,074,974 | $ 485,629 |
Estimated accrued earnings | 177,065 | 78,708 |
Contracts receivables, gross | 1,252,039 | 564,337 |
Less - billings to date | 1,388,705 | 770,386 |
Billings in excess of costs and estimated earnings on uncompleted contracts, net | (136,666) | (206,049) |
Costs and estimated earnings in excess of billings | 10,197 | 3,192 |
Billings in excess of costs and estimated earnings | 146,863 | 209,241 |
Retention payable | $ 34,600 | $ 17,200 |
PURCHASED INTANGIBLE ASSETS - G
PURCHASED INTANGIBLE ASSETS - Goodwill and Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Finite-Lived Intangible Assets | ||||
Intangible Assets, Gross Amount | $ 11,612 | $ 11,612 | ||
Accumulated amortization | 4,207 | 4,207 | ||
Intangible Assets - Net Amount | 7,405 | 7,405 | $ 8,181 | |
Indefinite-Lived Intangible Assets | ||||
Goodwill | 34,913 | 34,913 | $ 34,913 | 34,913 |
Impairment loss | 1,979 | |||
TRC | ||||
Indefinite-Lived Intangible Assets | ||||
Estimated Possible Goodwill Impairment Loss | 5,500 | |||
APC | ||||
Indefinite-Lived Intangible Assets | ||||
Impairment loss | $ 2,000 | |||
GPS | ||||
Indefinite-Lived Intangible Assets | ||||
Goodwill | 18,500 | 18,500 | 18,500 | |
TRC | ||||
Indefinite-Lived Intangible Assets | ||||
Goodwill | 14,400 | 14,400 | 14,400 | |
APC | ||||
Indefinite-Lived Intangible Assets | ||||
Goodwill | 2,000 | $ 2,000 | 2,000 | |
Trade Name | GPS/TRC | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 15 years | |||
Finite Lived Intangible Assets - Gross Amount | 8,142 | $ 8,142 | ||
Accumulated amortization | 3,221 | 3,221 | ||
Finite Lived Intangible Assets - Net Amount | 4,921 | $ 4,921 | 5,328 | |
Process certifications | TRC | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 7 years | |||
Finite Lived Intangible Assets - Gross Amount | 1,897 | $ 1,897 | ||
Accumulated amortization | 520 | 520 | ||
Finite Lived Intangible Assets - Net Amount | 1,377 | 1,377 | 1,581 | |
Customer Relationships | TRC/APC | ||||
Finite-Lived Intangible Assets | ||||
Finite Lived Intangible Assets - Gross Amount | 1,346 | 1,346 | ||
Accumulated amortization | 423 | 423 | ||
Finite Lived Intangible Assets - Net Amount | 923 | $ 923 | 1,072 | |
Customer Relationships | TRC/APC | Minimum | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 4 years | |||
Customer Relationships | TRC/APC | Maximum | ||||
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets - Estimated Useful Life | 10 years | |||
Other intangibles | ||||
Finite-Lived Intangible Assets | ||||
Finite Lived Intangible Assets - Gross Amount | 46 | $ 46 | ||
Accumulated amortization | 43 | 43 | ||
Finite Lived Intangible Assets - Net Amount | $ 3 | $ 3 | $ 19 |
PURCHASED INTANGIBLE ASSETS - I
PURCHASED INTANGIBLE ASSETS - Indefinite Lived Intangible Assets - Trade Name (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
SMC | ||
Indefinite-Lived Intangible Assets | ||
Indefinite-lived Intangible Assets | $ 181 | $ 181 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions | May 15, 2017 | Oct. 31, 2017 |
Revolving Credit Facility | ||
Financing Arrangements | ||
Borrowing available under financing arrangements | $ 50 | |
Letter of Credit | ||
Financing Arrangements | ||
Letters of credit outstanding amount | $ 14.9 | |
Borrowings outstanding under bank financing arrangements | $ 0 | |
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||
Financing Arrangements | ||
Variable rate | 30-day LIBOR | |
Interest rate margin on referred rate | 2.00% |
LEGAL MATTERS (Details)
LEGAL MATTERS (Details) - PPS Engineers, Inc. claims lawsuit - Pending Litigation $ in Millions | Mar. 04, 2016USD ($) | Feb. 01, 2016USD ($)project |
Loss Contingencies | ||
Amount of damages sought by plaintiff | $ 2.3 | |
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 | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Intrinsic value of outstanding stock options | $ 18,700 | $ 18,700 | ||
Intrinsic value of exercisable stock options | 18,100 | 18,100 | ||
Compensation expense | 3,573 | $ 1,774 | ||
Reduction in the aggregate fair value of stock option | $ 1,200 | |||
Percentage reduction in the aggregate fair value of stock option | 19.00% | |||
Reduction in stock option compensation expense | $ 300 | $ 800 | ||
Estimated expected life simplified method | P3Y4M6D | |||
Estimated expected life | P5Y6M | |||
Stock Options Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares of common stock reserved for issuance | 1,061,650 | 1,061,650 | ||
Compensation expense | $ 1,300 | $ 500 | $ 3,600 | 1,800 |
Intrinsic value of the stock options exercised | 3,100 | $ 10,900 | ||
Unrecognized compensation cost | $ 1,500 | $ 1,500 | ||
Compensation expense recognize, period | 12 months | |||
Method used for fair value assumption | Black-Scholes option-pricing model | Black-Scholes option-pricing model | ||
Stock Options Plans | Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares of common stock available for award | 330,000 | 330,000 | ||
ISOs | Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Incentive stock option award maximum expiration period | 10 years | |||
Period to become exercisable | 1 year | |||
NSOs | Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Incentive stock option award maximum expiration period | 10 years | |||
Period to become exercisable | 1 year |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands | Jan. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2016 |
STOCK-BASED COMPENSATION | ||||
Shares, Outstanding, Beginning balance | 707 | 1,064 | ||
Shares, Granted | 125 | 105 | ||
Shares, Exercised | (90) | (444) | ||
Shares, Forfeited | (10) | (5) | ||
Shares, Outstanding, Ending balance | 707 | 732 | 720 | 1,064 |
Shares, Exercisable | 452 | 555 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 39.04 | $ 26.38 | ||
Weighted Average Exercise Price, Granted | 63.58 | 36.09 | ||
Weighted Average Exercise Price, Exercised | 30.74 | 24.77 | ||
Weighted Average Exercise Price, Forfeited | 71.75 | 36.73 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | $ 39.04 | 43.81 | 28.71 | $ 26.38 |
Weighted Average Exercise Price, Exercisable | $ 28.75 | $ 27.13 | ||
Weighted Average Remaining Term, Outstanding | 7 years 9 months 26 days | 7 years 7 months 2 days | 7 years 2 months 16 days | 6 years 4 months 10 days |
Weighted Average Remaining Term, Exercisable | 6 years 6 months 7 days | 6 years 6 months 18 days | ||
Weighted Average Fair Value, Outstanding | $ 10.22 | $ 11.61 | $ 7.62 | $ 6.91 |
Weighted Average Fair Value, Exercisable | $ 7.76 | $ 7.16 |
STOCK-BASED COMPENSATION - Su40
STOCK-BASED COMPENSATION - Summary of Change in Number of Non-Vested Options to Purchase Shares of Common Stock (Details) - $ / shares shares in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
STOCK-BASED COMPENSATION | ||
Shares, Non-vested, Beginning balance | 270 | 300 |
Shares, Granted | 125 | 105 |
Shares, Vested | (105) | (240) |
Shares, Forfeited | (10) | |
Shares, Non-vested, Ending balance | 280 | 165 |
Weighted Average Fair Value, Non-vested, Beginning balance | $ 14.93 | $ 8.97 |
Weighted Average Fair Value, Granted | 16.19 | 9.66 |
Weighted Average Fair Value, Vested | 9.66 | 7.63 |
Weighted Average Fair Value, Forfeited | 19.14 | |
Weighted Average Fair Value, Non-vested, Ending balance | $ 17.83 | $ 9.17 |
STOCK-BASED COMPENSATION - Su41
STOCK-BASED COMPENSATION - Summary of Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) - Stock Options Plans | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Dividend yield | 1.10% | 2.00% |
Expected volatility | 36.00% | 33.90% |
Risk-free interest rate | 1.60% | 1.40% |
Expected life (in years) | 3 years 4 months 24 days | 5 years 6 months |
CASH DIVIDENDS (Details)
CASH DIVIDENDS (Details) - $ / shares | Oct. 31, 2017 | Oct. 28, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 |
CASH DIVIDENDS | ||||||||
Regular cash dividend declared per common stock | $ 1 | $ 0.70 | $ 1 | $ 1 | $ 1 | $ 1 | ||
Regular cash dividend paid per common stock | $ 1 | $ 0.70 | ||||||
Dividend record date | Oct. 20, 2017 | Oct. 18, 2016 | ||||||
Regular quarterly cash dividend declared per common stock | $ 0.25 | |||||||
Special cash dividend declared per common stock | $ 0.30 | |||||||
Special cash dividend paid per common stock | $ 0.30 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
INCOME TAXES | |||
Federal corporate income tax rate | 35.00% | 35.00% | |
Prepaid income taxes | $ 3.5 | $ 3.9 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Expected Income Tax Expense to Actual Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
INCOME TAXES | ||||
Computed expected income tax expense | $ 36,062 | $ 29,318 | ||
State income taxes, net of federal tax benefit | 4,633 | 3,296 | ||
Domestic production activities deduction | (3,036) | (2,345) | ||
Stock option exercises | (866) | (2,807) | ||
Exclusion of non-controlling interests | (106) | (2,334) | ||
Adjustments and other differences | 1,051 | 1,994 | ||
Income tax expense | $ 12,062 | $ 8,194 | $ 37,738 | $ 27,122 |
EARNINGS PER SHARE ATTRIBUTAB45
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | ||||
Net income attributable to the stockholders of Argan, Inc. | $ 17,229 | $ 18,073 | $ 64,993 | $ 49,977 |
Weighted average number of shares outstanding - basic | 15,545 | 15,137 | 15,509 | 14,974 |
Effect of stock options | 248 | 464 | 287 | 516 |
Weighted average number of shares outstanding - diluted | 15,793 | 15,601 | 15,796 | 15,490 |
Basic (in dollars per share) | $ 1.11 | $ 1.19 | $ 4.19 | $ 3.34 |
Diluted (in dollars per share) | $ 1.09 | $ 1.16 | $ 4.11 | $ 3.23 |
EARNINGS PER SHARE ATTRIBUTAB46
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. - Antidilutive Shares (Details) - shares | 3 Months Ended | 9 Months Ended |
Oct. 31, 2017 | Oct. 31, 2017 | |
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | ||
Antidilutive shares excluded from the diluted earnings per share computation | 155,000 | 155,000 |
CONCENTRATIONS OF REVENUES AN47
CONCENTRATIONS OF REVENUES AND ACCOUNTS RECEIVABLE (Details) - customer | Jan. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 |
Accounts Receivable | ||||||
Major Customers | ||||||
Number of major power industry service customers | 4 | 4 | ||||
Major Customer One | Accounts Receivable | ||||||
Major Customers | ||||||
Percentage of consolidated accounts receivable accounted by major customer | 22.00% | 18.00% | ||||
Major Customer Two | Accounts Receivable | ||||||
Major Customers | ||||||
Percentage of consolidated accounts receivable accounted by major customer | 22.00% | 17.00% | ||||
Major Customer Three | Accounts Receivable | ||||||
Major Customers | ||||||
Percentage of consolidated accounts receivable accounted by major customer | 16.00% | 17.00% | ||||
Major Customer Four | Accounts Receivable | ||||||
Major Customers | ||||||
Percentage of consolidated accounts receivable accounted by major customer | 15.00% | 11.00% | ||||
Power Services | Revenue | ||||||
Major Customers | ||||||
Percentage of major customers or segments | 91.00% | 86.00% | 92.00% | 86.00% | ||
Number of major power industry service customers | 3 | 4 | 4 | 5 | ||
Power Services | Major Customer One | Revenue | ||||||
Major Customers | ||||||
Percentage of major customers or segments | 36.00% | 21.00% | 29.00% | 17.00% | ||
Power Services | Major Customer Two | Revenue | ||||||
Major Customers | ||||||
Percentage of major customers or segments | 24.00% | 19.00% | 27.00% | 16.00% | ||
Power Services | Major Customer Three | Revenue | ||||||
Major Customers | ||||||
Percentage of major customers or segments | 13.00% | 18.00% | 16.00% | 16.00% | ||
Power Services | Major Customer Four | Revenue | ||||||
Major Customers | ||||||
Percentage of major customers or segments | 15.00% | 14.00% | 14.00% | |||
Power Services | Major Customer Five | Revenue | ||||||
Major Customers | ||||||
Percentage of major customers or segments | 14.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Segment Reporting Information | |||||
Revenues | $ 232,945 | $ 175,444 | $ 723,237 | $ 468,287 | |
Cost of revenues | 195,227 | 138,866 | 594,016 | 359,395 | |
GROSS PROFIT | 37,718 | 36,578 | 129,221 | 108,892 | |
Selling, general and administrative expenses | 10,119 | 9,848 | 30,408 | 24,429 | |
Impairment loss | 1,979 | ||||
INCOME FROM OPERATIONS | 27,599 | 26,730 | 98,813 | 82,484 | |
Other income, net | 1,692 | 690 | 4,221 | 1,283 | |
INCOME BEFORE INCOME TAXES | 29,291 | 27,420 | 103,034 | 83,767 | |
Income tax expense | 12,062 | 8,194 | 37,738 | 27,122 | |
NET INCOME | 17,229 | 19,226 | 65,296 | 56,645 | |
Amortization of purchased intangible assets | 258 | 232 | 776 | 752 | |
Depreciation | 726 | 525 | 1,936 | 1,444 | |
Property, plant and equipment additions | 1,204 | 868 | 4,006 | 2,481 | |
Current assets | 583,795 | 499,970 | 583,795 | 499,970 | $ 587,949 |
Current liabilities | 292,316 | 290,533 | 292,316 | 290,533 | 350,724 |
Goodwill | 34,913 | 34,913 | 34,913 | 34,913 | 34,913 |
Total assets | 642,301 | 558,843 | 642,301 | 558,843 | $ 644,488 |
Power Services | |||||
Segment Reporting Information | |||||
Revenues | 212,493 | 151,094 | 662,131 | 402,615 | |
Cost of revenues | 178,472 | 118,407 | 540,986 | 302,140 | |
GROSS PROFIT | 34,021 | 32,687 | 121,145 | 100,475 | |
Selling, general and administrative expenses | 5,464 | 6,391 | 16,804 | 13,688 | |
Impairment loss | 1,979 | ||||
INCOME FROM OPERATIONS | 28,557 | 26,296 | 104,341 | 84,808 | |
Other income, net | 1,623 | 654 | 4,043 | 1,192 | |
INCOME BEFORE INCOME TAXES | 30,180 | 26,950 | 108,384 | 86,000 | |
Amortization of purchased intangible assets | 87 | 135 | 262 | 385 | |
Depreciation | 226 | 169 | 580 | 459 | |
Property, plant and equipment additions | 476 | 101 | 691 | 944 | |
Current assets | 488,122 | 410,143 | 488,122 | 410,143 | |
Current liabilities | 280,538 | 275,052 | 280,538 | 275,052 | |
Goodwill | 20,548 | 20,548 | 20,548 | 20,548 | |
Total assets | 515,783 | 435,208 | 515,783 | 435,208 | |
Industrial Services | |||||
Segment Reporting Information | |||||
Revenues | 16,574 | 21,550 | 50,203 | 59,287 | |
Cost of revenues | 13,797 | 18,386 | 44,634 | 52,491 | |
GROSS PROFIT | 2,777 | 3,164 | 5,569 | 6,796 | |
Selling, general and administrative expenses | 1,638 | 1,410 | 5,041 | 4,532 | |
INCOME FROM OPERATIONS | 1,139 | 1,754 | 528 | 2,264 | |
INCOME BEFORE INCOME TAXES | 1,139 | 1,754 | 528 | 2,264 | |
Amortization of purchased intangible assets | 171 | 97 | 514 | 367 | |
Depreciation | 425 | 302 | 1,144 | 841 | |
Property, plant and equipment additions | 463 | 481 | 2,800 | 1,082 | |
Current assets | 17,549 | 19,269 | 17,549 | 19,269 | |
Current liabilities | 9,546 | 13,336 | 9,546 | 13,336 | |
Goodwill | 14,365 | 14,365 | 14,365 | 14,365 | |
Total assets | 46,854 | 50,363 | 46,854 | 50,363 | |
Telecom Services | |||||
Segment Reporting Information | |||||
Revenues | 3,878 | 2,800 | 10,903 | 6,385 | |
Cost of revenues | 2,958 | 2,073 | 8,396 | 4,764 | |
GROSS PROFIT | 920 | 727 | 2,507 | 1,621 | |
Selling, general and administrative expenses | 452 | 316 | 1,163 | 944 | |
INCOME FROM OPERATIONS | 468 | 411 | 1,344 | 677 | |
INCOME BEFORE INCOME TAXES | 468 | 411 | 1,344 | 677 | |
Depreciation | 71 | 51 | 202 | 135 | |
Property, plant and equipment additions | 265 | 286 | 513 | 453 | |
Current assets | 4,008 | 2,649 | 4,008 | 2,649 | |
Current liabilities | 1,525 | 1,006 | 1,525 | 1,006 | |
Total assets | 5,242 | 3,297 | 5,242 | 3,297 | |
Other | |||||
Segment Reporting Information | |||||
Selling, general and administrative expenses | 2,565 | 1,731 | 7,400 | 5,265 | |
INCOME FROM OPERATIONS | (2,565) | (1,731) | (7,400) | (5,265) | |
Other income, net | 69 | 36 | 178 | 91 | |
INCOME BEFORE INCOME TAXES | (2,496) | (1,695) | (7,222) | (5,174) | |
Depreciation | 4 | 3 | 10 | 9 | |
Property, plant and equipment additions | 2 | 2 | |||
Current assets | 74,116 | 67,909 | 74,116 | 67,909 | |
Current liabilities | 707 | 1,139 | 707 | 1,139 | |
Total assets | 74,422 | $ 69,975 | 74,422 | $ 69,975 | |
Intercompany Eliminations | |||||
Segment Reporting Information | |||||
Revenues | $ 200 | $ 1,800 |