Argan (AGX) 10-Q 6 Dec 18 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2018	Nov. 30, 2018
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, 2018
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		15,570,719
Document Fiscal Year Focus	2,019
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, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
REVENUES	$ 116,459	$ 232,945	$ 394,495	$ 723,237
Cost of revenues	86,927	195,227	318,803	594,016
GROSS PROFIT	29,532	37,718	75,692	129,221
Selling, general and administrative expenses	11,147	10,119	31,162	30,408
INCOME FROM OPERATIONS	18,385	27,599	44,530	98,813
Other income, net	1,429	1,692	5,121	4,221
INCOME BEFORE INCOME TAXES	19,814	29,291	49,651	103,034
Income tax benefit (expense)	12,560	(12,062)	4,509	(37,738)
NET INCOME	32,374	17,229	54,160	65,296
Net (loss) income attributable to non-controlling interests	(60)		(83)	303
NET INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	32,434	17,229	54,243	64,993
Foreign currency translation adjustments	(1,092)	(139)	(2,364)	754
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	$ 31,342	$ 17,090	$ 51,879	$ 65,747
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Basic (in Dollars per share)	$ 2.08	$ 1.11	$ 3.48	$ 4.19
Diluted (in Dollars per share)	$ 2.07	$ 1.09	$ 3.46	$ 4.11
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic (in shares)	15,569	15,545	15,568	15,509
Diluted (in shares)	15,702	15,793	15,685	15,796
CASH DIVIDENDS PER SHARE (Note 11)	$ 0.25	$ 1	$ 0.75	$ 1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 155,791	$ 122,107
Short-term investments	158,996	311,908
Accounts receivable, net	43,612	24,756
Contract assets	55,628	13,847
Other current assets	25,465	12,410
TOTAL CURRENT ASSETS	439,492	485,028
Property, plant and equipment, net	19,866	15,299
Goodwill	34,329	34,329
Other purchased intangible assets, net	6,390	7,149
Deferred taxes	315	439
Other assets	377	426
TOTAL ASSETS	500,769	542,670
CURRENT LIABILITIES
Accounts payable	64,987	100,238
Accrued expenses	25,111	35,360
Contract liabilities	9,778	47,613
TOTAL CURRENT LIABILITIES	99,876	183,211
Deferred taxes	1,388	1,293
TOTAL LIABILITIES	101,264	184,504
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; 15,573,952 and 15,570,952 shares issued at October 31 and January 31, 2018, respectively; 15,570,719 and 15,567,719 shares outstanding at October 31 and January 31, 2018, respectively	2,336	2,336
Additional paid-in capital	144,507	143,215
Retained earnings	253,716	211,150
Accumulated other comprehensive (loss) income	(942)	1,422
TOTAL STOCKHOLDERS' EQUITY	399,617	358,123
Non-controlling interests	(112)	43
TOTAL EQUITY	399,505	358,166
TOTAL LIABILITIES AND EQUITY	$ 500,769	$ 542,670

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 31, 2018	Jan. 31, 2018
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	15,573,952	15,570,952
Common stock, shares outstanding	15,570,719	15,567,719

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 54,160	$ 65,296
Adjustments to reconcile net income to net cash used in operating activities
Depreciation	2,465	1,936
Gain on the settlement of litigation (Note 9)	(1,400)
Stock compensation expense	1,244	3,573
Change in accrued interest on short-term investments	912	(677)
Amortization of purchased intangible assets	759	776
Deferred income tax (benefit) expense	(153)	475
Other	120	360
Changes in operating assets and liabilities
Accounts receivable	(17,686)	(2,729)
Other assets	15,895	2,720
Accounts payable and accrued expenses	(44,016)	5,600
Changes in contracts-in-progress, net (Note 4)	(79,616)	(94,629)
Net cash used in operating activities	(99,106)	(22,739)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments	(158,000)	(462,500)
Maturities of short-term investments	310,000	485,000
Purchases of property, plant and equipment	(7,366)	(4,006)
Changes in notes receivable	225	(200)
Net cash provided by investing activities	144,859	18,294
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid	(11,677)	(15,548)
Proceeds from the exercise of stock options	48	2,781
Distributions to joint venture partners	(72)	(1,229)
Net cash used in financing activities	(11,701)	(13,996)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH	(368)	951
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	33,684	(17,490)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	122,107	167,198
CASH AND CASH EQUIVALENTS, END OF PERIOD	155,791	149,708
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	2,625	$ 36,922
Cash paid for interest	$ 659

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Oct. 31, 2018
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 Argan, Inc. (“Argan”) conducts operations through its wholly owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”), which provided 61% and 89% of consolidated revenues for the nine months ended October 31, 2018 and 2017, 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 collectively referred to as the “Company.” Through GPS and APC, the Company provides a full range of engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical and consulting services to the power generation and renewable energy markets. The wide range of customers includes independent power producers, public utilities, power plant equipment suppliers and global energy plant construction firms. Including consolidated joint ventures and variable interest entities (“VIEs”), GPS and APC represent the Company’s 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 piping systems, pressure vessels and heat exchangers. Through SMC, which conducts 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 of the United States. Basis of Presentation The condensed consolidated financial statements include the accounts of Argan, its wholly owned subsidiaries, its financially controlled joint ventures and any variable interest entities for which the Company is deemed to be the primary beneficiary (see Note 3). All significant inter-company balances and transactions have been eliminated in consolidation. Certain comparative amounts in the balance sheet and statement of cash flows were reclassified to conform to the current year presentation (see Note 4). In Note 14, 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. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and 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 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, 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, 2018. The condensed consolidated balance sheet as of October 31, 2018, the condensed consolidated statements of earnings for the three and nine months ended October 31, 2018 and 2017, and the condensed consolidated statements of cash flows for the nine months ended October 31, 2018 and 2017 are unaudited. The condensed consolidated balance sheet as of January 31, 2018 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, 2018, 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. Effective February 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers ,” and a series of amendments which together hereinafter are referred to as “ASC Topic 606”, using the permitted modified retrospective method. Accordingly, the new guidance was applied retrospectively to contracts that were not completed as of the adoption date. Financial results for the reporting period which began February 1, 2018 and ended October 31, 2018 have been presented under ASC Topic 606, while prior period operating result amounts have not been adjusted and continue to be reported in accordance with previous guidance. See Note 4 for additional discussion about the adoption of ASC Topic 606 and its impact on the Company’s consolidated financial statements. The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s current assets, which primarily include cash and cash equivalents, short-term investments, accounts receivable and contract assets, and its current liabilities are reasonable estimates of their fair values due to the short-term nature of these items. The fair value amounts of reporting units (as needed for purposes of identifying goodwill impairment losses) are determined by averaging valuations that are calculated using market-based and income-based approaches deemed appropriate in the circumstances.

RECENTLY ISSUED ACCOUNTING PRON

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Oct. 31, 2018
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 condensed consolidated financial statements except for the following professional guidance related to leases. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 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, is expected to affect primarily the presentation of the Company’s condensed consolidated balance sheet, the Company has not yet determined the complete extent or significance of the changes.

SPECIAL PURPOSE ENTITIES

SPECIAL PURPOSE ENTITIES	9 Months Ended
	Oct. 31, 2018
SPECIAL PURPOSE ENTITIES
SPECIAL PURPOSE ENTITIES	NOTE 3 – SPECIAL PURPOSE ENTITIES Variable Interest Entity In January 2018, the Company was deemed to be the primary beneficiary of a VIE that is performing the project development activities for the construction of a new natural gas-fired power plant. Consideration for the Company’s engineering and financial support includes the right to build the power plant pursuant to a turnkey engineering, procurement and construction services (“EPC”) contract that has been negotiated and announced. The account balances of the VIE are included in the condensed consolidated financial statements, including the development costs incurred during the three and nine-month periods ended October 31, 2018 in the Construction Joint Ventures GPS assigned its EPC contracts for two natural gas-fired power plants, which were substantially completed during the year ended January 31, 2017, 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. Both joint ventures were liquidated in October 2018 and final cash distributions in the total amount of approximately $0.3 million were made. Due to the financial control of GPS, the accounts of the joint ventures were included in the Company’s condensed consolidated financial statements.

REVENUES FROM CONTRACT WITH CUS

REVENUES FROM CONTRACT WITH CUSTOMERS	9 Months Ended
	Oct. 31, 2018
REVENUES FROM CONTRACT WITH CUSTOMERS
REVENUES FROM CONTRACT WITH CUSTOMERS	NOTE 4 – REVENUES FROM CONTRACT WITH CUSTOMERS Update to Significant Accounting Policies ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. The new standard supersedes most previous revenue recognition guidance, including industry-specific guidance. Upon adoption of ASC Topic 606, the Company revised its accounting policy on revenue recognition from the policy provided in the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended January 31, 2018. The revised accounting policy for revenue recognition is provided below. Central to the new revenue recognition framework is a five-step revenue recognition model that requires reporting entities to: 1. Identify the contract, 2. Identify the performance obligations of the contract, 3. Determine the transaction price of the contract, 4. Allocate the transaction price to the performance obligations, and 5. Recognize revenue. The new guidance focuses on the transfer of the contractor’s control of the goods and/or services to the customer, as opposed to the transfer of risk and rewards. Major provisions cover the determination of which goods and services are distinct and represent separate performance obligations, the appropriate treatments for variable consideration, and the evaluation of whether revenues should be recognized at a point in time or over time. Where a performance obligation is satisfied over time, the related revenues are also recognized over time. The new standard for revenue recognition also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. The transaction price for a contract represents the value of the corresponding contract used to determine the amount of revenues recognized as of the balance sheet date. It may reflect amounts of variable consideration, which could be either increases or decreases to the transaction price. These adjustments can be made from time-to-time during the period of contract performance as circumstances evolve related to such items as variations in the scope and price of contracts, claims, incentives and liquidated damages. The Company includes the estimated amount of variable consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenues recognized on the particular contract will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s determination of the amount of variable consideration to be included in the transaction price of a particular contract is based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available. The effect of any revisions to the transaction price on the amount of previously recognized revenues that is due to the addition or reduction of variable consideration is recorded currently as an adjustment to revenues on a cumulative catch-up basis. In the event that any amounts of variable consideration that are reflected in the transaction price of a contract are not resolved in the Company’s favor, there could be reductions in, or reversals of, previously recognized revenues. Most of the Company’s long-term contracts have a single performance obligation as the promises to transfer individual goods or services are not separately identifiable from other promises in the contracts and, therefore, are not distinct. Under previous revenue recognition guidance, the Company also generally accounted for its long-term contracts as single units of account (i.e., a single performance obligation). Most of the Company’s revenues are recognized primarily under various types of long-term construction contracts, including those for which revenues are based on either a fixed price, time and materials or cost-plus-fee basis, and primarily over time as performance obligations are satisfied due to the continuous transfer of control to the project owner or other customer. Significant contracts typically have durations of three months 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. However, costs incurred on a particular contract that are related to materials or equipment items over which the corresponding project owner has yet to obtain control shall be excluded from the measurement of progress toward the satisfaction of the corresponding performance obligation determined as of the report date. If at any time, the estimate of contract profitability indicates an anticipated loss on a contract, the Company will recognize the total loss in the quarter it is identified. 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 fee earned, measured using the cost-to-cost method. The timing of when the Company bills its customers is generally dependent upon negotiated billing terms, the achievement of certain contract milestones, the completion of certain other phases of the work, or when services are provided or products are shipped. Projects with performance obligations satisfied over time will typically have revenues recognized to date in amounts different from the amounts of cumulative billings. As the rights and obligations in contracts are interdependent, the differences for each contract are combined with certain other asset and liability amounts related to the corresponding contracts in order to determine the net asset or net liability amounts, on a contract-by-contract basis. The amounts for each contract in a net asset position are totaled at the report date and presented in the corresponding consolidated balance sheet as contract assets. Likewise, the amounts for each contract in a net liability position are totaled at the report date and presented in the corresponding consolidated balance sheet as contract liabilities. Contract assets are defined in the new standard to include amounts that represent the rights to receive payment for goods or services that have been transferred to the project owner, with the rights conditional upon something other than the passage of time. Contract liabilities are defined in the new standard to include the amounts that reflect obligations to provide goods or services for which payment has been received. Accordingly, the amounts presented in prior consolidated balance sheets that were identified as “costs and estimated earnings in excess of billings” and “billings in excess of costs and estimated earnings” are now reflected in the line items entitled “contract assets” and “contract liabilities.” In addition, accounts receivable has been redefined to represent unconditional rights to receive payments which only require the passage of time. Billed amounts retained by project owners until a defined phase of a contract or project has been completed and accepted, which were historically included in accounts receivable, are now reflected in contract assets or contract liabilities depending on the net contract position of the particular contract. Retention amounts and the length of retention periods may vary. Retainage amounts related to active contracts are considered current regardless of the term of the applicable contract; such amounts are generally collected by the completion of the applicable contract. Further, the proper accounting for certain costs that may be incurred to obtain contracts or that may be incurred on contracts but do not represent actual progress, has been altered. Significant costs that are typically incurred during the initial phases of a contract are no longer charged to contract costs when incurred. Such costs, identified as contract fulfillment costs, are capitalized, are treated as contract assets, and are amortized to contract costs over the contract performance period. Impact of the Adoption of the New Accounting Standard The effect of the adoption of ASC Topic 606 on retained earnings as of February 1, 2018 was an income tax-effected increase of less than $0.1 million. The differences between the Company’s reported operating results for the three and nine months ended October 31, 2018, which reflect the application of the new standard on the Company’s contracts, and the results that would have been reported if the accounting was performed pursuant to the accounting standards previously in effect, were not material. In accordance with the new standard, the Company has reported balances for contract assets and contract liabilities in its condensed consolidated balance sheets as of October 31, and January 31, 2018. Balances as of January 31, 2018 for the accounts identified below were recast in order to conform to the presentation as of October 31, 2018: Balances Impact of the Classification Reported Adoption of Under ASC Previously ASC Topic 606 Topic 606 Accounts receivable, net $ 94,440 $ (69,684) $ 24,756 Costs and estimated earnings in excess of billings 4,887 (4,887) — Contract assets — 13,847 13,847 Billings in excess of costs and estimated earnings 108,388 (108,388) — Contract liabilities — 47,613 47,613 Deferred taxes 1,279 13 1,293 Retained earnings 211,112 38 211,150 The total of amounts retained by project owners under construction contracts at October 31, 2018 was $14.2 million, most of which related to active projects that the Company expects to collect before January 31, 2019. The net balance for capitalized contract fulfillment costs as of October 31, 2018 that are being charged to active contracts on an amortization basis was $0.3 million. Costs incurred by the Company to obtain contracts have not been material historically. The increase in contracts-in-progress, net, for the nine months ended October 31, 2018 in the amount of $79.6 million was caused primarily by a decline of $93.1 million in billings in excess of costs and estimated earnings and an increase in costs and estimated earnings in excess of billings in the amount of $38.8 million, offset partially by a decrease in customer retainages in the amount of $55.5 million. Revenues recognized during the nine months ended October 31, 2018 that were considered contract liabilities as of January 31, 2018 totaled $45.6 million. For the nine months ended October 31, 2017, a decrease of $62.4 million in the amounts of billings in excess of costs and estimated earnings, an increase in customer retainages in the amount of $28.7 million, and an increase of $7.0 million in the amounts of costs incurred and estimated earnings recorded on certain contracts in excess of the amounts of billings on those contracts were the primary factors in the use of cash in the amount of $94.6 million related to contracts-in-progress. Variable Consideration Contract variations for which the Company has project-owner directive for additional work or other scope change, but not for the price associated with the corresponding additional effort, are included in the transaction price and are reflected in revenues when it is considered probable that the applicable costs will be recovered through a modification to the contract price. The aggregate amounts of such contract variations included in the transaction prices that were used to determine project-to-date revenues at October 31 and January 31, 2018, were $10.6 million and $9.3 million, respectively. The effects of any revision to a transaction price can be determined at any time and they could be material. Actual costs related to any changes in the scope of the corresponding contract are expensed as they are incurred. Changes to total estimated contract costs and losses, if any, are reflected in operating results for the period in which they are determined. The Company may include in the corresponding transaction price a portion of the amount claimed in a dispute that it expects to receive from a project owner. Once a settlement of the dispute has been reached with the project owner, the transaction price may be revised again to reflect the final resolution. Variations related to the Company’s contracts typically represent modifications to the existing contracts and performance obligations, and do not represent new performance obligations. The Company’s long-term contracts typically have schedule dates and other performance objectives 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 the achievement of a specified level of output or efficiency. Each applicable contract defines the conditions under which a project owner may be entitled to liquidated damages. At the outset of each of the Company’s contracts, the potential amounts of liquidated damages typically are not constrained, or subtracted, from the transaction price as the Company believes that it has included activities in its contract plan, and the associated costs, that will be effective in preventing such damages. Of course, circumstances may change as the Company executes the corresponding contract. The transaction price is reduced by an applicable amount when the Company no longer considers it probable that a future reversal of revenues will not occur when the matter is resolved. In general, the Company considers potential liquidated damages, the costs of other related items and potential mitigating factors in determining the adequacy of its regularly updated estimates of the amounts of gross profit expected to be earned on active projects. In other cases, the Company may have the grounds to assert liquidated damages against subcontractors, suppliers, project owners or other parties related to a project. Such circumstances may arise when the Company’s activities and progress are adversely affected by delayed or damaged materials, challenges with equipment performance or other events out of the Company’s control where the Company has rights to recourse, typically in the form of liquidated damages. In general, the Company does not adjust the corresponding contract accounting until it is probable that the favorable cost relief will be realized. Such adjustments have been and could be material. The Company records adjustments in revenues and profits on contracts, including those associated with contract variations and estimated cost changes, using a cumulative catch-up method. Under this method, the impact of an adjustment to the amount of revenues recognized to date is recorded in the period the adjustment is identified. Revenues and profits in future periods of contract performance are recognized using the adjusted amounts of transaction price and estimated contract costs. For the three and nine months ended October 31, 2018, the net impacts on revenues of changes that the Company made to transaction prices and to estimates of the costs-to-complete active contracts were increases of approximately $16.7 million and $29.7 million, respectively. Remaining Unsatisfied Performance Obligations The amount of the Company’s remaining unsatisfied performance obligations (“RUPO”) represents the unrecognized revenue value of active contracts with customers as determined under ASC Topic 606. Increases to RUPO during a reporting period represent the transaction prices associated with new contracts, as well as additions to the transaction prices of existing contracts. The amounts of such changes may vary significantly each reporting period based on the timing of major new contract awards and the occurrence and assessment of contract variations. At October 31, 2018, the Company had RUPO of $129.7 million. Approximately one-half of the Company’s RUPO as of October 31, 2018 is anticipated to be recognized as revenues during the three months ending January 31, 2019, with the remainder recognized as revenues during the year ending January 31, 2020. Although the amount of reported RUPO includes business that is considered to be firm, it is important to note that cancellations, deferrals or scope adjustments may occur. RUPO may be adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as applicable. Disaggregation of Revenues The following table presents consolidated revenues for the three and nine months ended October 31, 2018 and 2017, disaggregated by the geographic area where the work was performed: Three Months Ended October 31, Nine Months Ended October 31, 2018 2017 2018 2017 United States $ 87,892 $ 226,207 $ 320,985 $ 708,246 United Kingdom 19,708 3,487 53,866 6,156 Republic of Ireland 8,698 3,251 18,857 8,835 Other 161 — 787 — Consolidated Revenues $ 116,459 $ 232,945 $ 394,495 $ 723,237 The consolidated revenues are disaggregated by reportable segment in Note 14 to the condensed consolidated financial statements. Prior period financial operating results have not been adjusted for the adoption of ASC Topic 606 under the Company’s application of the modified retrospective method.

CASH, CASH EQUIVALENTS AND SHOR

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	9 Months Ended
	Oct. 31, 2018
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 October 31 and January 31, 2018 consisted solely of certificates of deposit purchased from Bank of America (the “Bank”) with weighted average initial maturities of 230 days and 293 days, respectively (the “CDs”). The Company has the intent and ability to hold the CDs 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 and January 31, 2018 included accrued interest of $1.0 million and $1.9 million, respectively. Interest income is recorded when earned and is included in other income. At October 31 and January 31, 2018, the weighted average annual interest rates of the CDs were 2.5% and 1.5%, respectively. The Company has cash on deposit in excess of federally insured limits at the Bank, has purchased CDs from the Bank, and has money market accounts at 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, 2018
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE	NOTE 6 – ACCOUNTS RECEIVABLE The Company may extend credit to a customer based on an evaluation of the customer’s financial condition, generally without requiring collateral. Exposure to losses on accounts and notes 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 amounts receivable. At October 31, 2018, Company’s allowance for uncollectible accounts was $0.2 million. As of January 31, 2018, the amount of the allowance for uncollectible accounts was not material.

PURCHASED INTANGIBLE ASSETS

PURCHASED INTANGIBLE ASSETS	9 Months Ended
	Oct. 31, 2018
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS	NOTE 7 – PURCHASED INTANGIBLE ASSETS At both October 31 and January 31, 2018, the goodwill balances related to the acquisitions of GPS, TRC and APC were $18.5 million, $13.8 million and $2.0 million, respectively. Purchased intangible assets, other than goodwill, consisted of the following elements as of October 31 and January 31, 2018: October 31, 2018 January 31, Estimated Gross Accumulated Net 2018 (net Useful Life Amount Amortization Amount amount) Trade names 15 years-indefinite $ 8,323 $ 3,764 $ 4,559 $ 4,966 Process certifications 7 years 1,897 790 1,107 1,310 Customer relationships 4-10 years 1,346 622 724 873 Totals $ 11,566 $ 5,176 $ 6,390 $ 7,149

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	9 Months Ended
	Oct. 31, 2018
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 agreement 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 2.0%. 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. At October 31 and January 31, 2018, the Company had credit outstanding under the Credit Agreement, but no borrowings, in the approximate amounts of $15.5 million and $18.9 million, respectively. 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. At October 31 and January 31, 2018, the Company was compliant with the financial covenants of the Credit Agreement.

LEGAL MATTERS

LEGAL MATTERS	9 Months Ended
	Oct. 31, 2018
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 adverse effect on the Company’s condensed consolidated financial statements. 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. In addition, PPS placed liens on the property of customers in several states where work was performed by PPS and it also filed a claim in Tennessee against the bond issued on behalf of TRC relating to one significant project located there. On March 4, 2016, TRC filed responses to the claims of PPS, asserting that PPS failed to deliver a number of items required by the applicable contract between the parties, that the invoices rendered by PPS covering the disputed services would not be paid until such deliverables were supplied, and that certain sums were owed to it by PPS for services, furniture, fixtures, equipment, and software that were supplied by TRC on behalf of PPS. The amounts invoiced by PPS were accrued by TRC and the corresponding liability amounts were included in accounts payable in the condensed consolidated balance sheet as January 31, 2018. TRC did not record 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 in resolving the disputes. In December 2017, an amended complaint was filed by the plaintiff and TRC filed an amended counterclaim and the discovery process began. In July 2018, the parties agreed to a settlement of all claims made against each other with TRC agreeing to make a payment to PPS in the amount of $0.9 million. As the total of the previously accrued amounts exceeded the negotiated settlement amount, the Company recorded a gain on the settlement in the amount of $1.4 million that is included in other income for the nine-month period ended October 31, 2018. GPS was in a dispute with a former subcontractor on one of its power plant construction projects that was settled pursuant to binding arbitration in June 2018. The arbitration panel awarded approximately $5.2 million, plus interest and arbitration fees, to the subcontractor. The substantial portion of the total amount, which was paid by GPS to the subcontractor in July 2018, was charged to cost of revenues. In connection with the settlement, the legal claims made by the parties against each other were dismissed with prejudice and without costs to the parties, all liens filed by the subcontractor related to the project were released, and each party provided the other with a release from future claims related to this matter.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Oct. 31, 2018
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 10 – STOCK-BASED COMPENSATION The Company’s board of directors may make awards under the 2011 Stock Plan (the “Stock Plan”) to officers, directors and key employees. Awards may include incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), and restricted or unrestricted stock. All stock options awarded 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. ISOs shall have a term no longer than ten years; NSOs may have up to a ten-year term. In the past, stock options typically became exercisable one year from the date of award. Commencing in January 2018, stock options were awarded with three-year vesting schedules. As of October 31, 2018, there were approximately 1.8 million shares of the Company’s common stock reserved for issuance under the Company’s stock plans. This number includes 675,500 shares of the Company’s common stock available for future awards. Summaries of stock option activity under the Company’s stock plans for the nine months ended October 31, 2018 and 2017, along with corresponding weighted average per share amounts, are presented below (shares in thousands): Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2018 889 $ 44.83 7.91 $ 11.74 Granted 192 $ 40.32 Exercised (3) $ 17.33 Outstanding, October 31, 2018 1,078 $ 44.11 $ Exercisable, October 31, 2018 709 $ 44.57 $ Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2017 707 $ 39.04 7.82 $ 10.22 Granted 125 $ 63.58 Exercised (90) $ 30.74 Forfeited (10) $ 71.75 Outstanding, October 31, 2017 732 $ 43.81 $ 11.61 Exercisable, October 31, 2017 452 $ 28.75 $ 7.76 The changes in the number of non-vested options to purchase shares of common stock for the nine months ended October 31, 2018 and 2017, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2018 302 $ 13.55 Granted 192 $ 9.35 Vested (125) $ 16.19 Non-vested, October 31, 2018 369 $ 10.47 Shares Fair Value Non-vested, February 1, 2017 270 $ 14.93 Granted 125 $ 16.19 Vested (105) $ 9.66 Forfeited (10) $ 19.14 Non-vested, October 31, 2017 280 $ 17.83 In April 2018 and pursuant to terms of the Stock Plan, the Company awarded performance-based restricted stock units to two senior executives covering up to 36,000 shares of common stock plus a number of shares to be determined based on the amount of cash dividends deemed paid on shares earned pursuant to the awards. The release of the stock restrictions depends on the total shareholder return performance of the Company’s common stock measured against the performance of a peer-group of common stocks over a three-year period. Compensation expense related to stock awards was $0.3 million and $1.3 million for the three months ended October 31, 2018 and 2017, respectively, and was $1.2 million and $3.6 million for the nine months ended October 31, 2018 and 2017, respectively. At October 31, 2018, there was $3.6 million in unrecognized compensation cost related to outstanding stock awards that the Company expects to expense over the next three years. The total intrinsic value of the stock options exercised during the nine months ended October 31, 2018 and 2017, was $0.1 million and $3.1 million, respectively. At October 31, 2018, the aggregate market value amounts of the shares of common stock subject to outstanding and exercisable stock options, that were “in-the-money”, exceeded the aggregate exercise prices of such options by $7.1 million and $6.4 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. The Company believes that its stock option exercise activity is sufficient to provide it with a reasonable basis upon which to estimate the expected life of newly awarded stock options. The fair values of stock options granted during the periods presented below 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, 2018 2017 Dividend yield 2.5 % 1.1 % Expected volatility 35.0 % 36.0 % Risk-free interest rate 2.4 % 1.6 % Expected life (in years) 3.3 3.4

CASH DIVIDENDS

CASH DIVIDENDS	9 Months Ended
	Oct. 31, 2018
CASH DIVIDENDS
CASH DIVIDENDS	NOTE 11 – CASH DIVIDENDS On September 12, 2018, the Company’s board of directors declared a regular quarterly cash dividend in the amount of $0.25 per share of common stock, which was paid on October 31, 2018 to stockholders of record at the close of business on October 24, 2018. In both April 2018 and July 2018, the Company also made regular quarterly cash dividend payments based on a per share amount of $0.25. In September 2017, the Company’s board of directors declared a regular annual cash dividend of $1.00 per share of common stock, which was paid on October 31, 2017.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Oct. 31, 2018
INCOME TAXES
INCOME TAXES	NOTE 12 – INCOME TAXES Research and Development Tax Credits The Company has completed a detailed review of the activities of its engineering staff on major EPC services projects in order to identify and quantify the amounts of research and development credits that may be available to reduce current and prior year income taxes. This study was begun last year and focused on project costs incurred during the three-year period ended January 31, 2018. Based on the results of the study, management has identified and estimated significant amounts of income tax benefits that have not previously been recognized in the Company’s operating results for the current or any prior year reporting period. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Management considers the three-month period ended October 31, 2018 as the initial reporting period in which it had sufficient data on which to make an evaluation and reach a conclusion on the amount of income tax credit benefits related to prior year project costs that, more likely than not, qualified as research and development costs under the rules and regulations of the Internal Revenue Code of 1986, as amended (the “IRC”), and certain states. The income tax benefits associated with research and development activities conducted in prior years in the total amount of $16.5 million have been recognized in income taxes for the three and nine months ended October 31, 2018, and represented a favorable effect on dilutive earnings per share of $1.05 for each period. This net benefits amount reflects the establishment of a deferred tax valuation allowance of $0.7 million related to certain state research and development credits. The Company believes it is more likely than not that these credits will not be realized. If the benefits had been recognized in the fiscal years that the related research and development costs were incurred, which were the years ended January 31, 2016, 2017 and 2018, the income tax amounts for such years would have been favorably impacted by $0.5 million, $11.0 million and $5.0 million, respectively. The amount of income tax benefits related to qualifying research and development costs incurred for the year ending January 31, 2019 is not expected to be significant. The amount of identified but unrecognized income tax benefits related to research and development credits as of October 31, 2018 is $5.3 million, which, if recognized in the years that the related costs were incurred, would have favorably impacted income taxes for the years ended January 31, 2016, 2017 and 2018 by $0.3 million, $2.7 million and $2.3 million, respectively. As of October 31, 2018, the Company does not believe that it has any other material uncertain income tax positions reflected in its accounts. As described below, during the extended term of a current examination, the Internal Revenue Service (the “IRS”) intends to review the research and development credit that will be included in the amendment of the Company’s consolidated federal income tax return for the year ended January 31, 2016. The Company does not anticipate any significant changes to the income tax benefit amounts identified above within the next twelve months except for the addition of amounts related to research and development credits that may be available in Pennsylvania as it is an application-based state. However, such credit amounts could be material. In the future, if previously recognized tax positions no longer meet the more-likely-than-not threshold, the related benefits will be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Tax Cuts and Jobs Act (the “Tax Act”) The Tax Act was signed into law on December 22, 2017 and significantly changes tax law in the United States by, among other items, reducing the federal corporate income tax rate from a maximum of 35% to 21% (effective January 1, 2018). The Tax Act embraces a territorial system for the taxation of future foreign earnings and modifies certain business deductions by, among other changes, repealing the domestic production activities deduction, further limiting the deductibility of certain executive compensation and increasing the limitation on the deductibility of certain meals and entertainment expenses. As a result of the reduction in the corporate income tax rate, the Company revalued its deferred taxes as of December 22, 2017 and recognized an income tax benefit of $0.8 million for the year ended January 31, 2018. The Company did not record a liability as of January 31, 2018 related to transition taxes as it did not have any unremitted foreign earnings. Its foreign operations had incurred a cumulative net operating loss since the acquisition of APC in May 2015. The Company currently estimates that the Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Act will not have a material impact on its operating results for the year ending January 31, 2019. Nonetheless, it has included GILTI tax related to current year operations in its estimated annual effective tax rate. In the event that any new guidance related to the Tax Act is issued by the IRS or other regulatory or standard-setting bodies, the Company will conduct additional analysis and may make adjustments that could materially impact the Company’s income tax expense for the period in which such adjustments are made. Income Tax Expense Reconciliation The Company’s income tax expense amounts for the nine months ended October 31, 2018 and 2017 differed from corresponding amounts computed by applying the federal corporate income tax rates of 21% and 35%, respectively, to income before income taxes for the periods as shown in the table below. Nine Months Ended October 31, 2018 2017 Computed expected income tax expense $ (10,427) $ (36,062) (Increase) decrease resulting from: State income taxes, net of federal tax effect 676 (4,633) Federal research and development tax credits 13,866 — Net operating loss benefits 1,730 — Stock options 14 866 Domestic production activities deduction — 3,036 Adjustments and other differences (1,350) (945) Income tax benefit (expense) $ 4,509 $ (37,738) The amount of state income tax benefit for the nine months ended October 31, 2018 that is presented above reflects recognized research and development state tax credit benefits of $2.7 million. Foreign income tax expense for the nine months ended October 31, 2018 was $0.5 million; the comparable amount for the nine months ended October 31, 2017 was not material. As of October 31, 2018, the balance of other current assets in the condensed consolidated balance sheet included income tax refunds offset partially by accrued income taxes in the amounts of approximately $16.5 million and $1.5 million, respectively. The income tax refunds are amounts expected to be received after the filing of amended tax returns claiming research and development tax credits in prior years. At January 31, 2018, other current assets included prepaid income taxes in the amount of $7.9 million. Income Tax Returns The Company is subject to income taxes in the United States, the Republic of Ireland, the United Kingdom and various other state and foreign jurisdictions. Tax treatments within each jurisdiction are subject to the interpretation of the related tax laws and regulations which require significant judgment to apply. The Company is no longer subject to income tax examinations by authorities for its fiscal years ended on or before January 31, 2015 except for several notable exceptions including the Republic of Ireland, the United Kingdom and several states where the open periods are one year longer. The IRS is conducting an examination of the Company’s federal consolidated tax return for the year ended January 31, 2016. As a result of conclusions reached by the IRS examiner, the Company recorded a $1.7 million income tax benefit in the quarter ended October 31, 2018 related to additional net operating losses of acquired companies that are available for the fiscal years ending January 31, 2016 through January 31, 2021. The IRS has represented to the Company that no other adjustment items were noted during the examination. However, the Company has agreed to an extension of the audit timeline so that the IRS may examine the amendment to the income tax return for the year ended January 31, 2016, reflecting the research and development credit for the year, which the Company intends to file before the end of the current fiscal year.

EARNINGS PER SHARE ATTRIBUTABLE

EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	9 Months Ended
	Oct. 31, 2018
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. Basic and diluted earnings per share are computed as follows (shares in thousands except in the footnote below): Three Months Ended October 31, 2018 2017 Net income attributable to the stockholders of Argan, Inc. $ 32,434 $ 17,229 Weighted average number of shares outstanding - basic 15,569 15,545 Effect of stock awards (1) 133 248 Weighted average number of shares outstanding - diluted 15,702 15,793 Net income per share attributable to the stockholders of Argan, Inc. Basic $ 2.08 $ 1.11 Diluted $ 2.07 $ 1.09 Nine Months Ended October 31, 2018 2017 Net income attributable to the stockholders of Argan, Inc. $ 54,243 $ 64,993 Weighted average number of shares outstanding - basic 15,568 15,509 Effect of stock awards (1) 117 287 Weighted average number of shares outstanding - diluted 15,685 15,796 Net income per share attributable to the stockholders of Argan, Inc. Basic $ 3.48 $ 4.19 Diluted $ 3.46 $ 4.11 (1) These numbers exclude the effects of antidilutive stock options which covered 581,500 shares for the three and nine months ended October 31, 2018, and 155,000 shares for the three and nine months ended October 31, 2017.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Oct. 31, 2018
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 14 – 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. Intersegment revenues 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, 2018, intersegment revenues totaled approximately $0.4 million and $0.8 million, respectively. For the three and nine months ended October 31, 2017, intersegment revenues totaled approximately $0.2 million and $1.8 million, respectively. Intersegment revenues for the aforementioned periods primarily related to services provided between the industrial fabrication and field services segment and the power industry services segment and are based on prices negotiated by the parties. 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, 2018 and 2017. The “Other” column in each summary includes the Company’s corporate and unallocated expenses: Three Months Ended Power Industrial Telecom October 31, 2018 Services Services Services Other Totals Revenues $ 88,724 $ 24,091 $ 3,644 $ — $ 116,459 Cost of revenues 61,943 22,203 2,781 — 86,927 Gross profit 26,781 1,888 863 — 29,532 Selling, general and administrative expenses 7,178 1,910 436 1,623 11,147 Income (loss) from operations 19,603 (22) 427 (1,623) 18,385 Other income, net 1,298 — — 131 1,429 Income (loss) before income taxes $ 20,901 $ (22) $ 427 $ (1,492) 19,814 Income tax benefit 12,560 Net income $ 32,374 Amortization of purchased intangible assets $ 87 $ 166 $ — $ — $ 253 Depreciation 183 616 96 3 898 Property, plant and equipment additions 776 1,104 119 2 2,001 Current assets $ 347,883 $ 30,519 $ 3,964 $ 57,126 $ 439,492 Current liabilities 82,381 15,670 1,075 750 99,876 Goodwill 20,548 13,781 — — 34,329 Total assets 376,871 60,933 5,623 57,342 500,769 Three Months Ended Power Industrial Telecom October 31, 2017 Services Services Services Other Totals Revenues $ 212,493 $ 16,574 $ 3,878 $ — $ 232,945 Cost of revenues 178,472 13,797 2,958 — 195,227 Gross profit 34,021 2,777 920 — 37,718 Selling, general and administrative expenses 5,464 1,638 452 2,565 10,119 Income (loss) from operations 28,557 1,139 468 (2,565) 27,599 Other income, net 1,623 — — 69 1,692 Income (loss) before income taxes $ 30,180 $ 1,139 $ 468 $ (2,496) 29,291 Income tax expense (12,062) Net income $ 17,229 Amortization of purchased intangible assets $ 87 $ 171 $ — $ — $ 258 Depreciation 226 425 71 4 726 Property, plant and equipment additions 476 463 265 — 1,204 Goodwill $ 20,548 $ 14,365 $ — $ — $ 34,913 Total assets (1) 515,783 46,854 5,242 74,422 642,301 (1) The amount of total assets for each segment has been recast to conform to the presentation as of October 31, 2018. Nine Months Ended Power Industrial Telecom October 31, 2018 Services Services Services Other Totals Revenues $ 316,262 $ 68,577 $ 9,656 $ — $ 394,495 Cost of revenues 249,401 61,889 7,513 — 318,803 Gross profit 66,861 6,688 2,143 — 75,692 Selling, general and administrative expenses 18,563 5,698 1,286 5,615 31,162 Income (loss) from operations 48,298 990 857 (5,615) 44,530 Other income, net 3,393 1,400 — 328 5,121 Income (loss) before income taxes $ 51,691 $ 2,390 $ 857 $ (5,287) 49,651 Income tax benefit 4,509 Net income $ 54,160 Amortization of purchased intangible assets $ 262 $ 497 $ — $ — $ 759 Depreciation 548 1,640 267 10 2,465 Property, plant and equipment additions 2,318 4,379 666 3 7,366 Nine Months Ended Power Industrial Telecom October 31, 2017 Services Services Services Other Totals Revenues $ 662,131 $ 50,203 $ 10,903 $ — $ 723,237 Cost of revenues 540,986 44,634 8,396 — 594,016 Gross profit 121,145 5,569 2,507 — 129,221 Selling, general and administrative expenses 16,804 5,041 1,163 7,400 30,408 Income (loss) from operations 104,341 528 1,344 (7,400) 98,813 Other income, net 4,043 — — 178 4,221 Income (loss) before income taxes $ 108,384 $ 528 $ 1,344 $ (7,222) 103,034 Income tax expense (37,738) Net income $ 65,296 Amortization of purchased intangible assets $ 262 $ 514 $ — $ — $ 776 Depreciation 580 1,144 202 10 1,936 Property, plant and equipment additions 691 2,800 513 2 4,006

CUSTOMER CONCENTRATIONS

CUSTOMER CONCENTRATIONS	9 Months Ended
	Oct. 31, 2018
CUSTOMER CONCENTRATIONS
CUSTOMER CONCENTRATIONS	NOTE 15 – CUSTOMER CONCENTRATIONS The majority of the Company’s consolidated revenues relate to performance by the power industry services segment which provided 76% and 91% of consolidated revenues for the three months ended October 31, 2018 and 2017, respectively, and 80% and 92% of consolidated revenues for the nine months ended October 31, 2018 and 2017, respectively. The Company’s most significant customer relationships for the three months ended October 31, 2018 included four power industry service customers which accounted for approximately 20%, 17%, 13% and 12% of consolidated revenues, respectively. The Company’s most 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 most significant customer relationships for the nine months ended October 31, 2018 included four power industry service customers which accounted for approximately 18%, 16%, 12% and 11% of consolidated revenues, respectively. The Company's most 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. Amounts retained by three project owners were $5.4 million, $3.3 million and $0.9 million as of October 31, 2018, respectively, which in the aggregate represented 68% of the total customer retention amount of $14.2 million at that date. Amounts retained by five project owners were $19.3 million, $18.7 million, $14.1 million, $13.4 million and $3.2 million as of January 31, 2018, respectively, which in the aggregate represented 99% of the total customer retention amount of $69.7 million at that date. The accounts receivable balance from one customer represented 24% of the corresponding consolidated balance as of October 31, 2018. Accounts receivable balances from two customers each represented 18% of the corresponding consolidated balance as of January 31, 2018.

DESCRIPTION OF THE BUSINESS A_2

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Oct. 31, 2018
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION
Description of the Business	Description of the Business Argan, Inc. (“Argan”) conducts operations through its wholly owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”), which provided 61% and 89% of consolidated revenues for the nine months ended October 31, 2018 and 2017, 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 collectively referred to as the “Company.” Through GPS and APC, the Company provides a full range of engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical and consulting services to the power generation and renewable energy markets. The wide range of customers includes independent power producers, public utilities, power plant equipment suppliers and global energy plant construction firms. Including consolidated joint ventures and variable interest entities (“VIEs”), GPS and APC represent the Company’s 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 piping systems, pressure vessels and heat exchangers. Through SMC, which conducts 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 of the United States.
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements include the accounts of Argan, its wholly owned subsidiaries, its financially controlled joint ventures and any variable interest entities for which the Company is deemed to be the primary beneficiary (see Note 3). All significant inter-company balances and transactions have been eliminated in consolidation. Certain comparative amounts in the balance sheet and statement of cash flows were reclassified to conform to the current year presentation (see Note 4). In Note 14, 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. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and 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 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, 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, 2018. The condensed consolidated balance sheet as of October 31, 2018, the condensed consolidated statements of earnings for the three and nine months ended October 31, 2018 and 2017, and the condensed consolidated statements of cash flows for the nine months ended October 31, 2018 and 2017 are unaudited. The condensed consolidated balance sheet as of January 31, 2018 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, 2018, 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. Effective February 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers ,” and a series of amendments which together hereinafter are referred to as “ASC Topic 606”, using the permitted modified retrospective method. Accordingly, the new guidance was applied retrospectively to contracts that were not completed as of the adoption date. Financial results for the reporting period which began February 1, 2018 and ended October 31, 2018 have been presented under ASC Topic 606, while prior period operating result amounts have not been adjusted and continue to be reported in accordance with previous guidance. See Note 4 for additional discussion about the adoption of ASC Topic 606 and its impact on the Company’s consolidated financial statements. The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s current assets, which primarily include cash and cash equivalents, short-term investments, accounts receivable and contract assets, and its current liabilities are reasonable estimates of their fair values due to the short-term nature of these items. The fair value amounts of reporting units (as needed for purposes of identifying goodwill impairment losses) are determined by averaging valuations that are calculated using market-based and income-based approaches deemed appropriate in the circumstances.

REVENUES FROM CONTRACT WITH C_2

REVENUES FROM CONTRACT WITH CUSTOMERS (Tables)	9 Months Ended
	Oct. 31, 2018
Recently issued accounting pronouncements
Schedule of consolidated revenues disaggregated by geographical area	Three Months Ended October 31, Nine Months Ended October 31, 2018 2017 2018 2017 United States $ 87,892 $ 226,207 $ 320,985 $ 708,246 United Kingdom 19,708 3,487 53,866 6,156 Republic of Ireland 8,698 3,251 18,857 8,835 Other 161 — 787 — Consolidated Revenues $ 116,459 $ 232,945 $ 394,495 $ 723,237
Impact of the Adoption of ASC Topic 606
Recently issued accounting pronouncements
Schedule of accounts identified below were recast in order to conform to the current year presentation	Balances as of January 31, 2018 for the accounts identified below were recast in order to conform to the presentation as of October 31, 2018: Balances Impact of the Classification Reported Adoption of Under ASC Previously ASC Topic 606 Topic 606 Accounts receivable, net $ 94,440 $ (69,684) $ 24,756 Costs and estimated earnings in excess of billings 4,887 (4,887) — Contract assets — 13,847 13,847 Billings in excess of costs and estimated earnings 108,388 (108,388) — Contract liabilities — 47,613 47,613 Deferred taxes 1,279 13 1,293 Retained earnings 211,112 38 211,150

PURCHASED INTANGIBLE ASSETS (Ta

PURCHASED INTANGIBLE ASSETS (Tables)	9 Months Ended
	Oct. 31, 2018
PURCHASED INTANGIBLE ASSETS
Schedule of purchased intangible assets, other than goodwill	October 31, 2018 January 31, Estimated Gross Accumulated Net 2018 (net Useful Life Amount Amortization Amount amount) Trade names 15 years-indefinite $ 8,323 $ 3,764 $ 4,559 $ 4,966 Process certifications 7 years 1,897 790 1,107 1,310 Customer relationships 4-10 years 1,346 622 724 873 Totals $ 11,566 $ 5,176 $ 6,390 $ 7,149

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Oct. 31, 2018
STOCK-BASED COMPENSATION
Schedule of stock option activity under the Company's stock plans	Summaries of stock option activity under the Company’s stock plans for the nine months ended October 31, 2018 and 2017, along with corresponding weighted average per share amounts, are presented below (shares in thousands): Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2018 889 $ 44.83 7.91 $ 11.74 Granted 192 $ 40.32 Exercised (3) $ 17.33 Outstanding, October 31, 2018 1,078 $ 44.11 $ Exercisable, October 31, 2018 709 $ 44.57 $ Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2017 707 $ 39.04 7.82 $ 10.22 Granted 125 $ 63.58 Exercised (90) $ 30.74 Forfeited (10) $ 71.75 Outstanding, October 31, 2017 732 $ 43.81 $ 11.61 Exercisable, October 31, 2017 452 $ 28.75 $ 7.76
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, 2018 and 2017, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2018 302 $ 13.55 Granted 192 $ 9.35 Vested (125) $ 16.19 Non-vested, October 31, 2018 369 $ 10.47 Shares Fair Value Non-vested, February 1, 2017 270 $ 14.93 Granted 125 $ 16.19 Vested (105) $ 9.66 Forfeited (10) $ 19.14 Non-vested, October 31, 2017 280 $ 17.83
Summary of assumptions used to estimate fair value of stock options granted	Nine Months Ended October 31, 2018 2017 Dividend yield 2.5 % 1.1 % Expected volatility 35.0 % 36.0 % Risk-free interest rate 2.4 % 1.6 % Expected life (in years) 3.3 3.4

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Oct. 31, 2018
INCOME TAXES
Schedule of actual income tax expense amounts	Nine Months Ended October 31, 2018 2017 Computed expected income tax expense $ (10,427) $ (36,062) (Increase) decrease resulting from: State income taxes, net of federal tax effect 676 (4,633) Federal research and development tax credits 13,866 — Net operating loss benefits 1,730 — Stock options 14 866 Domestic production activities deduction — 3,036 Adjustments and other differences (1,350) (945) Income tax benefit (expense) $ 4,509 $ (37,738)

EARNINGS PER SHARE ATTRIBUTAB_2

EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Tables)	9 Months Ended
	Oct. 31, 2018
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Schedule of computations of basic and diluted earnings per share	Basic and diluted earnings per share are computed as follows (shares in thousands except in the footnote below): Three Months Ended October 31, 2018 2017 Net income attributable to the stockholders of Argan, Inc. $ 32,434 $ 17,229 Weighted average number of shares outstanding - basic 15,569 15,545 Effect of stock awards (1) 133 248 Weighted average number of shares outstanding - diluted 15,702 15,793 Net income per share attributable to the stockholders of Argan, Inc. Basic $ 2.08 $ 1.11 Diluted $ 2.07 $ 1.09 Nine Months Ended October 31, 2018 2017 Net income attributable to the stockholders of Argan, Inc. $ 54,243 $ 64,993 Weighted average number of shares outstanding - basic 15,568 15,509 Effect of stock awards (1) 117 287 Weighted average number of shares outstanding - diluted 15,685 15,796 Net income per share attributable to the stockholders of Argan, Inc. Basic $ 3.48 $ 4.19 Diluted $ 3.46 $ 4.11 (1) These numbers exclude the effects of antidilutive stock options which covered 581,500 shares for the three and nine months ended October 31, 2018, and 155,000 shares for the three and nine months ended October 31, 2017.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Oct. 31, 2018
SEGMENT REPORTING
Schedule of operating results and certain financial position data of the Company's reportable business segments	Three Months Ended Power Industrial Telecom October 31, 2018 Services Services Services Other Totals Revenues $ 88,724 $ 24,091 $ 3,644 $ — $ 116,459 Cost of revenues 61,943 22,203 2,781 — 86,927 Gross profit 26,781 1,888 863 — 29,532 Selling, general and administrative expenses 7,178 1,910 436 1,623 11,147 Income (loss) from operations 19,603 (22) 427 (1,623) 18,385 Other income, net 1,298 — — 131 1,429 Income (loss) before income taxes $ 20,901 $ (22) $ 427 $ (1,492) 19,814 Income tax benefit 12,560 Net income $ 32,374 Amortization of purchased intangible assets $ 87 $ 166 $ — $ — $ 253 Depreciation 183 616 96 3 898 Property, plant and equipment additions 776 1,104 119 2 2,001 Current assets $ 347,883 $ 30,519 $ 3,964 $ 57,126 $ 439,492 Current liabilities 82,381 15,670 1,075 750 99,876 Goodwill 20,548 13,781 — — 34,329 Total assets 376,871 60,933 5,623 57,342 500,769 Three Months Ended Power Industrial Telecom October 31, 2017 Services Services Services Other Totals Revenues $ 212,493 $ 16,574 $ 3,878 $ — $ 232,945 Cost of revenues 178,472 13,797 2,958 — 195,227 Gross profit 34,021 2,777 920 — 37,718 Selling, general and administrative expenses 5,464 1,638 452 2,565 10,119 Income (loss) from operations 28,557 1,139 468 (2,565) 27,599 Other income, net 1,623 — — 69 1,692 Income (loss) before income taxes $ 30,180 $ 1,139 $ 468 $ (2,496) 29,291 Income tax expense (12,062) Net income $ 17,229 Amortization of purchased intangible assets $ 87 $ 171 $ — $ — $ 258 Depreciation 226 425 71 4 726 Property, plant and equipment additions 476 463 265 — 1,204 Goodwill $ 20,548 $ 14,365 $ — $ — $ 34,913 Total assets (1) 515,783 46,854 5,242 74,422 642,301 (1) The amount of total assets for each segment has been recast to conform to the presentation as of October 31, 2018. Nine Months Ended Power Industrial Telecom October 31, 2018 Services Services Services Other Totals Revenues $ 316,262 $ 68,577 $ 9,656 $ — $ 394,495 Cost of revenues 249,401 61,889 7,513 — 318,803 Gross profit 66,861 6,688 2,143 — 75,692 Selling, general and administrative expenses 18,563 5,698 1,286 5,615 31,162 Income (loss) from operations 48,298 990 857 (5,615) 44,530 Other income, net 3,393 1,400 — 328 5,121 Income (loss) before income taxes $ 51,691 $ 2,390 $ 857 $ (5,287) 49,651 Income tax benefit 4,509 Net income $ 54,160 Amortization of purchased intangible assets $ 262 $ 497 $ — $ — $ 759 Depreciation 548 1,640 267 10 2,465 Property, plant and equipment additions 2,318 4,379 666 3 7,366 Nine Months Ended Power Industrial Telecom October 31, 2017 Services Services Services Other Totals Revenues $ 662,131 $ 50,203 $ 10,903 $ — $ 723,237 Cost of revenues 540,986 44,634 8,396 — 594,016 Gross profit 121,145 5,569 2,507 — 129,221 Selling, general and administrative expenses 16,804 5,041 1,163 7,400 30,408 Income (loss) from operations 104,341 528 1,344 (7,400) 98,813 Other income, net 4,043 — — 178 4,221 Income (loss) before income taxes $ 108,384 $ 528 $ 1,344 $ (7,222) 103,034 Income tax expense (37,738) Net income $ 65,296 Amortization of purchased intangible assets $ 262 $ 514 $ — $ — $ 776 Depreciation 580 1,144 202 10 1,936 Property, plant and equipment additions 691 2,800 513 2 4,006

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details)	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
GPS
Description of the Business
Consolidated revenues by subsidiaries	61.00%	89.00%

SPECIAL PURPOSE ENTITIES (Detai

SPECIAL PURPOSE ENTITIES (Details) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Oct. 31, 2018USD ($)item	Oct. 31, 2018USD ($)item	Oct. 31, 2018USD ($)itemproject
GPS
Variable Interest Entity
Number of natural gas-fired power plants | project			2
Number of joint ventures | item	2	2	2
Final cash distributions to joint ventures	$ 0.3
VIE
Variable Interest Entity
Development costs incurred		$ 0.7	$ 1.4

REVENUES FROM CONTRACT WITH C_3

REVENUES FROM CONTRACT WITH CUSTOMERS - Update to Significant Accounting Policies (Details)	9 Months Ended
	Oct. 31, 2018
Minimum
Update to Significant Accounting Policies
Revenue recognition period	3 months
Maximum
Update to Significant Accounting Policies
Revenue recognition period	3 years

REVENUES FROM CONTRACT WITH C_4

REVENUES FROM CONTRACT WITH CUSTOMERS - Impact of the Adoption of the New Accounting Standard (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Feb. 01, 2018	Jan. 31, 2018
Impact of the Adoption of the New Accounting Standard
Accounts receivable, net	$ 43,612			$ 24,756
Contract assets	55,628			13,847
Contract liabilities	9,778			47,613
Deferred taxes	1,388			1,293
Retained earnings	253,716			211,150
Retained amounts by project owners	14,200			69,700
Change in contracts in progress, net	79,616	$ 94,629
Balances Reported Previously
Impact of the Adoption of the New Accounting Standard
Accounts receivable, net				94,440
Costs and estimated earnings in excess of billings				4,887
Billings in excess of costs and estimated earnings				108,388
Deferred taxes				1,279
Retained earnings				211,112
Impact of the Adoption of ASC Topic 606
Impact of the Adoption of the New Accounting Standard
Accounts receivable, net				(69,684)
Costs and estimated earnings in excess of billings				(4,887)
Contract assets				13,847
Billings in excess of costs and estimated earnings				(108,388)
Contract liabilities				47,613
Deferred taxes				13
Retained earnings				$ 38
Retained amounts by project owners	14,200
Capitalized project costs, net	300
Change in contracts in progress, net	79,600	94,600
Decline in the amounts of billings in excess of costs and estimated earnings	(93,100)	(62,400)
Increase in costs and estimated earnings in excess of billings	38,800	7,000
Increase (decrease) in customer retainages	55,500	$ 28,700
Revenues recognized that was included in contract liabilities	$ 45,600
Impact of the Adoption of ASC Topic 606 | Maximum
Impact of the Adoption of the New Accounting Standard
Retained earnings			$ 100

REVENUES FROM CONTRACT WITH C_5

REVENUES FROM CONTRACT WITH CUSTOMERS - Variable Consideration (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2018	Jan. 31, 2018
REVENUES FROM CONTRACT WITH CUSTOMERS
Amounts of unpriced change orders included in transaction prices	$ 10.6	$ 10.6	$ 9.3
Impact on revenues, changes in estimates of the costs-to-complete active contracts	$ 16.7	$ 29.7

REVENUES FROM CONTRACT WITH C_6

REVENUES FROM CONTRACT WITH CUSTOMERS - Remaining Unsatisfied Performance Obligations (Details) $ in Millions	Oct. 31, 2018USD ($)
REVENUES FROM CONTRACT WITH CUSTOMERS
Contract backlog amount	$ 129.7
Contract backlog (as percent)	0.50%

REVENUES FROM CONTRACT WITH C_7

REVENUES FROM CONTRACT WITH CUSTOMERS - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Disaggregation of Revenues
Consolidated Revenues	$ 116,459	$ 232,945	$ 394,495	$ 723,237
United States
Disaggregation of Revenues
Consolidated Revenues	87,892	226,207	320,985	708,246
United Kingdom
Disaggregation of Revenues
Consolidated Revenues	19,708	3,487	53,866	6,156
Republic of Ireland
Disaggregation of Revenues
Consolidated Revenues	8,698	$ 3,251	18,857	$ 8,835
Other
Disaggregation of Revenues
Consolidated Revenues	$ 161		$ 787

CASH, CASH EQUIVALENTS AND SH_2

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - Held-to-maturity Securities - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Oct. 31, 2018	Jan. 31, 2018
Cash and Cash Equivalents
Maturity period	230 days	293 days
Accrued interest on held-to-maturity securities	$ 1	$ 1.9
Weighted average annual interest rates of CDs (as a percent)	2.50%	1.50%

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) $ in Millions	Oct. 31, 2018USD ($)
ACCOUNTS RECEIVABLE
Allowance for uncollectible accounts	$ 0.2

PURCHASED INTANGIBLE ASSETS - G

PURCHASED INTANGIBLE ASSETS - Goodwill and Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Jan. 31, 2018	Oct. 31, 2017
Finite-Lived Intangible Assets
Intangible Assets - Gross Carrying Amount	$ 11,566
Accumulated Amortization	5,176
Other intangible assets, net	6,390	$ 7,149
Indefinite-Lived Intangible Assets
Goodwill	34,329	34,329	$ 34,913
GPS
Indefinite-Lived Intangible Assets
Goodwill	18,500	18,500
TRC
Indefinite-Lived Intangible Assets
Goodwill	13,800	13,800
APC
Indefinite-Lived Intangible Assets
Goodwill	$ 2,000	2,000
Trade names
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	15 years
Finite Lived Intangible Assets - Gross Carrying Amount	$ 8,323
Accumulated Amortization	3,764
Finite Lived Intangible Assets - Net Amount	$ 4,559	4,966
Process certifications
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	7 years
Finite Lived Intangible Assets - Gross Carrying Amount	$ 1,897
Accumulated Amortization	790
Finite Lived Intangible Assets - Net Amount	1,107	1,310
Customer relationships
Finite-Lived Intangible Assets
Finite Lived Intangible Assets - Gross Carrying Amount	1,346
Accumulated Amortization	622
Finite Lived Intangible Assets - Net Amount	$ 724	$ 873
Customer relationships | Maximum
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	10 years
Customer relationships | Minimum
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life	4 years

FINANCING ARRANGEMENTS (Details

FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions	May 15, 2017	Oct. 31, 2018	Jan. 31, 2018
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Financing Arrangements
Variable rate	30-day LIBOR
Interest rate margin on referred rate	2.00%
Revolving Credit Facility | Expires on May 31, 2021
Financing Arrangements
Borrowing available under financing arrangements	$ 50
Letter of Credit
Financing Arrangements
Borrowings outstanding under Bank financing arrangements		$ 0
Letters of credit outstanding amount		$ 15.5	$ 18.9

LEGAL MATTERS (Details)

LEGAL MATTERS (Details) $ in Thousands	Feb. 01, 2016USD ($)project	Jul. 31, 2018USD ($)	Jun. 30, 2018USD ($)	Oct. 31, 2018USD ($)
Loss Contingencies
Gain on settlement				$ 1,400
PPS Engineers, Inc. claims lawsuit
Loss Contingencies
Amount paid on settlement		$ 900
Gain on settlement				$ 1,400
Former subcontractor | GPS
Loss Contingencies
Amount of arbitration panel awarded			$ 5,200
Pending Litigation | PPS Engineers, Inc. claims lawsuit
Loss Contingencies
Amount of damages sought by plaintiff	$ 2,300
Number of significant project locations involved in the lawsuit | project	1

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		11 Months Ended
	Apr. 30, 2018personshares	Oct. 31, 2018USD ($)shares	Oct. 31, 2017USD ($)	Oct. 31, 2018USD ($)shares	Oct. 31, 2017USD ($)	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Stock compensation expense		$ 300	$ 1,300	$ 1,244	$ 3,573
Unrecognized compensation cost		3,600		3,600
Intrinsic value of outstanding stock options		7,100		7,100
Intrinsic value of exercisable stock options		$ 6,400		$ 6,400
Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares of common stock available for award | shares		675,500		675,500
Stock Options Plans
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares of common stock reserved for issuance | shares		1,800,000		1,800,000
Compensation expense recognize, period				3 years
Intrinsic value of the stock options exercised				$ 100	$ 3,100
Stock Options Plans | Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award
Period to become exercisable				3 years		1 year
ISOs | Stock Plan
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
Incentive stock option award maximum expiration period				10 years
Senior executives | Performance-based restricted stock units | Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of executives | person	2
Period to become exercisable	3 years
Senior executives | Performance-based restricted stock units | Stock Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares awarded | shares	36,000

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
STOCK-BASED COMPENSATION
Shares, Outstanding, Beginning balance			889	707
Shares, Granted			192	125
Shares, Exercised			(3)	(90)
Shares, Forfeited				(10)
Shares, Outstanding, Ending balance	889	707	1,078	732
Shares, Exercisable			709	452
Weighted Average Exercise Price, Outstanding, Beginning balance			$ 44.83	$ 39.04
Weighted Average Exercise Price, Granted			40.32	63.58
Weighted Average Exercise Price, Exercised			17.33	30.74
Weighted Average Exercise Price, Forfeited				71.75
Weighted Average Exercise Price, Outstanding, Ending balance	$ 44.83	$ 39.04	44.11	43.81
Weighted Average Exercise Price, Exercisable			$ 44.57	$ 28.75
Weighted Average Remaining Term (Years), Outstanding	7 years 10 months 28 days	7 years 9 months 26 days	7 years 7 months 17 days	7 years 7 months 2 days
Weighted Average Remaining Term (Years), Exercisable			6 years 8 months 9 days	6 years 6 months 7 days
Weighted Average Fair Value, Outstanding	$ 11.74	$ 10.22	$ 11.33	$ 11.61
Weighted Average Fair Value, Exercisable			$ 11.77	$ 7.76

STOCK-BASED COMPENSATION - Su_2

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, 2018	Oct. 31, 2017
STOCK-BASED COMPENSATION
Shares, Non-vested, Beginning balance	302	270
Shares, Granted	192	125
Shares, Vested	(125)	(105)
Shares, Forfeitures		(10)
Shares, Non-vested, Ending balance	369	280
Weighted Average Fair Value, Non-vested, Beginning balance	$ 13.55	$ 14.93
Weighted Average Fair Value, Granted	9.35	16.19
Weighted Average Fair Value, Vested	16.19	9.66
Weighted Average Fair Value, Forfeitures		19.14
Weighted Average Fair Value, Non-vested, Ending balance	$ 10.47	$ 17.83

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Assumptions Used to Estimate Fair Value of Stock Options Granted (Details) - Stock Options Plans	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Method used for fair value assumption	Black-Scholes option-pricing model	Black-Scholes option-pricing model
Dividend yield	2.50%	1.10%
Expected volatility	35.00%	36.00%
Risk-free interest rate	2.40%	1.60%
Expected life (in years)	3 years 3 months 18 days	3 years 4 months 24 days

CASH DIVIDENDS (Details)

CASH DIVIDENDS (Details) - $ / shares	Sep. 12, 2018	Jul. 31, 2018	Apr. 30, 2018	Sep. 30, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
CASH DIVIDENDS
Regular cash dividend declared per common stock	$ 0.25	$ 0.25	$ 0.25	$ 1	$ 0.25	$ 1	$ 0.75	$ 1

INCOME TAXES - Research and Dev

INCOME TAXES - Research and Development Tax Credits (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2018	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2016
INCOME TAXES
Period for identify and quantify the amounts of research and development credits		3 years
Income tax expense (benefits) associated with research and development activities	$ 16.5	$ 16.5	$ 5	$ 11	$ 0.5
Effects on dilutive earnings per share, research and development activities	$ 1.05	$ 1.05
Deferred tax valuation allowance	$ 0.7	$ 0.7
Unrecognized income tax benefits related to research and development credits	$ 5.3	$ 5.3
Unrecognized tax benefits related to research and development credits that would impact effective tax rate, if recognized			$ 2.3	$ 2.7	$ 0.3

INCOME TAXES - The Tax Cuts and

INCOME TAXES - The Tax Cuts and Jobs Act (the "Tax Act") (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Oct. 31, 2018	Jan. 31, 2018
INCOME TAXES
Federal corporate income tax rate (as percent)	21.00%	35.00%
Income tax benefit		$ 0.8

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018
INCOME TAXES
Computed expected income tax expense			$ (10,427)	$ (36,062)
State income taxes, net of federal tax effect			676	(4,633)
Federal research and development tax credits			13,866
Net operating loss benefits			1,730
Stock options			14	866
Domestic production activities deduction				3,036
Adjustments and other differences			(1,350)	(945)
Income tax benefit (expense)	$ 12,560	$ (12,062)	4,509	(37,738)
research and development state tax credit				2,700
Foreign income tax expense				$ 500
Partial income tax refunds offset	16,500		16,500
Accrued income taxes	1,500		$ 1,500
Prepaid income taxes					$ 7,900
Income tax benefit recorded related to additional net operating losses of acquired companies	$ 1,700

EARNINGS PER SHARE ATTRIBUTAB_3

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, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Net income attributable to the stockholders of Argan, Inc.	$ 32,434	$ 17,229	$ 54,243	$ 64,993
Weighted average number of shares outstanding - basic	15,569	15,545	15,568	15,509
Effect of stock awards	133	248	117	287
Weighted average number of shares outstanding - diluted	15,702	15,793	15,685	15,796
Basic (in Dollars per share)	$ 2.08	$ 1.11	$ 3.48	$ 4.19
Diluted (in Dollars per share)	$ 2.07	$ 1.09	$ 3.46	$ 4.11

EARNINGS PER SHARE ATTRIBUTAB_4

EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. - Antidilutive Shares (Details) - shares	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
EARNINGS PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Antidilutive stock options	581,500	155,000

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018
Segment Reporting Information
Revenues	$ 116,459	$ 232,945	$ 394,495	$ 723,237
Cost of revenues	86,927	195,227	318,803	594,016
Gross profit	29,532	37,718	75,692	129,221
Selling, general and administrative expenses	11,147	10,119	31,162	30,408
Income (loss) from operations	18,385	27,599	44,530	98,813
Other income, net	1,429	1,692	5,121	4,221
Income (loss) before income taxes	19,814	29,291	49,651	103,034
Income tax benefit (expense)	12,560	(12,062)	4,509	(37,738)
Net income	32,374	17,229	54,160	65,296
Amortization of purchased intangible assets	253	258	759	776
Depreciation	898	726	2,465	1,936
Property, plant and equipment additions	2,001	1,204	7,366	4,006
Current assets	439,492		439,492		$ 485,028
Current liabilities	99,876		99,876		183,211
Goodwill	34,329	34,913	34,329	34,913	34,329
Total assets	500,769	642,301	500,769	642,301	$ 542,670
Power Services
Segment Reporting Information
Revenues	88,724	212,493	316,262	662,131
Cost of revenues	61,943	178,472	249,401	540,986
Gross profit	26,781	34,021	66,861	121,145
Selling, general and administrative expenses	7,178	5,464	18,563	16,804
Income (loss) from operations	19,603	28,557	48,298	104,341
Other income, net	1,298	1,623	3,393	4,043
Income (loss) before income taxes	20,901	30,180	51,691	108,384
Amortization of purchased intangible assets	87	87	262	262
Depreciation	183	226	548	580
Property, plant and equipment additions	776	476	2,318	691
Current assets	347,883		347,883
Current liabilities	82,381		82,381
Goodwill	20,548	20,548	20,548	20,548
Total assets	376,871	515,783	376,871	515,783
Industrial Services
Segment Reporting Information
Revenues	24,091	16,574	68,577	50,203
Cost of revenues	22,203	13,797	61,889	44,634
Gross profit	1,888	2,777	6,688	5,569
Selling, general and administrative expenses	1,910	1,638	5,698	5,041
Income (loss) from operations	(22)	1,139	990	528
Other income, net			1,400
Income (loss) before income taxes	(22)	1,139	2,390	528
Amortization of purchased intangible assets	166	171	497	514
Depreciation	616	425	1,640	1,144
Property, plant and equipment additions	1,104	463	4,379	2,800
Current assets	30,519		30,519
Current liabilities	15,670		15,670
Goodwill	13,781	14,365	13,781	14,365
Total assets	60,933	46,854	60,933	46,854
Telecom Services
Segment Reporting Information
Revenues	3,644	3,878	9,656	10,903
Cost of revenues	2,781	2,958	7,513	8,396
Gross profit	863	920	2,143	2,507
Selling, general and administrative expenses	436	452	1,286	1,163
Income (loss) from operations	427	468	857	1,344
Income (loss) before income taxes	427	468	857	1,344
Depreciation	96	71	267	202
Property, plant and equipment additions	119	265	666	513
Current assets	3,964		3,964
Current liabilities	1,075		1,075
Total assets	5,623	5,242	5,623	5,242
Other
Segment Reporting Information
Selling, general and administrative expenses	1,623	2,565	5,615	7,400
Income (loss) from operations	(1,623)	(2,565)	(5,615)	(7,400)
Other income, net	131	69	328	178
Income (loss) before income taxes	(1,492)	(2,496)	(5,287)	(7,222)
Depreciation	3	4	10	10
Property, plant and equipment additions	2		3	2
Current assets	57,126		57,126
Current liabilities	750		750
Total assets	57,342	74,422	57,342	74,422
Intercompany Eliminations
Segment Reporting Information
Revenues	$ 400	$ 200	$ 800	$ 1,800

CUSTOMER CONCENTRATIONS (Detail

CUSTOMER CONCENTRATIONS (Details) $ in Millions	Oct. 31, 2018USD ($)	Oct. 31, 2018USD ($)customer	Oct. 31, 2017customer	Oct. 31, 2018USD ($)Ownercustomer	Oct. 31, 2017customer	Jan. 31, 2018USD ($)Owner
Customer Concentrations
Amounts retained by project owners	$ 14.2	$ 14.2		$ 14.2		$ 69.7
Percentage of amounts retained by project owners				68.00%		99.00%
Accounts Receivable
Customer Concentrations
Number of project owners | Owner				3		5
Major Customer One
Customer Concentrations
Amounts retained by project owners	$ 5.4	5.4		$ 5.4		$ 19.3
Major Customer One | Accounts Receivable
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer	24.00%					18.00%
Major Customer Two
Customer Concentrations
Amounts retained by project owners	$ 3.3	3.3		3.3		$ 18.7
Major Customer Two | Accounts Receivable
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer						18.00%
Major Customer Three
Customer Concentrations
Amounts retained by project owners	$ 0.9	$ 0.9		$ 0.9		$ 14.1
Major Customer Four
Customer Concentrations
Amounts retained by project owners						13.4
Major Customer Five
Customer Concentrations
Amounts retained by project owners						$ 3.2
Power Services | Revenue
Customer Concentrations
Percentage of major customers or segments		76.00%	91.00%	80.00%	92.00%
Number of major power industry service customers | customer		4	3	4	4
Power Services | Major Customer One | Revenue
Customer Concentrations
Percentage of major customers or segments		20.00%	36.00%	18.00%	29.00%
Power Services | Major Customer Two | Revenue
Customer Concentrations
Percentage of major customers or segments		17.00%	24.00%	16.00%	27.00%
Power Services | Major Customer Three | Revenue
Customer Concentrations
Percentage of major customers or segments		13.00%	13.00%	12.00%	16.00%
Power Services | Major Customer Four | Revenue
Customer Concentrations
Percentage of major customers or segments		12.00%		11.00%	14.00%