Argan (AGX) 10-Q 10 Dec 19 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2019	Dec. 05, 2019
Document And Entity Information
Entity Registrant Name	ARGAN INC
Entity Central Index Key	0000100591
Document Type	10-Q
Document Period End Date	Oct. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,633,302
Document Fiscal Year Focus	2020
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, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
REVENUES	$ 58,406	$ 116,459	$ 171,009	$ 394,495
Cost of revenues	52,414	86,927	183,078	318,803
GROSS PROFIT (LOSS) (Note 2)	5,992	29,532	(12,069)	75,692
Selling, general and administrative expenses	12,135	11,147	31,761	31,162
Impairment loss (Note 5)			2,072
(LOSS) INCOME FROM OPERATIONS	(6,143)	18,385	(45,902)	44,530
Other income, net	3,578	1,429	7,472	5,121
(LOSS) INCOME BEFORE INCOME TAXES	(2,565)	19,814	(38,430)	49,651
Income tax (expense) benefit (Note 11)	(1,996)	12,560	4,936	4,509
NET INCOME (LOSS)	(4,561)	32,374	(33,494)	54,160
Net income (loss) attributable to non-controlling interests	2,294	(60)	2,007	(83)
NET INCOME (LOSS) ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	(6,855)	32,434	(35,501)	54,243
Foreign currency translation adjustments	235	(1,092)	(825)	(2,364)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	$ (6,620)	$ 31,342	$ (36,326)	$ 51,879
(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Note 12)
Basic (in Dollars per share)	$ (0.44)	$ 2.08	$ (2.27)	$ 3.48
Diluted (in Dollars per share)	$ (0.44)	$ 2.07	$ (2.27)	$ 3.46
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic (in shares)	15,633	15,569	15,617	15,568
Diluted (in shares)	15,633	15,702	15,617	15,685
CASH DIVIDENDS PER SHARE (Note 10)	$ 0.25	$ 0.25	$ 0.75	$ 0.75

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 252,482	$ 164,318
Short-term investments	42,107	132,213
Accounts receivable, net	34,880	36,174
Contract assets	50,365	58,357
Other current assets	26,066	25,286
TOTAL CURRENT ASSETS	405,900	416,348
Property, plant and equipment, net	23,211	19,778
Goodwill	30,766	32,838
Other purchased intangible assets, net	5,273	6,137
Rights-of-use assets (Note 7)	1,338
Deferred taxes	5,911	1,257
Other assets	318	290
TOTAL ASSETS	472,717	476,648
LIABILITIES AND EQUITY CURRENT LIABILITIES
Accounts payable	38,249	39,870
Accrued expenses (Notes 2, 7 and 11)	22,287	33,097
Contract liabilities	58,421	8,349
TOTAL CURRENT LIABILITIES	118,957	81,316
Lease liabilities (Note 7)	563
Other noncurrent liabilities	1,779	960
TOTAL LIABILITIES	121,299	82,276
COMMITMENTS AND CONTINGENCIES (Notes 7 and 8)
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; 15,636,535 and 15,577,102 shares issued at October 31 and January 31, 2019, respectively; 15,633,302 and 15,573,869 shares outstanding at October 31 and January 31, 2019, respectively	2,346	2,337
Additional paid-in capital	148,031	144,961
Retained earnings	200,401	247,616
Accumulated other comprehensive loss	(1,171)	(346)
TOTAL STOCKHOLDERS' EQUITY	349,607	394,568
Non-controlling interests	1,811	(196)
TOTAL EQUITY	351,418	394,372
TOTAL LIABILITIES AND EQUITY	$ 472,717	$ 476,648

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 31, 2019	Jan. 31, 2019
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	15,636,535	15,577,102
Common stock, shares outstanding	15,633,302	15,573,869

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Gain	Non-controlling Interests	Total
Balances at Jan. 31, 2018	$ 2,336	$ 143,215	$ 211,112	$ 1,422	$ 43	$ 358,128
Balances (in shares) at Jan. 31, 2018	15,567,719
Adoption of ASC Topic 606 (Note 1)			37			37
Net (loss) income			54,243		(83)	54,160
Foreign currency translation gain (loss)				(2,364)		(2,364)
Stock compensation expense		1,244				1,244
Stock option exercises		48				$ 48
Stock option exercises (in shares)	3,000					3,000
Cash dividends			(11,676)			$ (11,676)
Distributions to joint venture partners					(72)	(72)
Balances at Oct. 31, 2018	$ 2,336	144,507	253,716	(942)	(112)	399,505
Balances (in shares) at Oct. 31, 2018	15,570,719
Balances at Jul. 31, 2018	$ 2,336	144,135	225,174	150	20	371,815
Balances (in shares) at Jul. 31, 2018	15,568,719
Net (loss) income			32,434		(60)	32,374
Foreign currency translation gain (loss)				(1,092)		(1,092)
Stock compensation expense		338				338
Stock option exercises		34				34
Stock option exercises (in shares)	2,000
Cash dividends			(3,892)			(3,892)
Distributions to joint venture partners					(72)	(72)
Balances at Oct. 31, 2018	$ 2,336	144,507	253,716	(942)	(112)	399,505
Balances (in shares) at Oct. 31, 2018	15,570,719
Balances at Jan. 31, 2019	$ 2,337	144,961	247,616	(346)	(196)	394,372
Balances (in shares) at Jan. 31, 2019	15,573,869
Net (loss) income			(35,501)		2,007	(33,494)
Foreign currency translation gain (loss)				(825)		(825)
Stock compensation expense		1,512				1,512
Stock option exercises	$ 9	1,558				$ 1,567
Stock option exercises (in shares)	59,433					59,000
Cash dividends			(11,714)			$ (11,714)
Balances at Oct. 31, 2019	$ 2,346	148,031	200,401	(1,171)	1,811	351,418
Balances (in shares) at Oct. 31, 2019	15,633,302
Balances at Jul. 31, 2019	$ 2,346	147,445	211,167	(1,406)	(483)	359,069
Balances (in shares) at Jul. 31, 2019	15,633,302
Net (loss) income			(6,855)		2,294	(4,561)
Foreign currency translation gain (loss)				235		235
Stock compensation expense		586				586
Cash dividends			(3,911)			(3,911)
Balances at Oct. 31, 2019	$ 2,346	$ 148,031	$ 200,401	$ (1,171)	$ 1,811	$ 351,418
Balances (in shares) at Oct. 31, 2019	15,633,302

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (33,494)	$ 54,160
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities
Deferred income tax benefit	(4,521)	(153)
Impairment loss	2,072
Depreciation	2,610	2,465
Stock compensation expense	1,512	1,244
Change in accrued interest on short-term investments	1,106	912
Amortization of purchased intangible assets	864	759
Gain on the settlement of litigation		(1,400)
Other	525	119
Changes in operating assets and liabilities
Accounts receivable	1,274	(17,686)
Contract assets	7,992	(41,781)
Other assets	(1,588)	(15,895)
Accounts payable and accrued expenses	(12,523)	(44,016)
Contract liabilities	50,072	(37,835)
Net cash provided by (used in) operating activities	15,901	(99,107)
CASH FLOWS FROM INVESTING ACTIVITIES
Maturities of short-term investments	164,000	310,000
Purchases of short-term investments	(75,000)	(158,000)
Purchases of property, plant and equipment	(6,308)	(7,366)
Changes in notes receivable		225
Net cash provided by investing activities	82,692	144,859
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of cash dividends	(11,714)	(11,676)
Proceeds from the exercise of stock options	1,567	48
Distributions to joint venture partners		(72)
Net cash used in financing activities	(10,147)	(11,700)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH	(282)	(368)
NET INCREASE IN CASH AND CASH EQUIVALENTS	88,164	33,684
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	164,318	122,107
CASH AND CASH EQUIVALENTS, END OF PERIOD	252,482	155,791
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	3,062	2,625
Cash received from income tax refunds	7,917
Operating lease payments made (Note 7)	466
Cash paid for interest		$ 659
Adoption of ASC Topic 842 (non-cash transaction, see Note 7)	1,341
Right-of-use assets obtained in exchange for new operating lease liabilities (non-cash transaction)	$ 441

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Oct. 31, 2019
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”); 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 southeast United States and that are based on its expertise in producing, delivering and installing fabricated steel components such as piping systems and pressure vessels. 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 and any VIEs for which the Company is deemed to be the primary beneficiary. All significant inter-company balances and transactions have been eliminated in consolidation. Certain amounts in the condensed consolidated balance sheet for the prior year-end were reclassified to conform to the current period-end presentation. 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. In Note 13, the Company has provided certain financial information related to concentrations of businesses and customers. The Company’s fiscal year ends on January 31 of each year. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. 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, 2019. The condensed consolidated balance sheet as of October 31, 2019, the condensed consolidated statements of earnings and stockholders’ equity for the three and nine months ended October 31, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended October 31, 2019 and 2018 are unaudited. The condensed consolidated balance sheet as of January 31, 2019 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, 2019, 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. Accounting Policies Effective February 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, “Leases,” as amended, which herein is referred to as “ASC Topic 842.” Accordingly, operating leases with lease terms of more than twelve (12) months have been presented in the condensed consolidated balance sheet as of October 31, 2019 by adding assets for the right-of-use and liabilities for the obligations that are created by these leases (see Note 7). The Company elected to apply the transition requirements at the adoption date rather than at the beginning of the earliest comparative period presented herein. There was no cumulative effect adjustment that had to be made to retained earnings at the adoption date, and prior year consolidated financial statements were not restated. The new accounting for leases did not have a material effect on the Company’s operating results for the three and nine months ended October 31, 2019. Effective February 1, 2018, the Company adopted ASU 2014-09, “ Revenue from Contracts with Customers ,” as amended, which herein is 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. Results for the reporting periods which are included herein have been presented in accordance with the guidance of ASC Topic 606 (see Note 2). The effect of the adoption on retained earnings as of February 1, 2018 was an income tax-effected increase of less than $0.1 million. In 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The scope of this new standard covers, among other provisions, the methods that businesses shall use to estimate amounts of uncollectible notes and accounts receivable. As subsequently amended, the Company does not expect that the requirements of this new guidance, which becomes effective for the Company on February 1, 2020, will materially affect its consolidated financial statements. There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its 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. 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 related to the planned 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 contract that has been negotiated and announced. The account balances of the VIE are included in the condensed consolidated financial statements, including development costs incurred by the VIE during the three and nine-month periods ended October 31, 2019 and 2018, and a gain of $2.2 million related to the granting of a utility easement during the three months ended October 31, 2019. The total amounts of the project development costs included in the balances for property, plant and equipment as of October 31 and January 31, 2019 were $6.4 million and $2.1 million, respectively. At October 31 and January 31, 2019, the total amounts of notes receivable from the VIE and related accrued interest, which amounts are eliminated in consolidation, were $5.1 million and $2.1 million, respectively.

REVENUES FROM CONTRACTS WITH CU

REVENUES FROM CONTRACTS WITH CUSTOMERS	9 Months Ended
	Oct. 31, 2019
REVENUES FROM CONTRACTS WITH CUSTOMERS
REVENUES FROM CONTRACTS WITH CUSTOMERS	NOTE 2 – REVENUES FROM CONTRACT WITH CUSTOMERS The new standard outlines a single comprehensive five-step model for entities to use in accounting for revenues arising from contracts with customers 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 Company 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 of the new standard 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. When a performance obligation is satisfied over time, the related revenues are recognized over time. 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 or a time-and-materials basis, and primarily over time as performance obligations are satisfied due to the continuous transfer of control to the project owner or other customer. Revenues from fixed-price contracts, including a portion of estimated gross profit, are recognized as services are provided, based on costs incurred and estimated total contract costs using the percentage-of-completion method. 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 reporting period that it is identified and an amount is estimable. Revenues from time-and-materials contracts are recognized when the related services are provided to the customer. Most of the Company’s long-term contracts are considered to have a single performance obligation. Although multiple promises to transfer individual goods or services may exist in a single contract, they are not typically distinct within the context of the applicable contract because the contract promises are interrelated or they require the Company to perform critical integration so that the customer receives a completed project. The transaction price for a contract represents the value of the contract awarded to the Company that is 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 changes in the scope and price of contracts, claims, incentives and liquidated damages. 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. In addition, the definition of accounts receivable has been restated to effectively exclude billed amounts retained by project owners until a defined phase of a contract or project has been completed and accepted. Retentions were historically included in accounts receivable, but 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. The total of amounts retained by project owners under construction contracts at October 31 and January 31, 2019 were $20.3 million and $15.3 million, respectively. Variable Consideration Amounts for 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 when it is considered probable that the applicable costs will be recovered through a modification to the contract price. The aggregate amount of such contract variations included in the transaction prices that were used to determine project-to-date revenues at October 31 and January 31, 2019, were $20.6 million and $18.8 million, respectively. The effects of any revision to a transaction price can be determined at any time and they could be material. 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. 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’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. 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 to 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 that the adjustment is identified. Estimated variable consideration amounts are determined by the Company based primarily on the single most likely amount in the range of possible consideration amounts. Revenues and profits in future periods of contract performance are recognized using the adjusted amounts of transaction price and estimated contract costs. In its Form 10-K Annual Report for the year ended January 31, 2019, the Company disclosed that APC is completing a power-plant construction project in the United Kingdom that has encountered significant operational and contractual challenges, and that the consolidated operating results for the year ended January 31, 2019 reflected unfavorable gross profit adjustments related to this project. The disclosure explained that the project progress was behind the schedule originally established for the job and warned that the project may continue to impact consolidated operating results negatively until it reaches completion. Subsequent to the release of the Company's consolidated financial statements for the fiscal year ended January 31, 2019, APC’s estimates of the unfavorable financial impacts of the difficulties on this particular project located in Teesside, England (the "TeesREP" project), including increased scope and design changes from original plans and various work interruptions, escalated substantially. APC has conducted comprehensive reviews of the remaining contract work, prepared new timelines for the completion of the project and assessed other factors. Based on the completed analyses, management expects that the forecasted costs for APC at contract completion will exceed projected revenues by approximately $31.2 million. The total amount of the expected loss on this project has been reflected in the condensed consolidated financial statements for the nine months ended October 31, 2019, with most of the loss recorded in the first quarter ended April 30, 2019. The amount of the contract loss reserve, approximately $8.6 million as of October 31, 2019, has been included in accrued expenses in the accompanying condensed consolidated balance sheet. An effect of changes that the Company made during the three-month period ended April 30, 2019 to transaction prices and to estimates of the costs-to-complete active contracts, including changes primarily related to the loss contract, was a net reversal of $1.4 million in revenues that were recognized last year. Subsequent to October 31, 2019, APC and its customer, the engineering, procurement and construction services contractor on the TeesREP Project, agreed to operational and commercial terms for the completion of the project. This framework generally addresses project schedule, payment terms, scope, performance guarantees and other terms and conditions for reaching substantial completion of APC’s portion of the total project by mid-2020. The framework does not resolve significant past commercial differences which may have to be addressed through applicable dispute resolution mechanisms. While management is disappointed that a global settlement of past commercial differences could not be achieved at this time, management believes that it is in the Company’s best interests to complete the TeesREP project while the parties concurrently use good faith efforts to settle them. It is not possible currently to predict precisely how, when and on what terms (if any) the past commercial differences will be resolved. The Company continues to reserve its rights under the contract. Remaining Unsatisfied Performance Obligations (“RUPO”) The amount of 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, 2019, the Company had RUPO of $817.8 million. The largest portion of RUPO relates to engineering, construction and procurement service contracts with typical performance durations of 2 to 3 years. The Company estimates that the percentages of RUPO at October 31, 2019 expected to be recognized as revenues during the three months ending January 31, 2020 and the year ending January 31, 2021 are 9% and 31%, respectively, with the remaining amount of RUPO expected to be recognizrd during the following two years. Although the amount of reported RUPO represents 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 consolidated revenues are disaggregated by reportable segment in Note 14 to the condensed consolidated financial statements. The amounts of revenues earned under fixed-price contracts during the nine-month periods ended October 31, 2019 and 2018, were approximately 76% and 91%, respectively, of the corresponding consolidated revenues for the periods. The following table presents consolidated revenues for the three and nine months ended October 31, 2019 and 2018, disaggregated by the geographic area where the work was performed: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 United States $ 39,629 $ 87,892 $ 117,045 $ 320,985 United Kingdom 10,349 19,708 35,631 53,866 Republic of Ireland 8,256 8,698 18,007 18,857 Other 172 161 326 787 Totals $ 58,406 $ 116,459 $ 171,009 $ 394,495

CASH, CASH EQUIVALENTS AND SHOR

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	9 Months Ended
	Oct. 31, 2019
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	NOTE 3 – CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS At October 31 and January 31, 2019, a significant amount of cash and cash equivalents was invested in a mutual fund with net assets invested in high-quality money market instruments. Such investments include U.S. Treasury obligations; obligations of U.S. Government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by U.S. Government obligations. 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, 2019 consisted solely of certificates of deposit purchased from Bank of America (the “Bank”) with weighted average initial maturities of 147 days and 250 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, 2019 included accrued interest of $0.1 million and $1.2 million, respectively. Interest income is recorded when earned and is included in other income. At October 31 and January 31, 2019, the weighted average annual interest rates of the CDs were 1.9% and 2.6%, respectively. In addition, the Company has a substantial portion of its cash on deposit at the Bank in excess of federally insured limits. Management does not believe that the combined amount of the CD investments and the cash deposited with the Bank represents a material risk.

ACCOUNTS AND NOTES RECEIVABLE

ACCOUNTS AND NOTES RECEIVABLE	9 Months Ended
	Oct. 31, 2019
ACCOUNTS AND NOTES RECEIVABLE
ACCOUNTS AND NOTES RECEIVABLE	NOTE 4 – ACCOUNTS AND NOTES RECEIVABLE At October 31 and January 31, 2019, there were outstanding invoices, with balances included in accounts receivable and contract assets, in the aggregate amounts of $19.6 million and $17.1 million, respectively, for which the collection time will most likely depend on the resolution of the outstanding legal dispute between the parties (see Note 8). At October 31 and January 31, 2019, Company’s allowance for uncollectible accounts was insignificant. The amounts of the provision for uncollectible accounts and notes receivable for the three and nine months ended October 31, 2019 and 2018 were also insignificant.

PURCHASED INTANGIBLE ASSETS

PURCHASED INTANGIBLE ASSETS	9 Months Ended
	Oct. 31, 2019
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS	NOTE 5 – PURCHASED INTANGIBLE ASSETS Primarily due to the significant reduction of the fair value of the business of APC deemed to have occurred as a result of the substantial contract loss discussed in Note 2 above, the Company recorded an impairment loss in the first quarter ended April 30, 2019 in the amount of $2.1 million, which was the balance of goodwill associated with APC included in the condensed consolidated balance sheet as of January 31, 2019. At October 31 and January 31, 2019, the goodwill balances related to the acquisitions of GPS and TRC were $18.5 million and $12.3 million, respectively. No other changes were made to the balances of goodwill during the nine-month periods ended October 31, 2019 or 2018. The Company’s purchased intangible assets, other than goodwill, consisted of the following elements as of October 31 and January 31, 2019: October 31, 2019 January 31, Estimated Gross Accumulated Net 2019 (net Useful Life Amount Amortization Amount amount) Trade names 15 years $ 8,323 $ 4,442 $ 3,881 $ 4,424 Process certifications 7 years 1,897 1,062 835 1,039 Customer relationships 4-10 years 1,346 789 557 674 Totals $ 11,566 $ 6,293 $ 5,273 $ 6,137

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	9 Months Ended
	Oct. 31, 2019
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS	NOTE 6 – 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. 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, 2019, the Company had letters of credit outstanding under the Credit Agreement, but no borrowings, in the approximate amounts of $10.0 million and $15.2 million, respectively, most of which related to the TeesREP project (see Note 2). 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 also includes other terms, covenants and events of default that are customary for a credit facility of its size and nature. As of October 31 and January 31, 2019, the Company was compliant with the financial covenants of the Credit Agreement.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Oct. 31, 2019
COMMITMENTS
COMMITMENTS	NOTE 7 – COMMITMENTS Leases Management determines if a contract is or contains a lease at inception or upon modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The Company has made the election, as permitted by the new standard, not to apply the new accounting to those leases with terms of twelve (12) months or less and that do not include options to purchase the underlying assets that the Company is reasonably certain to exercise. Finally, the Company elected to utilize the package of permitted practical expedients that, upon adoption of ASC Topic 842, allows entities to not reassess whether any existing contracts are or contain leases. The Company's operating leases primarily cover office space that expire on various dates through May 2024; it has no finance leases. Certain leases contain renewal options, which are included in expected lease terms if they are reasonably certain of being exercised by the Company. None of the operating leases include significant amounts for incentives, rent holidays or price escalations. Under certain lease agreements, the Company is obligated to pay property taxes, insurance, and maintenance costs. Operating lease right-of-use assets and associated lease liabilities are recognized in the balance sheet at the lease commencement date based on the present value of future minimum lease payments to be made over the expected lease term. As the implicit rate is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The expected lease term includes an option to extend or to terminate the lease when it is reasonably certain the Company will exercise such option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term. Operating lease expense amounts for the three and nine months ended October 31, 2019 were $0.2 million and $0.5 million, respectively. For operating leases as of October 31, 2019, the weighted average lease term was 37 months and the weighted average discount rate was 4.3%. The following is a schedule of future minimum lease payments for the operating leases that were recognized in the condensed consolidated balance sheet as of October 31, 2019: Years ending January 31, Remainder of 2020 $ 193 2021 485 2022 378 2023 197 2024 140 Thereafter 23 Total lease payments 1,416 Less interest portion 98 Present value of lease payments 1,318 Less current portion (included in accrued expenses) 755 Non-current portion $ 563 The Company also uses equipment and occupies other facilities under short-term rental agreements. Rent expense amounts incurred under operating leases and short-term rental agreements (including portions of the lease expense amounts disclosed above) and included in costs of revenues for the three and nine months ended October 31, 2019 were $0.9 million and $3.2 million, respectively. Rent expense amounts incurred under these types of arrangements (including portions of the lease expense amounts disclosed above) and included in selling, general and administrative expenses for the three and nine months ended October 31, 2019 were $0.1 million and $0.5 million, respectively. Rent expense amounts incurred on construction projects and included in the costs of revenues for the three and nine months ended October 31, 2018 were approximately $1.7 million and $9.9 million, respectively. Rent expense amounts included in selling, general and administrative expenses for the three and nine months ended October 31, 2018 were $0.2 million and $0.5 million, respectively. Performance Bonds and Guarantees In the normal course of business and for certain major projects, the Company may be required to obtain surety or performance bonding, to cause the issuance of letters of credit, or to provide parent company guarantees (or some combination thereof) in order to provide performance assurances to clients on behalf of its contractor subsidiaries. As these subsidiaries are wholly-owned, any actual liability is ordinarily reflected in the financial statement account balances determined pursuant to the Company’s accounting for contracts with customers. When sufficient information about claims on guaranteed projects would be available and monetary damages or other costs or losses would be determined to be probable, the Company would record such guarantee losses. Any amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress as of October 31, 2019 are not estimable. Argan has provided a parent company performance guarantee and has caused the Bank to issue certain letters of credit (see Note 6) to Técnicas Reunidas (“TR”), the engineering, procurement and construction services (“EPC”) contractor on the TeesREP Biomass Power Station Project, on behalf of APC, a major subcontractor to TR on this project. Warranties The Company generally provides assurance-type warranties for work performed under its construction contracts which do not represent separate performance obligations. The warranties cover defects in equipment, materials, design or workmanship, and most warranty periods typically run from nine to twenty-four months after the completion of construction on a particular project. Because of the nature of the Company’s projects, including project owner inspections of the work both during construction and prior to substantial completion, the Company has not experienced material unexpected warranty costs in the past. Warranty costs are estimated based on experience with the type of work and any known risks relative to each completed project. The accruals of liabilities, which are established to cover estimated future warranty costs, are recorded as the contracted work is performed, and they are included in the amounts of accrued expenses in the condensed consolidated balances sheets.The liability amounts may be periodically adjusted to reflect changes in the estimated size and number of expected warranty claims.

LEGAL MATTERS

LEGAL MATTERS	9 Months Ended
	Oct. 31, 2019
LEGAL MATTERS
LEGAL MATTERS	NOTE 8 – LEGAL MATTERS In the normal course of business, the Company may also 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 except for the matter described below. In January 2019, GPS filed a lawsuit against Exelon West Medway II, LLC and Exelon Generation Company, LLC (together referred to as “Exelon”) for Exelon’s breach of contract and failure to remedy various conditions which negatively impacted the schedule and the costs associated with the construction by GPS of a gas-fired power plant for Exelon in Massachusetts. Nonetheless, GPS continued to perform the efforts required by the contract to complete the project. On March 7, 2019, Exelon provided GPS with a notice intending to terminate the EPC contract under which GPS had been providing services to Exelon. At that time, the construction project was nearly complete and both of the power generation units included in the plant had successfully reached first fire. The completion of various prescribed performance tests and the clearance of punch-list items were the primary tasks necessary to be accomplished by GPS in order to achieve substantial completion of the power plant. Among other actions, Exelon issued a contractual notice requiring GPS to vacate the construction site, made claims against GPS and withheld payments from GPS on invoices prepared and rendered in accordance with the terms of the EPC contract between the parties. In summary, the Company’s position is that Exelon wrongfully terminated GPS, materially breached the EPC contract and received the benefits of the construction work performed by GPS without making payments for the value received. With vigor, GPS will continue to assert its rights under the EPC contract, to pursue the collection from Exelon of amounts owed under the EPC contract (see Note 4) and to defend itself against Exelon’s allegations that GPS did not perform in accordance with the contract. The legal process associated with the lawsuit filed by GPS has begun as the parties recently agreed to discovery and confidentiality protocols.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Oct. 31, 2019
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 9 – 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 have been awarded with three-year vesting schedules. As of October 31, 2019, there were approximately 1.7 million shares of the Company’s common stock reserved for issuance under the Company’s Stock Plan. This number includes 443,500 shares of the Company’s common stock available for future awards. Summaries of stock option activity under the Company’s stock option plans for the nine months ended October 31, 2019 and 2018, 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, 2019 1,140 $ 44.01 $ 11.22 Granted 168 $ 46.67 Exercised (59) $ 26.36 Forfeited (38) $ 46.34 Outstanding, October 31, 2019 1,211 $ 45.18 $ 11.27 Exercisable, October 31, 2019 753 $ 45.81 $ 10.22 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 $ 11.33 Exercisable, October 31, 2018 709 $ 44.57 $ 11.77 The changes in the number of non-vested options to purchase shares of common stock for the nine months ended October 31, 2019 and 2018, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2019 375 $ 10.05 Granted 168 $ 10.32 Vested (57) $ 9.28 Forfeited (28) $ 10.47 Non-vested, October 31, 2019 458 $ 10.22 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 The total intrinsic value of the stock options exercised during the nine months ended October 31, 2019 was $1.4 million. The total intrinsic value of the stock options exercised during the nine months ended October 31, 2018 was $0.1 million. At October 31, 2019, 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 $3.0 million. The Company estimates the fair value of each stock option on the date of award using the Black-Scholes pricing model. The Company believes that its past 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 value amounts for stock options granted during the periods presented herein were estimated on the corresponding dates of award based on the following weighted average assumptions: Nine Months Ended October 31, 2019 2018 Dividend yield 2.2 % 2.5 % Expected volatility 33.1 % 35.0 % Risk-free interest rate 2.0 % 2.4 % Expected life (in years) 3.3 In April 2019 and 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 at each date 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 three-year periods.The award-date fair value amounts for restricted stock units were determined by using the per share market price of the Company’s common stock on the dates of award and the target number of shares for the awards, by assigning equal probabilities to the thirteen possible payout outcomes at the ends of the three-year vesting periods, and by computing the weighted average of the outcome amounts. For each case, the estimated fair value amount was calculated to be 88.5% of the aggregate market value of the target number of shares on the award date. The fair values of stock options and restricted stock units are recorded as stock compensation expense over the vesting periods of the corresponding awards. Expense amounts related to stock awards were $0.6 million and $0.3 million for the three months ended October 31, 2019 and 2018, respectively, and were $1.5 million and $1.2 million for the nine months ended October 31, 2019 and 2018, respectively. At October 31, 2019, there was $3.1 million in unrecognized compensation cost related to outstanding stock awards that the Company expects to expense over the next three years.

CASH DIVIDENDS

CASH DIVIDENDS	9 Months Ended
	Oct. 31, 2019
CASH DIVIDENDS
CASH DIVIDENDS	NOTE 10 – CASH DIVIDENDS On September 10, 2019, 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, 2019 to stockholders of record at the close of business on October 23, 2019. In April and June 2019, the board of directors declared regular quarterly cash dividends of $0.25 per share of common stock, which were paid to stockholders on April 30, 2019 and July 31, 2019, respectively. During the nine-month period ended October 31, 2018, the board of directors declared regular quarterly cash dividends, each in the amount of $0.25 per share of common stock, which were paid to stockholders on October 31, 2018, July 31, 2018 and April 30, 2018, respectively.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Oct. 31, 2019
INCOME TAXES
INCOME TAXES	NOTE 11 – INCOME TAXES Income Tax Expense Reconciliation The Company’s income tax amounts for the nine months ended October 31, 2019 and 2018 differed from corresponding amounts computed by applying the federal corporate income tax rate of 21% to loss or income before income taxes for the periods as shown in the table below. Nine Months Ended October 31, 2019 2018 Computed expected income tax benefit (expense) $ 8,070 $ (10,427) Differences resulting from: State income taxes, net of federal tax effect 185 676 Federal research and development credits — 13,866 Net operating loss deemed unrealizable (6,280) 1,730 Bad debt loss 5,026 — Foreign tax differential (766) — Adjustments and other permanent differences (1,299) (1,336) Income tax benefit $ 4,936 $ 4,509 Foreign income tax expense amounts for the nine months ended October 31, 2019 and 2018 were not material. As presented above, a valuation allowance in the amount of $6.3 million was established against the deferred tax asset amount created by the net operation loss of APC’s subsidiary in the United Kingdom for the nine months ended October 31, 2019. However, this effect was substantially offset by an income tax benefit (federal and state) for the nine months ended October 31, 2019 in the amount of approximately $5.9 million which is the estimated favorable income tax impact of bad debt loss on loans made to APC from Argan, which were determined to be uncollectible during the nine-month period ended October 31, 2019. Research and Development Tax Credits During the three-month period ended October 31, 2018, the Company 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 prior year income taxes. This study focused on project costs incurred during the three-year period ended January 31, 2018. Based on the results of the study, management identified and estimated significant amounts of income tax benefits that were not previously recognized in the Company’s operating results for any prior year reporting period. The amount of research and development tax credit benefit recognized in the consolidated financial statements last year was $16.6 million, which amount is before an unfavorable adjustment recorded in the nine-month period ended October 31, 2019 in the amount of $0.4 million. As described below, the Internal Revenue Service (the “IRS”) is examining the research and development credits that were included in the amendments of the Company’s consolidated federal income tax returns for the years ended January 31, 2016 and 2017 that were filed in January 2019. The Company does not anticipate any significant unfavorable changes to its income taxes to arise from the completion of these examinations. The amount of identified but unrecognized income tax benefits related to research and development credits as of October 31, 2019 was $4.9 million, for which the Company has established a liability for uncertain income tax return positions, most of which is included in accrued expenses. The amount of the liability was $5.1 million as of January 31, 2019. The final outcome of these uncertain tax positions is not yet determinable. However, the Company does not expect that the amount of unrecognized tax benefits will significantly change due to any settlement and/or expiration of statutes of limitation over the next 12 months. As of October 31, 2019, the Company does not believe that it has any other material uncertain income tax positions reflected in its accounts. 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, 2016 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 conducted an examination of the Company’s original federal consolidated income tax return for the year ended January 31, 2016. The IRS represented to the Company that no unfavorable adjustment items were noted during the examination. However, the Company has consented to an extension of the audit timeline which will enable the IRS to examine the amendment to the income tax return, which includes the research and development credit for the year. In addition, the IRS has commenced an examination of the Company’s amended consolidated income tax return for the year ended January 31, 2017. To date, the Company has provided supporting documentation related to the credits and written responses to certain questions as requested by the IRS. No audit findings have been communicated to the Company yet. At October 31 and January 31, 2019, the amounts of other current assets presented in the condensed consolidated balance sheets included income tax refunds and prepaid income taxes in the combined amounts of $14.9 million and $19.5 million, respectively. The income tax refunds are amounts expected to be received from taxing authorities based on the amended tax returns claiming research and development tax credits in prior years.

(LOSS) INCOME PER SHARE ATTRIBU

(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	9 Months Ended
	Oct. 31, 2019
(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.	NOTE 12 – (LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. Basic and diluted (loss) income per share are computed as follows (shares in thousands except in note(1) below the charts): Three Months Ended October 31, 2019 2018 Net (loss) income attributable to the stockholders of Argan, Inc. $ (6,855) $ 32,434 Weighted average number of shares outstanding - basic 15,633 15,569 Effects of stock awards (1) — 133 Weighted average number of shares outstanding - diluted 15,633 15,702 Net (loss) income per share attributable to the stockholders of Argan, Inc. Basic $ (0.44) $ 2.08 Diluted $ (0.44) $ 2.07 Nine Months Ended October 31, 2019 2018 Net (loss) income attributable to the stockholders of Argan, Inc. $ (35,501) $ 54,243 Weighted average number of shares outstanding - basic 15,617 15,568 Effects of stock awards (1) — 117 Weighted average number of shares outstanding - diluted 15,617 15,685 Net (loss) income per share attributable to the stockholders of Argan, Inc. Basic $ (2.27) $ 3.48 Diluted $ (2.27) $ 3.46 (1) For the three and nine months ended October 31, 2019, the weighted average numbers of shares determined on a dilutive basis excludes the effects of outstanding stock awards. All common stock equivalents are considered to be antidilutive for these periods as the Company incurred net losses in each period. The weighted average numbers for the three and nine months ended October 31, 2018 exclude the effects of antidilutive stock options covering 581,500 shares for each period; the options had exercise prices per share in excess of the average market price per share for each period.

CUSTOMER CONCENTRATIONS

CUSTOMER CONCENTRATIONS	9 Months Ended
	Oct. 31, 2019
CUSTOMER CONCENTRATIONS
CUSTOMER CONCENTRATIONS	NOTE 13 – CUSTOMER CONCENTRATIONS Historically, the majority of the Company’s consolidated revenues has related to the power industry services segment which provided 61% and 76% of consolidated revenues for the three months ended October 31, 2019 and 2018, respectively, and 49% and 80% of consolidated revenues for the nine months ended October 31, 2019 and 2018, respectively. The industrial services segment represented 34% and 21% of consolidated revenues for the three months ended October 31, 2019 and 2018, respectively, and 47% and 17% of consolidated revenues for the nine months ended October 31, 2019 and 2018, respectively. The Company’s most significant customer relationships for the three months ended October 31, 2019 included two power industry service customers, which accounted for 27% and 17% of consolidated revenues, respectively, and one industrial services customer which accounted for 10% of consolidated revenues. The Company’s most significant customer relationships for the three months ended October 31, 2018 included four power industry service customers which accounted for 20%, 17%, 13% and 12% of consolidated revenues, respectively. The Company's most significant customer relationships for the nine months ended October 31, 2019 included two power industry service customers which accounted for 13% and 10% 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 18%, 16%, 12% and 11% of consolidated revenues, respectively. The accounts receivable balances from two customers represented 21% and 14% of the corresponding consolidated balance as of October 31, 2019. Accounts receivable balances from two customers represented 25% and 15% of the corresponding consolidated balance as of January 31, 2019.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Oct. 31, 2019
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 14 – SEGMENT REPORTING Segments represent components of an enterprise for which discrete financial information is available that is evaluated regularly by the Company’s chief executive officer, who is the chief operating decision maker, in determining how to allocate resources and in assessing performance. The Company’s reportable segments recognize revenues and incur expenses, 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 months and nine months ended October 31, 2019, intersegment revenues totaled approximately $1.1 million and $2.5 million, respectively. For the three months and nine months ended October 31, 2018, intersegment revenues totaled approximately $0.4 million and $0.8 million, respectively. Summarized below are certain operating results and financial position data of the Company’s reportable business segments for the three and nine months ended October 31, 2019 and 2018. The “Other” column in each summary includes the Company’s corporate expenses. Three Months Ended Power Industrial Telecom October 31, 2019 Services Services Services Other Totals Revenues $ 35,848 $ 20,143 $ 2,415 $ — $ 58,406 Cost of revenues 31,327 19,159 1,928 — 52,414 Gross profit 4,521 984 487 — 5,992 Selling, general and administrative expenses 7,672 2,018 485 1,960 12,135 (Loss) income from operations (3,151) (1,034) 2 (1,960) (6,143) Other income, net 3,447 — — 131 3,578 Income (loss) before income taxes $ 296 $ (1,034) $ 2 $ (1,829) (2,565) Income tax expense (1,996) Net loss $ (4,561) Amortization of purchased intangible assets $ 61 $ 166 $ 45 $ — $ 272 Depreciation 176 625 97 1 899 Property, plant and equipment additions 2,659 436 170 — 3,265 Current assets $ 292,618 $ 28,373 $ 2,861 $ 82,048 $ 405,900 Current liabilities 108,474 8,744 796 943 118,957 Goodwill 18,476 12,290 — — 30,766 Total assets 324,535 55,814 4,370 87,998 472,717 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 Nine Months Ended Power Industrial Telecom October 31, 2019 Services Services Services Other Totals Revenues $ 83,941 $ 80,442 $ 6,626 $ — $ 171,009 Cost of revenues 104,759 72,958 5,361 — 183,078 Gross (loss) profit (20,818) 7,484 1,265 — (12,069) Selling, general and administrative expenses 18,977 5,959 1,535 5,290 31,761 Impairment loss 2,072 — — — 2,072 (Loss) income from operations (41,867) 1,525 (270) (5,290) (45,902) Other income, net 7,037 — — 435 7,472 (Loss) income before income taxes $ (34,830) $ 1,525 $ (270) $ (4,855) (38,430) Income tax benefit 4,936 Net loss $ (33,494) Amortization of purchased intangible assets $ 231 $ 497 $ 136 $ — $ 864 Depreciation 517 1,791 298 4 2,610 Property, plant and equipment additions 4,533 1,487 277 11 6,308 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

DESCRIPTION OF THE BUSINESS A_2

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Oct. 31, 2019
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”); 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 southeast United States and that are based on its expertise in producing, delivering and installing fabricated steel components such as piping systems and pressure vessels. 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 and Accounting Policies	Basis of Presentation The condensed consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries and any VIEs for which the Company is deemed to be the primary beneficiary. All significant inter-company balances and transactions have been eliminated in consolidation. Certain amounts in the condensed consolidated balance sheet for the prior year-end were reclassified to conform to the current period-end presentation. 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. In Note 13, the Company has provided certain financial information related to concentrations of businesses and customers. The Company’s fiscal year ends on January 31 of each year. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. 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, 2019. The condensed consolidated balance sheet as of October 31, 2019, the condensed consolidated statements of earnings and stockholders’ equity for the three and nine months ended October 31, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended October 31, 2019 and 2018 are unaudited. The condensed consolidated balance sheet as of January 31, 2019 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, 2019, 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. Accounting Policies Effective February 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, “Leases,” as amended, which herein is referred to as “ASC Topic 842.” Accordingly, operating leases with lease terms of more than twelve (12) months have been presented in the condensed consolidated balance sheet as of October 31, 2019 by adding assets for the right-of-use and liabilities for the obligations that are created by these leases (see Note 7). The Company elected to apply the transition requirements at the adoption date rather than at the beginning of the earliest comparative period presented herein. There was no cumulative effect adjustment that had to be made to retained earnings at the adoption date, and prior year consolidated financial statements were not restated. The new accounting for leases did not have a material effect on the Company’s operating results for the three and nine months ended October 31, 2019. Effective February 1, 2018, the Company adopted ASU 2014-09, “ Revenue from Contracts with Customers ,” as amended, which herein is 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. Results for the reporting periods which are included herein have been presented in accordance with the guidance of ASC Topic 606 (see Note 2). The effect of the adoption on retained earnings as of February 1, 2018 was an income tax-effected increase of less than $0.1 million. In 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The scope of this new standard covers, among other provisions, the methods that businesses shall use to estimate amounts of uncollectible notes and accounts receivable. As subsequently amended, the Company does not expect that the requirements of this new guidance, which becomes effective for the Company on February 1, 2020, will materially affect its consolidated financial statements. There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its 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.
Variable Interest Entity	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 related to the planned 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 contract that has been negotiated and announced. The account balances of the VIE are included in the condensed consolidated financial statements, including development costs incurred by the VIE during the three and nine-month periods ended October 31, 2019 and 2018, and a gain of $2.2 million related to the granting of a utility easement during the three months ended October 31, 2019. The total amounts of the project development costs included in the balances for property, plant and equipment as of October 31 and January 31, 2019 were $6.4 million and $2.1 million, respectively. At October 31 and January 31, 2019, the total amounts of notes receivable from the VIE and related accrued interest, which amounts are eliminated in consolidation, were $5.1 million and $2.1 million, respectively.

REVENUES FROM CONTRACT WITH CUS

REVENUES FROM CONTRACT WITH CUSTOMERS (Tables)	9 Months Ended
	Oct. 31, 2019
REVENUES FROM CONTRACTS WITH CUSTOMERS
Schedule of consolidated revenues disaggregated by geographical area	Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 United States $ 39,629 $ 87,892 $ 117,045 $ 320,985 United Kingdom 10,349 19,708 35,631 53,866 Republic of Ireland 8,256 8,698 18,007 18,857 Other 172 161 326 787 Totals $ 58,406 $ 116,459 $ 171,009 $ 394,495

PURCHASED INTANGIBLE ASSETS (Ta

PURCHASED INTANGIBLE ASSETS (Tables)	9 Months Ended
	Oct. 31, 2019
PURCHASED INTANGIBLE ASSETS
Schedule of company's purchased intangible assets, other than goodwill	October 31, 2019 January 31, Estimated Gross Accumulated Net 2019 (net Useful Life Amount Amortization Amount amount) Trade names 15 years $ 8,323 $ 4,442 $ 3,881 $ 4,424 Process certifications 7 years 1,897 1,062 835 1,039 Customer relationships 4-10 years 1,346 789 557 674 Totals $ 11,566 $ 6,293 $ 5,273 $ 6,137

COMMITMENTS (Tables)

COMMITMENTS (Tables)	9 Months Ended
	Oct. 31, 2019
COMMITMENTS
Schedule of future minimum lease payments for the operating leases	Years ending January 31, Remainder of 2020 $ 193 2021 485 2022 378 2023 197 2024 140 Thereafter 23 Total lease payments 1,416 Less interest portion 98 Present value of lease payments 1,318 Less current portion (included in accrued expenses) 755 Non-current portion $ 563

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Oct. 31, 2019
STOCK-BASED COMPENSATION
Schedule of stock option activity under the Company's stock plans	Summaries of stock option activity under the Company’s stock option plans for the nine months ended October 31, 2019 and 2018, 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, 2019 1,140 $ 44.01 $ 11.22 Granted 168 $ 46.67 Exercised (59) $ 26.36 Forfeited (38) $ 46.34 Outstanding, October 31, 2019 1,211 $ 45.18 $ 11.27 Exercisable, October 31, 2019 753 $ 45.81 $ 10.22 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 $ 11.33 Exercisable, October 31, 2018 709 $ 44.57 $ 11.77
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, 2019 and 2018, and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Non-vested, February 1, 2019 375 $ 10.05 Granted 168 $ 10.32 Vested (57) $ 9.28 Forfeited (28) $ 10.47 Non-vested, October 31, 2019 458 $ 10.22 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
Summary of assumptions used to estimate fair value of stock options granted	Nine Months Ended October 31, 2019 2018 Dividend yield 2.2 % 2.5 % Expected volatility 33.1 % 35.0 % Risk-free interest rate 2.0 % 2.4 % Expected life (in years) 3.3

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Oct. 31, 2019
INCOME TAXES
Schedule of components of company's income tax expense (benefit)	Nine Months Ended October 31, 2019 2018 Computed expected income tax benefit (expense) $ 8,070 $ (10,427) Differences resulting from: State income taxes, net of federal tax effect 185 676 Federal research and development credits — 13,866 Net operating loss deemed unrealizable (6,280) 1,730 Bad debt loss 5,026 — Foreign tax differential (766) — Adjustments and other permanent differences (1,299) (1,336) Income tax benefit $ 4,936 $ 4,509

(LOSS) INCOME PER SHARE ATTRI_2

(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. (Tables)	9 Months Ended
	Oct. 31, 2019
(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Schedule of computations of basic and diluted (loss) income per share	Basic and diluted (loss) income per share are computed as follows (shares in thousands except in note(1) below the charts): Three Months Ended October 31, 2019 2018 Net (loss) income attributable to the stockholders of Argan, Inc. $ (6,855) $ 32,434 Weighted average number of shares outstanding - basic 15,633 15,569 Effects of stock awards (1) — 133 Weighted average number of shares outstanding - diluted 15,633 15,702 Net (loss) income per share attributable to the stockholders of Argan, Inc. Basic $ (0.44) $ 2.08 Diluted $ (0.44) $ 2.07 Nine Months Ended October 31, 2019 2018 Net (loss) income attributable to the stockholders of Argan, Inc. $ (35,501) $ 54,243 Weighted average number of shares outstanding - basic 15,617 15,568 Effects of stock awards (1) — 117 Weighted average number of shares outstanding - diluted 15,617 15,685 Net (loss) income per share attributable to the stockholders of Argan, Inc. Basic $ (2.27) $ 3.48 Diluted $ (2.27) $ 3.46 (1) For the three and nine months ended October 31, 2019, the weighted average numbers of shares determined on a dilutive basis excludes the effects of outstanding stock awards. All common stock equivalents are considered to be antidilutive for these periods as the Company incurred net losses in each period. The weighted average numbers for the three and nine months ended October 31, 2018 exclude the effects of antidilutive stock options covering 581,500 shares for each period; the options had exercise prices per share in excess of the average market price per share for each period.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Oct. 31, 2019
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, 2019 Services Services Services Other Totals Revenues $ 35,848 $ 20,143 $ 2,415 $ — $ 58,406 Cost of revenues 31,327 19,159 1,928 — 52,414 Gross profit 4,521 984 487 — 5,992 Selling, general and administrative expenses 7,672 2,018 485 1,960 12,135 (Loss) income from operations (3,151) (1,034) 2 (1,960) (6,143) Other income, net 3,447 — — 131 3,578 Income (loss) before income taxes $ 296 $ (1,034) $ 2 $ (1,829) (2,565) Income tax expense (1,996) Net loss $ (4,561) Amortization of purchased intangible assets $ 61 $ 166 $ 45 $ — $ 272 Depreciation 176 625 97 1 899 Property, plant and equipment additions 2,659 436 170 — 3,265 Current assets $ 292,618 $ 28,373 $ 2,861 $ 82,048 $ 405,900 Current liabilities 108,474 8,744 796 943 118,957 Goodwill 18,476 12,290 — — 30,766 Total assets 324,535 55,814 4,370 87,998 472,717 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 Nine Months Ended Power Industrial Telecom October 31, 2019 Services Services Services Other Totals Revenues $ 83,941 $ 80,442 $ 6,626 $ — $ 171,009 Cost of revenues 104,759 72,958 5,361 — 183,078 Gross (loss) profit (20,818) 7,484 1,265 — (12,069) Selling, general and administrative expenses 18,977 5,959 1,535 5,290 31,761 Impairment loss 2,072 — — — 2,072 (Loss) income from operations (41,867) 1,525 (270) (5,290) (45,902) Other income, net 7,037 — — 435 7,472 (Loss) income before income taxes $ (34,830) $ 1,525 $ (270) $ (4,855) (38,430) Income tax benefit 4,936 Net loss $ (33,494) Amortization of purchased intangible assets $ 231 $ 497 $ 136 $ — $ 864 Depreciation 517 1,791 298 4 2,610 Property, plant and equipment additions 4,533 1,487 277 11 6,308 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

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - VIE - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Oct. 31, 2019	Oct. 31, 2019	Jan. 31, 2019
Description of the Business
Gain on grant of utility easement	$ 2.2
Cost of property, plant and equipment		$ 6.4	$ 2.1
Total amounts of notes receivable due from VIE	$ 5.1	$ 5.1	$ 2.1

REVENUES FROM CONTRACTS WITH _2

REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions	Oct. 31, 2019	Jan. 31, 2019
REVENUES FROM CONTRACTS WITH CUSTOMERS
Retained amounts by project owners	$ 20.3	$ 15.3

REVENUES FROM CONTRACTS WITH _3

REVENUES FROM CONTRACTS WITH CUSTOMERS - Variable Consideration (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Apr. 30, 2019	Oct. 31, 2019	Jan. 31, 2019
REVENUES FROM CONTRACTS WITH CUSTOMERS
Amounts of unpriced change orders included in transaction prices		$ 20.6	$ 18.8
Increase in cost of project		31.2
Provision for contract loss		$ 8.6
Reversal of revenues previously recorded due to a change in the percentage of completion for the contract	$ 1.4

REVENUES FROM CONTRACTS WITH _4

REVENUES FROM CONTRACTS WITH CUSTOMERS - Remaining Unsatisfied Performance Obligations (Details) $ in Millions	Oct. 31, 2019USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract backlog amount	$ 817.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract backlog (as percent)	9.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract backlog (as percent)	31.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years

REVENUES FROM CONTRACTS WITH _5

REVENUES FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Disaggregation of Revenues
Revenues earned under fixed-price (as percent)			76.00%	91.00%
Totals	$ 58,406	$ 116,459	$ 171,009	$ 394,495
United States
Disaggregation of Revenues
Totals	39,629	87,892	117,045	320,985
United Kingdom
Disaggregation of Revenues
Totals	10,349	19,708	35,631	53,866
Republic of Ireland
Disaggregation of Revenues
Totals	8,256	8,698	18,007	18,857
Other
Disaggregation of Revenues
Totals	$ 172	$ 161	$ 326	$ 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, 2019	Jan. 31, 2019
Cash and Cash Equivalents
Maturity period	147 days	250 days
Accrued interest on held-to-maturity securities	$ 0.1	$ 1.2
Weighted average annual interest rates of CDs (as a percent)	1.90%	2.60%

ACCOUNTS AND NOTES RECEIVABLE (

ACCOUNTS AND NOTES RECEIVABLE (Details) - USD ($) $ in Millions	Oct. 31, 2019	Jan. 31, 2019
ACCOUNTS AND NOTES RECEIVABLE
Outstanding balances of accounts receivable and contract assets	$ 19.6	$ 17.1

PURCHASED INTANGIBLE ASSETS - G

PURCHASED INTANGIBLE ASSETS - Goodwill and Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Oct. 31, 2019	Apr. 30, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Jan. 31, 2019
Finite-Lived Intangible Assets
Intangible Assets - Gross Carrying Amount	$ 11,566			$ 11,566
Accumulated Amortization	6,293			6,293
Other intangible assets, net	5,273			5,273		$ 6,137
Amortization of purchased intangible assets	272		$ 253	864	$ 759
Indefinite-Lived Intangible Assets
Goodwill	30,766		$ 34,329	30,766	$ 34,329	32,838
Impairment loss				2,072
GPS
Indefinite-Lived Intangible Assets
Goodwill	18,500			$ 18,500
TRC
Indefinite-Lived Intangible Assets
Goodwill						12,300
APC
Indefinite-Lived Intangible Assets
Impairment loss		$ 2,100
Trade names
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life				15 years
Finite Lived Intangible Assets - Gross Carrying Amount	8,323			$ 8,323
Accumulated Amortization	4,442			4,442
Finite Lived Intangible Assets - Net Amount	3,881			$ 3,881		4,424
Process certifications
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets - Estimated Useful Life				7 years
Finite Lived Intangible Assets - Gross Carrying Amount	1,897			$ 1,897
Accumulated Amortization	1,062			1,062
Finite Lived Intangible Assets - Net Amount	835			835		1,039
Customer relationships
Finite-Lived Intangible Assets
Finite Lived Intangible Assets - Gross Carrying Amount	1,346			1,346
Accumulated Amortization	789			789
Finite Lived Intangible Assets - Net Amount	$ 557			$ 557		$ 674
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, 2018	Oct. 31, 2019	Jan. 31, 2019
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	$ 0
Letters of credit outstanding amount		$ 10	$ 15.2

COMMITMENTS - Leases (Details)

COMMITMENTS - Leases (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Lease, practical expedients			true
Operating leases, options to extend			true
Operating leases, options to terminate			true
Operating lease expense	$ 0.2		$ 0.5
Weighted average lease term	37 months		37 months
Weighted average discount rate	4.30%		4.30%
Costs of Revenues
Rent expense	$ 0.9		$ 3.2
Rent expense		$ 1.7		$ 9.9
Selling, General and Administrative Expenses
Rent expense	$ 0.1	$ 0.2	$ 0.5	$ 0.5

COMMITMENTS - Future minimum le

COMMITMENTS - Future minimum lease payments (Details) $ in Thousands	Oct. 31, 2019USD ($)
Operating Leases
Remainder of 2020	$ 193
2021	485
2022	378
2023	197
2024	140
Thereafter	23
Total lease payments	1,416
Less interest portion	98
Present value of lease payments	1,318
Less current portion (included in accrued expenses)	755
Non-current portion	$ 563

COMMITMENTS - Warranties (Detai

COMMITMENTS - Warranties (Details)	9 Months Ended
	Oct. 31, 2019
Minimum
Warranty period	9 months
Maximum
Warranty period	24 months

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) $ in Thousands	3 Months Ended				9 Months Ended		11 Months Ended
	Oct. 31, 2019USD ($)shares	Apr. 30, 2019personshares	Oct. 31, 2018USD ($)	Apr. 30, 2018personshares	Oct. 31, 2019USD ($)shares	Oct. 31, 2018USD ($)	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Period to become exercisable					3 years
Percentage reduction in the aggregate fair value of stock option					88.50%
Stock compensation expense	$ 600		$ 300		$ 1,512	$ 1,244
Unrecognized compensation cost	3,100				3,100
Intrinsic value of outstanding stock options	$ 3,000				$ 3,000
Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares of common stock available for award | shares	443,500				443,500
Stock Options Plans
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares of common stock reserved for issuance | shares	1,700,000				1,700,000
Compensation expense recognize, period					3 years
Intrinsic value of the stock options exercised					$ 1,400	$ 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
Period to become exercisable		3 years		3 years
Number of executives | person		2		2
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		36,000

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
STOCK-BASED COMPENSATION
Shares, Outstanding, Beginning balance	1,078		1,140	889
Shares, Granted			168	192
Shares, Exercised			(59)	(3)
Shares, Forfeited			(38)
Shares, Exercisable			753	709
Shares, Outstanding, Ending balance	1,140	889	1,211	1,078
Weighted Average Exercise Price, Outstanding, Beginning balance	$ 44.11		$ 44.01	$ 44.83
Weighted Average Exercise Price, Granted			46.67	40.32
Weighted Average Exercise Price, Exercised			26.36	17.33
Weighted Average Exercise Price, Forfeited			46.34
Weighted Average Exercise Price, Exercisable			45.81	44.57
Weighted Average Exercise Price, Outstanding, Ending balance	$ 44.01	$ 44.83	$ 45.18	$ 44.11
Weighted Average Remaining Term (Years), Outstanding	7 years 6 months 15 days	7 years 10 months 28 days	7 years 3 months 11 days	7 years 7 months 17 days
Weighted Average Remaining Term (Years), Exercisable			6 years 3 months	6 years 8 months 9 days
Weighted Average Fair Value, Outstanding	$ 11.22	$ 11.74	$ 11.27	$ 11.33
Weighted Average Fair Value, Exercisable			$ 10.22	$ 11.77

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, 2019	Oct. 31, 2018
STOCK-BASED COMPENSATION
Shares, Non-vested, Beginning balance	375	302
Shares, Granted	168	192
Shares, Vested	(57)	(125)
Shares, Forfeitures	(28)
Shares, Non-vested, Ending balance	458	369
Weighted Average Fair Value, Non-vested, Beginning balance	$ 10.05	$ 13.55
Weighted Average Fair Value, Granted	10.32	9.35
Weighted Average Fair Value, Vested	9.28	16.19
Weighted Average Fair Value, Forfeitures	10.47
Weighted Average Fair Value, Non-vested, Ending balance	$ 10.22	$ 10.47

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, 2019	Oct. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award
Method used for fair value assumption	Black-Scholes pricing model	Black-Scholes pricing model
Dividend yield	2.20%	2.50%
Expected volatility	33.10%	35.00%
Risk-free interest rate	2.00%	2.40%
Expected life (in years)	3 years 3 months 18 days	3 years 3 months 18 days

CASH DIVIDENDS (Details)

CASH DIVIDENDS (Details) - $ / shares	Sep. 10, 2019	Jun. 30, 2019	Apr. 30, 2019	Oct. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Oct. 31, 2019	Oct. 31, 2018
CASH DIVIDENDS
Regular cash dividend declared per common stock	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.75	$ 0.75

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
INCOME TAXES
Federal corporate income tax rate (as percent)			21.00%	21.00%
Computed expected income tax benefit (expense)			$ 8,070	$ (10,427)
Federal research and development tax credits				13,866
State income taxes, net of federal tax effect			185	676
Net operating loss deemed unrealizable			(6,280)	1,730
Bad debt loss			(5,026)
Foreign tax differential			(766)
Adjustments and other permanent differences			(1,299)	(1,336)
Income tax benefit	$ (1,996)	$ 12,560	4,936	$ 4,509
Deferred tax valuation allowance	$ 6,300		6,300
Total income tax benefit			$ 5,900

INCOME TAXES - Research and Dev

INCOME TAXES - Research and Development Tax Credits (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2019	Jan. 31, 2019	Oct. 31, 2017
INCOME TAXES
Period for identify and quantify the amounts of research and development credits	3 years
Research and development tax credit benefit			$ 16.6
Unfavorable adjustment	$ 0.4
Unrecognized income tax benefits related to research and development credits	$ 4.9	$ 5.1

INCOME TAXES - Income Tax Retur

INCOME TAXES - Income Tax Returns (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Oct. 31, 2019	Jan. 31, 2019
INCOME TAXES
Prepaid income taxes and income taxes receivable	$ 14.9	$ 19.5

(LOSS) INCOME PER SHARE ATTRI_3

(LOSS) INCOME 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, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Net (loss) income attributable to the stockholders of Argan, Inc.	$ (6,855)	$ 32,434	$ (35,501)	$ 54,243
Weighted average number of shares outstanding - basic	15,633	15,569	15,617	15,568
Effects of stock awards		133		117
Weighted average number of shares outstanding - diluted	15,633	15,702	15,617	15,685
Basic (in Dollars per share)	$ (0.44)	$ 2.08	$ (2.27)	$ 3.48
Diluted (in Dollars per share)	$ (0.44)	$ 2.07	$ (2.27)	$ 3.46

(LOSS) INCOME PER SHARE ATTRI_4

(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. - Antidilutive Shares (Details) - shares	3 Months Ended	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2018
(LOSS) INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC.
Antidilutive stock options	581,500	581,500

CUSTOMER CONCENTRATIONS (Detail

CUSTOMER CONCENTRATIONS (Details)	Jan. 31, 2019customer	Oct. 31, 2019customer	Oct. 31, 2018customer	Oct. 31, 2019customer	Oct. 31, 2018
Accounts Receivable
Customer Concentrations
Number of customers	2			2
Major Customer One | Accounts Receivable
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer	25.00%			21.00%
Major Customer Two | Accounts Receivable
Customer Concentrations
Percentage of consolidated accounts receivable accounted by major customer	15.00%			14.00%
Power Services | Revenue
Customer Concentrations
Percentage of major customers or segments		61.00%	76.00%	49.00%	80.00%
Number of customers		2	4	2	4
Power Services | Major Customer One | Revenue
Customer Concentrations
Percentage of major customers or segments		27.00%	20.00%	13.00%	18.00%
Power Services | Major Customer Two | Revenue
Customer Concentrations
Percentage of major customers or segments		17.00%	17.00%	10.00%	16.00%
Power Services | Major Customer Three | Revenue
Customer Concentrations
Percentage of major customers or segments			13.00%		12.00%
Power Services | Major Customer Four | Revenue
Customer Concentrations
Percentage of major customers or segments			12.00%		11.00%
Industry services | Revenue
Customer Concentrations
Percentage of major customers or segments		34.00%	21.00%	47.00%	17.00%
Number of customers		1
Industry services | Major Customer One | Revenue
Customer Concentrations
Percentage of major customers or segments		10.00%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Jan. 31, 2019
Segment Reporting Information
Revenues	$ 58,406	$ 116,459	$ 171,009	$ 394,495
Cost of revenues	52,414	86,927	183,078	318,803
Gross profit	5,992	29,532	(12,069)	75,692
Selling, general and administrative expenses	12,135	11,147	31,761	31,162
Impairment loss			2,072
(Loss) income from operations	(6,143)	18,385	(45,902)	44,530
Other income, net	3,578	1,429	7,472	5,121
Income (loss) before income taxes	(2,565)	19,814	(38,430)	49,651
Income tax expense	(1,996)	12,560	4,936	4,509
Net (loss) income	(4,561)	32,374	(33,494)	54,160
Amortization of purchased intangible assets	272	253	864	759
Depreciation	899	898	2,610	2,465
Property, plant and equipment additions	3,265	2,001	6,308	7,366
Current assets	405,900	439,492	405,900	439,492	$ 416,348
Current liabilities	118,957	99,876	118,957	99,876	81,316
Goodwill	30,766	34,329	30,766	34,329	32,838
Total assets	472,717	500,769	472,717	500,769	$ 476,648
Power Services
Segment Reporting Information
Revenues	35,848	88,724	83,941	316,262
Cost of revenues	31,327	61,943	104,759	249,401
Gross profit	4,521	26,781	(20,818)	66,861
Selling, general and administrative expenses	7,672	7,178	18,977	18,563
Impairment loss			2,072
(Loss) income from operations	(3,151)	19,603	(41,867)	48,298
Other income, net	3,447	1,298	7,037	3,393
Income (loss) before income taxes	296	20,901	(34,830)	51,691
Amortization of purchased intangible assets	61	87	231	262
Depreciation	176	183	517	548
Property, plant and equipment additions	2,659	776	4,533	2,318
Current assets	292,618	347,883	292,618	347,883
Current liabilities	108,474	82,381	108,474	82,381
Goodwill	18,476	20,548	18,476	20,548
Total assets	324,535	376,871	324,535	376,871
Industrial Services
Segment Reporting Information
Revenues	20,143	24,091	80,442	68,577
Cost of revenues	19,159	22,203	72,958	61,889
Gross profit	984	1,888	7,484	6,688
Selling, general and administrative expenses	2,018	1,910	5,959	5,698
(Loss) income from operations	(1,034)	(22)	1,525	990
Other income, net				1,400
Income (loss) before income taxes	(1,034)	(22)	1,525	2,390
Amortization of purchased intangible assets	166	166	497	497
Depreciation	625	616	1,791	1,640
Property, plant and equipment additions	436	1,104	1,487	4,379
Current assets	28,373	30,519	28,373	30,519
Current liabilities	8,744	15,670	8,744	15,670
Goodwill	12,290	13,781	12,290	13,781
Total assets	55,814	60,933	55,814	60,933
Telecom Services
Segment Reporting Information
Revenues	2,415	3,644	6,626	9,656
Cost of revenues	1,928	2,781	5,361	7,513
Gross profit	487	863	1,265	2,143
Selling, general and administrative expenses	485	436	1,535	1,286
(Loss) income from operations	2	427	(270)	857
Income (loss) before income taxes	2	427	(270)	857
Amortization of purchased intangible assets	45		136
Depreciation	97	96	298	267
Property, plant and equipment additions	170	119	277	666
Current assets	2,861	3,964	2,861	3,964
Current liabilities	796	1,075	796	1,075
Total assets	4,370	5,623	4,370	5,623
Other
Segment Reporting Information
Selling, general and administrative expenses	1,960	1,623	5,290	5,615
(Loss) income from operations	(1,960)	(1,623)	(5,290)	(5,615)
Other income, net	131	131	435	328
Income (loss) before income taxes	(1,829)	(1,492)	(4,855)	(5,287)
Depreciation	1	3	4	10
Property, plant and equipment additions		2	11	3
Current assets	82,048	57,126	82,048	57,126
Current liabilities	943	750	943	750
Total assets	87,998	57,342	87,998	57,342
Intercompany Eliminations
Segment Reporting Information
Revenues	$ 1,100	$ 400	$ 2,500	$ 800