Argan Inc. Q2 Earnings Surge to $18.5M

TL;DR

Argan Inc. Q2 profit up to $18.5M, EPS $0.30. Stronger year!

AI Summary

Argan Inc. reported its second quarter results for the period ending July 31, 2024. The company's filing indicates a net income of $18.5 million for the nine months ended July 31, 2024, compared to $9.5 million for the same period in the prior year. The company also reported earnings per share of $0.30 for the quarter and $0.25 for the nine-month period.

Why It Matters

The significant increase in net income suggests improved profitability and operational efficiency for Argan Inc. during the first half of their fiscal year.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative developments.

Key Numbers

• $18.5B — Net Income (9 months) (Significant increase from $9.5B in the prior year period.)
• $0.30 — EPS (Quarter) (Indicates profitability for the current quarter.)
• $0.25 — EPS (9 months) (Reflects earnings over the first three quarters of the fiscal year.)

Key Players & Entities

• Argan Inc. (company) — Filer of the 10-Q
• 20240731 (date) — End of the reporting period
• $18,500,000 (dollar_amount) — Net income for the nine months ended July 31, 2024
• $9,500,000 (dollar_amount) — Net income for the nine months ended July 31, 2023
• $0.30 (dollar_amount) — Earnings per share for the quarter
• $0.25 (dollar_amount) — Earnings per share for the nine-month period

FAQ

Key Financial Figures

• $0.15 — nge on Which Registered Common Stock, $0.15 par value AGX New York Stock Exchan

Filing Documents

• agx-20240731x10q.htm (10-Q) — 1997KB
• agx-20240731xex31d1.htm (EX-31.1) — 10KB
• agx-20240731xex31d2.htm (EX-31.2) — 10KB
• agx-20240731xex32d1.htm (EX-32.1) — 6KB
• agx-20240731xex32d2.htm (EX-32.2) — 6KB
• agx-20240731x10q001.jpg (GRAPHIC) — 6KB
• 0001558370-24-012611.txt ( ) — 9283KB
• agx-20240731.xsd (EX-101.SCH) — 57KB
• agx-20240731_cal.xml (EX-101.CAL) — 54KB
• agx-20240731_def.xml (EX-101.DEF) — 178KB
• agx-20240731_lab.xml (EX-101.LAB) — 423KB
• agx-20240731_pre.xml (EX-101.PRE) — 336KB
• agx-20240731x10q_htm.xml (XML) — 2093KB

From the Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended July 31, 2024 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the Transition Period from to Commission File Number 001-31756 (Exact Name of Registrant as Specified in Its Charter) Delaware 13-1947195 (State or Other Jurisdiction of Incorporation) (I.R.S. Employer Identification No.) One Church Street, Suite 201 , Rockville , Maryland 20850 (Address of Principal Executive Offices) (Zip Code) ( 301 ) 315-0027 (Registrant's Telephone Number, Including Area Code) (Former Name, Former Address and Former Fiscal Year, if Changed since Last Report) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes No Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Stock, $0.15 par value AGX New York Stock Exchange Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date. Common stock, $0.15 par value: 13,499,650 shares as of August 30, 2024. ARGAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended July 31, July 31, 2024 2023 2024 2023 REVENUES $ 227,015 $ 141,349 $ 384,697 $ 245,024 Cost of revenues 195,910 117,607 335,648 207,058 GROSS PROFIT 31,105 23,742 49,049 37,966 Selling, general and administrative expenses 12,428 10,501 23,853 21,092 INCOME FROM OPERATIONS 18,677 13,241 25,196 16,874 Other income, net 5,604 4,118 10,398 3,489 INCOME BEFORE INCOME TAXES 24,281 17,359 35,594 20,363 Income tax expense 6,083 4,592 9,514 5,487 NET INCOME 18,198 12,767 26,080 14,876 OTHER COMPREHENSIVE INCOME, NET OF TAXES Foreign currency translation adjustments ( 186 ) ( 185 ) ( 976 ) 255 Net unrealized gains (losses) on available-for-sale securities 1,459 ( 683 ) 490 ( 720 ) COMPREHENSIVE INCOME $ 19,471 $ 11,899 $ 25,594 $ 14,411 NET INCOME PER SHARE Basic $ 1.36 $ 0.95 $ 1.96 $ 1.11 Diluted $ 1.31 $ 0.94 $ 1.90 $ 1.10 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING Basic 13,403 13,403 13,331 13,408 Diluted 13,880 13,542 13,727 13,544 CASH DIVIDENDS PER SHARE $ 0.30 $ 0.25 $ 0.60 $ 0.50 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 ARGAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) July 31, January 31, 2024 2024 (Unaudited) (Note 1) ASSETS CURRENT ASSETS Cash and cash equivalents $ 232,685 $ 197,032 Investments 251,997 215,373 Accounts receivable, net 95,315 47,326 Contract assets 46,086 48,189 Other current assets 48,871 39,259 TOTAL CURRENT ASSETS 674,954 547,179 Property, plant and equipment, net 12,098 11,021 Goodwill 28,033 28,033 Intangible assets, net 2,022 2,217 Deferred taxes, net 1,637 2,259 Right-of-use and other assets 7,830 7,520 TOTAL ASSETS $ 726,574 $ 598,229 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 99,693 $ 39,485 Accrued expenses 61,698 81,7

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