Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Apr. 11, 2022 | Jul. 31, 2021 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-31756 | ||
Entity Registrant Name | ARGAN INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-1947195 | ||
Entity Address, Address Line One | One Church Street, Suite 201 | ||
Entity Address, City or Town | Rockville | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20850 | ||
City Area Code | 301 | ||
Local Phone Number | 315-0027 | ||
Title of 12(b) Security | Common Stock, $0.15 par value | ||
Trading Symbol | AGX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Icfr Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 382,871,469 | ||
Entity Common Stock, Shares Outstanding | 14,815,609 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Firm ID | 248 | ||
Auditor Location | Arlington, Virginia | ||
Entity Central Index Key | 0000100591 | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
CONSOLIDATED STATEMENTS OF EARNINGS | |||
REVENUES | $ 509,370 | $ 392,206 | $ 238,997 |
Cost of revenues | 409,638 | 330,139 | 245,817 |
GROSS PROFIT (LOSS) | 99,732 | 62,067 | (6,820) |
Selling, general and administrative expenses | 47,321 | 39,041 | 44,125 |
Impairment loss | 7,901 | 4,895 | |
INCOME (LOSS) FROM OPERATIONS | 44,510 | 23,026 | (55,840) |
Other income, net | 2,552 | 1,859 | 8,075 |
INCOME (LOSS) BEFORE INCOME TAXES | 47,062 | 24,885 | (47,765) |
Income tax (expense) benefit | (11,356) | (1,074) | 7,053 |
NET INCOME (LOSS) | 35,706 | 23,811 | (40,712) |
Net (loss) income attributable to non-controlling interests | (2,538) | (40) | 1,977 |
NET INCOME (LOSS) ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | 38,244 | 23,851 | (42,689) |
Foreign currency translation adjustments | (1,370) | 35 | (770) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | $ 36,874 | $ 23,886 | $ (43,459) |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |||
Basic | $ 2.43 | $ 1.52 | $ (2.73) |
Diluted | $ 2.40 | $ 1.51 | $ (2.73) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||
Basic | 15,715 | 15,668 | 15,621 |
Diluted | 15,913 | 15,825 | 15,621 |
CASH DIVIDENDS PER SHARE | $ 1 | $ 3 | $ 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 350,472 | $ 366,671 |
Short-term investments | 90,026 | 90,055 |
Accounts receivable, net | 26,978 | 28,713 |
Contract assets | 4,904 | 26,635 |
Other current assets | 34,904 | 34,146 |
TOTAL CURRENT ASSETS | 507,284 | 546,220 |
Property, plant and equipment, net | 10,460 | 20,361 |
Goodwill | 28,033 | 27,943 |
Other purchased intangible assets, net | 3,322 | 4,097 |
Deferred taxes, net | 457 | 249 |
Right-of-use and other assets | 4,029 | 3,760 |
TOTAL ASSETS | 553,585 | 602,630 |
CURRENT LIABILITIES | ||
Accounts payable | 41,822 | 53,295 |
Accrued expenses | 53,315 | 50,750 |
Contract liabilities | 127,890 | 172,042 |
TOTAL CURRENT LIABILITIES | 223,027 | 276,087 |
Other noncurrent liabilities | 4,963 | 4,135 |
TOTAL LIABILITIES | 227,990 | 280,222 |
COMMITMENTS AND CONTINGENCIES | ||
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; 15,788,673 and 15,706,202 shares issued at January 31, 2022 and 2021, respectively; 15,257,688 and 15,702,969 shares outstanding at January 31, 2022 and 2021, respectively | 2,368 | 2,356 |
Additional paid-in capital | 158,190 | 153,315 |
Retained earnings | 188,690 | 166,110 |
Less treasury stock, at cost - 530,985 and 3,233 shares at January 31, 2022 and 2021, respectively | (20,405) | (33) |
Accumulated other comprehensive loss | (2,451) | (1,081) |
TOTAL STOCKHOLDERS' EQUITY | 326,392 | 320,667 |
Non-controlling interests | (797) | 1,741 |
TOTAL EQUITY | 325,595 | 322,408 |
TOTAL LIABILITIES AND EQUITY | $ 553,585 | $ 602,630 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2022 | Jan. 31, 2021 |
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 | 15,788,673 | 15,706,202 |
Common stock, shares outstanding | 15,257,688 | 15,702,969 |
Treasury stock, shares | 530,985 | 3,233 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total |
Balances at Jan. 31, 2019 | $ 2,337 | $ 144,994 | $ 247,616 | $ (33) | $ (346) | $ (196) | $ 394,372 |
Balances (in shares) at Jan. 31, 2019 | 15,573,869 | ||||||
Net income (loss) | (42,689) | 1,977 | (40,712) | ||||
Foreign currency translation gain (loss) | (770) | (770) | |||||
Stock compensation expense | 2,131 | 2,131 | |||||
Stock option exercises | $ 9 | 1,621 | $ 1,630 | ||||
Stock option exercises (in shares) | 61,100 | 61,000 | |||||
Cash dividends | (15,621) | $ (15,621) | |||||
Balances at Jan. 31, 2020 | $ 2,346 | 148,746 | 189,306 | (33) | (1,116) | 1,781 | 341,030 |
Balances (in shares) at Jan. 31, 2020 | 15,634,969 | ||||||
Net income (loss) | 23,851 | (40) | 23,811 | ||||
Foreign currency translation gain (loss) | 35 | 35 | |||||
Stock compensation expense | 2,938 | 2,938 | |||||
Stock option exercises | $ 10 | 1,631 | $ 1,641 | ||||
Stock option exercises (in shares) | 68,000 | 68,000 | |||||
Cash dividends | (47,047) | $ (47,047) | |||||
Balances at Jan. 31, 2021 | $ 2,356 | 153,315 | 166,110 | (33) | (1,081) | 1,741 | 322,408 |
Balances (in shares) at Jan. 31, 2021 | 15,702,969 | ||||||
Retained earnings | 166,110 | ||||||
Net income (loss) | 38,244 | (2,538) | 35,706 | ||||
Foreign currency translation gain (loss) | (1,370) | (1,370) | |||||
Stock compensation expense | 3,459 | 3,459 | |||||
Stock option exercises | $ 12 | 1,416 | $ 1,428 | ||||
Stock option exercises (in shares) | 82,471 | 42,000 | |||||
Common stock repurchases | (20,372) | $ (20,372) | |||||
Common stock repurchases (in shares) | (527,752) | (527,752) | |||||
Cash dividends | (15,664) | $ (15,664) | |||||
Balances at Jan. 31, 2022 | $ 2,368 | $ 158,190 | $ 188,690 | $ (20,405) | $ (2,451) | $ (797) | 325,595 |
Balances (in shares) at Jan. 31, 2022 | 15,257,688 | ||||||
Retained earnings | $ 188,690 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 35,706 | $ 23,811 | $ (40,712) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Impairment loss | 7,901 | 4,895 | |
Stock compensation expense | 3,459 | 2,938 | 2,131 |
Lease expense | 3,391 | 1,820 | 1,004 |
Provisions for credit losses | 2,381 | 16 | 20 |
Depreciation | 3,367 | 3,715 | 3,513 |
Amortization of purchased intangible assets | 870 | 904 | 1,136 |
Deferred income tax (benefit) expense | (208) | 7,645 | (6,640) |
Other | 424 | 625 | 869 |
Changes in operating assets and liabilities | |||
Accounts receivable | (480) | 8,463 | (1,038) |
Contract assets | 21,741 | 6,744 | 24,978 |
Other assets | (241) | (11,467) | 2,357 |
Accounts payable and accrued expenses | (5,742) | 31,442 | (3,284) |
Contract liabilities | (44,154) | 99,357 | 64,336 |
Net cash provided by operating activities | 28,415 | 176,013 | 53,565 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Maturities of short-term investments | 90,000 | 170,000 | 166,000 |
Purchases of short-term investments | (90,000) | (100,000) | (195,000) |
Investment in solar energy projects | (5,016) | (1,333) | |
Purchases of property, plant and equipment | (1,422) | (1,697) | (7,058) |
Acquisition of Lee Telecom, Inc. | (600) | ||
Net cash (used in) provided by investing activities | (7,038) | 66,970 | (36,058) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payments of cash dividends | (15,664) | (47,047) | (15,621) |
Common stock repurchases | (20,372) | ||
Proceeds from the exercise of stock options | 1,428 | 1,641 | 1,630 |
Net cash used in financing activities | (34,608) | (45,406) | (13,991) |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (2,968) | 1,731 | (471) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (16,199) | 199,308 | 3,045 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 366,671 | 167,363 | 164,318 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 350,472 | $ 366,671 | $ 167,363 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Jan. 31, 2022 | |
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 other consulting services to the power generation market, including the renewable energy sector. The wide range of customers includes independent power producers, public utilities, power plant equipment suppliers and global energy plant construction firms with projects located in the continental United States (the “U.S.”), the Republic of Ireland (“Ireland”) and the United Kingdom (the “U.K.”). Including a consolidated variable interest entity (“VIE”), 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 region of the U.S. and that are based on its expertise in producing, delivering and installing fabricated metal 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 U.S. Basis of Presentation and Significant Accounting Policies The consolidated financial statements include the accounts of Argan, its wholly owned subsidiaries, and its controlled VIE (see Note 3). All significant inter-company balances and transactions have been eliminated in consolidation. In Note 17, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 of each year. Use of Estimates Property, Plant and Equipment five Goodwill The Company identifies a potential impairment loss by comparing the fair value of a reporting unit with the reporting unit’s carrying amount, including goodwill. In the quantitative approach, the fair value of the reporting unit is estimated using various market-based and income-based valuation techniques as applicable in the particular circumstances. If the fair value of the reporting unit exceeds the related carrying amount, goodwill of the reporting unit is not deemed to be impaired. If the carrying amount of the reporting unit exceeds its fair value, a goodwill impairment loss is recorded in an amount equal to the excess of the unit’s carrying value over its fair value, not to exceed the amount of goodwill allocated to the reporting unit. An alternative method allows the Company to first assess qualitative factors to decide whether it is necessary to perform the quantitative goodwill impairment test. It is not required to calculate the fair value of a reporting unit unless management concludes, based on a qualitative assessment, that it is more likely than not that its fair value may be less than the corresponding carrying amount. The professional guidance for this evaluation identifies the types of factors which the Company should consider in conducting the qualitative assessment including macroeconomic, industry, market and entity-specific factors. Long-Lived Assets Revenue Recognition 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 current guidance 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. 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 portions of estimated gross profit, are recognized as services are provided, based on costs incurred and estimated total contract costs using the cost-to-cost approach. 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 in which it is identified and the loss amount becomes estimable. Revenues from time-and-materials contracts are recognized when the related services are provided to the customer. Almost all of the Company’s fixed-price contracts are considered to have a single performance obligation. Although multiple promises to transfer individual goods or services may exist, they are not typically distinct within the context of such contracts because contract promises included therein are interrelated or the contracts require the Company to perform critical integration so that the customer receives a completed project. Warranties provided under the Company’s contracts with customers are assurance-type primarily and are recorded as the corresponding contract work is performed. 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 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 include amounts that reflect obligations to provide goods or services for which payment has been received. Contract retentions are billed amounts which, pursuant to the terms of the applicable contract, are not paid by project owners until a defined phase of a contract or project has been completed and accepted. These retained amounts are 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 January 31, 2022, and 2021 were $40.4 million and $36.8 million, respectively. Income Taxes The Company accounts for uncertain tax positions in accordance with current accounting guidance which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on the income tax returns of the Company. Management evaluates and the Company records the effect of any uncertain tax position based on the amount that management deems is more likely than not (i.e., greater than a 50% probability) to be sustained upon examination and ultimate settlement with the tax authorities in the applicable tax jurisdiction. Interest incurred related to overdue income taxes is included in income tax expense; franchise taxes and income tax penalties are included in selling, general and administrative expenses. Share-Based Payments Fair Values The fair value amounts of reporting units (as needed for purposes of identifying goodwill impairment losses) are determined by averaging valuations that are calculated using market-based and income-based approaches deemed appropriate in the circumstances. Foreign Currency Translation |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jan. 31, 2022 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 2 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-12, Simplifying the Accounting for Income Taxes |
SPECIAL PURPOSE ENTITIES
SPECIAL PURPOSE ENTITIES | 12 Months Ended |
Jan. 31, 2022 | |
SPECIAL PURPOSE ENTITIES | |
SPECIAL PURPOSE ENTITIES | NOTE 3 – SPECIAL PURPOSE ENTITIES Variable Interest Entity In January 2018, the Company was deemed to be the primary beneficiary of a VIE that is performing the project development activities related to the planned construction of a new natural gas-fired power plant. Consequently, the account balances of the VIE are included in the Company’s consolidated financial statements, including development costs incurred by the VIE during the project development period. The total amount of the project development costs included in the balances for property, plant and equipment was $7.5 million as of January 31, 2021. Consideration for the Company’s engineering and financial support provided to the project included the right to build the power plant pursuant to a turnkey engineering, procurement and construction (“EPC”) services contract that was negotiated and announced. GPS provided financing for the development efforts through notes receivable from the consolidated VIE that was established by the project owner. GPS also provided technical support to the project. Significant development milestones were achieved by the project owner. However, a planned gas pipeline expansion that the project owner believed would supply natural gas to the power plant was rejected by Virginia’s State Corporation Commission during Fiscal 2022, which led to cancellation by PJM Interconnection LLC (“PJM”) of its interconnection service agreement with the project based on alleged failures of the project to meet required milestones. In February 2022, PJM, which operates the electricity grid in the region, received notice from the Federal Energy Regulatory Commission accepting PJM’s termination of the service agreement which effectively removed the Chickahominy Power Station from PJM’s planning queue. In summary, the project owner was unable to secure an alternative fuel-supply for the plant and the project lost its interconnection service commitment from PJM. Therefore, the project owner was unable to obtain the necessary equity financing for the project and GPS ceased providing project development funding. The repayment of the notes to GPS is overdue and the VIE has rejected the Company’s efforts to foreclose on the defaulted debt in an orderly fashion. Accordingly, the Company now believes that the completion of the development of this project has been significantly jeopardized and that it is doubtful that construction of this power plant will occur. Accordingly, during the fourth quarter of Fiscal 2022, we recorded an impairment loss related to the capitalized project development costs of this project in the amount of $7.9 million, of which $2.5 million was attributed to the non-controlling interest. In March 2022, the project owner publicly announced the cancellation of this power plant project. |
REVENUES FROM CONTRACTS WITH CU
REVENUES FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Jan. 31, 2022 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | NOTE 4 – REVENUES FROM CONTRACTS WITH CUSTOMERS 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 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. The aggregate amount of such contract variations included in the transaction prices that were used to determine project-to-date revenues at January 31, 2022 and 2021, were $7.5 million and $16.6 million, respectively. 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 any liquidated damages. At the outset of each of the Company’s contracts, the potential amounts of liquidated damages typically are not 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. Accounting for the Subcontract Loss For Fiscal 2020, the Company recorded a loss in the amount of $33.6 million related to a subcontract project covering construction activities that were performed by APC on the mechanical installation of the boiler for a biomass-fired power plant under construction in Teesside, England, the Tees Renewable Energy Plant (“TeesREP”). Completion of the works for the subcontract, as amended during Fiscal 2021, resulted in a reduction to the loss in the approximate amount of $4.1 million. Accordingly, the final amount of the TeesREP subcontract loss was $29.5 million, and the remaining subcontract loss reserve balance was eliminated as of January 31, 2021. Remaining Unsatisfied Performance Obligations (“RUPO”) The amount of RUPO represents the unrecognized revenue value of active contracts with customers as determined under the revenue recognition rules of U.S. GAAP. 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 January 31, 2022, the Company had RUPO of $397.0 million. The largest portion of RUPO at any date usually relates to EPC service contracts with typical performance durations of one to three years. However, the length of certain significant construction projects may exceed three years. The Company estimates that approximately 84% of the RUPO amount at January 31, 2022 will be included in the amount of consolidated revenues that will be recognized during Fiscal 2023 It is important to note that estimates may be changed in the future and that cancellations, deferrals, scope adjustments may occur related to work included in the amount of RUPO at January 31, 2022. Accordingly, RUPO may be adjusted to reflect project delays and cancellations, revisions to project scope and cost and foreign currency exchange fluctuations, or to revise estimates, as effects become known. Such adjustments may materially reduce future revenues below Company estimates. Disaggregation of Revenues The following table presents consolidated revenues for Fiscal 2022, Fiscal 2021 and Fiscal 2020, disaggregated by the geographic area where the corresponding projects were located: 2022 2021 2020 United States $ 456,211 $ 340,615 $ 169,299 Republic of Ireland 35,044 13,638 20,342 United Kingdom 17,521 37,836 49,028 Other 594 117 328 Consolidated Revenues $ 509,370 $ 392,206 $ 238,997 The major portion of the Company’s consolidated revenues are recognized pursuant to fixed-price contracts with most of the remaining portions earned pursuant to time-and-material contracts. Consolidated revenues are disaggregated by reportable segment in Note 17 to the consolidated financial statements. |
CASH, CASH EQUIVALENTS AND SHOR
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Jan. 31, 2022 | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | NOTE 5 – CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS At January 31, 2022 and 2021, significant amounts of cash equivalents were invested in government and prime money market funds 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. Due to market conditions, returns on money market instruments are currently minimal. The Company considers all liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Short-term investments as of January 31, 2022 and 2021 consisted solely of certificates of deposit purchased from Bank of America (the “Bank”) with weighted average initial maturities of less than one year (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. Interest income is recorded when earned and is included in other income. At January 31, 2022 and 2021, the weighted average annual interest rates of the outstanding CDs were 0.1% and 0.2%, respectively. The Company has a substantial portion of its cash on deposit in the U.S. with the Bank. The Company also maintains certain Euro-based bank accounts in Ireland and certain pound sterling-based bank accounts in the U.K. in support of the operations of APC. Management does not believe that the combined amount of the CD investments and the cash deposited with the Bank and financial institutions in Ireland and the U.K., in excess of government-insured levels, represents a material risk. |
ACCOUNTS AND NOTES RECEIVABLE
ACCOUNTS AND NOTES RECEIVABLE | 12 Months Ended |
Jan. 31, 2022 | |
ACCOUNTS AND NOTES RECEIVABLE | |
ACCOUNTS AND NOTES RECEIVABLE | NOTE 6 – ACCOUNTS AND NOTES RECEIVABLE The Company generally extends credit to a customer based on an evaluation of the customer’s financial condition without requiring tangible collateral. Exposure to losses on accounts and notes receivable is expected to differ due to the varying financial condition of each customer. The Company monitors its exposure to credit losses and may establish an allowance for credit losses based on management’s estimate of the loss that is expected to occur over the remaining life of the particular financial asset. For Fiscal 2022, the amount of the provision for credit losses expected by management was $2.4 million. The amounts of the provision for credit losses for Fiscal 2021 and Fiscal 2020 were insignificant. The allowance for credit losses as of January 31, 2022 was $2.4 million. The amount of the allowance for credit losses as of January 31, 2021 was insignificant. |
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS | 12 Months Ended |
Jan. 31, 2022 | |
PURCHASED INTANGIBLE ASSETS | |
PURCHASED INTANGIBLE ASSETS | NOTE 7 – PURCHASED INTANGIBLE ASSETS The balance of goodwill related to TRC and included in the consolidated balance sheets as of January 31, 2022 and 2021 was $9.5 million. The Company performed a goodwill impairment assessment for TRC as of November 1, 2021 with the assistance of a professional business valuation firm. It was determined that the fair value of TRC exceeded the corresponding carrying value by approximately $8.9 million; accordingly, there was no impairment loss recorded as of that date. Although the Company believes that the forecasted financial results for TRC as of November 1, 2021 are reasonable considering recent operating and current business prospects, any future results that would compare unfavorably with the projected results could result in additional goodwill impairment losses. No events related to TRC occurred during the fourth quarter of Fiscal 2022 that caused the Company to perform a subsequent impairment assessment. The goodwill impairment assessment performed for TRC as of November 1, 2019 determined that the fair value of TRC was less than the corresponding carrying value and goodwill impairment loss of approximately $2.8 million was recorded during Fiscal 2020. The fair value amount for TRC reflected a weighting of results determined using various business valuation approaches. The majority of the weighted average fair value amount determined was based on discounted future net-after-tax cash flows of the business that were forecasted at the time. 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 subcontract loss discussed in Note 4 above which was considered to be an assessment triggering event, the Company recorded an impairment loss during Fiscal 2020 in the amount of $2.1 million. The Company used a qualitative approach to assess the goodwill of GPS as of November 1, 2021, 2020 and 2019. At each date, the Company concluded that it was more likely than not that the fair value of the GPS reporting unit exceeded the corresponding carrying value by a substantial margin. Therefore, completion of the quantitative impairment assessment was considered to be unnecessary in each case. During Fiscal 2022, SMC completed the acquisition of Lee Telecom, Inc. (“LTI”) which is located in Hampton, Virginia. The acquisition represented a purchase of the assets of LTI, for which SMC paid $0.6 million cash, including customer contracts and goodwill. The changes in the balances of the Company’s goodwill for Fiscal 2022, Fiscal 2021 and Fiscal 2020 were as follows: GPS TRC APC SMC Totals Balances, February 1, 2019 $ 18,476 $ 12,290 $ 2,072 $ — $ 32,838 Impairment losses — (2,823) (2,072) — (4,895) Balances, January 31, 2020 18,476 9,467 — — 27,943 Impairment losses — — — — — Balances, January 31, 2021 18,476 9,467 — — 27,943 Impairment losses — — — — — Acquisition of LTI — — — 90 90 Balances, January 31, 2022 $ 18,476 $ 9,467 $ — $ 90 $ 28,033 The impairment losses recorded by the Company for TRC and APC since the fiscal year ended January 31, 2016, the year that both companies were acquired, represents 34% of the goodwill amount originally established for TRC and 100% of the original amount of goodwill related to APC. For income tax reporting purposes, goodwill related to acquisitions in the approximate amount of $16.5 million is being amortized on a straight-line basis over periods of 15 years. The other amounts of the Company’s goodwill are not amortizable for income tax reporting purposes. Purchased intangible assets, other than goodwill, consisted of the following elements as of January 31, 2022: January 31, 2022 January 31, Estimated Gross Accumulated Net 2021, (net Useful Life Amounts Amortization Amounts amounts) Trade names TRC 15 years $ 4,499 $ 1,849 $ 2,650 $ 2,949 GPS 15 years 3,643 3,643 — 208 Process certifications 7 years 1,897 1,671 226 497 Customer relationships 10 years 916 565 351 443 Customer contracts < 1 year 95 — 95 — Totals $ 11,050 $ 7,728 $ 3,322 $ 4,097 The Company determined the fair values of the trade names using a relief-from-royalty methodology. The Company believes that the useful life of the trade name for TRC represents the remaining number of years that such intangible asset is expected to contribute to future cash flows. In order to value the process certifications of TRC, the Company applied a reproduction cost method that required the estimation of the costs to replace the assets with certifications that would have the same functionality or utility as the acquired assets. The balance for customer relationships as of January 31, 2022 is associated primarily with TRC; the corresponding gross amount was determined at the time of the acquisition of TRC by discounting cash flows expected from existing significant customer relationships. Other than the addition to customer contracts related to the acquisition of LTI, there were no additions to other purchased intangible assets during Fiscal 2022, Fiscal 2021 or Fiscal 2020. There were not any impairment losses related to the assets for those years. Amortization expense related to purchased intangible assets for Fiscal 2022, Fiscal 2021 and Fiscal 2020 were $0.9 million, $0.9 million and $1.1 million, respectively. The future amounts of amortization related to purchased intangibles are presented below for the years ending January 31, 2023 $ 712 2024 392 2025 392 2026 376 2027 300 Thereafter 1,150 Total $ 3,322 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jan. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 8 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following at January 31, 2022 and 2021: 2022 2021 Land and improvements $ 863 $ 863 Building and improvements 5,763 5,868 Furniture, machinery and equipment 18,924 19,132 Trucks, trailers and other vehicles 5,895 5,315 Project development costs (Note 3) — 7,545 31,445 38,723 Less - accumulated depreciation 20,985 18,362 Property, plant and equipment, net $ 10,460 $ 20,361 As disclosed in Note 3, the Company determined that the carrying value of project development costs incurred by the Company’s consolidated variable interest entity in preparation for building a new gas-fired power plant became impaired during Fiscal 2022. Accordingly, an impairment loss related to this asset in the amount of $7.9 million was recorded during the period. Depreciation for property, plant and equipment was $3.4 million, $3.7 million and $3.5 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively, which amounts were charged substantially to selling, general and administrative expenses in each year. The costs of maintenance and repairs were $2.1 million, $1.9 million and $3.4 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively, which amounts were charged substantially to selling, general and administrative expenses each year as well. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Jan. 31, 2022 | |
FINANCING ARRANGEMENTS | |
FINANCING ARRANGEMENTS | NOTE 9 – FINANCING ARRANGEMENTS During April 2021, the Company amended its Amended and Restated Replacement Credit Agreement with the Bank (the “Credit Agreement”). The amendment extended the expiration date of the Credit Agreement to May 31, 2024 and reduced the borrowing rate. The Credit Agreement, as amended, includes the following features, among others: a lending commitment of $50.0 million including a revolving loan with interest at the 30-day LIBOR plus 1.6% (reduced from 2.0%), and an accordion feature which allows for an additional commitment amount of $10.0 million, subject to certain conditions. 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 as defined in the Credit Agreement. At January 31, 2022, the Company did not have any borrowings outstanding under the Credit Agreement. However, the Bank has issued outstanding letters of credit in the total amount of $21.5 million in support of the activities of APC under new customer contracts. In connection with the current project development activities of the VIE that is described in Note 3, the Bank issued a letter of credit, outside the scope of the Credit Agreement, in the approximate amount of $3.4 million as of January 31, 2022 and January 31, 2021, for which the Company has provided cash collateral. As of January 31, 2022, no amounts have been drawn against this letter of credit. 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 complies with certain financial covenants at its fiscal year-end and at each of its fiscal quarter-ends. The Credit Agreement, as amended, includes other terms, covenants and events of default that are customary for a credit facility of its size and nature, including a requirement to achieve positive adjusted earnings before interest, taxes, depreciation and amortization, as defined, over each rolling twelve-month measurement period. As of January 31, 2022 and January 31, 2021, the Company was in compliance with the covenants of the Credit Agreement. The Company expects to amend the Credit Agreement during Fiscal 2023 in order to replace LIBOR with an equivalent benchmark rate. The Company does not expect that the change will materially impact its consolidated financial statements. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Jan. 31, 2022 | |
COMMITMENTS | |
COMMITMENTS | NOTE 10 – COMMITMENTS Leases The Company 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 it 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 does not apply this 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. The Company’s operating leases primarily cover office space that expire on various dates through September 2031 and certain equipment used by the Company in the performance of its construction services contracts. Some of these equipment leases are embedded in broader agreements with subcontractors or construction equipment suppliers. The Company has no material finance leases. None of the operating leases includes significant amounts for incentives, rent holidays or price escalations. Under certain leases, the Company is obligated to pay property taxes, insurance, and maintenance costs. Operating lease right-of-use assets and associated lease liabilities are recorded 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 (currently LIBOR plus 1.6%) at the commencement date in determining the present value of future payments. The expected lease term includes any option to extend or to terminate the lease when it is reasonably certain the Company will exercise such option. Operating lease expense amounts are recorded on a straight-line basis over the expected lease terms for Fiscal 2022 and Fiscal 2021 were $3.4 million and $1.8 million, respectively. Operating lease payments for Fiscal 2022 and Fiscal 2021 were $3.3 million and $2.0 million, respectively. For operating leases as of January 31, 2022, the weighted average lease term is 46 months and the weighted average discount rate is 2.5%. 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 were $12.0 million, $7.1 million and $4.0 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. Rent expense incurred under these types of arrangements (including portions of the lease expense amounts disclosed above) and included in selling, general and administrative expenses were $1.0 million, $0.9 million and $0.7 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. The aggregate amounts of operating leases added during Fiscal 2022 and Fiscal 2021 were $3.5 million and $3.0 million, respectively. The following is a schedule of future minimum lease payments for the operating leases that were recognized in the consolidated balance sheet as of January 31, 2022: Years Ending January 31, 2023 $ 1,457 2024 538 2025 379 2026 277 2027 230 Thereafter 1,029 Total lease payments 3,910 Less interest portion 254 Present value of lease payments 3,656 Less current portion (included in accrued expenses) 1,367 Non-current portion (included in other noncurrent liabilities) $ 2,289 The future minimum lease payments presented above include amounts due under a long-term lease covering the primary offices and plant for TRC with the founder and current chief executive officer of TRC at an annual rate of $0.3 million with a term extending through April 30, 2022. The Company expects that the lease will be extended prior to the expiration of the current term. Additionally, the future minimum lease payments presented above include amounts due under a new operating lease with the former president of LTI, covering the office and warehouse space occupied by SMC’s operations located in Hampton, Virginia, for an initial term extending through December 2026 at an annual lease rate of $0.1 million. 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 or bonded projects would be available and monetary damages or other costs or losses would be determined to be probable, the Company would record such losses. Any amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress as of January 31, 2022 are not estimable. As of January 31, 2022, the revenue value of the Company’s unsatisfied bonded performance obligations, covering all of its subsidiaries, was approximately $235.1 million. In addition, there were bonds outstanding in the aggregate amount of approximately $1.0 million covering other risks including warranty obligations related to completed activities; these bonds expire at various dates over the next twelve months. Not all of our projects require bonding. As of January 31, 2022, the Company has also provided a financial guarantee, subject to certain terms and conditions, on behalf of GPS to an original equipment manufacturer in the amount of $3.6 million in support of business development efforts. During Fiscal 2022, the Company established a liability for the estimated loss related to this guarantee; the corresponding cost has been included in selling, general and administrative expenses for the year. Warranties The Company generally provides assurance-type warranties for work performed under its construction contracts. The warranties cover defects in equipment, materials, design or workmanship, and most warranty periods typically run from nine Employee Benefit Plans The Company maintains 401(k) savings plans pursuant to which the Company makes discretionary contributions for the eligible and participating employees. The Company’s expense amounts related to these defined contribution plans were approximately $2.3 million, $1.9 million and $1.7 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. The Company also maintains nonqualified plans whereunder the payments of certain amounts of incentive compensation earned by key employees are deferred for periods of four |
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES | 12 Months Ended |
Jan. 31, 2022 | |
LEGAL CONTINGENCIES | |
LEGAL CONTINGENCIES | NOTE 11 – LEGAL CONTINGENCIES In the normal course of business, the Company may have pending claims and legal proceedings. In the opinion of management, based on information available at this time, there are no current claims and proceedings that could have a material adverse effect on the consolidated financial statements as of January 31, 2022. During Fiscal 2022, GPS settled major litigation as 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”) in the US District Court for the Southern District of New York 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. In March 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. Nevertheless, and among other actions, Exelon provided contractual notice requiring GPS to vacate the construction site. Exelon asserted that GPS failed to fulfill certain obligations under the contract and was in default, withholding payments from GPS on invoices rendered to Exelon in accordance with the terms of the contract between the parties. In September 2021, Argan’s wholly owned subsidiary, GPS, reached a final settlement of all outstanding claims between the parties resulting in Exelon making a payment to GPS in the amount of $27.5 million which was in excess of the previously reported total amount of receivables and contract assets. The excess amount was included in revenues for Fiscal 2022. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 31, 2022 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 12 – STOCK-BASED COMPENSATION On June 23, 2020, the Company’s stockholders approved the adoption of the 2020 Stock Plan (the “2020 Plan”), and the allocation of 500,000 shares of the Company’s common stock for issuance thereunder. The Company’s board of directors may make share-based awards under the 2020 Plan to officers, directors and key employees. The 2020 Plan replaces the 2011 Stock Plan (the “2011 Plan”); the Company’s authority to make awards pursuant to the 2011 Plan expired on July 19, 2021. Together, the 2020 Plan and the 2011 Plan are hereinafter referred to as the “Stock Plans.” The features of the 2020 Plan are similar to those included in the 2011 Plan. Awards may include nonqualified stock options, incentive stock options, and restricted or unrestricted stock. The specific provisions for each award made pursuant to the terms of the 2020 Plan are documented in a written agreement between the Company and the awardee. All stock options awarded under the 2020 Plan shall have an exercise price per share at least equal to the common stock’s market value on the date of grant. Stock options shall have terms no longer than ten years. Typically, stock options are awarded with one three As of January 31, 2022, there were approximately 2,034,401 shares of common stock reserved for issuance under the Stock Plans; this number includes 407,250 shares of common stock available for future awards under the 2020 Plan. Stock Options A summary of stock option activity under the Company’s approved Stock Plans for Fiscal 2022, Fiscal 2021 and Fiscal 2020, 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 7.54 $ 11.22 Granted 238 $ 44.76 Exercised (61) $ 26.67 Forfeited (46) $ 48.47 Outstanding, January 31, 2020 1,271 $ 44.83 7.18 $ 11.06 Granted 242 $ 37.26 Exercised (68) $ 24.17 Forfeited (40) $ 57.44 Outstanding, January 31, 2021 1,405 $ 44.17 6.90 $ 10.39 Granted 67 $ 45.47 Exercised (42) $ 34.01 Forfeited (25) $ 54.28 Outstanding, January 31, 2022 1,405 $ 44.35 6.17 $ 10.31 Exercisable, January 31, 2021 938 $ 46.09 5.95 $ 11.58 Exercisable, January 31, 2022 1,110 $ 45.19 5.56 $ 10.98 The changes in the number of non-vested options to purchase shares of common stock for Fiscal 2022, Fiscal 2021 and Fiscal 2020, 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 238 $ 9.60 Vested (134) $ 10.25 Forfeitures (31) $ 10.28 Non-vested, January 31, 2020 448 $ 9.74 Granted 242 $ 6.53 Vested (207) $ 9.98 Forfeitures (16) $ 8.52 Non-vested, January 31, 2021 467 $ 8.01 Granted 67 $ 8.54 Vested (231) $ 8.46 Forfeitures (8) $ 7.05 Non-vested, January 31, 2022 295 $ 7.80 The total intrinsic value amounts of the stock options exercised during Fiscal 2022, Fiscal 2021 and Fiscal 2020 were $0.6 million, $1.5 million and $1.4 million, respectively. At January 31, 2022, 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 $2.2 million and $1.8 million, respectively. Restricted Stock Units The changes in the maximum number of restricted stock units for Fiscal 2022, Fiscal 2021 and Fiscal 2020 and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Outstanding, February 1, 2019 36 $ 16.63 Awarded 36 $ 22.25 Outstanding, January 31, 2020 72 $ 19.44 Awarded 45 $ 14.95 Outstanding, January 31, 2021 117 $ 17.71 Awarded 145 $ 39.52 Issued (40) $ 20.64 Outstanding, January 31, 2022 222 $ 31.48 Performance-Based Restricted Stock Units Pursuant to the terms of the Stock Plan and as described in the corresponding agreements with the executives, the Company awarded performance-based restricted stock units to four senior executives in April 2021 and two senior executives in 2020 and 2019 covering up to 49,000, 45,000 and 36,000 maximum total numbers of shares of common stock, respectively, 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 issuance of the number of shares earned under the agreements, free of related restrictions, depends on the total return performance of the Company’s common stock measured against the performance of a peer-group of common stocks over three-year periods. During Fiscal 2022, the three-year vesting period for the restricted stock units awarded in April 2018 concluded and it was determined that 40,471 shares of common stock, including shares attributable to cash dividends, were earned pursuant to the performance criteria and other terms of the 2011 Plan and the applicable award agreements. These shares were issued to the awardees in April 2021. Renewable Performance-Based Restricted Stock Units In April 2021, the Company awarded renewable energy project performance-based restricted stock units to two senior executives at GPS as described in the corresponding agreements with the executives. Each award covers 5,000 shares of the Company’s common stock plus a number of shares to be determined based on the amount of cash dividends deemed paid on shares earned pursuant to the awards. The issuance of the shares, free of restrictions, shall be based on the success of GPS in increasing the amount of RUPO related to renewable energy projects, as defined, during certain periods within the three-year term of each award. The awards establish RUPO hurdle amounts for separate periods of time defined in the awards, and assign a certain portion of the award shares to each hurdle. If a RUPO hurdle is exceeded (each is mutually exclusive), the number of shares earned based on the achievement of the applicable hurdle will be issued to the executives at the end of the corresponding period. If a RUPO hurdle amount is not achieved within the period of time defined in the awards, the award shares assigned to the hurdle are forfeited. Time-Based Restricted Stock Units During Fiscal 2022, the Company also awarded time-based restricted stock units covering a total of 82,250 shares of common stock to members of the Company’s board of directors, senior executives and other employees pursuant to the terms of the Stock Plans and as described in the corresponding agreements with each awardee. Time-based restricted stock units covering 51,750 shares will vest in equal installments on each of the first three anniversaries of the award date. Accordingly, at each vesting date, one Fair Value The fair value amounts of stock options and restricted stock units are recorded as stock compensation expense over the terms of the corresponding awards. Expense amounts related to stock awards were $3.5 million, $2.9 million and $2.1 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. At January 31, 2022, there was $6.0 million in unrecognized compensation cost related to outstanding stock awards that the Company expects to expense over the next three years. The Company estimates the weighted average fair value of stock options on the date of award using a Black-Scholes option 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. Risk-free interest rates are determined by blending the rates for three- The fair value amounts for the performance-based restricted stock units have been 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 (50% of the maximum number), by assigning equal probabilities to the thirteen possible payout outcomes at the end of each three-year term, and by computing the weighted average of the outcome amounts. For each award, 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. For the renewable performance-based restricted stock units, which were awarded for the first time in April 2021, the fair value of each award was determined to be 50% of the aggregate market value of the shares of common stock covered by the award on the date of the award. For the time-based restricted stock units, the fair value of each award equals the aggregate market price for the number of shares covered by each award on the date of award. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE 13 – INCOME TAXES Reconciliations of Income Tax (Expense) Benefit The components of the amounts of income tax (expense) benefit for Fiscal 2022, Fiscal 2021 and Fiscal 2020 are presented below: 2022 2021 2020 Current: Federal $ (10,921) $ 6,654 $ 77 State (643) (83) 336 (11,564) 6,571 413 Deferred: Federal 341 (7,720) 6,825 State (133) 75 (185) 208 (7,645) 6,640 Income tax (expense) benefit $ (11,356) $ (1,074) $ 7,053 The amounts of interest and penalties related to income taxes that were incurred by the Company during Fiscal 2022, Fiscal 2021 and Fiscal 2020 were not material. Foreign income tax expense amounts for Fiscal 2022, Fiscal 2021 and Fiscal 2020 were not material. The Company’s income tax amounts differed from corresponding amounts computed by applying the federal corporate income tax rate of 21% to the income (loss) before income taxes for Fiscal 2022, Fiscal 2021 and Fiscal 2020 as presented below: 2022 2021 2020 Computed expected income tax (expense) benefit $ (9,883) $ (5,226) $ 10,030 Difference resulting from: State income taxes, net of federal tax effect (614) (7) 81 Excess executive compensation (1,296) (420) (420) Bad debt loss (425) 160 6,205 Foreign tax rate differential 352 173 (722) Net operating loss carryback benefit (see discussion below) — 4,392 — Elimination of net operating loss benefits — — (7,239) Goodwill impairment losses — — (763) Other permanent differences and adjustments, net 510 (146) (119) Income tax (expense) benefit $ (11,356) $ (1,074) $ 7,053 A valuation allowance in the amount of $7.1 million was established against the deferred tax asset amount created by the net operating loss of APC’s subsidiary in the U.K. for Fiscal 2020. However, this effect was substantially offset by an income tax benefit for Fiscal 2020 in the amount of approximately $6.2 million that was the estimated favorable federal income tax impact of bad debt loss on certain loans made to APC from Argan, which were determined to be uncollectible during Fiscal 2020. A portion of the bad debt loss was reversed for Fiscal 2022 which resulted in charge to federal income tax expense for the period in the amount of $0.4 million. Net Operating Loss (“NOL”) Carryback In an effort to combat the adverse economic impacts of the COVID-19 crisis, the US Congress passed the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”) that was signed into law on March 27, 2020. This wide-ranging legislation was an emergency economic stimulus package that included spending and tax breaks aimed at strengthening the U.S. economy and funding a nationwide effort to curtail the effects of the outbreak of COVID-19. The tax changes of the CARES Act included a temporary suspension of the limitations on the future utilization of certain NOLs and re-established a carryback period for certain losses to five years. The NOLs eligible for carryback under the CARES Act include the Company’s domestic NOL for Fiscal 2020, which was approximately $39.5 million. The Company made the appropriate filing with the IRS requesting carryback refunds of income taxes paid for the years ended January 31, 2017, 2016 and 2015. A deferred tax asset in the amount of $8.3 million was recorded as of January 31, 2020 associated with the income tax benefit of the NOL for Fiscal 2020. With the enactment of the CARES Act, the asset was moved to income taxes receivable (included in other current assets in the consolidated financial statements as of January 31, 2022 and 2021) where the value was increased to approximately $12.7 million. The carryback provided a favorable rate benefit for the Company as the loss, which was incurred in a year where the statutory federal tax rate was 21%, has been carried back to tax years where the tax rate was higher. The net amount of this additional income tax benefit, approximately $4.4 million, was recorded in Fiscal 2021. Research and Development Tax Credits During Fiscal 2019, 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 tax credits that may have been 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 Fiscal 2019 was $16.6 million. During Fiscal 2020, deferred tax assets related to the research and development tax credits were reduced by $0.4 million. As described below, the Internal Revenue Service (the “IRS”) has issued its revenue agents reports relating to the examinations of the Company’s consolidated federal income tax returns for Fiscal 2016, Fiscal 2017 and Fiscal 2018; the tax returns for the earlier two years were amended to include research and development tax credits. The amount of identified but unrecognized income tax benefits related to research and development tax credits as of January 31, 2022 and 2021 is $5.0 million, for which the Company has established a liability for uncertain income tax return positions, most of which is included in accrued expenses as of January 31, 2022 and 2021. 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 expiration of statutes of limitation over the next 12 months. However, it is possible that the disputes with the IRS related to the Company’s federal research and development tax credits (see discussion of income tax returns below) could be resolved within the next twelve months depending on the results of the scheduled appeals hearing with the IRS. If resolution of the disputes occurs, it would result in the Company’s elimination of at least a substantial portion of the amount of the liability for uncertain income tax positions discussed above. As of January 31, 2022, the Company does not believe that it has any other material uncertain income tax positions reflected in its accounts. As of January 31, 2022 and 2021, the balances of other current assets in the consolidated balance sheet included total income tax refunds receivable and prepaid income taxes in the amounts of approximately $29.5 million and $26.9 million, respectively. The income tax refunds include the amounts expected to be received from the IRS upon completion of the tax return examination appeals process identified below and the amount expected to be received from the IRS upon its processing of the Company’s NOL carryback refund request discussed above. Deferred Taxes The tax effects of temporary differences that are reflected in deferred taxes as of January 31, 2022 and 2021 included the following: 2022 2021 Assets: Net operating loss carryforwards $ 14,360 $ 14,192 Stock awards 2,325 2,549 Lease liabilities 772 775 Research and development credit carryforwards 269 102 Purchased intangibles 19 234 Accrued expenses and other 1,828 1,422 19,573 19,274 Liabilities: Purchased intangibles (3,533) (3,513) Property and equipment (1,334) (1,801) Construction contracts (1,034) (968) Right-of-use assets (768) (770) Other (43) (176) (6,712) (7,228) Valuation allowances (12,404) (11,797) Deferred tax assets $ 457 $ 249 The Company acquired unused NOLs for federal income tax reporting purposes from TRC that are subject to limitations imposed by Section 382 of the Internal Revenue Code of 1986, as amended. These losses are subject to annual limits that reduce the aggregate amount of NOLs available to the Company in the future to approximately $5.9 million. These NOLs are available to offset future taxable income and, if not utilized, begin expiring during 2032. The Company also has certain NOLs that will be available to the Company for state income tax reporting purposes that are substantially similar to the federal NOLs. The Company’s ability to realize deferred tax assets, including those related to the NOLs discussed above, depends primarily upon the generation of sufficient future taxable income to allow for the Company’s use of temporarily deferred deductions and tax planning strategies. If such estimates and assumptions change in the future, the Company may be required to record additional valuation allowances against some or all of its deferred tax assets resulting in additional income tax expense in the future. At this time, based substantially on the strong earnings performance of the Company’s power industry services reporting segment, management believes that it is more likely than not that the Company will realize the benefit of significantly all of its deferred tax assets. Income Tax Returns The Company is subject to federal and state income taxes in the U.S., and income taxes in Ireland and the U.K. 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, 2018 except for several notable exceptions including Ireland, the U.K. and several states where the open periods are one year longer. The IRS conducted examinations of the Company’s amended federal consolidated income tax returns for Fiscal 2016 and Fiscal 2017, and the Company’s federal income tax return for Fiscal 2018 and has issued its final revenue agents reports that document its understanding of the facts, attempts to summarize the Company’s arguments in support of the research and development claims and states its position which disagrees with the Company’s treatment of a substantial amount of the costs that support the Company’s claims for Fiscal 2016, Fiscal 2017 and Fiscal 2018. The Company believes that its arguments are sound and that the reports do not present any new facts relating to the issues or make any new arguments that would cause it to make any adjustments to its accounting for the research and development claims as of January 31, 2022. The Company has submitted formal protests of the findings of the IRS examiner and is pursuing its income tax positions with the IRS through the established protest and appeals process. The Company has also formally protested the conclusions reached by two states, where the Company filed tax returns reflecting the benefits of certain research and development credits, that the credits are not allowable. The Company expects that the ultimate settlement of the income tax disputes will be resolved on bases favorable to the Company. Solar Energy Projects During Fiscal 2022 and Fiscal 2021, the Company invested approximately $5.0 million and $1.3 million, respectively, in limited liability companies that make equity investments in solar energy projects that are eligible to receive energy tax credits. The passive investments have been accounted for under the equity method and the net balances have been reported within other assets in our consolidated balance sheets. Each tax credit, when recognized, is recorded as a reduction of the corresponding investment balance with an offsetting reduction in the balance of accrued taxes payable in accordance with the deferral method, each representing a non-cash transaction. Investment tax credits in the approximate amounts of $4.5 million and $1.1 million were recognized during Fiscal 2022 and Fiscal 2021, respectively. As of January 31, 2022, the Company’s had no remaining cash investment commitments related to these projects. During Fiscal 2022 and Fiscal 2021, the corresponding investment balances were adjusted to reflect the Company’s share of the losses of the investment entities, which have been included as other expense in the Company’s consolidated statements of earnings. The Company has also established deferred taxes related to the differences in the book and tax bases of the investments. These investments are expected to provide positive overall returns over their six-year expected lives. Supplemental Cash Flow Information The amounts of cash paid for income taxes during Fiscal 2022, Fiscal 2021 and Fiscal 2020 were $14.0 million, $5.5 million and $3.1 million, respectively. During Fiscal 2022, Fiscal 2021 and Fiscal 2020, the Company received cash refunds of previously paid income taxes from various taxing authorities in the total amounts of $0.2 million, $1.0 million and $8.4 million, respectively. |
NET INCOME (LOSS) PER SHARE ATT
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN | 12 Months Ended |
Jan. 31, 2022 | |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN | |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN | NOTE 14 – NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN Basic and diluted net income (loss) per share amounts for Fiscal 2022, Fiscal 2021 and Fiscal 2020 are computed as follows (shares in thousands except in notes (1) and (2) below the chart): 2022 2021 2020 Net income (loss) attributable to the stockholders of Argan $ 38,244 $ 23,851 $ (42,689) Weighted average number of shares outstanding – basic 15,715 15,668 15,621 Effect of stock awards (1)(2) 198 157 — Weighted average number of shares outstanding – diluted 15,913 15,825 15,621 Net income (loss) per share attributable to the stockholders of Argan Basic $ 2.43 $ 1.52 $ (2.73) Diluted $ 2.40 $ 1.51 $ (2.73) (1) The weighted average numbers of shares determined on a dilutive basis for Fiscal 2022 and Fiscal 2021 exclude the effects of antidilutive stock options covering 570,167 and 638,001 shares of common stock, respectively, as the options had exercise prices per share in excess of the average market price per share for the applicable year. (2) For Fiscal 2020, the weighted average number of shares determined on a dilutive basis excludes any effect of outstanding stock awards which covered 1,303,000 shares of the Company's common stock as of January 31, 2020 as the Company incurred a net loss for the year. |
CASH DIVIDENDS AND COMMON STOCK
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | 12 Months Ended |
Jan. 31, 2022 | |
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | |
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | NOTE 15 – CASH DIVIDENDS AND COMMON STOCK REPURCHASES During Fiscal 2022, Fiscal 2021 and Fiscal 2020, the Company made regular quarterly cash dividend payments of $0.25 per share of common stock. The Company also made special cash dividend payments in the amount of $1.00 per share of common stock in July 2020 and December 2020. Pursuant to authorizations provided by the Company’s board of directors, the Company began to repurchase shares of its common stock in November 2021. By January 31, 2022, the Company had repurchased 527,752 shares of common stock, all on the open market, for an aggregate price of approximately $20.4 million, or $38.60 per share. |
CUSTOMER CONCENTRATIONS
CUSTOMER CONCENTRATIONS | 12 Months Ended |
Jan. 31, 2022 | |
CUSTOMER CONCENTRATIONS | |
CUSTOMER CONCENTRATIONS | NOTE 16 – CUSTOMER CONCENTRATIONS The majority of the Company’s consolidated revenues relate to performance by the power industry services segment which provided 78%, 81% and 57% of consolidated revenues for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. For Fiscal 2022, Fiscal 2021 and Fiscal 2020, the Company’s industrial services segment represented 19%, 17% and 40% of consolidated revenues, respectively. For Fiscal 2022, the Company’s most significant customer relationships included one power industry service customer which accounted for 57% of consolidated revenues. For Fiscal 2021, the Company’s most significant customer relationships included one power industry service customer which accounted for 67% of consolidated revenues. For Fiscal 2020, the Company’s most significant customer relationships included two power industry service customers which accounted for 22% and 15% of consolidated revenues, respectively. The accounts receivable balances from three major customers represented 22%, 15% and 12% of the corresponding consolidated balance as of January 31, 2022 and accounts receivable balances from three major customers represented 26%, 11% and 11% of the corresponding consolidated balance as of January 31, 2021. The contract asset balances related to two major customers represented 31% and 13% of the corresponding consolidated balance as of January 31, 2022. Contract asset balances related to two major customers represented 64% and 12% of the corresponding consolidated balance as of January 31, 2021 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jan. 31, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 17 – 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 Fiscal 2022, 2021 and 2020, intersegment revenues totaled approximately $2.8 million, $4.3 million and $3.3 million, respectively. Intersegment revenues for the aforementioned periods primarily related to services provided by the industrial fabrication and field services segment to the power industry services segment and were based on prices negotiated by the parties. Summarized below are certain operating results and financial position data of the Company’s reportable business segments for Fiscal 2022, Fiscal 2021 and Fiscal 2020. The “Other” column in each summary includes the Company’s corporate expenses. Year Ended Power Industrial Telecom January 31, 2022 Services Services Services Other Totals Revenues $ 398,089 $ 97,890 $ 13,391 $ — $ 509,370 Cost of revenues 317,130 81,391 11,117 — 409,638 Gross profit 80,959 16,499 2,274 — 99,732 Selling, general and administrative expenses 28,323 8,167 2,146 8,685 47,321 Impairment loss 7,901 — — — 7,901 Income (loss) from operations 44,735 8,332 128 (8,685) 44,510 Other income, net 2,545 — — 7 2,552 Income (loss) before income taxes $ 47,280 $ 8,332 $ 128 $ (8,678) 47,062 Income tax expense (11,356) Net income $ 35,706 Amortization of intangibles $ 208 $ 662 $ — $ — $ 870 Depreciation 605 2,325 433 4 3,367 Property, plant and equipment additions 713 107 597 5 1,422 Current assets $ 322,448 $ 25,681 $ 2,957 $ 156,198 $ 507,284 Current liabilities 209,829 9,534 1,916 1,748 223,027 Goodwill 18,476 9,467 90 — 28,033 Total assets 345,956 44,002 6,741 156,886 553,585 Year Ended Power Industrial Telecom January 31, 2021 Services Services Services Other Totals Revenues $ 319,353 $ 65,263 $ 7,590 $ — $ 392,206 Cost of revenues 266,993 57,257 5,889 — 330,139 Gross profit 52,360 8,006 1,701 — 62,067 Selling, general and administrative expenses 21,795 7,358 1,987 7,901 39,041 Income (loss) from operations 30,565 648 (286) (7,901) 23,026 Other income, net 1,777 — — 82 1,859 Income (loss) before income taxes $ 32,342 $ 648 $ (286) $ (7,819) 24,885 Income tax expense (1,074) Net income $ 23,811 Amortization of intangibles $ 242 $ 662 $ — $ — $ 904 Depreciation 704 2,592 414 5 3,715 Property, plant and equipment additions 1,043 338 316 — 1,697 Current assets $ 360,552 $ 22,014 $ 1,959 $ 161,695 $ 546,220 Current liabilities 261,030 13,119 953 985 276,087 Goodwill 18,476 9,467 — — 27,943 Total assets 394,014 42,998 3,406 162,212 602,630 Year Ended Power Industrial Telecom January 31, 2020 Services Services Services Other Totals Revenues $ 135,729 $ 94,682 $ 8,586 $ — $ 238,997 Cost of revenues 152,854 85,859 7,104 — 245,817 Gross (loss) profit (17,125) 8,823 1,482 — (6,820) Selling, general and administrative expenses 26,835 7,810 2,135 7,345 44,125 Impairment losses 2,072 2,823 — — 4,895 Loss from operations (46,032) (1,810) (653) (7,345) (55,840) Other income, net 7,535 — — 540 8,075 Loss before income taxes $ (38,497) $ (1,810) $ (653) $ (6,805) (47,765) Income tax benefit 7,053 Net loss $ (40,712) Amortization of intangibles $ 291 $ 664 $ 181 $ — $ 1,136 Depreciation 694 2,418 396 5 3,513 Property, plant and equipment additions 5,069 1,638 340 11 7,058 Current assets $ 320,257 $ 21,766 $ 2,938 $ 76,794 $ 421,755 Current liabilities 135,518 6,441 796 1,279 144,034 Goodwill 18,476 9,467 — — 27,943 Total assets 352,034 46,321 4,549 84,636 487,540 |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
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 other consulting services to the power generation market, including the renewable energy sector. The wide range of customers includes independent power producers, public utilities, power plant equipment suppliers and global energy plant construction firms with projects located in the continental United States (the “U.S.”), the Republic of Ireland (“Ireland”) and the United Kingdom (the “U.K.”). Including a consolidated variable interest entity (“VIE”), 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 region of the U.S. and that are based on its expertise in producing, delivering and installing fabricated metal 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 U.S. |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The consolidated financial statements include the accounts of Argan, its wholly owned subsidiaries, and its controlled VIE (see Note 3). All significant inter-company balances and transactions have been eliminated in consolidation. In Note 17, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 of each year. |
Use of Estimates | Use of Estimates |
Property, Plant and Equipment | Property, Plant and Equipment five |
Goodwill | Goodwill The Company identifies a potential impairment loss by comparing the fair value of a reporting unit with the reporting unit’s carrying amount, including goodwill. In the quantitative approach, the fair value of the reporting unit is estimated using various market-based and income-based valuation techniques as applicable in the particular circumstances. If the fair value of the reporting unit exceeds the related carrying amount, goodwill of the reporting unit is not deemed to be impaired. If the carrying amount of the reporting unit exceeds its fair value, a goodwill impairment loss is recorded in an amount equal to the excess of the unit’s carrying value over its fair value, not to exceed the amount of goodwill allocated to the reporting unit. An alternative method allows the Company to first assess qualitative factors to decide whether it is necessary to perform the quantitative goodwill impairment test. It is not required to calculate the fair value of a reporting unit unless management concludes, based on a qualitative assessment, that it is more likely than not that its fair value may be less than the corresponding carrying amount. The professional guidance for this evaluation identifies the types of factors which the Company should consider in conducting the qualitative assessment including macroeconomic, industry, market and entity-specific factors. |
Long-Lived Assets | Long-Lived Assets |
Revenue Recognition | Revenue Recognition 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 current guidance 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. 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 portions of estimated gross profit, are recognized as services are provided, based on costs incurred and estimated total contract costs using the cost-to-cost approach. 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 in which it is identified and the loss amount becomes estimable. Revenues from time-and-materials contracts are recognized when the related services are provided to the customer. Almost all of the Company’s fixed-price contracts are considered to have a single performance obligation. Although multiple promises to transfer individual goods or services may exist, they are not typically distinct within the context of such contracts because contract promises included therein are interrelated or the contracts require the Company to perform critical integration so that the customer receives a completed project. Warranties provided under the Company’s contracts with customers are assurance-type primarily and are recorded as the corresponding contract work is performed. 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 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 include amounts that reflect obligations to provide goods or services for which payment has been received. Contract retentions are billed amounts which, pursuant to the terms of the applicable contract, are not paid by project owners until a defined phase of a contract or project has been completed and accepted. These retained amounts are 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 January 31, 2022, and 2021 were $40.4 million and $36.8 million, respectively. |
Income Taxes | Income Taxes The Company accounts for uncertain tax positions in accordance with current accounting guidance which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on the income tax returns of the Company. Management evaluates and the Company records the effect of any uncertain tax position based on the amount that management deems is more likely than not (i.e., greater than a 50% probability) to be sustained upon examination and ultimate settlement with the tax authorities in the applicable tax jurisdiction. Interest incurred related to overdue income taxes is included in income tax expense; franchise taxes and income tax penalties are included in selling, general and administrative expenses. |
Fair Values | Fair Values The fair value amounts of reporting units (as needed for purposes of identifying goodwill impairment losses) are determined by averaging valuations that are calculated using market-based and income-based approaches deemed appropriate in the circumstances. |
Share-Based Payments | Share-Based Payments |
Foreign Currency Translation | Foreign Currency Translation |
REVENUES FROM CONTRACTS WITH _2
REVENUES FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
Schedule of consolidated revenues disaggregated by geographical area | 2022 2021 2020 United States $ 456,211 $ 340,615 $ 169,299 Republic of Ireland 35,044 13,638 20,342 United Kingdom 17,521 37,836 49,028 Other 594 117 328 Consolidated Revenues $ 509,370 $ 392,206 $ 238,997 |
PURCHASED INTANGIBLE ASSETS (Ta
PURCHASED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
PURCHASED INTANGIBLE ASSETS | |
Schedule of changes in the balances of goodwill | GPS TRC APC SMC Totals Balances, February 1, 2019 $ 18,476 $ 12,290 $ 2,072 $ — $ 32,838 Impairment losses — (2,823) (2,072) — (4,895) Balances, January 31, 2020 18,476 9,467 — — 27,943 Impairment losses — — — — — Balances, January 31, 2021 18,476 9,467 — — 27,943 Impairment losses — — — — — Acquisition of LTI — — — 90 90 Balances, January 31, 2022 $ 18,476 $ 9,467 $ — $ 90 $ 28,033 |
Schedule of company's purchased intangible assets, other than goodwill | January 31, 2022 January 31, Estimated Gross Accumulated Net 2021, (net Useful Life Amounts Amortization Amounts amounts) Trade names TRC 15 years $ 4,499 $ 1,849 $ 2,650 $ 2,949 GPS 15 years 3,643 3,643 — 208 Process certifications 7 years 1,897 1,671 226 497 Customer relationships 10 years 916 565 351 443 Customer contracts < 1 year 95 — 95 — Totals $ 11,050 $ 7,728 $ 3,322 $ 4,097 |
Schedule of expected amortization expense | The future amounts of amortization related to purchased intangibles are presented below for the years ending January 31, 2023 $ 712 2024 392 2025 392 2026 376 2027 300 Thereafter 1,150 Total $ 3,322 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
Summary of property, plant and equipment | 2022 2021 Land and improvements $ 863 $ 863 Building and improvements 5,763 5,868 Furniture, machinery and equipment 18,924 19,132 Trucks, trailers and other vehicles 5,895 5,315 Project development costs (Note 3) — 7,545 31,445 38,723 Less - accumulated depreciation 20,985 18,362 Property, plant and equipment, net $ 10,460 $ 20,361 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
COMMITMENTS | |
Schedule of future minimum lease payments for the operating leases | Years Ending January 31, 2023 $ 1,457 2024 538 2025 379 2026 277 2027 230 Thereafter 1,029 Total lease payments 3,910 Less interest portion 254 Present value of lease payments 3,656 Less current portion (included in accrued expenses) 1,367 Non-current portion (included in other noncurrent liabilities) $ 2,289 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
STOCK-BASED COMPENSATION | |
Schedule of stock option activity under the Company's stock plans | A summary of stock option activity under the Company’s approved Stock Plans for Fiscal 2022, Fiscal 2021 and Fiscal 2020, 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 7.54 $ 11.22 Granted 238 $ 44.76 Exercised (61) $ 26.67 Forfeited (46) $ 48.47 Outstanding, January 31, 2020 1,271 $ 44.83 7.18 $ 11.06 Granted 242 $ 37.26 Exercised (68) $ 24.17 Forfeited (40) $ 57.44 Outstanding, January 31, 2021 1,405 $ 44.17 6.90 $ 10.39 Granted 67 $ 45.47 Exercised (42) $ 34.01 Forfeited (25) $ 54.28 Outstanding, January 31, 2022 1,405 $ 44.35 6.17 $ 10.31 Exercisable, January 31, 2021 938 $ 46.09 5.95 $ 11.58 Exercisable, January 31, 2022 1,110 $ 45.19 5.56 $ 10.98 |
Schedule of changes in the number of non-vested options to purchase shares of common stock | Exercise Remaining Shares Price Term (years) Fair Value Outstanding, February 1, 2019 1,140 $ 44.01 7.54 $ 11.22 Granted 238 $ 44.76 Exercised (61) $ 26.67 Forfeited (46) $ 48.47 Outstanding, January 31, 2020 1,271 $ 44.83 7.18 $ 11.06 Granted 242 $ 37.26 Exercised (68) $ 24.17 Forfeited (40) $ 57.44 Outstanding, January 31, 2021 1,405 $ 44.17 6.90 $ 10.39 Granted 67 $ 45.47 Exercised (42) $ 34.01 Forfeited (25) $ 54.28 Outstanding, January 31, 2022 1,405 $ 44.35 6.17 $ 10.31 Exercisable, January 31, 2021 938 $ 46.09 5.95 $ 11.58 Exercisable, January 31, 2022 1,110 $ 45.19 5.56 $ 10.98 |
Schedule of changes in restricted stock units | The changes in the maximum number of restricted stock units for Fiscal 2022, Fiscal 2021 and Fiscal 2020 and the weighted average fair value per share for each number, are presented below (shares in thousands): Shares Fair Value Outstanding, February 1, 2019 36 $ 16.63 Awarded 36 $ 22.25 Outstanding, January 31, 2020 72 $ 19.44 Awarded 45 $ 14.95 Outstanding, January 31, 2021 117 $ 17.71 Awarded 145 $ 39.52 Issued (40) $ 20.64 Outstanding, January 31, 2022 222 $ 31.48 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
INCOME TAXES | |
Schedule of components of company's income tax (expense) benefit | 2022 2021 2020 Current: Federal $ (10,921) $ 6,654 $ 77 State (643) (83) 336 (11,564) 6,571 413 Deferred: Federal 341 (7,720) 6,825 State (133) 75 (185) 208 (7,645) 6,640 Income tax (expense) benefit $ (11,356) $ (1,074) $ 7,053 |
Schedule of actual income tax expense amounts | 2022 2021 2020 Computed expected income tax (expense) benefit $ (9,883) $ (5,226) $ 10,030 Difference resulting from: State income taxes, net of federal tax effect (614) (7) 81 Excess executive compensation (1,296) (420) (420) Bad debt loss (425) 160 6,205 Foreign tax rate differential 352 173 (722) Net operating loss carryback benefit (see discussion below) — 4,392 — Elimination of net operating loss benefits — — (7,239) Goodwill impairment losses — — (763) Other permanent differences and adjustments, net 510 (146) (119) Income tax (expense) benefit $ (11,356) $ (1,074) $ 7,053 |
Schedule of tax effects of temporary differences that gave rise to deferred tax assets and liabilities | 2022 2021 Assets: Net operating loss carryforwards $ 14,360 $ 14,192 Stock awards 2,325 2,549 Lease liabilities 772 775 Research and development credit carryforwards 269 102 Purchased intangibles 19 234 Accrued expenses and other 1,828 1,422 19,573 19,274 Liabilities: Purchased intangibles (3,533) (3,513) Property and equipment (1,334) (1,801) Construction contracts (1,034) (968) Right-of-use assets (768) (770) Other (43) (176) (6,712) (7,228) Valuation allowances (12,404) (11,797) Deferred tax assets $ 457 $ 249 |
NET INCOME (LOSS) PER SHARE A_2
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN | |
Schedule of computations of basic and diluted net income per share | 2022 2021 2020 Net income (loss) attributable to the stockholders of Argan $ 38,244 $ 23,851 $ (42,689) Weighted average number of shares outstanding – basic 15,715 15,668 15,621 Effect of stock awards (1)(2) 198 157 — Weighted average number of shares outstanding – diluted 15,913 15,825 15,621 Net income (loss) per share attributable to the stockholders of Argan Basic $ 2.43 $ 1.52 $ (2.73) Diluted $ 2.40 $ 1.51 $ (2.73) (1) The weighted average numbers of shares determined on a dilutive basis for Fiscal 2022 and Fiscal 2021 exclude the effects of antidilutive stock options covering 570,167 and 638,001 shares of common stock, respectively, as the options had exercise prices per share in excess of the average market price per share for the applicable year. (2) For Fiscal 2020, the weighted average number of shares determined on a dilutive basis excludes any effect of outstanding stock awards which covered 1,303,000 shares of the Company's common stock as of January 31, 2020 as the Company incurred a net loss for the year. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
SEGMENT REPORTING | |
Schedule of operating results and certain financial position data of the Company's reportable business segments | Summarized below are certain operating results and financial position data of the Company’s reportable business segments for Fiscal 2022, Fiscal 2021 and Fiscal 2020. The “Other” column in each summary includes the Company’s corporate expenses. Year Ended Power Industrial Telecom January 31, 2022 Services Services Services Other Totals Revenues $ 398,089 $ 97,890 $ 13,391 $ — $ 509,370 Cost of revenues 317,130 81,391 11,117 — 409,638 Gross profit 80,959 16,499 2,274 — 99,732 Selling, general and administrative expenses 28,323 8,167 2,146 8,685 47,321 Impairment loss 7,901 — — — 7,901 Income (loss) from operations 44,735 8,332 128 (8,685) 44,510 Other income, net 2,545 — — 7 2,552 Income (loss) before income taxes $ 47,280 $ 8,332 $ 128 $ (8,678) 47,062 Income tax expense (11,356) Net income $ 35,706 Amortization of intangibles $ 208 $ 662 $ — $ — $ 870 Depreciation 605 2,325 433 4 3,367 Property, plant and equipment additions 713 107 597 5 1,422 Current assets $ 322,448 $ 25,681 $ 2,957 $ 156,198 $ 507,284 Current liabilities 209,829 9,534 1,916 1,748 223,027 Goodwill 18,476 9,467 90 — 28,033 Total assets 345,956 44,002 6,741 156,886 553,585 Year Ended Power Industrial Telecom January 31, 2021 Services Services Services Other Totals Revenues $ 319,353 $ 65,263 $ 7,590 $ — $ 392,206 Cost of revenues 266,993 57,257 5,889 — 330,139 Gross profit 52,360 8,006 1,701 — 62,067 Selling, general and administrative expenses 21,795 7,358 1,987 7,901 39,041 Income (loss) from operations 30,565 648 (286) (7,901) 23,026 Other income, net 1,777 — — 82 1,859 Income (loss) before income taxes $ 32,342 $ 648 $ (286) $ (7,819) 24,885 Income tax expense (1,074) Net income $ 23,811 Amortization of intangibles $ 242 $ 662 $ — $ — $ 904 Depreciation 704 2,592 414 5 3,715 Property, plant and equipment additions 1,043 338 316 — 1,697 Current assets $ 360,552 $ 22,014 $ 1,959 $ 161,695 $ 546,220 Current liabilities 261,030 13,119 953 985 276,087 Goodwill 18,476 9,467 — — 27,943 Total assets 394,014 42,998 3,406 162,212 602,630 Year Ended Power Industrial Telecom January 31, 2020 Services Services Services Other Totals Revenues $ 135,729 $ 94,682 $ 8,586 $ — $ 238,997 Cost of revenues 152,854 85,859 7,104 — 245,817 Gross (loss) profit (17,125) 8,823 1,482 — (6,820) Selling, general and administrative expenses 26,835 7,810 2,135 7,345 44,125 Impairment losses 2,072 2,823 — — 4,895 Loss from operations (46,032) (1,810) (653) (7,345) (55,840) Other income, net 7,535 — — 540 8,075 Loss before income taxes $ (38,497) $ (1,810) $ (653) $ (6,805) (47,765) Income tax benefit 7,053 Net loss $ (40,712) Amortization of intangibles $ 291 $ 664 $ 181 $ — $ 1,136 Depreciation 694 2,418 396 5 3,513 Property, plant and equipment additions 5,069 1,638 340 11 7,058 Current assets $ 320,257 $ 21,766 $ 2,938 $ 76,794 $ 421,755 Current liabilities 135,518 6,441 796 1,279 144,034 Goodwill 18,476 9,467 — — 27,943 Total assets 352,034 46,321 4,549 84,636 487,540 |
DESCRIPTION OF THE BUSINESS A_3
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Description of the Business | ||
Retained amounts by project owners | $ 40.4 | $ 36.8 |
Minimum | ||
Description of the Business | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum | ||
Description of the Business | ||
Property, Plant and Equipment, Useful Life | 39 years |
SPECIAL PURPOSE ENTITIES (Detai
SPECIAL PURPOSE ENTITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Variable Interest Entity | ||
Capitalized project development costs | $ 7.9 | |
Non-controlling Interests | ||
Variable Interest Entity | ||
Capitalized project development costs | $ 2.5 | |
Variable Interest Entity | ||
Variable Interest Entity | ||
Cost of property, plant and equipment | $ 7.5 |
REVENUES FROM CONTRACTS WITH _3
REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | Jan. 31, 2022 | Jan. 31, 2021 |
REVENUES FROM CONTRACTS WITH CUSTOMERS | ||
Retained amounts by project owners | $ 40.4 | $ 36.8 |
Amounts of unpriced change orders included in transaction prices | 7.5 | 16.6 |
REVENUES FROM CONTRACTS WITH _4
REVENUES FROM CONTRACTS WITH CUSTOMERS - Accounting for the Loss Subcontract (Details) - TeesREPProject - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | ||
Loss recorded | $ 33.6 | |
Reduction to the subcontract loss | $ 4.1 | |
Subcontract loss | $ 29.5 |
REVENUES FROM CONTRACTS WITH _5
REVENUES FROM CONTRACTS WITH CUSTOMERS - Remaining Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 $ in Millions | Jan. 31, 2022USD ($) |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
Contract backlog amount | $ 397 |
Contract backlog (as percent) | 84.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
REVENUES FROM CONTRACTS WITH _6
REVENUES FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Disaggregation of Revenues | |||
Totals | $ 509,370 | $ 392,206 | $ 238,997 |
United States | |||
Disaggregation of Revenues | |||
Totals | 456,211 | 340,615 | 169,299 |
Republic of Ireland | |||
Disaggregation of Revenues | |||
Totals | 35,044 | 13,638 | 20,342 |
United Kingdom | |||
Disaggregation of Revenues | |||
Totals | 17,521 | 37,836 | 49,028 |
Other | |||
Disaggregation of Revenues | |||
Totals | $ 594 | $ 117 | $ 328 |
CASH, CASH EQUIVALENTS AND SH_2
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - Held-to-maturity Securities | 24 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Cash and Cash Equivalents | ||
Maturity period | 1 year | |
Weighted average annual interest rates of CDs (as a percent) | 0.10% | 0.20% |
ACCOUNTS AND NOTES RECEIVABLE (
ACCOUNTS AND NOTES RECEIVABLE (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2022USD ($) | |
ACCOUNTS AND NOTES RECEIVABLE | |
Provision for credit losses | $ 2.4 |
Allowance for uncollectible accounts | $ 2.4 |
PURCHASED INTANGIBLE ASSETS - C
PURCHASED INTANGIBLE ASSETS - Changes in the balances of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 27,943 | $ 27,943 | $ 32,838 |
Impairment loss | (7,901) | (4,895) | |
Acquisition of LTI | 90 | ||
Goodwill, Ending Balance | 28,033 | 27,943 | 27,943 |
GPS | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 18,476 | 18,476 | 18,476 |
Goodwill, Ending Balance | 18,476 | 18,476 | 18,476 |
TRC | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 9,467 | 9,467 | 12,290 |
Impairment loss | (2,823) | ||
Goodwill, Ending Balance | 9,467 | 9,467 | 9,467 |
APC | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 2,072 | ||
Impairment loss | $ (2,100) | $ (2,072) | |
SMC | |||
Goodwill [Roll Forward] | |||
Acquisition of LTI | 90 | ||
Goodwill, Ending Balance | $ 90 |
PURCHASED INTANGIBLE ASSETS - G
PURCHASED INTANGIBLE ASSETS - Goodwill and Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Nov. 01, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2016 | Jan. 31, 2019 |
Indefinite-Lived Intangible Assets | ||||||
Goodwill allocated for income tax reporting purposes | $ 16,500 | |||||
Period of amortization of goodwill for income tax purpose | 15 years | |||||
Goodwill Impairment Loss | $ 0 | |||||
Goodwill | 28,033 | $ 27,943 | $ 27,943 | $ 32,838 | ||
Impairment loss | 7,901 | 4,895 | ||||
Payment for acquisition | 600 | |||||
Finite Lived Intangible Assets - Gross Carrying Amount | 11,050 | |||||
Accumulated Amortization | 7,728 | |||||
Finite Lived Intangible Assets - Net Amount | 3,322 | 4,097 | ||||
Intangible Assets, Net (Excluding Goodwill) | 3,322 | 4,097 | ||||
Additions to other intangible assets | 0 | 0 | 0 | |||
Additions to impairment losses | 0 | 0 | 0 | |||
Amortization of intangibles | 870 | 904 | 1,136 | |||
APC | ||||||
Indefinite-Lived Intangible Assets | ||||||
Percentage of goodwill acquired | 100.00% | |||||
TRC | ||||||
Indefinite-Lived Intangible Assets | ||||||
Goodwill Impairment Loss | 2,800 | |||||
Percentage of goodwill acquired | 34.00% | |||||
APC | ||||||
Indefinite-Lived Intangible Assets | ||||||
Goodwill | $ 2,072 | |||||
Impairment loss | 2,100 | $ 2,072 | ||||
SMC | ||||||
Indefinite-Lived Intangible Assets | ||||||
Goodwill | 90 | |||||
TRC. | ||||||
Indefinite-Lived Intangible Assets | ||||||
Excess of the fair value over the carrying value | $ 8,900 | |||||
Goodwill | 9,500 | 9,500 | ||||
LTI | ||||||
Indefinite-Lived Intangible Assets | ||||||
Payment for acquisition | $ 600 | |||||
Trade Name | TRC. | ||||||
Indefinite-Lived Intangible Assets | ||||||
Finite-Lived Intangible Assets - Estimated Useful Life | 15 years | |||||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 4,499 | |||||
Accumulated Amortization | 1,849 | |||||
Finite Lived Intangible Assets - Net Amount | $ 2,650 | 2,949 | ||||
Trade Name | GPS. | ||||||
Indefinite-Lived Intangible Assets | ||||||
Finite-Lived Intangible Assets - Estimated Useful Life | 15 years | |||||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 3,643 | |||||
Accumulated Amortization | $ 3,643 | |||||
Finite Lived Intangible Assets - Net Amount | 208 | |||||
Process certifications | ||||||
Indefinite-Lived Intangible Assets | ||||||
Finite-Lived Intangible Assets - Estimated Useful Life | 7 years | |||||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 1,897 | |||||
Accumulated Amortization | 1,671 | |||||
Finite Lived Intangible Assets - Net Amount | $ 226 | 497 | ||||
Customer relationships | ||||||
Indefinite-Lived Intangible Assets | ||||||
Finite-Lived Intangible Assets - Estimated Useful Life | 10 years | |||||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 916 | |||||
Accumulated Amortization | 565 | |||||
Finite Lived Intangible Assets - Net Amount | $ 351 | $ 443 | ||||
Customer relationships | Minimum | ||||||
Indefinite-Lived Intangible Assets | ||||||
Finite-Lived Intangible Assets - Estimated Useful Life | 10 years | |||||
Customer Contracts | ||||||
Indefinite-Lived Intangible Assets | ||||||
Finite-Lived Intangible Assets - Estimated Useful Life | 1 year | |||||
Finite Lived Intangible Assets - Gross Carrying Amount | $ 95 | |||||
Finite Lived Intangible Assets - Net Amount | $ 95 |
PURCHASED INTANGIBLE ASSETS - F
PURCHASED INTANGIBLE ASSETS - Finite Lived Intangible Future Amortization Schedule (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
PURCHASED INTANGIBLE ASSETS | ||
2023 | $ 712 | |
2024 | 392 | |
2025 | 392 | |
2026 | 376 | |
2027 | 300 | |
Thereafter | 1,150 | |
Total | $ 3,322 | $ 4,097 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Property, plant and equipment | ||
Property and equipment, gross | $ 31,445 | $ 38,723 |
Less - accumulated depreciation | 20,985 | 18,362 |
Property, plant and equipment, net | 10,460 | 20,361 |
Land and improvements | ||
Property, plant and equipment | ||
Property and equipment, gross | 863 | 863 |
Building and improvements | ||
Property, plant and equipment | ||
Property and equipment, gross | 5,763 | 5,868 |
Furniture, machinery and equipment | ||
Property, plant and equipment | ||
Property and equipment, gross | 18,924 | 19,132 |
Trucks, trailers and other vehicles | ||
Property, plant and equipment | ||
Property and equipment, gross | $ 5,895 | 5,315 |
Project development costs (Note 3) | ||
Property, plant and equipment | ||
Property and equipment, gross | $ 7,545 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Depreciation Expense and Cost of Maintenance and Repairs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Impairment loss | $ 7,900 | ||
Depreciation | 3,367 | $ 3,715 | $ 3,513 |
Costs of maintenance and repairs | $ 2,100 | $ 1,900 | $ 3,400 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Financing Arrangements | |||
Amount of an outstanding letter of credit issued by Bank in support of project development activities and deposited with the Bank as collateral | $ 3.4 | ||
London Interbank Offered Rate (LIBOR) | |||
Financing Arrangements | |||
Interest rate margin on referred rate | 1.60% | ||
Revolving Credit Facility | |||
Financing Arrangements | |||
Additional commitment amount | $ 10 | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Financing Arrangements | |||
Variable rate | 30-day LIBOR | ||
Interest rate margin on referred rate | 1.60% | 2.00% | |
Revolving Credit Facility | Expires on May 31, 2024 | |||
Financing Arrangements | |||
Borrowing available under financing arrangements | $ 50 | ||
Letter of Credit | |||
Financing Arrangements | |||
Letters of credit outstanding amount | $ 21.5 |
COMMITMENTS - Leases (Details)
COMMITMENTS - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Operating leases, options to extend | true | ||
Operating leases, options to terminate | true | ||
Operating lease expense | $ 3,391 | $ 1,820 | $ 1,004 |
Operating lease payments | $ 3,300 | 2,000 | |
Weighted average lease term | 46 months | ||
Weighted average discount rate | 2.50% | ||
Future minimum lease payment | $ 3,500 | 3,000 | |
Unsatisfied bonded performance obligations | 235,100 | ||
April 30, 2022 | 1,457 | ||
Bonds outstanding, covering other risks | 1,000 | ||
Company's expense for defined contribution savings plans | $ 2,300 | 1,900 | 1,700 |
Minimum | |||
Deferred period | 5 years | ||
Maximum | |||
Deferred period | 7 years | ||
London Interbank Offered Rate (LIBOR) | |||
Interest rate margin on referred rate | 1.60% | ||
TRC | |||
April 30, 2022 | $ 300 | ||
GPS | Financial guarantee | |||
Guarantor obligation maximum exposure | 3,600 | ||
SMC | |||
April 30, 2022 | 100 | ||
Costs of Revenues [Member] | |||
Rent expense | 12,000 | 7,100 | 4,000 |
Selling, General and Administrative Expenses [Member] | |||
Rent expense | $ 1,000 | $ 900 | $ 700 |
COMMITMENTS - Future minimum le
COMMITMENTS - Future minimum lease payments (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Operating Leases | |
2023 | $ 1,457 |
2024 | 538 |
2025 | 379 |
2026 | 277 |
2027 | 230 |
Thereafter | 1,029 |
Total lease payments | 3,910 |
Less interest portion | 254 |
Present value of lease payments | 3,656 |
Less current portion (included in accrued expenses) | $ 1,367 |
Less current portion (included in accrued expenses) | Accrued expenses |
Non-current portion (included in noncurrent liabilities) | $ 2,289 |
Non-current portion (included in noncurrent liabilities) | Other noncurrent liabilities |
COMMITMENTS - Warranties (Detai
COMMITMENTS - Warranties (Details) | 12 Months Ended |
Jan. 31, 2022 | |
Minimum [Member] | |
Warranty period | P9M |
Maximum [Member] | |
Warranty period | twenty-four months |
LEGAL CONTINGENCIES (Details)
LEGAL CONTINGENCIES (Details) $ in Millions | 1 Months Ended |
Sep. 30, 2021USD ($) | |
GPS | |
Loss Contingencies | |
Payments for legal settlements | $ 27.5 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
STOCK-BASED COMPENSATION | ||||
Shares, Outstanding, Beginning balance | 1,405 | 1,271 | 1,140 | |
Shares, Granted | 67 | 242 | 238 | |
Shares, Exercised | (42) | (68) | (61) | |
Shares, Forfeited | (25) | (40) | (46) | |
Shares, Outstanding, Ending balance | 1,405 | 1,405 | 1,271 | 1,140 |
Shares, Exercisable | 1,110 | 938 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 44.17 | $ 44.83 | $ 44.01 | |
Weighted Average Exercise Price, Granted | 45.47 | 37.26 | 44.76 | |
Weighted Average Exercise Price, Exercised | 34.01 | 24.17 | 26.67 | |
Weighted Average Exercise Price, Forfeited | 54.28 | 57.44 | 48.47 | |
Weighted Average Exercise Price, Outstanding, Ending balance | 44.35 | 44.17 | $ 44.83 | $ 44.01 |
Weighted Average Exercise Price, Exercisable | $ 45.19 | $ 46.09 | ||
Weighted Average Remaining Term (Years), Outstanding | 6 years 2 months 1 day | 6 years 10 months 24 days | 7 years 2 months 4 days | 7 years 6 months 14 days |
Weighted Average Remaining Term (Years), Exercisable | 5 years 6 months 21 days | 5 years 11 months 12 days | ||
Weighted Average Fair Value, Outstanding | $ 10.31 | $ 10.39 | $ 11.06 | $ 11.22 |
Weighted Average Fair Value, Exercisable | $ 10.98 | $ 11.58 |
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 | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
STOCK-BASED COMPENSATION | |||
Shares, Non-vested, Beginning balance | 467 | 448 | 375 |
Shares, Granted | 67 | 242 | 238 |
Shares, Vested | (231) | (207) | (134) |
Shares, Forfeitures | (8) | (16) | (31) |
Shares, Non-vested, Ending balance | 295 | 467 | 448 |
Shares, Non-vested | 295 | 467 | 448 |
Weighted Average Fair Value, Non-vested, Beginning balance | $ 8.01 | $ 9.74 | $ 10.05 |
Weighted Average Fair Value, Granted | 8.54 | 6.53 | 9.60 |
Weighted Average Fair Value, Vested | 8.46 | 9.98 | 10.25 |
Weighted Average Fair Value, Forfeitures | 7.05 | 8.52 | 10.28 |
Weighted Average Fair Value, Non-vested, Ending balance | 7.80 | 8.01 | 9.74 |
Weighted Average Fair Value, Non-vested | $ 7.80 | $ 8.01 | $ 9.74 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Change in restricted stock units (Details) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning balance (in shares) | 117 | 72 | 36 |
Awarded (in shares) | 145 | 45 | 36 |
Issued (in shares) | (40) | ||
Outstanding, Ending balance (in shares) | 222 | 117 | 72 |
Outstanding (in shares) | 222 | 117 | 72 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, Beginning balance Fair value (Per share) | $ 17.71 | $ 19.44 | $ 16.63 |
Awarded, Fair value (Per share) | 39.52 | 14.95 | 22.25 |
Issued, Fair value (Per share) | 20.64 | ||
Outstanding, Ending balance Fair value (Per share) | 31.48 | 17.71 | 19.44 |
Outstanding, Fair value (per share) | $ 31.48 | $ 17.71 | $ 19.44 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2021personshares | Apr. 30, 2020personshares | Jan. 31, 2022USD ($)itemshares | Jan. 31, 2021USD ($)shares | Jan. 31, 2020USD ($)shares | Jun. 23, 2020shares | Apr. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Percentage Reduction In The Aggregate Fair Value Of Stock Option | 88.50% | ||||||
Stock compensation expense | $ | $ 3,459 | $ 2,938 | $ 2,131 | ||||
Unrecognized compensation cost | $ | $ 6,000 | ||||||
Compensation expense recognize, period | 3 years | ||||||
Intrinsic value of outstanding stock options | $ | $ 2,200 | ||||||
Intrinsic value of exercisable stock options | $ | $ 1,800 | ||||||
Period used for calculations | 5 years | ||||||
Fair value of award as a percentage of market value | 50.00% | ||||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Period used for calculations | 3 years | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Period used for calculations | 5 years | ||||||
2020 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of shares of common stock reserved for issuance | 500,000 | ||||||
Stock Options Plans [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Initial vesting percentage | 33.33% | ||||||
Period to become exercisable | 3 years | ||||||
Number of shares of common stock available for award | 407,250 | ||||||
Number of shares of common stock reserved for issuance | 2,034,401 | ||||||
Intrinsic value of the stock options exercised | $ | $ 600 | $ 1,500 | $ 1,400 | ||||
Performance-based restricted stock units | Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of executives | person | 4 | 2 | |||||
ISOs/NSOs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Incentive stock option award maximum expiration period | 10 years | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Awarded (in shares) | 145,000 | 45,000 | 36,000 | ||||
Number of shares earned and issue under the restricted stock unit | 40,000 | ||||||
Restricted Stock Units | Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Period to become exercisable | 3 years | ||||||
Number of shares earned and issue under the restricted stock unit | 40,471 | ||||||
Renewable Performance-Based Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Awards authorized | 5,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | three-year | ||||||
Time Based Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Awarded (in shares) | 30,500 | ||||||
Initial vesting percentage | 33.33% | ||||||
Period to become exercisable | 3 years | ||||||
Awards authorized | 82,250 | ||||||
Number of anniversaries | item | 3 | ||||||
Vested | 51,750 | ||||||
Senior executives | Performance-based restricted stock units | Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Period to become exercisable | 3 years | ||||||
Percentage of the maximum shares for the target number of shares awarded | 50.00% | ||||||
Senior executives | Performance-based restricted stock units | Stock Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of shares of common stock available for award | 49,000 | 45,000 | 36,000 | ||||
Senior executives | Renewable Performance-Based Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Number of executives | person | 2 |
INCOME TAXES - Components of Co
INCOME TAXES - Components of Company's Income Tax (Expense) Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Current: | |||
Federal | $ (10,921) | $ 6,654 | $ 77 |
State | (643) | (83) | 336 |
Total | (11,564) | 6,571 | 413 |
Deferred: | |||
Federal | 341 | (7,720) | 6,825 |
State | (133) | 75 | (185) |
Total | 208 | (7,645) | 6,640 |
Income tax (expense) benefit | $ (11,356) | $ (1,074) | $ 7,053 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Federal corporate income tax rate (as percent) | 21.00% | 21.00% | 21.00% |
Computed expected income tax (expense) benefit | $ (9,883) | $ (5,226) | $ 10,030 |
State income taxes, net of federal tax effect | (614) | (7) | 81 |
Excess executive compensation | (1,296) | (420) | (420) |
Bad debt loss | (425) | 160 | 6,205 |
Foreign tax rate differential | 352 | 173 | (722) |
Net operating loss carryback benefit (see discussion below) | 4,392 | ||
Elimination of net operating loss benefit | (7,239) | ||
Goodwill impairment losses | (763) | ||
Other permanent differences and adjustments, net | 510 | (146) | (119) |
Income tax (expense) benefit | (11,356) | (1,074) | $ 7,053 |
Net operating loss carryback benefit | 4,400 | ||
Deferred tax valuation allowance | 12,404 | $ 11,797 | |
Income tax benefit recorded as an adjustment to the estimated favorable income tax impact of bad debt loss on loans | 6,200 | ||
Amount of tax recovery of loans and lease receivables | 400 | ||
United Kingdom | |||
Deferred tax valuation allowance | $ 7,100 |
INCOME TAXES - Net Operating Lo
INCOME TAXES - Net Operating Loss Carryback (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Increase in loss carryback period for certain losses | 5 years | ||
Net operating loss carry forward | $ 5.9 | ||
Domestic net operating loss carryback | $ 39.5 | ||
Deferred tax asset | $ 8.3 | ||
Federal corporate income tax rate (as percent) | 21.00% | 21.00% | 21.00% |
Amount of rate difference tax benefit | $ 4.4 | ||
Other current assets | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax receivable | $ 12.7 |
INCOME TAXES - Research and Dev
INCOME TAXES - Research and Development Tax Credits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
INCOME TAXES | |||
Prior period for identify and quantify the amounts of research and development credits | 3 years | ||
Research and development tax credit benefit | $ 16.6 | $ 0.4 | |
Unrecognized income tax benefits related to research and development credits | 5 | $ 5 | |
Income tax refunds and prepaid income taxes | $ 29.5 | $ 26.9 |
INCOME TAXES - Schedule of Tax
INCOME TAXES - Schedule of Tax Effects of Temporary Differences that Gave Rise to Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Assets: | |||
Net operating loss carryforwards | $ 14,360 | $ 14,192 | |
Stock awards | 2,325 | 2,549 | |
Research and development credit carryforwards | 269 | 102 | |
Purchased intangibles | 19 | 234 | |
Lease liabilities | 772 | 775 | |
Accrued expenses and other | 1,828 | 1,422 | |
Total Assets | 19,573 | 19,274 | |
Liabilities: | |||
Purchased intangibles | (3,533) | (3,513) | |
Construction contracts | (1,034) | (968) | |
Property and equipment | (1,334) | (1,801) | |
Right-of-use assets | (768) | (770) | |
Other | (43) | (176) | |
Total Liabilities | (6,712) | (7,228) | |
Valuation allowances | (12,404) | (11,797) | |
Deferred tax assets | 457 | 249 | |
Net operating losses | 5,900 | ||
Income tax (expense) benefit | $ (11,356) | $ (1,074) | $ 7,053 |
INCOME TAXES - Solar Energy Pro
INCOME TAXES - Solar Energy Projects And Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
INCOME TAXES | |||
Payment for equity method investment | $ 5,016 | $ 1,333 | |
Investment tax credits | 4,500 | 1,100 | |
Remaining cash investment commitments | $ 0 | ||
Expected life of investment | 6 years | ||
Cash paid for income taxes | $ 14,000 | 5,500 | $ 3,100 |
Cash received from income tax refunds | $ 200 | $ 1,000 | $ 8,400 |
NET INCOME (LOSS) PER SHARE A_3
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN | |||
Net income (loss) attributable to the stockholders of Argan | $ 38,244 | $ 23,851 | $ (42,689) |
Weighted average number of shares outstanding - basic | 15,715 | 15,668 | 15,621 |
Effects of stock awards | 198 | 157 | |
Weighted average number of shares outstanding - diluted | 15,913 | 15,825 | 15,621 |
Basic | $ 2.43 | $ 1.52 | $ (2.73) |
Diluted | $ 2.40 | $ 1.51 | $ (2.73) |
NET INCOME (LOSS) PER SHARE A_4
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN - Additional information (Details) - shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN | |||
Antidilutive common stock | 570,167 | 1,303,000 | 638,001 |
CASH DIVIDENDS AND COMMON STO_2
CASH DIVIDENDS AND COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 08, 2022 | Dec. 31, 2020 | Jul. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 |
Regular cash dividend declared per common stock | $ 1 | $ 3 | $ 1 | |||
Common stock repurchases (in shares) | 527,752 | |||||
Common stock repurchased | $ 20,372 | |||||
Share Price | $ 38.60 | |||||
Special cash dividend paid per common stock | $ 1 | $ 1 | ||||
Regular cash dividend paid per common stock | $ 0.25 | $ 0.25 | $ 0.25 | |||
Subsequent Event | ||||||
Regular cash dividend declared per common stock | $ 0.25 | |||||
Common stock repurchases (in shares) | 442,079 | |||||
Common stock repurchased | $ 17,100 | |||||
Share Price | $ 38.69 |
CUSTOMER CONCENTRATIONS (Detail
CUSTOMER CONCENTRATIONS (Details) - customer | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Customer Concentrations | |||
Number of customers | 3 | 3 | |
Customer Concentration Risk [Member] | Contract Asset | |||
Customer Concentrations | |||
Number of customers | 2 | 2 | |
Customer Concentration Risk [Member] | Major Customer One [Member] | Accounts Receivable [Member] | |||
Customer Concentrations | |||
Percentage of consolidated accounts receivable accounted by major customer | 22.00% | 26.00% | |
Customer Concentration Risk [Member] | Major Customer One [Member] | Contract Asset | |||
Customer Concentrations | |||
Percentage of major customers or segments | 31.00% | 64.00% | |
Customer Concentration Risk [Member] | Major Customer Two [Member] | Accounts Receivable [Member] | |||
Customer Concentrations | |||
Percentage of consolidated accounts receivable accounted by major customer | 15.00% | 11.00% | |
Customer Concentration Risk [Member] | Major Customer Two [Member] | Contract Asset | |||
Customer Concentrations | |||
Percentage of major customers or segments | 13.00% | 12.00% | |
Customer Concentration Risk [Member] | Major Customer Three [Member] | Accounts Receivable [Member] | |||
Customer Concentrations | |||
Percentage of consolidated accounts receivable accounted by major customer | 12.00% | 11.00% | |
Power Industry Services [Member] | Product Concentration Risk [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 78.00% | 81.00% | 57.00% |
Power Industry Services [Member] | Customer Concentration Risk [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Number of customers | 1 | 1 | 2 |
Power Industry Services [Member] | Customer Concentration Risk [Member] | Major Customer One [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 57.00% | 67.00% | 22.00% |
Power Industry Services [Member] | Customer Concentration Risk [Member] | Major Customer Two [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 15.00% | ||
Industry services | Product Concentration Risk [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 19.00% | 17.00% | 40.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2022USD ($)item | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | |
Segment Reporting Information | ||||
Operating segment | item | 1 | |||
Revenues | $ 509,370 | $ 392,206 | $ 238,997 | |
Cost of revenues | 409,638 | 330,139 | 245,817 | |
Gross profit | 99,732 | 62,067 | (6,820) | |
Selling, general and administrative expenses | 47,321 | 39,041 | 44,125 | |
Impairment loss | 7,901 | 4,895 | ||
Income (loss) from operations | 44,510 | 23,026 | (55,840) | |
Other (loss) income, net | 2,552 | 1,859 | 8,075 | |
Income (loss) before income taxes | 47,062 | 24,885 | (47,765) | |
Income tax (expense) benefit | (11,356) | (1,074) | 7,053 | |
Net income (loss) | 35,706 | 23,811 | (40,712) | |
Amortization of intangibles | 870 | 904 | 1,136 | |
Depreciation | 3,367 | 3,715 | 3,513 | |
Property, plant and equipment additions | 1,422 | 1,697 | 7,058 | |
Current assets | 507,284 | 546,220 | 421,755 | |
Current liabilities | 223,027 | 276,087 | 144,034 | |
Goodwill | 28,033 | 27,943 | 27,943 | $ 32,838 |
Total assets | 553,585 | 602,630 | 487,540 | |
Other [Member] | ||||
Segment Reporting Information | ||||
Selling, general and administrative expenses | 8,685 | 7,901 | 7,345 | |
Income (loss) from operations | (8,685) | (7,901) | (7,345) | |
Other (loss) income, net | 7 | 82 | 540 | |
Income (loss) before income taxes | (8,678) | (7,819) | (6,805) | |
Depreciation | 4 | 5 | 5 | |
Property, plant and equipment additions | 5 | 11 | ||
Current assets | 156,198 | 161,695 | 76,794 | |
Current liabilities | 1,748 | 985 | 1,279 | |
Total assets | 156,886 | 162,212 | 84,636 | |
Intercompany Eliminations | ||||
Segment Reporting Information | ||||
Revenues | 2,800 | 4,300 | 3,300 | |
Power Industry Services [Member] | ||||
Segment Reporting Information | ||||
Revenues | 398,089 | 319,353 | 135,729 | |
Cost of revenues | 317,130 | 266,993 | 152,854 | |
Gross profit | 80,959 | 52,360 | (17,125) | |
Selling, general and administrative expenses | 28,323 | 21,795 | 26,835 | |
Impairment loss | 7,901 | 2,072 | ||
Income (loss) from operations | 44,735 | 30,565 | (46,032) | |
Other (loss) income, net | 2,545 | 1,777 | 7,535 | |
Income (loss) before income taxes | 47,280 | 32,342 | (38,497) | |
Amortization of intangibles | 208 | 242 | 291 | |
Depreciation | 605 | 704 | 694 | |
Property, plant and equipment additions | 713 | 1,043 | 5,069 | |
Current assets | 322,448 | 360,552 | 320,257 | |
Current liabilities | 209,829 | 261,030 | 135,518 | |
Goodwill | 18,476 | 18,476 | 18,476 | |
Total assets | 345,956 | 394,014 | 352,034 | |
Industrial Services | ||||
Segment Reporting Information | ||||
Revenues | 97,890 | 65,263 | 94,682 | |
Cost of revenues | 81,391 | 57,257 | 85,859 | |
Gross profit | 16,499 | 8,006 | 8,823 | |
Selling, general and administrative expenses | 8,167 | 7,358 | 7,810 | |
Impairment loss | 2,823 | |||
Income (loss) from operations | 8,332 | 648 | (1,810) | |
Income (loss) before income taxes | 8,332 | 648 | (1,810) | |
Amortization of intangibles | 662 | 662 | 664 | |
Depreciation | 2,325 | 2,592 | 2,418 | |
Property, plant and equipment additions | 107 | 338 | 1,638 | |
Current assets | 25,681 | 22,014 | 21,766 | |
Current liabilities | 9,534 | 13,119 | 6,441 | |
Goodwill | 9,467 | 9,467 | 9,467 | |
Total assets | 44,002 | 42,998 | 46,321 | |
Telecommunications Infrastructure Services [Member] | ||||
Segment Reporting Information | ||||
Revenues | 13,391 | 7,590 | 8,586 | |
Cost of revenues | 11,117 | 5,889 | 7,104 | |
Gross profit | 2,274 | 1,701 | 1,482 | |
Selling, general and administrative expenses | 2,146 | 1,987 | 2,135 | |
Income (loss) from operations | 128 | (286) | (653) | |
Income (loss) before income taxes | 128 | (286) | (653) | |
Amortization of intangibles | 181 | |||
Depreciation | 433 | 414 | 396 | |
Property, plant and equipment additions | 597 | 316 | 340 | |
Current assets | 2,957 | 1,959 | 2,938 | |
Current liabilities | 1,916 | 953 | 796 | |
Goodwill | 90 | |||
Total assets | $ 6,741 | $ 3,406 | $ 4,549 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 08, 2022 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Apr. 13, 2022 |
SUBSEQUENT EVENT | |||||
Common stock repurchases (in shares) | 527,752 | ||||
Common stock repurchased | $ 20,372 | ||||
Share Price | $ 38.60 | ||||
Regular cash dividend declared per common stock | $ 1 | $ 3 | $ 1 | ||
Subsequent Event | |||||
SUBSEQUENT EVENT | |||||
Common stock repurchases (in shares) | 442,079 | ||||
Common stock repurchased | $ 17,100 | ||||
Share Price | $ 38.69 | ||||
Regular cash dividend declared per common stock | $ 0.25 | ||||
Authorized repurchase program | $ 50,000 | ||||
Additional authorized increase in repurchase program | $ 75,000 |