Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2023 | Jun. 05, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2023 | |
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, $0.15 par value | |
Trading Symbol | AGX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,410,645 | |
Entity Central Index Key | 0000100591 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
CONSOLIDATED STATEMENTS OF EARNINGS | ||
REVENUES | $ 103,675 | $ 100,277 |
Cost of revenues | 89,451 | 80,539 |
GROSS PROFIT | 14,224 | 19,738 |
Selling, general and administrative expenses | 10,591 | 10,575 |
INCOME FROM OPERATIONS | 3,633 | 9,163 |
Other (loss) income, net | (629) | 595 |
INCOME BEFORE INCOME TAXES | 3,004 | 9,758 |
Income tax expense | 895 | 2,273 |
NET INCOME | 2,109 | 7,485 |
Foreign currency translation adjustments | 440 | (1,264) |
Net unrealized losses on available-for-sale securities | (37) | |
COMPREHENSIVE INCOME | $ 2,512 | $ 6,221 |
NET INCOME PER SHARE | ||
Basic (in Dollars per share) | $ 0.16 | $ 0.50 |
Diluted (in dollars per share) | $ 0.16 | $ 0.50 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||
Basic | 13,413 | 14,910 |
Diluted | 13,546 | 14,992 |
CASH DIVIDENDS PER SHARE | $ 0.25 | $ 0.25 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 195,947 | $ 173,947 |
Short-term investments | 90,614 | 151,511 |
Available-for-sale securities | 30,376 | |
Accounts receivable, net | 60,774 | 50,132 |
Contract assets | 4,914 | 24,778 |
Other current assets | 42,376 | 38,334 |
TOTAL CURRENT ASSETS | 425,001 | 438,702 |
Property, plant and equipment, net | 10,665 | 10,430 |
Goodwill | 28,033 | 28,033 |
Intangible assets, net | 2,511 | 2,609 |
Deferred taxes, net | 3,606 | 3,689 |
Right-of-use and other assets | 5,878 | 6,024 |
TOTAL ASSETS | 475,694 | 489,487 |
CURRENT LIABILITIES | ||
Accounts payable | 36,334 | 56,375 |
Accrued expenses | 44,755 | 49,867 |
Contract liabilities | 111,308 | 96,261 |
TOTAL CURRENT LIABILITIES | 192,397 | 202,503 |
Noncurrent liabilities | 5,348 | 6,087 |
TOTAL LIABILITIES | 197,745 | 208,590 |
COMMITMENTS AND CONTINGENCIES (see Notes 7 and 8) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $0.10 per share - 500,000 shares authorized; no shares issued and outstanding | ||
Common stock, par value $0.15 per share - 30,000,000 shares authorized; 15,828,289 shares issued; 13,414,404 and 13,441,590 shares outstanding at April 30, 2023 and January 31, 2023, respectively | 2,374 | 2,374 |
Additional paid-in capital | 161,347 | 162,208 |
Retained earnings | 206,584 | 207,832 |
Less treasury stock, at cost - 2,413,885 and 2,386,699 shares at April 30, 2023 and January 31, 2023, respectively | (89,883) | (88,641) |
Accumulated other comprehensive loss | (2,473) | (2,876) |
TOTAL STOCKHOLDERS' EQUITY | 277,949 | 280,897 |
TOTAL EQUITY | 277,949 | 280,897 |
TOTAL LIABILITIES AND EQUITY | $ 475,694 | $ 489,487 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2023 | Jan. 31, 2023 |
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 | 15,828,289 | 15,828,289 |
Common stock, shares outstanding | 13,414,404 | 13,441,590 |
Treasury stock, shares | 2,413,885 | 2,386,699 |
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, 2022 | $ 2,368 | $ 158,190 | $ 188,690 | $ (20,405) | $ (2,451) | $ (797) | $ 325,595 |
Balances (in shares) at Jan. 31, 2022 | 15,257,688 | ||||||
Net income | 7,485 | 7,485 | |||||
Foreign currency translation gain (loss) | (1,264) | (1,264) | |||||
Stock compensation expense | 920 | 920 | |||||
Stock option exercises and other share-based award settlements | $ 6 | 60 | 66 | ||||
Stock option exercises and other share-based award settlements (in shares) | 39,099 | ||||||
Common stock repurchases | (27,077) | $ (27,077) | |||||
Common stock repurchases (in shares) | (710,879) | (710,879) | |||||
Cash dividends | (3,712) | $ (3,712) | |||||
Balances at Apr. 30, 2022 | $ 2,374 | 159,170 | 192,463 | (47,482) | (3,715) | $ (797) | 302,013 |
Balances (in shares) at Apr. 30, 2022 | 14,585,908 | ||||||
Balances at Jan. 31, 2023 | $ 2,374 | 162,208 | 207,832 | (88,641) | (2,876) | 280,897 | |
Balances (in shares) at Jan. 31, 2023 | 13,441,590 | ||||||
Net income | 2,109 | 2,109 | |||||
Foreign currency translation gain (loss) | 440 | 440 | |||||
Net unrealized losses on available-for-sale securities | (37) | (37) | |||||
Stock compensation expense | 1,034 | 1,034 | |||||
Stock option exercises and other share-based award settlements | (1,895) | 2,439 | $ 544 | ||||
Stock option exercises and other share-based award settlements (in shares) | 65,470 | 30,000 | |||||
Common stock repurchases | (3,681) | $ (3,681) | |||||
Common stock repurchases (in shares) | (92,656) | (92,656) | |||||
Cash dividends | (3,357) | $ (3,357) | |||||
Balances at Apr. 30, 2023 | $ 2,374 | $ 161,347 | $ 206,584 | $ (89,883) | $ (2,473) | $ 277,949 | |
Balances (in shares) at Apr. 30, 2023 | 13,414,404 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 2,109 | $ 7,485 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Changes in accrued interest on investments | 1,081 | (203) |
Stock compensation expense | 1,034 | 920 |
Depreciation | 547 | 809 |
Lease expense | 439 | 750 |
Amortization of intangible assets | 98 | 166 |
Deferred income tax expense | 147 | 450 |
Equity in loss (income) of solar energy investments | 32 | (610) |
Other | 25 | (9) |
Changes in operating assets and liabilities | ||
Accounts receivable | (10,642) | (9,069) |
Contract assets | 19,864 | (1,976) |
Other assets | (4,089) | (2,291) |
Accounts payable and accrued expenses | (26,940) | (15,229) |
Contract liabilities | 15,047 | (20,923) |
Net cash used in operating activities | (1,248) | (39,730) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of short-term investments | (90,000) | (175,000) |
Maturities of short-term investments | 149,750 | 90,000 |
Purchases of available-for-sale securities | (30,355) | |
Purchases of property, plant and equipment | (645) | (238) |
Net cash provided by (used in) investing activities | 28,750 | (85,238) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common stock repurchases | (3,681) | (27,077) |
Payments of cash dividends | (3,357) | (3,712) |
Proceeds from the exercise of stock options | 544 | 66 |
Net cash used in financing activities | (6,494) | (30,723) |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 992 | (2,526) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 22,000 | (158,217) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 173,947 | 350,472 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 195,947 | $ 192,255 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Apr. 30, 2023 | |
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, maintenance, project development, and technical consulting services to the power generation market, including the renewable energy sector. The wide range of customers includes primarily independent power producers, public utilities, power plant equipment suppliers and other commercial firms with significant power requirements with customer projects located in the United States (the “U.S.”), the Republic of Ireland (“Ireland”) and the United Kingdom (the “U.K.”). 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 new plant construction and additions, maintenance turnarounds, shutdowns and emergency mobilizations for industrial operations primarily located in the Southeast region of the U.S. and that may include the fabrication, delivery and installation of steel components such as piping systems and pressure vessels. Through SMC, which conducts business as SMC Infrastructure Solutions, the telecommunications infrastructure services segment provides project management, construction, installation and maintenance services to commercial, local government and federal government customers primarily in the Mid-Atlantic region of the U.S. Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries and a variable interest entity (“VIE”) prior to its deconsolidation in the fourth quarter of the year ended January 31, 2023. All significant inter-company balances and transactions have been eliminated in consolidation. In Note 14, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 each year. The condensed consolidated balance sheet as of April 30, 2023, the condensed consolidated statements of earnings and stockholders’ equity for the three months ended April 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the three months ended April 30, 2023 and 2022 are unaudited. The condensed consolidated balance sheet as of January 31, 2023 has been derived from audited consolidated financial statements. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements, the notes thereto, and the independent registered public accounting firm’s report thereon, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023 (“Fiscal 2023”). In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, considered necessary for a fair statement of the financial position of the Company as of April 30, 2023, and its earnings and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Accounting Policies In March 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its condensed consolidated financial statements. Available-For-Sale Securities At each balance sheet date, available-for-sale securities are recorded at fair value, with unrealized gains and, to the extent deemed temporary, unrealized losses reported as a component of accumulated other comprehensive loss. Interest income, accretion of discounts, amortization of premiums, realized gains and realized losses are included in other income or expense, as applicable, in the Company’s condensed consolidated statement of earnings. The Company determines the cost of securities sold based on the specific identification method. The Company determines the appropriate classification of available-for-sale securities based on whether they represent the investment of cash available for current operations, as defined in Accounting Standards Codification (“ASC”) 210-10-45-1 and ASC 210-10-45-2. The classification of the available-for-sale securities is reevaluated at each balance sheet date. The Company considers its available-for-sale securities impaired when a decline in fair value below its cost basis is determined to be other than temporary. The Company evaluates whether the decline in fair value is other than temporary based on the amount and duration of the period that the fair value of the available-for-sale security is less than its cost basis, overall market conditions and trends, the Company’s intent to sell the available-for-sale security and whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery. If a decline in fair value is determined to be other than temporary, the Company records an impairment loss and establishes a new cost basis. Fair Values ASC Topic 820 , Fair Value Measurement Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs are quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Inputs are unobservable inputs based on a company’s own assumptions. At April 30, 2023 and January 31, 2023, certain amounts of cash equivalents were invested in money market funds with net assets invested in high-quality money market instruments. Money market funds were classified as Level 1 due to the short-term nature of these instruments and as their fair value is based on quoted prices in active markets for identical assets. As of April 30, 2023, all of the Company’s available-for-sale securities were U.S. Treasury notes and were classified as Level 2, as their fair value is measured based on quoted prices in active markets for similar assets. As of April 30, 2023 and January 31, 2023, the Company did not have any financial assets measured on a recurring basis using Level 3 inputs. The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s other current assets, which primarily include cash, short term investments, accounts receivable and contract assets, and its current liabilities are reasonable estimates of their fair values due to the short-term nature of these items. The following table shows the Company’s financial instruments as of April 30, 2023 and January 31, 2023 that are measured and recorded at fair value on a recurring basis: April 30, 2023 January 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Inputs Inputs Inputs Inputs Inputs Inputs Money market funds $ 112,546 $ — $ — $ 68,647 $ — $ — Available-for-sale securities — 30,376 — — — — Totals $ 112,546 $ 30,376 $ — $ 68,647 $ — $ — Treasury Stock Treasury stock is recorded using the cost method. Incremental direct costs to purchase treasury stock, including excise tax, are included in the cost of the shares acquired. The Company uses the average cost method to account for treasury stock. For treasury stock provided for settlements or sold at a price higher than its cost, the gain is recorded to additional paid-in capital. For treasury stock provided for settlements or sold at a price lower than its cost, the loss is recorded to additional paid-in capital to the extent there are previous net gains included in additional paid-in capital. Any losses in excess of that amount are recorded to retained earnings. Variable Interest Entity In January 2018, the Company was deemed to be the primary beneficiary of a VIE that was performing the project development activities related to the planned construction of a new natural gas-fired power plant. In the fourth quarter of Fiscal 2023, the Company was deemed to no longer be the primary beneficiary of the VIE, and the VIE was deconsolidated. Prior to deconsolidation, the account balances of the VIE had been included in the Company’s consolidated financial statements. |
REVENUES FROM CONTRACTS WITH CU
REVENUES FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Apr. 30, 2023 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | NOTE 2 – REVENUES FROM CONTRACTS WITH CUSTOMERS The Company’s accounting for revenues on contracts with customers is based on a single comprehensive five-step model that requires reporting entities to: 1. Identify the contract, 2. Identify the performance obligations of the contract, 3. Determine the transaction price of the contract, 4. Allocate the transaction price to the performance obligations, and 5. Recognize revenue. The Company focuses on the transfer of the contractor’s control of the goods and/or services to the customer. 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. Predominantly 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 customer 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. The Company’s timing of revenue recognition may not be consistent with its rights to bill and collect cash from project owners and other customers. Most contracts require payments as the corresponding work progresses that are determined in the manner described therein. Those rights are generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of work or when services are performed. On most of the Company’s large contracts, milestone billings that occur early in the corresponding contract terms typically are made in advance of certain significant and related costs being incurred. This results in typically larger contract liability balances early in contract lives that decline over the terms of the corresponding contracts. During the three months ended April 30, 2023 and 2022, there were no unusual or one-time adjustments to contract liabilities. The balances of the Company’s accounts receivable represent amounts billed to customers that have yet to be collected and represent an unconditional right to cash from its customers. Contract assets include amounts that represent the rights to receive payment for goods or services that have been transferred to the customer, 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. The amounts of revenues recognized during the three months ended April 30, 2023 and 2022 that were included in the balances of contract liabilities as of January 31, 2023 and 2022, respectively, were approximately $50.9 million and $67.3 million, respectively. Contract retentions are billed amounts which, pursuant to the terms of the applicable contract, are not paid by customers 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 amounts retained by project owners and other customers under construction contracts at April 30, 2023 and January 31, 2023 were $25.0 million and $49.1 million, respectively. Variable Consideration Amounts for contract variations for which the Company has project-owner directive for additional work or other scope change, but not for the price associated with the corresponding additional effort, are included in the transaction price when it is considered probable that the applicable costs will be recovered through a modification to the contract price. The effects of any revision to a transaction price can be determined at any time and they could be material. The Company includes in the corresponding transaction price an estimate of the amount that it expects to receive from a claim based on management’s judgment regarding all reasonably available information. Once a final amount has been determined, the transaction price may be revised again to reflect the final resolution. At April 30, 2023 and January 31, 2023, the aggregate amounts of such contract variations included in the transaction prices that were still pending customer acceptance were $12.2 million and $11.6 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 forecasted contract 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. Remaining Unsatisfied Performance Obligations (“RUPO”) Substantially all of the Company’s customer contracts include the right for customers to terminate contracts for convenience. Current accounting guidance indicates that the value of future work that companies are contractually obligated to perform pursuant to active customer contracts should not be included in the disclosure of RUPO when the corresponding contracts include termination for convenience clauses without substantial penalties accruing to the customers upon such terminations. In the application of this guidance, management assesses whether the nature of the work being performed under contract is largely service-based and repetitive and should be considered a succession of one-month contracts for the duration of the identified term of the contract. Predominantly, the Company’s customers contract with the Company to construct assets, to fabricate materials or to perform emergency maintenance or outage services where management believes substantial penalties or costs would be incurred upon a termination for convenience including the costs of terminating subcontracts, canceling purchase orders and returning or otherwise disposing of delivered materials and equipment. The value of RUPO on customer contracts represents an amount based on contracts or orders received from customers that the Company believes are firm and where the parties are acting in accordance with their respective obligations. The cancellation or termination of contracts for the convenience of customers has not had a material adverse effect on our consolidated financial statements. At April 30, 2023, the Company had RUPO of $0.7 billion. The largest portion of RUPO at any date usually relates to engineering, procurement and construction (“EPC”) service and other construction 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 37% of the RUPO amount at April 30, 2023 will be included in the amount of consolidated revenues that will be recognized during the remainder of the fiscal year ending January 31, 2024 (“Fiscal 2024”). Most of the remaining amount of the RUPO amount at April 30, 2023 is expected to be recognized in revenues during the fiscal years ending January 31, 2025 and January 31, 2026. It is important to note that estimates may be changed in the future and that cancellations, deferrals, or scope adjustments may occur related to work included in the amount of RUPO at April 30, 2023. 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 to RUPO may materially reduce future revenues below Company estimates. Disaggregation of Revenues The following table presents consolidated revenues for the three months ended April 30, 2023 and 2022, disaggregated by the geographic area where the corresponding projects were located: Three Months Ended April 30, 2023 2022 United States $ 65,244 $ 80,273 Republic of Ireland 24,856 9,653 United Kingdom 13,575 10,351 Consolidated Revenues $ 103,675 $ 100,277 The major portions 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 14 to the condensed consolidated financial statements. |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 3 Months Ended |
Apr. 30, 2023 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. At April 30, 2023 and January 31, 2023, certain amounts of cash equivalents were invested in a money market fund with net assets invested in high-quality money market instruments. Such investments include U.S. Treasury obligations; obligations of U.S. government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by U.S. government obligations. Dividend income related to money market investments is recorded when earned. The balances of accrued dividends at April 30, 2023 and January 31, 2023 were $0.5 million and $0.3 million, respectively. Short-Term Investments Short-term investments as of April 30, 2023 and January 31, 2023 consisted solely of certificates of deposit purchased from the Bank (“CDs) with weighted average maturities of one year or less. The Company has the intent and ability to hold the CDs until they mature, and they are carried at cost plus accrued interest. Interest income is recorded when earned and is included in other income. At April 30, 2023 and January 31, 2023, the weighted average annual interest rates of the outstanding CDs were 5.2% and 2.5%, respectively. Interest income on CDs is recorded when earned. The balances of accrued interest on the CDs at April 30, 2023 and January 31, 2023 were $0.7 million and $1.8 million, respectively. Available-For-Sale Securities During the fiscal quarter ended April 30, 2023, the Company purchased U.S. Treasury notes with original maturities of two April 30, 2023 Allowance for Gross Gross Estimated Amortized Credit Unrealized Unrealized Fair Cost Losses Gains Losses Value U.S. Treasury notes: Due in one to two years $ 15,014 $ — $ — $ 37 $ 14,977 Due in two to three years 15,399 — — — 15,399 Totals $ 30,413 $ — $ — $ 37 $ 30,376 As of April 30, 2023, interest receivable in the amount of $0.1 million is included unrealized losses for the available-for-sale securities have been in a continuous loss position for less than 12 months. The Company does not believe the unrealized losses represent credit losses based on the evaluation of evidence as of April 30, 2023, which includes an assessment of whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. Concentration Risk The Company has a substantial portion of its cash on deposit in the U.S. with Bank of America, N.A. (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 CDs and the cash deposited with the Bank and cash balances maintained at financial institutions in Ireland and the U.K., in excess of government-insured levels, represent material risks. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Apr. 30, 2023 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 4 – ACCOUNTS RECEIVABLE The Company generally extends credit to a customer based on an evaluation of the customer’s financial condition, without requiring tangible collateral. Customer payments on other construction, fabrication and field service contracts are generally due within 30 to 60 days of billing, depending on the negotiated terms of the corresponding contract. 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. The amounts of the provision for credit losses for the three months ended April 30, 2023 and 2022 were insignificant. The allowance for credit losses at April 30, 2023 and January 31, 2023 was $1.8 million and $1.9 million, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Apr. 30, 2023 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | NOTE 5 – INTANGIBLE ASSETS At both April 30, 2023 and January 31, 2023, the goodwill balances related primarily to the GPS and TRC reporting units, and were $18.5 million and $9.5 million, respectively. Management does not believe that any events or circumstances occurred or arose since January 31, 2023, that required an updated assessment of the goodwill balances of either the GPS or TRC reporting units. The Company’s intangible assets, other than goodwill, relate primarily to the industrial fabrication and field services segment and consisted of the following as of April 30, 2023 and January 31, 2023: April 30, 2023 January 31, 2023 Estimated Gross Accumulated Net Gross Accumulated Net Useful Life Amounts Amortization Amounts Amounts Amortization Amounts Trade names 15 years $ 4,499 $ 2,225 $ 2,274 $ 4,499 $ 2,150 $ 2,349 Customer relationships 10 years 916 679 237 916 656 260 Totals $ 5,415 $ 2,904 $ 2,511 $ 5,415 $ 2,806 $ 2,609 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 3 Months Ended |
Apr. 30, 2023 | |
FINANCING ARRANGEMENTS | |
FINANCING ARRANGEMENTS | NOTE 6 – FINANCING ARRANGEMENTS During April 2021, the Company amended its Amended and Restated Replacement Credit Agreement with the Bank (the “Credit Agreement”) which extended the expiration date of the Credit Agreement to May 31, 2024 and reduced the borrowing rate. On March 6, 2023, the Company entered into the Second Amendment (the “Second Amendment”) to the Credit Agreement. The Second Amendment modified the Credit Amendment to, primarily, replace the interest pricing with the Secured Overnight Financing Rate (“SOFR”) plus 1.6% and added SOFR successor rate language. The Credit Agreement, as amended, includes the following features, among others: a lending commitment of $50.0 million including a revolving loan 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. Additionally, the Credit Agreement, as amended, continues to include customary terms, covenants and events of default for a credit facility of its size and nature. At April 30, 2023, the Company did not have any borrowings outstanding under the Credit Agreement. However, the Bank has issued letters of credit in the total outstanding amount of $11.5 million at April 30, 2023, in support of the activities of APC under existing customer contracts. The comparable outstanding total amount of letters of credit at January 31, 2023 was $8.8 million. 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 Credit Agreement requires that the Company comply with certain financial covenants at its fiscal year-end and at each fiscal quarter-end. 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 April 30 and January 31, 2023, the Company was in compliance with the covenants of the Credit Agreement, as amended. |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Apr. 30, 2023 | |
COMMITMENTS | |
COMMITMENTS | NOTE 7 – COMMITMENTS Leases The Company’s leases are primarily operating leases that cover office space, expiring on various dates through December 2031, and certain equipment used by the Company in the performance of its construction services contracts. Some of these equipment leases may be 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. For leases that contain both lease and non-lease components, fixed and variable payments are allocated to each component relative to observable or estimated standalone prices. 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 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. Right-of-use assets at April 30, 2023 and January 31, 2023, were $4.6 million and $4.8 million, respectively. Operating lease expense amounts are recorded on a straight-line basis over the expected lease terms. Operating lease expenses for the three months ended April 30, 2023 and 2022 were $0.4 million and $0.8 million, respectively. Operating lease payments for the three months ended April 30, 2023 and 2022 were $0.4 million and $0.8 million, respectively. The following is a schedule of future minimum lease payments for the operating leases that were recognized in the condensed consolidated balance sheet as of April 30, 2023: Years Ending January 31, 2024 (remainder) $ 1,244 2025 1,350 2026 1,079 2027 235 2028 213 Thereafter 815 Total lease payments 4,936 Less imputed interest 303 Present value of lease payments 4,633 Less current portion (included in accrued expenses) 1,491 Noncurrent portion (included in noncurrent liabilities) $ 3,142 For operating leases as of April 30, 2023, the weighted average lease term and weighted average discount rate was 56 months and 3.7%, respectively. For operating leases as of January 31, 2023, the weighted average lease term and weighted average discount rate was 58 months and 3.7%, respectively. The aggregate amounts of operating lease right-of-use assets added in exchange for lease obligations during the three months ended April 30, 2023 and 2022 were $0.3 million and $0.2 million, respectively. The Company also uses equipment and occupies other facilities under short-term rental agreements. The Company classifies as short-term leases any lease with an initial noncancellable term of twelve months or less that does not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. Rent expense amounts incurred under short-term rentals during the three months ended April 30, 2023 and 2022 were $3.7 million and $2.4 million, respectively. Right-of-use assets and lease liabilities related to short-term leases are excluded from the consolidated balance sheets. 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 such amounts that may be required to be paid in excess of the estimated costs to complete contracts in progress as of April 30, 2023 are not estimable. As of April 30, 2023, the estimated amount of the Company’s unsatisfied bonded performance obligations, covering all of its subsidiaries, were approximately $0.5 billion. As of April 30, 2023, the outstanding amount of bonds covering other risks, including warranty obligations related to completed activities, was not material. Not all of our projects require bonding. The Company had also provided a financial guarantee, subject to certain terms and conditions, in the amount of $3.6 million in support of business development efforts. A liability was established for the estimated loss related to this guarantee during the year ended January 31, 2022 (“Fiscal 2022”). 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 twenty-four months |
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES | 3 Months Ended |
Apr. 30, 2023 | |
LEGAL CONTINGENCIES | |
LEGAL CONTINGENCIES | NOTE 8 – 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 are expected to have a material adverse effect on the condensed consolidated financial statements as of April 30, 2023. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Apr. 30, 2023 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 9 – 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 replaced 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 are documented in a written agreement between the Company and the awardee. All stock options awarded under the Stock Plans have exercise prices per share at least equal to the market value per share of the Company’s common stock on the date of grant. Stock options have terms no longer than ten years. Typically, stock options are awarded with one three As of April 30, 2023, there were 1,825,083 shares of common stock reserved for issuance under the Stock Plans; this number includes 84,273 shares of common stock available for future awards under the 2020 Plan. Stock Options A summary of stock option activity under the Stock Plans for the three months ended April 30, 2023, along with corresponding weighted average per share amounts, is presented below (shares in thousands): Weighted Average Weighted Weighted Remaining Average Average Exercise Contractual Grant Date Shares Price Term (years) Fair Value Outstanding, February 1, 2023 1,440 $ 43.84 5.46 $ 10.11 Granted 10 $ 39.47 Exercised (30) $ 18.12 Forfeited (1) $ 33.81 Outstanding, April 30, 2023 1,419 $ 44.36 5.36 $ 10.23 Exercisable, April 30, 2023 1,291 $ 44.80 5.02 $ 10.48 Outstanding, April 30, 2022 1,438 $ 44.12 6.04 $ 10.21 Exercisable, April 30, 2022 1,199 $ 44.87 5.52 $ 10.76 The changes in the number of non-vested options to purchase shares of common stock for the three months ended April 30, 2023, and the weighted average fair value per share for each number, are presented below (shares in thousands): Weighted Average Grant Date Shares Fair Value Non-vested, February 1, 2023 194 $ 7.27 Granted 10 $ 8.12 Vested (75) $ 6.62 Forfeitures (1) $ 5.68 Non-vested, April 30, 2023 128 $ 7.72 Non-vested, April 30, 2022 239 $ 7.45 The total intrinsic value amount related to the stock options exercised during the three months ended April 30, 2023 was $0.7 million. The total intrinsic value amount related to the stock options exercised during the three months ended April 30, 2022 was not significant. The aggregate market value amounts of the shares of common stock subject to outstanding stock options and exercisable stock options that were “in-the-money” exceeded the aggregate exercise prices of such options at April 30, 2023 by $3.3 million and $3.0 million, respectively. Restricted Stock Units The Company awards restricted stock units to senior executives, members of the Company’s board of directors and certain other employees. Awardees earn the right to receive shares of common stock as certain performance goals are achieved and/or service periods are satisfied. Each restricted stock unit expires on the three-year anniversary of the award. During the three months ended April 30, 2023, the Company awarded total stock return performance-based restricted stock units (“PRSUs”) covering a target of 6,000 shares of common stock, earnings per share performance-based restricted stock units (“EPRSUs”) covering a target of 15,000 shares of common stock, renewable energy performance-based restricted stock units (“RPRSUs”) covering a target of 7,500 shares of common stock, time-based restricted stock units (“TRSUs”) covering 45,300 shares of common stock, and 1,306 shares based on the amount of cash dividends deemed paid on shares earned pursuant to the awards. During the three months ended April 30, 2022, the Company awarded 47,000 PRSUs, 7,500 RPRSUs and 57,500 TRSUs. The changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units for the three months ended April 30, 2023, and the weighted average fair value per share for each restricted stock unit, are presented below (shares in thousands): Weighted Average Grant Date Shares Fair Value Outstanding, February 1, 2023 310 $ 30.80 Awarded 96 $ 30.67 Issued (35) $ 31.04 Forfeited (49) $ 16.01 Outstanding, April 30, 2023 322 $ 31.25 Outstanding, April 30, 2022 278 $ 29.38 Fair Value The fair value amounts of stock options and restricted stock units are recorded as stock compensation expense on a straight-line basis over the terms of the corresponding awards. Expense amounts related to stock awards were $1.0 million and $0.9 million for the three months ended April 30, 2023 and 2022, respectively. At April 30, 2023, there was $8.4 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 PRSUs have been determined by using the per share market price of the common stock on the dates of award and, 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 (which is 50% of the maximum number) of shares on the award date. For the EPRSUs and RPRSUs, the fair value of each award equals the aggregate market price for the number of shares that, as of the award date, are probable of vesting based on the performance conditions. For the TRSUs, 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 | 3 Months Ended |
Apr. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 10 – INCOME TAXES Income Tax Expense Reconciliations The Company’s income tax amounts for the three months ended April 30, 2023 and 2022 differed from corresponding amounts computed by applying the federal corporate income tax rate of 21% to the income before income taxes for the periods as presented below: Three Months Ended April 30, 2023 2022 Computed expected income tax expense $ 631 $ 2,049 Difference resulting from: State income taxes, net of federal tax effect 84 134 Deferred tax asset adjustments 220 66 Foreign tax rate differential (198) (31) Other permanent differences and adjustments, net 158 55 Income tax expense $ 895 $ 2,273 Foreign income tax expense amounts for the three months ended April 30, 2023 and 2022 were not material. Net Operating Loss (“NOL”) Carryback In an effort to combat the adverse economic impacts of the COVID-19 crisis, the U.S. 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 the year ended January 31, 2020, which was approximately $39.5 million. The Company made the appropriate filing with the Internal Revenue Service (the “IRS”) requesting carryback refunds of income taxes paid for the years ended January 31, 2016 and 2015 in the total amount of approximately $12.7 million during the fiscal year ended January 31, 2021 (“Fiscal 2021”) and an updated filing was made during the three months ended April 30, 2023; the IRS has not completed the review and approval of the Company’s refund request. Research and Development Tax Credits During Fiscal 2022, 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 tax credits that may have been available to reduce federal income taxes for Fiscal 2022 and Fiscal 2021. As a result, the Company filed amended federal income tax returns for those years including research and development tax credits in the total amount of $5.8 million, which was netted with a provision for uncertain tax return positions in the amount of $2.4 million. Income Tax Refunds As of April 30, 2023 and January 31, 2023, the balances of other current assets in the condensed consolidated balance sheet included income tax refunds receivable and prepaid income taxes in the total amounts of approximately $16.2 million and $15.3 million, respectively. The income tax refunds included the amount expected to be received from the IRS upon its processing of the Company’s NOL carryback refund request as described above. 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 judgments to apply. The Company is no longer subject to income tax examinations by authorities for its fiscal years ended on or before January 31, 2019, except for several notable exceptions including Ireland, the U.K. and several states where the open periods are one year longer. In May 2023, the Company received notification that its amended federal income tax returns for Fiscal 2021 and Fiscal 2022 were selected for examination. Solar Energy Projects The Company has invested 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 using the equity method; the balances are included in other assets in our condensed 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. As of April 30, 2023, the Company had no remaining cash investment commitments related to these projects. At April 30, 2023 and January 31, 2023, the investment account balances were $1.1 million and $1.2 million, respectively. These investments are expected to provide positive overall returns over their six-year expected lives. During the three months ended April 30, 2023 and 2022, the investment balance was adjusted to reflect the Company’s share of the loss of the investment entities in the amount of approximately $0.1 million for the three months ended April 30, 2023 and its share of the income of the investment entities in the amount of approximately $0.6 million for the three months ended April 30, 2022. These net amounts have been included as other loss or income in the Company’s condensed consolidated statement of earnings for the corresponding periods. Supplemental Cash Flow Information The Company was not required to make any income tax payments during the three months ended April 30, 2023 or 2022. During the three months ended April 30, 2023 and 2022, the Company did not receive any income tax refunds that were material. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Apr. 30, 2023 | |
NET INCOME PER SHARE | |
NET INCOME PER SHARE | NOTE 11 – NET INCOME PER SHARE Basic and diluted net income per share amounts are computed as follows (shares in thousands except in the note): Three Months Ended April 30, 2023 2022 Net income $ 2,109 $ 7,485 Weighted average number of shares outstanding – basic 13,413 14,910 Effect of stock awards (1) 133 82 Weighted average number of shares outstanding – diluted 13,546 14,992 Net income per share Basic $ 0.16 $ 0.50 Diluted $ 0.16 $ 0.50 (1) For the three months ended April 30, 2023 and 2022, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options covering an aggregate of 851,834 and 867,334 shares of common stock, respectively. |
CASH DIVIDENDS AND COMMON STOCK
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | 3 Months Ended |
Apr. 30, 2023 | |
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | |
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | NOTE 12 – CASH DIVIDENDS AND COMMON STOCK REPURCHASES On April 10, 2023, Argan’s board of directors declared a regular quarterly cash dividend in the amount of $0.25 per share of common stock, which was paid stockholders Pursuant to its established program and authorizations provided by Argan’s board of directors, the Company repurchased shares of its common stock during the three months ended April 30, 2023 and 2022. During these periods, the Company repurchased 92,656 shares and 710,879 shares of common stock, all on the open market, for aggregate prices of approximately $3.7 million, or $39.61 per share, and $27.1 million, or $38.09 per share, respectively. In August 2022, the Inflation Reduction Act (the “IRA”) was signed into law, which introduced a 1% excise tax on shares repurchased after December 31, 2022. For the three months ended April 30, 2023, the excise tax was not material. |
CUSTOMER CONCENTRATIONS
CUSTOMER CONCENTRATIONS | 3 Months Ended |
Apr. 30, 2023 | |
CUSTOMER CONCENTRATIONS | |
CUSTOMER CONCENTRATIONS | NOTE 13 – CUSTOMER CONCENTRATIONS The majority of the Company’s consolidated revenues relate to performance by the power industry services segment which provided 68% and 74% of consolidated revenues for the three months ended April 30, 2023 and 2022, respectively. The industrial services segment represented 29% and 22% of consolidated revenues for the three months ended April 30, 2023 and 2022, respectively. The Company’s most significant customer relationships for the three months ended April 30, 2023 included four power industry service customers, which accounted for 16%, 14%, 14% and 13% of consolidated revenues, respectively. The Company’s most significant customer relationship for the three months ended April 30, 2022 included one power industry service customer, which accounted for 48% of consolidated revenues. The accounts receivable balances from three major customers represented 37%, 10% and 10% of the corresponding consolidated balance as of April 30, 2023. Accounts receivable balances from three major customers represented 36%, 12% and 12% of the corresponding consolidated balance as of January 31, 2023. The contract asset balances from three major customers represented 22%, 16% and 12% of the corresponding consolidated balance as of April 30, 2023. Contract asset balances from one major customer represented 70% of the corresponding consolidated balance as of January 31, 2023. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Apr. 30, 2023 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 14 – SEGMENT REPORTING Segments represent components of an enterprise for which discrete financial information is available that is evaluated regularly by the Company’s chief executive officer, who is the chief operating decision maker, in determining how to allocate resources and in assessing performance. The Company’s reportable segments recognize revenues and incur expenses, are organized in separate business units with different management teams, customers, talents and services, and may include more than one operating segment. Intersegment revenues and the related cost of revenues are netted against the corresponding amounts of the segment receiving the intersegment services. For the three months ended April 30, 2023 and 2022, intersegment revenues were not material. Summarized below are certain operating results and financial position data of the Company’s reportable business segments for the three months ended April 30, 2023 and 2022. The “Other” column in each summary includes the Company’s corporate expenses. Three Months Ended Power Industrial Telecom April 30, 2023 Services Services Services Other Totals Revenues $ 70,176 $ 30,307 $ 3,192 $ — $ 103,675 Cost of revenues 60,335 26,562 2,554 — 89,451 Gross profit 9,841 3,745 638 — 14,224 Selling, general and administrative expenses 5,714 1,460 703 2,714 10,591 Income (loss) from operations 4,127 2,285 (65) (2,714) 3,633 Other income (loss), net 2,090 — — (2,719) (629) Income (loss) before income taxes $ 6,217 $ 2,285 $ (65) $ (5,433) 3,004 Income tax expense 895 Net income $ 2,109 Amortization of intangibles $ — $ 98 $ — $ — $ 98 Depreciation 128 304 114 1 547 Property, plant and equipment additions 389 256 — — 645 Current assets $ 303,596 $ 43,946 $ 3,985 $ 73,474 $ 425,001 Current liabilities 160,564 29,226 1,172 1,435 192,397 Goodwill 18,476 9,467 90 — 28,033 Total assets 330,736 61,421 7,071 76,466 475,694 Three Months Ended Power Industrial Telecom April 30, 2022 Services Services Services Other Totals Revenues $ 73,949 $ 22,501 $ 3,827 $ — $ 100,277 Cost of revenues 59,035 18,680 2,824 — 80,539 Gross profit 14,914 3,821 1,003 — 19,738 Selling, general and administrative expenses 5,615 1,759 765 2,436 10,575 Income (loss) from operations 9,299 2,062 238 (2,436) 9,163 Other income, net 584 — 2 9 595 Income (loss) before income taxes $ 9,883 $ 2,062 $ 240 $ (2,427) 9,758 Income tax expense 2,273 Net income $ 7,485 Amortization of intangibles $ — $ 166 $ — $ — $ 166 Depreciation 142 544 122 1 809 Property, plant and equipment additions 52 151 35 — 238 Current assets $ 329,779 $ 27,872 $ 3,565 $ 86,375 $ 447,591 Current liabilities 170,684 12,362 1,685 1,543 186,274 Goodwill 18,476 9,467 90 — 28,033 Total assets 353,570 45,379 7,245 86,616 492,810 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Apr. 30, 2023 | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | NOTE 15 — SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Other current assets consisted of the following at April 30, 2023 and January 31, 2023: April 30, January 31, 2023 2023 Income tax refunds receivable and prepaid income taxes $ 16,233 $ 15,327 Raw materials inventory 12,172 11,903 Prepaid expenses 7,862 4,541 Other 6,109 6,563 Total other current assets $ 42,376 $ 38,334 Accrued expenses consisted of the following at April 30, 2023 and January 31, 2023: April 30, January 31, 2023 2023 Accrued compensation $ 11,382 $ 18,286 Project costs 21,764 17,448 Lease liabilities 1,491 1,567 Other 10,118 12,566 Total accrued expenses $ 44,755 $ 49,867 On March 7, 2023, the Company determined that it had been a victim of a complex criminal scheme, which resulted in fraudulently-induced outbound wire transfers to a third-party account. As a result of the event, the Company incurred a loss of approximately $3.0 million related to the amount of the unrecovered funds. Any amount of this loss expected to be reimbursed to the Company from its insurance policy is not expected to be material. The Company retained specialized legal counsel and a cybersecurity services firm to assist in an independent forensic investigation of the incident and the efforts to recover the funds. As a result, the Company incurred legal, audit and other professional fees in the aggregate amount of $0.2 million related to this event. The total amount of the fraud loss and the professional fees, approximately $3.2 million, is included in other loss in the condensed consolidated statements of earnings for the three months ended April 30, 2023. |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Apr. 30, 2023 | |
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, maintenance, project development, and technical consulting services to the power generation market, including the renewable energy sector. The wide range of customers includes primarily independent power producers, public utilities, power plant equipment suppliers and other commercial firms with significant power requirements with customer projects located in the United States (the “U.S.”), the Republic of Ireland (“Ireland”) and the United Kingdom (the “U.K.”). 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 new plant construction and additions, maintenance turnarounds, shutdowns and emergency mobilizations for industrial operations primarily located in the Southeast region of the U.S. and that may include the fabrication, delivery and installation of steel components such as piping systems and pressure vessels. Through SMC, which conducts business as SMC Infrastructure Solutions, the telecommunications infrastructure services segment provides project management, construction, installation and maintenance services to commercial, local government and federal government customers primarily in the Mid-Atlantic region of the U.S. |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements include the accounts of Argan, its wholly-owned subsidiaries and a variable interest entity (“VIE”) prior to its deconsolidation in the fourth quarter of the year ended January 31, 2023. All significant inter-company balances and transactions have been eliminated in consolidation. In Note 14, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. The Company’s fiscal year ends on January 31 each year. The condensed consolidated balance sheet as of April 30, 2023, the condensed consolidated statements of earnings and stockholders’ equity for the three months ended April 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the three months ended April 30, 2023 and 2022 are unaudited. The condensed consolidated balance sheet as of January 31, 2023 has been derived from audited consolidated financial statements. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements, the notes thereto, and the independent registered public accounting firm’s report thereon, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023 (“Fiscal 2023”). In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, considered necessary for a fair statement of the financial position of the Company as of April 30, 2023, and its earnings and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. |
Accounting Policies | Accounting Policies In March 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its condensed consolidated financial statements. |
Available-For-Sale Securities | Available-For-Sale Securities At each balance sheet date, available-for-sale securities are recorded at fair value, with unrealized gains and, to the extent deemed temporary, unrealized losses reported as a component of accumulated other comprehensive loss. Interest income, accretion of discounts, amortization of premiums, realized gains and realized losses are included in other income or expense, as applicable, in the Company’s condensed consolidated statement of earnings. The Company determines the cost of securities sold based on the specific identification method. The Company determines the appropriate classification of available-for-sale securities based on whether they represent the investment of cash available for current operations, as defined in Accounting Standards Codification (“ASC”) 210-10-45-1 and ASC 210-10-45-2. The classification of the available-for-sale securities is reevaluated at each balance sheet date. The Company considers its available-for-sale securities impaired when a decline in fair value below its cost basis is determined to be other than temporary. The Company evaluates whether the decline in fair value is other than temporary based on the amount and duration of the period that the fair value of the available-for-sale security is less than its cost basis, overall market conditions and trends, the Company’s intent to sell the available-for-sale security and whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery. If a decline in fair value is determined to be other than temporary, the Company records an impairment loss and establishes a new cost basis. |
Fair Values | Fair Values ASC Topic 820 , Fair Value Measurement Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs are quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Inputs are unobservable inputs based on a company’s own assumptions. At April 30, 2023 and January 31, 2023, certain amounts of cash equivalents were invested in money market funds with net assets invested in high-quality money market instruments. Money market funds were classified as Level 1 due to the short-term nature of these instruments and as their fair value is based on quoted prices in active markets for identical assets. As of April 30, 2023, all of the Company’s available-for-sale securities were U.S. Treasury notes and were classified as Level 2, as their fair value is measured based on quoted prices in active markets for similar assets. As of April 30, 2023 and January 31, 2023, the Company did not have any financial assets measured on a recurring basis using Level 3 inputs. The carrying value amounts presented in the condensed consolidated balance sheets for the Company’s other current assets, which primarily include cash, short term investments, accounts receivable and contract assets, and its current liabilities are reasonable estimates of their fair values due to the short-term nature of these items. The following table shows the Company’s financial instruments as of April 30, 2023 and January 31, 2023 that are measured and recorded at fair value on a recurring basis: April 30, 2023 January 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Inputs Inputs Inputs Inputs Inputs Inputs Money market funds $ 112,546 $ — $ — $ 68,647 $ — $ — Available-for-sale securities — 30,376 — — — — Totals $ 112,546 $ 30,376 $ — $ 68,647 $ — $ — |
Treasury Stock | April 30, 2023 January 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Inputs Inputs Inputs Inputs Inputs Inputs Money market funds $ 112,546 $ — $ — $ 68,647 $ — $ — Available-for-sale securities — 30,376 — — — — Totals $ 112,546 $ 30,376 $ — $ 68,647 $ — $ — |
Variable Interest Entity | Variable Interest Entity In January 2018, the Company was deemed to be the primary beneficiary of a VIE that was performing the project development activities related to the planned construction of a new natural gas-fired power plant. In the fourth quarter of Fiscal 2023, the Company was deemed to no longer be the primary beneficiary of the VIE, and the VIE was deconsolidated. Prior to deconsolidation, the account balances of the VIE had been included in the Company’s consolidated financial statements. |
DESCRIPTION OF THE BUSINESS A_3
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
Schedule of financial instruments recorded at fair value on a recurring basis | April 30, 2023 January 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Inputs Inputs Inputs Inputs Inputs Inputs Money market funds $ 112,546 $ — $ — $ 68,647 $ — $ — Available-for-sale securities — 30,376 — — — — Totals $ 112,546 $ 30,376 $ — $ 68,647 $ — $ — |
REVENUES FROM CONTRACTS WITH _2
REVENUES FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
Schedule of consolidated revenues disaggregated by geographical area | Three Months Ended April 30, 2023 2022 United States $ 65,244 $ 80,273 Republic of Ireland 24,856 9,653 United Kingdom 13,575 10,351 Consolidated Revenues $ 103,675 $ 100,277 |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | |
Schedule of available-for-sale securities | April 30, 2023 Allowance for Gross Gross Estimated Amortized Credit Unrealized Unrealized Fair Cost Losses Gains Losses Value U.S. Treasury notes: Due in one to two years $ 15,014 $ — $ — $ 37 $ 14,977 Due in two to three years 15,399 — — — 15,399 Totals $ 30,413 $ — $ — $ 37 $ 30,376 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
INTANGIBLE ASSETS | |
Schedule of company's purchased intangible assets, other than goodwill | April 30, 2023 January 31, 2023 Estimated Gross Accumulated Net Gross Accumulated Net Useful Life Amounts Amortization Amounts Amounts Amortization Amounts Trade names 15 years $ 4,499 $ 2,225 $ 2,274 $ 4,499 $ 2,150 $ 2,349 Customer relationships 10 years 916 679 237 916 656 260 Totals $ 5,415 $ 2,904 $ 2,511 $ 5,415 $ 2,806 $ 2,609 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
COMMITMENTS | |
Schedule of future minimum lease payments for the operating leases | Years Ending January 31, 2024 (remainder) $ 1,244 2025 1,350 2026 1,079 2027 235 2028 213 Thereafter 815 Total lease payments 4,936 Less imputed interest 303 Present value of lease payments 4,633 Less current portion (included in accrued expenses) 1,491 Noncurrent portion (included in noncurrent liabilities) $ 3,142 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
STOCK-BASED COMPENSATION | |
Schedule of stock option activity under the Company's stock plans | A summary of stock option activity under the Stock Plans for the three months ended April 30, 2023, along with corresponding weighted average per share amounts, is presented below (shares in thousands): Weighted Average Weighted Weighted Remaining Average Average Exercise Contractual Grant Date Shares Price Term (years) Fair Value Outstanding, February 1, 2023 1,440 $ 43.84 5.46 $ 10.11 Granted 10 $ 39.47 Exercised (30) $ 18.12 Forfeited (1) $ 33.81 Outstanding, April 30, 2023 1,419 $ 44.36 5.36 $ 10.23 Exercisable, April 30, 2023 1,291 $ 44.80 5.02 $ 10.48 Outstanding, April 30, 2022 1,438 $ 44.12 6.04 $ 10.21 Exercisable, April 30, 2022 1,199 $ 44.87 5.52 $ 10.76 |
Schedule of changes in the number of non-vested options to purchase shares of common stock | Weighted Average Weighted Weighted Remaining Average Average Exercise Contractual Grant Date Shares Price Term (years) Fair Value Outstanding, February 1, 2023 1,440 $ 43.84 5.46 $ 10.11 Granted 10 $ 39.47 Exercised (30) $ 18.12 Forfeited (1) $ 33.81 Outstanding, April 30, 2023 1,419 $ 44.36 5.36 $ 10.23 Exercisable, April 30, 2023 1,291 $ 44.80 5.02 $ 10.48 Outstanding, April 30, 2022 1,438 $ 44.12 6.04 $ 10.21 Exercisable, April 30, 2022 1,199 $ 44.87 5.52 $ 10.76 |
Schedule of changes in restricted stock units | The changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units for the three months ended April 30, 2023, and the weighted average fair value per share for each restricted stock unit, are presented below (shares in thousands): Weighted Average Grant Date Shares Fair Value Outstanding, February 1, 2023 310 $ 30.80 Awarded 96 $ 30.67 Issued (35) $ 31.04 Forfeited (49) $ 16.01 Outstanding, April 30, 2023 322 $ 31.25 Outstanding, April 30, 2022 278 $ 29.38 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
INCOME TAXES | |
Schedule of actual income tax expense amounts | Three Months Ended April 30, 2023 2022 Computed expected income tax expense $ 631 $ 2,049 Difference resulting from: State income taxes, net of federal tax effect 84 134 Deferred tax asset adjustments 220 66 Foreign tax rate differential (198) (31) Other permanent differences and adjustments, net 158 55 Income tax expense $ 895 $ 2,273 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
NET INCOME PER SHARE | |
Schedule of computations of basic and diluted net income per share | Basic and diluted net income per share amounts are computed as follows (shares in thousands except in the note): Three Months Ended April 30, 2023 2022 Net income $ 2,109 $ 7,485 Weighted average number of shares outstanding – basic 13,413 14,910 Effect of stock awards (1) 133 82 Weighted average number of shares outstanding – diluted 13,546 14,992 Net income per share Basic $ 0.16 $ 0.50 Diluted $ 0.16 $ 0.50 (1) For the three months ended April 30, 2023 and 2022, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options covering an aggregate of 851,834 and 867,334 shares of common stock, respectively. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
SEGMENT REPORTING | |
Schedule of operating results and certain financial position data of the Company's reportable business segments | Three Months Ended Power Industrial Telecom April 30, 2023 Services Services Services Other Totals Revenues $ 70,176 $ 30,307 $ 3,192 $ — $ 103,675 Cost of revenues 60,335 26,562 2,554 — 89,451 Gross profit 9,841 3,745 638 — 14,224 Selling, general and administrative expenses 5,714 1,460 703 2,714 10,591 Income (loss) from operations 4,127 2,285 (65) (2,714) 3,633 Other income (loss), net 2,090 — — (2,719) (629) Income (loss) before income taxes $ 6,217 $ 2,285 $ (65) $ (5,433) 3,004 Income tax expense 895 Net income $ 2,109 Amortization of intangibles $ — $ 98 $ — $ — $ 98 Depreciation 128 304 114 1 547 Property, plant and equipment additions 389 256 — — 645 Current assets $ 303,596 $ 43,946 $ 3,985 $ 73,474 $ 425,001 Current liabilities 160,564 29,226 1,172 1,435 192,397 Goodwill 18,476 9,467 90 — 28,033 Total assets 330,736 61,421 7,071 76,466 475,694 Three Months Ended Power Industrial Telecom April 30, 2022 Services Services Services Other Totals Revenues $ 73,949 $ 22,501 $ 3,827 $ — $ 100,277 Cost of revenues 59,035 18,680 2,824 — 80,539 Gross profit 14,914 3,821 1,003 — 19,738 Selling, general and administrative expenses 5,615 1,759 765 2,436 10,575 Income (loss) from operations 9,299 2,062 238 (2,436) 9,163 Other income, net 584 — 2 9 595 Income (loss) before income taxes $ 9,883 $ 2,062 $ 240 $ (2,427) 9,758 Income tax expense 2,273 Net income $ 7,485 Amortization of intangibles $ — $ 166 $ — $ — $ 166 Depreciation 142 544 122 1 809 Property, plant and equipment additions 52 151 35 — 238 Current assets $ 329,779 $ 27,872 $ 3,565 $ 86,375 $ 447,591 Current liabilities 170,684 12,362 1,685 1,543 186,274 Goodwill 18,476 9,467 90 — 28,033 Total assets 353,570 45,379 7,245 86,616 492,810 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | |
Schedule of other current assets | April 30, January 31, 2023 2023 Income tax refunds receivable and prepaid income taxes $ 16,233 $ 15,327 Raw materials inventory 12,172 11,903 Prepaid expenses 7,862 4,541 Other 6,109 6,563 Total other current assets $ 42,376 $ 38,334 |
Schedule of accrued expenses | April 30, January 31, 2023 2023 Accrued compensation $ 11,382 $ 18,286 Project costs 21,764 17,448 Lease liabilities 1,491 1,567 Other 10,118 12,566 Total accrued expenses $ 44,755 $ 49,867 |
DESCRIPTION OF THE BUSINESS A_4
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION - Financial Instruments on a Recurring Basis (Details) - Fair value, recurring - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
Level 1 Inputs | ||
Fair value of assets and liabilities measured on recurring and nonrecurring basis | ||
Totals | $ 112,546 | $ 68,647 |
Level 1 Inputs | Money market funds | ||
Fair value of assets and liabilities measured on recurring and nonrecurring basis | ||
Cash and cash equivalents | 112,546 | $ 68,647 |
Level 2 Inputs | ||
Fair value of assets and liabilities measured on recurring and nonrecurring basis | ||
Available-for-sale-securities | 30,376 | |
Totals | $ 30,376 |
REVENUES FROM CONTRACTS WITH _3
REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Apr. 30, 2023 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |||
Revenue recognized | $ 50.9 | $ 67.3 | |
Retained amounts by project owners | $ 49.1 | $ 25 | |
Amounts of unpriced change orders included in transaction prices | 11.6 | 12.2 |
REVENUES FROM CONTRACTS WITH _4
REVENUES FROM CONTRACTS WITH CUSTOMERS - Remaining Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01 $ in Millions | Apr. 30, 2023 USD ($) |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
Contract backlog amount | $ 0.7 |
Contract backlog (as percent) | 37% |
Performance period | 3 years |
REVENUES FROM CONTRACTS WITH _5
REVENUES FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Disaggregation of Revenues | ||
Totals | $ 103,675 | $ 100,277 |
United States | ||
Disaggregation of Revenues | ||
Totals | 65,244 | 80,273 |
Republic of Ireland | ||
Disaggregation of Revenues | ||
Totals | 24,856 | 9,653 |
United Kingdom | ||
Disaggregation of Revenues | ||
Totals | $ 13,575 | $ 10,351 |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Jan. 31, 2023 | |
Cash and Cash Equivalents | ||
Accrued dividends | $ 0.5 | $ 0.3 |
Held-to-maturity Securities | ||
Cash and Cash Equivalents | ||
Maturity period | 1 year | 1 year |
Weighted average annual interest rates of CDs (as a percent) | 5.20% | 2.50% |
Accrued interest | $ 0.7 | $ 1.8 |
CASH, CASH EQUIVALENTS AND IN_4
CASH, CASH EQUIVALENTS AND INVESTMENTS - Available-for-Sale Securities (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2023 USD ($) | |
Cash and Cash Equivalents | |
Interest receivable | $ 100 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration] | Debt Securities, Available-for-Sale, Current |
Proceeds from sale of debt securities, available-for-sale | $ 0 |
Amounts of gains or losses reclassified out of other comprehensive income | 0 |
US Treasury notes | |
Available-for-sale securities | |
Amortized cost, Due in one to two years | 15,014 |
Amortized Cost, Due in two to three years | 15,399 |
Amortized Cost | 30,413 |
Gross Unrealized Losses | 37 |
Fair value, Due in one to two years | 14,977 |
Fair Value, Due in two to three years | 15,399 |
Fair Value | $ 30,376 |
Minimum | US Treasury notes | |
Cash and Cash Equivalents | |
Available-for-sale securities term | 2 years |
Maximum | US Treasury notes | |
Cash and Cash Equivalents | |
Available-for-sale securities term | 3 years |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Jan. 31, 2023 |
ACCOUNTS RECEIVABLE | ||
Allowance for uncollectible accounts | $ 1.8 | $ 1.9 |
INTANGIBLE ASSETS - Components
INTANGIBLE ASSETS - Components of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Jan. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amounts | $ 5,415 | $ 5,415 |
Accumulated Amortization | 2,904 | 2,806 |
Net Amounts | $ 2,511 | 2,609 |
Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in years) | 15 years | |
Gross Amounts | $ 4,499 | 4,499 |
Accumulated Amortization | 2,225 | 2,150 |
Net Amounts | $ 2,274 | 2,349 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in years) | 10 years | |
Gross Amounts | $ 916 | 916 |
Accumulated Amortization | 679 | 656 |
Net Amounts | $ 237 | $ 260 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 | Apr. 30, 2022 |
Indefinite-Lived Intangible Assets | |||
Goodwill | $ 28,033 | $ 28,033 | $ 28,033 |
TRC. | |||
Indefinite-Lived Intangible Assets | |||
Goodwill | 9,500 | 9,500 | |
GPS. | |||
Indefinite-Lived Intangible Assets | |||
Goodwill | $ 18,500 | $ 18,500 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions | Mar. 06, 2023 | Apr. 30, 2023 | Jan. 31, 2023 |
Revolving Credit Facility | |||
Financing Arrangements | |||
Additional commitment amount | $ 10 | ||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||
Financing Arrangements | |||
Interest rate margin on referred rate | 1.60% | ||
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 | $ 11.5 | $ 8.8 |
COMMITMENTS - Leases (Details)
COMMITMENTS - Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Jan. 31, 2023 | |
Operating leases, options to extend | true | ||
Operating leases, options to terminate | true | ||
Operating lease, right-of-use assets | $ 4,600 | $ 4,800 | |
Operating lease expense | 439 | $ 750 | |
Operating lease payments | $ 400 | 800 | |
Weighted average lease term | 56 months | 58 months | |
Weighted average discount rate | 3.70% | 3.70% | |
Future minimum lease payment | $ 300 | 200 | |
Short-term rentals expense | 3,700 | $ 2,400 | |
Unsatisfied bonded performance obligations | 500,000 | ||
GPS | Financial guarantee | |||
Guarantor obligation maximum exposure | $ 3,600 |
COMMITMENTS - Future minimum le
COMMITMENTS - Future minimum lease payments (Details) $ in Thousands | Apr. 30, 2023 USD ($) |
Operating Leases | |
2024 (remainder) | $ 1,244 |
2025 | 1,350 |
2026 | 1,079 |
2027 | 235 |
2028 | 213 |
Thereafter | 815 |
Total lease payments | 4,936 |
Less imputed interest | 303 |
Present value of lease payments | 4,633 |
Less current portion (included in accrued expenses) | $ 1,491 |
Less current portion (included in accrued expenses) | Accrued expenses |
Non-current portion (included in noncurrent liabilities) | $ 3,142 |
Non-current portion (included in noncurrent liabilities) | Noncurrent liabilities |
COMMITMENTS - Warranties (Detai
COMMITMENTS - Warranties (Details) | 3 Months Ended |
Apr. 30, 2023 | |
Minimum | |
Warranty period | P9M |
Maximum | |
Warranty period | P24M |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | Jan. 31, 2023 | |
STOCK-BASED COMPENSATION | |||
Shares, Outstanding, Beginning balance | 1,440 | ||
Shares, Granted | 10 | ||
Shares, Exercised | (30) | ||
Shares, Forfeited | (1) | ||
Shares, Outstanding, Ending balance | 1,419 | 1,438 | 1,440 |
Shares, Exercisable | 1,291 | 1,199 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 43.84 | ||
Weighted Average Exercise Price, Granted | 39.47 | ||
Weighted Average Exercise Price, Exercised | 18.12 | ||
Weighted Average Exercise Price, Forfeited | 33.81 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 44.36 | $ 44.12 | $ 43.84 |
Weighted Average Exercise Price, Exercisable | $ 44.80 | $ 44.87 | |
Weighted Average Remaining Term (Years), Outstanding | 5 years 4 months 9 days | 6 years 14 days | 5 years 5 months 15 days |
Weighted Average Remaining Term (Years), Exercisable | 5 years 7 days | 5 years 6 months 7 days | |
Weighted Average Fair Value, Outstanding | $ 10.23 | $ 10.21 | $ 10.11 |
Weighted Average Fair Value, Exercisable | $ 10.48 | $ 10.76 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Change in Number of Non-Vested Options to Purchase Shares of Common Stock (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
STOCK-BASED COMPENSATION | ||
Shares, Non-vested, Beginning balance | 194 | |
Shares, Granted | 10 | |
Shares, Vested | (75) | |
Shares, Forfeitures | (1) | |
Shares, Non-vested, Ending balance | 128 | |
Shares, Non-vested | 128 | 239 |
Weighted Average Fair Value, Non-vested, Beginning balance | $ 7.27 | |
Weighted Average Fair Value, Granted | 8.12 | |
Weighted Average Fair Value, Vested | 6.62 | |
Weighted Average Fair Value, Forfeitures | 5.68 | |
Weighted Average Fair Value, Non-vested, Ending balance | 7.72 | |
Weighted Average Fair Value, Non-vested | $ 7.72 | $ 7.45 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Change in restricted stock units (Details) - Restricted Stock Units - $ / shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
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) | 310 | |
Awarded (in shares) | 96 | |
Issued (in shares) | (35) | |
Forfeited (in shares) | (49) | |
Outstanding, Ending balance (in shares) | 322 | |
Outstanding (in shares) | 322 | 278 |
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) | $ 30.80 | |
Awarded, Fair value (Per share) | 30.67 | |
Issued, Fair value (Per share) | 31.04 | |
Forfeited (Per share) | 16.01 | |
Outstanding, Ending balance Fair value (Per share) | 31.25 | |
Outstanding, Fair value (per share) | $ 31.25 | $ 29.38 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Jun. 23, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Cash dividends deemed paid on shares | 1,306 | ||
Percentage Reduction In The Aggregate Fair Value Of Stock Option | 88.50% | ||
Stock compensation expense | $ 1,034 | $ 920 | |
Unrecognized compensation cost | $ 8,400 | ||
Compensation expense recognize, period | 3 years | ||
Intrinsic value of the stock options exercised | $ 700 | ||
Intrinsic value of outstanding stock options | 3,300 | ||
Intrinsic value of exercisable stock options | $ 3,000 | ||
Period used for calculations | 5 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Period used for calculations | 3 years | ||
Maximum | |||
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 reserved for issuance | 1,825,083 | ||
Number of shares of common stock available for award | 84,273 | ||
Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
The number of shares issuable under restricted stock units awarded during the period | 6,000 | 47,000 | |
Earnings per share performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
The number of shares issuable under restricted stock units awarded during the period | 15,000 | ||
ISOs/NSOs | Stock Plan | |||
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) | 96,000 | ||
Incentive stock option award maximum expiration period | 3 years | ||
Vested | 35,000 | ||
Renewable Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
The number of shares issuable under restricted stock units awarded during the period | 7,500 | 7,500 | |
Time Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
The number of shares issuable under restricted stock units awarded during the period | 45,300 | 57,500 | |
Senior executives | Performance-based restricted stock units | Stock Plan | |||
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% |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
INCOME TAXES | ||
Federal corporate income tax rate (as percent) | 21% | 21% |
Computed expected income tax expense | $ 631 | $ 2,049 |
State income taxes, net of federal tax effect | 84 | 134 |
Deferred tax asset adjustments | 220 | 66 |
Foreign tax rate differential | (198) | (31) |
Other permanent differences and adjustments, net | 158 | 55 |
Income tax expense | $ 895 | $ 2,273 |
INCOME TAXES - Net Operating Lo
INCOME TAXES - Net Operating Loss Carryback (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2023 | Jan. 31, 2021 | Jan. 31, 2020 | |
INCOME TAXES | |||
Increase in loss carryback period for certain losses | 5 years | ||
Domestic net operating loss carryback | $ 39.5 | ||
Income tax receivable | $ 12.7 |
INCOME TAXES - Research and Dev
INCOME TAXES - Research and Development Tax Credits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Jan. 31, 2023 | |
INCOME TAXES | ||
Federal research and development tax credits | $ 5,800 | |
Development tax credit | 2,400 | |
Income tax refunds and prepaid income taxes | $ 16,233 | $ 15,327 |
INCOME TAXES - Solar Energy Pro
INCOME TAXES - Solar Energy Projects And Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Jan. 31, 2023 | |
Net Investment Income [Line Items] | |||
Investment account balances | $ 1,100 | $ 1,200 | |
Expected life of investment | 6 years | ||
Loss of investment | $ (32) | $ 610 | |
Other income (expense) | |||
Net Investment Income [Line Items] | |||
Loss of investment | $ 100 | $ 600 |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
NET INCOME PER SHARE | ||
Net income | $ 2,109 | $ 7,485 |
Weighted average number of shares outstanding - basic | 13,413 | 14,910 |
Effects of stock awards | 133 | 82 |
Weighted average number of shares outstanding - diluted | 13,546 | 14,992 |
Basic (in dollars per share) | $ 0.16 | $ 0.50 |
Diluted (in dollars per share) | $ 0.16 | $ 0.50 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN - Additional information (Details) - shares | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
NET INCOME PER SHARE | ||
Antidilutive common stock | 851,834 | 867,334 |
CASH DIVIDENDS AND COMMON STO_2
CASH DIVIDENDS AND COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Apr. 28, 2023 | Apr. 10, 2023 | Apr. 29, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | |||||
Regular cash dividend declared per common stock | $ 0.25 | $ 0.25 | $ 0.25 | ||
Common stock repurchases (in shares) | 92,656 | 710,879 | |||
Common stock repurchased | $ 3,681 | $ 27,077 | |||
Share price | $ 39.61 | $ 38.09 | |||
Regular cash dividend paid per common stock | $ 0.25 | $ 0.25 |
CUSTOMER CONCENTRATIONS (Detail
CUSTOMER CONCENTRATIONS (Details) - customer | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | Jan. 31, 2023 | |
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 | 3 | 1 | |
Customer Concentration Risk [Member] | Major Customer One [Member] | Accounts Receivable [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 37% | 36% | |
Customer Concentration Risk [Member] | Major Customer One [Member] | Contract Asset | |||
Customer Concentrations | |||
Percentage of major customers or segments | 22% | 70% | |
Customer Concentration Risk [Member] | Major Customer Two [Member] | Accounts Receivable [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 10% | 12% | |
Customer Concentration Risk [Member] | Major Customer Two [Member] | Contract Asset | |||
Customer Concentrations | |||
Percentage of major customers or segments | 16% | ||
Customer Concentration Risk [Member] | Major Customer Three [Member] | Accounts Receivable [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 12% | ||
Customer Concentration Risk [Member] | Major Customer Three [Member] | Contract Asset | |||
Customer Concentrations | |||
Percentage of major customers or segments | 12% | ||
Power Industry Services [Member] | Product Concentration Risk [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 68% | 74% | |
Power Industry Services [Member] | Customer Concentration Risk [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Number of customers | 4 | 1 | |
Power Industry Services [Member] | Customer Concentration Risk [Member] | Major Customer One [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 16% | 48% | |
Power Industry Services [Member] | Customer Concentration Risk [Member] | Major Customer Two [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 14% | ||
Power Industry Services [Member] | Customer Concentration Risk [Member] | Major Customer Three [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 14% | ||
Power Industry Services [Member] | Customer Concentration Risk [Member] | Major Customer Four | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 13% | ||
Industry services | Product Concentration Risk [Member] | Revenue [Member] | |||
Customer Concentrations | |||
Percentage of major customers or segments | 29% | 22% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2023 USD ($) segment | Apr. 30, 2022 USD ($) | Jan. 31, 2023 USD ($) | |
Segment Reporting Information | |||
Operating segment | segment | 1 | ||
Revenues | $ 103,675 | $ 100,277 | |
Cost of revenues | 89,451 | 80,539 | |
Gross profit | 14,224 | 19,738 | |
Selling, general and administrative expenses | 10,591 | 10,575 | |
Income (loss) from operations | 3,633 | 9,163 | |
Other income (loss), net | (629) | 595 | |
Income (loss) before income taxes | 3,004 | 9,758 | |
Income tax expense | 895 | 2,273 | |
Net income | 2,109 | 7,485 | |
Amortization of intangibles | 98 | 166 | |
Depreciation | 547 | 809 | |
Property, plant and equipment additions | 645 | 238 | |
Current assets | 425,001 | 447,591 | $ 438,702 |
Current liabilities | 192,397 | 186,274 | 202,503 |
Goodwill | 28,033 | 28,033 | 28,033 |
Total assets | 475,694 | 492,810 | $ 489,487 |
Other [Member] | |||
Segment Reporting Information | |||
Selling, general and administrative expenses | 2,714 | 2,436 | |
Income (loss) from operations | (2,714) | (2,436) | |
Other income (loss), net | (2,719) | 9 | |
Income (loss) before income taxes | (5,433) | (2,427) | |
Depreciation | 1 | 1 | |
Current assets | 73,474 | 86,375 | |
Current liabilities | 1,435 | 1,543 | |
Total assets | 76,466 | 86,616 | |
Power Industry Services [Member] | |||
Segment Reporting Information | |||
Revenues | 70,176 | 73,949 | |
Cost of revenues | 60,335 | 59,035 | |
Gross profit | 9,841 | 14,914 | |
Selling, general and administrative expenses | 5,714 | 5,615 | |
Income (loss) from operations | 4,127 | 9,299 | |
Other income (loss), net | 2,090 | 584 | |
Income (loss) before income taxes | 6,217 | 9,883 | |
Depreciation | 128 | 142 | |
Property, plant and equipment additions | 389 | 52 | |
Current assets | 303,596 | 329,779 | |
Current liabilities | 160,564 | 170,684 | |
Goodwill | 18,476 | 18,476 | |
Total assets | 330,736 | 353,570 | |
Industrial Services | |||
Segment Reporting Information | |||
Revenues | 30,307 | 22,501 | |
Cost of revenues | 26,562 | 18,680 | |
Gross profit | 3,745 | 3,821 | |
Selling, general and administrative expenses | 1,460 | 1,759 | |
Income (loss) from operations | 2,285 | 2,062 | |
Income (loss) before income taxes | 2,285 | 2,062 | |
Amortization of intangibles | 98 | 166 | |
Depreciation | 304 | 544 | |
Property, plant and equipment additions | 256 | 151 | |
Current assets | 43,946 | 27,872 | |
Current liabilities | 29,226 | 12,362 | |
Goodwill | 9,467 | 9,467 | |
Total assets | 61,421 | 45,379 | |
Telecommunications Infrastructure Services [Member] | |||
Segment Reporting Information | |||
Revenues | 3,192 | 3,827 | |
Cost of revenues | 2,554 | 2,824 | |
Gross profit | 638 | 1,003 | |
Selling, general and administrative expenses | 703 | 765 | |
Income (loss) from operations | (65) | 238 | |
Other income (loss), net | 2 | ||
Income (loss) before income taxes | (65) | 240 | |
Depreciation | 114 | 122 | |
Property, plant and equipment additions | 35 | ||
Current assets | 3,985 | 3,565 | |
Current liabilities | 1,172 | 1,685 | |
Goodwill | 90 | 90 | |
Total assets | $ 7,071 | $ 7,245 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | ||
Income tax refunds receivable and prepaid income taxes | $ 16,233 | $ 15,327 |
Raw materials inventory | 12,172 | 11,903 |
Prepaid expenses | 7,862 | 4,541 |
Other | 6,109 | 6,563 |
Total other current assets | $ 42,376 | $ 38,334 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | ||
Accrued compensation | $ 11,382 | $ 18,286 |
Project costs | 21,764 | 17,448 |
Lease liabilities | 1,491 | 1,567 |
Other | 10,118 | 12,566 |
Total accrued expenses | $ 44,755 | $ 49,867 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Additional Information (Details) - Fraudulently Induced Payment - USD ($) $ in Millions | 3 Months Ended | |
Mar. 07, 2023 | Apr. 30, 2023 | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | ||
Unrecoverable funds amount | $ 3 | |
Professional fees | $ 0.2 | |
Unusual or infrequent item gross loss | $ 3.2 |