Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2024 | Apr. 05, 2024 | Jul. 31, 2023 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2024 | ||
Document Transition Report | false | ||
Entity File Number | 001-31756 | ||
Entity Registrant Name | ARGAN INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-1947195 | ||
Entity Address, Address Line One | One Church Street, Suite 201 | ||
Entity Address, City or Town | Rockville | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20850 | ||
City Area Code | 301 | ||
Local Phone Number | 315-0027 | ||
Title of 12(b) Security | Common Stock, $0.15 par value | ||
Trading Symbol | AGX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Icfr Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 296,708,995 | ||
Entity Common Stock, Shares Outstanding | 13,240,121 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Firm ID | 248 | ||
Auditor Location | Arlington, Virginia | ||
Entity Central Index Key | 0000100591 | ||
Document Fiscal Year Focus | 2024 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
CONSOLIDATED STATEMENTS OF EARNINGS | |||
REVENUES | $ 573,333 | $ 455,040 | $ 509,370 |
Cost of revenues | 492,499 | 368,679 | 409,638 |
GROSS PROFIT | 80,834 | 86,361 | 99,732 |
Selling, general and administrative expenses | 44,376 | 44,692 | 47,321 |
Impairment loss | 7,901 | ||
INCOME FROM OPERATIONS | 36,458 | 41,669 | 44,510 |
Other income, net | 12,475 | 4,331 | 2,552 |
INCOME BEFORE INCOME TAXES | 48,933 | 46,000 | 47,062 |
Income tax expense | 16,575 | 11,296 | 11,356 |
NET INCOME | 32,358 | 34,704 | 35,706 |
Net income (loss) attributable to non-controlling interest | 1,606 | (2,538) | |
NET INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | 32,358 | 33,098 | 38,244 |
Foreign currency translation adjustments | (920) | (425) | (1,370) |
Net unrealized gains on available-for-sale securities | 199 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | $ 31,637 | $ 32,673 | $ 36,874 |
NET INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. | |||
Basic (in dollars per share) | $ 2.42 | $ 2.35 | $ 2.43 |
Diluted (in dollars per share) | $ 2.39 | $ 2.33 | $ 2.40 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||
Basic (in shares) | 13,365 | 14,083 | 15,715 |
Diluted (in shares) | 13,548 | 14,176 | 15,913 |
CASH DIVIDENDS PER SHARE | $ 1.10 | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 197,032 | $ 173,947 |
Investments | 215,373 | 151,511 |
Accounts receivable, net | 47,326 | 50,132 |
Contract assets | 48,189 | 24,778 |
Other current assets | 39,259 | 38,334 |
TOTAL CURRENT ASSETS | 547,179 | 438,702 |
Property, plant and equipment, net | 11,021 | 10,430 |
Goodwill | 28,033 | 28,033 |
Intangible assets, net | 2,217 | 2,609 |
Deferred taxes, net | 2,259 | 3,689 |
Right-of-use and other assets | 7,520 | 6,024 |
TOTAL ASSETS | 598,229 | 489,487 |
CURRENT LIABILITIES | ||
Accounts payable | 39,485 | 56,375 |
Accrued expenses | 81,721 | 49,867 |
Contract liabilities | 181,054 | 96,261 |
TOTAL CURRENT LIABILITIES | 302,260 | 202,503 |
Noncurrent liabilities | 5,030 | 6,087 |
TOTAL LIABILITIES | 307,290 | 208,590 |
COMMITMENTS AND CONTINGENCIES (see Notes 9 and 10) | ||
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; 13,242,520 and 13,441,590 shares outstanding at January 31, 2024 and 2023, respectively | 2,374 | 2,374 |
Additional paid-in capital | 164,183 | 162,208 |
Retained earnings | 225,507 | 207,832 |
Less treasury stock, at cost - 2,585,769 and 2,386,699 shares at January 31, 2024 and 2023, respectively | (97,528) | (88,641) |
Accumulated other comprehensive loss | (3,597) | (2,876) |
TOTAL STOCKHOLDERS' EQUITY | 290,939 | 280,897 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 598,229 | $ 489,487 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2024 | Jan. 31, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 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 (in dollars per share) | $ 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 | 13,242,520 | 13,441,590 |
Treasury stock, shares | 2,585,769 | 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 Interest | Total |
Balances at Jan. 31, 2021 | $ 2,356 | $ 153,315 | $ 166,110 | $ (33) | $ (1,081) | $ 1,741 | $ 322,408 |
Balances (in shares) at Jan. 31, 2021 | 15,702,969 | ||||||
Net income (loss) | 38,244 | (2,538) | 35,706 | ||||
Foreign currency translation loss | (1,370) | (1,370) | |||||
Stock compensation expense | 3,459 | 3,459 | |||||
Stock option exercises | $ 12 | 1,416 | 1,428 | ||||
Stock option exercises (in shares) | 82,471 | ||||||
Common stock repurchases | (20,372) | $ (20,372) | |||||
Common stock repurchases (in shares) | (527,752) | (527,752) | |||||
Cash dividends | (15,664) | $ (15,664) | |||||
Balances at Jan. 31, 2022 | $ 2,368 | 158,190 | 188,690 | (20,405) | (2,451) | (797) | 325,595 |
Balances (in shares) at Jan. 31, 2022 | 15,257,688 | ||||||
Net income (loss) | 33,098 | 1,606 | 34,704 | ||||
Foreign currency translation loss | (425) | (425) | |||||
Stock compensation expense | 3,958 | 3,958 | |||||
Stock option exercises | $ 6 | 60 | 66 | ||||
Stock option exercises (in shares) | 39,616 | ||||||
Common stock repurchases | (68,236) | $ (68,236) | |||||
Common stock repurchases (in shares) | (1,855,714) | (1,855,714) | |||||
Cash dividends | (13,956) | $ (13,956) | |||||
Distribution to non-controlling interest | (677) | (677) | |||||
Deconsolidation of VIEs | $ (132) | (132) | |||||
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 (loss) | 32,358 | 32,358 | |||||
Foreign currency translation loss | (920) | (920) | |||||
Net unrealized gains on available-for-sale securities | 199 | 199 | |||||
Stock compensation expense | 4,455 | $ 4,455 | |||||
Stock option exercises (in shares) | 94,000 | ||||||
Stock option exercises and restricted stock unit settlements, net of shares withheld for exercise price and withholding taxes | (2,480) | 3,577 | $ 1,097 | ||||
Stock option exercises and restricted stock unit settlements, net of shares withheld for exercise price and withholding taxes (in shares) | 104,090 | ||||||
Common stock repurchases | (12,464) | $ (12,464) | |||||
Common stock repurchases (in shares) | (303,160) | (230,160) | |||||
Cash dividends | (14,683) | $ (14,683) | |||||
Balances at Jan. 31, 2024 | $ 2,374 | $ 164,183 | $ 225,507 | $ (97,528) | $ (3,597) | $ 290,939 | |
Balances (in shares) at Jan. 31, 2024 | 13,242,520 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
NET INCOME | $ 32,358 | $ 34,704 | $ 35,706 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Stock compensation expense | 4,455 | 3,958 | 3,459 |
Changes in accrued interest on investments | (3,899) | (1,735) | 29 |
Depreciation | 2,013 | 2,983 | 3,367 |
Lease expense | 1,906 | 2,554 | 3,391 |
Deferred income tax expense (benefit) | 1,333 | (3,232) | (208) |
Amortization of intangible assets | 392 | 732 | 870 |
Equity in loss (income) of solar energy investments | 130 | (1,113) | 466 |
Provisions for credit losses | 92 | 2,381 | |
Impairment loss | 7,901 | ||
Other | 198 | 7 | (71) |
Changes in operating assets and liabilities | |||
Accounts receivable | 2,764 | (23,246) | (480) |
Contract assets | (23,411) | (19,874) | 21,741 |
Other assets | (1,004) | (3,346) | (241) |
Accounts payable and accrued expenses | 14,830 | 9,084 | (5,742) |
Contract liabilities | 84,793 | (31,629) | (44,154) |
Net cash provided by (used in) operating activities | 116,858 | (30,061) | 28,415 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of short-term investments | (115,000) | (249,750) | (90,000) |
Maturities of short-term investments | 159,750 | 190,000 | 90,000 |
Purchases of available-for-sale securities | (104,492) | ||
Purchases of property, plant and equipment | (2,756) | (3,372) | (1,422) |
Investments in solar energy projects | (5,109) | (5,016) | |
Acquisition of Lee Telecom, Inc. | (600) | ||
Net cash used in investing activities | (67,607) | (63,122) | (7,038) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Common stock repurchases | (12,464) | (68,236) | (20,372) |
Payments of cash dividends | (14,683) | (13,956) | (15,664) |
Distribution to non-controlling interest | (677) | ||
Proceeds from share-based award settlements | 1,097 | 66 | 1,428 |
Net cash used in financing activities | (26,050) | (82,803) | (34,608) |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (116) | (539) | (2,968) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 23,085 | (176,525) | (16,199) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 173,947 | 350,472 | 366,671 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 197,032 | 173,947 | 350,472 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Investments in solar energy projects not yet paid | 3,312 | ||
Right-of-use assets obtained in exchange for lease obligations | 2,444 | 3,678 | 3,525 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Cash paid for income taxes, net of refunds | 14,297 | 6,665 | 13,897 |
Cash paid for operating leases | $ 1,910 | $ 2,552 | $ 3,290 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Jan. 31, 2024 | |
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. The customers include 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 construction services reportable segment provides field 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 Company’s fiscal year ends on January 31 of each year. The consolidated financial statements include the accounts of Argan, its wholly owned subsidiaries, a variable interest entity (“VIE”) prior to its deconsolidation in the fourth quarter of the year ended January 31, 2023 (see Note 15). All significant intercompany balances and transactions have been eliminated in consolidation. In Note 17, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. Use of Estimates Revenue Recognition 1. Identify the contract, 2. Identify the performance obligations of the contract, 3. Determine the transaction price of the contract, 4. Allocate the transaction price to the performance obligations, and 5. Recognize revenue. The Company focuses on the transfer of the contractor’s control of the goods and/or services to the customer. 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. For its time-and-materials contracts, the Company is generally able to elect the right-to-invoice practical expedient. This practical expedient permits the Company to recognize revenue equal to the value of the performance completed to date, provided that the Company has a right to invoice 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. Variable Consideration Amounts for unapproved change orders 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 also 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. 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. Contract Assets and Liabilities 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 our 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. 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. 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. Remaining Unsatisfied Performance Obligations Substantially all of the Company’s customer contracts include the right for customers to terminate contracts for convenience. The value of future work that the Company is contractually obligated to perform pursuant to active customer contracts should not be included in remaining unsatisfied performance obligations (“RUPO”) when the corresponding contracts include termination for convenience clauses without substantial penalties accruing to the customers upon such terminations. 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. These types of arrangements do not qualify as RUPO. 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 amounts 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 the consolidated financial statements. Cash Equivalents Available-For-Sale Securities The Company evaluates whether a decline in the fair value of AFS securities below amortized cost basis is credit-related or due to other factors. If the Company intends to sell the AFS security or it is more likely than not that the Company would be required to sell the AFS security before recovery, impairment is recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. If a portion of the unrealized loss is credit-related, the impairment is recorded as an allowance on the balance sheet with a corresponding adjustment to earnings. Credit recovery is recorded as an adjustment to the allowance and earnings in the period in which credit conditions improve. Property, Plant and Equipment five Goodwill The Company identifies a potential impairment loss by comparing the fair value of a reporting unit with the reporting unit’s carrying amount, including goodwill. In the quantitative approach, the fair value of the reporting unit is estimated using various market-based and income-based valuation techniques as applicable in the particular circumstances. If the fair value of the reporting unit exceeds the related carrying amount, goodwill of the reporting unit is not deemed to be impaired. If the carrying amount of the reporting unit exceeds its fair value, a goodwill impairment loss is recorded in an amount equal to the excess of the unit’s carrying value over its fair value, not to exceed the amount of goodwill allocated to the reporting unit. An alternative method allows the Company to first assess qualitative factors to decide whether it is necessary to perform the quantitative goodwill impairment test. It is not required to calculate the fair value of a reporting unit unless management concludes, based on a qualitative assessment, that it is more likely than not that its fair value may be less than the corresponding carrying amount. The professional guidance for this evaluation identifies the types of factors which the Company should consider in conducting the qualitative assessment including macroeconomic, industry, market and entity-specific factors. Long-Lived Assets Leases 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. Right-of-use assets and lease liabilities related to short-term leases are excluded from the consolidated balance sheets. 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. Income Taxes The Company accounts for uncertain tax positions in accordance with current accounting guidance which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on the income tax returns of the Company. Management evaluates and the Company records the effect of any uncertain tax position based on the amount that management deems is more likely than not (i.e., greater than a 50% probability) to be sustained upon examination and ultimate settlement with the tax authorities in the applicable tax jurisdiction. Interest incurred related to overdue income taxes is included in income tax expense; franchise taxes and income tax penalties are included in selling, general and administrative expenses. Share-Based Payments 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 total stock return performance-based restricted stock units (“PRSUs”) are 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. The fair value amounts of PRSUs are recorded to stock compensation expense using the straight-line method over the requisite service period, which is generally three years. For earnings per share performance-based stock units (“ERSUs”) and renewable energy performance-based restricted stock units (“RRSUs”), 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 these stock-based awards with performance conditions, compensation expense is recognized using the graded attribution method over the requisite service period when it is probable that the performance conditions will be satisfied. For time-based restricted stock units (“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. TRSUs awarded by the Company are generally subject to a service-based vesting condition, which is generally three years. For these stock-based awards subject to service-based vesting conditions, the fair value amounts are recorded in stock compensation expense over the three-year contractual lapsing periods for the corresponding restrictions. For each exercise of a stock option or each vesting of a restricted stock unit, the Company determines whether the difference between the deduction for income tax reporting purposes created at that time and the related compensation expense previously recorded for financial reporting purposes results in either an excess income tax benefit or an income tax deficiency which is recognized, accordingly, as income tax benefit or expense in the corresponding consolidated statement of earnings. Fair Value of Financial Instruments , 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. The carrying values presented in the consolidated balance sheets for the Company’s cash, certificates of deposit (“CD’s”), accounts receivable and contract assets, and the Company’s current liabilities are reasonable estimates of their fair values due to the short-term nature of these instruments. Foreign Currency Translation Foreign currency transactions are remeasured at current exchange rates, with adjustments recorded as foreign currency gains or losses. Net foreign currency gains and losses are included in other income, net, in the consolidated statements of earnings. For the years ended January 31, 2024 (“Fiscal 2024”), 2023 (“Fiscal 2023”) and 2022 (“Fiscal 2022”), such amounts were not material. Treasury Stock Net Income Per Share RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its consolidated financial statements. |
REVENUES FROM CONTRACTS WITH CU
REVENUES FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Jan. 31, 2024 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | NOTE 2 – REVENUES FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenues The following table presents consolidated revenues for Fiscal 2024, Fiscal 2023 and Fiscal 2022, disaggregated by the geographic area where the corresponding projects were located: 2024 2023 2022 United States $ 334,244 $ 328,850 $ 456,211 Republic of Ireland 198,701 68,242 35,044 United Kingdom 40,388 57,948 17,521 Other — — 594 Consolidated Revenues $ 573,333 $ 455,040 $ 509,370 Revenues for projects located in Ireland and the U.K. are attributed to the power industry services segment. 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 17 to the consolidated financial statements. Contract Loss For a project being performed by APC to construct a gas-fired power facility in Northern Ireland, an estimated loss at completion of the project of approximately $10.0 million was recognized in the latter half of Fiscal 2024. Accordingly, APC recorded a loss during Fiscal 2024 in the amount of approximately $13.6 million, which includes an unfavorable adjustment of estimated gross profit recorded in the prior fiscal year. This project is expected to be completed by APC during the first half of the fiscal year ending January 31, 2025 (“Fiscal 2025”). Contract Assets and Liabilities 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. This results in typically larger contract liability balances early in contract lives that decline over the terms of the corresponding contracts. During the fiscal year ended January 31, 2024, there were no material unusual or one-time adjustments to contract liabilities. The amounts of revenues recognized during Fiscal 2024 and Fiscal 2023 that were included in the balances of contract liabilities as of January 31, 2023 and 2022, were approximately $95.5 million and $131.0 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. The amounts retained by project owners and other customers under construction contracts at January 31, 2024, and 2023 were $21.2 million and $49.1 million, respectively. Variable Consideration Amounts for unapproved change orders 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 Company also 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. At January 31, 2024 and 2023, the aggregate amounts of such contract variations that were included in the transaction prices and that were still pending customer approval were $8.4 million and $11.6 million, respectively. Remaining Unsatisfied Performance Obligations At January 31, 2024, the Company had RUPO of $0.7 billion. The largest portion of RUPO at any date usually relates to engineering, procurement and construction (“EPC”) services 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 69% of the RUPO amount at January 31, 2024 will be included in the amount of consolidated revenues that will be recognized during Fiscal 2025. Most of the remaining amount of the RUPO amount at January 31, 2024 is expected to be recognized in revenues during the fiscal years ending January 31, 2026 (“Fiscal 2026”) and 2027 (“Fiscal 2027”). 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 January 31, 2024. 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. |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Jan. 31, 2024 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS At January 31, 2024 and 2023, certain amounts of cash equivalents were invested in a money market fund with net assets invested in high-quality money market instruments, including U.S. Treasury obligations; obligations of U.S. government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by such obligations. Dividend income related to money market investments is recorded when earned. The balances of accrued dividends at January 31, 2024 and 2023 were $0.7 million and $0.3 million, respectively. Investments The Company’s investments consisted of the following as of January 31, 2024 and 2023: 2024 2023 Short-term investments $ 109,489 $ 151,511 Available-for-sale securities 105,884 — Total investments $ 215,373 $ 151,511 Short-Term Investments Short-term investments as of January 31, 2024 and 2023 consisted solely of certificates of deposit (“CDs”) with initial maturities of one year or less purchased from Bank of America, N.A. (the “Bank”). 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 January 31, 2024 and 2023, the weighted average annual interest rates of the outstanding CDs were 5.4% and 2.5%, respectively. The balances of accrued interest on the CDs at January 31, 2024 and 2023 were $4.5 million and $1.8 million, respectively. Available-For-Sale Securities AFS securities as of January 31, 2024 consisted of U.S. Treasury notes and a U.S. corporate debt security with original maturities of two January 31, 2024 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 $ 50,634 $ — $ 305 $ 102 $ 50,837 Due in two to three years 45,583 — 263 128 45,718 U.S. corporate debt security: Due in two to three years 9,406 — — 77 9,329 Totals $ 105,623 $ — $ 568 $ 307 $ 105,884 As of January 31, 2024, interest receivable in the amount of $1.3 million is included Earnings on Invested Funds Earnings on invested funds for Fiscal 2024, Fiscal 2023 and Fiscal 2022 were $14.1 million, $3.4 million and $3.0 million, respectively, and are included in other income, net, in the consolidated statements of earnings. Concentration Risk The Company has a substantial portion of its cash on deposit in the U.S. with the Bank or invested in CDs purchased from the Bank. In addition, the Company has cash invested in a money market fund at a separate institution. 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. As of January 31, 2024, approximately 12% of the Company’s cash and cash equivalents were held by local financial institutions in Ireland and the U.K. Management does not believe that the combined amount of the CDs and the cash deposited with the Bank, cash invested in the money market fund, and cash balances maintained at financial institutions in Ireland and the U.K., in excess of government-insured levels, represent material risks. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jan. 31, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 4 – FAIR VALUE MEASUREMENTS The following table presents the Company’s financial instruments as of January 31, 2024 and 2023 that are measured and recorded at fair value on a recurring basis: January 31, 2024 January 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Inputs Inputs Inputs Inputs Inputs Inputs Cash equivalents: Money market fund $ 126,646 $ — $ — $ 68,647 $ — $ — Available-for-sale securities: U.S. Treasury notes — 96,555 — — — — U.S. corporate debt security — 9,329 — — — — Totals $ 126,646 $ 105,884 $ — $ 68,647 $ — $ — |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Jan. 31, 2024 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 5 – 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 construction 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 receivable may 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 Fiscal 2024 and Fiscal 2023 were insignificant. For Fiscal 2022, the amount of the provision for credit losses was $2.4 million. The amounts of the allowance for credit losses as of January 31, 2024 and 2023, were $1.8 million and $1.9 million, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Jan. 31, 2024 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS Goodwill The Company used a qualitative approach to assess the goodwill of the GPS reporting unit, which is included in the power industry services segment, as of November 1, 2023 and 2022. At each date, the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded the corresponding carrying value. Therefore, completion of the quantitative impairment assessment was considered to be unnecessary in each case. Similarly, the Company used a qualitative approach to assess the goodwill of the TRC reporting unit, which represents the industrial construction services segment, as of November 1, 2023 and 2022 and concluded that it was more likely than not that the fair value of the reporting unit exceeded the corresponding carrying value. Therefore, the completion of the quantitative impairment assessment was considered to be unnecessary. During Fiscal 2022, the Company completed the acquisition of Lee Telecom, Inc. (“LTI”), which is located in Hampton, Virginia. The results of operations of LTI are included in the Company’s telecommunications infrastructure services segment. The acquisition represented a purchase of the assets of LTI, for which the Company paid $0.6 million cash, including customer contracts and goodwill. The changes in the balances of the Company’s goodwill by reportable segment for Fiscal 2024 and Fiscal 2023 were as follows: Power Industrial Telecom Services Services Services Totals Goodwill as of February 1, 2022 $ 18,476 $ 9,467 $ 90 $ 28,033 Impairment losses — — — — Goodwill as of January 31, 2023 18,476 9,467 90 28,033 Impairment losses — — — — Goodwill as of January 31, 2024 $ 18,476 $ 9,467 $ 90 $ 28,033 Balances, January 31, 2024: Goodwill $ 22,525 $ 14,365 $ 90 $ 36,980 Accumulated impairment losses (4,049) (4,898) — (8,947) Goodwill as of January 31, 2024 $ 18,476 $ 9,467 $ 90 $ 28,033 As of January 31, 2024, the accumulated impairment losses for the power industry services segment relate solely to the APC reporting unit. For income tax reporting purposes, the 15-year Other Intangible Assets The Company’s intangible assets, other than goodwill, relate primarily to the industrial construction services segment and consisted of the following as of January 31, 2024 and 2023: January 31, 2024 January 31, 2023 Estimated Gross Accumulated Net Gross Accumulated Net Useful Life Amounts Amortization Amounts Amounts Amortization Amounts Trade name 15 years $ 4,499 $ 2,450 $ 2,049 $ 4,499 $ 2,150 $ 2,349 Customer relationships 10 years 916 748 168 916 656 260 Totals $ 5,415 $ 3,198 $ 2,217 $ 5,415 $ 2,806 $ 2,609 The amounts related to the trade name that became fully amortized during Fiscal 2023 were removed from the table. The Company believes that the useful life of the remaining trade name represents the remaining number of years that such intangible asset is expected to contribute to future cash flows. There were no additions to other intangible assets during Fiscal 2024 or Fiscal 2023. In addition, there were no impairment losses related to the assets for Fiscal 2024, Fiscal 2023 or Fiscal 2022. Amortization expense related to intangible assets for Fiscal 2024, Fiscal 2023 and Fiscal 2022 were $0.4 million, $0.7 million and $0.9 million, respectively. The future amounts of amortization related to intangibles are presented below for the years ending January 31: 2025 $ 392 2026 375 2027 300 2028 300 2029 300 Thereafter 550 Total $ 2,217 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Jan. 31, 2024 | |
PROPERTY, PLANT AND EQUIPMENT, NET. | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following at January 31, 2024 and 2023: 2024 2023 Land and improvements $ 863 $ 863 Building and improvements 7,910 7,558 Furniture, machinery and equipment 17,938 17,219 Trucks, trailers and other vehicles 5,902 6,042 32,613 31,682 Less - accumulated depreciation 21,592 21,252 Property, plant and equipment, net $ 11,021 $ 10,430 The following table presents property, plant and equipment, net, disaggregated by geographic area as of January 31, 2024 and 2023: 2024 2023 United States $ 8,898 $ 8,522 Republic of Ireland 1,836 1,614 United Kingdom 287 294 Property, plant and equipment, net $ 11,021 $ 10,430 Depreciation expense for property, plant and equipment was $2.0 million, $3.0 million and $3.4 million for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively, which amounts were charged substantially to selling, general and administrative expenses in each year. The costs of maintenance and repairs were $1.6 million, $2.4 million and $2.1 million for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively, which amounts were charged substantially to selling, general and administrative expenses each year as well. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Jan. 31, 2024 | |
FINANCING ARRANGEMENTS | |
FINANCING ARRANGEMENTS | NOTE 8 – 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, primarily, to replace the interest pricing with the Secured Overnight Financing Rate (“SOFR”) plus 1.6% and to add 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. The Company intends to renew the Credit Agreement prior to its current expiration date. At January 31, 2024 and 2023, the Company did not have any borrowings outstanding under the Credit Agreement. However, the Bank has issued a letter of credit in the total outstanding amount of $9.3 million at January 31, 2024, 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 January 31, 2024 and 2023, the Company was in compliance with the covenants of the Credit Agreement, as amended. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Jan. 31, 2024 | |
COMMITMENTS | |
COMMITMENTS | NOTE 9 – 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. At January 31, 2024 and 2023, right-of-use assets were $5.3 million and $4.8 million, respectively. Operating lease expense amounts are recorded on a straight-line basis over the expected lease terms. Operating lease expense amounts for Fiscal 2024, Fiscal 2023 and Fiscal 2022 were $1.9 million, $2.6 million and $3.4 million, respectively. The following is a schedule of future minimum lease payments for the operating leases that were recognized in the consolidated balance sheet as of January 31, 2024 for the years ending January 31: 2025 $ 2,823 2026 1,461 2027 275 2028 221 2029 213 Thereafter 625 Total lease payments 5,618 Less imputed interest 300 Present value of lease payments 5,318 Less current portion (included in accrued expenses) 2,726 Noncurrent portion (included in noncurrent liabilities) $ 2,592 The following table presents summary information for the Company’s lease terms and discount rates for its operating leases at January 31, 2024 and 2023: 2024 2023 Weighted average remaining lease term 41 months 58 months Weighted average discount rate 5.2 % 3.7 % The Company also uses equipment and occupies other facilities under short-term rental agreements. Rent expense amounts incurred under short-term rentals were $9.5 million, $11.3 million and $9.6 million for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. Performance Bonds and Guarantees In the normal course of business and for certain major projects, the Company may be required to obtain surety or performance bonding, to cause the issuance of letters of credit, or to provide parent company guarantees (or some combination thereof) in order to provide performance assurances to clients on behalf of its contractor subsidiaries. As these subsidiaries are wholly-owned, any actual liability is ordinarily reflected in the financial statement account balances determined pursuant to the Company’s accounting for contracts with customers. When sufficient information about claims on guaranteed 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 January 31, 2024 are not estimable. As of January 31, 2024, the estimated amount of the Company’s unsatisfied bonded performance obligations, covering all of its subsidiaries, was approximately $0.5 billion. As of January 31, 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 also provided a financial guarantee, subject to certain terms and conditions, up to $3.6 million in support of business development efforts. Any estimated loss related to this guarantee was recorded during 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 Employee Benefit Plans The Company maintains 401(k) savings plans pursuant to which the Company makes discretionary contributions for the eligible and participating employees. The Company’s expense amounts related to these defined contribution plans were approximately $2.9 million, $2.7 million and $2.3 million for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. The Company also maintains nonqualified plans whereunder the payments of certain amounts of incentive compensation earned by key employees are deferred for periods of four |
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES | 12 Months Ended |
Jan. 31, 2024 | |
LEGAL CONTINGENCIES | |
LEGAL CONTINGENCIES | NOTE 10 – 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 consolidated financial statements as of January 31, 2024. In January 2019, GPS filed a lawsuit against Exelon West Medway II, LLC and Exelon Generation Company, LLC (together referred to as “Exelon”) in the U.S. District Court for the Southern District of New York for Exelon’s breach of contract and failure to remedy various conditions which negatively impacted the schedule and the costs associated with the construction by GPS of a gas-fired power plant for Exelon in Massachusetts. In September 2021, GPS reached a final settlement of all outstanding claims between the parties resulting in Exelon making a payment to GPS in the amount of $27.5 million, which was in excess of the previously reported total amount of receivables and contract assets. The excess amount was included in revenues for Fiscal 2022. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 31, 2024 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 11 – 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. On June 20, 2023, the Company’s stockholders approved an allocation of an additional 500,000 shares for issuance under the 2020 Plan. 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 a maximum term of ten years. Typically, stock options are awarded with one three As of January 31, 2024, there were 2,256,062 shares of common stock reserved for issuance under the Stock Plans; this number includes 543,087 shares of common stock available for future awards under the 2020 Plan. Expense amounts related to stock awards were $4.5 million, $4.0 million and $3.5 million for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. At January 31, 2024, there was $6.0 million in unrecognized compensation cost related to outstanding stock awards that the Company expects to expense over the next three years. Stock Options A summary of stock option activity under the Stock Plans for Fiscal 2024 is presented below (shares in thousands): Weighted- Average Weighted- Weighted- Remaining Average Average Exercise Contractual Grant-Date Shares Price Term (years) Fair Value Outstanding, January 31, 2023 1,440 $ 43.84 5.46 $ 10.11 Granted 21 $ 41.64 Exercised (94) $ 27.42 Forfeited (2) $ 33.81 Outstanding, January 31, 2024 1,365 $ 44.95 4.67 $ 10.43 Exercisable, January 31, 2024 1,273 $ 45.33 4.40 $ 10.61 Vested or expected to vest, January 31, 2024 1,365 $ 44.95 4.67 $ 10.43 A summary of the changes in the number of non-vested options to purchase shares of common stock for Fiscal 2024 is presented below (shares in thousands): Weighted- Average Grant-Date Shares Fair Value Non-vested, January 31, 2023 194 $ 7.27 Granted 21 $ 8.65 Vested (122) $ 7.31 Forfeited (1) $ 5.68 Non-vested, January 31, 2024 92 $ 7.85 During Fiscal 2023 and 2022, respectively, 67,000 and 73,000 stock options were granted with weighted-average grant-date fair values per share of $8.54 and $7.19. The total intrinsic value amounts related to the stock options exercised during Fiscal 2024 and Fiscal 2022 were $1.5 million and $0.6 million, respectively; the corresponding amount during Fiscal 2023 was insignificant. At January 31, 2024, the aggregate market value amounts of the shares of common stock subject to outstanding stock options and exercisable stock options where the options were “in-the-money” exceeded the aggregate exercise prices of such options by $5.6 million and $5.1 million, respectively. Restricted Stock Units The Company awards restricted stock units to senior executives, certain other key employees and members of the Company’s board of directors. 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 Fiscal 2024, the Company awarded PRSUs covering a target of 6,000 shares of common stock, ERSUs covering a target of 15,000 shares of common stock, RRSUs covering a target of 7,500 shares of common stock, TRSUs covering 77,800 shares of common stock, and 1,492 shares based on the amount of cash dividends deemed paid on shares earned pursuant to the awards. The changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units for Fiscal 2024 are presented below (shares in thousands): Weighted- Average Grant-Date Shares Fair Value Outstanding, January 31, 2023 310 $ 30.80 Awarded 129 $ 30.46 Issued (42) $ 43.80 Forfeited (49) $ 15.57 Outstanding, January 31, 2024 348 $ 30.21 During Fiscal 2023 and 2022, restricted stock units covering a maximum of 146,871 and 145,721 shares were awarded with a weighted-average grant-date fair values per share of $29.26 and $39.52, respectively. The total fair values of restricted stock units that vested and were issued during Fiscal 2024, Fiscal 2023, and Fiscal 2022 were $1.8 million, $0.9 million and $0.8 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 12 – INCOME TAXES Income Tax Expense Reconciliations The components of the amounts of income tax expense for Fiscal 2024, Fiscal 2023 and Fiscal 2022 are presented below: 2024 2023 2022 Current: Federal $ 10,870 $ 12,776 $ 10,921 State 1,835 1,012 643 Foreign 2,537 740 — 15,242 14,528 11,564 Deferred: Federal (923) (803) (341) State 301 23 133 Foreign 1,955 (2,452) — 1,333 (3,232) (208) Income tax expense $ 16,575 $ 11,296 $ 11,356 The amounts of interest and penalties related to income taxes that were incurred by the Company during Fiscal 2024, Fiscal 2023 and Fiscal 2022 were not material. The Company’s income tax expense amounts differed from corresponding amounts computed by applying the federal corporate income tax rate of 21% to the consolidated amount of income before income taxes for Fiscal 2024, Fiscal 2023 and Fiscal 2022 as presented below: 2024 2023 2022 Computed expected income tax expense $ 10,276 $ 9,660 $ 9,883 Difference resulting from: Unrecognized tax loss benefit 3,858 — — Foreign tax rate differential (2,294) (441) (352) State income taxes, net of federal tax effect 1,688 860 614 Excess executive compensation 1,040 1,397 1,296 Adjustment to valuation for foreign NOLs 2,083 (2,574) — Net benefit related to Solar Tax Credit investments (646) — — Meals and entertainment expense 626 83 58 Research and development tax credits adjustment — 6,181 — Recognition of research and development tax credit benefits — (3,430) — Other permanent differences and adjustments, net (56) (440) (143) Income tax expense $ 16,575 $ 11,296 $ 11,356 Net Operating Loss (“NOL”) Carryback In March 2020, the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The tax changes of the CARES Act included a temporary suspension of the limitations on the future utilization of certain NOLs and re-established a carryback period for certain losses to five years. The NOLs eligible for carryback under the CARES Act include the Company’s domestic NOL for Fiscal 2020, which was approximately $39.5 million. The Company made the appropriate filing with the Internal Revenue Service (“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”). At the instruction of the IRS, amended income tax returns for Fiscal 2016 and Fiscal 2015 were filed during the second quarter of Fiscal 2024; the IRS has not completed the examination and approval of the Company’s amended tax returns and refund request. Research and Development Tax Credit Adjustments During Fiscal 2019, the Company completed a detailed review of the activities of its engineering staff on major EPC services projects in order to identify and quantify the amounts of research and development tax credits that may have been available to reduce prior year income taxes. This study focused on project costs incurred during the three-year period ended January 31, 2018. Based on the results of the study, management identified and estimated significant amounts of income tax benefits that were not previously recognized in the Company’s operating results for any prior year reporting period. The net amount of federal and state research and development tax credit benefit recognized in prior fiscal years $16.2 million, against which the Company recorded a corresponding liability for uncertain income tax return positions in the amount of $5.0 million. During Fiscal 2021, the IRS concluded examinations of the Company’s consolidated federal income tax returns for the years ending January 31, 2018, 2017 and 2016, with its focus on the research and development tax credits included therein. The final revenue agents reports disagreed with the Company’s treatment of a substantial amount of the costs that supported the Company’s claims. The Company submitted a formal protest of the findings of the IRS examiner and requested an appeal hearing. At the conclusion of the hearing, the Company accepted a settlement offer from the IRS in the amount of approximately $7.9 million, before interest. As a result, during Fiscal 2023, the Company made an unfavorable adjustment to income tax expense in the approximate amount of $6.2 million; the accounting for this adjustment reduced the contra-asset balance by approximately $4.4 million. The Company has also formally protested the conclusions reached by two states, where the Company filed tax returns reflecting the benefits of certain research and development credits, that the credits are not allowable. Research and Development Credits During Fiscal 2022, in a manner similar to the process described above, the Company completed a detailed review of the activities of its engineering staff on major EPC services projects in order to identify and quantify the amounts of research and development tax credits that may have been available to reduce 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, and recorded during Fiscal 2023. In May 2023, the Company received notification that its amended federal income tax returns for Fiscal 2021 and Fiscal 2022 were selected for examination. At January 31, 2024, the examination was in its early stages. Unrecognized Income Tax Benefits Changes in the balances of contra-asset established for uncertain income tax positions for Fiscal 2024, Fiscal 2023 and Fiscal 2022 are presented below: 2024 2023 2022 Unrecognized income tax benefits, beginning of fiscal year $ 2,882 $ 4,937 $ 4,895 Increases related to prior period income tax positions 78 — 42 Increases related to current period income tax positions — 2,359 — Expirations of statutes of limitations (407) — — Settlements — (4,414) — Unrecognized income tax benefits, end of fiscal year $ 2,553 $ 2,882 $ 4,937 Gross unrecognized income tax benefits totaled $2.6 million for the fiscal year ended January 31, 2024, all of which would affect the Company’s effective income tax rate if recognized. The Company does not expect its unrecognized income tax benefits to change significantly within the next 12 months. Recognition of Foreign NOL Income Tax Benefits The Company has deferred tax assets in a total amount of approximately $13.8 million related to prior year NOLs of its foreign subsidiaries, primarily the operation of APC located in the U.K. (“APC UK”). The Company has established a valuation allowance against a substantial portion of these NOLs. For Fiscal 2023, APC UK continued a turnaround of its operating results such that the Company believed that it had a stable earnings history upon which APC UK could reliably forecast future profitable operations. Based on the forecast that rested on the belief that meaningful investments would be made in the power infrastructure of the U.K. for the foreseeable future, the Company believed that it would be more likely than not that a certain portion of the deferred tax assets would be realized. Accordingly, the Company reversed a portion of the corresponding allowance during Fiscal 2023 in the amount of $2.6 million. However, the unexpected difficulties with one construction project and the loss that was incurred by APC UK related to it caused management to lower its estimates of the amount of future net earnings of APC UK available to offset its net operating loss carryforwards. As a result, the Company increased the allowance by $2.1 million in Fiscal 2024. Income Tax Refunds As of January 31, 2024 and 2023, the balances of other current assets in the consolidated balance sheet included income tax refunds receivable and prepaid income taxes in the total amounts of approximately $18.3 million and $15.3 million, respectively. The income tax refunds included the amount expected to be received from the IRS upon its review and approval of the Company’s NOL carryback refund request and the completion of its examination of the amended tax returns for Fiscal 2022 and Fiscal 2021 as described above. Deferred Taxes The tax effects of temporary differences that are reflected in deferred taxes as of January 31, 2024 and 2023 included the following: 2024 2023 Assets: Net operating loss carryforwards $ 19,772 $ 13,964 Stock awards 2,726 2,726 Accrued expenses 1,955 1,480 Lease liabilities 1,383 1,189 Research and development costs deferral 1,622 1,015 Research and development credit carryforwards — 269 Other 148 337 27,606 20,980 Liabilities: Intangibles (3,819) (3,674) Property and equipment (893) (1,033) Construction contracts (839) (1,229) Right-of-use assets (1,378) (1,184) Other (619) (431) (7,548) (7,551) Valuation allowances (17,799) (9,740) Deferred tax assets, net $ 2,259 $ 3,689 Taxpayers are now required to capitalize and amortize research and experimental expenses over five or 15 years for tax years beginning in 2022 or later. Accordingly, for Fiscal 2024 and 2023, the Company did estimate an amount of such expenses which resulted in the deferred tax asset balances presented in the table above. The Company acquired unused NOLs for federal income tax reporting purposes from TRC that are subject to limitations imposed by Section 382 of the Internal Revenue Code of 1986, as amended. These losses are subject to annual limits that reduce the aggregate amount of NOLs available to the Company in the future to approximately $5.5 million. These NOLs are available to offset future taxable income and, if not utilized, begin expiring during 2032. The NOL carryforwards related to APC UK do not expire. The Company also has certain NOLs that will be available to the Company for state income tax reporting purposes that are substantially similar to the federal NOLs. The Company’s ability to realize deferred tax assets, including those related to the NOLs discussed above, depends primarily upon the generation of sufficient future taxable income to allow for the Company’s use of temporarily deferred deductions and tax planning strategies. If such estimates and assumptions change in the future, the Company may be required to record additional valuation allowances against some or all of its deferred tax assets resulting in additional income tax expense in the future. At this time, based substantially on the strong earnings performance of the Company’s power industry services reporting segment, management believes that it is more likely than not that the Company will realize the benefit of significantly all of its deferred tax assets, net of valuation allowances. 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 the application of significant judgment. The Company is no longer subject to income tax examinations by authorities for its fiscal years ended on or before January 31, 2020, except for several notable exceptions including Ireland, the U.K. and several states where the open periods are one year longer. Solar Energy Projects The Company holds equity investments in Solar Tax Credit (“STC”) investments. Primarily, the STC investments are structured as limited liability companies that invest in solar energy projects that are eligible to receive energy tax credits. During Fiscal 2024 and Fiscal 2022, the Company made investments of approximately $5.1 million and $5.0 million in STC investments. As of January 31, 2024, the Company had $3.3 million remaining of cash investment commitments related to its STC investments, which are expected to be paid in Fiscal 2025. At January 31, 2024 and 2023, the investment account balances were $2.1 million and $1.2 million, respectively, which are included in other assets in the consolidated balance sheets. These investments are expected to provide positive overall returns over their expected lives. The Company has elected to use the proportional amortization method (“PAM”) for STC investments that qualify. Under PAM, an investment is amortized in proportion to the allocation of tax benefits received in each period, and the investment amortization and tax benefit amounts are presented net within income tax expense in the Company’s consolidated statements of earnings. Only the Company’s STC investment made in Fiscal 2024 qualifies for PAM. During Fiscal 2024, the Company recognized $8.1 million of income tax credits and other income tax benefits and recorded $7.4 million of investment amortization related to this STC investment. The amount of non-income tax-related activity and other returns related to this investment was not material for Fiscal 2024. Not all of the Company’s STC investments qualify for PAM. For STC investments that do not qualify for PAM, the Company accounts for the investment using the equity method of accounting and includes income and losses related to the investment in other income in the Company’s consolidated statements of earnings. Tax credits, when recognized, are recorded as a reduction of the corresponding investment balance with an offsetting reduction to accrued taxes payable in accordance with the deferral method. For these STC investments that do not qualify for PAM, income tax credits in the approximate amount of $4.5 million were recognized during Fiscal 2022; no income tax credits were recognized in Fiscal 2024 and Fiscal 2023. For Fiscal 2024, Fiscal 2023 and Fiscal 2022, the Company recorded its share of losses of less than $0.1 million, income of $1.1 million and losses of $0.4 million, respectively, from these STC investments. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Jan. 31, 2024 | |
NET INCOME PER SHARE | |
NET INCOME PER SHARE | NOTE 13 – NET INCOME PER SHARE Basic and diluted net income per share attributable to the stockholders of Argan, Inc. for Fiscal 2024, Fiscal 2023 and Fiscal 2022 are computed as follows (shares in thousands except in note (1) below the chart): 2024 2023 2022 Net income $ 32,358 $ 33,098 $ 38,244 Weighted average number of shares outstanding – basic 13,365 14,083 15,715 Effect of stock awards (1) 183 93 198 Weighted average number of shares outstanding – diluted 13,548 14,176 15,913 Net income per share attributable to the stockholders of Argan, Inc. Basic $ 2.42 $ 2.35 $ 2.43 Diluted $ 2.39 $ 2.33 $ 2.40 (1) For Fiscal 2024, 2023 and 2022, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options and restricted stock units covering an aggregate of 685,334 , 978,834 and 570,167 shares of common stock, respectively. The options had exercise prices per share in excess of the average market price per share for the applicable year. |
CASH DIVIDENDS AND COMMON STOCK
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | 12 Months Ended |
Jan. 31, 2024 | |
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | |
CASH DIVIDENDS AND COMMON STOCK REPURCHASES | NOTE 14 – CASH DIVIDENDS AND COMMON STOCK REPURCHASES On September 19, 2023, Argan’s board of directors increased the Company’s quarterly cash dividend by 20% from $0.25 to $0.30 per share of common stock and, accordingly, the Company made regular quarterly cash dividend payments of $0.30 per share of common stock in October 2023 and January 2024. The Company also made regular quarterly cash dividend payments of $0.25 per share of common stock in April 2023 and July 2023. During Fiscal 2023 and Fiscal 2022, the Company made regular quarterly cash dividend payments of $0.25 per share of common stock. Pursuant to its established program and authorizations provided by Argan’s board of directors, the Company began to repurchase shares of its common stock in November 2021. During Fiscal 2024, the Company repurchased 230,160 shares of common stock, all on the open market, for an aggregate price of approximately $9.2 for an aggregate price of approximately $3.2 million, or $43.50 per share. During Fiscal 2024, the Company accepted 31,066 shares of common stock at the average price per share of $47.19 as consideration for the exercise price and/or tax withholding in connection with stock option exercises and other share-based award settlements. During Fiscal 2023, the Company repurchased 1,855,714 shares of common stock, most on the open market, for an aggregate price of approximately $68.2 million, or $36.77 per share. During Fiscal 2022, the Company repurchased 527,752 shares of common stock, all on the open market, for an aggregate price of approximately $20.4 million, or $38.60 per share. For Fiscal 2024, the Company used 135,156 shares of treasury stock to settle stock option exercises and other share-based awards. For Fiscal 2023 and 2022, no shares of treasury stock were used to settle such transactions. In August 2022, the Inflation Reduction Act was signed into law, which introduced a 1% excise tax on shares repurchased after December 31, 2022. For Fiscal 2024 and Fiscal 2023, the excise tax was not material. |
VARIABLE INTEREST ENTITY
VARIABLE INTEREST ENTITY | 12 Months Ended |
Jan. 31, 2024 | |
VARIABLE INTEREST ENTITY | |
VARIABLE INTEREST ENTITY | NOTE 15 – 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. Consideration for the Company’s engineering and financial support provided to the project included the right to build the power plant pursuant to a turnkey EPC services contract that was negotiated and announced. In Fiscal 2023, the Company was deemed to no longer be the primary beneficiary of the VIE, and accordingly it was deconsolidated. Prior to deconsolidation, the account balances of the VIE had been included in the Company’s consolidated financial statements, including capitalized development costs that were included in property, plant and equipment. During Fiscal 2022, the project owner was unable to obtain the necessary equity financing for the project, and the Company recorded an impairment loss related to the capitalized development costs of this project in the amount of $7.9 million, of which $2.5 million was attributed to the non-controlling interest. |
CUSTOMER CONCENTRATIONS
CUSTOMER CONCENTRATIONS | 12 Months Ended |
Jan. 31, 2024 | |
CUSTOMER CONCENTRATIONS | |
CUSTOMER CONCENTRATIONS | NOTE 16 – CUSTOMER CONCENTRATIONS The majority of the Company’s consolidated revenues relate to performance by the power industry services segment which provided 73%, 76% and 78% of consolidated revenues for Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. For Fiscal 2024, Fiscal 2023 and Fiscal 2022, the Company’s industrial construction services segment represented 25%, 20% and 19% of consolidated revenues, respectively. For Fiscal 2024, the Company’s most significant customer relationships included three power industry services customers, which accounted for 19%, 16% and 15% of consolidated revenues. For Fiscal 2023, the Company’s most significant customer relationships included two power industry services customers, which accounted for 38% and 12% of consolidated revenues. For Fiscal 2022, the Company’s most significant customer relationship included one power industry services customer which accounted for 57% of consolidated revenues. The accounts receivable balances from three major customers represented 16%, 14% and 14% of the corresponding consolidated balance as of January 31, 2024, and 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 balance attributable to two major customers represented 39% and 32% of the corresponding consolidated balance as of January 31, 2024. The contract asset balance related to one major customer represented 70% of the corresponding consolidated balance as of January 31, 2023. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jan. 31, 2024 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 17 – SEGMENT REPORTING Segments represent components of an enterprise for which discrete financial information is available that is evaluated regularly by the Company’s chief executive officer, who is the chief operating decision maker, in determining how to allocate resources and in assessing performance. The Company’s reportable segments recognize revenues and incur expenses, are organized in separate business units with different management teams, customers, talents and services, and may include more than one operating segment. Intersegment revenues and the related cost of revenues, are netted against the corresponding amounts of the segment receiving the intersegment services. For Fiscal 2024, intersegment revenues were not material. For Fiscal 2023 and 2022, intersegment revenues totaled approximately $0.6 million and $2.8 million, respectively. Intersegment revenues for the aforementioned periods primarily related to services provided by the industrial construction services segment to the power industry services segment and were based on prices negotiated by the parties. Summarized below are certain operating results and financial position data of the Company’s reportable business segments for Fiscal 2024, Fiscal 2023 and Fiscal 2022. The “Other” column in each summary includes the Company’s corporate expenses. Year Ended Power Industrial Telecom January 31, 2024 Services Services Services Other Totals Revenues $ 416,281 $ 142,801 $ 14,251 $ — $ 573,333 Cost of revenues 357,705 124,321 10,473 — 492,499 Gross profit 58,576 18,480 3,778 — 80,834 Selling, general and administrative expenses 24,274 6,440 2,469 11,193 44,376 Income (loss) from operations 34,302 12,040 1,309 (11,193) 36,458 Other income (loss), net 13,871 — (3) (1,393) 12,475 Income (loss) before income taxes $ 48,173 $ 12,040 $ 1,306 $ (12,586) 48,933 Income tax expense 16,575 Net income $ 32,358 Amortization of intangibles $ — $ 392 $ — $ — $ 392 Depreciation 527 1,073 409 4 2,013 Property, plant and equipment additions 1,266 1,014 473 3 2,756 Current assets $ 383,508 $ 59,123 $ 3,872 $ 100,676 $ 547,179 Current liabilities 256,975 41,869 1,591 1,825 302,260 Goodwill 18,476 9,467 90 — 28,033 Total assets 411,571 76,012 6,703 103,943 598,229 Year Ended Power Industrial Telecom January 31, 2023 Services Services Services Other Totals Revenues $ 346,033 $ 92,774 $ 16,233 $ — $ 455,040 Cost of revenues 277,402 78,034 13,243 — 368,679 Gross profit 68,631 14,740 2,990 — 86,361 Selling, general and administrative expenses 22,635 7,900 3,353 10,804 44,692 Income (loss) from operations 45,996 6,840 (363) (10,804) 41,669 Other income, net 3,829 — 3 499 4,331 Income (loss) before income taxes $ 49,825 $ 6,840 $ (360) $ (10,305) 46,000 Income tax expense 11,296 Net income $ 34,704 Amortization of intangibles $ — $ 618 $ 114 $ — $ 732 Depreciation 567 1,978 434 4 2,983 Property, plant and equipment additions 1,450 1,717 189 16 3,372 Current assets $ 307,742 $ 42,488 $ 3,900 $ 84,572 $ 438,702 Current liabilities 170,164 29,550 1,317 1,472 202,503 Goodwill 18,476 9,467 90 — 28,033 Total assets 334,593 60,038 7,153 87,703 489,487 Year Ended Power Industrial Telecom January 31, 2022 Services Services Services Other Totals Revenues $ 398,089 $ 97,890 $ 13,391 $ — $ 509,370 Cost of revenues 317,130 81,391 11,117 — 409,638 Gross profit 80,959 16,499 2,274 — 99,732 Selling, general and administrative expenses 28,323 8,167 2,146 8,685 47,321 Impairment losses 7,901 — — — 7,901 Income (loss) from operations 44,735 8,332 128 (8,685) 44,510 Other income, net 2,545 — — 7 2,552 Income (loss) before income taxes $ 47,280 $ 8,332 $ 128 $ (8,678) 47,062 Income tax expense 11,356 Net income $ 35,706 Amortization of intangibles $ 208 $ 662 $ — $ — $ 870 Depreciation 605 2,325 433 4 3,367 Property, plant and equipment additions 713 107 597 5 1,422 Current assets $ 322,448 $ 25,681 $ 2,957 $ 156,198 $ 507,284 Current liabilities 209,829 9,534 1,916 1,748 223,027 Goodwill 18,476 9,467 90 — 28,033 Total assets 345,956 44,002 6,741 156,886 553,585 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Jan. 31, 2024 | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | NOTE 18 – SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Balance Sheet Other current assets consisted of the following at January 31, 2024 and 2023: 2024 2023 Income tax refunds receivable and prepaid income taxes $ 18,267 $ 15,327 Raw materials inventory 9,985 11,903 Prepaid expenses 6,035 4,541 Other 4,972 6,563 Total other current assets $ 39,259 $ 38,334 Inventories consist of raw materials held for use in the ordinary course of business and is valued at the lower of cost or net realizable value. Accrued expenses consisted of the following at January 31, 2024 and 2023: 2024 2023 Accrued project costs $ 49,135 $ 17,448 Accrued compensation 21,206 18,286 Lease liabilities 2,726 1,567 Other 8,654 12,566 Total accrued expenses $ 81,721 $ 49,867 Other Loss 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. 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. The total amount of the fraud loss and the professional fees, net with funds recovered, of approximately $2.7 million is reflected in other income as a loss in the consolidated statement of earnings for Fiscal 2024. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jan. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS Subsequent to January 31, 2024, the Company continued to repurchase shares of its common stock pursuant to the Share Repurchase Plan. As of April 11, 2024, the date of the last subsequent transaction, the Company had repurchased 5,600 shares since year-end, all on the open market, for an aggregate price of approximately $0.3 million, or $44.87 per share, exclusive of share repurchase excise tax. On April 10, 2024, the Company’s Board of Directors declared a regular quarterly cash dividend in the amount of $0.30 per share of common stock, payable on April 30, 2024 to stockholders of record at the close of business on April 22, 2024. |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Jan. 31, 2024 | |
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. The customers include 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 construction services reportable segment provides field 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 Company’s fiscal year ends on January 31 of each year. The consolidated financial statements include the accounts of Argan, its wholly owned subsidiaries, a variable interest entity (“VIE”) prior to its deconsolidation in the fourth quarter of the year ended January 31, 2023 (see Note 15). All significant intercompany balances and transactions have been eliminated in consolidation. In Note 17, the Company has provided certain financial information relating to the operating results and assets of its reportable segments based on the manner in which management disaggregates the Company’s financial reporting for purposes of making internal operating decisions. |
Use of Estimates | Use of Estimates |
Revenue Recognition | Revenue Recognition 1. Identify the contract, 2. Identify the performance obligations of the contract, 3. Determine the transaction price of the contract, 4. Allocate the transaction price to the performance obligations, and 5. Recognize revenue. The Company focuses on the transfer of the contractor’s control of the goods and/or services to the customer. 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. For its time-and-materials contracts, the Company is generally able to elect the right-to-invoice practical expedient. This practical expedient permits the Company to recognize revenue equal to the value of the performance completed to date, provided that the Company has a right to invoice 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. Variable Consideration Amounts for unapproved change orders 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 also 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. 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. Contract Assets and Liabilities 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 our 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. 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. 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. Remaining Unsatisfied Performance Obligations Substantially all of the Company’s customer contracts include the right for customers to terminate contracts for convenience. The value of future work that the Company is contractually obligated to perform pursuant to active customer contracts should not be included in remaining unsatisfied performance obligations (“RUPO”) when the corresponding contracts include termination for convenience clauses without substantial penalties accruing to the customers upon such terminations. 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. These types of arrangements do not qualify as RUPO. 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 amounts 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 the consolidated financial statements. |
Cash Equivalents | Cash Equivalents |
Available-For-Sale Securities | Available-For-Sale Securities The Company evaluates whether a decline in the fair value of AFS securities below amortized cost basis is credit-related or due to other factors. If the Company intends to sell the AFS security or it is more likely than not that the Company would be required to sell the AFS security before recovery, impairment is recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. If a portion of the unrealized loss is credit-related, the impairment is recorded as an allowance on the balance sheet with a corresponding adjustment to earnings. Credit recovery is recorded as an adjustment to the allowance and earnings in the period in which credit conditions improve. |
Property, Plant and Equipment | Property, Plant and Equipment five |
Goodwill | Goodwill The Company identifies a potential impairment loss by comparing the fair value of a reporting unit with the reporting unit’s carrying amount, including goodwill. In the quantitative approach, the fair value of the reporting unit is estimated using various market-based and income-based valuation techniques as applicable in the particular circumstances. If the fair value of the reporting unit exceeds the related carrying amount, goodwill of the reporting unit is not deemed to be impaired. If the carrying amount of the reporting unit exceeds its fair value, a goodwill impairment loss is recorded in an amount equal to the excess of the unit’s carrying value over its fair value, not to exceed the amount of goodwill allocated to the reporting unit. An alternative method allows the Company to first assess qualitative factors to decide whether it is necessary to perform the quantitative goodwill impairment test. It is not required to calculate the fair value of a reporting unit unless management concludes, based on a qualitative assessment, that it is more likely than not that its fair value may be less than the corresponding carrying amount. The professional guidance for this evaluation identifies the types of factors which the Company should consider in conducting the qualitative assessment including macroeconomic, industry, market and entity-specific factors. |
Long-Lived Assets | Long-Lived Assets |
Leases | Leases 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. Right-of-use assets and lease liabilities related to short-term leases are excluded from the consolidated balance sheets. 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. |
Income Taxes | Income Taxes The Company accounts for uncertain tax positions in accordance with current accounting guidance which prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on the income tax returns of the Company. Management evaluates and the Company records the effect of any uncertain tax position based on the amount that management deems is more likely than not (i.e., greater than a 50% probability) to be sustained upon examination and ultimate settlement with the tax authorities in the applicable tax jurisdiction. Interest incurred related to overdue income taxes is included in income tax expense; franchise taxes and income tax penalties are included in selling, general and administrative expenses. |
Share-Based Payments | Share-Based Payments 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 total stock return performance-based restricted stock units (“PRSUs”) are 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. The fair value amounts of PRSUs are recorded to stock compensation expense using the straight-line method over the requisite service period, which is generally three years. For earnings per share performance-based stock units (“ERSUs”) and renewable energy performance-based restricted stock units (“RRSUs”), 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 these stock-based awards with performance conditions, compensation expense is recognized using the graded attribution method over the requisite service period when it is probable that the performance conditions will be satisfied. For time-based restricted stock units (“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. TRSUs awarded by the Company are generally subject to a service-based vesting condition, which is generally three years. For these stock-based awards subject to service-based vesting conditions, the fair value amounts are recorded in stock compensation expense over the three-year contractual lapsing periods for the corresponding restrictions. For each exercise of a stock option or each vesting of a restricted stock unit, the Company determines whether the difference between the deduction for income tax reporting purposes created at that time and the related compensation expense previously recorded for financial reporting purposes results in either an excess income tax benefit or an income tax deficiency which is recognized, accordingly, as income tax benefit or expense in the corresponding consolidated statement of earnings. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments , 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. The carrying values presented in the consolidated balance sheets for the Company’s cash, certificates of deposit (“CD’s”), accounts receivable and contract assets, and the Company’s current liabilities are reasonable estimates of their fair values due to the short-term nature of these instruments. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency transactions are remeasured at current exchange rates, with adjustments recorded as foreign currency gains or losses. Net foreign currency gains and losses are included in other income, net, in the consolidated statements of earnings. For the years ended January 31, 2024 (“Fiscal 2024”), 2023 (“Fiscal 2023”) and 2022 (“Fiscal 2022”), such amounts were not material. |
Treasury Stock | Treasury Stock |
Net Income Per Share | Net Income Per Share |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its consolidated financial statements. |
REVENUES FROM CONTRACTS WITH _2
REVENUES FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
Schedule of consolidated revenues disaggregated by geographical area | 2024 2023 2022 United States $ 334,244 $ 328,850 $ 456,211 Republic of Ireland 198,701 68,242 35,044 United Kingdom 40,388 57,948 17,521 Other — — 594 Consolidated Revenues $ 573,333 $ 455,040 $ 509,370 |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | |
Investments | 2024 2023 Short-term investments $ 109,489 $ 151,511 Available-for-sale securities 105,884 — Total investments $ 215,373 $ 151,511 |
Schedule of available-for-sale securities | January 31, 2024 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 $ 50,634 $ — $ 305 $ 102 $ 50,837 Due in two to three years 45,583 — 263 128 45,718 U.S. corporate debt security: Due in two to three years 9,406 — — 77 9,329 Totals $ 105,623 $ — $ 568 $ 307 $ 105,884 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial instruments recorded at fair value on a recurring basis | January 31, 2024 January 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Inputs Inputs Inputs Inputs Inputs Inputs Cash equivalents: Money market fund $ 126,646 $ — $ — $ 68,647 $ — $ — Available-for-sale securities: U.S. Treasury notes — 96,555 — — — — U.S. corporate debt security — 9,329 — — — — Totals $ 126,646 $ 105,884 $ — $ 68,647 $ — $ — |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
INTANGIBLE ASSETS | |
Schedule of changes in the balances of goodwill | Power Industrial Telecom Services Services Services Totals Goodwill as of February 1, 2022 $ 18,476 $ 9,467 $ 90 $ 28,033 Impairment losses — — — — Goodwill as of January 31, 2023 18,476 9,467 90 28,033 Impairment losses — — — — Goodwill as of January 31, 2024 $ 18,476 $ 9,467 $ 90 $ 28,033 Balances, January 31, 2024: Goodwill $ 22,525 $ 14,365 $ 90 $ 36,980 Accumulated impairment losses (4,049) (4,898) — (8,947) Goodwill as of January 31, 2024 $ 18,476 $ 9,467 $ 90 $ 28,033 |
Schedule of company's purchased intangible assets, other than goodwill | January 31, 2024 January 31, 2023 Estimated Gross Accumulated Net Gross Accumulated Net Useful Life Amounts Amortization Amounts Amounts Amortization Amounts Trade name 15 years $ 4,499 $ 2,450 $ 2,049 $ 4,499 $ 2,150 $ 2,349 Customer relationships 10 years 916 748 168 916 656 260 Totals $ 5,415 $ 3,198 $ 2,217 $ 5,415 $ 2,806 $ 2,609 |
Schedule of expected amortization expense | 2025 $ 392 2026 375 2027 300 2028 300 2029 300 Thereafter 550 Total $ 2,217 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
PROPERTY, PLANT AND EQUIPMENT, NET. | |
Summary of property, plant and equipment | 2024 2023 Land and improvements $ 863 $ 863 Building and improvements 7,910 7,558 Furniture, machinery and equipment 17,938 17,219 Trucks, trailers and other vehicles 5,902 6,042 32,613 31,682 Less - accumulated depreciation 21,592 21,252 Property, plant and equipment, net $ 11,021 $ 10,430 |
Schedule of property, plant and equipment, net, disaggregated by geographic area | 2024 2023 United States $ 8,898 $ 8,522 Republic of Ireland 1,836 1,614 United Kingdom 287 294 Property, plant and equipment, net $ 11,021 $ 10,430 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
COMMITMENTS | |
Schedule of future minimum lease payments for the operating leases | The following is a schedule of future minimum lease payments for the operating leases that were recognized in the consolidated balance sheet as of January 31, 2024 for the years ending January 31: 2025 $ 2,823 2026 1,461 2027 275 2028 221 2029 213 Thereafter 625 Total lease payments 5,618 Less imputed interest 300 Present value of lease payments 5,318 Less current portion (included in accrued expenses) 2,726 Noncurrent portion (included in noncurrent liabilities) $ 2,592 |
Schedule of Lease Term and Discount Rates of Operating Leases of Lessee | 2024 2023 Weighted average remaining lease term 41 months 58 months Weighted average discount rate 5.2 % 3.7 % |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
STOCK-BASED COMPENSATION | |
Schedule of stock option activity under the Company's stock plans | Weighted- Average Weighted- Weighted- Remaining Average Average Exercise Contractual Grant-Date Shares Price Term (years) Fair Value Outstanding, January 31, 2023 1,440 $ 43.84 5.46 $ 10.11 Granted 21 $ 41.64 Exercised (94) $ 27.42 Forfeited (2) $ 33.81 Outstanding, January 31, 2024 1,365 $ 44.95 4.67 $ 10.43 Exercisable, January 31, 2024 1,273 $ 45.33 4.40 $ 10.61 Vested or expected to vest, January 31, 2024 1,365 $ 44.95 4.67 $ 10.43 |
Schedule of changes in the number of non-vested options to purchase shares of common stock | Weighted- Average Grant-Date Shares Fair Value Non-vested, January 31, 2023 194 $ 7.27 Granted 21 $ 8.65 Vested (122) $ 7.31 Forfeited (1) $ 5.68 Non-vested, January 31, 2024 92 $ 7.85 |
Schedule of changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units | The changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units for Fiscal 2024 are presented below (shares in thousands): Weighted- Average Grant-Date Shares Fair Value Outstanding, January 31, 2023 310 $ 30.80 Awarded 129 $ 30.46 Issued (42) $ 43.80 Forfeited (49) $ 15.57 Outstanding, January 31, 2024 348 $ 30.21 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
INCOME TAXES | |
Schedule of components of company's income tax (expense) benefit | 2024 2023 2022 Current: Federal $ 10,870 $ 12,776 $ 10,921 State 1,835 1,012 643 Foreign 2,537 740 — 15,242 14,528 11,564 Deferred: Federal (923) (803) (341) State 301 23 133 Foreign 1,955 (2,452) — 1,333 (3,232) (208) Income tax expense $ 16,575 $ 11,296 $ 11,356 |
Schedule of actual income tax expense amounts | 2024 2023 2022 Computed expected income tax expense $ 10,276 $ 9,660 $ 9,883 Difference resulting from: Unrecognized tax loss benefit 3,858 — — Foreign tax rate differential (2,294) (441) (352) State income taxes, net of federal tax effect 1,688 860 614 Excess executive compensation 1,040 1,397 1,296 Adjustment to valuation for foreign NOLs 2,083 (2,574) — Net benefit related to Solar Tax Credit investments (646) — — Meals and entertainment expense 626 83 58 Research and development tax credits adjustment — 6,181 — Recognition of research and development tax credit benefits — (3,430) — Other permanent differences and adjustments, net (56) (440) (143) Income tax expense $ 16,575 $ 11,296 $ 11,356 |
Schedule of unrecognized tax benefits | 2024 2023 2022 Unrecognized income tax benefits, beginning of fiscal year $ 2,882 $ 4,937 $ 4,895 Increases related to prior period income tax positions 78 — 42 Increases related to current period income tax positions — 2,359 — Expirations of statutes of limitations (407) — — Settlements — (4,414) — Unrecognized income tax benefits, end of fiscal year $ 2,553 $ 2,882 $ 4,937 |
Schedule of tax effects of temporary differences that gave rise to deferred tax assets and liabilities | 2024 2023 Assets: Net operating loss carryforwards $ 19,772 $ 13,964 Stock awards 2,726 2,726 Accrued expenses 1,955 1,480 Lease liabilities 1,383 1,189 Research and development costs deferral 1,622 1,015 Research and development credit carryforwards — 269 Other 148 337 27,606 20,980 Liabilities: Intangibles (3,819) (3,674) Property and equipment (893) (1,033) Construction contracts (839) (1,229) Right-of-use assets (1,378) (1,184) Other (619) (431) (7,548) (7,551) Valuation allowances (17,799) (9,740) Deferred tax assets, net $ 2,259 $ 3,689 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
NET INCOME PER SHARE | |
Schedule of computations of basic and diluted net income per share | 2024 2023 2022 Net income $ 32,358 $ 33,098 $ 38,244 Weighted average number of shares outstanding – basic 13,365 14,083 15,715 Effect of stock awards (1) 183 93 198 Weighted average number of shares outstanding – diluted 13,548 14,176 15,913 Net income per share attributable to the stockholders of Argan, Inc. Basic $ 2.42 $ 2.35 $ 2.43 Diluted $ 2.39 $ 2.33 $ 2.40 (1) For Fiscal 2024, 2023 and 2022, the weighted average numbers of shares determined on a dilutive basis exclude the effects of antidilutive stock options and restricted stock units covering an aggregate of 685,334 , 978,834 and 570,167 shares of common stock, respectively. The options had exercise prices per share in excess of the average market price per share for the applicable year. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
SEGMENT REPORTING | |
Schedule of operating results and financial position data of the Company's reportable business segments | Year Ended Power Industrial Telecom January 31, 2024 Services Services Services Other Totals Revenues $ 416,281 $ 142,801 $ 14,251 $ — $ 573,333 Cost of revenues 357,705 124,321 10,473 — 492,499 Gross profit 58,576 18,480 3,778 — 80,834 Selling, general and administrative expenses 24,274 6,440 2,469 11,193 44,376 Income (loss) from operations 34,302 12,040 1,309 (11,193) 36,458 Other income (loss), net 13,871 — (3) (1,393) 12,475 Income (loss) before income taxes $ 48,173 $ 12,040 $ 1,306 $ (12,586) 48,933 Income tax expense 16,575 Net income $ 32,358 Amortization of intangibles $ — $ 392 $ — $ — $ 392 Depreciation 527 1,073 409 4 2,013 Property, plant and equipment additions 1,266 1,014 473 3 2,756 Current assets $ 383,508 $ 59,123 $ 3,872 $ 100,676 $ 547,179 Current liabilities 256,975 41,869 1,591 1,825 302,260 Goodwill 18,476 9,467 90 — 28,033 Total assets 411,571 76,012 6,703 103,943 598,229 Year Ended Power Industrial Telecom January 31, 2023 Services Services Services Other Totals Revenues $ 346,033 $ 92,774 $ 16,233 $ — $ 455,040 Cost of revenues 277,402 78,034 13,243 — 368,679 Gross profit 68,631 14,740 2,990 — 86,361 Selling, general and administrative expenses 22,635 7,900 3,353 10,804 44,692 Income (loss) from operations 45,996 6,840 (363) (10,804) 41,669 Other income, net 3,829 — 3 499 4,331 Income (loss) before income taxes $ 49,825 $ 6,840 $ (360) $ (10,305) 46,000 Income tax expense 11,296 Net income $ 34,704 Amortization of intangibles $ — $ 618 $ 114 $ — $ 732 Depreciation 567 1,978 434 4 2,983 Property, plant and equipment additions 1,450 1,717 189 16 3,372 Current assets $ 307,742 $ 42,488 $ 3,900 $ 84,572 $ 438,702 Current liabilities 170,164 29,550 1,317 1,472 202,503 Goodwill 18,476 9,467 90 — 28,033 Total assets 334,593 60,038 7,153 87,703 489,487 Year Ended Power Industrial Telecom January 31, 2022 Services Services Services Other Totals Revenues $ 398,089 $ 97,890 $ 13,391 $ — $ 509,370 Cost of revenues 317,130 81,391 11,117 — 409,638 Gross profit 80,959 16,499 2,274 — 99,732 Selling, general and administrative expenses 28,323 8,167 2,146 8,685 47,321 Impairment losses 7,901 — — — 7,901 Income (loss) from operations 44,735 8,332 128 (8,685) 44,510 Other income, net 2,545 — — 7 2,552 Income (loss) before income taxes $ 47,280 $ 8,332 $ 128 $ (8,678) 47,062 Income tax expense 11,356 Net income $ 35,706 Amortization of intangibles $ 208 $ 662 $ — $ — $ 870 Depreciation 605 2,325 433 4 3,367 Property, plant and equipment additions 713 107 597 5 1,422 Current assets $ 322,448 $ 25,681 $ 2,957 $ 156,198 $ 507,284 Current liabilities 209,829 9,534 1,916 1,748 223,027 Goodwill 18,476 9,467 90 — 28,033 Total assets 345,956 44,002 6,741 156,886 553,585 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | |
Schedule of other current assets | 2024 2023 Income tax refunds receivable and prepaid income taxes $ 18,267 $ 15,327 Raw materials inventory 9,985 11,903 Prepaid expenses 6,035 4,541 Other 4,972 6,563 Total other current assets $ 39,259 $ 38,334 |
Schedule of accrued expenses | 2024 2023 Accrued project costs $ 49,135 $ 17,448 Accrued compensation 21,206 18,286 Lease liabilities 2,726 1,567 Other 8,654 12,566 Total accrued expenses $ 81,721 $ 49,867 |
DESCRIPTION OF THE BUSINESS A_3
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) | 12 Months Ended |
Jan. 31, 2024 | |
Description of the Business | |
Operating leases, options to extend | true |
Operating leases, options to terminate | true |
Period used for calculations | 5 years |
Percentage reduction in the aggregate fair value of stock option | 88.50% |
StockPlanMember | Performance-based restricted stock units | Stock Plan | |
Description of the Business | |
Period to become exercisable | 3 years |
Percentage of the maximum shares for the target number of shares awarded | 50% |
Minimum | |
Description of the Business | |
Estimated useful lives of the assets | 5 years |
Period used for calculations | 3 years |
Maximum | |
Description of the Business | |
Estimated useful lives of the assets | 39 years |
Period used for calculations | 5 years |
REVENUES FROM CONTRACTS WITH _3
REVENUES FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Disaggregation of Revenues | |||
Consolidated Revenues | $ 573,333 | $ 455,040 | $ 509,370 |
United States | |||
Disaggregation of Revenues | |||
Consolidated Revenues | 334,244 | 328,850 | 456,211 |
Republic of Ireland | |||
Disaggregation of Revenues | |||
Consolidated Revenues | 198,701 | 68,242 | 35,044 |
United Kingdom | |||
Disaggregation of Revenues | |||
Consolidated Revenues | $ 40,388 | $ 57,948 | 17,521 |
Other | |||
Disaggregation of Revenues | |||
Consolidated Revenues | $ 594 |
REVENUES FROM CONTRACTS WITH _4
REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2024 | Jan. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract Liabilities | $ 95.5 | $ 131 | |
Retained amounts by project owners | $ 21.2 | $ 21.2 | $ 49.1 |
Amounts of unpriced change orders included in transaction prices | 8.4 | 8.4 | 11.6 |
Kilroot Project | APC | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Estimated loss | $ 10 | ||
Estimated loss, including reversal of net gross profit | $ 13.6 |
REVENUES FROM CONTRACTS WITH _5
REVENUES FROM CONTRACTS WITH CUSTOMERS - Remaining Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 $ in Billions | Jan. 31, 2024 USD ($) |
REVENUES FROM CONTRACTS WITH CUSTOMERS | |
Contract backlog amount | $ 0.7 |
Performance period | 3 years |
Contract backlog (as percent) | 69% |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Cash and Cash Equivalents | ||
Accrued dividends | $ 0.7 | $ 0.3 |
Held-to-maturity Securities | ||
Cash and Cash Equivalents | ||
Maturity period | 1 year | |
Weighted average annual interest rates of CDs (as a percent) | 5.40% | 2.50% |
Accrued interest | $ 4.5 | $ 1.8 |
CASH, CASH EQUIVALENTS AND IN_4
CASH, CASH EQUIVALENTS AND INVESTMENTS - Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
CASH, CASH EQUIVALENTS AND INVESTMENTS | ||
Short-term investments | $ 109,489 | $ 151,511 |
Available-for-sale securities | 105,884 | |
Total investments | $ 215,373 | $ 151,511 |
CASH, CASH EQUIVALENTS AND IN_5
CASH, CASH EQUIVALENTS AND INVESTMENTS - Available-for-Sale Securities (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2024 USD ($) | |
Cash and Cash Equivalents | |
Interest receivable | $ 1,300 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration] | Investments |
Net unrealized holding losses for the Company's AFS securities | $ 200 |
Proceeds from sale of debt securities, available-for-sale | 0 |
Amounts of gains or losses reclassified out of other comprehensive income | 0 |
Available-for-sale securities | |
Amortized Cost | 105,623 |
Gross Unrealized Gains | 568 |
Gross Unrealized Losses | 307 |
Fair Value | 105,884 |
US Treasury notes | |
Available-for-sale securities | |
Amortized cost, Due in one to two years | 50,634 |
Amortized Cost, Due in two to three years | 45,583 |
Gross Unrealized Gains, Due in one to two years | 305 |
Gross Unrealized Gains, Due in two to three years | 263 |
Gross Unrealized Losses, Due in one to two years | 102 |
Gross Unrealized Losses, Due in two to three years | 128 |
Fair Value, Due in one to two years | 50,837 |
Fair Value, Due in two to three years | 45,718 |
U.S. corporate debt security | |
Available-for-sale securities | |
Amortized Cost, Due in two to three years | 9,406 |
Gross Unrealized Losses, Due in two to three years | 77 |
Fair Value, Due in two to three years | $ 9,329 |
Minimum | |
Cash and Cash Equivalents | |
Available-for-sale securities term | 2 years |
Maximum | |
Cash and Cash Equivalents | |
Available-for-sale securities term | 3 years |
CASH, CASH EQUIVALENTS AND IN_6
CASH, CASH EQUIVALENTS AND INVESTMENTS - Earnings on Invested Funds (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | |||
Earnings on invested funds | $ 14.1 | $ 3.4 | $ 3 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Instruments on a Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 105,884 | |
Level 1 Inputs | Fair value, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 126,646 | $ 68,647 |
Level 1 Inputs | Fair value, recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 126,646 | $ 68,647 |
Level 2 Inputs | Fair value, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 105,884 | |
Level 2 Inputs | Fair value, recurring | U.S. Treasury notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 96,555 | |
Level 2 Inputs | Fair value, recurring | U.S. corporate debt security | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 9,329 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | |
ACCOUNTS RECEIVABLE | |||
Provision for credit losses | $ 2.4 | ||
Allowance for uncollectible accounts | $ 1.8 | $ 1.9 |
INTANGIBLE ASSETS - Changes in
INTANGIBLE ASSETS - Changes in the Balances of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | |
Change in goodwill | |||
Impairment losses | $ (7,901) | ||
Goodwill, Ending Balance | 28,033 | ||
Components of goodwill | |||
Goodwill | $ 36,980 | ||
Accumulated impairment losses | (8,947) | ||
Goodwill, net | 28,033 | 28,033 | $ 28,033 |
Power Services | |||
Change in goodwill | |||
Goodwill, Ending Balance | 18,476 | ||
Components of goodwill | |||
Goodwill | 22,525 | ||
Accumulated impairment losses | (4,049) | ||
Goodwill, net | 18,476 | 18,476 | 18,476 |
Industrial Services | |||
Change in goodwill | |||
Goodwill, Ending Balance | 9,467 | ||
Components of goodwill | |||
Goodwill | 14,365 | ||
Accumulated impairment losses | (4,898) | ||
Goodwill, net | 9,467 | 9,467 | 9,467 |
Telecom Services | |||
Change in goodwill | |||
Goodwill, Ending Balance | 90 | ||
Components of goodwill | |||
Goodwill | 90 | ||
Goodwill, net | $ 90 | $ 90 | $ 90 |
INTANGIBLE ASSETS - Components
INTANGIBLE ASSETS - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amounts | $ 5,415 | $ 5,415 |
Accumulated Amortization | 3,198 | 2,806 |
Net Amounts | $ 2,217 | 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 | 2,450 | 2,150 |
Net Amounts | $ 2,049 | 2,349 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in years) | 10 years | |
Gross Amounts | $ 916 | 916 |
Accumulated Amortization | 748 | 656 |
Net Amounts | $ 168 | $ 260 |
INTANGIBLE ASSETS - Finite Live
INTANGIBLE ASSETS - Finite Lived Intangible Future Amortization Schedule (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
INTANGIBLE ASSETS | ||
2025 | $ 392 | |
2026 | 375 | |
2027 | 300 | |
2028 | 300 | |
2029 | 300 | |
Thereafter | 550 | |
Net Amounts | $ 2,217 | $ 2,609 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Indefinite-Lived Intangible Assets | |||
Payment for acquisition | $ 600 | ||
Period of amortization of goodwill for income tax purpose | 15 years | ||
Goodwill allocated for income tax reporting purposes | $ 16,500 | ||
Goodwill | 28,033 | $ 28,033 | 28,033 |
Additions to other intangible assets | 0 | 0 | |
Additions to impairment losses | 0 | 0 | 0 |
Amortization of intangibles | $ 392 | $ 732 | 870 |
LTI | |||
Indefinite-Lived Intangible Assets | |||
Payment for acquisition | $ 600 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Property, plant and equipment, net | ||
Property and equipment, gross | $ 32,613 | $ 31,682 |
Less - accumulated depreciation | 21,592 | 21,252 |
Property, plant and equipment, net | 11,021 | 10,430 |
Land and improvements | ||
Property, plant and equipment, net | ||
Property and equipment, gross | 863 | 863 |
Building and improvements | ||
Property, plant and equipment, net | ||
Property and equipment, gross | 7,910 | 7,558 |
Furniture, machinery and equipment | ||
Property, plant and equipment, net | ||
Property and equipment, gross | 17,938 | 17,219 |
Trucks, trailers and other vehicles | ||
Property, plant and equipment, net | ||
Property and equipment, gross | $ 5,902 | $ 6,042 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Summary of Property, Plant and Equipment by Geographic Area (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Property, plant and equipment, net | ||
Property, plant and equipment, net | $ 11,021 | $ 10,430 |
United States | ||
Property, plant and equipment, net | ||
Property, plant and equipment, net | 8,898 | 8,522 |
Republic of Ireland | ||
Property, plant and equipment, net | ||
Property, plant and equipment, net | 1,836 | 1,614 |
United Kingdom | ||
Property, plant and equipment, net | ||
Property, plant and equipment, net | $ 287 | $ 294 |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT, NET - Depreciation Expense and Cost of Maintenance and Repairs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Depreciation | $ 2,013 | $ 2,983 | $ 3,367 |
Costs of maintenance and repairs | $ 1,600 | $ 2,400 | $ 2,100 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Millions | Mar. 06, 2023 | Jan. 31, 2024 | 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 | $ 9.3 | $ 8.8 |
COMMITMENTS - Leases (Details)
COMMITMENTS - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Operating leases, options to extend | true | ||
Operating leases, options to terminate | true | ||
Operating lease, right-of-use assets | $ 5,300 | $ 4,800 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating Lease Right Of Use Asset, and Other Assets | Operating Lease Right Of Use Asset, and Other Assets | |
Operating lease expense | $ 1,906 | $ 2,554 | $ 3,391 |
Weighted average lease term | 41 months | 58 months | |
Weighted average discount rate | 5.20% | 3.70% | |
Unsatisfied bonded performance obligations | $ 500,000 | ||
GPS | Financial guarantee | |||
Guarantor obligation maximum exposure | 3,600 | ||
Costs of Revenues [Member] | |||
Short-term rentals expense | $ 9,500 | $ 11,300 | $ 9,600 |
COMMITMENTS - Future minimum le
COMMITMENTS - Future minimum lease payments (Details) $ in Thousands | Jan. 31, 2024 USD ($) |
Operating Leases | |
2025 | $ 2,823 |
2026 | 1,461 |
2027 | 275 |
2028 | 221 |
2029 | 213 |
Thereafter | 625 |
Total lease payments | 5,618 |
Less imputed interest | 300 |
Present value of lease payments | 5,318 |
Less current portion (included in accrued expenses) | $ 2,726 |
Less current portion (included in accrued expenses) | Accrued expenses |
Non-current portion (included in noncurrent liabilities) | $ 2,592 |
Non-current portion (included in noncurrent liabilities) | Noncurrent liabilities |
COMMITMENTS - Warranties (Detai
COMMITMENTS - Warranties (Details) | 12 Months Ended |
Jan. 31, 2024 | |
Minimum | |
Warranty period | P9M |
Maximum | |
Warranty period | twenty-four months |
COMMITMENTS - Employee Benefit
COMMITMENTS - Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Employee Benefit Plans | |||
Company's expense for defined contribution savings plans | $ 2.9 | $ 2.7 | $ 2.3 |
Minimum | |||
Employee Benefit Plans | |||
Deferred period | 4 years | ||
Maximum | |||
Employee Benefit Plans | |||
Deferred period | 7 years |
LEGAL CONTINGENCIES (Details)
LEGAL CONTINGENCIES (Details) $ in Millions | 1 Months Ended |
Sep. 30, 2021 USD ($) | |
GPS | |
Loss Contingencies | |
Payments for legal settlements | $ 27.5 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Activity under Company's Stock Option Plans (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
STOCK-BASED COMPENSATION | |||
Shares, Outstanding, Beginning balance | 1,440,000 | ||
Shares, Granted | 21,000 | 67,000 | 73,000 |
Shares, Exercised | (94,000) | ||
Shares, Forfeited | (2,000) | ||
Shares, Outstanding, Ending balance | 1,365,000 | 1,440,000 | |
Shares, Exercisable | 1,273,000 | ||
Shares, Vested or expected to vest | 1,365,000 | ||
Weighted Average Exercise Price Per Share, Outstanding, Beginning balance | $ 43.84 | ||
Weighted Average Exercise Price Per Share, Granted | 41.64 | ||
Weighted Average Exercise Price Per Share, Exercised | 27.42 | ||
Weighted Average Exercise Price Per Share, Forfeited | 33.81 | ||
Weighted Average Exercise Price Per Share, Outstanding, Ending balance | 44.95 | $ 43.84 | |
Weighted Average Exercise Price Per Share, Exercisable | 45.33 | ||
Weighted Average Exercise Price Per Share, Vested or expected to vest | $ 44.95 | ||
Weighted Average Remaining Contractual Term (Years), Outstanding | 4 years 8 months 1 day | 5 years 5 months 15 days | |
Weighted Average Remaining Contractual Term (Years), Exercisable | 4 years 4 months 24 days | ||
Weighted Average Remaining Contractual Term (Years), Vested or expected to vest | 4 years 8 months 1 day | ||
Weighted Average Grant Date Fair Value Per Share, Outstanding | $ 10.43 | $ 10.11 | |
Weighted Average Grant Date Fair Value Per Share, Exercisable | $ 10.61 | ||
Weighted Average Grant Date Fair Value Per Share, Vested or expected to vest | $ 10.43 |
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 | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
STOCK-BASED COMPENSATION | |||
Shares, Non-vested, Beginning balance | 194,000 | ||
Shares, Granted | 21,000 | 67,000 | 73,000 |
Shares, Vested | (122,000) | ||
Shares, Forfeitures | (1,000) | ||
Shares, Non-vested, Ending balance | 92,000 | 194,000 | |
Shares, Non-vested | 92,000 | 194,000 | |
Weighted Average Grant Date Fair Value Per Share, Non-vested, Beginning balance | $ 7.27 | ||
Weighted Average Grant Date Fair Value Per Share, Granted | 8.65 | $ 8.54 | $ 7.19 |
Weighted Average Grant Date Fair Value Per Share, Vested | 7.31 | ||
Weighted Average Grant Date Fair Value Per Share, Forfeitures | 5.68 | ||
Weighted Average Grant Date Fair Value Per Share, Non-vested, Ending balance | 7.85 | 7.27 | |
Weighted Average Grant Date Fair Value Per Share, Non-vested | $ 7.85 | $ 7.27 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Change in restricted stock units (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Shares | |||
Outstanding, Beginning balance (in shares) | 310 | ||
Awarded (in shares) | 129 | 146,871 | 145,721 |
Issued (in shares) | (42) | ||
Forfeited (in shares) | (49) | ||
Outstanding, Ending balance (in shares) | 348 | 310 | |
Outstanding (in shares) | 348 | 310 | |
Weighted Average Grant Date Fair Value Per Share | |||
Outstanding, Beginning balance Fair value (Per share) | $ 30.80 | ||
Awarded, Fair value (Per share) | 30.46 | $ 29.26 | $ 39.52 |
Issued, Fair value (Per share) | 43.80 | ||
Forfeited, Fair value (Per share) | 15.57 | ||
Outstanding, Ending balance Fair value (Per share) | $ 30.21 | $ 30.80 | |
Total fair values | $ 1.8 | $ 0.9 | $ 0.8 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Jun. 20, 2023 | Jun. 23, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Cash dividends deemed paid on shares | 1,492 | ||||
Stock compensation expense | $ 4,455 | $ 3,958 | $ 3,459 | ||
Unrecognized compensation cost | $ 6,000 | ||||
Compensation expense recognize, period | 3 years | ||||
Shares, Granted | 21,000 | 67,000 | 73,000 | ||
Weighted Average Grant Date Fair Value Per Share, Granted | $ 8.65 | $ 8.54 | $ 7.19 | ||
Intrinsic value of the stock options exercised | $ 1,500 | $ 600 | |||
Intrinsic value of outstanding stock options | 5,600 | ||||
Intrinsic value of exercisable stock options | $ 5,100 | ||||
2020 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of shares of common stock reserved for issuance | 500,000 | 500,000 | |||
Employee Stock Option [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 | 2,256,062 | ||||
Number of shares of common stock available for award | 543,087 | ||||
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 | ||||
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 | |||||
Incentive stock option award maximum expiration period | 3 years | ||||
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 | ||||
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 | 77,800 | ||||
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 - Components of Co
INCOME TAXES - Components of Company's Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Current: | |||
Federal | $ 10,870 | $ 12,776 | $ 10,921 |
State | 1,835 | 1,012 | 643 |
Foreign | 2,537 | 740 | |
Total | 15,242 | 14,528 | 11,564 |
Deferred: | |||
Federal | (923) | (803) | (341) |
State | 301 | 23 | 133 |
Foreign | 1,955 | (2,452) | |
Total | 1,333 | (3,232) | (208) |
Income tax expense | $ 16,575 | $ 11,296 | $ 11,356 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
INCOME TAXES | |||
Federal corporate income tax rate (as percent) | 21% | 21% | 21% |
Computed expected income tax expense | $ 10,276 | $ 9,660 | $ 9,883 |
Unrecognized tax loss benefit | 3,858 | ||
Foreign tax rate differential | (2,294) | (441) | (352) |
State income taxes, net of federal tax effect | 1,688 | 860 | 614 |
Excess executive compensation | 1,040 | 1,397 | 1,296 |
Adjustment to valuation for foreign NOLs | 2,083 | (2,574) | |
Net benefit related to Solar Tax Credit investments | (646) | ||
Meals and entertainment expense | 626 | 83 | 58 |
Research and development credits adjustment | 6,181 | ||
Recognition of research and development credit benefits (see discussion below) | (3,430) | ||
Other permanent differences and adjustments, net | (56) | (440) | (143) |
Income tax expense | $ 16,575 | $ 11,296 | $ 11,356 |
INCOME TAXES - Net Operating Lo
INCOME TAXES - Net Operating Loss Carryback (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2024 USD ($) | |
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 | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
INCOME TAXES | ||
Prior period for identify and quantify the amounts of research and development credits | 3 years | |
Research and development tax credit benefit | $ 16,200 | |
Federal research and development tax credits | 5,800 | |
Income tax expense (benefits) associated with research and development activities | $ (3,430) | |
Contract Assets | 4,400 | |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 13,800 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2,100 | 2,600 |
Unrecognized income tax benefits related to research and development credits | 5,000 | |
Settlement offer from the IRS | 7,900 | |
Unfavorable tax expense adjustment | 6,200 | |
Development tax credit | 2,400 | |
Income tax refunds and prepaid income taxes | $ 18,267 | $ 15,327 |
INCOME TAXES - Unrecognized Inc
INCOME TAXES - Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
INCOME TAXES | |||
Unrecognized Tax Benefits, beginning of fiscal year | $ 2,882 | $ 4,937 | $ 4,895 |
Increases related to prior period income tax positions | 78 | 42 | |
Increases related to current period income tax positions | 2,359 | ||
Expirations of statutes of limitations | (407) | ||
Settlements | (4,414) | ||
Unrecognized Tax Benefits, end of fiscal year | 2,553 | $ 2,882 | $ 4,937 |
Gross unrecognized income tax benefits | $ 2,600 |
INCOME TAXES - Schedule of Tax
INCOME TAXES - Schedule of Tax Effects of Temporary Differences that Gave Rise to Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Assets: | ||
Net operating loss carryforwards | $ 19,772 | $ 13,964 |
Stock awards | 2,726 | 2,726 |
Accrued expenses | 1,955 | 1,480 |
Lease liabilities | 1,383 | 1,189 |
Research and development costs deferral | 1,622 | 1,015 |
Research and development credit carryforwards | 269 | |
Other | 148 | 337 |
Total Assets | 27,606 | 20,980 |
Liabilities: | ||
Purchased intangibles | (3,819) | (3,674) |
Construction contracts | (839) | (1,229) |
Property and equipment | (893) | (1,033) |
Right-of-use assets | (1,378) | (1,184) |
Other | (619) | (431) |
Total Liabilities | (7,548) | (7,551) |
Valuation allowances | (17,799) | (9,740) |
Deferred tax assets, net | 2,259 | $ 3,689 |
Net operating losses | $ 5,500 |
INCOME TAXES - Solar Energy Pro
INCOME TAXES - Solar Energy Projects And Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Net Investment Income [Line Items] | |||
Investment account balances | $ 2,100 | $ 1,200 | |
Payment for equity method investment | 5,109 | $ 5,016 | |
Investment tax credits | 4,500 | ||
Remaining cash investment commitments | 3,300 | ||
Income tax credits | 8,100 | ||
Amortization of Equity Investments in Solar Energy Projects | 7,400 | ||
Amortization related to STC investment | 7,400 | ||
Cash paid for income taxes | 14,297 | 6,665 | 13,897 |
Income Taxes Paid | 0 | 0 | |
Loss of investment | (130) | 1,113 | (466) |
Other income (expense) | |||
Net Investment Income [Line Items] | |||
Loss of investment | $ 100 | $ 1,100 | $ 400 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
NET INCOME PER SHARE | |||
Net income | $ 32,358 | $ 33,098 | $ 38,244 |
Weighted average number of shares outstanding - basic | 13,365 | 14,083 | 15,715 |
Effects of stock awards | 183 | 93 | 198 |
Weighted average number of shares outstanding - diluted | 13,548 | 14,176 | 15,913 |
Basic (in dollars per share) | $ 2.42 | $ 2.35 | $ 2.43 |
Diluted (in dollars per share) | $ 2.39 | $ 2.33 | $ 2.40 |
NET INCOME PER SHARE - Addition
NET INCOME PER SHARE - Additional information (Details) - shares | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
NET INCOME PER SHARE | |||
Antidilutive common stock | 685,334 | 978,834 | 570,167 |
CASH DIVIDENDS AND COMMON STO_2
CASH DIVIDENDS AND COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Apr. 11, 2024 | Sep. 19, 2023 | Sep. 18, 2023 | Jan. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Percentage increase in common stock dividend | 20% | |||||||||
Regular cash dividend declared per common stock | $ 0.30 | $ 0.25 | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | $ 1.10 | $ 1 | $ 1 | |
Common stock repurchases (in shares) | 230,160 | 1,855,714 | 527,752 | |||||||
Common stock repurchased | $ 12,464 | $ 68,236 | $ 20,372 | |||||||
Share price | 40.01 | $ 40.01 | $ 36.77 | $ 38.60 | ||||||
Shares paid for tax withholding for share based compensation | 31,066 | |||||||||
Share-based payment | $ 47.19 | |||||||||
Regular cash dividend paid per common stock | $ 0.25 | $ 0.25 | ||||||||
Treasury stock to settle stock option exercises and other share-based awards | 135,156 | 0 | 0 | |||||||
Director [Member] | ||||||||||
Common stock repurchases (in shares) | 73,000 | |||||||||
Common stock repurchased | $ 3,200 | |||||||||
Share price | $ 43.50 | $ 43.50 | ||||||||
Subsequent Events | ||||||||||
Common stock repurchases (in shares) | 5,600 | |||||||||
Common stock repurchased | $ 300 | |||||||||
Share price | $ 44.87 |
VARIABLE INTEREST ENTITY (Detai
VARIABLE INTEREST ENTITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Variable Interest Entity | ||
Capitalized project development costs | $ 7,900 | |
Payments of distribution to non-controlling interest | $ 677 | |
Non-controlling Interest | ||
Variable Interest Entity | ||
Capitalized project development costs | $ 2,500 | |
GPS | ||
Variable Interest Entity | ||
Gain on settlement of impaired development cost | 1,600 | |
Payments of distribution to non-controlling interest | $ 700 |
CUSTOMER CONCENTRATIONS (Detail
CUSTOMER CONCENTRATIONS (Details) - customer | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Customer Concentration Risk | Accounts Receivable | |||
Customer Concentrations | |||
Number of customers | 3 | 3 | |
Customer Concentration Risk | Contract Asset | |||
Customer Concentrations | |||
Number of customers | 2 | 1 | |
Customer Concentration Risk | Major Customer One | Accounts Receivable | |||
Customer Concentrations | |||
Percentage of major customers or segments | 16% | 36% | |
Customer Concentration Risk | Major Customer One | Contract Asset | |||
Customer Concentrations | |||
Percentage of major customers or segments | 39% | 70% | |
Customer Concentration Risk | Major Customer Two | Accounts Receivable | |||
Customer Concentrations | |||
Percentage of major customers or segments | 14% | 12% | |
Customer Concentration Risk | Major Customer Two | Contract Asset | |||
Customer Concentrations | |||
Percentage of major customers or segments | 32% | ||
Customer Concentration Risk | Major Customer Three | Accounts Receivable | |||
Customer Concentrations | |||
Percentage of major customers or segments | 14% | 12% | |
Power Industry Services | Product Concentration Risk | Revenue | |||
Customer Concentrations | |||
Percentage of major customers or segments | 73% | 76% | 78% |
Power Industry Services | Customer Concentration Risk | Revenue | |||
Customer Concentrations | |||
Number of customers | 3 | 2 | 1 |
Power Industry Services | Customer Concentration Risk | Major Customer One | Revenue | |||
Customer Concentrations | |||
Percentage of major customers or segments | 19% | 38% | 57% |
Power Industry Services | Customer Concentration Risk | Major Customer Two | Revenue | |||
Customer Concentrations | |||
Percentage of major customers or segments | 16% | 12% | |
Power Industry Services | Customer Concentration Risk | Major Customer Three | Revenue | |||
Customer Concentrations | |||
Percentage of major customers or segments | 15% | ||
Industry services | Product Concentration Risk | Revenue | |||
Customer Concentrations | |||
Percentage of major customers or segments | 25% | 20% | 19% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 USD ($) item | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
Segment Reporting Information | |||
Operating segment | item | 1 | ||
Revenues | $ 573,333 | $ 455,040 | $ 509,370 |
Cost of revenues | 492,499 | 368,679 | 409,638 |
Gross profit | 80,834 | 86,361 | 99,732 |
Selling, general and administrative expenses | 44,376 | 44,692 | 47,321 |
Impairment loss | 7,901 | ||
Income (loss) from operations | 36,458 | 41,669 | 44,510 |
Other income (loss), net | 12,475 | 4,331 | 2,552 |
Income (loss) before income taxes | 48,933 | 46,000 | 47,062 |
Income tax expense | 16,575 | 11,296 | 11,356 |
NET INCOME | 32,358 | 34,704 | 35,706 |
Amortization of intangibles | 392 | 732 | 870 |
Depreciation | 2,013 | 2,983 | 3,367 |
Property, plant and equipment additions | 2,756 | 3,372 | 1,422 |
Current assets | 547,179 | 438,702 | 507,284 |
Current liabilities | 302,260 | 202,503 | 223,027 |
Goodwill | 28,033 | 28,033 | 28,033 |
Total assets | 598,229 | 489,487 | 553,585 |
Intercompany Eliminations | |||
Segment Reporting Information | |||
Revenues | 0 | 600 | 2,800 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information | |||
Selling, general and administrative expenses | 11,193 | 10,804 | 8,685 |
Income (loss) from operations | (11,193) | (10,804) | (8,685) |
Other income (loss), net | (1,393) | 499 | 7 |
Income (loss) before income taxes | (12,586) | (10,305) | (8,678) |
Depreciation | 4 | 4 | 4 |
Property, plant and equipment additions | 3 | 16 | 5 |
Current assets | 100,676 | 84,572 | 156,198 |
Current liabilities | 1,825 | 1,472 | 1,748 |
Total assets | 103,943 | 87,703 | 156,886 |
Power Industry Services | |||
Segment Reporting Information | |||
Goodwill | 18,476 | 18,476 | 18,476 |
Power Industry Services | Operating Segments | |||
Segment Reporting Information | |||
Revenues | 416,281 | 346,033 | 398,089 |
Cost of revenues | 357,705 | 277,402 | 317,130 |
Gross profit | 58,576 | 68,631 | 80,959 |
Selling, general and administrative expenses | 24,274 | 22,635 | 28,323 |
Impairment loss | 7,901 | ||
Income (loss) from operations | 34,302 | 45,996 | 44,735 |
Other income (loss), net | 13,871 | 3,829 | 2,545 |
Income (loss) before income taxes | 48,173 | 49,825 | 47,280 |
Amortization of intangibles | 208 | ||
Depreciation | 527 | 567 | 605 |
Property, plant and equipment additions | 1,266 | 1,450 | 713 |
Current assets | 383,508 | 307,742 | 322,448 |
Current liabilities | 256,975 | 170,164 | 209,829 |
Goodwill | 18,476 | 18,476 | 18,476 |
Total assets | 411,571 | 334,593 | 345,956 |
Industrial Services | |||
Segment Reporting Information | |||
Goodwill | 9,467 | 9,467 | 9,467 |
Industrial Services | Operating Segments | |||
Segment Reporting Information | |||
Revenues | 142,801 | 92,774 | 97,890 |
Cost of revenues | 124,321 | 78,034 | 81,391 |
Gross profit | 18,480 | 14,740 | 16,499 |
Selling, general and administrative expenses | 6,440 | 7,900 | 8,167 |
Income (loss) from operations | 12,040 | 6,840 | 8,332 |
Income (loss) before income taxes | 12,040 | 6,840 | 8,332 |
Amortization of intangibles | 392 | 618 | 662 |
Depreciation | 1,073 | 1,978 | 2,325 |
Property, plant and equipment additions | 1,014 | 1,717 | 107 |
Current assets | 59,123 | 42,488 | 25,681 |
Current liabilities | 41,869 | 29,550 | 9,534 |
Goodwill | 9,467 | 9,467 | 9,467 |
Total assets | 76,012 | 60,038 | 44,002 |
Telecommunications Infrastructure Services | |||
Segment Reporting Information | |||
Goodwill | 90 | 90 | 90 |
Telecommunications Infrastructure Services | Operating Segments | |||
Segment Reporting Information | |||
Revenues | 14,251 | 16,233 | 13,391 |
Cost of revenues | 10,473 | 13,243 | 11,117 |
Gross profit | 3,778 | 2,990 | 2,274 |
Selling, general and administrative expenses | 2,469 | 3,353 | 2,146 |
Income (loss) from operations | 1,309 | (363) | 128 |
Other income (loss), net | (3) | 3 | |
Income (loss) before income taxes | 1,306 | (360) | 128 |
Amortization of intangibles | 114 | ||
Depreciation | 409 | 434 | 433 |
Property, plant and equipment additions | 473 | 189 | 597 |
Current assets | 3,872 | 3,900 | 2,957 |
Current liabilities | 1,591 | 1,317 | 1,916 |
Goodwill | 90 | 90 | 90 |
Total assets | $ 6,703 | $ 7,153 | $ 6,741 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | ||
Income tax refunds receivable and prepaid income taxes | $ 18,267 | $ 15,327 |
Raw materials inventory | 9,985 | 11,903 |
Prepaid expenses | 6,035 | 4,541 |
Other | 4,972 | 6,563 |
Total other current assets | $ 39,259 | $ 38,334 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | ||
Accrued project costs | $ 49,135 | $ 17,448 |
Accrued compensation | 21,206 | 18,286 |
Lease liabilities | 2,726 | 1,567 |
Other | 8,654 | 12,566 |
Total accrued expenses | $ 81,721 | $ 49,867 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Additional Information (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2024 USD ($) | |
Fraudulently Induced Payment | |
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | |
Total amount of fraud loss and professional fee recovered | $ 2.7 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Apr. 11, 2024 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Apr. 10, 2024 | |
SUBSEQUENT EVENTS | |||||
Common stock repurchases (in shares) | 230,160 | 1,855,714 | 527,752 | ||
Common stock repurchased | $ 12,464 | $ 68,236 | $ 20,372 | ||
Share price | $ 40.01 | $ 36.77 | $ 38.60 | ||
Adjustment to its liability for uncertain income tax positions | $ 4,414 | ||||
Subsequent Event [Member] | |||||
SUBSEQUENT EVENTS | |||||
Common stock repurchases (in shares) | 5,600 | ||||
Common stock repurchased | $ 300 | ||||
Share price | $ 44.87 | ||||
Dividends payable amount per share | $ 0.30 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 32,358 | $ 33,098 | $ 38,244 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jan. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |