Argan, Inc. · NYSE:AGX
Argan — Investor Presentation (September 2019)
16 slides from Argan's investor presentation, September 2019
Slide 1: September 2019
September 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement All statements in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as “believe,” “intend,” “expect,” “may,” “could,”
Slide 3: Company Overview
Company Overview NYSE: AGX Holding company for four 100% controlled subsidiaries Market capitalization (9/11/19) – $0.7 billion Quarterly dividend $0.25 per share Quarter Ended Trailing Twelve (in millions) July 31, 2019 Months (TTM) Revenues $ 63 $317 Net Income* 1 2 EBITDA* (4) (13) St
Slide 4: Business Overview – Holding Company
Business Overview – Holding Company Gemma Power Systems (“GPS”) provides engineering, procurement and construction TTM Revenues by Subsidiary (“EPC”) services to power generation and renewable energy markets 37.1% The Roberts Company (“TRC”) is 32.3% principally an industrial steel fabricator an
Slide 5: Revenues
Revenues* $900 $893 $800 $700 $675 $600 $500 $ Millions $482 $400 $413 $383 $300 $317 $279 $200 $227 $100 $142 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020** * As expected, with several major projects completed in the year ended January 31, 2019, our revenues and several other financial metrics w
Slide 6: Net Income
Net Income* $80 $70 $72.0 $70.3 $60 $50 $52.0 $39.1 $ Millions $40 $40.1 $36.3 $30 $30.4 $20 $23.3 $10 $9.3 $2.0 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020** * Attributable to the Stockholders of AGX. 6 ** TTM through July 31, 2019. The dotted line reflects net income excluding the effect of th
Slide 7: Project Backlog
Project Backlog $1.4 $1.4 $1.2 $1.0 $1.1 $1.1 $1.0 $ Billions $0.8 $0.6 $0.4 $0.4 $0.2 $0.0 2017 2018 2019 4/30/2019 7/31/2019 As of January 31, 7
Slide 8: Book Value
Book Value Tangible Book Value* & Cumulative Dividends Per Share $30.00 $6.25 $25.00 $6.75 $5.25 $20.00 $4.25 $15.00 $3.25 $2.55 $22.83 $10.00 $1.85 $20.34 $20.68 $1.10 $16.08 $0.50 $11.29 $11.58 $5.00 $9.50 $7.16 $5.87 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tangible Book Value Cumulative D
Slide 9: Overview of Gemma Power Systems
Overview of Gemma Power Systems History – acquired by Argan in December 2006 for $33 million and has generated cumulative EBITDA since acquisition of over $630 million, or ~19x cash on cash and an IRR of ~75% Business – engineering, procurement and construction of natural gas- fired and alternat
Slide 10: Extensive Project Portfolio
Extensive Project Portfolio Power facilities – combined cycle solution Power facilities – simple cycle solution – Guernsey Power Station – Exelon West Medway II Facility – Caithness Moxie Freedom Generating Plant – CPV Sentinel Energy Project – CPV Towantic Energy Center – A.L. Pierce Re-powerin
Slide 11: Construction Services Peer Group
Construction Services Peer Group Stock 12 Month LTM LTM Return Price Total Market Debt/ LTM Gross EBITDA on Avg. Ticker Company Name 8/30/2019 Return Cap Equity Revenue Margin Margin Equity AGX Argan, Inc. $41.31 % 5.4 % $645.8 0.0 X $390.3 11.0 % 2.5 % 4.8% FLR Fl uor Corpora ti on 17.67 (68.7) 2,4
Slide 12: Corporate Data
Corporate Data Investor Relations Websites Investor Relations Argan, Inc. 301-315-0027 www.arganinc.com [email protected] Gemma Power Systems www.gemmapower.com Corporate Headquarters The Roberts Company Argan, Inc. www.robertscompany.com One Church Street, Suite 201 Rockville, Maryland 20850 Atlant
Slide 13: Consolidated Income Statements - Quarter
Appendix Consolidated Income Statements - Quarter (in thousands except per share amounts) Three Months Ended 31-Jul-19 30-Apr-19 31-Jan-19 31-Oct-18 31-Jul-18 Revenues $ 63,059 $ 49,544 $ 87,658 $ 116,459 $ 136,670 Cost of revenues 60,094 70,570 80,912 86,927 105,962 Gross Profit 2,965 (21,026) 6,74
Slide 14: Reconciliations to EBITDA – Consolidated
Appendix Reconciliations to EBITDA – Consolidated Three Months Ended 31-Jul-19 30-Apr-19 31-Jan-19 31-Oct-18 31-Jul-18 Net income (loss) $ 980 $ (29,913) $ (2,291) $ 32,374 $ 16,944 Less EBITDA attributable to noncontrolling interests 172 115 84 60 28 Interest expense — — — — 110 Income tax (benefit
Slide 15: Consolidated Balance Sheets – Assets
Appendix Consolidated Balance Sheets – Assets (dollars in thousands) July 31, 2019 January 31, 2019 ASSETS CURRENT ASSETS Cash and cash equivalents $ 170,710 $ 164,318 Short-term investments 62,914 132,213 Accounts receivable, net 45,989 36,174 Contract assets 51,742 58,357 Other current assets 21,7
Slide 16: Consolidated Balance Sheets – Liabilities and Equity
Appendix Consolidated Balance Sheets – Liabilities and Equity (dollars in thousands) July 31, 2019 January 31, 2019 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 26,028 $ 39,870 Accrued expenses 30,928 33,097 Contract liabilities 1,758 8,349 TOTAL CURRENT LIABILITIES 58,714 81,316 Le