Argan, Inc. · NYSE:AGX
Argan — Investor Presentation (December 2022)
21 slides from Argan's investor presentation, December 2022
Slide 1: December 2022
December 2022
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, including those related to the potential effects of the COVID-19 pandemic on ou
Slide 3: Company Overview – NYSE: AGX
Company Overview – NYSE: AGX Construction company with four 100% owned subsidiaries Market capitalization – $0.5 billion(1) Regular quarterly dividend of $0.25 per share Active $100 million share repurchase plan Strong balance sheet at October 31, 2022 – No leverage – Cash & short-term inv
Slide 4: Business Overview – Construction Company
Business Overview – Construction Company Gemma Power Systems (“GPS”) provides TTM Revenues by Subsidiary engineering, procurement and construction (“EPC”) services to the power generation market, including the renewable energy sector 56.2% 21.4% Atlantic Projects Company (“APC”) provides turbine
Slide 5: Revenues
Revenues $900 $893 $800 $700 $675 $600 $500 $509 $ Millions $482 $462 $400 $413 $383 $392 $300 $279 $200 $227 $239 $100 $142 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (1) NOTE: Except where noted otherwise, the years presented throughout this presentation relate to Argan’s fisca
Slide 6: Net Income
Net Income(1) $80 $70 $70.3 $72.0 $60 $50 $52.0 $40 $40.1 $38.2 $30 $36.3 $30.4 $20 $23.9 $23.3 $21.7 $ Millions $10 $9.3 $- (2) (3) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $(10) $(20) $(30) $(40) ($42.7) $(50) (1) Attributable to the stockholders of AGX. (2) The net loss include
Slide 7: EBITDA
EBITDA(1) $120 $110 $116.1 $110.6 $100 $90 $80 $70 $60 $66.3 $62.9 $50 $53.8 $52.2 $52.5 $ Millions $40 $37.7 $40.2 $30 $29.5 $20 $10 $12.9 $- (2) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $(10) $(20) $(30) $(40) $(45.1) $(50) (1) Attributable to the stockholders of AGX. (2) TTM th
Slide 8: Backlog
Backlog $1,300 $1,334 $1,200 $1,100 $1,094 $1,000 $900 $870 $ Millions $800 $839 $700 $714 $600 $500 $400 $380 $300 $200 $100 $- 2018 2019 2020 2021 2022 10/31/2022 As of January 31, 8
Slide 9: Book Value & Dividends
Book Value & Dividends Tangible Book Value(1) & Cumulative Dividends Per Share $35.00 $30.00 $6.25 $25.00 $11.25 $10.25 $12.00 $5.25 $7.25 $20.00 $4.25 $15.00 $3.25 $2.55 $22.83 $10.00 $1.85 $20.34 $19.59 $18.38 $19.34 $17.81 $1.10 $16.08 $0.50 $11.29 $11.58 $5.00 $9.50 $7.16 $5.61 $5.87 $4.13 $4.83
Slide 10: Outstanding Shares – $100 Million Share Repurchase Plan
$100 Million Share Repurchase Plan • To date, the Company has repurchased 2,249,000 shares of 15,784,000 15,000,000 common stock for $83.6 million 15,258,000 14,586,000 at an average price of $37.19 per 13,884,000 share 13,576,000 12,500,000 • During the third quarter, the Outstanding Shares Company
Slide 11: CEO Comment on Quarter
CEO Comment on Quarter “We were pleased to announce last month that our Gemma Power Systems subsidiary received full notice to proceed on an engineering, procurement and construction (“EPC”) services contract to build the Trumbull Energy Center, a 950 MW natural gas-fired power plant in Lordstown, O
Slide 12: Financial Results
Financial Results (in thousands, except per share data) October 31 For the Quarter Ended: 2022 2021 Change Revenues $ 117,875 $ 124,451 $ (6,576) Cost of revenues 95,667 98,316 (2,649) Gross profit 22,208 26,135 (3,927) Gross margin % 18.8 % 21.0 % (2.2) % Net income $ 7,758 $ 12,393 $ (4,635) Dilut
Slide 13: Quarterly Financial Drivers
Quarterly Financial Drivers Consolidated revenues for the quarter ended October 31, 2022 decreased by $6.6 million, or 5.3%, to $117.9 million, from consolidated revenues of $124.5 million reported for the three months ended October 31, 2021. – Consolidated revenues of our power industry services
Slide 14: 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 approximately $0.7 billion, or ~22x cash on cash and an IRR of ~75% Business – engineering, procurement and construction of natural gas- fired and
Slide 15: Extensive Energy Project Portfolio
Extensive Energy Project Portfolio Power facilities – combined cycle solution Power facilities – simple cycle solution – CEF Trumbull Energy Center – CPV Sentinel Energy Project – Caithness Guernsey Power Station – A.L. Pierce Re-powering Project – Caithness Moxie Freedom Generating Plant – Vand
Slide 16: Why Invest in AGX?
Why Invest in AGX? Consistent strong operational performance – converting revenues into profit Growing and transitioning target market – reliable and net-zero power generation requires huge investments in the construction of renewable, alternative fuel and gas-fired generation Excellent safety
Slide 17: 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 18: Consolidated Income Statements – Quarter
Appendix Consolidated Income Statements – Quarter (in thousands e xce pt pe r share amounts) Three Months Ended 31-Oct-22 31-Jul-22 30-Apr-22 31-Jan-22 31-Oct-21 Revenues $ 117,875 $ 118,110 $ 100,277 $ 125,570 $ 124,451 Cost of revenues 95,667 93,723 80,539 103,339 98,316 Gross profit 22,208 24,387
Slide 19: Reconciliations to EBITDA – Consolidated
Appendix Reconciliations to EBITDA – Consolidated (in thousands e xce pt pe r share amounts) Three Months Ended 31-Oct-22 31-Jul-22 30-Apr-22 31-Jan-22 31-Oct-21 Net income (loss) $ 7,758 $ 4,222 $ 7,485 $ (323) $ 12,393 Less EBITDA attributable to the noncontrolling interest - - - 2,538 - Income ta
Slide 20: Consolidated Balance Sheets – Assets
Appendix Consolidated Balance Sheets – Assets (in thousands) October 31, 2022 January 31, 2022 ASSETS CURRENT ASSETS Cash and cash equivalents $ 136,065 $ 350,472 Short-term investments 150,566 90,026 Accounts receivable, net 37,899 26,978 Contract assets 11,551 4,904 Other current assets 28,884 34,
Slide 21: Consolidated Balance Sheets – Liabilities and Equity
Appendix Consolidated Balance Sheets – Liabilities and Equity (in thousands) October 31, 2022 January 31, 2022 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 45,268 $ 41,822 Accrued expenses 40,243 53,315 Contract liabilities 49,031 127,890 TOTAL CURRENT LIABILITIES 134,542 223,027 No