Argan – AGX – Reports Financial Results

NYSE : AGX) announced financial results for the three and six months ended July 31, 2012.

For the quarter ended July 31, 2012, net revenues were $82.6 million compared to $26.3 million during the quarter ended July 31, 2011. Gemma Power Systems (Gemma) contributed $78.1 million or 95% of net revenues in the second quarter of fiscal 2013, compared to $24.4 million or 93% of net revenues in the second quarter of Argan’s fiscal 2012. The substantial increase in net revenues was due primarily to the significant level of construction activity at a large gas fired power plant in Southern California. In May 2012, Gemma received full notice to proceed for a 49.9 MW Biomass-Fired Power Project in Southeast, Texas.

For the six months ended July 31, 2012, net revenues were $146.3 million compared to $42.3 million during the six months ended July 31, 2011. Gemma contributed $135.8 million or 93% of net revenues in the first six months of fiscal 2013 compared to $38.4 million or 91% of net revenues in the first six months of fiscal 2012.

AGX reported EBITDA (Earnings before interest, taxes, depreciation and amortization) from continuing operations of $9.8 million for the quarter ended July 31, 2012 compared to $2.5 million for the same prior year period. Gemma, for its segment, recorded $10.1 million in EBITDA for the second quarter of fiscal 2013 compared to $3.1 million in the second quarter of fiscal 2012. The Company reported EBITDA from continuing operations of $17.0 million for the six months ended July 31, 2012 compared to $3.9 million for the same prior year period. Gemma, for its segment, recorded $17.4 million in EBITDA for the first six months of fiscal 2013 compared to $5.4 million for the first six months of fiscal 2012.

In the second quarter of fiscal 2013, AGX reported income from continuing operations before income taxes of $9.6 million compared to income from continuing operations before income taxes of $2.3 million in the second quarter of 2012.

For the first six months of fiscal 2013, the Company reported income from continuing operations before income taxes of $16.6 million compared to income from continuing operations before income taxes of $3.5 million for the first six months of fiscal 2012.

About Argan, Inc. – AGX

Argan’s (AGX) primary business is designing and building energy plants through its Gemma Power Systems subsidiary. These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind and solar power. AGX also owns Southern Maryland Cable, Inc.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.