ROCKVILLE, Md.--(BUSINESS WIRE)--Argan, Inc. (NYSE: AGX) (the “Company”) today announced financial results for its second quarter ended July 31, 2016. Please read the Company’s Quarterly Report on Form 10-Q, which the Company expects to file tomorrow with the U.S. Securities and Exchange Commission (the “SEC”), which can be retrieved from the SEC's website at www.sec.gov or from the Company's website at www.arganinc.com.

Highlights for the Quarter:

• Revenues increased 25% to $162 million for the quarter ended July 31, 2016 as compared to $130 million in the prior quarter.
• Net income attributable to the stockholders of Argan increased 61% to $19.7 million, or $1.29 per diluted share, for the quarter ended July 31, 2016.
• Our liquidity (current assets less current liabilities) as of July 31, 2016 increased 10% to $200.2 million from $182.8 million as of April 30, 2016, with no debt outstanding.
• Gemma Power Systems (GPS) reached substantial completion on two large, gas-fired power plants in April and June 2016, respectively.
• GPS reached a settlement related to $12.9 million in potential scheduled liquidated damages, which are no longer outstanding.
• Atlantic Projects Company (APC) incurred impairment on goodwill of $2.0 million reflecting the suspension of a major project and other “Brexit” near term impacts to its operations in the UK.

Second Quarter Results:

Revenue increased 25% to $162 million over last quarter primarily due to GPS ramping up work on five new projects and with the increased efforts to reach substantial completion on two large, gas-fired power plants in April and June 2016, respectively. Gross profit increased 56% to a record $44.0 million as compared to the prior quarter, primarily due to these increased revenues but also due to reaching a settlement of potential scheduled liquidated damages, which are no longer outstanding. The overall power industry services business continues to drive our financial results, reflecting 88% of consolidated revenues for the three months ended July 31, 2016. Net income attributable to our stockholders for the second quarter increased 61% to $19.7 million, or $1.29 per diluted share, from $12.2 million, or $0.81 per diluted share, for the prior quarter. Likewise, EBITDA attributable to our stockholders for the second quarter increased 59% to $32.1 million, or $2.10 per diluted share, from $20.2 million, or $1.34 per diluted share, for the prior quarter. Despite our record earnings, we did experience decreased performance at our non-GPS subsidiaries, and in the case of APC, recognized an impairment loss of $2.0 million reflecting the suspension of a major project and other “Brexit” near term impacts to its operations in the UK. Our balance sheet continues to strengthen as of July 31, 2016, which has cash and short-term investments of $383.2 million, net liquidity of $200.2 million, and no debt.

Commenting on Argan’s second quarter results, Rainer Bosselmann, Chairman and Chief Executive Officer, stated, “These record results could not have been achieved without the operational excellence of our employees. Their dedication to finish out projects and overcome hurdles was especially reflected in our reaching substantial completion on both Panda power plant projects, which were the largest drivers of our financial results this quarter. With the successful substantial completion of those projects, we are focusing on ramping up our other five major EPC projects, sales efforts, and improving performance at our non-Gemma subsidiaries. Even though we did not add any major projects to our backlog during the quarter, it remains over $1.3 billion and we expect continued growth in our revenues the rest of this year and into the next.”

About Argan, Inc.

Argan’s primary business is providing a full range of services to the power industry including the engineering, procurement and construction of gas-fired and biomass-fired power plants, along with related commissioning, operations management, maintenance, project development and consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns Southern Maryland Cable, which provides telecommunications infrastructure services, and The Roberts Company, which is a fully integrated fabrication, construction and plant services company.