Argan, Inc. Reports Strong First Quarter Results

Argan, Inc. (NYSE MKT: AGX) today announced financial results for the three months ended April 30, 2012.

For the quarter ended April 30, 2012, net revenues were $63.7 million compared to $16.0 million for the quarter ended April 30, 2011. Gemma Power Systems LLC and affiliates (Gemma) contributed $57.7 million, or 91% of net revenues in the first quarter of fiscal 2013, compared to $14.0 million, or 88% of net revenues in the first quarter of fiscal 2012.

Argan reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) from continuing operations of $7.3 million for the quarter ended April 30, 2012 compared to $1.4 million for the quarter ended April 30, 2011. Gemma recorded $7.3 million in EBITDA for the first quarter of fiscal 2013 compared to $2.3 million for the first quarter in fiscal 2012.

Income from continuing operations for the first quarter of fiscal 2013 was $4.5 million, or $0.34 per diluted share based on 13,950,000 diluted shares outstanding, compared to income from continuing operations for the first quarter of fiscal 2012 of $745,000, or $0.05 per diluted share based on 13,679,000 diluted shares outstanding.

Net income attributable to Argan, Inc. shareholders for the first quarter of fiscal 2013 was $4.4 million, or $0.32 per diluted share, compared to $606,000, or $0.04 per diluted share for the first quarter of fiscal 2012.

In March 2011, Vitarich Laboratories, Inc. (VLI), a wholly owned subsidiary of Argan, sold substantially all of its assets to NBTY Florida, Inc. As a result, Argan is reporting VLI’s results for the three months ended April 30, 2012 and 2011 as discontinued operations. The financial results for the quarter ended April 30, 2011 includes certain net proceeds of the sale transaction.

Consolidated working capital increased to approximately $80.1 million as of April 30, 2012 from approximately $74.6 million as of April 30, 2011. Consolidated tangible net worth increased to $85.0 million at April 30, 2012 from $77.2 million at April 30, 2011.

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