Argan, Inc. Reports Robust Second Quarter Results

Argan, Inc. (NYSE MKT: AGX) today 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.

The Company 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.

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