Q4 2024 Argan Inc Earnings Call Transcript
Key Points
- Argan Inc (AGX) reported a solid fourth-quarter performance, closing out fiscal 2024 with a 26% increase in consolidated revenue to $573.3 million.
- The company's project backlog grew to $757 million sequentially, showing a consistent level of backlog since fiscal 2022 despite significant revenue growth.
- Argan Inc (AGX) ended fiscal 2024 with more than $400 million of cash and investments, net liquidity of $245 million, and no debt.
- During fiscal 2024, Argan Inc (AGX) repurchased approximately 300,000 shares of common stock and increased the quarterly cash dividend by 20% to $0.30 per share.
- The power industry services segment saw a 33% increase in revenues to $119 million for the fourth quarter, and the industrial construction services segment reported revenue growth of 64% and a pretax net income increase of 155% compared to the fourth quarter of fiscal 2023.
- The Kilroot project in Northern Ireland faced significant operational and contractual challenges, resulting in losses of approximately $2.1 million for the fourth quarter and $13.6 million for fiscal 2024.
- The gross profit margin for fiscal 2024 decreased to 14.1% compared to 19% for fiscal 2023, primarily due to the loss recorded on the Kilroot project.
- The effective income tax rate for fiscal 2024 was 33.9%, higher than the previous two years' rates of around 25%, due to the net operating loss incurred by APC in the UK related to the Kilroot project.
- The telecommunications infrastructure services group, being the smallest segment, contributed only 2% of the fourth-quarter revenues.
- The company's actual results, performance, or achievements may differ materially from those expressed or implied by forward-looking statements due to known and unknown factors and risks.
Good evening, ladies and gentlemen, and welcome to the Argan, Inc., earnings release conference call for the fiscal fourth quarter and year ended January 31, 2024. This call is being recorded. (Operator Instructions)
There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time, it is my pleasure to turn the floor over to your host for today, Jennifer Bilodeau of IMS Investor Relations. Please go ahead, ma'am.
Thank you. Good evening, and welcome to our conference call to discuss Argan's results for the fourth quarter and fiscal year ended January 31, 2024. On the call today, we have David Watson, Chief Executive Officer; and Hank Deily, Chief Financial Officer.
I will take a moment to read the Safe Harbor statements. Statements made during this conference call and presented in the presentation that are not based on historical facts are forward-looking statements. Such statements include but are not limited to projections or
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