Argan, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results
Declares Regular Quarterly Dividend of
Consolidated Financial Highlights
($ in thousands, except per share data)
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For the Quarter Ended: |
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2024 |
|
2023 |
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Change |
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Revenues |
|
$ |
164,554 |
|
|
$ |
118,778 |
|
|
$ |
45,776 |
|
Gross profit |
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23,633 |
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20,028 |
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3,605 |
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Gross margin % |
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14.4 |
% |
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16.9 |
% |
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(2.5 |
)% |
Net income attributable to the stockholders of the Company |
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$ |
12,018 |
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$ |
13,633 |
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$ |
(1,615 |
) |
Diluted per share |
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0.89 |
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1.00 |
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(0.11 |
) |
EBITDA attributable to the stockholders of the Company |
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17,564 |
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11,227 |
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6,337 |
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Cash dividends per share |
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0.30 |
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0.25 |
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0.05 |
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For the Fiscal Year Ended: |
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2024 |
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2023 |
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Change |
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Revenues |
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$ |
573,333 |
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$ |
455,040 |
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$ |
118,293 |
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Gross profit |
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80,834 |
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86,361 |
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(5,527 |
) |
Gross margin % |
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14.1 |
% |
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19.0 |
% |
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(4.9 |
)% |
Net income attributable to the stockholders of the Company |
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$ |
32,358 |
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$ |
33,098 |
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$ |
(740 |
) |
Diluted per share |
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2.39 |
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2.33 |
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0.06 |
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EBITDA attributable to the stockholders of the Company |
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51,338 |
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48,109 |
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3,229 |
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Cash dividends per share |
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1.10 |
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1.00 |
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0.10 |
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As of: |
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2024 |
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2023 |
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Change |
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Cash, cash equivalents and investments |
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$ |
412,405 |
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$ |
325,458 |
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$ |
86,947 |
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Net liquidity (1) |
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244,919 |
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236,199 |
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8,720 |
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Share repurchase treasury stock, at cost |
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97,528 |
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88,641 |
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8,887 |
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Project backlog |
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757,000 |
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822,000 |
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(65,000 |
) |
(1) |
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Net liquidity, or working capital, is defined as total current assets less total current liabilities. |
“While our fiscal 2024 results were strong, as we’ve previously discussed, our international subsidiary,
“Our progress during fiscal 2024 illustrates the underlying strength of our business as we continue to grow our solid reputation as a full-service construction and project management partner with extensive capabilities for the support of both traditional and renewable power facilities as well as industrial projects. As we move through fiscal 2025, we’re focused on leveraging our strong reputation to continue to capitalize on the opportunities we’re seeing.”
Fourth Quarter Results
Consolidated revenues for the quarter ended
For the quarter ended
Selling, general and administrative expenses increased by
Other income increased by
For the quarter ended
Fiscal Year 2024 Results
Power Industry Services
Revenues from the power industry services business increased by 20.3%, or
Industrial Construction Services
Revenues from industrial construction services increased by
Consolidated Operating Results
Consolidated revenues for Fiscal 2024 were
Selling, general and administrative expenses were
For Fiscal 2024 and Fiscal 2023, the amounts of other income, net, were
The Company recorded income tax expense of
For Fiscal 2024, Argan reported net income of
As of
Dividend Declaration and Share Repurchase Program
On
During Fiscal 2024, the Company repurchased 303,160 shares of common stock at a cost of
Conference Call and Webcast
Argan will host a conference call and webcast for investors today,
Domestic stockholders and interested parties may participate in the conference call by dialing (888) 506-0062 and international participants should dial (973) 528-0011; all callers shall use access code: 802786. The call and the accompanying slide deck will also be webcast at:
https://www.webcaster4.com/Webcast/Page/2961/50203
The conference call and slide deck may also be accessed via the Investor Center section of the Company’s website at https://arganinc.com/investor-center. Please allow extra time prior to the call to visit the site.
A replay of the teleconference will be available until
About Argan
Argan’s primary business is providing a full range of construction and related services to the power industry. Argan’s service offerings focus on the engineering, procurement and construction of natural gas-fired power plants and renewable energy facilities, along with related commissioning, maintenance, project development and technical consulting services, through its
Non-GAAP Financial Measures
The Company prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”). Within this press release, the Company may make reference to EBITDA (earnings before interest, taxes, depreciation, and amortization), a non-GAAP financial measure. The Company believes that the non-GAAP financial measure described in this press release is important to management and investors because the measure supplements the understanding of Argan’s ongoing operating results, excluding the effects of capital structure, depreciation and amortization, and tax rates. The non-GAAP financial measure referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in this press release. Financial tables at the end of this press release provide a reconciliation of the non-GAAP financial measure to its comparable GAAP measure.
Safe Harbor Statement
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Reference is hereby made to the cautionary statements made by the Company with respect to risk factors set forth in its most recent reports on Form 10-K, Forms 10-Q and other
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CONSOLIDATED STATEMENTS OF EARNINGS |
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(In thousands, except per share data) |
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Three Months Ended |
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Fiscal Year Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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REVENUES |
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$ |
164,554 |
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$ |
118,778 |
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$ |
573,333 |
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$ |
455,040 |
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Cost of revenues |
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140,921 |
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|
98,750 |
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492,499 |
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368,679 |
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GROSS PROFIT |
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23,633 |
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20,028 |
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80,834 |
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86,361 |
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Selling, general and administrative expenses |
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11,909 |
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10,466 |
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44,376 |
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44,692 |
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INCOME FROM OPERATIONS |
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11,724 |
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9,562 |
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36,458 |
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41,669 |
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Other income, net |
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5,253 |
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2,463 |
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12,475 |
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4,331 |
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INCOME BEFORE INCOME TAXES |
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16,977 |
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12,025 |
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48,933 |
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46,000 |
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Income tax expense (benefit) |
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4,959 |
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(3,214 |
) |
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16,575 |
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11,296 |
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NET INCOME |
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12,018 |
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15,239 |
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32,358 |
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34,704 |
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Net income attributable to non-controlling interest |
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— |
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1,606 |
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— |
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|
1,606 |
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NET INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. |
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12,018 |
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13,633 |
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32,358 |
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33,098 |
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Foreign currency translation adjustments |
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(293 |
) |
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2,176 |
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(920 |
) |
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(425 |
) |
Net unrealized gains on available-for-sale securities |
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|
1,346 |
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— |
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|
199 |
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— |
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COMPREHENSIVE INCOME ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. |
|
$ |
13,071 |
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$ |
15,809 |
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$ |
31,637 |
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$ |
32,673 |
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NET INCOME PER SHARE ATTRIBUTABLE TO THE STOCKHOLDERS OF ARGAN, INC. |
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Basic |
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$ |
0.90 |
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$ |
1.01 |
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$ |
2.42 |
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$ |
2.35 |
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Diluted |
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$ |
0.89 |
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$ |
1.00 |
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$ |
2.39 |
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$ |
2.33 |
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING |
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Basic |
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13,319 |
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13,535 |
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13,365 |
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|
14,083 |
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Diluted |
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13,548 |
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13,625 |
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13,548 |
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14,176 |
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CASH DIVIDENDS PER SHARE |
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$ |
0.30 |
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$ |
0.25 |
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$ |
1.10 |
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$ |
1.00 |
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CONSOLIDATED BALANCE SHEETS |
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(Dollars in thousands, except per share data) |
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2024 |
|
2023 |
||||
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
|
$ |
197,032 |
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$ |
173,947 |
|
Investments |
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|
215,373 |
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|
151,511 |
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Accounts receivable, net |
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|
47,326 |
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|
50,132 |
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Contract assets |
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|
48,189 |
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|
24,778 |
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Other current assets |
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|
39,259 |
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|
38,334 |
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TOTAL CURRENT ASSETS |
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|
547,179 |
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|
438,702 |
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Property, plant and equipment, net |
|
|
11,021 |
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|
10,430 |
|
|
|
|
28,033 |
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|
28,033 |
|
Intangible assets, net |
|
|
2,217 |
|
|
|
2,609 |
|
Deferred taxes, net |
|
|
2,259 |
|
|
|
3,689 |
|
Right-of-use and other assets |
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|
7,520 |
|
|
|
6,024 |
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TOTAL ASSETS |
|
$ |
598,229 |
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$ |
489,487 |
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||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
|
|
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Accounts payable |
|
$ |
39,485 |
|
|
$ |
56,375 |
|
Accrued expenses |
|
|
81,721 |
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|
|
49,867 |
|
Contract liabilities |
|
|
181,054 |
|
|
|
96,261 |
|
TOTAL CURRENT LIABILITIES |
|
|
302,260 |
|
|
|
202,503 |
|
Noncurrent liabilities |
|
|
5,030 |
|
|
|
6,087 |
|
TOTAL LIABILITIES |
|
|
307,290 |
|
|
|
208,590 |
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STOCKHOLDERS’ EQUITY |
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||
Preferred stock, par value |
|
|
— |
|
|
|
— |
|
Common stock, par value |
|
|
2,374 |
|
|
|
2,374 |
|
Additional paid-in capital |
|
|
164,183 |
|
|
|
162,208 |
|
Retained earnings |
|
|
225,507 |
|
|
|
207,832 |
|
Less treasury stock, at cost – 2,585,769 and 2,386,699 shares at |
|
|
(97,528 |
) |
|
|
(88,641 |
) |
Accumulated other comprehensive loss |
|
|
(3,597 |
) |
|
|
(2,876 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
290,939 |
|
|
|
280,897 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
598,229 |
|
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$ |
489,487 |
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RECONCILIATIONS TO EBITDA |
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(In thousands) (Unaudited) |
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Three Months Ended |
|||||
|
|
|
|||||
|
|
2024 |
|
2023 |
|||
Net income, as reported |
|
$ |
12,018 |
|
$ |
15,239 |
|
Income tax expense (benefit) |
|
|
4,959 |
|
|
(3,214 |
) |
Depreciation |
|
|
489 |
|
|
687 |
|
Amortization of intangible assets |
|
|
98 |
|
|
121 |
|
EBITDA |
|
|
17,564 |
|
|
12,833 |
|
EBITDA of non-controlling interest |
|
|
— |
|
|
1,606 |
|
EBITDA attributable to the stockholders of |
|
$ |
17,564 |
|
$ |
11,227 |
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
||||
|
|
|
||||
|
|
2024 |
|
2023 |
||
Net income, as reported |
|
$ |
32,358 |
|
$ |
34,704 |
Income tax expense |
|
|
16,575 |
|
|
11,296 |
Depreciation |
|
|
2,013 |
|
|
2,983 |
Amortization of intangible assets |
|
|
392 |
|
|
732 |
EBITDA |
|
|
51,338 |
|
|
49,715 |
EBITDA of non-controlling interest |
|
|
— |
|
|
1,606 |
EBITDA attributable to the stockholders of |
|
$ |
51,338 |
|
$ |
48,109 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240411873945/en/
Company Contact:
301.315.0027
Investor Relations Contacts:
IMS Investor Relations
203.972.9200
Source: