Gemma Power Systems, LLC (Gemma Power), a wholly owned subsidiary of Argan, has contributed $202.3 million, or 91.6% of total revenues, in fiscal 2009 compared with $180.4 million, or 87.2% of total revenues in the previous year-end. Combined revenues from Argan’s other wholly-owned subsidiaries decreased to $18.6 million, or 8.4% of total revenues for fiscal 2009 compared with $26.4 million, or 12.8% of total revenues in the previous year-end.
Net revenues for the fourth quarter of fiscal 2009 were $56.0 million compared with $53.9 million in the year-ago quarter. Gemma Power contributed $51.3 million, or 91.6% of total revenues, for the fourth quarter of fiscal 2009 compared with $49.4 million, or 91.7% of total revenues in the year-ago quarter. Combined revenues for the fourth quarter of fiscal 2009 at Argan’s other wholly-owned subsidiaries increased to $4.7 million or 8.4% of total revenues from $4.5 million, or 8.3% of total revenues, in the year-ago quarter. Net income for the fourth quarter of fiscal 2009 was $5.0 million, or $0.37 per diluted share based on 13,626,000 diluted shares outstanding compared with a net loss of $565,000, or $0.05 per diluted share based on 11,105,000 diluted shares outstanding in the year-ago quarter.
The company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $19.6 million and $9.0 million, respectively, for the full year and for the fourth quarter of fiscal 2009.
On a segment basis, Gemma Power reported income before income taxes of $29.4 million for the fiscal year and $13.4 million for the fourth quarter of fiscal 2009.
Argan had cash of $74.7 million and escrowed cash of $10.0 million as of January 31, 2009. Consolidated working capital increased during the current year to around $53.6 million as of January 31, 2009 from around $16.5 million as of January 31, 2008.
The company’s backlog as of January 31, 2009 was $456 million.
Included in the backlog is Gemma Power’s engineering, procurement and construction agreement with Competitive Power Ventures (CPV), signed in October 2008 and valued at $211 million, to design and build eight simple cycle gas-fired peaking plants with a total power rating of 800 megawatts, to be situated in southern California. Additionally in the three months ended October 31, 2008, Gemma Power received a full notice to proceed from Pacific Gas & Electric on the design and construction of a natural gas-fired power plant in Colusa, California. The company previously said that it had signed an engineering, procurement and construction agreement for the Colusa project.
Gemma Power’s backlog does not include projects associated with Gemma Renewable Power, its business partnership with Invenergy Wind Management. At January 31, 2009, Gemma Renewable Power’s contract backlog was $30.8 million for a contract to design and build the expansion of a wind farm in LaSalle County, Illinois.
Commenting on Argan’s results, Rainer Bosselmann, chairman and chief executive officer stated, Argan delivered another strong performance in fiscal 2009. Our Gemma subsidiary, on a stand alone basis, reported increased EBITDA of $31.2 million from $16.8 million in the prior year and our backlog remains strong. Gemma continues to build its reputation as a leading designer and builder of power plants, and our energy agnostic approach positions Gemma to be a long term leader that can meet demand in this evolving marketplace.
Bosselmann continued, Energy is an important part of the new administration’s agenda in Washington and the power plants we build are necessary to generate the energy our country needs to operate on a daily basis. Furthermore, our involvement in the alternative and renewable energy sector via our wind power venture provides new business opportunities and also positions us well to benefit from public sentiment toward environmentally friendly energy generation.
