Slide 1: Argan, Inc.
AGAN, INC. June 2010 June 2011 October 2014
Slide 2: Disclaimer
Disclaimer All statements in this presentation that are not historical are forward- looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "could," "would,"
Slide 3: Investment Highlights
Investment Highlights Demonstrated track record of performance Substantial industry growth prospects Strong backlog and bidding pipeline Compelling financial characteristics Experienced management team
Slide 4: Company Overview
Company Overview Year founded - 1961 Headquarters - Rockville, MD Ticker - NYSE:AGX Market cap (10/02/14) - $524.97 million FY 2014 Revenue - $227.5 million FY 2014 EBITDA - $66.3 million YTD (07/31/14) Revenue - $153.2 million YTD (07/31/14) EBITDA - $19.4 million Employees - 619 [as of 9-22-14] Ba
Slide 5: Senior Management Team
Senior Management Team Rainer Bosselmann - Chairman and CEO Arthur Trudel - Chief Financial Officer Richard Deily - Corporate Controller Management has an established track record of creating value for the shareholders of Jupiter National, Inc. (AMEX:JPI), Arguss Communications, Inc. (NYSE:ACX) and
Slide 6: Senior Gemma Management Team
Senior Gemma Management Team William F. Griffin, Jr. - Co-Founder & Chief Executive Officer Daniel L. Martin - President Bill and Dan have more than 60 years combined experience in all facets of engineering, detailed design, procurement, construction management and other support services in the buil
Slide 7: Business Overview
Business Overview Gemma Power Systems ("GPS") - provides engineering, procurement and construction ("EPC") services to power generation and renewable energy markets GPS accounted for 98% of total revenues during the six months ended July 31, 2014 Southern Maryland Cable, Inc. ("SMC") - provides tele
Slide 8: Industry Growth Drivers
Industry Growth Drivers Substantial capacity additions will be required to meet rising electricity demand as the US economy continues to recover The retirement of older and inefficient plants and coal- fired generation facilities will further drive investment in new gas fired generation capacity
Slide 9: Overview of GPS
Overview of GPS Acquired by Argan - December 2006 Purchase price - $33.1 million $12.9 million in cash $20.2 million from issuance of 3.7 million shares Funded in part by $8.0 million secured four year amortizing term loan, which has been paid-in-full. Cumulative EBITDA since acquisition - $241 mill
Slide 10: Revenue and EBITDA Growth
Revenue and EBITDA Growth GPS's revenue and EBITDA have remained strong since the acquisition by Argan in December 2006 Revenue for Years Ended January 31 * Represents YTD July 2014 only (CHART) EBITDA for Years Ended January 31 * Represents YTD July 2014 only (CHART)
Slide 11: GPS Track Record
GPS Track Record More than 10,000 megawatts of generating capacity installed and under contract on an EPC basis More than 435 megawatts of wind power facility development More than 370 million gallons per year of installed renewable fuels capacity 36 major turnkey engineering, procurement and constr
Slide 12: National Footprint
National Footprint GPS has the ability to provide EPC services to customers throughout the United States Historical Project Locations States in which GPS has completed projects.
Slide 13: Extensive Project Portfolio
Extensive Project Portfolio Power facilities - simple cycle solution CPV Sentinel Energy Project A.L. Pierce Re-powering Project Vandolah Power Project DeSoto County Power Project Indigo Energy Facility Larkspur Energy Facility Richmond County Phase I Power Monroe Power Project Richland Peaking Proj
Slide 14: Current Projects: Panda Liberty Energy Project
Current Projects Panda Liberty Energy Project - Panda Liberty, LLC (previously named Moxie Liberty) - design and construction of natural gas-fired power plant in Bradford County, PA 825 MW natural gas-fired combined cycle electrical generating facility Joint venture with Lane Construction. Gemma's s
Slide 15: Current Projects: Panda Patriot Energy Project
Current Projects Panda Patriot Energy Project - Panda Patriot, LLC (previously named Moxie Patriot) - design and construction of natural gas-fired power plant in Lycoming County, PA 829 MW natural gas-fired combined cycle electrical generating facility Joint venture with Lane Construction. Gemma's s
Slide 16: Current Projects: East Texas Electric Cooperative
Current Projects East Texas Electric Cooperative, Inc. (ETEC) - Woodville, Texas - engineer-procure-construct (EPC) contract to design and build a 49.9 MW biomass-fired power plant. Contract Value: $167 million Commenced Project: May 2012 Scheduled Completion: December 2014
Slide 17: U.S. Natural Gas Development
U.S. Natural Gas Development Argan is participating in Marcellus Shale Region development activities with the object of developing large- scale power plants. The approach is to take principal positions in the initial stages of development, secure the rights for an EPC contract for the large scale po
Slide 18: Renewable Energy - Alternative Fuels
Renewable Energy - Alternative Fuels Gemma Power Systems (GPS) has accepted the assignment to design and build facilities to produce alternative fuels. To date, GPS has performed the process design, detail engineering, procurement and construction of more than 370 million gallons per year of install
Slide 19: Renewable Energy - Wind and Solar
Renewable Energy - Wind and Solar Gemma Renewable Power (GRP) is well positioned to respond to our clients' needs for the installation of wind and solar projects throughout North America. GRP's integrated team of experienced professionals provides all the following elements of a turnkey installation
Slide 20: Competitive Landscape
Competitive Landscape Larger Projects / Traditional Fuels Smaller Projects / Alternative Fuels
Slide 21: Growth Strategy
Growth Strategy Establish additional strategic alliances in the EPC space Make additional strategic acquisitions that complement our unique market position Exploit long-term relationships throughout the industry to aggressively build backlog of traditional and renewable energy projects Make strategi
Slide 22: Backlog
Backlog Argan has significant contract backlog Historical Contract Backlog as of January 31 * * * 2009 2010 2011 2012 2013 July 31 2014 2014
Slide 23: Investment Summary
Investment Summary Demonstrated track record of performance Substantial industry growth prospects Strong backlog and bidding pipeline Compelling financial characteristics Experienced management team
Slide 24: Financials: Consolidated Statements of Operations
Financials Consolidated Statements of Operations Three Months Ended July 31, Three Months Ended July 31, Three Months Ended July 31, Three Months Ended July 31, Three Months Ended July 31, Three Months Ended July 31, Three Months Ended July 31, Six Months Ended July 31, Six Months Ended July 31, Six
Slide 25: Financials: Consolidated Statements of Operations, continued
Financials Consolidated Statements of Operations, continued Earnings (loss) per share attributable to the stockholders of Argan: Basic $ 0.59 $ 0.90 $ 0.84 $ 1.36 Diluted $ 0.58 $ 0.89 $ 0.82 $ 1.35 Weighted Average of Shares Outstanding Basic 14,399,000 13,997,000 14,350,000 13,986,000 Diluted 14,6
Slide 26: Reconciliation to EBITDA - Power Industry Services
Financials Reconciliation to EBITDA - Power Industry Services Reconciliation to EBITDA - Power Industry Services Reconciliation to EBITDA - Power Industry Services Six Months Ended October 31, Six Months Ended October 31, Six Months Ended October 31, Six Months Ended October 31, Six Months Ended Oct
Slide 27: Reconciliation to EBITDA - Argan, Inc. Stockholders
Financials Reconciliation to EBITDA - Argan, Inc. Stockholders Reconciliation to EBITDA - Argan, Inc. Stockholders Reconciliation to EBITDA - Argan, Inc. Stockholders
Slide 28: Consolidated Balance Sheets - July 31, 2014 & January 31, 2014
Financials Consolidated Balance Sheets - July 31, 2014 & January 31, 2014 Consolidated Balance Sheets - July 31, 2014 & January 31, 2014 Consolidated Balance Sheets - July 31, 2014 & January 31, 2014
Slide 29: Consolidated Balance Sheets, continued
Financials Consolidated Balance Sheets, continued - July 31, 2014 & January 31, 2014 Consolidated Balance Sheets, continued - July 31, 2014 & January 31, 2014 Consolidated Balance Sheets, continued - July 31, 2014 & January 31, 2014 July 31, 2014 January 31, 2014 (Unaudited) (Note 1)
Slide 30: Infrastructure Services Peer Group
Infrastructure Services Peer Group Infrastructure Services Peer Group