Argan, Inc. · NYSE:AGX
Argan — Investor Presentation (October 2013)
29 slides from Argan's investor presentation, Oct 22, 2013
Slide 1: Argan, Inc.
AGAN, INC. June 2010 June 2011 October 2013
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 (10/01/13) - $302 million FY 2013 Revenue - $279 million FY 2013 EBITDA - $37 million YTD (7/31/13) Revenue - $105 million YTD (7/31/13) EBITDA - $33 million Employees - 400 Backlog at 7/31/13 - $465 milli
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 96% of total revenues during the six months ended July 31, 2013 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. Services - engineering, procurement and constru
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 2013 only 2006 2007 2008 2009 2010 2011 2012 FY2013 *YTD July 2013 Full Time 48.6 134.4 180.4 202.3 209.8 174.9 132.5 261.3
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
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
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 16: 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 17: 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 18: 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 19: Competitive Landscape
Competitive Landscape Larger Projects / Traditional Fuels Smaller Projects / Alternative Fuels
Slide 20: 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 21: Backlog
Backlog Argan has significant contract backlog Historical Contract Backlog as of January 31 * * * 2007 2008 2009 2010 2011 2012 2013 Jul 31 2013
Slide 22: 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 23: 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, Six Months Ended July 31, Six Months Ended July 31, Six Months Ended July 31, Six Months Ended July 31, Six Mon
Slide 24: Financials: Consolidated Statements of Operations, continued
Financials Consolidated Statements of Operations, continued 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 Months Ended July 31 Six Months Ended July 31 Six M
Slide 25: 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
Slide 26: Reconciliation to EBITDA - Continuing Operations
Financials Reconciliation to EBITDA - Continuing Operations Reconciliation to EBITDA - Continuing Operations Reconciliation to EBITDA - Continuing Operations
Slide 27: Consolidated Balance Sheets - July 31, 2013 & January 31, 2013
Financials Consolidated Balance Sheets - July 31, 2013 & January 31, 2013 Consolidated Balance Sheets - July 31, 2013 & January 31, 2013 Consolidated Balance Sheets - July 31, 2013 & January 31, 2013
Slide 28: Consolidated Balance Sheets, continued
Financials Consolidated Balance Sheets, continued - July 31, 2013 & January 31, 2013 Consolidated Balance Sheets, continued - July 31, 2013 & January 31, 2013 Consolidated Balance Sheets, continued - July 31, 2013 & January 31, 2013
Slide 29: Infrastructure Services Peer Group
Infrastructure Services Peer Group Infrastructure Services Peer Group