Argan, Inc. (Argan), a US-based provider of engineering, procurement and construction services to the power industry, has reported net revenues of $63.1 million for the first quarter of fiscal 2009, compared with the net revenues of $48.4 million in the year-ago quarter. It has also reported a net income of $2.97 million, or $0.22 per share, for the first quarter of fiscal 2009, compared with the net income of $1.5 million, or $0.14 per share, in the year-ago quarter.

Gemma Power Systems has contributed $58 million, or 92% of total revenues for the first quarter of fiscal 2010 compared to $44 million or 91% of total revenues for the first quarter of fiscal 2009. Combined revenues from Argan’s other wholly-owned subsidiaries increased to $5.1 million, or 8% of total revenues for the quarter ended April 30, 2009 compared to $4.4 million, or 9% of total revenues during the same period last year.

 

On a segment basis, Gemma reported income before income taxes of $6.1 million for the three months ended April 30, 2009 compared to $4 million for the three months ended April 30, 2008.

 

The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $5.1 million for the three months ended April 30, 2009.

 

Gemma, for its segment, recorded $6.3 million in EBITDA for the three months ended April 30, 2009.

 

Argan had consolidated cash of $57.9 million and escrowed cash of $10.0 million as of April 30, 2009. Consolidated working capital increased during the current quarter to around $56.1 million as of April 30, 2009 from around $53.6 million as of January 31, 2009.

 

Gemma’s backlog as of April 30, 2009 was $404 million.

 

Gemma’s most significant customer for the quarter ended April 30, 2009 was Pacific Gas & Electric, for the design and construction of a natural gas-fired power plant in Colusa, California whose contract is valued at around $364 million. Gemma also continued work on its project with Competitive Power Ventures for the design and construction of eight simple cycle gas-fired peaking plants with a total power rating of 800 megawatts, to be located in southern California.

 

Gemma’s backlog does not include projects associated with Gemma Renewable Power, its business partnership with Invenergy Wind Management. At April 30, 2009 Gemma Renewable Power’s contract backlog was $19 million for a contract to design and build the expansion of a wind farm in LaSalle County, Illinois.

 

Rainer Bosselmann, chairman and chief executive officer stated, “We are pleased to report increased net revenues, net income and EBITDA for the first quarter. Gemma has continued to prove itself as an industry leader in the design and construction of power plants, meeting the demand for traditional as well as alternative energy facilities. In recent months we have seen a renewed interest in gas-fired generation as electric utilities and independent power producers diversify their power generation options. In fact, our two current projects are the construction of gas-fired electricity generation plants and we expect that gas-fired plants, which are more efficient and produce fewer emissions than coal-fired power plants, will continue to be an important component of long-term power generation. Gemma has significant capabilities and expertise in the construction of gas-fired power plants which we believe will position us as a market leader for these projects.”

 

Bosselmann continued, “We anticipate that the increased political focus on energy independence and the negative environmental impact of fossil fuels may encourage the development of alternative and renewable power facilities and provide us with new power facility opportunities. An energy infrastructure renewal program is included in the recently passed stimulus package, making funds available for a variety of new energy transmission and distribution systems and alternative energy power sources, including tax incentives to promote capital investment in renewable energy sources. With our diverse capabilities we remain cautiously optimistic about our growth opportunities through these new opportunities.”