UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of Earliest Event Reported):
(Exact Name of Registrant as Specified in its Charter)
|
| |||
(State or Other Jurisdiction of Incorporation) |
| (Commission File Number) |
| (IRS Employer Identification No.) |
| ||
(Address of Principal Executive Offices) |
| (Zip Code) |
Registrant’s telephone number, including area code: (
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Title of Each Class: | Trading Symbol(s): | Name of Each Exchange on | ||
Item 8.01. Other Events
Share Repurchase Plan
On January 24, 2022, Argan, Inc. (“Argan” or the “Company”) announced that its Board of Directors approved an increase in the Company’s existing share repurchase program, from $25 million to $50 million, to acquire shares of the Company's Common Stock. The Company has repurchased shares at a cost of approximately $18 million under the authorization to-date.
Development Investment Impairment
In 2018, the Company was deemed to be the primary beneficiary of a variable interest entity (“VIE”) that is performing project development activities related to the planned construction of a new natural gas-fired power plant, and has since included the activities of the VIE in its consolidated financial statements. The Company has provided engineering and financial support to the project totaling $7.5 million, including development costs incurred by the project VIE. Recovery of the Company’s investment has been predicated on the successful completion of all project development efforts, of which the most significant current hurdle has been establishment of a fuel-supply source for the plant. The Company has determined that it will not provide additional financial support to develop the project. Lack of progress on fuel supply issues has significantly diminished the likelihood of the project to achieve its remaining development milestones including the arrangement of financing for the project. Accordingly, the Company will record a pre-tax impairment loss related to the investment in an amount estimated to range between $6.5 million to $8.3 million in January 2022, of which approximately $2.0 million is attributable to its consolidated VIE.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. |
| Description |
99.1 |
| |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
| ARGAN, INC. | ||||
Date: January 24, 2022 |
|
| By: |
| /s/ David H. Watson | |
|
|
| David H. Watson | |||
|
|
| Senior Vice President, Chief Financial Officer, Treasurer and Secretary |
Exhibit 99.1
ARGAN, INC. ANNOUNCES INCREASE TO SHARE REPURCHASE PROGRAM
January 24, 2022 – ROCKVILLE, MD – Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces that its Board of Directors approved an increase in the Company's existing share repurchase program, from $25 million to $50 million, to acquire shares of the Company's Common Stock. The Company has repurchased shares at a cost of approximately $18 million under the authorization to-date.
“Delivering value to our customers and stockholders is our top priority. We are committed to a disciplined capital allocation strategy that balances returning capital to our stockholders and investing in our business and people,” said Rainer Bosselmann, Argan’s Chairman and Chief Executive Officer. “Over the past two months, we have repurchased $18 million of shares, and over the past two years, we have distributed dividends of approximately $63 million, while at the same time building our cash and net liquidity. As a result, with the meaningful free cash flow from our business, we expect to maintain share repurchasing as an opportunistic part of our capital allocation strategy.”
The Board’s authorization permits the Company to make purchases of its Common Stock from time to time in the open market or through privately negotiated transactions, subject to market and other conditions, up to the aggregate amount authorized by the Board. The Board’s authorization allows the repurchase of shares through January 2024.
About Argan, Inc.
Argan’s primary business is providing a full range of services to the power industry including the renewable energy sector. Argan’s service offerings focus primarily on the engineering, procurement and construction of natural gas-fired power plants, along with related commissioning, operations management, maintenance, project development and consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns SMC Infrastructure Solutions, which provides telecommunications infrastructure services, and The Roberts Company, which is a fully integrated fabrication, construction and industrial plant services company.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to, the Company’s successful addition of new contracts to project backlog, the Company’s receipt of corresponding notices to proceed with contract activities and the Company’s ability to successfully complete the projects that it obtains. The Company has entered into several EPC contracts that have not started and may not start as planned due to market and other circumstances out of the Company’s control. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements
due to a number of factors detailed from time to time in Argan’s filings with the SEC. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Forms 10-K and 10-Q, and in other SEC filings.
Company Contact: |
| Investor Relations Contact: |
Rainer Bosselmann |
| David Watson |
301.315.0027 |
| 301.315.0027 |
Document and Entity Information |
Jan. 24, 2022 |
---|---|
Document and Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jan. 24, 2022 |
Entity File Number | 001-31756 |
Entity Registrant Name | ARGAN, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-1947195 |
Entity Address, Address Line One | One Church Street |
Entity Address, Adress Line Two | Suite 201 |
Entity Address, City or Town | Rockville |
Entity Address, State or Province | MD |
Entity Address, Postal Zip Code | 20850 |
City Area Code | 301 |
Local Phone Number | 315-0027 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.15 Par Value |
Trading Symbol | AGX |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000100591 |
Amendment Flag | false |
M-8?20$3;8T.P6BP^0"X99K>]9!:G
_ 5!+ P04 " #F@3A4?X 4/B<8 #7Q0 $P &%G>"TR,#(R,#$R
M-'@X:RYH=&WM/>M3XLZRWV_5_1_F>G[G[&Z5A"2$IZZG$%%9%5W!Q^X7:I),
M8#0D.$EX^-??GDD" 7%]HN)BE4K(9![]GNZ>SN9_AUT;]0GSJ.M\_Z)(\A=$
M',,UJ=/^_N6LN9LJ?/GOUO\@^!%_$-K\OU0*T