Argan Inc 10-K for FY2020

Argan Inc (AGX)

10-K 2020-04-14 For: 2020-01-31

Added on April 04, 2026

About this 10-K

Argan Inc filed this 10-K on April 14, 2020, covering the fiscal year ended January 31, 2020 (FY2020).

Headline figures

Fiscal year ended January 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $239M; down 50.4% from $482.15M a year earlier
Net loss: $42.69M; compared with net income of $52.04M a year earlier
Diluted EPS: -$2.73; compared with $3.32 a year earlier

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Delaware		13-1947195
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)

One Church Street, Suite 201, Rockville, Maryland		20850
(Address of Principal Executive Offices)		(Zip Code)

		Name of Each Exchange
Title of Each Class		on Which Registered
Common Stock, $0.15 par value		NYSE

		page
paRT i
ITEM 1.	BUSINESS	- 3 -
ITEM 1A.	RISK FACTORS	- 10 -
ITEM 1B.	UNRESOLVED STAFF COMMENTS	- 25 -
ITEM 2.	PROPERTIES	- 25 -
ITEM 3.	LEGAL PROCEEDINGS	- 26 -
PART II
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS and issuer purchases of equity securities	- 26 -
ITEM 6.	SELECTED FINANCIAL DATA	- 29 -
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FININCIAL CONDITION AND RESULTS Of OPERATIONS	- 30 -
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	- 47 -
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	- 48 -
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	- 48 -
ITEM 9A.	CONTROLS AND PROCEDURES	- 48 -
ITEM 9B.	OTHER INFORMATION	- 49 -
PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	- 50 -
ITEM 11.	EXECUTIVE COMPENSATION	- 50 -
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT, AND related stockholder matters	- 50 -
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	- 50 -
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	- 50 -
PART IV
ITEM 15.	EXHIBITS and financial statements	- 51 -
SIGNATURES		- 52 -

	•		the assessment of the value of goodwill and recoverability of other purchased intangible assets;
	•		the determination of provisions for income taxes, the accounting for uncertain income tax positions and the establishment of valuation allowances associated with deferred income tax assets;
	•		the determination of the fair value of stock-based incentive awards;
	•		the identification of the primary beneficiary of entities in which we may have variable interests;
	•		accruals for estimated liabilities, including warranties and losses and expenses related to legal matters; and
	•		the initial valuation of assets acquired and liabilities assumed in connection with business combinations.

	•		delays in the scheduled deliveries of machinery and equipment ordered by us or a project owner;
	•		difficulties or delays in our obtaining permits, rights of way or approvals;
	•		unanticipated technical problems, including design or engineering issues;
	•		inadequate project execution tools for recording, tracking, forecasting and controlling future costs and schedules;
	•		unforeseen increases in the costs of labor, warranties, raw materials, components or equipment, or our failure or inability to obtain resources when needed;
	•		reliance on historical cost and/or execution data that is not representative of current conditions;
	•		delays or productivity issues caused by weather conditions, or other forces majeure (i.e., pandemics);
	•		incorrect assumptions related to labor productivity, scheduling estimates or future economic conditions, including the impacts of inflation on fixed-price contracts; and
	•		modifications to projects that create unanticipated costs or delays.

	•		diversion of management’s attention from other important operational matters;
	•		difficulties integrating the operations and personnel of acquired companies;
	•		inability to retain key personnel of acquired companies;
	•		risks associated with unanticipated events or liabilities;
	•		the potential disruptions to our current business;
	•		unforeseen difficulties in the maintenance of uniform standards, controls, procedures and policies, including an effective system of internal control over financial reporting; and
	•		impairment losses related to acquired goodwill and other intangible assets.

	Years Ended January 31,
	2015		2016		2017		2018		2019		2020
Argan, Inc.		100.00		101.01		251.83		151.12		150.06		153.21
S&P 500		100.00		99.33		119.24		150.73		147.24		179.17
Dow Jones US Heavy Civil Construction TSM		100.00		92.93		133.02		145.69		114.42		131.91

	Number of Securities Issuable under Outstanding Options		Weighted Average Exercise Price of Outstanding Options		Number of Securities Remaining Available for Future Issuance ⁽¹⁾
Equity Compensation Plans Approved by the Stockholders ⁽²⁾		1,271,567	$	44.83		381,833
Equity Compensation Plans Not Approved by the Stockholders		—		—		—
Totals		1,271,567	$	44.83		381,833

	For the Years Ended January 31,
	2020			2019			2018			2017			2016
Statement of Earnings Data
Revenues	$	238,997		$	482,153		$	892,815		$	675,047		$	413,275
Gross (loss) profit		(6,820	)		82,438			149,325			146,711			99,465
Gross (loss) profit %		(2.9	)%		17.1	%		16.7	%		21.7	%		24.1	%

(Loss) income from operations	$	(55,840	)	$	40,237		$	106,977		$	112,254		$	74,405
Net (loss) income		(40,712	)		51,869			72,346			77,426			50,204
Net (loss) income attributable to our stockholders ⁽¹⁾		(42,689	)		52,036			72,011			70,328			36,345

(Loss) income per share attributable to our stockholders
Basic	$	(2.73	)	$	3.34		$	4.64		$	4.67		$	2.46
Diluted		(2.73	)		3.32			4.56			4.50			2.42
Cash dividends per share		1.00			1.00			1.00			1.00			0.70

	As of January 31,
	2020		2019		2018		2017		2016
Balance Sheet Data ⁽²⁾
Total assets	$	487,540	$	476,648	$	542,669	$	644,488	$	409,791
Total liabilities		146,510		82,276		184,541		351,919		187,936
Total equity		341,030		394,372		358,128		292,569		221,855

Other Data
Project backlog	$	1,333,776	$	1,093,960	$	379,486	$	1,010,772	$	1,162,569
Number of employees		1,154		1,487		1,552		1,286		1,188

	Amount of Commitment Expiration per Period
	Less Than						Over 5		Total
Contractual Obligations	One Year		2-3 Years		4-5 Years		Years		Commitment
Operating leases	$	1,239	$	885	$	204	$	—	$	2,328
Purchase commitments ⁽¹⁾		1,589		343		—		—		1,932

Totals	$	2,828	$	1,228	$	204	$	—	$	4,260

	2020			2019
Net (loss) income, as reported	$	(40,712	)	$	51,869
Interest expense		—			659
Income tax benefit		(7,053	)		(4,651	)
Depreciation		3,513			3,422
Amortization of purchased intangible assets		1,136			1,012
EBITDA		(43,116	)		52,311
EBITDA of noncontrolling interests		1,977			(167	)
EBITDA attributable to the stockholders of Argan, Inc.	$	(45,093	)	$	52,478

Basis Point Change	Increase (Decrease) in Interest Income			Increase (Decrease) in Interest Expense		Net Increase (Decrease) in Earnings (pre-tax)
Up 300 basis points	$	1,378		$	—	$	1,378
Up 200 basis points		919			—		919
Up 100 basis points		459			—		459
Down 100 basis points		(459	)		—		(459	)
Down 180 basis points		(808	)		—		(808	)

Exhibit No.		Description
3.1		Certificate of Incorporation, as amended. Incorporated by reference to Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K filed on April 10, 2019.
3.2		Bylaws. Incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K filed on April 15, 2009.
4		Description of Registrant’s Securities. ^(a)
10.1		Argan, Inc. 2011 Stock Plan (Revised as of 4-10-18). Incorporated by reference to the Registrant’s Proxy Statement filed on Schedule 14A on May 7, 2018.
10.2		Employment Agreement dated as of January 3, 2005 by and between Argan, Inc. and Rainer H. Bosselmann. Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on January 5, 2005.
10.3		Employment Agreement dated as of October 13, 2015 by and between Argan, Inc. and David H. Watson. Incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on December 10, 2015.
10.4		Third Amended and Restated Employment Agreement, dated November 15, 2019, by and among Gemma Power Systems, LLC, Gemma Power, Inc., Gemma Power Systems California, Inc., Gemma Power Hartford, LLC, Gemma Renewable Power, LLC, Gemma Power Operations, LLC and William F. Griffin, Jr. Incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on December 10, 2019.
10.5		Employment Agreement, dated November 15, 2019, by and among Gemma Power Systems, LLC, Gemma Power, Inc., Gemma Power Systems California, Inc., Gemma Power Hartford, LLC, Gemma Renewable Power, LLC, Gemma Power Operations, LLC and Charles Collins IV. Incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on December 10, 2019.
10.6		Employment Agreement, dated November 15, 2019, by and among Gemma Power Systems, LLC, Gemma Power, Inc., Gemma Power Systems California, Inc., Gemma Power Hartford, LLC, Gemma Renewable Power, LLC, Gemma Power Operations, LLC and Terrence Trebilcock. Incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q filed on December 10, 2019.
10.7		Replacement Credit Agreement, dated August 10, 2015, among Argan, Inc. (and certain subsidiaries of Argan, Inc.) and Bank of America, N.A. Incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on December 10, 2015.
10.6		Deferred Compensation Plan, adopted by Gemma Power Systems, LLC, effective as of April 6, 2017. Incorporated by reference to Exhibit 10.7 of the Registrant’s Annual Report on Form 10-K filed on April 11, 2017.
14.1		Code of Ethics. Incorporated by reference to the Registrant’s Annual Report on Form 10-KSB filed on April 27, 2004.
14.2		Argan, Inc. Code of Conduct (Amended January 2007). Incorporated by reference to the Registrant’s Annual Report on Form 10-KSB filed on April 26, 2007.
21		Subsidiaries of the Company. Incorporated by reference to Exhibit 21 to the Registrant’s Annual Report on Form 10-K filed on April 10, 2019.
23.1		Consent of Grant Thornton LLP, Independent Registered Public Accounting Firm. ^(a)
31.1		Certification of CEO required by Section 302 of the Sarbanes-Oxley Act of 2002. ^(a)
31.2		Certification of CFO required by Section 302 of the Sarbanes-Oxley Act of 2002. ^(a)
32.1		Certification of CEO required by Section 906 of the Sarbanes-Oxley Act of 2002. ^(a)
32.2		Certification of CFO required by Section 906 of the Sarbanes-Oxley Act of 2002. ^(a)

	Years Ended January 31,
	2020			2019			$ Change			% Change
REVENUES
Power industry services	$	135,729		$	367,812		$	(232,083	)		(63.1	)%
Industrial fabrication and field services		94,682			101,673			(6,991	)		(6.9	)
Telecommunications infrastructure services		8,586			12,668			(4,082	)		(32.2	)
Revenues		238,997			482,153			(243,156	)		(50.4	)
COST OF REVENUES
Power industry services		152,854			297,931			(145,077	)		(48.7	)
Industrial fabrication and field services		85,859			92,097			(6,238	)		(6.8	)
Telecommunications infrastructure services		7,104			9,687			(2,583	)		(26.7	)
Cost of revenues		245,817			399,715			(153,898	)		(38.5	)
GROSS (LOSS) PROFIT		(6,820	)		82,438			(89,258	)		N/M
Selling, general and administrative expenses		44,125			40,710			3,415			8.4
Impairment losses		4,895			1,491			3,404			228.3
(LOSS) INCOME FROM OPERATIONS		(55,840	)		40,237			(96,077	)		N/M
Other income, net		8,075			6,981			1,094			15.7
(LOSS) INCOME BEFORE INCOME TAXES		(47,765	)		47,218			(94,983	)		N/M
Income tax benefit		7,053			4,651			2,402			51.6
NET (LOSS) INCOME		(40,712	)		51,869			(92,581	)		N/M
Net income (loss) attributable to non-controlling interests		1,977			(167	)		2,144			N/M
NET (LOSS) INCOME ATTRIBUTABLE TO
THE STOCKHOLDERS OF ARGAN, INC.	$	(42,689	)	$	52,036		$	(94,725	)		N/M	%

	2020			2019
EBITDA	$	(43,116	)	$	52,311
Current income tax benefit		413			2,512
Impairment losses		4,895			1,491
Interest expense		—			(659	)
Stock option compensation expense		2,131			1,645
Other noncash items		1,179			(996	)
Changes in accrued interest on short-term investments		714			695
Increase in accounts receivable		(1,038	)		(10,200	)
(Decrease) increase in other assets		2,357			(15,160	)
Decrease in accounts payable and accrued expenses		(3,284	)		(60,187	)
Change in contracts in progress, net		89,314			(83,774	)
Net cash provided by (used in) operating activities	$	53,565		$	(112,322	)

101.INS#		XBRL Instance Document. ^(a)
101.SCH#		XBRL Schema Document. ^(a)
101.CAL#		XBRL Calculation Linkbase Document. ^(a)
101.LAB#		XBRL Labels Linkbase Document. ^(a)
101.PRE#		XBRL Presentation Linkbase Document. ^(a)
101.DEF#		XBRL Definition Linkbase Document. ^(a)

	ARGAN, INC.

April 14, 2020	By:	/s/ David H. Watson
		David H. Watson
		Senior Vice President, Chief Financial Officer, Treasurer and Secretary
		(Principal Accounting and Financial Officer)

Name	Title	Date

/s/ Rainer H. Bosselmann	Chairman of the Board and Chief Executive Officer	April 14, 2020
Rainer H. Bosselmann	(Principal Executive Officer)

/s/ Cynthia A. Flanders	Director	April 14, 2020
Cynthia A. Flanders

/s/ Peter W. Getsinger	Director	April 14, 2020
Peter W. Getsinger

/s/ William F. Griffin	Director	April 14, 2020
William F. Griffin

/s/ John R. Jeffrey	Director	April 14, 2020
John R. Jeffrey

/s/ Mano Koilpillai	Director	April 14, 2020
Mano Koilpillai

/s/ William F. Leimkuhler	Director	April 14, 2020
William F. Leimkuhler

/s/ W. G. Champion Mitchell	Director	April 14, 2020
W. G. Champion Mitchell

/s/ James W. Quinn	Director	April 14, 2020
James W. Quinn

		Page No.
Reports of Grant Thornton LLP, Independent Registered Public Accounting Firm		- 54 -

Consolidated Statements of Earnings for the years ended January 31, 2020, 2019 and 2018		- 56 -

Consolidated Balance Sheets as of January 31, 2020 and 2019		- 57 -

Consolidated Statements of Stockholders’ Equity for the years ended January 31, 2020, 2019 and 2018		- 58 -

Consolidated Statements of Cash Flows for the years ended January 31, 2020, 2019 and 2018		- 59 -

Notes to Consolidated Financial Statements		- 60 -

	2020			2019
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	167,363		$	164,318
Short-term investments		160,499			132,213
Accounts receivable, net		37,192			36,174
Contract assets		33,379			58,357
Other current assets		23,322			25,286
TOTAL CURRENT ASSETS		421,755			416,348
Property, plant and equipment, net		22,539			19,778
Goodwill		27,943			32,838
Other purchased intangible assets, net		5,001			6,137
Deferred taxes		7,894			1,257
Right-of-use and other assets (Note 10)		2,408			290
TOTAL ASSETS	$	487,540		$	476,648
LIABILITIES AND EQUITY CURRENT LIABILITIES
Accounts payable	$	35,442		$	39,870
Accrued expenses (Notes 4, 10 and 13)		35,907			33,097
Contract liabilities		72,685			8,349
TOTAL CURRENT LIABILITIES		144,034			81,316
Other noncurrent liabilities (Note 10)		2,476			960
TOTAL LIABILITIES		146,510			82,276

COMMITMENTS AND CONTINGENCIES (Notes 10 and 11)

STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.10 per share – 500,000 shares authorized; no shares issued and outstanding		—			—
Common stock, par value $0.15 per share – 30,000,000 shares authorized; 15,638,202 and 15,577,102 shares issued at January 31, 2020 and 2019, respectively; 15,634,969 and 15,573,869 shares outstanding at January 31, 2020 and 2019, respectively		2,346			2,337
Additional paid-in capital		148,713			144,961
Retained earnings		189,306			247,616
Accumulated other comprehensive loss		(1,116	)		(346	)
TOTAL STOCKHOLDERS’ EQUITY		339,249			394,568
Non-controlling interests		1,781			(196	)
TOTAL EQUITY		341,030			394,372
TOTAL LIABILITIES AND EQUITY	$	487,540		$	476,648

	Common Stock				Additional					Accumulated
	Outstanding Shares		Par Value		Paid-in Capital		Retained Earnings			Other Comprehensive (Loss) Gain			Non-controlling Interests			Total Equity
Balances, February 1, 2017		15,458,219	$	2,319	$	135,426	$	154,649		$	(762	)	$	937		$	292,569
Net income		—		—		—		72,011			—			335			72,346
Foreign currency translation gain		—		—		—		—			2,184			—			2,184
Stock compensation expense		—		—		4,651		—			—			—			4,651
Stock option exercises		109,500		17		3,138		—			—			—			3,155
Cash distributions to joint venture partner		—		—		—		—			—			(1,229	)		(1,229	)
Cash dividends		—		—		—		(15,548	)		—			—			(15,548	)

Balances, January 31, 2018		15,567,719		2,336		143,215		211,112			1,422			43			358,128
Adoption of ASC Topic 606		—		—		—		38			—			—			38
Net income (loss)		—		—		—		52,036			—			(167	)		51,869
Foreign currency translation loss		—		—		—		—			(1,768	)		—			(1,768	)
Stock compensation expense		—		—		1,645		—			—			—			1,645
Stock option exercises		6,150		1		101		—			—			—			102
Cash distributions to joint venture partner		—		—		—		—			—			(72	)		(72	)
Cash dividends		—		—		—		(15,570	)		—			—			(15,570	)

Balances, January 31, 2019		15,573,869		2,337		144,961		247,616			(346	)		(196	)		394,372
Net (loss) income		—		—		—		(42,689	)		—			1,977			(40,712	)
Foreign currency translation loss		—		—		——		—			(770	)		—			(770	)
Stock compensation expense		—		—		2,131		——			—			—			2,131
Stock option exercises		61,100		9		1,621		——			—			—			1,630
Cash dividends		—		—		—		(15,621	)		—			——			(15,621	)
Balances, January 31, 2020		15,634,969	$	2,346	$	148,713	$	189,306		$	(1,116	)	$	1,781		$	341,030

	GPS		TRC			APC			Totals
Balances, February 1, 2017	$	18,476	$	14,365		$	2,072		$	34,913
Impairment loss		—		(584	)		—			(584	)
Balances, January 31, 2018		18,476		13,781			2,072			34,329
Impairment loss		—		(1,491	)		—			(1,491	)
Balances, January 31, 2019		18,476		12,290			2,072			32,838
Impairment losses		—		(2,823	)		(2,072	)		(4,895	)
Balances, January 31, 2020	$	18,476	$	9,467		$	—		$	27,943

		2020						2019
	Estimated Useful Life	Gross Amounts		Accumulated Amortization		Net Amounts		Net Amounts
Trade names
TRC	15 years	$	4,499	$	1,250	$	3,249	$	3,549
GPS	15 years		3,643		3,193		450		694
SMC	—		181		181		—		181
Process certifications	7 years		1,897		1,129		768		1,039
Customer relationships	4-10 years		1,346		812		534		674
Totals		$	11,566	$	6,565	$	5,001	$	6,137

2021	$	905
2022		870
2023		617
2024		392
2025		391
Thereafter		1,826
Total	$	5,001

	2020		2019
Land and improvements	$	863	$	863
Building and improvements		5,696		6,000
Furniture, machinery and equipment		18,900		17,779
Trucks and other vehicles		5,213		4,918
Project development costs (Note 3)		6,853		2,149
		37,525		31,709
Less - accumulated depreciation		14,986		11,931
Property, plant and equipment, net	$	22,539	$	19,778

Years ending January 31,
2021	$	1,239
2022		639
2023		246
2024		179
2025		25
Total lease payments		2,328
Less interest portion		118
Present value of lease payments		2,210
Less current portion (included in accrued expenses)		1,574
Non-current portion	$	636

	Shares			Exercise Price		Remaining Term (years)		Fair Value
Outstanding, February 1, 2017		707		$	39.04		7.82	$	10.22
Granted		302		$	53.49
Exercised		(110	)	$	28.81
Forfeited		(10	)	$	71.75
Outstanding, January 31, 2018		889		$	44.83		7.91	$	11.74
Granted		257		$	40.54
Exercised		(6	)	$	17.19
Outstanding, January 31, 2019		1,140		$	44.01		7.54	$	11.22
Granted		238		$	44.76
Exercised		(61	)	$	26.67
Forfeited		(46	)	$	48.47
Outstanding, January 31, 2020		1,271		$	44.83		7.18	$	11.06

Exercisable, January 31, 2020		823		$	45.58		6.20	$	11.78

	Shares			Fair Value
Non-vested, February 1, 2017		270		$	14.93
Granted		302		$	13.55
Vested		(260	)	$	15.31
Forfeitures		(10	)	$	19.14
Non-vested, January 31, 2018		302		$	13.55
Granted		257		$	9.31
Vested		(184	)	$	14.75
Non-vested, January 31, 2019		375		$	10.05
Granted		238		$	9.60
Vested		(134	)	$	10.25
Forfeitures		(31	)	$	10.28
Non-vested, January 31, 2020		448		$	9.74

	2020			2019
Assets:
Net operating loss carryforwards	$	22,683		$	8,228
Stock awards		2,367			2,188
Research and development credit carryforwards		134			631
Purchased intangibles		415			604
Accrued expenses and other		994			758
		26,593			12,409
Liabilities:
Purchased intangibles		(3,317	)		(3,373	)
Construction contracts		(1,618	)		(454	)
Property and equipment		(1,983	)		(1,986	)
Other		(193	)		(145	)
		(7,111	)		(5,958	)
Valuation Allowances		(11,588	)		(5,194	)
Deferred tax assets	$	7,894		$	1,257

Year Ended January 31, 2020
	Power Services			Industrial Services			Telecom Services			Other			Totals
Revenues	$	135,729		$	94,682		$	8,586		$	—		$	238,997
Cost of revenues		152,854			85,859			7,104			—			245,817
Gross (loss) profit		(17,125	)		8,823			1,482			—			(6,820	)
Selling, general and administrative expenses		26,835			7,810			2,135			7,345			44,125
Impairment losses		2,072			2,823			—			—			4,895
Loss from operations		(46,032	)		(1,810	)		(653	)		(7,345	)		(55,840	)
Other income, net		7,535			—			—			540			8,075
Loss before income taxes	$	(38,497	)	$	(1,810	)	$	(653	)	$	(6,805	)		(47,765	)
Income tax benefit														7,053
Net loss													$	(40,712	)

Depreciation	$	694		$	2,418		$	396		$	5		$	3,513
Amortization of intangibles		291			664			181			—			1,136
Property, plant and equipment additions		5,069			1,638			340			11			7,058

Current assets	$	320,257		$	21,766		$	2,938		$	76,794		$	421,755
Current liabilities		135,518			6,441			796			1,279			144,034
Goodwill		18,476			9,467			—			—			27,943
Total assets		352,034			46,321			4,549			84,636			487,540

Year Ended January 31, 2019
	Power Services		Industrial Services		Telecom Services		Other			Totals
Revenues	$	367,812	$	101,673	$	12,668	$	—		$	482,153
Cost of revenues		297,931		92,097		9,687		—			399,715
Gross profit		69,881		9,576		2,981		—			82,438
Selling, general and administrative expenses		23,741		7,904		1,788		7,277			40,710
Impairment loss		—		1,491		—		—			1,491
Income (loss) from operations		46,140		181		1,193		(7,277	)		40,237
Other income, net		5,120		1,400		—		461			6,981
Income (loss) before income taxes	$	51,260	$	1,581	$	1,193	$	(6,816	)		47,218
Income tax benefit											4,651
Net income										$	51,869

Depreciation	$	749	$	2,293	$	366	$	14		$	3,422
Amortization of intangibles		350		662		—		—			1,012
Property, plant and equipment additions		3,156		4,750		690		3			8,599

Current assets	$	317,708	$	28,878	$	3,691	$	66,071		$	416,348
Current liabilities		66,085		13,384		879		968			81,316
Goodwill		20,548		12,290		—		—			32,838
Total assets		347,189		57,168		5,272		67,019			476,648

Year Ended January 31, 2018
	Power Services		Industrial Services			Telecom Services		Other			Totals
Revenues	$	814,544	$	65,303		$	12,968	$	—		$	892,815
Cost of revenues		675,362		58,283			9,845		—			743,490
Gross profit		139,182		7,020			3,123		—			149,325
Selling, general and administrative expenses		23,356		7,401			1,395		9,612			41,764
Impairment loss		—		584			—		—			584
Income (loss) from operations		115,826		(965	)		1,728		(9,612	)		106,977
Other income, net		5,391		—			—		257			5,648
Income (loss) before income taxes	$	121,217	$	(965	)	$	1,728	$	(9,355	)		112,625
Income tax expense												(40,279	)
Net income											$	72,346

Depreciation	$	885	$	1,607		$	274	$	13		$	2,779
Amortization of intangibles		350		682			—		—			1,032
Property, plant and equipment additions		1,362		2,837			625		2			4,826

Goodwill	$	20,548	$	13,781		$	—	$	—		$	34,329
Total assets		432,932		44,849			4,873		60,015			542,669

2020	April 30⁽³⁾			July 31⁽³⁾			October 31			January 31⁽³⁾			Full Year
Revenues	$	49,544		$	63,059		$	58,406		$	67,988		$	238,997
Gross (loss) profit		(21,026	)		2,965			5,992			5,249			(6,820	)
Loss from operations		(32,686	)		(7,073	)		(6,143	)		(9,938	)		(55,840	)
Net (loss) income ⁽¹⁾		(29,800	)		1,154			(6,855	)		(7,188	)		(42,689	)
(Loss) income per share ^(1,2)
Basic	$	(1.91	)	$	0.07		$	(0.44	)	$	(0.46	)	$	(2.73	)
Diluted	$	(1.91	)	$	0.07		$	(0.44	)	$	(0.46	)	$	(2.73	)

2019	April 30		July 31		October 31⁽⁴⁾		January 31			Full Year
Revenues	$	141,366	$	136,670	$	116,459	$	87,658		$	482,153
Gross profit		15,452		30,708		29,532		6,746			82,438
Income (loss) from operations		5,815		20,330		18,385		(4,293	)		40,237
Net income (loss) ⁽¹⁾		4,837		16,972		32,434		(2,207	)		52,036
Income (loss) per share ^(1,2)
Basic	$	0.31	$	1.09	$	2.08	$	(0.14	)	$	3.34
Diluted	$	0.31	$	1.08	$	2.07	$	(0.14	)	$	3.32

·	an affiliate of an interested stockholder; or

·	an associate of an interested stockholder, for three years following the date that the stockholder became an interested stockholder.

Date:	April 14, 2020
		/s/ Rainer H. Bosselmann
		Rainer H. Bosselmann
		Chairman of the Board and Chief Executive Officer
		(Principal Executive Officer)