Argan, Inc. Announces Increase to Share Repurchase Program

Rhea-AI Summary

Argan, Inc. (NYSE: AGX) has increased its share repurchase program from $25 million to $50 million. Approximately $18 million of shares have already been repurchased. CEO Rainer Bosselmann emphasized the company's commitment to a disciplined capital allocation strategy, blending shareholder returns with business investment. Over the last two years, Argan has disbursed around $63 million in dividends. The share buyback program is authorized until January 2024, aiming to leverage strong free cash flow.

Positive

• Increased share repurchase program from $25 million to $50 million, signaling confidence in stock value.
• Approximately $18 million of shares already repurchased, enhancing shareholder value.
• Disbursed $63 million in dividends over the past two years, demonstrating commitment to returning capital to shareholders.
• Strong free cash flow expected to support continued share repurchase activity.

Negative

• None.

ROCKVILLE, Md.--(BUSINESS WIRE)-- 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005762/en/

Company:

Rainer Bosselmann

301.315.0027

Investor Relations:

David Watson

301.315.0027

Source: Argan, Inc.

FAQ

What is the latest share repurchase program for AGX?

Argan, Inc. has increased its share repurchase program from $25 million to $50 million.

How much has Argan, Inc. already spent on share repurchases?

Argan, Inc. has repurchased shares at a cost of approximately $18 million to date.

What is the duration of the share repurchase authorization for AGX?

The share repurchase authorization is effective until January 2024.

How much has Argan distributed in dividends over the past two years?

Argan has distributed approximately $63 million in dividends over the past two years.

What is the purpose of the share repurchase program for AGX?

The share repurchase program aims to enhance shareholder value and reflects Argan's strong free cash flow.