DESCRIPTION OF THE BUSINESS

12 Months Ended

Jan. 31, 2016

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS

NOTE 1 — DESCRIPTION OF THE BUSINESS

The consolidated financial statements include the accounts of Argan, Inc. (“Argan”), its wholly owned subsidiaries, its majority-controlled joint ventures and any variable interest entities for which Argan or one of its wholly-owned subsidiaries is deemed to be the primary beneficiary. Argan conducts operations through its wholly owned subsidiaries, Gemma Power Systems, LLC and affiliates (“GPS”), which provided 90%, 98% and 96% of consolidated revenues for the fiscal years ended January 31, 2016, 2015 and 2014, respectively; The Roberts Company (“Roberts,” see Note 4); Atlantic Projects Company Limited and affiliates (“APC,” see Note 4) and Southern Maryland Cable, Inc. (“SMC”). Argan and these consolidated subsidiaries are hereinafter referred to as the “Company.” The Company’s fiscal year ends on January 31 of each year.

Through GPS and APC, the Company provides a full range of engineering, procurement, construction, commissioning, operations management, maintenance, development, technical and consulting services to the power generation and renewable energy markets for a wide range of customers including independent power project owners, public utilities, power plant equipment suppliers and global energy plant construction firms. GPS, including its consolidated joint ventures and variable interest entities (see Note 5), and APC represent our power industry services reportable segment. Through SMC, the telecommunications infrastructure services segment provides project management, construction, installation and maintenance services to commercial, local government and federal government customers primarily in the mid-Atlantic region. Through Roberts, the industrial fabrication and field services reportable segment produces, delivers and installs fabricated steel components specializing in pressure vessels and heat exchangers for industrial plants primarily located in the southern United States. In addition, Roberts includes a plant services group that handles maintenance turnarounds, shutdowns and emergency mobilizations.