Q4 2024 Argan Inc Earnings Call
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Operator: Good evening, ladies and gentlemen, and welcome to the Argan Inc earnings release conference call for the fiscal fourth quarter and year ended January 31, 2024. This call is being recorded, and all participants have been placed on a listen-only mode.
Good evening, ladies and gentlemen, and welcome to the Argon Inc. Earnings release conference call for the fiscal fourth quarter and year ended January 31, 2020 for this call is being recorded all participants have been placed on a listen only mode. Following management's remarks, the call will be opened for questions.
Operator: Following management's remarks, the call will be open to questions. There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time, it is my pleasure to turn the floor over to your host for today, Jennifer Belodeau of IMS Investor Relations. Please go ahead.
There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time. It is my pleasure to turn the floor over to your host for today, Jennifer Bilodeau with IMS Investor Relations. Please go ahead ma'am.
Jennifer Belodeau: Thank you. Good evening, and welcome to our conference call to discuss Argan's results for the fourth quarter and fiscal year ended January 31, 2024. On the call today, we have David Watson, Chief Executive Officer, and Hank Deily, Chief Financial Officer. I will take a moment to read the Safe Harbor Statements.
Jennifer Belodeau: Thank you good evening and welcome to our conference call to discuss organic results for the fourth quarter and fiscal year ended January 31, 'twenty 'twenty four on the call today, we have David Watson, Chief Executive Officer, and Henk Daly, Chief Financial Officer, I will take a moment to read the safe Harbor statements statements made during this conference call and presented in the presentation that are not based.
Jennifer Belodeau: Statements made during this conference call and presented in the presentation that are not based on historical facts are forward-looking statements. Such statements include, but are not limited to, projections or statements of future goals and targets regarding the company's revenues and profits. Such statements are subject to known and unknown factors and risks.
Jennifer Belodeau: On historical facts are forward looking statements such statements include but are not limited to projections or statements of future goals and targets regarding the company's revenues and profits. These statements are subject to known and unknown factors and risks and the company's actual results performance or achievements may differ materially from those expressed or implied by these forward looking statements and some of the fab.
Jennifer Belodeau: The company's actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements, and some of the factors and risks that could cause or contribute to such material differences have been described in this afternoon's press release and in Argan's filings with the U.S. Securities and Exchange Commission. These statements are based on information and understandings that are believed to be accurate as of today, and we do not undertake any duty to update such forward-looking statements. Earlier this afternoon, the company issued a press release announcing its fourth quarter and fiscal 2024 financial results and filed its corresponding Form 10-K annual report with the Securities and Exchange Commission. Okay, with that out of the way, I will turn the call over to David Watson, CEO of Argan. Go ahead, David.
Jennifer Belodeau: Actors and risks could cause or contribute to such material differences have been.
Jennifer Belodeau: Been described in this afternoons press release and in our against filings with the U S Securities and Exchange Commission. These statements are based on information and understandings that are believed to be accurate as of today and we do not undertake any duty to update such forward looking statements earlier. This afternoon. The company issued a press release announcing its fourth quarter and fiscal 2024 financial results.
Jennifer Belodeau: And filed its corresponding Form 10-K annual report with the Securities and Exchange Commission.
Jennifer Belodeau: With that out of the way I will turn the call over to David Watson CEO of organ go ahead David.
David Hibbert Watson: Thanks, Jennifer, and thank you, everyone, for joining us today. I'll start by reviewing some of the highlights of our operations and activities, and Hank Deily, our CFO, will go over our financial results for the fiscal fourth quarter and full year ending January 31, 2021. Then we'll open up the call for a brief Q&A. Our solid fourth quarter performance closed out a strong fiscal 2024 for Argan, which included a 26% increase in consolidated revenue to $573.3 million and improved profitability in full-year EBITDA of $51.3 million. Project backlog grew to $757 million sequentially as compared to the backlog of $730 million at the close of the third quarter. Backlog levels have remained relatively consistent since fiscal 2022 despite significant revenue growth in the same time frame.
David Hibbert Watson: Thanks, Jennifer and thank you everyone for joining today I'll start by reviewing some of the highlights of our operations and activities and Henk daily Our CFO will go over our financial results for the fiscal fourth quarter and full year ended January 31 2024.
Speaker Change: We'll open up the call for a brief Q&A.
Speaker Change: Our solid fourth quarter performance closed out a strong fiscal 'twenty 'twenty four for Oregon, which included a 26% increase in consolidated revenue to $573 3 million improved profitability and full year EBITDA.
Speaker Change: $51 3 million.
Speaker Change: Project backlog grew to $757 million sequentially as compared to the backlog of $730 million at the close of the third quarter.
Speaker Change: Backlog levels have remained relatively consistent since fiscal 2022, despite significant revenue growth and at the same time frame.
David Hibbert Watson: Additionally, we closed fiscal 2024 with more than $400 million of cash and investments, net liquidity of $245 million, and no debt. During fiscal 2024, we repurchased approximately 300,000 shares of our common stock pursuant to our stock repurchase program for a total expenditure of approximately $12.5 million or $41.11 per share. As we previously mentioned, during the third quarter of fiscal 2024, we increased our quarterly cash dividend by 20% to $0.30 per share for a total dividend of $1.10 per share for the full fiscal year 2024.
Additionally, we closed fiscal 2024 with more than $400 million of cash and investments that liquidity of 245 million and no debt during.
During fiscal 2024, we repurchased approximately 300000 shares of our common stock pursuant to our stock repurchase program for a total spend of approximately $12 5 million or $41.11 per share as we previously mentioned during the third quarter of fiscal 2024, we increased our.
Speaker Change: Quarterly cash dividend by 20% to 30 cents per share for a total dividend of $1 10 per share for the full fiscal year 'twenty 'twenty four.
David Hibbert Watson: Slides 4 and 5 present our three reportable business segments. Power Industry Services is comprised of our GEMMA Power Systems and Atlantic Projects Company operating units, which focus on the construction of multiple types of power facilities, including efficient gas-fired power plants, solar energy fields, biomass facilities, and wind farms. Power industry services revenues increased 33% to $119 million for the current quarter as compared to $90 million for the fourth quarter of fiscal 2023. This segment represented 73% of our fourth quarter revenues and reported pre-tax book income of $15.2 million.
Speaker Change: Slides four and five present, our three reportable business segments.
Speaker Change: Power industry services is comprised of our gem of power systems and Atlantic projects Company operating units, which focus on the construction of multiple types of power facilities, including efficient gas fired power plants solar energy fields biomass facilities and wind farms power.
Speaker Change: Power industry services revenues increased 33% to $119 million for the current quarter as compared to $90 million for the fourth quarter of fiscal 2023. The segment represented 73% of our fourth quarter revenues and reported pre tax book income of $15 2 million.
David Hibbert Watson: Industrial Construction Services, which is represented by the Roberts Company, had another strong quarter, contributing $41.3 million, or 25% of our fourth quarter consolidated revenue, and reporting pre-textbook income of $3.6 million. These numbers represent revenue growth of 64% and a pre-tax net income increase of 155% compared to the fourth quarter of fiscal 2020. We are very pleased with the execution we're seeing at TRC. As many of you know, TRC primarily provides solutions for industrial construction projects with a concentration in the industries of agriculture, petrochemical, pulp and paper, water, and power. TRC is well positioned to serve the southeast region of the U.S., a notable high-growth region for TRC's focus industries, as well as other industries that are on-shoring or expanding U.S.-based production facilities.
Speaker Change: Industrial construction services, which is represented by the Robert's company had another significant strong quarter contributing $41 3 million or 25% of our fourth quarter consolidated revenues and reporting pre tax book income of $3 6 million. These numbers represent revenue growth.
Speaker Change: Of 64% and a pre tax net income increase of 155 per cent compared to the fourth quarter of fiscal 2023.
Speaker Change: We are very pleased with the execution, we're seeing at Trc as many of you know Trc, primarily provides solutions for industrial construction projects with a concentration in the industries of agriculture, petrochemical pulp and paper water and power Trc is well positioned to service the southeast region of the.
U S. A notable high growth region for Trc's focus industries as well as other industries that are onshoring or expanding U S based production facilities.
Speaker Change: We are energized by the opportunities we're seeing for Trc in the marketplace and we are committed to capitalizing on the demand for industrial sites as we continue to foster growth in this segment.
David Hibbert Watson: We are energized by the opportunities we're seeing for TRC in the marketplace, and we are committed to capitalizing on the demand for industrial sites as we continue to foster growth in this sector. Finally, we have our Telecommunications Infrastructure Services Group, our smallest segment, which contributed 2% of our 4th quarter revenue. SMC Infrastructure Solutions is our operating brand in this segment, providing outside construction services for the utility and telecommunications sectors, as well as inside the premises wiring services, primarily for federal government locations and military installations requiring high-level security.
Finally, we have our telecommunications infrastructure services group, our smallest segment, which contributed 2% of our fourth quarter revenues.
Speaker Change: <unk> infrastructure solutions is our operating brand in this segment, providing outside construction services for the utility and telecommunications sectors as well as inside the premises wire and services, primarily for federal government locations and military installations, requiring high level security clearance.
Speaker Change: Taking a step back to look at the power industry as a whole.
Speaker Change: There has been quite a bit of recent news about the increasing demand on power grids worldwide and capacity challenges faced by existing energy infrastructures.
David Hibbert Watson: Taking a step back to look at the power industry as a whole, there has been quite a bit of recent news about the increasing demand for power grids worldwide and the capacity challenges faced by existing energy infrastructure. With the wider rollout of AI, not only are more data centers being built, but those centers are also consuming more energy as AI applications demand increased energy consumption. Likewise, as electrical vehicles seek continuous adoption, EV charging, both at home and at public charging stations, is driving increased electricity demand, which is expected to rise higher as EV utilizations expand.
Speaker Change: With the wider rollout of AI not only are more data centers being built those centers are also consuming more energy as AI applications demand increased energy consumption like.
Speaker Change: Likewise as electrical vehicles see continuous adoption EV charging both at home and at public charging stations is driving increased electricity demand, which is expected to rise higher as E V Utilizations.
Speaker Change: Fans finally existing tax incentives and grants in place to encourage the onshoring of manufacturing operations for semiconductors batteries solar panels and the other items has resulted in a 50 year high in American manufacturing and all of that production activity requires a reliable power supply.
David Hibbert Watson: Finally, existing tax incentives and grants in place to encourage onshoring of manufacturing operations for semiconductors, batteries, solar panels, and other items have resulted in a 50-year high in American manufacturing, and all of that production activity requires a reliable power supply. As a partner in the construction of both traditional natural gas and renewable energy resources, Argan is uniquely positioned to benefit as new energy facilities are needed to support stable grids and reliable power generation. Simply put, without consistent and dependable power, data centers, manufacturing facilities, and the EV charging infrastructure cannot function.
Speaker Change: As a partner in the construction of both traditional and natural gas and renewable energy resources argon is uniquely positioned to benefit as new energy facilities are needed to support stable grids and reliable power generation simply put without consistent and dependable power day.
The centers manufacturing facilities and the EV charging infrastructure cannot operate argon is an established and trusted design and construction partner for the power industry and our current pipeline of opportunities validates the respect of our capabilities.
Speaker Change: And our leadership position in the industry.
Speaker Change: Our pipeline features projects with both new and returning customers and we anticipate partnering with these customers to construct or upgrades the energy facilities necessary to meet growing and future power demands.
David Hibbert Watson: Argan is an established and trusted design and construction partner for the power industry, and our current pipeline of opportunities validates the respect of our capabilities and our leadership position in the industry. Our pipeline features projects with both new and returning customers, and we anticipate partnering with these customers to construct or upgrade the energy facilities necessary to meet growing and future power demands. In addition to adding reliable power sources to the grid, our industry is also intent on establishing cleaner energy resources as the industry shifts to new power generation technology. It's important to note that 83% of our 0.8 billion project backlog represents projects that support low carbon emissions, demonstrating leadership in the transition to cleaner power generation. Now I'd like to provide some project updates. Here we highlight the Trumbull Energy Center Project in Lordstown, Ohio, where GEMMA is providing EPC services for a 950-megawatt natural gas-fired power plant. Trumbull is a combined cycle power station that will assist in fulfilling electricity needs as the region phases out several coal-fired plants.
Speaker Change: In addition to adding reliable power sources to the grid. Our industry is also intense on establishing cleaner energy resources as the industry shifts to new power generation technologies. It's important to note that 83% of our 0.8 billion project backlog represents projects that support low carbon emissions.
Speaker Change: Demonstrating leadership in the transition to cleaner power generation.
Speaker Change: Now I'd like to provide some project updates.
Speaker Change: Here, we highlight the Trumbull Energy Center project in Lordstown, Ohio, where Gemma is providing EPC services right 950 megawatt natural gas fired power plant Trumbull.
Speaker Change: Trumbull is a combined cycle power station that will assist in fulfilling electricity needs as the region phases out several coal fired plants from start to finish the project will until design procurement construction and commissioning.
Speaker Change: Trumbull is designed to be one of the cleanest and most efficient combined cycle gas turbine projects.
Speaker Change: And the P. J M market in fact, I was just onsite yesterday and the team is doing great and the progress is excellent. So this project is expected to be completed in 2026.
David Hibbert Watson: To start to finish, the project will entail design, procurement, construction, and commissioning. Trumbull is designed to be one of the cleanest and most efficient combined cycle gas turbine projects in the PJM Market. In fact, I was just on site yesterday, and the team is doing great, and the progress is excellent. So, this project is expected to be completed in 2026. Last quarter, we announced our limited notices to proceed with solar projects in Illinois. The projects are well underway, with GEMMA working on three facilities located throughout the state to provide 160 megawatts of solar power plus 22 megawatts of battery storage capacity. We have now received full notices to proceed with project activities for two of the three facilities. The third full notice to proceed is expected soon.
Speaker Change: Last quarter, we announced our limited notices to proceed with solar projects in Illinois. The projects are well underway with Jim I'm working on three facilities located throughout the state to provide 160 megawatts of solar power plus 22 megawatts of battery storage capacity. We have now received full notice to proceed with project activities.
Speaker Change: For two of the three facilities. The third full notice to proceed is expected. Soon these are exciting opportunities for us to continue to demonstrate our capabilities in the renewable energy space.
Speaker Change: Now I'd like to make a few remarks about our killer project in Northern Ireland as we previously disclosed during fiscal 2020 for our international subsidiary or a P. C.
Speaker Change: Encountered significant operational and contractual challenges associated with the 660 megawatt gas fired power plant.
David Hibbert Watson: These are exciting opportunities for us to continue to demonstrate our capabilities in the renewable energy space. Now, I'd like to make a few remarks about our Killroot project in Northern Ireland. As we previously disclosed, during Fiscal 2024, our international subsidiary, or APC, encountered significant operational and contractual challenges associated with the 660 megawatt gas-fired Killroot power plant. These challenges included weather-related work interruptions, COVID variants sidelining our workforce, and material changes to project scope. The war in Ukraine and global supply chain delays, among others, impacted our ability to execute as expected. As a result of these challenges, the fourth quarter and fiscal year 2024 periods included losses of approximately $2.1 million and $13.6 million, respectively, associated with the Kill Group Project. Despite these difficulties,
Speaker Change: Challenges included weather related interruptions.
Speaker Change: With variance Sidelining, our workforce material changes to project scope the war in Ukraine, and global supply chain delays, among others impacted our ability to execute as expected.
Speaker Change: As a result of these challenges the fourth quarter and fiscal year 2024 periods included losses of approximately $2 1 million and $13 6 million, respectively associated with the Kilroy project.
Speaker Change: Despite these difficulties.
Speaker Change: <unk> has meaningfully completed the project and has turned over one of two power units to the owner one of which has achieved first fire in March we expect to fully complete the project during the first half of calendar 2024.
Speaker Change: As I said last quarter, we are disappointed to recognize a loss at jewelry as an organization. We are intently focused on efficient execution and project success and we do not believe that the developments that kill route are reflective of our capabilities and our standards.
David Hibbert Watson: APC has meaningfully completed the project and has turned over one of the two power units to the owner, one of which achieved first fire in March. We expect to fully complete the project during the first half of calendar 2024. As I said last quarter, we are disappointed to recognize a loss at Killroot. As an organization, we are intently focused on efficient execution and project success. And we do not believe that the developments at Killroot are reflective of our capabilities and our standards.
Speaker Change: I will also note that.
Speaker Change: We've identified claims related to this project valued at more than $25 million and we will vigorously pursue those claims.
Speaker Change: So before I turn the call over to Hank Daily to review our financial performance in detail.
Hank Daily: To highlight a significant Q4 achievement by our gym a teams the completion of the Guernsey power station.
Hank Daily: Guernsey is the largest single phase gas fired project in U S history and was substantially executed during the worst phases of the COVID-19 epidemic and the most severe global impacts of the overall supply chain disruptions.
David Hibbert Watson: I will also note that we've identified claims related to this project valued at more than $25 million, and we will vigorously pursue those claims. Before I turn the call over to Hank Deily to review our financial performance in detail, I'd like to highlight a significant Q4 achievement by our GEMMA teams. Completion of the Guernsey Power Station. Guernsey is the largest single-phase gas fire project in U.S. history and was substantially executed during the worst phases of the COVID-19 epidemic and the most severe global impacts of the overall supply chain disruption.
Hank Daily: Yet the completed plant was delivered to the project owners successfully a tremendous achievement by our talented employees and the evidence of our commitment to completing complex projects.
Hank Daily: Our past performance illustrates the underlying strength of our business and our reputation as a full service construction and project management partner with extensive capabilities that support both traditional and renewable power facilities as we move into fiscal 2025, we are focused on leveraging our capabilities to further <unk>.
David Hibbert Watson: Yet, the completed plant was delivered to the project owner successfully, a tremendous achievement by our talented employees and the evidence of our commitment to completing complex projects. Our past performance illustrates the underlying strength of our business and our reputation as a full-service construction and project management partner with extensive capabilities. We support both traditional and renewable power facilities. As we move into fiscal 2025, we are focused on leveraging our capabilities to further capitalize on opportunities presented by the increasing demand for reliable energy sources. Now I'll hand the call over to Hank. Go ahead, Hank.
Hank Daily: <unk> on opportunities presented by the increasing demand for reliable energy sources now.
Hank Daily: Now I'll hand, the call over to Hank go ahead Ed.
Thanks, David and good afternoon, everyone on.
Hank Daily: On slide 11, we present, our consolidated statements of earnings for the fourth quarter and full year of fiscal 2024.
Speaker Change: Fourth quarter revenues increased 39%.
Hank Daily: $165 million, reflecting an increase in revenues from both our power services and industrial services segments as compared to the fourth quarter of fiscal 2023.
Hank Daily: In the fourth quarter, our power industry services segment achieved a 33% increase in revenues primarily related to projects overseas, including the Shannon Bridge power project in Ireland.
Richard Hank Deily: Thanks, David, and good afternoon, everyone. On slide 11, we present our consolidated statements of earnings for the fourth quarter and full year of fiscal 2024. Fourth quarter revenues increased 39% to $165 million, reflecting an increase in revenues from both our power services and industrial services segments as compared to the fourth quarter of fiscal 2023. In the fourth quarter, our power industry services segment achieved a 33% increase in revenues, primarily related to projects overseas, including the Shannon Bridge Power Project in Ireland, as well as U.S.-based projects, including the Trumbull Energy Center and the Midwest Solar and Battery Project. The increase in revenues from these projects was partially offset by decreased activity associated with the Guernsey Power Station and the Maple Hill Solar Facility as those projects reached the final completion stage in our industrial construction services segment.
Hank Daily: As well as U S based projects, including the Trumbull Energy Center, and the Midwest Solar and battery projects.
Hank Daily: The increase in revenues of these projects were partially offset by decreased activity associated with the Guernsey power station.
Hank Daily: In Maple Hill solar facility as those projects reached the final completion stage.
Hank Daily: Our industrial construction services segment Trs.
Trc achieved revenue growth of 64%.
Hank Daily: Driven by a substantial increase in field services construction projects and supporting steel fabrication work.
Hank Daily: For the three months period ended January 31 2024.
Hank Daily: <unk> reported gross profit of approximately $23 $6 million.
Hank Daily: Which represented a gross profit percentage of approximately 14, 4%.
Hank Daily: And reflected positive contributions from all three reportable business segments. However, these results were adversely impacted by the recorded loss of $2 $1 million related to the kill route project.
Richard Hank Deily: TRC achieved revenue growth of 64%, driven by a substantial increase in field services, construction projects, and Supporting Steel Fabrication Works for the three months ended January 31, 2024. Argan reported gross profit of approximately $23.6 million, which represented a gross profit percentage of approximately 14.4%, and reflected positive contributions from all three reportable business segments. However, these results were adversely impacted by the recorded loss of $2.1 million related to the Killroot Project. Consolidated gross profit for the comparative quarter ended January 31, 2023 was $20 million, representing a gross profit percentage of 16.9%. Selling general and administrative expenses of $11.9 million for the fourth quarter of fiscal 2024 increased as compared to SG&A of $10.5 million for the comparable prior year period. However, these expenses decreased as a percentage of revenues for the corresponding periods from 8.8% to 7.2%.
Hank Daily: Consolidated gross profit for the comparative quarter ended January 31 2023.
Hank Daily: Was $20 million, representing a gross profit percentage of 16, 9%.
Hank Daily: Selling general and administrative expenses of $11.
Hank Daily: $9 million for the fourth quarter of fiscal 2024 increased as compared to SG&A of $10 $5 million for the comparable.
Hank Daily: The prior year period.
But these expenses decreased as a percentage of revenues with a corresponding periods from eight 8% to seven 2%.
Hank Daily: Net income for the fourth quarter of fiscal 2024 was $12 million or 89 cents per diluted share.
Hank Daily: <unk> to $13 6 million or $1 per diluted share for last year's comparable quarter EBITDA or.
Hank Daily: <unk> earnings before interest taxes, depreciation and amortization for the quarter ended January 31, 2024 was $17 $6 million compared to $11 2 million in the same period of last year.
Richard Hank Deily: Net income for the fourth quarter of fiscal 2024 was $12 million, for 89 cents per diluted share, compared to $13.6 million, or $1 per diluted share, for last year's comparable quarter. EBITDA, for earnings before interest, taxes, depreciation, and amortization, for the quarter ended January 31, 2024 was $17.6 million, compared to $11.2 million in the same period of last year. Looking at our full-year performance, revenues for fiscal 2024 increased by 26% to $573.3 million as compared to revenues of $455 million for the prior fiscal year.
Hank Daily: Looking at our full year performance.
Hank Daily: Revenues for fiscal 2024.
Hank Daily: Increased by 26% to.
Hank Daily: $573.3 million as compared to revenues of $455 million for the prior fiscal year.
Hank Daily: Revenues in our power industry services segment increased by $72 million or 23% to $416 $3 million for the full year fiscal 2024, compared with revenues of $346 million.
Richard Hank Deily: Revenues in our power industry services segment increased by $70.2 million, or 20.3%. $416.3 million for the full year fiscal 2024 compared with revenues of $346 million for fiscal 2023. However, construction activities increased in fiscal 2024 for the Trumbull Energy Center, the Shannon Bridge Power Project, ESB FlexGen Peaker Plants, and the Midwest Solar and Battery Project. The revenue increase was partially offset by decreased construction activities.
Hank Daily: For fiscal 2023.
Hank Daily: Construction activities increased in fiscal 2024 for the Trumbull Energy Center, the Shannon Bridge power project.
Hank Daily: S B flex, Jim Packer plants in the Midwest solar and battery projects.
Hank Daily: The revenue increase was partially offset by a decrease construction activities.
Hank Daily: Associated with the Guernsey power station project.
Hank Daily: Maple Hill solar facility and the Equinix data center projects as those projects are generally near or at completion.
Richard Hank Deily: Associated with the Guernsey Power Station Project, The Maple Hill Solar Facility, and the Equinix Data Center Project. Those projects are generally near or at completion. Our consolidated gross profit margin of 14.1% for fiscal 2024 decreased as compared to gross margin of 19% for fiscal 2023, primarily due to the $13.6 million loss recorded in fiscal 2024 associated with the Killroot Project. Gross margins in our power industry services, our industrial services, and our telecommunications infrastructure services segment decreased to 14.1% and 26.5%, respectively, in fiscal 2024. SG&A expenses decreased to $44.4 million, or $ 9.8% of consolidated revenues for the corresponding periods respectively. Net income for the full fiscal 2024 was $32.4 million, or $2.39 per diluted share, compared to $33.1 million, or $2.33 per diluted share for the prior year period. EBITDA was $51.3 million and paired with EBITDA of $48.1 million for fiscal 2023. Most notably, these consolidated results were tempered by the reduction in consolidated gross profit between periods related to the loss recorded on the Killroot contract as discussed above.
Hank Daily: Our consolidated gross profit margin of 14, 1% for fiscal 2024 decreased as compared to gross margin of 19% for fiscal 2023.
Hank Daily: Primarily due to the $13 $6 million loss.
Hank Daily: <unk> fiscal 2024 associated with the kill route project.
Hank Daily: Gross margins in our power industry services, our industrial services and our telecommunications infrastructure services segments were 14, 1%.
Hank Daily: 12, 9%.
Hank Daily: And 26, 5% respectively.
Hank Daily: Our fiscal 2024.
SG&A expenses decreased to $44 4 million or.
Hank Daily: For fiscal 2024, as compared to $44 $7 million for fiscal 2023.
Hank Daily: Representing seven 7% and nine 8% of consolidated revenues for the corresponding periods respectively.
Hank Daily: Net income for the full fiscal 2024 was $32 $4 million.
Hank Daily: We're $2 39 per diluted share compared to $33 1 million or $2 33 per diluted share for the prior year period.
Hank Daily: EBITDA was $51 $3 million compared with EBITDA of $48 1 million for fiscal 2023.
Hank Daily: Most notably these consolidated results were tempered by the reduction in consolidated gross profit between periods related to the loss recorded on the kill route contract as discussed above.
Richard Hank Deily: Our income tax reporting for fiscal 2024 was also impacted by the Killroot loss, as we did not apply any income tax benefit to the resulting net operating loss. The losses occurred by APC in the UK contributed significantly to the 33.9% annual effective income tax rate for fiscal 2024. Our effective income tax rates for the previous two years were closer to 25 percent, and we believe this rate is a better indicator for future periods. Before turning the call back over to David, I'd like to touch on favorable returns we experienced in fiscal 2024 related to our cash, cash equivalents, and investments that are invested and described in our Consolidated Financial Statements. Other income for the year ended January 31, 2024 included investment income in the proximate pre-tax amounts of $14.1 million, compared to $3.4 million in fiscal 2023.
Hank Daily: Our income tax reporting for fiscal 2024 was also impacted by the kill route loss as we did not apply any income tax benefit to the resulting net operating loss.
Hank Daily: <unk> by APC in the U K.
Hank Daily: Which contributed significantly to the 33, 9% annual effective income tax rate for fiscal 2024.
Hank Daily: Our effective income tax rates for the previous two years, we're closer to 25%.
Hank Daily: And we believe this rate is a better indicator for future periods.
Speaker Change: Before turning the call back over to David I'd like to touch on favorable returns we experienced in fiscal 2024 related to our cash cash equivalents and investments.
David Hibbert Watson: That are invested are described in our consolidated financial statements.
David Hibbert Watson: Other income for the year ended January 31 2024.
Included investment income in the approximate pretax amounts of $14 $1 million compared to $3 $4 million in fiscal 2023.
David Hibbert Watson: With that, I'll turn the call back to David. Thanks, Hank. Turning to slide 12, our consolidated project backlog of $0.8 billion at January 31, 2024 remains fairly consistent with backlog for fiscal 2023. Importantly, our backlog includes a healthy group of longer-term, fully committed projects in both our industry services and industrial services segments. On slide 13, we present certain major projects currently included in our project backlog. I highlighted earlier our activity at the Trumbull Energy Center in Ohio and that two of the three solar, plus battery projects in Illinois have received full notices to proceed. Also included in our project backlog are two separate water treatment plant projects being performed by TRC.
David Hibbert Watson: With that I'll turn the call back to David.
Thanks, Greg.
David Hibbert Watson: Turning to slide 12, our consolidated project backlog of <unk> 8 billion at January 31, 2024 remains fairly consistent with backlog for fiscal 2023.
David Hibbert Watson: Importantly, our backlog includes a healthy group of longer term fully committed projects in both the power industry services and industrial services segments.
David Hibbert Watson: On slide 13, we present certain major projects currently included in our project backlog I highlighted earlier, our activity at the Trumbull Energy Center in Ohio, and that two of the three solar.
David Hibbert Watson: Plus battery projects in Illinois have received full notice to proceed.
David Hibbert Watson: Also included in our project backlog are two separate water treatment plant projects being performed by Trc.
David Hibbert Watson: Over in Ireland, the three ESB flexogen peaker power plants and the Shannon Bridge thermal plants are both in the final stages of construction and are undergoing commissioning. Following the close of fiscal 2024, we have seen a solid increase in projects coming to market. And, as I mentioned earlier, there is a growing urgency in the power industry to ensure we have the appropriate facilities and infrastructure to meet the forecasted growth in energy demand. Since year-end, we have added to our project backlog as a result of GEMMA and TRC entering into several contract agreements, including certain LNTPs with several customers. These agreements relate to a large solar facility, a planned natural gas fired power plant, and agreements for other industrial facilities. Our backlog is robust with a diverse group of projects that show our range of capabilities and highlights our reputation as an effective and reliable industry partner. Our balance sheet remained strong. At the end of fiscal 2024, we had over $400 million in cash, cash equivalents, and investments, generating meaningful investment yields. Our net liquidity was $245 million, and we had no debt.
David Hibbert Watson: Over in Ireland, the three ESP, but Jim <unk> power plants in the Shannon Bridge thermal plants are both in the final stages of construction and are undergoing commissioning.
David Hibbert Watson: Following the close of fiscal 2024, we have seen a solid increase in projects coming to market and as I mentioned earlier, there was a growing urgency in the power industry to ensure we have the appropriate facilities and infrastructure to meet the forecasted growth in energy demand.
David Hibbert Watson: Since year end, we have added to our project backlog as a result of German and Trc entering into several contracts or agreements, including including certain LNG piece with several customers. These agreements related to a large solar facility a planned natural gas fired power plant and agreements for other industrial.
David Hibbert Watson: Cities are.
David Hibbert Watson: Our backlog is robust with a diverse group of projects that show our range of capabilities and highlights our reputation as an effective and reliable industry partner.
David Hibbert Watson: Our balance sheet remains strong at the end of fiscal 2024, we had over $400 million in cash cash equivalents and investments generating meaningful investment yields our net liquidity was $245 million and we had no debt.
David Hibbert Watson: Stockholders' equity was $291 million at January 31, 2021. As you can see from this liquidity bridge, our business model ordinarily requires a low level of capital expenditure. Our net liquidity of $244.9 million at January 31st, 2024 has increased $8.7 million compared with the end of fiscal 2020. Since November 2021, we have returned a total of approximately $101.2 million to shareholders as we've repurchased approximately 2.7 million shares of our common stock, or approximately 17% of shares outstanding at the beginning of the program at an average price of $37.60 per share. [inaudible] In September 2023, we increased the company's quarterly dividend by 20% from $0.25 to $0.30 per share, reflecting the strength of our business and increasing our annual run rate to $1.20 per share.
David Hibbert Watson: <unk> equity was $291 million at January 31, 2024.
David Hibbert Watson: As you can see from this liquidity bridge, our business model ordinarily requires a low level of capital expenditures, our net liquidity of $244 9 million at January 31, 2024 has increased $8 7 million compared with the end of fiscal 2023.
David Hibbert Watson: Since November 2021, we have returned a total of approximately 101 2 million to shareholders as we repurchased approximately two 7 million shares of our common stock or approximately 17% of shares outstanding at the beginning of the program.
At an average price of $37 60 per share.
David Hibbert Watson: Additionally in.
David Hibbert Watson: In September 2023, we increased the company's quarterly dividend, 20% from 25 to.
David Hibbert Watson: 230 per share, reflecting the strength of our business.
David Hibbert Watson: And increasing our annual run rate to $1 20 per share.
David Hibbert Watson: Argan is dedicated to driving long-term value creation for shareholders. While our operating results can vary from quarter to quarter, related to the timing of contracts, we remain focused on delivering long-term value to shareholders. Since 2008, we have increased our tangible book value and cumulative dividends per share considerably. As we move through fiscal 2025 and beyond, we believe we are extremely well positioned to expand our leadership role as a partner of choice for the design and construction of the power resources necessary for dependable power grids. With the number of new data centers proliferating, electric vehicle use expanding, and manufacturing facilities ramping up for enhanced production, there will be increased demand for reliable power 24 hours a day, 7 days a week.
David Hibbert Watson: Oregon is dedicated to driving long term value creation for our shareholders. While our operating results can vary from quarter to quarter related to the timing of contracts. We remained focused on delivering long term value to shareholders. Since 2008, we have increased our tangible book value and cumulative.
David Hibbert Watson: Dividends per share considerably.
David Hibbert Watson: As we move through fiscal 2025 and beyond we believe we are extremely well positioned to expand our leadership role as a partner of choice for the design and construction of the power resources necessary for dependable power grids.
With the new the number of new data centers proliferating electric vehicle use expanding and manufacturing facilities ramping up or enhance production there will be increased demand for reliable power 24 hours a day seven days a week.
David Hibbert Watson: With our capabilities, expertise, and proven track record, Argan has built a strong customer base as a trusted partner for the full service construction and project management of both traditional gas-fired as well as renewable energy facilities. Our success has driven our ability to capture repeat business and generated interest from new customers, and our pipeline is strong. We look forward to applying our facility design and construction capabilities to support the establishment of all types of energy sources as the power industry prepares to meet the growing demand for reliable energy. To conclude, we remain focused on our long-term growth strategy to leverage our core competencies to capitalize on existing and emerging market opportunities. Maintain disciplined risk management, the goal of improving project management effectiveness and minimizing costly project overruns.
David Hibbert Watson: With our capabilities expertise and proven track record are gonna has built a strong customer base as a trusted partner with a full service construction and project management of both traditional gas fired as well as renewable energy facilities.
David Hibbert Watson: Our success has driven our ability to capture repeat business and has generated interest from new customers and our pipeline is strong.
David Hibbert Watson: We look forward to applying our facility design and construction capabilities to support the establishment of all types of energy sources as the power industry prepares to meet the growing demand for reliable energy.
David Hibbert Watson: To close we remain focused on our long term growth strategy.
To leverage our core competencies to capitalize on existing and emerging market opportunities to maintain disciplined risk management. The goal of improving our project management effectiveness and minimizing costly project overruns strengthen our position as a partner of choice and the construction of low and net zero emission.
David Hibbert Watson: Strengthen our position as a partner of choice in the construction of low and net zero emission power generation facilities as the industry transitions to cleaner energy alternatives while maintaining grid reliability. And last but not least, drive organic growth while also being alert for acquisition opportunities that make sense for our business through thoughtful capital allocation. Fiscal 2024 was a year of many accomplishments and a few challenges. I'd like to thank our employees for their hard work and dedication to operational excellence.
David Hibbert Watson: Our generation facilities as the industry transitions to cleaner energy alternatives, while maintaining grid reliability and last but not least drive organic growth. While also being alert for acquisition opportunities that make sense for our business through thoughtful capital allocation fiscal.
David Hibbert Watson: Fiscal 2024 was a year of many accomplishments and a few challenges.
David Hibbert Watson: I'd like to thank our employees for their hard work and dedication to operational excellence and I also like to thank our shareholders for their continued support.
Operator: And I'd also like to thank our shareholders for their continued support. As we kick off fiscal 2025, we are focused on leveraging our capabilities to increase Argan's leadership position as a partner of choice for energy, and others. With that, Operator, let's open it up for questions. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone key. A confirmation tone will indicate your line is in the question queue.
David Hibbert Watson: As we kick off fiscal 2025, we are focused on leveraging our capabilities to increase our against leadership position as a partner of choice to the power and industrial markets.
Speaker Change: With that operator, let's open it up for questions.
Speaker Change: At this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys one moment.
Operator: Please press star 2 if you'd like to remove your question from the... For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. One moment, please, while we poll for questions. Once again, please press star 1 if you have a question or comment. The next question comes from Rob Brown with Lake Street Capital. Rob, please proceed. Good afternoon, and congratulations on all the progress.
Speaker Change: Please while we poll for questions. Once again, please press star one if you have a question or comment.
Speaker Change: The first question comes from Rob Brown with Lake Street Capital Rob. Please proceed.
Robert Duncan Brown: Good afternoon, and congratulations on all progress.
Robert Duncan Brown: Thanks, Rob.
Robert Duncan Brown:
Robert Duncan Brown: Let me get a little further color on the pipeline it sounds like things are starting to loosen up there.
Robert Duncan Brown: You talked about several things that are that are coming.
Robert Duncan Brown: I'm going to get a sense of.
Robert Duncan Brown: Sort of the scaling of what those projects could be in terms of size ranges and.
Yes.
Robert Duncan Brown: Maybe some of the dynamics on loosening, but.
David Hibbert Watson: Thanks, Rob. Let me get a little further color on the pipeline. It sounds like things are starting to loosen up there. We talked about several things that are coming to get a sense of sort of the scale of what those projects could be in terms of size range and the dynamics of loosening the project flow. Sure.
Robert Duncan Brown: The project flow Thats happening.
Robert Duncan Brown: Yeah.
Speaker Change: Sure I mean, we're I mean as you can tell from my prepared remarks and from discussing a couple of projects that are that were subsequent to year end, we're really excited about where we stand with our project pipeline both in gas and in renewables I mean, we received two full notices to proceed.
David Hibbert Watson: I mean, we're, I mean, as you can tell from my prepared remarks and from, you know, discussing a couple projects that were subsequent to year end, we're really excited about where we stand with our, our, project pipeline, both in gas and in renewables. We received two full notices to proceed during Q4 on, on a couple of solar battery projects. And based on what we have signed subsequent to year-end and based on the current visibility in our pipeline, we expect some additional large projects over the next six plus months. The new work is going to represent a mix of renewable and gas. We're primarily seeing those gas-fired plant opportunities in the PJM, MISO, and especially the Aircot region, which is basically the Midwest, Texas, and the Mid-Atlantic and Southeast.
During Q4 on a couple of solar battery projects.
And based on what we have signed subsequent to year end and based on the current visibility on our pipeline. We expect some additional large projects over the next six plus months.
Speaker Change: The new work is going to represent a mix of renewable and gas.
Speaker Change: Primarily seen those gas fired plant opportunities in the PJM MISO and in especially the air caught region, which is basically the Midwest, Texas and two mid Atlantic and southeast.
Speaker Change: Big picture, we ultimately expect to see our backlog meaningfully exceed where we are today the gas jobs are.
Speaker Change: <unk> remained relatively large in scale, but we're also tracking a number of people picking opportunities.
David Hibbert Watson: Big picture, we ultimately expect to see our backlog meaningfully exceed where we are today. The gas jobs are... remain relatively large in scale, but we're also tracking a number of peaking opportunities. I'd be remiss not to say that the start of future project wins is controlled by the customer, which makes it really difficult to forecast our backlog given the material size of certain projects. Thermal jobs always take longer than we would like, but getting a development job to the finish line is not easy.
I'd be remiss not to say that keep in mind that the start of future project wins are controlled by the customer.
Speaker Change: Which makes it really difficult to forecast our backlog given the material size of certain projects.
Speaker Change: Thermal jobs, I always take longer than we would like but kidney and development job to the finish line. It is not easy.
Speaker Change: PJM auction is is delayed until the summer so ideally that that unlocked some additional opportunities and.
Speaker Change: MISO is generally overloaded.
David Hibbert Watson: PJ's auction is delayed till the summer, so ideally, that unlocks some additional opportunities, and You know miso is generally overloaded, so the OEMs are really busy, and that's a true sign that there are a lot of developers out there wanting to start new jobs, And we're here to build those jobs for them. Thank you. And then, I guess, are you seeing kind of a resonance on the gas plant side in terms of the demand environment? Drivers there, that are people sort of realizing gas plants are the solution to those. Yes, I think it's been going on for quite some time now.
Speaker Change: So the Oems are really busy and and that's a that's a true sign that there's a lot of developers out there wanting to start new jobs and we're here to build those jobs for them.
Perfect Great. Thank you and then and then I guess are you seeing kind of a.
Speaker Change: Renaissance on the gas plant side in terms of the demand environment. I know you said it a lot of the drivers.
Speaker Change: Drivers there.
Speaker Change: But are there are people sort of realizing gas plants or the solution to those demand thing demand drivers.
Speaker Change: But yes, I think I think it's been happening for quite some time now.
David Hibbert Watson: I mean, we didn't really talk about it, but the demand curve for power has caught a lot of public utilities and a lot of folks by surprise about the amount of power that's needed for the foreseeable future between the AI and the EVs and all the other electrification efforts of the overall economy. So, there is planning for a lot of natural gas power plants in addition to the tremendous number of renewable projects. And again, we believe we're perfectly situated and positioned to take advantage of both of those tailwinds. Okay, great, thank you. I'll turn it over to you. Once again, if you have a question or a comment, please press star 1. This is Chris Moore with CJS-TV.
Speaker Change: I mean, we didn't really talk about it but the demand curve for power.
Speaker Change: Has caught a lot of the public utilities and and in a lot of folks by surprise at about the amount of power. That's that's been needed.
Speaker Change: For the foreseeable future with all the between the IV and the Evs.
Speaker Change: E vs in and all the other electrification efforts of the of the overall economy. So there is planning.
Speaker Change: For a lot of natural gas power plants. In addition to the tremendous number of renewable projects in and again, we believe we're perfectly situated and positioned to take advantage of both of those tailwind.
Speaker Change: Okay, great. Thank you I'll turn it over.
Speaker Change: Once again, if you have a question or a comment please press star one on your Touchtone phone. The next question comes from Chris Moore with CJS Securities. Please proceed.
Christopher Paul Moore: Hey, congratulations on a nice quarter. Thanks.
Christopher Paul Moore: Thanks, Chris sure maybe it will just follow up on that demand for power that it seems to be growing everywhere, but.
Christopher Paul Moore: It looks like from what I've seen the amount of power generation.
Christopher Paul Moore: Please proceed. Hey, congratulations on a nice job. Thanks, Chris. Sure, maybe we'll just follow up on that demand for power growing everywhere. From what I've seen, the amount of power generation, you know, from zero carbon sources in the U.S. was roughly flat year-over-year, 39%... 23. Solar, significant growth. Wind and hydro are down a little bit, but the interesting part is that from a natural gas perspective, I think 41% was from natural gas in 2019. So I guess a couple of questions there are trying to figure out what the level of natural gas as a percentage of power generation that you think would be necessary in order to meet that growing demand. Does it need to stay in the?
Christopher Paul Moore: Zero carbon sources in the U S was roughly flat year over year to 39% I think in 'twenty three solar a significant growth.
Christopher Paul Moore: Wind and hydro down a little bit but.
Christopher Paul Moore:
Christopher Paul Moore: The interesting part is that from from a natural gas perspective, I think 41% was was natural gas versus 19 and into 2019. So I guess a couple questions. There is trying to figure out what.
Christopher Paul Moore: The level of natural gas as a percentage of power generation that you think would be necessary in order to meet that.
Christopher Paul Moore: This growing demand.
Does it need to stay in this.
Christopher Paul Moore: Mid 30% to 40% level or can you reach how all that demand for AI EV et cetera.
Christopher Paul Moore: With a significant increase on the renewable side.
Speaker Change: Yeah. So Chris I mean, this is my opinion, but I do believe that it needs to stay in that 30% to 40% range and even remain in that 30% to 40% range not only do you need to grow the fleet as the the amount of energy being consumed in the country increases.
David Hibbert Watson: you know, the mid-30s to 40% level. And you reach, you know, all that demand for AI, EV, et cetera, with, you know, a significant increase on the renewable side, base load coal plants coming offline. You're not going to be able to replace all of that with renewables given the intermittency of those, so 30 to 40 percent makes sense to me, but you also have the dynamic that I do expect renewables to continue to grow tremendously, but So, in a lot of ways, you need to have a number of natural gas solutions as well as others out there to back up the renewables. And so maybe those gas plants aren't running all the time, but they are going to have to run at critical points of time. And so those plants need to be built.
Speaker Change: But you also have the dynamic of retirements.
Speaker Change: Natural gas plants that were a lot of them that were built in 2000 2001.
Speaker Change: In addition.
Speaker Change: Two.
Baseload coal plants coming offline youre not going to be able to replace all of that with renewables given the intermittency of those so.
Speaker Change: 30%, 40% makes sense to me, but you also have the dynamic that.
Speaker Change: I do expect renewables to continue to grow tremendously, but they're not always going and you can't and the batteries are only so long in duration for backup storage, so and a lot of ways you need to have a number of natural gas solutions as well as others out there to back up the renewables and so maybe those gas plants are running.
Speaker Change: All the time, but they are going to have to run in critical points of time and so those plants need to be built and then again, that's what we're here to do both building gas and renewable.
David Hibbert Watson: And again, that's what we're here to do, both building gas and renewables. Got it. That's helpful.
Speaker Change: Got it that's helpful.
David Hibbert Watson: I'm trying to find a reasonable number for 2023 in terms of the number of natural gas plants that begin construction in the U.S. Is it a handful or? It's a double-digit number. I couldn't find any good statistics there. Yeah, the EIA, which is the Energy Information Administration in the US, tends to have some good information to look at.
Speaker Change: Trying to find that a reasonable number for 2023 in terms of the number of significant NASA.
Speaker Change: Natural gas plants that began construction in the U S is is it a handful or was it is it a double digit number I couldnt find any statistic there.
Speaker Change: Yeah, the the EIA, which is the energy information administration in the U S tends to have some good information.
Speaker Change: To look at I think they they expect about <unk> <unk>.
David Hibbert Watson: I think they expect about 20 new natural gas fired power plants to come online in the US kind of in the 2024-2025 time period. Got it. It was last year, though, because of PGM and others. It was significantly lower than that, correct? Yes, yes, there continues to be significant interconnect challenges, both for renewables and gas.
Speaker Change: 20, new natural gas fired power plants to come online in the U S kind of in the 2020 for 2025 time period.
Speaker Change: Got it last year, though it was because of the PGM and other reasons it was significantly lower than that correct.
Speaker Change: Single digit yes, yes, they're they're they're they're they're there continues to be significant.
Speaker Change: Interconnect challenges both for renewables and gas.
David Hibbert Watson: Otherwise, I think the growth in the number of projects kicking off and being built would be more so than what we were expecting to see. Got it. I'll switch off the gas. So, Roberts had another exceptional quarter and an exceptional year. Obviously, that growth rate for the year. You know, I expect that to continue, but can you sustain this 40 million plus run rate? Q4, is there anything special about Q4 there? You know, you wouldn't be seeing moving forward.
Speaker Change: Otherwise I think the growth in the number of projects kicking off in and being built would be more so than what we were expecting to see.
Speaker Change: Got it I'll switch off of gas. So so roberts had another exceptional quarter exceptional year, obviously that growth rate for the year is.
Speaker Change: And I would expect that continue but can you sustain this $40 million plus.
Speaker Change: Run rate that you did in Q4 is there anything special in Q4, there that day.
Speaker Change: You wouldn't be seeing moving forward.
David Hibbert Watson: Chris, I'm going to continue to challenge my team down there. And they've had a tremendous two- or three-year run. Right, $40 million in Q4, it was over $30 million in the previous three quarters, and frankly, they exceeded kind of the top ends of my expectations for the year. You know, a really good data point is that their backlog at year end was $128 million, and it's increased since then. So, I do expect them to continue to add very smaller and larger projects, add members to their team, which they've already done, and others, and be able to increase that growth. Again, obviously, everything's subject to the economy continuing to chug along, but they're in a sweet spot right now. Got it. Obviously, gross margin was impacted this quarter by Killroot.
Speaker Change: Chris I'm going to continue to challenge My my team down there.
And they they have just done they've had a tremendous two or three year.
Speaker Change: Ron.
<unk>.
Speaker Change: <unk> 40 million in Q4, it was over $30 million in the previous three quarters.
Speaker Change: And frankly, they exceeded kind of the top ends of like my expectations for the year.
Really good data point is frankly, there their backlog.
Speaker Change: At year end was $1 $20 million to $128 million in it and it has increased since then so I do I do expect them to continue to add.
Speaker Change: Very smaller and larger projects.
Speaker Change: <unk> members to their team, which they've already done and others and being able to to increase that growth again, obviously everything is subject to the economy continuing to chug along.
Speaker Change: But they're in a sweet spot right now.
Speaker Change: Got it last one for me is.
Speaker Change: Gross margin was impacted this quarter by kill route.
David Hibbert Watson: You're done with Guernsey. Congratulations on that. Was there any Guernsey excess margin in the gross margin in Q4? Chris, for some reason, I knew you were going to ask me that question.
Speaker Change: You're done with Guernsey congratulations on that was there any currency excess margin in the <unk> and the gross margin in Q4.
Speaker Change: Chris for some reason that you're going to ask me that question.
Speaker Change: <unk>.
David Hibbert Watson: We are now in the warranty period, and the job is effectively complete. Guernsey saw some further improvements during Q4 as items were closed out, and remaining risk was reduced or eliminated. At the end of the day, we're always committed to delivering the best possible project results each and every time, so the currency job is effectively complete.
Speaker Change: We are now in the warranty period and the job is effectively complete.
Speaker Change: You know at Guernsey saw some further improvements during Q4 as items were closed out and remaining risk or reduced <unk> eliminated.
Speaker Change: At the end of the day.
Speaker Change: We're always committed to delivering the best possible project results, each and every time and so our currency job. This is effectively complete.
David Hibbert Watson: All right, I will leave it there. I appreciate it. Of course. We have reached the end of the question and answer session. I will now turn the call over to David Watson for closing remarks. Great. Thank you all for participating in today's call. We look forward to speaking with you again when we report our Q1 fiscal 2025 earnings. Have a great evening. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.
Speaker Change: All right I'll leave it there I appreciate it.
Speaker Change: Of course.
Speaker Change: We have reached the end of the question and answer session I will now turn the call over to David Watson for closing remarks.
David Hibbert Watson: Great. Thank you all for participating on today's call. We look forward to speaking with you again, when we report our Q1 fiscal 2025 earnings have a great evening.
Speaker Change: This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
Speaker Change: Yeah.