Q4 2025 Argan Inc Earnings Call

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, 2025. This call is being recorded. All participants have been placed on a listen-only mode.

Good evening, ladies and gentlemen, and welcome to the Oregon, Inc. Earnings release conference call for the fiscal fourth quarter and year ended January 31 2025.

This call is being recorded.

All participants have been placed on a listen only mode.

Operator: Following management's remarks, the call will be open for questions. There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast.

Following management's remarks, the call will be opened for questions.

There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast.

Jennifer Belodeau: At this time, it is my pleasure to turn the floor over to your host for today, Jennifer Belodeau of IMS Investor Relief. Please go ahead. Thank you.

Speaker Change: At this time it is my pleasure to turn the floor over to your host for today, Jennifer Bella Joe of I M. S. Investor Relations. Please go ahead.

Speaker Change: Thank you good evening and welcome to our conference call to discuss our against our results for the fourth quarter and fiscal year ended January 31, 2025 on the call today, we have David Watson, Chief Executive Officer, and Josh Barker, Chief Financial Officer, I'll take a moment to read the safe Harbor statements.

David Watson: Good evening and welcome to our conference call to discuss Argan's results for the fourth quarter and fiscal year ended, January 31, 2025.

David Watson: On the call today, we have David Watson, Chief Executive Officer, and Josh Baugher, Chief Financial Officer.

Operator: I will take a moment to read the Safe Harbor Statement. 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. These statements are subject to known and unknown factors and risks. 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.

Speaker Change: Payments 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. These statements are subject to known and unknown factors and risks the company's actual results performance or achievements may differ materially.

Speaker Change: 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 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.

Operator: Securities and Exchange Commission.

Operator: 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.

Speaker Change: Statements earlier this afternoon, the company issued a press release announcing its fourth quarter and fiscal 2025 financial results and filed its corresponding Form 10-K report the Securities and Exchange Commission.

Operator: Earlier this afternoon, the company issued a press release announcing its fourth quarter and fiscal 2025 financial results, and filed its corresponding Form 10-K report with Securities and Exchange Commission. Okay.

David Watson: With that out of the way, I'll turn the call over to David Watson, CEO of Argan. Thanks, Jennifer, and thank you, everybody, for joining today. I'll start by reviewing some of the highlights of our operations and activities, and Josh Baugher, our CFO, will go over our financial results for the fourth quarter and full year ended January 31st, 2025.

Speaker Change: Without all the way I'll turn the call over to David Watson CEO of Oregon.

David Watson: Thanks, Jennifer and thank you everybody for joining us today I'll start by reviewing some of the highlights of our operations and activities and Josh <unk>. Our CFO will go over our financial results for the fourth quarter and full year ended January 31 2025.

David Watson: Then we'll open up the call for a brief Q&A. Our fourth quarter performance continued the momentum we built throughout fiscal 2025, delivering a strong close to a year characterized by exceptional execution across all of our businesses. The focus and dedication of our team resulted in consolidated revenue growth in fiscal 2025 of 52% to $874 million, full-year gross margin of 16.1%, record full-year diluted EPS of $6.15, and EBITDA of $113.5 million. Our growth in the year was led by significantly increased revenue from our power industry services segment and strong revenue performance in our industrial construction services business.

Speaker Change: We'll open up the call for a brief Q&A.

Speaker Change: Our fourth quarter performance continued the momentum we built throughout fiscal 2025, delivering a strong close to a year characterized by exceptional execution across all of our businesses.

Speaker Change: The focus and dedication of our team resulted in consolidated revenue growth in fiscal 2025 up 52% to 874 million full year gross margin of 16, 1% record full year diluted EPS of $6 15, and EBITDA of 100.

Speaker Change: $13 5 million or.

Speaker Change: Our growth in the year was led by significantly increased revenue from our power industry services segment.

Speaker Change: Strong revenue performance in our industrial construction services business.

David Watson: We exited the fiscal year with a project backlog of approximately $1.4 billion at January 31, 2025, an 80% increase compared to a backlog of $757 million at January 31, 2024. In today's energy demand environment, characterized by increasing pressure on the power grid and an urgent need for additional resources, We are seeing a tremendous pipeline of project opportunities. In fact, during the fourth quarter, we added one gigawatt of power projects to our backlog. The two new projects include an approximately 700 megawatt combined cycle natural gas powered project in the U.S. and a 300 megawatt biofuel plant in Ireland.

Speaker Change: We exited the fiscal year with a project backlog of approximately 1.4 billion at January 31, 2025, and 80% increase compared to backlog of $757 million at January 31, 2024.

Speaker Change: In today's energy demand environment characterized by increasing pressure on the power grid and an urgent need for additional resources, we are seeing a tremendous pipeline of project opportunities.

Speaker Change: <unk> during the fourth quarter, we added one gigawatt of power projects to our backlog. The two new projects include an approximately 700 megawatt combined cycle natural gas power project in the U S and a 300 megawatt biofuel plant in Ireland.

David Watson: Further, we believe the heightened demand for our capabilities will continue for the next decade and beyond. We're very optimistic about a demand environment and the runway for our continued growth in the near, mid, and long term. Our balance sheet remains strong with $525 million of cash and investments, net liquidity of $301 million, and no debt at January 31, 2025. And with the 25% increase our board approved during the third quarter of fiscal 2025, our annual dividend rate is now $1.50 per common share.

Further we believe the heightened demand for our capabilities will continue for the next decade and beyond we're very optimistic about the demand environment and the runway for our continued growth in the near mid and long term.

Speaker Change: Our balance sheet remains strong with $525 million of cash and investments.

Speaker Change: Liquidity of $301 million and no debt at January 31, 2025.

Speaker Change: And with the 25% increase our board approved during the third quarter of fiscal 2025, our annual dividend rate is now $1 50 per common share.

David Watson: With that, now on to the operational review. 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 battery energy storage systems. Higher industry services revenues increased 65% to $197 million for the current quarter as compared to $119 million for the fourth quarter of fiscal 2024. This segment represented 85% of our fourth quarter revenues and reported pre-tax book income of $38 million.

Speaker Change: But that now on to the operational review.

Speaker Change: Slides, four and 5% our three reportable business segments. Our industry services is comprised of our gem of power systems and Atlantic projects Company operating units.

Speaker Change: Which focus on the construction of multiple types of power facilities.

Speaker Change: Clothing efficient gas fired power plants.

Speaker Change: Lola energy fields biomass facilities and battery energy storage systems.

Speaker Change: M Street services revenues increased 65% to $197 million for the current quarter as compared to $119 million for the fourth quarter of fiscal 2020 for this.

Speaker Change: The segment represented 85% of our fourth quarter revenues and reported pretax book income of $38 million.

David Watson: Industrial Construction Services, which is represented by TRC, had a solid quarter, although as we expected due to the timing of certain projects, revenues decreased to $33 million as compared to revenue of $41 million in the fourth quarter of fiscal 2024. TRC contributed 14% of our fourth quarter consolidated revenues and pre-tax book income of $4 million. TRC primarily provides solutions for industrial construction projects with a concentration in agriculture, petrochemical, pulp and paper, water, and power.

Speaker Change: Industrial construction services, which is represented by Trc had a solid quarter, although as we expected due to the timing of certain projects revenues decreased to $33 million as compared to revenue of $41 million in the fourth quarter of fiscal 2024.

Speaker Change: Trc contributed 14% of our fourth quarter consolidated revenues and pre tax book income of $4 million.

Speaker Change: Trc, primarily provide solutions for industrial construction projects with a concentration in agriculture, petrochemical pulp and paper water and power as many companies onshore expand their U S manufacturing operations.

David Watson: As many companies onshore expand their U.S. manufacturing operations, TRC is seeing strong market interest for their capabilities as a project partner, and with their large footprint in the southeast region of the U.S., they are well-situated in a high-growth region Finally, we have our Telecommunications Infrastructure Services Group, our smallest segment, which contributed 1% of our fourth 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. As we announced recently, we are excited about the appointment of our new CEO at S&C, Ryan Orlandi, to help drive growth objectives and increase profitability in this sector.

Speaker Change: <unk> seen strong market interest for their capabilities as their project partner and what their large footprint in the southeast region of the U S. They are well situated in high growth region for their focus industries.

Speaker Change: Finally, we have our telecommunications infrastructure services group, our smallest segment, which contributed 1% of our fourth quarter revenues.

Speaker Change: FMC 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 Wired services, primarily for federal government locations and military installations, requiring high level of security clearance.

Speaker Change: As we announced recently we are excited about the appointment of our new C. E O S. SMC, Ryan Orlando, <unk>, who helped drive growth objectives and increased profitability in this segment.

David Watson: Throughout the past year, the electrification of everything has regularly been cited as a major contributor to rising power demand and the resulting strain on the existing power grid. The increase in data centers, the reshoring of complex manufacturing. Steady adoption of EVs and accompanying charging activity are all driving the need for additional energy resources to provide reliable, high-quality power to meet 24-7 demand. Less widely reported is the fact that a significant portion of the nation's energy infrastructure is approaching the end of its operational life and that, for approximately the last decade, there has been notable underinvestment in building replacement 24-7 power facilities and energy resources.

Speaker Change: Throughout the past year. The electrification of everything has regularly been cited as a major contributor to rising power demand and the resulting strain on the existing power grid.

Speaker Change: The increase in data centers, the re shoring of complex manufacturing.

Speaker Change: Steady adoption of Evs and accompanying charging activity are all driving the need for additional energy resources to provide reliable high quality power to meet 24 seven demand.

Speaker Change: Less widely reported is the fact that a significant portion of the nation's energy infrastructure is approaching the end of its operational life and that for approximately the last decade. There has been notable underinvestment and building replacement 27 power facilities and energy resources.

David Watson: Argan is energy agnostic with the ability to construct all types of power facilities. Our broad capabilities, many years of experience, and long-standing customer and subcontract relationships are a competitive advantage in today's market environment. Judging from the current pipeline, the industry has acknowledged that the most efficient way to ensure stable grids and reliable power generation is through a combination of traditional gas-fired plants as well as renewables, and we build them all. We have a proven track record of success in the construction of complex, combined cycle and simple cycle natural gas facilities, as well as solar, biofuel, and other renewable energy resources.

Oregon is energy agnostic with the ability to construct all types of power facilities.

Speaker Change: Our broad capabilities.

Speaker Change: Many years of experience and long standing customer and subcontractor relationships are a competitive advantage in today's market environment.

Speaker Change: Judging from the current pipeline.

Speaker Change: <unk> has acknowledged that the most efficient way to ensure stable grids.

Speaker Change: I bow power generation is through a combination of traditional gas fired plants as well as renewables and we build them all.

Speaker Change: We have a proven track record of success in the construction of complex combined cycle in simple cycle natural gas facilities as well as solar biofuel and other renewable energy resources.

David Watson: The project pipeline is robust and we believe our favorable reputation as a partner of choice and our record of success building both natural gas and renewable power generating assets positions us well to drive continued growth in the current energy environment. We have been a long time leader in supporting the establishment of diversified power resources and as this slide illustrates, our current project backlog is approximately 54% natural gas projects and 42% renewable. As I just mentioned a moment ago, the energy industry recognizes that the best pathway to reliable support of an increasingly pressured Power grid is through a combination of natural gas and renewable resources.

Speaker Change: Pipeline is robust and we believe are favorable reputation as a partner of choice and our record of success building, both natural gas and renewable power generating assets positions us well to drive continued growth in the current energy environment.

Speaker Change: We had been a longtime leader in supporting the establishment of diversified power resources and as this slide illustrates our current project backlog is approximately 54% natural gas projects and 42% renewable.

Speaker Change: As I just mentioned a moment ago, the energy industry recognizes that the best pathway to reliable support of an increasingly pressured powered.

Speaker Change: Power grid is through a combination of natural gas and renewable resources as such we expect gas fired and other thermal power plants to remain the core of our business for many years to come, especially as the industry seeks to provide consistent and high quality power sources.

David Watson: As such, we expect gas-fired and other thermal power plants to remain the core of our business for many years to come, especially as the industry seeks to provide consistent and high-quality power sources. As you can see from our backlog of $1.4 billion at January 31, we have added several power plant construction jobs, and we expect to add more over the next six months. During fiscal 2025, we invested in our workforce and grew our team in preparation for this increased project load, and we are focused, as always, on delivering excellent on-time execution for our customers as we support the electric economy.

Speaker Change: As you can see from our backlog of $1 4 billion at January 31.

Speaker Change: We have added several power plant construction jobs, and we expect to add more over the next six months.

Speaker Change: During fiscal 2025, we invested in our workforce and grew our team in preparation for this increased project load and we are focused as always on delivering excellent on time execution for our customers as we support the electric economy.

David Watson: Now I'd like to provide some project updates. GEMMA is in the later stages of construction on the Trumbull Energy Center project in Lordstown, Ohio, where we're providing EPC services for a 950-megawatt natural gas-fired power As a reminder, 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 includes 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 and we expect to complete it within the next 12 months.

Speaker Change: Now I'd like to provide some project updates.

Timna: Timna. It's in the later stages of construction on the Trumbull Energy Center project in Lordstown, Ohio, where were providing EPC services for a 950 megawatt natural gas fired power plant.

Timna: As a reminder, trumbull as a combined cycle power station that will assist in fulfilling liquidity needs as the region faces out several coal fired plants from.

Timna: From start to finish the project includes design procurement construction and commissioning.

Timna: Trimble is designed to be one of the cleanest and most efficient combined cycle gas turbine projects in the PJM market and we expect to complete it within the next 12 months.

David Watson: We are also currently executing an EPC services contract for Utility Scaled Solar Field in Illinois. Project will provide 405 megawatts of electrical power and will use pre-existing transmission and utility infrastructure from a nearby retired coal power plant. Spanning more than 2,000 acres, this is our largest solar project to date.

Timna: We are also currently executing and EPC services contract for utility scale solar field in Illinois the.

Timna: The project will provide 405 megawatts of electrical power and will use pre existing transmission and utility infrastructure from a nearby retired coal power plant.

Timna: Spanning more than 2000 acres. This is our largest solar project to date.

David Watson: Turning to slide 10, we highlight one of our newer GEMMA projects, an EPC contract with Sando Lakes Energy Company, or SLEC, for a 1.2 gigawatt ultra-efficient combined cycle gas power plant in Texas. When completed, the facility will be capable of supplying approximately 800,000 homes within the ERCOT grid, and we expect to begin construction this summer. Although the contract has been executed, we are waiting on the final notice to proceed for this project.

Speaker Change: Turning to slide 10, we highlight one of our newer Jim our projects and EPC contract with Sandra Lakes Energy company or S. L. D C.

Speaker Change: For a 1.2 gigawatt ultra efficient combined cycle gas power plant in Texas.

Speaker Change: When completed the facility will be capable of supplying approximately 800000 homes within the air caught grid and we expect to begin construction. This summer.

Speaker Change: Although the contract has been executed we are waiting on the final notice to proceed for this project. So the project is not included in our $1 4 billion project backlog as of January 31.

David Watson: So the project is not included in our $1.4 billion project backlog as of January 31st.

David Watson: At the end of the fourth quarter, APC, our power industry subsidiary operating in Ireland, received full notice to proceed on the Tarbert Next Generation Power Station, a 300 megawatt biofuel plant in Ireland for SSE Thermal. This is at a project site that we are familiar with and have performed work at in the past. We have recently kicked off this project. There is tremendous demand for the capabilities and proven track record Argan has established as a full-service construction partner for MG facilities. and as it relates to construction of traditional combined cycle natural gas power plants. We are one of only a handful of companies who can execute those complex projects.

Speaker Change: At the end of the fourth quarter APC, our power industry subsidiary operating in Ireland received full notice to proceed on the Tarbert next generation power station.

Speaker Change: 300 megawatt biofuel plant in Ireland for S. S eat thermal.

Speaker Change: This is at a project site that we are familiar with they have performed work at in the past we have recently kicked off this project.

Speaker Change: There is tremendous demand for the capabilities and proven track record are again has established as a full service construction partner for Mg facilities and as it relates to construction of traditional combined cycle natural gas power plants.

Speaker Change: We are one of only a handful of companies who can execute those complex projects.

David Watson: We're very excited about the many project opportunities we're seeing and believe our expertise, the bench strength of our team, and our recognized reputation for on-time and on-budget project delivery positions us for continued backlog growth and financial strength.

Speaker Change: We're very excited about the many project opportunities, we're seeing and believe our expertise the bench strength of our team and our recognized reputation for on time and on budget project delivery positions us for continued backlog growth and financial strength.

Joshua Baugher: With that, I'll turn the call over to Josh Baugher to take us through the fourth quarter financials. Go ahead, Josh. Thanks, David, and good evening, everyone. On slide 12, we present our consolidated statements of earnings for the fourth quarter and year-end fiscal 2025. Fourth quarter revenues increased 41% to $232.5 million, reflecting particularly strong performance in our power industry services segment and solid growth in our industrial construction services segment as compared to the fourth quarter of fiscal 2024 as David detailed earlier. Project-wise, the increase in revenue is primarily related to increased quarterly construction activities for the Midwest Solar and Battery Projects, the Trumbull Energy Center, the 405-megawatt Midwest Solar Project, and the Louisiana LNG Facility.

Speaker Change: With that I'll turn the call over to Josh Bakr to take us through the fourth quarter financials go.

Speaker Change: Go ahead Josh.

Speaker Change: Thanks, David and good evening, everyone on.

Speaker Change: On slide 12, we present, our consolidated statements of earnings for the fourth quarter and year end fiscal 2025.

Speaker Change: Fourth quarter revenues increased 41% to $232 5 million, reflecting particularly strong performance in our power industry services segment, the solid growth in our industrial construction services segment as compared to the fourth quarter of fiscal 2024 as David detailed earlier.

Speaker Change: Project Wise the increase in revenues primarily related to increased quarterly construction activities for the Midwest solar and battery projects. The Trumbull Energy Center, the 405 megawatt Midwest Solar project and the Louisiana LNG facility.

Speaker Change: Yeah.

Joshua Baugher: For the three-month period ended January 31st, 2025, Argan reported a consolidated gross profit of approximately $47.6 million, which represented a gross margin of approximately 20.5% and reflected contributions from all three reportable business segments. Consolidated gross profit for the comparative quarter last fiscal year was $23.6 million, representing a gross margin of 14.4%. The increased gross profit and the improved gross margin for the recently ended quarter reflects the changing mix of projects, including increased to U.S. based revenues, strong execution, and certain positive job closeouts. Selling, general, and administrative expenses of $14.9 million for the fourth quarter of fiscal 2025 increased as compared to SG&A of $11.9 million for the comparable prior year period.

Speaker Change: For the three months period ended January 31, 2025 are again reported consolidated gross profit of approximately $47 6 million.

Speaker Change: Which represented a gross margin of approximately 25% and reflected contributions from all three reportable business segments.

Speaker Change: Consolidated gross profit for the comparative quarter last fiscal year was $23 6 million, representing a gross margin of 14, 4%.

Speaker Change: The increased gross profit and the improved gross margin for the recently ended quarter reflects the changing mix of projects, including increased U S based revenues strong execution and certain positive job closeouts.

Speaker Change: Selling general and administrative expenses of $14 9 million for the fourth quarter of fiscal 2025 increased as compared to SG&A of $11 9 million for the comparable prior year period, but these expenses decreased as a percentage of revenues to six 4% in the fourth quarter of fiscal 2025 as compared to <unk>.

Joshua Baugher: But these expenses decreased as a percentage of revenues to 6.4% in the fourth quarter of fiscal 2025 as compared to 7.2% in last year's fourth quarter. Net income for the fourth quarter of the fiscal year was $31.4 million, or $2.22 per diluted share, compared to $12 million, or $0.89 per diluted share, for last year's comparable quarter. EBITDA, Earnings Before Interest, Taxes, Depreciation, and Advertisation, for the quarter ended January 31, 2025, increased to $39.3 million, compared to $17.6 million for the same period of last year. Looking at our full fiscal 2025 performance, revenues increased by 52% to $874.2 million as compared to revenues of $573.3 million in the prior year.

Speaker Change: Seven 2% in last year's fourth quarter.

Speaker Change: Net income for the fourth quarter of the fiscal year was $31 4 million or $2 22 per diluted share.

Speaker Change: Paired to 12 million or <unk> 89 per diluted share for last year's comparable quarter.

Speaker Change: EBITDA earnings before interest taxes, depreciation and amortization for the quarter ended January 31, 2025 increased to $39 3 million compared to $17 6 million for the same period of last year.

Speaker Change: Looking at our full fiscal 2025 performance revenues increased by 52% to $874 2 million as compared to revenues of $573 3 million in the prior year. The overall revenue growth reflects increased revenues in our power industry services and industrial construction service.

Joshua Baugher: The overall revenue growth reflects increased revenues in our power industry services and industrial construction services segment. Our consolidated gross margin of 16.1% for fiscal 2025 increased as compared to gross margin of 14.1% for fiscal 2024, primarily due to the same reasons I previously described for the quarter. The prior year was also meaningfully impacted by a loss on the Killroot project. Gross margins for our power industry services, our industrial construction services, and our telecommunications infrastructure services segments were 16.7%, 13.3%, and 23.8% respectively for fiscal 2025, as compared to 14.1%, 12.9%, and 26.5% respectively for fiscal 2024.

Speaker Change: Some segments.

Speaker Change: Our consolidated gross margin of 16, 1% for fiscal 2025% increase as compared to gross margin of 14, 1% for fiscal 2024, primarily due to the same reasons I previously described for the quarter.

Speaker Change: The prior year was also meaningfully impacted by a loss on the <unk> project.

Speaker Change: Gross margins for our power industry services, our industrial construction services in our telecommunications infrastructure services segments were 16, 7% 13, 3% and 23, 8% respectively for fiscal 2025 as compared to 14, 1% 12, 9%.

Speaker Change: And 26, 5% respectively for fiscal 2024.

Joshua Baugher: SG&A expenses increased to $52.8 million for fiscal 2025 as compared to $44.4 million for fiscal 2024, but decreased to 6% of revenues in the fiscal year compared to 7.7% of revenues in the prior fiscal year. Net income for the fiscal year was $85.5 million, or $6.15 per diluted share, compared to $32.4 million of net income, or $2.39 per diluted share, for fiscal 2024. EBITDA was $113.5 million for fiscal 2025 compared with EBITDA of $51.3 million for fiscal 2024.

Speaker Change: SG&A expenses increased to $52 8 million for fiscal 2025, as compared to $44 4 million for fiscal 2024, but decreased to 6% of revenues in the fiscal year compared to seven 7% of revenues in the prior fiscal year.

Speaker Change: Net income for the fiscal year was $85 5 million or $6 15 per diluted share compared to $32 4 million of net income or $2 39 per diluted share for fiscal 2024.

Speaker Change: EBITDA was $113 5 million for fiscal 2025, compared with EBITDA of $51 3 million for fiscal 2024.

Joshua Baugher: With that, I'll turn the call back to David. Thanks, Josh. Turning to slide 13, our consolidated project backlog was $1.4 billion at January 31, 2025, representing backlog growth of 80% compared to the prior fiscal year-end. As I said earlier in the call, the project pipeline is robust and growing. Our current backlog includes fully committed projects in both the power industry services and industrial services segments, including a strong representation of renewable projects. However, with the marketplace demand for natural gas facilities, we anticipate that our backlog will be comprised of a larger portion of traditional gas-powered projects in the coming year.

David Watson: With that I'll turn the call back to David.

David Watson: Thanks, Josh turning to slide 13, our consolidated project backlog was $1 4 billion at January 31, 2025, representing backlog growth of 80% compared to the prior fiscal year end.

David Watson: As I said earlier in the call. The project pipeline is robust and growing our current backlog includes fully committed projects in both the power industry services and industrial services segments, including a strong representation of renewable projects.

David Watson: However, with the marketplace demand for natural gas facilities, we anticipate that our backlog will be comprised of a larger portion of traditional gas power projects in the coming years.

Joshua Baugher: We plan to sustain and continue to nurture our renewable business, but our natural gas projects will be the core of our growth engine for the foreseeable future.

David Watson: We plan to sustain and continue to nurture our renewable business, but our natural gas projects will be the core of our growth engine for the foreseeable future.

Joshua Baugher: Slide 14 highlights certain major projects currently underway or expected to begin in the near term. Earlier, I touched on several projects listed here, such as Trumbull, the 405 megawatt utility scaled solar project, and two of our new contract WINS, SLEC and Tarbert. Additionally, during the fourth quarter, we entered into an EPC contract and received the corresponding full notice to proceed with a customer for an approximately 700 megawatt combined cycle natural gas fired power plant located in the United States. This large project is already underway and fully reflected in our year-end backlog. Other significant projects include a subcontract to install five 90 megawatt gas turbines.

David Watson: Slide 14 highlights certain major projects currently underway are expected to begin in the near term.

David Watson: Earlier I touched on several projects listed here such as Trumbull. The 405 megawatt utility scale solar project in two of our new contract wins as LDC into Harvard.

David Watson: Additionally, during the fourth quarter, we entered into an EPC contract and received the corresponding full notice to proceed with a customer for an approximately 700 megawatt combined cycle natural gas fired power plant located in the United States. This large project is already underway and fully reflected in our year end <unk>.

David Watson: Claude.

David Watson: Other significant projects included subcontract to install 590 megawatt gas turbines to provide dedicated power to an LNG facility in Louisiana, which we are expected to finish during the first half of this year.

Joshua Baugher: to provide dedicated power to an LNG facility in Louisiana, which we are expected to finish during the first half of this year. We have also completed two of the three solar plus battery projects in Illinois during fiscal 2025 and expect to finish the third during fiscal 2026. Finally, you'll see two separate water treatment plant projects being performed by TRC. The industry is seeing strong demand, particularly for natural gas projects, and our backlog reflects the scope of our capabilities and the strategic diversification of our project mix to include renewables as well as traditional gas-fired builds.

David Watson: We have also completed two of the three solar plus battery projects in Illinois during fiscal 2025 and expect to finish the third during fiscal 2026.

David Watson: Finally, you'll see two separate water treatment plant projects being performed by Trc.

David Watson: The industry has seen strong demand, particularly for natural gas projects in our backlog reflects the scope of our capabilities and the strategic diversification of our project mix to include renewables as well as traditional gas fired builds.

Joshua Baugher: As we move through the current demand environment, we anticipate that natural gas projects will be more heavily represented in our project We further strengthened our balance sheet during the fourth quarter. At January 31, 2025, we had approximately $525 million in cash, cash equivalents, and investments, generating meaningful investment yields. Our net liquidity was $301 million, and we had no debt. Stockholders' equity was $352 million at January 31, 2025. This liquidity bridge demonstrates that our business model ordinarily requires a low level of capital expenditure. Our net liquidity of $301 million at January 31, 2025 has increased $56 million compared to net liquidity at January 31, 2024, while at the same time enabling us to return $26 million of capital to our shareholders during the year.

David Watson: As we move through the current demand environment, we anticipate that natural gas projects will be more heavily represented in our project mix.

David Watson: We further strengthened our balance sheet during the fourth quarter at January 31, 2025, we had approximately $525 million in cash cash equivalents and investments.

David Watson: <unk> meaningful investment yields our net liquidity was $301 million and we had no debt.

David Watson: <unk> equity was $352 million at January 31, 2025.

David Watson: This liquidity bridge demonstrates that our business model ordinarily requires a low level of capital expenditures.

David Watson: Our net liquidity of $301 million at January 31, 2025 has increased $56 million compared to net liquidity at January 31, 2024, while at the same time, enabling us to return $26 million of capital to our shareholders during the year.

Joshua Baugher: Since November 2021, when we began our share buyback program, we have returned a total of approximately $102.5 million to shareholders as we've repurchased approximately 2.7 million shares of our common stock, or approximately 17% of our shares outstanding at the beginning of the program, and an average price of $37.91 per share. Additionally, in September 2024, we increased the company's quarterly dividend by 25% from $0.30 to $0.375 per share, reflecting the strength of our business and increasing our annual run rate to $1.50 per share. This increase comes just a year after we raised our quarterly dividend to $0.30 per share in September of 2023.

David Watson: Since November 2021, when we began our share buyback program. We have returned a total of approximately $102 5 million to shareholders as we repurchased approximately two 7 million shares of our common stock or approximately 17% of our shares outstanding at the beginning of the program and an average.

David Watson: Price of $37 91 per share.

David Watson: Additionally in September 2024, we increased the company's quarterly dividend by 25% from 30.

David Watson: 237.5 cents per share, reflecting the strength of our business and increasing our annual run rate to $1 50 per share. This.

David Watson: This increase comes just a year after we raised our quarterly dividend to <unk> 30 per share in September of 2023.

Joshua Baugher: Together, these two increases represent an aggregate 50% increase in our annual dividend run rate in less than two years.

David Watson: Together. These two increases represent an aggregate, 50% increase in our annual dividend run rate and less than two years.

Joshua Baugher: Our company is dedicated to driving long-term value creation for shareholders. Our pipeline is stronger than it has ever been, and we remain focused on delivering long-term value to shareholders. Since 2008, we have increased our tangible book value and cumulative dividends per share to record levels. We are in the midst of an extraordinary time in the power industry. Aging power infrastructure and decade-long underinvestment in power facilities has brought us to an inflection point where hundreds of facilities, both gas-powered and renewable, need to be built now. Argan is one of only a few companies with the capabilities to construct both the complex combined and simple cycle natural gas plants and renewable energy resources that are necessary to reliably and affordably power the electric economy.

David Watson: Our company is dedicated to driving long term value creation for shareholders. Our pipeline is stronger than it has ever been and we remain focused on delivering long term value to shareholders.

David Watson: Since 2008, we have increased our tangible book value in cumulative dividends per share to record levels.

David Watson: We are in the midst of an extraordinary time in the power industry.

David Watson: Aging power infrastructure and decade long Underinvestment in power facilities has brought us to an inflection point, where one hundreds of facilities, both gas powered and renewable need to be built now.

David Watson: Again, it's one of only a few companies with the capabilities to construct both the complex combined and simple cycle natural gas plants and renewable energy resources that are necessary to reliably and affordably powered electric economy.

Joshua Baugher: With the pipeline of opportunities we are seeing, we are very optimistic about our growth prospects for the next several years.

David Watson: The pipeline of opportunities. We are seeing we are very optimistic about our growth prospects for the next several years.

David Watson: To close, we remain focused on our long-term growth strategy. leverage our core competencies to capitalize on existing and emerging market opportunities. maintain disciplined risk management with the goal of improving our project management effectiveness and minimizing costly project overrun. strengthen our position as a partner of choice in the construction of power generation facilities that power the electric economy and maintain 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. We are energized by the strong pipeline of projects ahead as our industry prepares to establish the dependable energy resources necessary to power the reshoring of complex manufacturing operations.

David Watson: To close we remain focused on our long term growth strategy.

David Watson: Leverage our core competencies to capitalize on existing and emerging market opportunities.

David Watson: Maintaining disciplined risk management with the goal of improving our project management effectiveness and minimizing costly project overruns.

David Watson: To strengthen our position as a partner of choice in the construction of power generation facilities that power the electric economy and maintain grid reliability.

David Watson: And last but not least drive organic growth, while also being alert for acquisition opportunities that makes sense for our business through thoughtful capital allocation.

David Watson: We are energized by the strong pipeline of projects ahead as our industry prepares to establish the dependable energy resources necessary to power. The re shoring of complex manufacturing operations, the growing number of data centers and increased EV charging among other demands.

David Watson: The growing number of data centers and increased EV charging among other demands. It's important to note that the current build-out of power facilities is in its early stages and that the combined cycle projects we take on typically have a duration of 3 to 4 years. The volume of projects we're seeing coming to market, we believe our runway for continued growth is substantial. We are focused on leveraging our capabilities, financial flexibility, and longstanding customer and industry relationships to drive continued growth as we pursue new opportunities to build the energy infrastructure needed today, tomorrow, and beyond.

David Watson: It is important to note that the current build out our power facilities is in its early stages and that the combined cycle projects. We take on typically you have a duration of three to four years.

David Watson: The volume of projects, we're seeing coming to market. We believe our runway for continued growth are substantial we are focused on leveraging our capabilities financial flexibility and long standing customer and industry relationships to drive continued growth as we pursue new opportunities to build the energy infrastructure needed today.

David Watson: <unk> tomorrow and beyond.

David Watson: I'd like to thank our employees for their dedication to executing each job on time and on budget, and to thank our shareholders for their continued support.

David Watson: I'd like to thank our employees for their dedication to executing each job on time and on budget and to thank our shareholders for their continued support.

David Watson: And before we open it up for questions, I wanted to mention that we'll be holding an Investor Day in about a week on Tuesday, April 8, 2025. We're holding the event at the New York Stock Exchange and we'd love for you to join us. Today we'll kick off at 8.30am and will be an opportunity for you to learn more about Argan and meet the management teams of some of our operating subsidiaries. I hope we'll see many of you there.

David Watson: And before we open it up for questions I wanted to mention that we'll be holding an investor day in about a week on Tuesday April eight 2025.

David Watson: We're holding the event at the New York Stock Exchange and we'd love for you to join US The day will kick off at 830, a M and will be an opportunity for you to learn more about our again and meet the management teams in some of our operating subsidiaries.

David Watson: I hope we will see many of you there with that operator, let's open it up for questions.

Operator: With that, operator, let's open it up for questions. Ladies and gentlemen, the floor is now open for questions. If you wish to join the queue to ask a question at this time, please press star 1 on your telephone keypad.

Speaker Change: Certainly ladies and gentlemen.

David Watson: The floor is now open for questions.

David Watson: If you wish to join the queue to ask a question at this time. Please press star one on your telephone keypad, we do ask if listening on speaker phone today that you pick up your handset while asking your question to provide optimal sound quality. Once again. Please press star one on your keypad at this time, if you wish to join the queue to ask.

Operator: We do ask, if listening on speakerphone today, that you pick up your handset while asking your question to provide optimal sound quality. Once again, please press star 1 on your keypad at this time if you wish to join the queue to ask a question. Please hold a moment while we poll for questions.

David Watson: A question please hold a moment, while we poll for questions.

Christopher Moore: And the first question today is coming from Chris Moore from CJS Security. Chris, your line is live. Please go ahead. All right. Wow, congrats guys. That's a great quarter and Outlook just keeps getting better. Could you maybe break down the 20.5% gross margin a bit further? I know Josh went into it a little bit, but anything else? It sounds like there's some job closeouts in there. I don't know if you're close enough on Trumbull to be getting anything from there.

Speaker Change: And the first question today is coming from Chris Moore from CJS Securities. Chris. Your line is live. Please go ahead.

David Watson: Alright.

David Watson: Wow.

Brad skies.

Speaker Change: That's a great quarter and outlook just keeps getting better could you maybe break down that 25% gross margin a bit further I know Josh went into a little bit but anything else. It sounds like there is some.

Speaker Change: Some job Closeouts in there I don't know if if if if you're close enough on trumbull to be getting anything from there just.

David Watson: any anything that could help me better understand that, you know, such a big Chris, good evening and great question on the margins. I knew that this would kind of jump out to you and other folks, and it really comes down to The fundamentals that we've put in place here at Argan, strong execution across all the businesses, higher margins are reflecting the shifting project mix, part of which includes more U.S. based and power revenues for the quarter versus in the past. We were able to avoid certain risks and related costs and close out a number of jobs in our power and industrial segments positively.

Speaker Change: Anything that could help me better understand that such a big number.

Speaker Change: Yes.

Chris Moore: Chris Good evening and a great question on the margin side I knew that this would kind of jump out to you and other folks and it really comes down to it.

Chris Moore: The fundamentals that we've put in place here at arc and strong execution across all the businesses.

Chris Moore: Higher margins are reflecting the shift in project mix part of which includes more U S based and power revenues for the quarter versus in the past.

We were able to avoid certain risks and related costs and closed out a number of jobs in our power and industrial segments positively.

David Watson: Keep in mind, the prior year's fourth quarter had some margin degradation from the Killroot project.

Chris Moore: I mean keep in mind.

Chris Moore: Prior year's fourth quarter had had some margin degradation.

Chris Moore: The degradation from the Kilroy project.

David Watson: We may not see margins reflecting this quarter's levels often, where a lot of things went right all at the same time, but we would expect our consolidated gross margin in general to benefit with the expected increase of gas projects, which are, frankly, higher risk, higher reward type jobs. And also along those lines, Chris, our project backlog, if you might recall earlier in the prior year, had more T&M versus fixed price, and now we have a larger portion of fixed price contracts today. Also, if I've noted in the past, we are generally in a good market, which allows us to be selective and focus on jobs that are best for our organization.

Chris Moore: We may not see margins, reflecting this quarter's levels, often where a lot of things went right. All at the same time, but we would expect our consolidated gross margin in general to benefit with the expected increase of gas projects, which are frankly higher risk higher higher a higher reward type jobs.

Chris Moore: So and also along those lines, Chris our project backlog, if you might recall earlier in the prior year was had more TM versus fixed price and now we have a larger portion of fixed price contracts today.

Chris Moore: And also as I've noted in the past we are generally in a good market, which allows us to be selective and focus on jobs that are best for our organization.

Christopher Moore: Got it. Yeah, that's where I was going next.

Speaker Change: Got it yeah, that's where I was going next it sounds like given the number of new projects out there. The relatively few number of firms capable of doing them I would I would guess just in general the the level of of our margin will go up a little bit different from that as well.

Christopher Moore: It sounds like given the number of new projects out there, the relatively few number of firms capable of doing them, I would guess just in general, the level of margin will go up a little bit just from that as well.

David Watson: The 1.2 gigawatt project, what exactly has to happen, David, to get that into backlog? Yes, so getting the full notice to proceed, we feel very confident that that project is going to start sometime this summer, and that's what we frankly put in our press release. So once we get released on that job, we'll put the whole contract into project backlog. So it's not reflected in our current backlog, which is $1.4 billion.

Chris Moore: The the 1.2 gigawatt project, what what exactly has to happen David to get that into backlog.

Chris Moore: Yeah, so getting the full notice to proceed we feel very confident that that project is going to start sometime this summer.

Chris Moore: That's what we frankly put in our press release. So once we get released on that job will put the whole contract into project backlog. So it is not reflected in our current backlog, which is $1 4 billion.

Chris Moore: Right.

Christopher Moore: What about on the interconnect side?

Speaker Change: What about on the interconnect side.

David Watson: Any reason to think the new administration can have a positive impact there? Any other positive drivers that, you know, give you a little more comfort that the interconnect piece of this equation is getting better? Yeah, honestly, I think there's been a fair amount of progress over the last year or so by the grid operators themselves. I think they've been able to get through some of those bottlenecks. There's still some that are there, and it's always a constant challenge for the industry. But we are seeing a little bit greater progress for getting jobs approved. Frankly, Chris, though, I think the larger headwind is more related to kind of getting your turbines, getting the long lead supply change, which should over time abate, given that the manufacturers are in overdrive trying to increase their capacity.

Speaker Change: Any reason to think the new administration can have a positive impact there or any other positive drivers that are you know give you a little more comfort that the interconnect piece of this equation is is just getting better.

Speaker Change: Yeah, I I honestly I think there's been a fair amount of progress over the last year or so by the by the.

Speaker Change: The grid operators themselves are I think they've been able to to look to get through some of those bottlenecks. There. There is still some that are there.

Speaker Change: And it's it's always a constant challenge for the industry, but we are seeing a little bit greater progress for getting jobs approved frankly, Chris, though I think that the larger headwind that's more related to kind of getting your turbines getting the long lead supply change, which should over time.

Speaker Change: Given that the manufacturers are in overdrive tried to increase their capacity I think the other other thing to keep in mind.

David Watson: I think the other other thing to keep in mind in general is. To the extent that there's general deregulation with the current administration, that might be able to streamline projects getting approved and getting through all the various things that they have to do to be able to break ground. Got it. Perfect.

Speaker Change: In general is.

Speaker Change: To the extent that there's general deregulation.

Speaker Change: With the current administration that might be able to streamline projects getting getting approved and getting through all the various things that they have to do to be able to break ground.

Speaker Change: Got it perfect maybe just last one for me the I'm just trying to get a sense of the the pace on this foreign you five megawatt solar project. So that's.

Christopher Moore: Maybe just last one for me. I'm just trying to get a sense of the pace on this 405 megawatt solar project. So it's You're talking about completing that sometime in calendar 20... Yes, that is a massive 2,000 acre project that we are executing really well, similar to all of our other projects, which is reflective in our gross profit margin. Got it. Are you at kind of peak run rate at this point in time or is that still ramping? Keep in mind, renewables aren't as, their run rates don't get, they don't peak as much as gas jobs do.

Speaker Change: It's it's you're you're talking about completing that sometime in calendar 'twenty six.

Speaker Change: Yes, I mean that that is a massive 2000 acre acre project that we are.

Speaker Change: Executing really well similar to all of you know all of our other projects, which is reflected in our in our gross profit margin.

Got it are you at kind of a peak.

Speaker Change: Peak run rate at this point in time or is that still it's still ramping.

Speaker Change: It I mean keep in mind renewables arent as their run rates don't get they don't peak as much as gas jobs do there a little bit flatter in nature, but yes. It is it is.

David Watson: They're a little bit flatter in nature, but yes, it is, we're in the midst of things there.

Speaker Change: We're in the midst of things there.

Speaker Change: Perfect all right I'll leave it there thanks guys.

Christopher Moore: All right, I'll leave it there. Thanks, guys. Sure, Chris.

Chris Moore: Sure Chris.

Speaker Change: Thank you. Your next question is coming from Rob Brown from Lake Street Capital Rob. Your line is live. Please go ahead.

Robert Brown: Your next question is coming from Rob Brown from Lake Street Capital. Rob, your line is live. Please go ahead.

David Watson: Hi David, congratulations on a strong quarter. On the project pipeline, I know you talked a lot about it, but can you give us a sense of how many projects are sort of in that pipeline? Yeah, I mean, the pipeline is largely U.S. based, largely, you know, and when I speak to the pipeline, I'm referring to, you know, the pipeline over the next six months, but also the pipeline in the years down the road as well, given that we are, again, said earlier in the call, in the early innings of this build out. No surprise, Texas is a meaningful area for us, but also throughout the United States.

Speaker Change: Hi, David Congratulations on a strong quarter.

Speaker Change: Thanks, Rob.

Speaker Change: The project pipeline I know you talked a lot about it but could you give us a sense of how many projects are sort of in that pipeline and maybe the regions that are active in it.

Speaker Change: Maybe you know sort of a sense of how those.

Speaker Change: California and over the next 18 months.

Speaker Change: Yeah, I mean, the pipeline is largely U S based largely.

Speaker Change: And when I speak to the pipeline I'm, referring to the pipeline over the next six months, but also the pipeline and in the years down the road as well given that we are are are again instead of set earlier in the call in the early innings.

Speaker Change: Of this build out.

Speaker Change: No no no surprise, a Texas is it meaningful area for us, but also throughout the United States.

David Watson: As it relates to, you know, we mentioned that we planned to be adding to our project backlog over the next six months from where we are as of 1-31. And that's, you know, we're pretty excited about that. And that's obviously just going to drive our opportunity for more revenues over the next four years. Great.

Speaker Change: As it relates to you know we mentioned that we planned it to be adding to our project backlog over the next six months from where we are as of $1 31, and that's a you know we're pretty excited about that and that's obviously just going to drive our opportunity for four more revenues over the next four years.

Speaker Change: Okay great.

David Watson: And in terms of the customers that you're pursuing, has that changed over time or is that still the independent power producer? Great question. I mean, we're talking to to all potential customers, to be clear, have we historically worked primarily with independent power producers that that has that is historically accurate.

Speaker Change: And in terms of the customers that are that you're pursuing how has that changed over time or is that still the independent power producers.

Speaker Change: And.

Speaker Change: Kind of the same set of people that you know are there new kind of potential customers like data directly to data center operators coming into that into the mix.

Speaker Change: Great question, I mean, we're talking two to all potential customers to be clear.

Speaker Change: We historically worked primarily with independent power producers that that has that is historically accurate and and so at the end of the day, though yeah. We are.

David Watson: And and so, at the end of the day, though, you know, we are, you know, looking to to build the right jobs in the right place with the right contract with the right customer. And, and that that includes everybody. But currently, it's primarily been with IP Great.

Speaker Change: Looking to build the right jobs and the right place with the right contract with the right customer and that that includes everybody, but currently its its primarily been with IP piece.

Speaker Change: Okay great.

Robert Brown: And then let's say in the industrial business that was down a little bit year over year on project timing, how do you see the trend line there playing out over Yeah, no, good.

Speaker Change: And then lastly on the industrial business that that was down a little bit year over year on project timing, how do you see the trend line. There are playing out over the next year is that.

Speaker Change: Sort of picking up or are there.

Speaker Change: Stability there at this point.

Speaker Change: Yeah, No I'm glad you asked that question because it did have a little bit of a drop in its backlog as of $1 31.

David Watson: I'm glad you asked that question. Because it did have a little bit of a drop in its backlog as of 131. But we're seeing really strong demand for TRC. And frankly, subsequent subsequent to year end, we've added over 40 million in new contracts related to water treatment plant and some data center activities. So we believe TRC will, you know, We've seen it grow its revenue come middle of the year, later in the year, and continue to grow like it's been growing over the last several years. In general, looking forward, all these additions we've made to Project Backlog in the power space, it takes time for those revenues to start generating in earnest.

Speaker Change: But we're seeing really strong demand for Trc in and frankly subsequent subsequent to year end, we've added over $40 million in new contracts related to water treatment plant and some data center activity. So we we we believe trc.

Speaker Change: Will.

Speaker Change: Grow its revenue kind of come middle of the year later in the year and continue to grow like it has been growing over the last several years I mean in general kind of looking forward.

Speaker Change: All of these additions we've made the project backlog in the power space.

Speaker Change: It takes time for those revenues to start generating in earnest so.

Robert Brown: So, from a revenue cadence standpoint, we might expect a small decrease in our overall revenues for the upcoming quarter here before increasing throughout the year for the overall organization. Again, we are in a significant growth phase and looking forward to it. Okay, thank you.

Speaker Change: From a revenue cadence standpoint, you know we might expect a small decrease in our overall revenues for the upcoming quarter here before.

Speaker Change: Tracy and throughout the year for the overall organization again, we are in a significant growth phase.

Speaker Change: And looking forward to it.

Speaker Change: Okay. Thank graduations again.

Robert Brown: Congratulations again. Thank you.

Speaker Change: Thank you.

Speaker Change: Thank you.

Operator: This does conclude today's Q&A session.

Speaker Change: This does conclude today's Q&A session I would now like to turn the floor back to David Watson for closing remarks.

David Watson: I would now like to turn the floor back to David Watson for closing remarks. Thank you all for participating in today's call, our first in our new offices here in Arlington, Virginia. As a reminder, please join us for our first Investor Day in New York on April 8th, and you are always welcome to come visit us here in Virginia.

Speaker Change: Thank you all for participating in today's call are our first and our new offices here in Arlington, Virginia. As a reminder, please join US for our first Investor Day in New York on April eight and you're always welcome to come visit US here in Virginia, We look forward to speaking with you again, when we report our first quarter fiscal 2026 results have a great evening.

David Watson: We look forward to speaking with you again when we report our first quarter fiscal 2026 results.

Operator: Have a great evening. Thank you.

Speaker Change: Thank you. This does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you once again for your participation.

Operator: This does conclude today's conference call.

Operator: You may disconnect your phone lines at this time and have a wonderful day. Thank you once again for your participation.