SOURCE: AAON

August 06, 2008 07:00 ET

AAON Reports Record Sales and Earnings

TULSA, OK--(Marketwire - August 6, 2008) - AAON, Inc. (NASDAQ: AAON) today announced its operating results for the second quarter and six-month period ended June 30, 2008.

In the quarter, net sales were a record high of $74.8 million, up 6% from $70.8 million during the corresponding period in 2007, and net income also reached a record level, up 13% to $7.8 million or $0.43 per diluted share, compared to $6.9 million or $0.36 per diluted share for the same period a year ago. Net sales for the first six months of 2008 were up 8% to a record $140.2 million, compared to $129.5 million in 2007, and earnings increased by 8% to a record $14.2 million or $0.78 per diluted share, compared to $13.2 million or $0.69 per diluted share. Per share earnings reflect a three-for-two stock split effective August 21, 2007.

Norman H. Asbjornson, President and CEO, stated that, "The increase in sales was attributable to our diversified customer mix, an excellent response to many of our new and redesigned products and price increases made in late 2007. The increase in net income resulted from both higher volume and improved productivity."

Mr. Asbjornson added that, "Based on the first half year results and other relevant factors, we expect a strong third quarter and record sales and earnings for the year 2008."

The Company will host a conference call today at 4:15 pm EDT to discuss the second quarter results. To participate, call 1-877-852-6576.

Certain statements in this news release may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements.





                       AAON, Inc., and Subsidiaries
                    Consolidated Statements of Income
                                (Unaudited)



                              Three Months Ended       Six Months Ended
                             June 30,    June 30,    June 30,    June 30,
                               2008        2007        2008        2007
                            ----------  ----------- ----------  ----------
                                (in thousands, except per share data)


Net sales                   $   74,781  $    70,835 $  140,237  $  129,463

Cost of sales                   56,791       55,237    106,595      98,143
                            ----------  ----------- ----------  ----------

      Gross profit              17,990       15,598     33,642      31,320

Selling, general and
administrative expenses          6,129        5,270     12,031      11,017
                            ----------  ----------- ----------  ----------

      Income from
       operations               11,861       10,328     21,611      20,303

Interest expense and other         (16)           3        (19)         (7)

Interest income                      6            3         27           6

Other income                       117           82        247         270
                            ----------  ----------- ----------  ----------

Income before income taxes      11,968       10,416     21,866      20,572

Income tax provision             4,208        3,539      7,672       7,378
                            ----------  ----------- ----------  ----------

      Net income            $    7,760  $     6,877 $   14,194  $   13,194
                            ==========  =========== ==========  ==========

Earnings Per Share:
   Basic                    $     0.43  $     0.37* $     0.79  $    0.71*
                            ==========  =========== ==========  ==========
   Diluted                  $     0.43  $     0.36* $     0.78  $    0.69*
                            ==========  =========== ==========  ==========

Weighted Average Shares
 Outstanding:
   Basic                        17,740      18,691*     17,894     18,627*
                            ==========  =========== ==========  ==========
   Diluted                      18,145      19,336*     18,302     19,492*
                            ==========  =========== ==========  ==========

* Reflects three-for-two stock split effective August 21, 2007.





                       AAON, Inc., and Subsidiaries
                        Consolidated Balance Sheets
                                (Unaudited)



                                                   June 30,    December 31,
                                                     2008         2007
                                                ------------- -------------
                                                (in thousands, except share
                                                    and per share data)
Assets
Current assets:
   Cash and cash equivalents                    $         505 $         879
   Accounts receivable, net                            49,555        38,813
   Inventories, net                                    31,389        31,849
   Prepaid expenses and other                             725           442
   Deferred tax assets                                  4,459         4,312
                                                ------------- -------------
Total current assets                                   86,633        76,295
Property, plant and equipment
   Land                                                 2,323         2,354
   Buildings                                           32,403        32,211
   Machinery and equipment                             83,903        82,872
   Furniture and fixtures                               7,000         6,912
                                                ------------- -------------
      Total property, plant and equipment             125,629       124,349
      Less:  Accumulated depreciation                  68,379        63,579
                                                ------------- -------------
   Property, plant and equipment, net                  57,250        60,770
   Note receivable, long-term                              75            75
                                                ------------- -------------
Total assets                                    $     143,958 $     137,140
                                                ============= =============


Liabilities & Stockholders’ Equity
Current liabilities:
   Revolving credit facility                    $       4,087 $           -
   Current maturities of long-term debt                    91            91
   Accounts payable                                    18,023        15,059
   Dividends payable                                    2,848         2,943
   Accrued liabilities                                 24,837        19,414
                                                ------------- -------------
Total current liabilities                              49,886        37,507

Other long-term liabilities                               194           239
Deferred tax liabilities                                3,576         3,974
Commitments and contingencies
Stockholders’ equity:
   Preferred stock, $.001 par value, 7,500,000
    shares authorized, no shares issued
   Common stock, $.004 par value, 75,000,000
    shares authorized, 17,281,448 and
    18,054,246 issued and outstanding at June
    30, 2008 and December 31, 2007,
    respectively                                           71            73
   Additional paid-in capital                               -             -
   Accumulated other comprehensive income               1,706         1,942
   Retained earnings                                   88,525        93,405
                                                ------------- -------------
Total stockholders’ equity                             90,302        95,420
                                                ------------- -------------
Total liabilities and stockholders’ equity      $     143,958 $     137,140
                                                ============= =============





                       AAON, Inc., and Subsidiaries
                  Consolidated Statements of Cash Flows
                                (Unaudited)


                                               Six Months     Six Months
                                                  Ended          Ended
                                              June 30, 2008  June 30, 2007
                                              -------------  -------------
                                                     (in thousands)
Operating Activities
  Net income                                  $      14,194  $      13,194
    Adjustments to reconcile net income to
     net cash provided by operating
     activities:
      Depreciation                                    4,838          4,660
      Provision for losses on accounts
       receivable                                        13            234
      Share-based compensation                          413            311
      Excess tax benefits from stock options
       exercised                                       (229)        (1,814)
      Gain on disposition of assets                      (1)           (11)
      Deferred income taxes                            (615)          (676)
      Changes in assets and liabilities:
         Accounts receivable                        (10,832)        (9,439)
         Inventories, net                               414         (4,821)
         Prepaid expenses and other                    (283)          (247)
         Accounts payable                             3,393          1,324
         Accrued liabilities                          5,279          7,105
                                              -------------  -------------
   Net cash provided by operating activities         16,584          9,820
                                              -------------  -------------

Investing Activities
   Proceeds from sale of property, plant and
    equipment                                             1             21
   Capital expenditures                              (1,390)        (7,209)
                                              -------------  -------------
   Net cash used in investing activities             (1,389)        (7,188)
                                              -------------  -------------

Financing Activities
   Borrowings under revolving credit facility        12,853          8,898
   Payments under revolving credit facility          (8,766)        (8,898)
   Payments of long-term debt                           (45)           (54)
   Stock options exercised                              394          1,000
   Excess tax benefits from stock options
    exercised                                           229          1,814
   Repurchase of stock                              (17,264)        (2,932)
   Cash dividends paid to stockholders               (2,943)        (2,465)
                                              -------------  -------------
   Net cash used in financing activities            (15,542)        (2,637)
                                              -------------  -------------
Effect of exchange rate on cash                         (27)            43
                                              -------------  -------------
Net increase (decrease) in cash and cash
 equivalents                                           (374)            38
                                              -------------  -------------
Cash and cash equivalents, beginning of year            879            288
                                              -------------  -------------
Cash and cash equivalents, end of period      $         505  $         326
                                              =============  =============

Contact Information

  • For Further Information:
    Jerry Levine
    Ph: (914) 244-0292
    Fax: (914) 244-0295
    Email: Email Contact