SOURCE: AAON

AAON

March 15, 2010 07:00 ET

AAON Reports 2009 Results and Record Fourth Quarter Profits

TULSA, OK--(Marketwire - March 15, 2010) - AAON, INC. (NASDAQ: AAON), today announced its operating results for the year 2009. Sales decreased 12% to $245.3 million from $279.7 million in 2008, and net income decreased 3% to $27.7 million compared to $28.6 million in the previous year. Year 2009 earnings benefited by a $2.2 million reduction in cost of sales, of which $1.2 million occurred in the fourth quarter, resulting from hedging of copper ($1.4 million and $0.8 million net of tax, respectively).

Norman H. Asbjornson, President and CEO, stated that, "The decrease in sales was attributable primarily to current economic conditions. The decrease in net income resulted from the decline in sales."

Sales in the fourth quarter of 2009 declined by 10% to $54.2 million, from $60.2 million in 2008, while net income for the fourth quarter increased 3% to $6.2 million, compared to $6.0 million in 2008. Net income was the highest for any fourth quarter in the Company's history.

Earnings per diluted share for both 2009 and 2008 were $1.60, based upon 17.3 million and 17.9 million diluted shares outstanding, respectively. Earnings for the fourth quarter of 2009 were $0.36 per diluted share compared to $0.35 per diluted share in 2008, based upon 17.3 million diluted shares outstanding, respectively.

Mr. Asbjornson said, "We anticipate adverse market conditions for the foreseeable future, which will make 2010 a difficult year."

AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units, heat recovery units, commercial self-contained units and coils. Its products serve the new construction and replacement markets. The Company has successfully gained market share through its "semi-custom" product lines, which offer the customer value, quality, function, serviceability and efficiency.

The Company will host a conference call today at 4:15 P.M. EDT to discuss year 2009 and the fourth quarter results. To participate, call 1-877-737-1669.

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


                              Three Months Ended      Twelve Months Ended
                             December    December    December    December
                             31, 2009    31, 2008    31, 2009    31, 2008
                            ----------- ----------  ----------  ----------
                                (in thousands, except per share data)

Net sales                   $    54,228 $   60,209  $  245,282  $  279,725

Cost of sales                    39,449     46,693     177,737     212,549
                            ----------- ----------  ----------  ----------

  Gross profit                   14,779     13,516      67,545      67,176

Selling, general and
 administrative expenses          5,150      4,463      23,791      23,788
                            ----------- ----------  ----------  ----------

  Income from operations          9,629      9,053      43,754      43,388

Interest expense                      -        (13)         (9)        (71)

Interest income                       -          -          71          27

Other income (expense), net          75        308          76         724
                            ----------- ----------  ----------  ----------

Income before income taxes        9,704      9,348      43,892      44,068

Income tax provision              3,549      3,308      16,171      15,479
                            ----------- ----------  ----------  ----------

  Net income                $     6,155 $    6,040  $   27,721  $   28,589
                            =========== ==========  ==========  ==========

Earnings per share:
  Basic                     $      0.36 $     0.35  $     1.61  $     1.63
                            =========== ==========  ==========  ==========
  Diluted                   $      0.36 $     0.35  $     1.60  $     1.60
                            =========== ==========  ==========  ==========

Cash dividends declared
 per common share:          $      0.18 $     0.16  $     0.36  $     0.32
                            =========== ==========  ==========  ==========

Weighted average shares
 outstanding:
  Basic                          17,213     17,196      17,187      17,560
                            =========== ==========  ==========  ==========
  Diluted                        17,281     17,338      17,309      17,855
                            =========== ==========  ==========  ==========




                          AAON, Inc., and Subsidiaries
                           Consolidated Balance Sheets


                                               December 31,   December 31,
                                                   2009           2008
                                              -------------- --------------
                                               (in thousands, except share
                                                  and per share data)
Assets
Current assets:
  Cash and cash equivalents                   $       25,639 $          269
  Accounts receivable, net                            33,381         38,804
  Inventories, net                                    28,788         36,382
  Prepaid expenses and other                           1,087            428
  Derivative assets                                    2,200              -
  Assets held for sale, net                            1,522              -
  Deferred tax assets                                  3,623          4,235
                                              -------------- --------------
Total current assets                                  96,240         80,118

Property, plant and equipment
  Land                                                 1,328          2,153
  Buildings                                           41,697         36,371
  Machinery and equipment                             90,213         87,219
  Furniture and fixtures                               7,225          7,076
                                              -------------- --------------
    Total property, plant and equipment              140,463        132,819
    Less:  Accumulated depreciation                   80,567         72,269
                                              -------------- --------------
Property, plant and equipment, net                    59,896         60,550

Note receivable, long-term                                75             75

                                              -------------- --------------
Total assets                                  $      156,211 $      140,743
                                              ============== ==============

Liabilities & Stockholders' Equity
Current liabilities:
  Revolving credit facility                   $            - $        2,901
  Current maturities of long-term debt                    76             91
  Accounts payable                                     8,524         14,715
  Dividends payable                                    3,100          2,773
  Accrued liabilities                                 19,186         19,038
                                              -------------- --------------
Total current liabilities                             30,886         39,518

Long-term debt, less current maturities                    -            121
Deferred tax liabilities                               7,326          4,582
Commitments and contingencies

Stockholder's Equity
  Preferred stock, $.001 par value,
   7,500,000 shares authorized, no shares
   issued                                                  -              -
  Common stock, $.004 par value,
   75,000,000 shares issued authorized,
   17,214,979 and 17,208,733 issued and
   outstanding at December 31, 2009 and
   2008, respectively                                     71             71
  Additional paid-in capital                             644            538
  Accumulated other comprehensive income,
   net of tax                                          1,077            778
  Retained earnings                                  116,207         95,135
                                              -------------- --------------
Total stockholders' equity                           117,999         96,522
                                              -------------- --------------
Total liabilities and stockholders' equity    $      156,211 $      140,743
                                              ============== ==============




                      AAON, Inc., and Subsidiaries
                 Consolidated Statements of Cash Flows


                                              Twelve Months  Twelve Months
                                                  Ended          Ended
                                              December 31,   December 31,
                                                  2009           2008
                                              -------------  -------------
                                                     (in thousands)
Operating Activities
  Net income                                  $      27,721  $      28,589

  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                      9,061          9,412
    Provision for losses on accounts
     receivable, net of adjustment                       10            547
    Provision for excess and obsolete
     inventories                                        410              -
    Share-based compensation                            848            750
    Excess tax benefits from stock options
     exercised and restricted stock awards
     vested                                            (703)        (1,613)
    Gain on disposition of assets                       (59)           (27)
    Unrealized gain on derivative assets             (2,200)             -
    Deferred income taxes                             3,531            160
    Changes in assets and liabilities:
      Accounts receivable                             5,495           (905)
      Inventories                                     7,243         (4,779)
      Prepaid expenses and other                       (660)            13
      Accounts payable                               (6,334)           449
      Accrued liabilities                               842            851
                                              -------------  -------------
  Net cash provided by operating activities          45,205         33,447
                                              -------------  -------------

Investing Activities
  Proceeds from sale of property, plant,
   and equipment                                        135             17
  Capital expenditures                               (9,774)        (9,610)
                                              -------------  -------------
  Net cash used in investing activities              (9,639)        (9,593)
                                              -------------  -------------

Financing Activities
  Borrowings under revolving credit
   facility                                           9,972         46,865
  Payments under revolving credit facility          (12,873)       (43,964)
  Payments of long-term debt                           (136)          (118)
  Stock options exercised                             1,236          1,696
  Excess tax benefits from stock options
   exercised and restricted stock awards
   vested                                               703          1,613
  Repurchase of stock                                (3,129)       (24,761)
  Cash dividends paid to stockholders                (5,874)        (5,791)
                                              -------------  -------------
  Net cash used in financing activities             (10,101)       (24,460)
                                              -------------  -------------
Effect of exchange rate on cash                         (95)            (4)
                                              -------------  -------------
Net increase (decrease) in cash and cash
 equivalents                                         25,370           (610)
                                              -------------  -------------
Cash and cash equivalents, beginning of year            269            879
                                              -------------  -------------
Cash and cash equivalents, end of period      $      25,639  $         269
                                              =============  =============

Contact Information

  • For Further Information:
    Jerry R. Levine
    Phone: (914) 244-0292
    Fax: (914) 244-0295

    AAON, Inc.
    2425 South Yukon Ave.
    Tulsa, OK 74107-2728
    Ph: (918) 583-2266
    Fax: (918) 583-6094
    http://www.aaon.com