SOURCE: AAON

AAON

August 08, 2012 07:00 ET

AAON Reports Record Sales and Earnings

TULSA, OK--(Marketwire - Aug 8, 2012) - AAON, Inc. (NASDAQ: AAON), today announced its operating results for the second quarter and six-month period ended June 30, 2012.

Sales and earnings during the second quarter were record highs for any quarter in the Company's 24-year history.

Revenues in the quarter were $83.3 million, up 21% from $69.1 million in 2011. Net income was $9.3 million, up 142% from $3.8 million in the same period a year ago. Net sales for the first six months of 2012 were also a record for any six-month period, $148.3 million, up 15% compared to $129.0 million in 2011. Earnings for the six months ended June 30, 2012, were $13.9 million, up 85% compared to $7.5 million in 2011.

Earnings per diluted share in the second quarter of 2012 were $0.38, up 153% from $0.15 for the same period a year ago, based upon 24.7 million and 24.9 million diluted shares outstanding for the three months ended June 30, 2012, compared to June 30, 2011, respectively. Earnings per diluted share were $0.56, up 87% from $0.30, based upon 24.8 million and 24.9 million diluted shares outstanding for the six months ended June 30, 2012, compared to June 30, 2011, respectively.

Norman H. Asbjornson, President and CEO, stated, "The increases in revenues primarily reflect gains in market share, while the much greater increases in earnings for the second quarter and first half of 2012, were attributable to significantly improved productivity due to our new sheet metal fabrication equipment and revamped production lines, which resulted in improvements of gross margins from 17.0% to 25.3% in the second quarters of 2011 and 2012, respectively, and 18.1% to 23.3% for the six-month periods ended June 30, 2011 and 2012. Our backlog at June 30, 2012, was $62.2 million compared to $59.7 million at the same time a year ago."

Mr. Asbjornson said that, "We are pleased with the results of the first half of 2012, which were aided by extremely strong order input. However, there are a number of uncertainties, particularly as to the level of future order input, which make it difficult to forecast the business climate AAON will encounter during the second half of the year."

The Company will host a conference call today at 4:15 P.M. EDT to discuss the second quarter results. To participate, call 1-877-737-1669 (Code: VA34474).

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.

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) (In thousands, except per share data)
             
    Three Months Ended     Six Month Ended  
    June 30,     June 30,  
    2012     2011     2012     2011  
         
Net sales   $ 83,333     $ 69,076     $ 148,290     $ 128,989  
Cost of sales     62,230       57,339       113,669       105,614  
Gross profit     21,103       11,737       34,621       23,375  
Selling, general and administrative expenses     6,899       5,711       12,880       11,248  
(Gain) loss on disposal of assets     10       (14 )     (13 )     (8 )
Income from operations     14,194       6,040       21,754       12,135  
Interest expense     (11 )     (104 )     (27 )     (114 )
Interest income     2       31       15       65  
Other income (expense), net     (51 )     (65 )     (3 )     (568 )
Income before income taxes     14,134       5,902       21,739       11,518  
Income tax provision     4,837       2,063       7,875       4,029  
Net income   $ 9,297     $ 3,839     $ 13,864     $ 7,489  
Earnings per share                                
  Basic   $ 0.38     $ 0.16     $ 0.56     $ 0.30  
  Diluted   $ 0.38     $ 0.15     $ 0.56     $ 0.30  
Cash dividends declared per common share:   $ 0.12     $ 0.12     $ 0.12     $ 0.12  
Weighted average shares outstanding:                                
  Basic     24,552       24,715       24,570       24,730  
  Diluted     24,728       24,923       24,750       24,931  
                                   
                                   
 
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited) (In thousands, except share and per share data)
         
    June 30, 2012   December 31, 2011
Assets            
Current assets:            
  Cash and cash equivalents   $ 3,082   $ 13
  Certificates of deposit     2,259     -
  Investments held to maturity at amortized cost     1,254     -
  Accounts receivable, net     52,087     34,137
  Income tax receivable     197     10,016
  Note receivable     27     27
  Inventories, net     39,142     34,948
  Prepaid expenses and other     814     723
  Deferred tax assets     4,330     4,523
Total current assets     103,192     84,387
Property, plant and equipment:            
  Land     1,340     1,340
  Buildings     58,757     56,057
  Machinery and equipment     116,255     114,256
  Furniture and fixtures     8,318     7,784
    Total property, plant and equipment     184,670     179,437
    Less: Accumulated depreciation     91,472     85,935
  Property, plant and equipment, net     93,198     93,502
  Certificates of deposit     2,015     -
  Investments held to maturity at amortized cost     4,079     -
Note receivable, long-term     1,070     1,092
Total assets   $ 203,554   $ 178,981
Liabilities and Stockholders' Equity            
Current liabilities:            
  Revolving credit facility     7,259     4,575
  Accounts payable     16,978     14,118
  Dividends payable     2,950     -
  Accrued liabilities     27,656     19,994
Total current liabilities     54,843     38,687
Deferred tax liabilities     16,722     17,790
Commitments and contingencies            
Stockholders' equity:            
Preferred stock, $.001 par value, 11,250,000 shares authorized, no shares issued     -     -
Common stock, $.004 par value, 112,500,000 shares authorized, 24,543,861 and 24,618,324 issued and outstanding at June 30, 2012 and December 31, 2011, respectively     98     98
  Retained earnings     131,891     122,406
Total stockholders' equity     131,989     122,504
Total liabilities and stockholders' equity   $ 203,554   $ 178,981
             
             
 
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) (In thousands)
       
    Six Months Ended  
    June 30,  
    2012     2011  
Operating Activities                
  Net income   $ 13,864     $ 7,489  
                 
    Adjustments to reconcile net income to net cash provided by operating activities:                
      Depreciation     6,747       5,449  
      Amortization of bond premiums     20       137  
      Provision for losses on accounts receivable, net of adjustments     (1 )     (106 )
      Share-based compensation     364       346  
      Excess tax benefits from stock options exercised and restricted stock awards vested     (33 )     (77 )
      Gain on disposition of assets     (13 )     (8 )
      Foreign currency transaction (gain)losses     7       (59 )
      Deferred income taxes     (875 )     314  
      Changes in assets and liabilities:                
        Accounts receivable     (17,949 )     (2,687 )
        Income tax receivable     5,801       -  
        Inventories     (4,194 )     (11,709 )
        Prepaid expenses and other     (91 )     234  
        Accounts payable     4,215       10,957  
        Accrued liabilities     11,714       (105 )
  Net cash provided by operating activities     19,576       10,175  
                 
Investing Activities                
  Proceeds from sale of property, plant and equipment     306       49  
  Investment in certificates of deposits     (4,274 )     -  
  Maturities of certificates of deposits     -       1,263  
  Purchases of investments held to maturity     (5,624 )     -  
  Maturities of investments     -       7,055  
  Proceeds from called investment     270       -  
  Capital expenditures     (8,091 )     (24,907 )
  Principal payments from note receivable     15       14  
  Net cash used in investing activities     (17,398 )     (16,526 )
                 
Financing Activities                
  Borrowings under revolving credit facility     27,108       36,231  
  Payments under revolving credit facility     (24,424 )     (28,603 )
  Stock options exercised     69       132  
  Excess tax benefits from stock options exercised and restricted stock awards vested     33       77  
  Repurchases of stock     (1,895 )     (1,779 )
  Cash dividends paid to stockholders     -       (9 )
  Net cash provided by financing activities     891       6,049  
Net increase (decrease) in cash and cash equivalents     3,069       (302 )
Cash and cash equivalents, beginning of year     13       2,393  
Cash and cash equivalents, end of period   $ 3,082     $ 2,091  
                 

Contact Information

  • For Further Information:
    Jerry R. Levine
    Phone: (914) 244-0292
    Fax: (914) 244-0295
    Email: jrladvisor@yahoo.com