AAON, Inc., and Subsidiaries Consolidated Statements of Income (Unaudited) Three Months Ended March 31, March 31, 2008 2007 ----------- ----------- (in thousands, except per share data) Net sales $ 65,456 $ 58,628 Cost of sales 49,804 42,906 ----------- ----------- Gross profit 15,652 15,722 Selling, general and administrative expenses 5,902 5,747 ----------- ----------- Income from operations 9,750 9,975 Interest expense (3) (10) Interest income 21 3 Other income 130 188 ----------- ----------- Income before income taxes 9,898 10,156 Income tax provision 3,464 3,839 ----------- ----------- Net income $ 6,434 $ 6,317 =========== =========== Earnings per share: Basic $ 0.36 $ 0.34* =========== =========== Diluted $ 0.35 $ 0.33* =========== =========== Weighted average shares outstanding: Basic 18,049 18,561* =========== =========== Diluted 18,311 18,902* =========== =========== * Reflects three-for-two stock split effective August 21, 2007. AAON, Inc., and Subsidiaries Consolidated Balance Sheets (Unaudited) March 31, December 31, 2008 2007 ------------- ------------- (in thousands, except share and per share data) Assets Current assets: Cash and cash equivalents $ 5,474 $ 879 Accounts receivable, net 36,502 38,813 Inventories, net 33,003 31,849 Prepaid expenses and other 567 442 Deferred tax assets 4,124 4,312 ------------- ------------- Total current assets 79,670 76,295 Property, plant and equipment Land 2,323 2,354 Buildings 32,340 32,211 Machinery and equipment 83,618 82,872 Furniture and fixtures 6,942 6,912 ------------- ------------- Total property, plant and equipment 125,223 124,349 Less: Accumulated depreciation 66,010 63,579 ------------- ------------- Property, plant and equipment, net 59,213 60,770 Note receivable, long-term 75 75 ------------- ------------- Total assets $ 138,958 $ 137,140 ============= ============= Liabilities & Stockholders Equity Current liabilities: Current maturities of long-term debt $ 91 $ 91 Accounts payable 15,457 15,059 Dividends payable - 2,943 Accrued liabilities 19,530 19,414 ------------- ------------- Total current liabilities 35,078 37,507 Long-term liabilities 216 239 Deferred tax liabilities 3,433 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, 17,976,956 and 18,054,246 issued and outstanding at March 31, 2008 and December 31, 2007, respectively 73 73 Additional paid-in capital - - Accumulated other comprehensive income, net of tax 1,703 1,942 Retained earnings 98,455 93,405 ------------- ------------- Total stockholders equity 100,231 95,420 ------------- ------------- Total liabilities and stockholders equity $ 138,958 $ 137,140 ============= ============= AAON, Inc., and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Three Months Three Months Ended Ended March 31, 2008 March 31, 2007 ------------ ------------ (in thousands) OPERATING ACTIVITIES Net income $ 6,434 $ 6,317 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 2,457 2,273 Provision for losses on accounts receivable 26 186 Share-based compensation 241 163 Excess tax benefits from stock options exercised (119) (1,563) Gain on disposition of assets - (13) Deferred income taxes (427) (148) Changes in assets and liabilities: Accounts receivable 2,212 (973) Inventories, net (1,199) (3,179) Prepaid expenses and other (125) (41) Accounts payable 824 (955) Accrued liabilities (134) 4,624 ------------ ------------ Net cash provided by operating activities 10,190 6,691 ------------ ------------ INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment - 13 Capital expenditures (972) (4,537) ------------ ------------ Net cash used in investing activities (972) (4,524) ------------ ------------ FINANCING ACTIVITIES Borrowings under revolving credit facility 4,219 8,537 Payments under revolving credit facility (4,219) (8,537) Payments of long-term debt (23) (27) Stock options exercised 79 659 Excess tax benefits from stock options exercised 119 1,563 Repurchase of stock (1,823) (1,633) Cash dividends paid to stockholders (2,943) (2,465) ------------ ------------ Net cash used in financing activities (4,591) (1,903) ------------ ------------ Effect of exchange rate on cash (32) (2) ------------ ------------ Net increase in cash and cash equivalents 4,595 262 ------------ ------------ Cash and cash equivalents, beginning of year 879 288 ------------ ------------ Cash and cash equivalents, end of period $ 5,474 $ 550 ============ ============
Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295 Email: