SOURCE: AAON

May 07, 2008 07:00 ET

AAON Reports Record Sales and Earnings

TULSA, OK--(Marketwire - May 7, 2008) - AAON, Inc. (NASDAQ: AAON) today announced its operating results for the three months ended March 31, 2008, of $65.5 million in sales (up 12%) and $6.4 million of net income (up 2%), $0.35 per diluted share, compared to $58.6 million in sales and $6.3 million in net income, $0.33 per diluted share, a year ago.

Sales and net income after tax for the first quarter of 2008 were the highest of any first quarter in the Company's history.

Norman H. Asbjornson, President and CEO, stated that "The rise in sales was attributable to increases in both market share and prices. While earnings as a percentage of sales were near an all-time high, they were moderated by inflationary pressures resulting in net income before tax that was slightly lower than the same period a year ago."

Mr. Asbjornson said, "While we are pleased with the first quarter results, the balance of the year remains difficult to predict."

The Company will host a conference call today at 4:15 P.M. EST to discuss the first quarter results. To participate, call 1-877-857-6176.

AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing 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)



                                                     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: Email Contact