SOURCE: AAON

AAON

August 10, 2009 07:00 ET

AAON Reports Second Quarter Results

TULSA, OK--(Marketwire - August 10, 2009) - AAON, INC. (NASDAQ: AAON) today announced its operating results for the three and six months ended June 30, 2009.

In the quarter, net sales decreased 8% to $68.6 million from $74.8 million and net income decreased 9% to $7.1 million from $7.8 million from second quarter 2008. Earnings per diluted share were $0.41, down 5% from $0.43 for the same period a year ago, based upon 17.3 million and 18.1 million diluted shares outstanding for the three months ended June 30, 2009, compared to June 30, 2008, respectively. Net sales for the first six months of 2009 decreased 5% to $132.6 million from $140.2 million in 2008, and net income decreased 3% to $13.8 million from $14.2 million. Earnings per diluted share were $0.80, up 3% from $0.78, based upon 17.3 million and 18.3 million diluted shares outstanding for the six months ended June 30, 2009, compared to June 30, 2008, respectively.

Norman H. Asbjornson, President and CEO, stated that, "The decreases in sales and earnings were attributable primarily to current economic conditions; but our results were impressive when compared to overall industry performance, particularly recognizing that we experienced $680,000 ($0.02 per share) of nonrecurring expenses in the second quarter this year for costs involved in the closing of our Canadian operations."

Mr. Asbjornson said that, "We expect the downturn in the economy which we experienced to a greater extent in the second quarter will continue to impact our business for the foreseeable future; however, we have a strong liquidity position with cash on hand of $13.9 million at June 30, 2009, a record high quarter end amount. In view of the current economic environment, our goal is to maintain a healthy financial condition."

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.

AAON, INC. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling 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     Six Months Ended
                                June 30,   June 30,   June 30,   June 30,
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
                                  (in thousands, except per share data)

Net sales                       $  68,597  $  74,781  $ 132,562  $ 140,237

Cost of sales                      50,493     56,791     97,524    106,595
                                ---------  ---------  ---------  ---------

  Gross profit                     18,104     17,990     35,038     33,642

Selling, general and
 administrative expenses            6,793      6,129     13,328     12,031
                                ---------  ---------  ---------  ---------

  Income from operations           11,311     11,861     21,710     21,611

Interest expense                        -        (16)        (9)       (19)

Interest income                         7          6          7         27

Other income (expense), net           (71)       117        174        247
                                ---------  ---------  ---------  ---------

Income before income taxes         11,247     11,968     21,882     21,866

Income tax provision                4,150      4,208      8,057      7,672
                                ---------  ---------  ---------  ---------

  Net income                    $   7,097  $   7,760  $  13,825  $  14,194
                                =========  =========  =========  =========

Earnings per share:
  Basic                         $    0.41  $    0.43  $    0.80  $    0.79
                                =========  =========  =========  =========
  Diluted                       $    0.41  $    0.43  $    0.80  $    0.78
                                =========  =========  =========  =========

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

Weighted average shares
 outstanding:
  Basic                            17,170     17,740     17,179     17,894
                                =========  =========  =========  =========
  Diluted                          17,315     18,145     17,325     18,302
                                =========  =========  =========  =========





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

                                                 June 30,     December 31,
                                                   2009          2008
                                              -------------- --------------
                                              (in thousands, except share
                                                  and per share data)
Assets
Current assets:
  Cash and cash equivalents                   $       13,920 $          269
  Accounts receivable, net                            41,262         38,804
  Inventories, net                                    31,357         36,382
  Prepaid expenses and other                             718            428
  Deferred tax assets                                  4,996          4,235
                                              -------------- --------------
Total current assets                                  92,253         80,118

Property, plant and equipment
  Land                                                 2,197          2,153
  Buildings                                           39,284         36,371
  Machinery and equipment                             90,084         87,219
  Furniture and fixtures                               7,195          7,076
                                              -------------- --------------
    Total property, plant and equipment              138,760        132,819
    Less:  Accumulated depreciation                   76,885         72,269
                                              -------------- --------------
Property, plant and equipment, net                    61,875         60,550
Note receivable, long-term                                75             75
                                              -------------- --------------
Total assets                                  $      154,203 $      140,743
                                              ============== ==============


Liabilities & Stockholders’ Equity
Current liabilities:
  Revolving credit facility                   $            - $        2,901
  Current maturities of long-term debt                    91             91
  Accounts payable                                    15,617         14,715
  Dividends payable                                    3,101          2,773
  Accrued liabilities                                 24,638         19,038
                                              -------------- --------------
Total current liabilities                             43,447         39,518

Long-term liabilities                                     76            121
Deferred tax liabilities                               4,093          4,582
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, 17,156,400 and
   17,208,733 issued and outstanding at June
   30, 2009 and December 31, 2008,
   respectively                                           71             71
  Additional paid-in capital                               -            538
  Accumulated other comprehensive income, net
   of tax                                              1,059            778
  Retained earnings                                  105,457         95,135
                                              -------------- --------------
Total stockholders’ equity                           106,587         96,522
                                              -------------- --------------
Total liabilities and stockholders’ equity    $      154,203 $      140,743
                                              ============== ==============




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


                                              Six Months      Six Months
                                                Ended           Ended
                                             June 30, 2009   June 30, 2008
                                            --------------  --------------
                                                    (in thousands)
Operating Activities
  Net income                                $       13,825  $       14,194
    Adjustments to reconcile net income to
     net cash provided by operating
     activities:
       Depreciation                                  4,564           4,838
       Provision for losses on accounts
        receivable                                     634              13
       Share-based compensation                        419             413
       Excess tax benefits from stock
        options exercised and
        restricted stock awards vested                (180)           (229)
       Gain on disposition of assets                     -              (1)
       Deferred income taxes                        (1,103)           (615)
       Changes in assets and liabilities:
         Accounts receivable                        (3,047)        (10,832)
         Inventories, net                            5,058             414
         Prepaid expenses and other                   (290)           (283)
         Accounts payable                              808           3,393
         Accrued liabilities                         5,763           5,279
                                            --------------  --------------
  Net cash provided by operating activities         26,451          16,584
                                            --------------  --------------

Investing Activities
  Proceeds from sale of property, plant and
   equipment                                             -               1
  Capital expenditures                              (5,803)         (1,390)
                                            --------------  --------------
  Net cash used in investing activities             (5,803)         (1,389)
                                            --------------  --------------


Financing Activities
  Borrowings under revolving credit
   facility                                          9,972          12,853
  Payments under revolving credit facility         (12,873)         (8,766)
  Payments of long-term debt                           (45)            (45)
  Stock options exercised                              323             394
  Excess tax benefits from stock options
   exercised and restricted stock awards
   vested                                              180             229
  Repurchase of stock                               (1,862)        (17,264)
  Cash dividends paid to stockholders               (2,773)         (2,943)
                                            --------------  --------------
  Net cash used in financing activities             (7,078)        (15,542)
                                            --------------  --------------
Effect of exchange rate on cash                         81             (27)
                                            --------------  --------------
Net increase (decrease) in cash and cash
 equivalents                                        13,651            (374)
                                            --------------  --------------
Cash and cash equivalents, beginning
 of year                                               269             879
                                            --------------  --------------
Cash and cash equivalents, end of period    $       13,920  $          505
                                            ==============  ==============

Contact Information

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