AAON Reports Higher 2012 and Record Fourth Quarter Results

AAON Reports Higher 2012 and Record Fourth Quarter Results 
TULSA, OK -- (Marketwire) -- 03/14/13 --  AAON, Inc. (NASDAQ: AAON)
today announced its operating results for the year 2012. Sales
increased 14% to a record $303.1 million from $266.2 million in 2011,
while net income increased 96% to $27.4 million compared to $14.0
million in the previous year. Sales in the fourth quarter of 2012
increased 23% to a record $78.0 million from $63.4 million in 2011.
Net income increased 770% to a record $7.6 million compared to $0.9
million in the same period a year ago. 
Earnings per diluted share for year 2012 were $1.11 compared to $0.56
in 2011, based upon 24.7 million and 24.9 million diluted shares
outstanding, respectively, while earnings for the fourth quarter of
2012 were $0.31 per diluted share compared to $0.04 per diluted share
in 2011, based upon 24.6 million and 24.8 million diluted shares
outstanding, respectively. 
Norman H. Asbjornson, President and CEO, stated, "We are very proud
of our operating results for year 2012 and for exceeding $300 million
in sales for the first time. These results were achieved in spite of
a continuing weak national economy. We addressed these problems
through the development of new products; improvement of our sales
force; addition of new facilities; rearrangement of production lines;
and purchases of improved manufacturing machinery. Also extremely
important has been the stability, training and dedication of our
employees. These factors combined to provide greater productivity,
improved efficiencies and a significant increase in our market
share." 
Mr. Asbjornson then pointed out that, "While gross profit in 2012
increased greatly to 23.3% from 17.4% in 2011, this difference is
attributable to the above-mentioned factors and abnormal expenses
incurred in 2011 as previously reported. However, we have begun to
witness some inflationary pressure from rising raw material,
components and labor costs. If this continues, our 2012 gross profit
may not be sustainable throughout the 2013 calendar year." 
Mr. Asbjornson next said, "It appears from information available to
us that there will be a flat to modestly improving economy in our
segments of the HVAC industry in 2013. Based upon this forecast and
other factors, we anticip
ate AAON having another good year in 2013." 
The Company will host a conference call today at 4:15 P.M. Eastern
Time to discuss year 2012 and fourth quarter results. To participate,
call 1-877-737-1669 (Code: VA 55540). 
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                         
                Unaudited Consolidated Statements of Income                 
                                                                            
                                  Three Months Ended        Year Ended      
                                      December 31           December 31     
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
                                                                            
                                    (in thousands, except per share data)   
Net sales                        $  78,008  $  63,402  $ 303,114  $ 266,220 
Cost of sales                       59,279     54,755    232,615    219,939 
                                 ---------  ---------  ---------  --------- 
Gross profit                        18,729      8,647     70,499     46,281 
Selling, general and                                                        
 administrative expenses             6,634      5,611     26,261     22,310 
Loss(gain) on disposal of assets        21      1,816          4      1,802 
                                 ---------  ---------  ---------  --------- 
Income from operations              12,074      1,220     44,234     22,169 
Interest expense                        (1)      (104)       (44)      (277)
Interest income                         31         11         86         98 
Other income(expense), net              (9)       213         41       (477)
                                 ---------  ---------  ---------  --------- 
Income before taxes                 12,095      1,340     44,317     21,513 
Income tax provision                 4,517        469     16,868      7,527 
                                 ---------  ---------  ---------  --------- 
Net income                       $   7,578  $     871  $  27,449  $  13,986 
                                 =========  =========  =========  ========= 
                                                                            
Earnings per share:                                                         
  Basic                          $    0.31  $    0.04  $    1.12  $    0.57 
                                 ---------  ---------  ---------  --------- 
  Diluted                        $    0.31  $    0.04  $    1.11  $    0.56 
                                 =========  =========  =========  ========= 
Cash dividends declared per                                                 
 common share:                   $    0.24  $    0.12  $    0.36  $    0.24 
                                 =========  =========  =========  ========= 
Weighted average shares                                                     
 outstanding:                                                               
  Basic                             24,525     24,635     24,550     24,690 
                                 =========  =========  =========  ========= 
  Diluted                           24,630     24,821     24,699     24,881 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                         AAON, Inc. and Subsidiaries                        
                    Unaudited Consolidated Balance Sheets                   
                                                                            
                                                         December 31        
                                                      2012          2011    
                                                 ------------- -----------
--
Assets                                           (in thousands, except share
                                                     and per share data)    
Current assets:                                                             
  Cash and cash equivalents                      $       3,159 $          13
  Certificates of deposit                                3,120             -
  Investments held to maturity at amortized cost         2,832             -
  Accounts receivable, net                              43,866        34,137
  Income tax receivable                                    694        10,016
  Notes receivable                                          28            27
  Inventories, net                                      32,614        34,948
  Prepaid expenses and other                               740           723
  Deferred tax assets                                    4,493         4,523
                                                 ------------- -------------
Total current assets                                    91,546        84,387
Property, plant and equipment:                                              
  Land                                                   1,340         1,340
  Buildings                                             59,761        56,057
  Machinery and equipment                              117,617       114,256
  Furniture and fixtures                                 8,906         7,784
                                                 ------------- -------------
    Total property, plant and equipment                187,624       179,437
    Less: Accumulated depreciation                      96,929        85,935
                                                 ------------- -------------
  Property, plant and equipment, net                    90,695        93,502
Certificates of deposit                                  2,120             -
Investments held to maturity at amortized cost           8,041             -
Note receivable, long-term                               1,091         1,092
                                                 ------------- -------------
Total assets                                     $     193,493 $     178,981
                                                 ============= =============
                                                                            
Liabilities and Stockholders' Equity                                        
Current liabilities:                                                        
  Revolving credit facility                      $           - $       4,575
  Accounts payable                                      13,047        14,118
  Accrued liabilities                                   26,578        19,994
                                                 ------------- -------------
Total current liabilities                               39,625        38,687
Deferred tax liabilities                                15,732        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, 24,517,749 and 24,618,324                               
 issued and outstanding at December 31, 2012 and                            
 2011, respectively                                         98            98
Additional paid-in capital                                   -             -
Retained earnings                                      138,038       122,406
                                                 ------------- -------------
Total stockholders' equity                             138,136       122,504
                                                 ------------- -------------
Total liabilities and stockholders' equity       $     193,493 $     178,981
                                                 ============= =============
                                                                            
                                                                            
                                                                            
                        AAON, Inc. and Subsidiaries                         
              Unaudited Consolidated Statements of Cash Flows               
                                                                            
                                                 Years Ending December 31,  
                                                 2012      2011      2010   
                                               --------  --------  -------- 
Operating Activities                                  (in thousands)        
  Net income                                   $ 27,449  $ 13,986  $ 21,894 
  Adjustments to reconcile net income to net                                
   cash provided by operating activities:                                   
    Depreciation                                 13,407    11,397     9,886 
    Amortization of bond premiums                   155       156       379 
    Provision for losses on accounts                                        
     receivable, net of adjustments                 (83)     (289)     (117)
    Provision for excess and obsolete                                       
     inventories                                     63       (50)        - 
    Share-based compensation                      1,294       680       791 
    Excess tax benefits from stock options                                  
     exercised and restricted stock awards                                  
     vested                                        (393)     (211)     (356)
    (Gain)loss on disposition of assets               4     1,802       (73)
    Unrealized gain on financial derivative                                 
     asset                                            -         -       (14)
    Foreign currency transaction gain               (27)       (8)        - 
    Interest income on note receivable              (42)        -         - 
    Deferred income taxes                        (2,028)   10,122      (558)
    Changes in assets and liabilities:                                      
      Accounts receivable                        (9,646)    6,053    (6,403)
      Income tax receivable                       9,715   (10,016)        - 
      Inventories                                 2,271    (1,296)   (4,814)
      Prepaid expenses and other                    (17)      (67)      431 
      Financial derivative asset                      -         -     2,214 
      Accounts payable                            2,461    (2,751)    6,522 
      Accrued liabilities                         6,584    (3,024)    2,370 
                                               --------  --------  -------- 
  Net cash provided by operating activities      51,167    26,484    32,152 
                                               --------  --------  -------- 
                            
                                                
Investing Activities                                                        
  Proceeds from sale of property, plant and                                 
   equipment                                         11       482       136 
  Investment in certificates of deposits         (6,540)        -    (2,745)
  Maturities of certificates of deposits          1,300     1,503     1,242 
  Purchases of investments held to maturity     (11,654)        -   (12,018)
  Maturities of investments                           -     9,364     2,119 
  Proceeds from assets held for sale                  -         -       460 
  Proceeds from called investment                   626         -         - 
  Capital expenditures                          (14,147)  (35,914)  (17,470)
  Principal payments from note receivable            69        27         - 
                                               --------  --------  -------- 
  Net cash used in investing activitie
s         (30,335)  (24,538)  (28,276)
                                               --------  --------  -------- 
                                                                            
Financing Activities                                                        
  Borrowings under revolving credit facility     34,847    82,078    20,839 
  Payments under revolving credit facility      (39,422)  (77,503)  (20,839)
  Payments of long-term debt                          -         -       (76)
  Stock options exercised                         1,996       494     1,168 
  Excess tax benefits from stock options                                    
   exercised and restricted stock awards                                    
   vested                                           393       211       356 
  Repurchase of stock                            (6,660)   (3,671)  (19,480)
  Cash dividends paid to stockholders            (8,840)   (5,935)   (9,168)
                                               --------  --------  -------- 
  Net cash used in financing activities         (17,686)   (4,326)  (27,200)
                                                                            
Effects of exchange rate on cash                      -         -        78 
                                               --------  --------  -------- 
Net increase (decrease) in cash and cash                                    
 equivalents                                      3,146    (2,380)  (23,246)
                                               --------  --------  -------- 
Cash and cash equivalents, beginning of year         13     2,393    25,639 
                                               --------  --------  -------- 
Cash and cash equivalents, end of year         $  3,159  $     13  $  2,393 
                                               ========  ========  ======== 

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