AAON Reports Record Sales and Earnings

AAON Reports Record Sales and Earnings 
TULSA, OK -- (Marketwired) -- 05/09/13 --  AAON, INC. (NASDAQ: AAON),
today announced its operating results for the three months ended
March 31, 2013, of $66.8 million in sales (up 3%), and $7.1 million
of net income (up 56%), $0.29 per share, compared to $65.0 million in
sales and $4.6 million in net income, $0.18 per share, a year ago.
Per share earnings are on a diluted basis. 
Both sales and earnings were records for the first quarter. However,
net income for the first quarter of 2013 benefited by a $1.6 million
reduction of the income tax provision, or $0.07 per share, largely
due to an Oklahoma investment credit and change in Federal tax laws.
The Company anticipates an effective tax rate of 34.5% for the
balance of this year (vs. 14.6% in the first quarter of 2013 and
39.9% in 2012). 
Norman H. Asbjornson, President and CEO, stated, "The first quarter
increases in sales and income from operations primarily reflect price
increases, although gross profit increased 2.1% (from 20.8% to
22.9%), while SG&A expenses also increased 1.2% (from 9.2% to 10.4%),
a majority of which (SG&A) represents increased advertising expense
and cash bonuses to employees which are not expected to occur during
the rest of 2013." 
Mr. Asbjornson pointed out that the Company's backlog increased from
$58.9 million at March 31, 2012, to a record of $71.7 million at
March 31, 2013, or by 22%. 
Mr. Asbjornson said, "Based on the first quarter results and backlog,
we expect 2013 to produce both higher sales and earnings than 2012." 
The Company will host a conference call today at 4:15 P.M. EDT to
discuss the first quarter results. To participate, call
1-877-737-1669 (Code: VA23770). 
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)                                 
                                                                            
                                                   Three Months Ended       
                                             March 31, 2013  March 31, 2012 
                                             --------------  -------------- 
                                             (in thousands except per share 
                                                        amounts)            
                                                                            
Net sales                                    $       66,833  $       64,957 
Cost of sales                                        51,521          51,439 
                                             --------------  -------------- 
Gross profit                                         15,312          13,518 
                                                                            
Selling, general and administrative expenses          6,967           5,981 
Loss (gain) on disposal of assets                         7             (23)
                                             --------------  -------------- 
Income from operations                                8,338           7,560 
                                                                            
Interest expense                                         (1)            (16)
Interest income                                          35              13 
Other income (expense), net                             (16)             48 
                                             --------------  -------------- 
Income before income taxes                            8,356           7,605 
Income tax provision                                  1,216           3,038 
                                             --------------  -------------- 
                                                                            
Net income                                   $        7,140  $        4,567 
                                             ==============  ============== 
                                                                            
Earnings per share:                                                         
  Basic                                      $         0.29  $         0.19 
                                             ==============  ============== 
  Diluted                                    $         0.29  $         0.18 
                                             ==============  ============== 
                                                                            
Cash dividends declared per common share     $         0.00  $         0.00 
                                             ==============  ============== 
                                                                            
Weighted average shares outstanding:                                        
  Basic                                              24,507          24,587 
                                             ==============  ============== 
  Diluted                                            24,641          24,772 
                                             ==============  ============== 
                                                                            
                                                                            
                                                                            
                        AAON, Inc., and Subsidiaries                        
                         Consolidated Balance Sheets                        
                                 (Unaudited)                                
                                                                            
                                                   March 31,    December 31,
                                                      2013          2012    
                                                 ------------- -------------
                                                 (in thousands, except share
                                                     and per share data)    
Assets                                                                      
Current assets:                                                             
  Cash and cash equivalents                      $       9,717 $       3,159
  Certificates of deposit                                2,400         3,120
  Investments held to maturity at amortized cost         4,736         2,832
  Accounts receivable, net                              38,551        43,866
  Income tax receivable                                    975           694
  Note receivable                                           28            28
  Inventories, net                                      33,986        32,614
  Prepaid expenses and other                               839           740
  Deferred tax assets                                    4,795         4,493
                                                 ------------- -------------
Total current assets                                    96,027        91,546
Property, plant and equipment:                                              
  Land                                                   1,340         1,340
  Buildings                                             59,878        59,761
  Machinery and equipment                              118,005       117,617
  Furniture and fixtures                                 9,100         8,906
                                                 ------------- -------------
    Total property, plant and equipment                188,323       187,624
    Less: Accumulated depreciation                     100,093        96,929
                                                 ------------- -------------
  Property, plant and equipment, net                    88,230        90,695
Certificates of deposit                                  2,358         2,120
Investments held to maturity at amortized cost           6,796         8,041
Notes receivable                                         1,062         1,091
                                                 ------------- -------------
Total assets                                     $     194,473 $     193,493
                                                 ============= =============
Liabilities and Stockholders' Equity                                        
Current liabilities:                                                        
  Revolving credit facility                                  -             -
  Accounts payable                                      10,945        13,047
  Accrued liabilities                                   23,683        26,578
                                                 ------------- -------------
Total current liabilities                               34,628        39,625
Deferred tax liabilities                                14,829        15,732
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, 24,510,111 and 24,517,749                               
 issued and outstanding at March 31, 2013 and                               
 December 31, 2012, respectively                            98            98
  Retained earnings                                    144,918       138,038
                                                 ------------- -------------
Total stockholders' equity                             145,016       138,136
                                                 ------------- -------------
Total liabilities and stockholders' equity       $     194,473 $     193,493
                                                 ============= =============
                                                                            
                                                                            
                                                                            
                        AAON, Inc., and Subsidiaries                        
                   Consolidated Statements of Cash Flows                    
                                (Unaudited)                                 
                                                                            
                                                   Three Months Ended       
                                             March 31, 2013  March 31, 2012 
                                             --------------  -------------- 
                                                     (in thousands)         
Operating Activities                                                        
  Net income                                 $        7,140  $        4,567 
  Adjustments to reconcile net income to net                                
   cash                                                                     
  provided by operating activities:                                         
    Depreciation                                      3,191           3,394 
    Amortization of bond premiums                       127               - 
    Provision for losses on accounts                                        
     receivable, net of adjustments                     269               4 
    Provision for excess and obsolete                                       
     inventories                                        169               - 
    Share-based compensation                            392             169 
    Excess tax benefits from stock options                                  
     exercised                                                              
    and restricted stock awards vested                 (109)            (13)
    (Gain) Loss on disposition of assets                  7             (23)
    Foreign currency (gain)loss                          19             (23)
    Interest income on note receivable                  (10)              - 
    Deferred income taxes                            (1,205)            170 
    Changes in assets and liabilities:                                      
      Accounts receivable                             5,046            (390)
      Income tax receivable                            (172)           (237)
      Inventories                                    (1,541)         (1,807)
      Prepaid expenses and other                        (99)            (82)
      Accounts payable                               (1,838)            712 
      Accrued liabilities                            (2,895)          5,130 
                                             --------------  -------------- 
  Net cash provided by operating activities           8,491          11,571 
                                             --------------  -------------- 
                                                                            
Investing Activities                                                        
  Proceeds from sale of property, plant and                                 
   equipment                                              -             300 
  Investment in certificates of deposit                (238)              - 
  Maturities of certificates of deposit                 720               - 
  Purchases of investments held to maturity          (1,396)              - 
  Maturities of investments                             610               - 
  Principal payments from note receivable                20               7 
  Capital expenditures                                 (997)         (2,959)
                                             --------------  -------------- 
  Net cash used in investing activities              (1,281)         (2,652)
                                             --------------  -------------- 
                                                                            
Financing Activities                                                        
  Borrowings under revolving credit facility          1,955          13,111 
  Payments under revolving credit facility           (1,955)        (17,686)
  Stock options exercised                               354              55 
  Excess tax benefits from stock options                                    
   exercised and restricted stock awards                                    
   vested                                               109              13 
  Repurchases of stock                               (1,115)         (1,180)
                                             --------------  -------------- 
  Net cash used in financing activities                (652)         (5,687)
                                             --------------  -------------- 
Net increase in cash and cash equivalents             6,558           3,232 
                                             --------------  -------------- 
Cash and cash equivalents, beginning of                                     
 period                                               3,159              13 
                                             --------------  -------------- 
Cash and cash equivalents, end of period     $        9,717  $        3,245 
                                             ==============  ============== 

  
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Jerry R. Levine
Ph: (914) 244-0292
Fax: (914) 244-0295
jrladvisor@yahoo.com