AAON Reports Record Sales and Earnings

AAON Reports Record Sales and Earnings 
TULSA, OK -- (Marketwired) -- 08/08/13 --  AAON, Inc. (NASDAQ: AAON),
today announced its operating results for the second quarter and six
month period ended June 30, 2013. 
Sales and earnings during the second quarter were record highs for
any quarter in the Company's history.  
Management believes that the Company's percent of net income per
dollar of sales (13%) in the second quarter was the highest for any
quarter by any other public company, ever, in the HVAC industry. 
Revenues in the quarter were $91.2 million, up 9% from $83.3 million
in 2012. Net income was $12.1 million, up 30% from $9.3 million in
the same period a year ago. Net sales for the six month period ended
June 30, 2013, were also a record for the first half of any year,
$158.1 million, up 7% compared to $148.3 million in 2012. Earnings
for the six months ended June 30, 2013 were $19.3 million, up 39%
compared to $13.9 million in 2012. 
Earnings per diluted share in the second quarter of 2013 were $0.33,
up 32% from $0.25 for the same period a year ago, based upon 37.2
million and 37.1 million diluted shares outstanding for the three
months ended June 30, 2013, compared to June 30, 2012, respectively.
Earnings per diluted share were $0.52, up 41% from $0.37, in the six
months ended June 30, 2013, and June 30, 2012, respectively, based
upon 37.1 million diluted shares outstanding for both periods. All
per share earnings reflect the 3-for-2 stock split effective July 2,
2013. 
Norman H. Asbjornson, President and CEO, stated, "The second quarter
increases in sales and income from operations primarily reflect price
increases and a decline in cost of materials; gross profit as a
percent of sales increased 5% (from 25.3% to 30.3%), but SG&A
expenses as a percent of sales also increased 1.7% (from 8.3% to
10.0%), the majority of which (SG&A) represents increases in "profit
sharing" and warranty expense. 
Mr. Asbjornson continued, "The Company's backlog increased from $62.2
million at June 30, 2012, to $66.2 million at June 30, 2013, but
declined from the record of $71.7 at March 31, 2013." 
Mr. Asbjornson said, "While we still anticipate record sales and
profits for 2013, there has been a noticeable softening in our market
which has lowered our expectations for the balance of the year as
compared to the first half of the year." 
The Company will host a conference call today at 4:15 P.M. EDT to
discuss the second quarter results. To participate, call
1-866-544-4631; or, for rebroadcast, call 1-866-245-6755 (code
932908). 
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         Six Months Ended     
                                  June 30,                  June 30,        
                             2013         2012         2013         2012    
                         ------------ ------------ ------------ ------------
                           (in thousands, except share and per share data)  
Net sales                $    91,241  $    83,333  $   158,074  $   148,290 
Cost of sales                 63,565       62,230      115,086      113,669 
                         -----------  -----------  -----------  ----------- 
Gross profit                  27,676       21,103       42,988       34,621 
Selling, general and                                                        
 administrative expenses       9,089        6,899       16,056       12,880 
(Gain) loss on disposal                                                     
 of assets                       (59)          10          (52)         (13)
                         -----------  -----------  -----------  ----------- 
Income from operations        18,646       14,194       26,984       21,754 
Interest expense                   -          (11)          (1)         (27)
Interest income                   57            2           92           15 
Other income(expense),                                                      
 net                             253          (51)         237           (3)
                         -----------  -----------  -----------  ----------- 
Income before taxes           18,956       14,134       27,312       21,739 
Income tax provision           6,837        4,837        8,053        7,875 
                         -----------  -----------  -----------  ----------- 
Net income               $    12,119  $     9,297  $    19,259  $    13,864 
                         ===========  ===========  ===========  =========== 
Earnings per share:                                                         
  Basic*                 $      0.33  $      0.25  $      0.52  $      0.38 
                         ===========  ===========  ===========  =========== 
  Diluted*               $      0.33  $      0.25  $      0.52  $      0.37 
                         ===========  ===========  ===========  =========== 
Cash dividends declared                                                     
 per common share*:      $      0.10  $      0.08  $      0.10  $      0.08 
                         ===========  ===========  ===========  =========== 
Weighted average shares                                                     
 outstanding:                                                               
  Basic*                  36,759,718   36,828,650   36,760,173   36,854,913 
                         ===========  ===========  ===========  =========== 
  Diluted*                37,150,262   37,091,528   37,056,201   37,124,982 
                         ===========  ===========  ===========  =========== 
                                                                            
 *Reflects three-for-two stock split effective July 2, 2013                 
                                                                            
                                                                            
                                                                            
                                                                            
                         AAON, Inc. and Subsidiaries                        
                         Consolidated Balance Sheets                        
                                 (Unaudited)                                
                                                     June 30,   December 31,
                                                       2013         2012    
                                                   ------------ ------------
Assets                                               (in thousands, except  
                                                   share and per share data)
Current assets:                                                             
Cash and cash equivalents                          $     19,415 $      3,159
Certificates of deposit                                   3,460        3,120
Investments held to maturity at amortized cost            7,353        2,832
Accounts receivable, net                                 50,108       43,866
Income tax receivable                                       410          694
Note receivable                                              29           28
Inventories, net                                         34,131       32,614
Prepaid expenses and other                                  900          740
  Deferred tax assets                                     5,605        4,493
                                                   ------------ ------------
Total current assets                                    121,411       91,546
Property, plant and equipment:                                              
  Land                                                    1,340        1,340
  Buildings                                              60,126       59,761
  Machinery and equipment                               118,253      117,617
  Furniture and fixtures                                  9,322        8,906
                                                   ------------ ------------
    Total property, plant and equipment                 189,041      187,624
    Less: Accumulated depreciation                      102,963       96,929
                                                   ------------ ------------
  Property, plant and equipment, net                     86,078       90,695
Certificates of deposit                                   1,298        2,120
Investments held to maturity at amortized cost           11,475        8,041
Note receivable                                             952        1,091
                                                   ------------ ------------
Total assets                                       $    221,214 $    193,493
                                                   ============ ============
                                                                            
Liabilities and Stockholders' Equity                                        
Current liabilities:                                                        
  Revolving credit facility                        $          - $          -
  Accounts payable                                       13,858       13,047
  Dividends payable                                       3,712            -
  Accrued liabilities                                    36,045       26,578
                                                   ------------ ------------
Total current liabilities                                53,615       39,625
Deferred revenue                                            201            -
Deferred tax liabilities                                 14,878       15,732
Commitments and contingencies                                               
Stockholders' equity:                                                       
Preferred stock, $.001 par value, 16,875,000                                
 shares authorized, no shares issued*                         -            -
Common stock, $.004 par value, 168,750,000 shares                           
 authorized, 36,754,988 and 36,776,624 issued and                           
 outstanding at June 30, 2013 and December 31,                              
 2012, respectively*                                        147          147
Additional paid-in capital                                    -            -
Retained earnings                                       152,373      137,989
                                                   ------------ ------------
Total stockholders' equity                              152,520      138,136
                                                   ------------ ------------
Total liabilities and stockholders' equity         $    221,214 $    193,493
                                                   ============ ============
                                                                            
 *Reflects three-for-two stock split effective July 2, 2013                 
                                                                            
                                                                            

 
                                                                            
                                                                            
                         AAON, Inc. and Subsidiaries                        
                    Consolidated Statements of Cash Flows                   
                                 (Unaudited)                                
                                                         Six Months Ended   
                                                              June 30,      
                                                          2013       2012   
                                                       ---------- ----------
Operating Activities                                       (in thousands)   
  Net income                                           $  19,259  $  13,864 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation                                           6,268      6,747 
    Amortization of bond premiums                            304         20 
    Provision for losses on accounts receivable, net                        
     of adjustments                                          102         (1)
    Provision for excess and obsolete inventories            201          - 
    Share-based compensation                                 695        364 
    Excess tax benefits from stock options exercised                        
     and restricted stock awards vested                     (385)       (33)
    Gain on disposition of assets                            (52)       (13)
    Foreign currency transaction gain                         43          7 
    Interest income on note receivable                       (20)         - 
    Deferred income taxes                                 (1,966)      (875)
    Write-off of note receivable                              75          - 
    Changes in assets and liabilities:                                      
      Accounts receivable                                 (6,344)   (17,949)
      Income tax receivable                                3,942      5,801 
      Inventories                                         (1,718)    (4,194)
      Prepaid expenses and other                            (160)       (91)
      Accounts payable                                     1,101      4,215 
      Deferred revenue                                       201          - 
      Accrued liabilities                                  6,194     11,714 
                                                       ---------- ----------
  Net cash provided by operating activities               27,740     19,576 
                                                       ---------- ----------
Investing Activities                                                        
  Capital expenditures                                    (1,949)    (8,091)
  Proceeds from sale of property, plant and equipment         60        306 
  Investment in certificates of deposits                    (958)    (4,274)
  Maturities of certificates of deposits                   1,440          - 
  Purchases of investments held to maturity               (9,969)    (5,624)
  Maturities of investments                                1,710          - 
  Proceeds from called investment                              -        270 
  Principal payments from note receivable                     40         15 
                                                       ---------- ----------
  Net cash used in investing activities                   (9,626)   (17,398)
                                                       ---------- ----------
Financing Activities                                                        
  Borrowings under revolving credit facility               2,321     27,108 
  Payments under revolving credit facility                (2,321)   (24,424)
  Stock options exercised                                    767         69 
  Excess tax benefits from stock options exercised and                      
   restricted stock awards vested                            385         33 
  Repurchase of stock                                     (3,010)    (1,895)
                                                       ---------- ----------
  Net cash (used in) provided by financing activities     (1,858)       891 
                                                       ---------- ----------
Net increase in cash and cash equivalents                 16,256      3,069 
                                                       ---------- ----------
Cash and cash equivalents, beginning of period             3,159         13 
                                                       ---------- ----------
Cash and cash equivalents, end of period               $  19,415  $   3,082 
                                                       ========== ==========

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