AAON Reports Record Sales and Earnings

AAON Reports Record Sales and Earnings 
TULSA, OK -- (Marketwired) -- 11/07/13 --  AAON, Inc. (NASDAQ: AAON),
today announced its operating results for the third quarter and
nine-month period ended September 30, 2013. 
The quarter ended September 30, 2013 was the fourth consecutive
quarter to produce the highest sales and earnings for any
corresponding quarter in any year in the 25-year history of the
company. Sales and earnings for the nine months ended September 30,
2013, were also all time records. 
Revenues in the quarter were $89.7 million, up 16.8% from $76.8
million in 2012. Net income was $10.5 million, up 75.2% from $6.0
million in the same period a year ago. Net sales for the nine-month
period ended September 30, 2013 were $247.8 million, up 10.1%
compared to $225.1 million in 2012. Earnings for the nine months
ended September 30, 2013 were $29.8 million, up 49.9% compared to
$19.9 million in 2012. 
Earnings per diluted share in the third quarter of 2013 were $0.28,
up 75.0% from $0.16 for the same period a year ago, based upon 37.0
million shares outstanding for both periods. Earnings per diluted
share were $0.80, up 48.1% from $0.54, in the nine months ended
September 30, 2013, and September 30, 2012, respectively, based upon
37.0 million and 37.1 million diluted shares outstanding for the nine
months ended September 30, 2013, and September 30, 2012,
respectively. All per share earnings reflect the 3-for-2 stock split
effective July 2, 2013. 
Norman H. Asbjornson, President and CEO, stated, "The third quarter
gains in sales and income from operations primarily reflect an
increase in market share, as well as price increases and a decline in
cost of materials; gross profit as a percent of sales increased from
22.3% to 29.7%, but SG&A expenses as a percent of sales also
increased from 8.8% to 10.8%, the majority of which (SG&A) represents
increases in 'profit sharing' and warranty expense." 
Mr. Asbjornson continued, "The Company's backlog decreased from $55.3
million at September 30, 2012 to $49.9 million at September 30,
2013." 
Mr. Asbjornson said, "While we are confident of having record sales
and profits for 2013, we expect a decline in sales and fairly level
profits in the fourth quarter of 2013 compared to an exceptionally
strong fourth quarter last year." 
At a meeting of the Board of Directors on November 6, 2013, the Board
declared a regular semi-annual cash dividend of $0.10 per share,
which will be paid to the holders of the outstanding Common Stock of
the Company as of the close of business on December 2, 2013, the
record date, payable December 23, 2013. 
The Company will host a conference call today at 4:15 P.M. Eastern
Time to discuss the third quarter results. To participate, call
1-866-544-4631; or, for rebroadcast, call 1-866-245-6755 (code
531989). 
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         Nine Months Ended    
                                September 30,             September 30,     
                             2013         2012         2013         2012    
                         ------------ ------------ ------------ ------------
                           (in thousands, except share and per share data)  
Net sales                $    89,690  $    76,816  $   247,764  $   225,106 
Cost of sales                 63,074       59,667      178,160      173,336 
                         -----------  -----------  -----------  ----------- 
Gross profit                  26,616       17,149       69,604       51,770 
Selling, general and                                                        
 administrative expenses       9,687        6,747       25,743       19,627 
Gain on disposal of                                                         
 assets                           --            4           52           17 
                         -----------  -----------  -----------  ----------- 
Income from operations        16,929       10,406       43,913       32,160 
Interest expense                  (1)         (16)          (2)         (43)
Interest income                   61           40          153           55 
Other income (expense),                                                     
 net                              15           53          252           50 
                         -----------  -----------  -----------  ----------- 
Income before taxes           17,004       10,483       44,316       32,222 
Income tax provision           6,482        4,476       14,535       12,351 
                         -----------  -----------  -----------  ----------- 
Net income               $    10,522  $     6,007  $    29,781  $    19,871 
                         ===========  ===========  ===========  =========== 
Earnings per share:                                                         
  Basic*                 $      0.29  $      0.16  $      0.81  $      0.54 
                         ===========  ===========  ===========  =========== 
  Diluted*               $      0.28  $      0.16  $      0.80  $      0.54 
                         ===========  ===========  ===========  =========== 
Cash dividends declared                                                     
 per common share*:      $        --  $        --  $      0.10  $      0.08 
                         ===========  ===========  ===========  =========== 
Weighted average shares                                                     
 outstanding:                                                               
  Basic*                  36,742,262   36,803,235   36,752,657   36,837,686 
                         ===========  ===========  ===========  =========== 
  Diluted*                37,017,561   37,001,127   37,041,775   37,083,695 
                         ===========  ===========  ===========  =========== 

 
*Reflects three-for-two stock split effective July 2, 2013 


 
                                                                            
                                                                            
                         AAON, Inc. and Subsidiaries                        
                         Consolidated Balance Sheets                        
                                 (Unaudited)                                
                                                                            
                                                September 30,   December 31,
                                                     2013           2012    
                                                -------------  -------------
Assets                                           (in thousands, except share
                                                     and per share data)    
Current assets:                                                             
  Cash and cash equivalents                     $       2,289  $       3,159
  Certificates of deposit                               8,186          3,120
  Investments held to maturity at amortized                                 
   cost                                                11,421          2,832
  Accounts receivable, net                             46,129         43,866
  Income tax receivable                                 1,769            694
  Note receivable                                          29             28
  Inventories, net                                     33,383         32,614
  Prepaid expenses and other                              619            740
  Deferred tax assets                                   5,296          4,493
                                                -------------  -------------
Total current assets                                  109,121         91,546
Property, plant and equipment:                                              
  Land                                                  1,353          1,340
  Buildings                                            60,435         59,761
  Machinery and equipment                             122,356        117,617
  Furniture and fixtures                                9,539          8,906
                                                -------------  -------------
    Total property, plant and equipment               193,683        187,624
    Less: Accumulated depreciation                    105,975         96,929
                                                -------------  -------------
  Property, plant and equipment, net                   87,708         90,695
Certificates of deposit                                 4,483          2,120
Investments held to maturity at amortized cost         17,867          8,041
Note receivable                                           959          1,091
                                                -------------  -------------
Total assets                                    $     220,138  $     193,493
                                                =============  =============
                                                                            
Liabilities and Stockholders' Equity                                        
Current liabilities:                                                        
  Revolving credit facility                     $          --  $          --
  Accounts payable                                     12,795         13,047
  Dividends payable                                        --             --
  Accrued liabilities                                  30,314         26,578
                                                -------------  -------------
Total current liabilities                              43,109         39,625
Deferred revenue                                          358             --
Deferred tax liabilities                               14,741         15,732
Commitments and contingencies                                               
Stockholders' equity:                                                       
Preferred stock, $.001 par value, 5,000,000                                 
 shares authorized, no shares issued                       --             --
Common stock, $.004 par value, 168,750,000                                  
 shares authorized, 36,709,890 and 36,776,624                               
 issued and outstanding at September 30, 2013                               
 and December 31, 2012, respectively*                     147            147
Additional paid-in capital                                 --             --
Retained earnings                                     161,783        137,989
                                                -------------  -------------
Total stockholders' equity                            161,930        138,136
                                                -------------  -------------
Total liabilities and stockholders' equity      $     220,138  $     193,493
                                                =============  =============

 
*Reflects three-for-two stock split effective July 2, 2013 


 
                                                                            
                                                                            
                        AAON, Inc. and Subsidiaries                         
                   Consolidated Statements of Cash Flows                    
                                (Unaudited)                                 
                                                                            
                                                        Nine Months Ended   
                                                           September 30,    
                                                          2013       2012   
                                                       ---------  --------- 
Operating Activities                                      (in thousands)    
  Net income                                           $  29,781  $  19,871 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation                                           9,349     10,079 
    Amortization of bond premiums                            545         80 
    Provision for losses on accounts receivable, net                        
     of adjustments                                          121         (7)
    Provision for excess and obsolete inventories            468         -- 
    Share-based compensation                               1,054        625 
    Excess tax benefits from stock options exercised                        
     and restricted stock awards vested                     (502)      (267)
    Gain on disposition of assets                            (52)       (17)
    Foreign currency transaction gain (loss)                  35        (40)
    Interest income on note receivable                       (31)        -- 
    Deferred income taxes                                 (1,794)      (987)
    Write-off of note receivable                              75         -- 
    Changes in assets and liabilities:                                      
      Accounts receivable                                 (2,384)    (8,227)
      Income tax receivable                                1,753      5,801 
      Inventories                                         (1,237)    (2,702)
      Prepaid expenses and other                             121        148 
      Accounts payable                                      (227)     2,681 
      Deferred revenue                                       358         -- 
      Accrued liabilities                                  1,410     11,375 
                                                       ---------  --------- 
  Net cash provided by operating activities               38,843     38,413 
                                                       ---------  --------- 
Investing Activities                                                        
  Capital expenditures                                    (6,407)   (12,582)
  Proceeds from sale of property, plant and equipment         72        311 
  Investment in certificates of deposits                  (8,869)    (4,280)
  Maturities of certificates of deposits                   1,440      1,060 
  Purchases of investments held to maturity              (22,275)    (5,624)
  Maturities of investments                                3,315         -- 
  Proceeds from called investment                             --        270 
  Principal payments from note receivable                     52         20 
                                                       ---------  --------- 
  Net cash used in investing activities                  (32,672)   (20,825)
                                                       ---------  --------- 
Financing Activities                                                        
  Borrowings under revolving credit facility               8,325     34,847 
  Payments under revolving credit facility                (8,325)   (39,422)
  Stock options exercised                                    986      1,053 
  Excess tax benefits from stock options exercised and                      
   restricted stock awards vested                            502        267 
  Repurchase of stock                                     (4,817)    (4,379)
  Cash dividends paid to stockholders                     (3,712)    (2,950)
                                                       ---------  --------- 
  Net cash used in financing activities                   (7,041)   (10,584)
                                                       ---------  --------- 
Net (decrease) increase in cash and cash equivalents        (870)     7,004 
                                                       ---------  --------- 
Cash and cash equivalents, beginning of period             3,159         13 
                                                       ---------  --------- 
Cash and cash equivalents, end of period               $   2,289  $   7,017 
                                                       =========  ========= 

  
For Further Information:
Jerry R. Levine 
Phone: (914) 244-0292
Fax: (914) 244-0295
Email: jrladvisor@yahoo.com 
 
 
Press spacebar to pause and continue. Press esc to stop.