TULSA, OK--(Marketwire - Nov 8, 2011) - AAON, Inc. (
In the quarter, net sales increased 14% to $73.8 million from $64.9 million, and net income increased 9% to $5.6 million from $5.2 million in the third quarter of 2010. Earnings per diluted share were $0.23, up 10% from $0.21 for the same period a year ago, based upon 24.8 million and 25.0 million diluted shares outstanding for the three months ended September 30, 2011, compared to September 30, 2010, respectively. Net sales for the first nine months of 2011 increased 13% to $202.8 million from $178.7 million in 2010, and net income decreased 19% to $13.1 million from $16.1 million. Earnings per diluted share were $0.53, down 16% from $0.63, based upon 24.9 million and 25.5 million diluted shares outstanding for the nine months ended September 30, 2011, compared to September 30, 2010, respectively.
Norman H. Asbjornson, President and CEO, stated, "We are very proud to have increased net sales in the third quarter and for the year to date, in a severely contracted and very difficult market, by greatly increasing our market share; however, understandably this market, caused by poor economic conditions, has put substantial pressure on our margins, exacerbated by cost increases led by commodity prices."
Mr. Asbjornson then said, "We are also pleased to have achieved higher earnings in the third quarter, primarily by greatly reducing the negative impact of various manufacturing/facilities problems previously reported, aided by a price increase, despite an effective federal income tax rate increase from 29% to a normalized 35% due to lesser federal tax credits."
Mr. Asbjornson added that, "We have increased our investment in equipment and facilities in 2011 by 257% over the average of the preceding three years and continue to introduce new products, all of which have positioned AAON to benefit from future opportunities. Significantly, our increased market penetration has produced a 15% rise in our backlog from $47.2 million at September 30, 2010, to $54.1 million at September 30, 2011."
The Company will host a conference call today at 4:15 P.M. ET to discuss the third quarter results. To participate, call 877-737-1669 (Pass Code: VA46804).
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, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Net sales | $ | 73,829 | $ | 64,886 | $ | 202,818 | $ | 178,726 | |||||||||
| Cost of sales | 59,570 | 52,389 | 165,184 | 137,729 | |||||||||||||
| Gross profit | 14,259 | 12,497 | 37,634 | 40,997 | |||||||||||||
| Selling, general and | |||||||||||||||||
| administrative expenses | 5,445 | 5,166 | 16,685 | 16,592 | |||||||||||||
| Income from operations | 8,814 | 7,331 | 20,949 | 24,405 | |||||||||||||
| Interest expense | (59 | ) | (4 | ) | (173 | ) | (4 | ) | |||||||||
| Investment interest income | 11 | 44 | 54 | 162 | |||||||||||||
| Note receivable interest income | 11 | - | 33 | - | |||||||||||||
| Other income (expense), net | (122 | ) | (64 | ) | (690 | ) | (186 | ) | |||||||||
| Income before income taxes | 8,655 | 7,307 | 20,173 | 24,377 | |||||||||||||
| Income tax provision | 3,029 | 2,134 | 7,058 | 8,265 | |||||||||||||
| Net income | $ | 5,626 | $ | 5,173 | $ | 13,115 | $ | 16,112 | |||||||||
| Earnings per share: | |||||||||||||||||
| Basic* | $ | 0.23 | $ | 0.21 | $ | 0.53 | $ | 0.64 | |||||||||
| Diluted* | $ | 0.23 | $ | 0.21 | $ | 0.53 | $ | 0.63 | |||||||||
| Cash dividends declared per common share*: | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic* | 24,667 | 24,833 | 24,708 | 25,337 | |||||||||||||
| Diluted* | 24,844 | 24,971 | 24,902 | 25,471 | |||||||||||||
*Reflects three-for-two stock split effective June 13, 2011.
| AAON, Inc., and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (unaudited) | ||||||||
| September 30, 2011 | December 31, 2010 | |||||||
| Assets | (in thousands except share and per share data) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,278 | $ | 2,393 | ||||
| Certificates of deposit | - | 1,503 | ||||||
| Investments held to maturity at amortized cost | 572 | 9,520 | ||||||
| Accounts receivable, net | 40,082 | 39,901 | ||||||
| Note receivable | 26 | 26 | ||||||
| Inventories, net | 42,256 | 33,602 | ||||||
| Prepaid expenses and other | 850 | 656 | ||||||
| Deferred tax assets | 4,735 | 4,147 | ||||||
| Total current assets | 90,799 | 91,748 | ||||||
| Property, plant and equipment: | ||||||||
| Land | 1,340 | 1,328 | ||||||
| Buildings | 53,846 | 45,482 | ||||||
| Machinery and equipment | 121,256 | 100,559 | ||||||
| Furniture and fixtures | 7,456 | 6,356 | ||||||
| Total property, plant and equipment | 183,898 | 153,725 | ||||||
| Less: Accumulated depreciation | 93,533 | 86,307 | ||||||
| Property, plant and equipment, net | 90,365 | 67,418 | ||||||
| Note receivable, long-term | 1,090 | 1,111 | ||||||
| Total assets | $ | 182,254 | $ | 160,277 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Revolving credit facility | $ | 13,965 | $ | - | ||||
| Accounts payable | 11,260 | 13,017 | ||||||
| Accrued liabilities | 23,923 | 23,229 | ||||||
| Total current liabilities | 49,148 | 36,246 | ||||||
| Deferred tax liabilities | 7,832 | 7,292 | ||||||
| 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, 24,653,493 and 24,758,480 issued and outstanding at September 30, 2011 and December 31, 2010, respectively* | 99 |
99 |
||||||
| Retained earnings | 125,175 | 116,640 | ||||||
| Total stockholders' equity | 125,274 | 116,739 | ||||||
| Total liabilities and stockholders' equity | $ | 182,254 | $ | 160,277 | ||||
* Reflects three-for-two stock split effective June 13, 2011.
| AAON, Inc., and Subsidiaries | |||||||||||
| Consolidated Statements of Cash Flows | |||||||||||
| (unaudited) | |||||||||||
| Nine Months Ended September 30, 2011 |
Nine Months Ended September 30, 2010 |
||||||||||
| (in thousands) | |||||||||||
| Operating Activities | |||||||||||
| Net income | $ | 13,115 | $ | 16,112 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation | 8,174 | 7,330 | |||||||||
| Amortization of bond premiums | 155 | - | |||||||||
| Provision for losses on accounts receivable, net of adjustments | (242 | ) | (36 | ) | |||||||
| Share-based compensation | 509 | 609 | |||||||||
| Excess tax benefits from stock options exercised and restricted stock awards vested | (176 | ) | (331 | ) | |||||||
| Gain on disposition of assets | (14 | ) | (105 | ) | |||||||
| Deferred income taxes | (48 | ) | (705 | ) | |||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | 61 | (3,522 | ) | ||||||||
| Inventories | (8,654 | ) | (5,862 | ) | |||||||
| Prepaid expenses and other | (194 | ) | 542 | ||||||||
| Financial derivative assets | - | 1,743 | |||||||||
| Accounts payable | (2,281 | ) | 4,149 | ||||||||
| Accrued liabilities | 870 | 3,748 | |||||||||
| Net cash provided by operating activities | 11,275 | 23,672 | |||||||||
| Investing Activities | |||||||||||
| Proceeds from sale of property, plant and equipment | 55 | 105 | |||||||||
| Investment in certificates of deposit | - | (2,744 | ) | ||||||||
| Maturities of certificates of deposit | 1,503 | 799 | |||||||||
| Investments held to maturity | - | (13,692 | ) | ||||||||
| Maturities of investments | 8,793 | 2,149 | |||||||||
| Capital expenditures | (30,638 | ) | (13,050 | ) | |||||||
| Deposits on sale of asset held for sale | - | 453 | |||||||||
| Proceeds from note receivable | 21 | - | |||||||||
| Net cash used in investing activities | (20,266 | ) | (25,980 | ) | |||||||
| Financing Activities | |||||||||||
| Borrowings under revolving credit facility | 66,557 | 6,682 | |||||||||
| Payments under revolving credit facility | (52,592 | ) | (2,691 | ) | |||||||
| Payments of long-term debt | - | (68 | ) | ||||||||
| Stock options exercised | 373 | 1,054 | |||||||||
| Excess tax benefits from stock options exercised and restricted stock awards vested | 176 | 331 | |||||||||
| Repurchases of stock | (2,662 | ) | (18,377 | ) | |||||||
| Cash dividends paid to stockholders | (2,976 | )* | (6,192 | ) | |||||||
| Net cash provided by (used) in financing activities | 8,876 | (19,261 | ) | ||||||||
| Effect of exchange rate on cash | - | 79 | |||||||||
| Net decrease in cash and cash equivalents | (115 | ) | (21,490 | ) | |||||||
| Cash and cash equivalents, beginning of year | 2,393 | 25,639 | |||||||||
| Cash and cash equivalents, end of period | $ | 2,278 | $ | 4,149 | |||||||
*Includes cash payment in lieu of fractional shares resulting from three-for-two stock split effective June 13, 2011.
| AAON, Inc., and Subsidiaries | ||||||
| Consolidated Statements of Cash Flows (continued) | ||||||
| (unaudited) | ||||||
| Nine Months Ended September 30, 2011 |
Nine Months Ended September 30, 2010 |
|||||
| (in thousands) | ||||||
| Non Cash Investing Activities | ||||||
| Capital expenditures accrued in accounts payable | $ | 524 | - | |||
Contact Information:
For Further Information:
Jerry R. Levine
Phone: (914) 244-0292
Fax: (914) 244-0295
Email: jrladvisor@yahoo.com