TULSA, OK--(Marketwire - August 6, 2010) - AAON, Inc. (
In the quarter, net sales decreased 6% to $64.5 million from $68.6 million and net income decreased 18% to $5.8 million from $7.1 million in the second quarter of 2009. Earnings per diluted share were $0.34, down 17% from $0.41 for the same period a year ago, based upon 17.0 million and 17.3 million diluted shares outstanding for the three months ended June 30, 2010, compared to June 30, 2009, respectively. Net sales for the first six months of 2010 decreased 14% to $113.8 million from $132.6 million in 2009, and net income decreased 21% to $10.9 million from $13.8 million. Earnings per diluted share were $0.64, down 20% from $0.80, based upon 17.2 million and 17.3 million diluted shares outstanding for the six months ended June 30, 2010, compared to June 30, 2009, respectively.
Norman H. Asbjornson, President and CEO, stated, "The decreases in sales and earnings were attributable to a continuation of poor economic conditions. Even though we expect the second half of 2010 to be challenging, we continue to significantly invest in our equipment and facilities and introduce new products which are enabling AAON to gain market share and position us to benefit from any upturn in the industry."
The Company will host a conference call today at 10:00 A.M. ET to discuss the second quarter results. To participate, call 1-877-737-1669 (Pass code VA16176).
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
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2010 | June 30, 2009 | June 30, 2010 | June 30, 2009 | ||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Net sales | $ | 64,531 | $ | 68,597 | $ | 113,840 | $ | 132,562 | |||||||||
| Cost of sales | 49,025 | 50,493 | 85,340 | 97,524 | |||||||||||||
| Gross profit | 15,506 | 18,104 | 28,500 | 35,038 | |||||||||||||
| Selling, general and administrative expenses | 6,598 |
6,793 |
11,426 |
13,328 |
|||||||||||||
| Income from operations | 8,908 | 11,311 | 17,074 | 21,710 | |||||||||||||
| Interest expense | - | - | - | (9 | ) | ||||||||||||
| Interest income | 112 | 7 | 118 | 7 | |||||||||||||
| Other income (expense), net | (62 | ) | (71 | ) | (122 | ) | 174 | ||||||||||
| Income before income taxes | 8,958 | 11,247 | 17,070 | 21,882 | |||||||||||||
| Income tax provision | 3,137 | 4,150 | 6,131 | 8,057 | |||||||||||||
| Net income | $ | 5,821 | $ | 7,097 | $ | 10,939 | $ | 13,825 | |||||||||
| Earnings per share: | |||||||||||||||||
| Basic | $ | 0.34 | $ | 0.41 | $ | 0.64 | $ | 0.80 | |||||||||
| Diluted | $ | 0.34 | $ | 0.41 | $ | 0.64 | $ | 0.80 | |||||||||
| Cash dividends declared per common share: | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 16,940 | 17,170 | 17,063 | 17,179 | |||||||||||||
| Diluted | 17,030 | 17,315 | 17,150 | 17,325 | |||||||||||||
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
| June 30, 2010 | December 31, 2009 | ||||||
| (in thousands, except share and per share data) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 4,101 | $ | 25,639 | |||
| Certificates of deposit | 1,785 | - | |||||
| Investments held to maturity at amortized cost | 10,630 | - | |||||
| Accounts receivable, net | 36,459 | 33,381 | |||||
| Inventories, net | 34,242 | 28,788 | |||||
| Prepaid expenses and other | 661 | 1,087 | |||||
| Financial derivative asset | 989 | 2,200 | |||||
| Assets held for sale, net | 1,532 | 1,522 | |||||
| Deferred tax assets | 4,580 | 3,623 | |||||
| Total current assets | 94,979 | 96,240 | |||||
| Property, plant and equipment | |||||||
| Land | 1,328 | 1,328 | |||||
| Buildings | 43,522 | 41,697 | |||||
| Machinery and equipment | 94,549 | 90,213 | |||||
| Furniture and fixtures | 7,470 | 7,225 | |||||
| Total property, plant and equipment | 146,869 | 140,463 | |||||
| Less: Accumulated depreciation | 85,312 | 80,567 | |||||
| Property, plant and equipment, net | 61,557 | 59,896 | |||||
| Note receivable, long-term | 75 | 75 | |||||
| Certificates of deposit | 240 | - | |||||
| Investments held to maturity at amortized cost | 2,462 | - | |||||
| Total assets | $ | 159,313 | $ | 156,211 | |||
| Liabilities & Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Revolving credit facility | $ | - | $ | - | |||
| Current maturities of long-term debt | 30 | 76 | |||||
| Accounts payable | 18,537 | 8,524 | |||||
| Dividends payable | - | 3,100 | |||||
| Accrued liabilities | 23,594 | 19,186 | |||||
| Total current liabilities | 42,161 | 30,886 | |||||
| Long-term debt, less current maturities | - | - | |||||
| Deferred tax liabilities | 6,999 | 7,326 | |||||
| Commitments and contingencies | |||||||
| Stockholder's Equity | |||||||
| Preferred stock, $.001 par value, 7,500,000 shares authorized, no shares issued | - |
- |
|||||
| Common stock, $.004 par value, 75,000,000 shares issued authorized, 16,576,022 and 17,214,979 issued and outstanding at June 30, 2010 and December 31, 2009, respectively | 69 |
71 |
|||||
| Additional paid-in capital | - | 644 | |||||
| Accumulated other comprehensive income, net of tax | 1,084 | 1,077 | |||||
| Retained earnings | 109,000 | 116,207 | |||||
| Total stockholders' equity | 110,153 | 117,999 | |||||
| Total liabilities and stockholders' equity | $ | 159,313 | $ | 156,211 | |||
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
| Six Months Ended June 30, 2010 | Six Months Ended June 30, 2009 | |||||||||
| (in thousands) | ||||||||||
| Operating Activities | ||||||||||
| Net income | $ | 10,939 | $ | 13,825 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation | 4,812 | 4,564 | ||||||||
| Provision for losses on accounts receivable, net of adjustment | (164 | ) | 634 | |||||||
| Share-based compensation | 421 | 419 | ||||||||
| Excess tax benefits from stock options exercised and restricted stock awards vested | (342 |
) |
(180 |
) |
||||||
| Deferred income taxes | (1,284 | ) | (1,103 | ) | ||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | (2,914 | ) | (3,047 | ) | ||||||
| Inventories | (5,454 | ) | 5,058 | |||||||
| Prepaid expenses and other | 426 | (290 | ) | |||||||
| Financial derivative asset | 1,211 | |||||||||
| Accounts payable | 10,012 | 808 | ||||||||
| Accrued liabilities | 4,745 | 5,763 | ||||||||
| Net cash provided by operating activities | 22,408 | 26,451 | ||||||||
| Investing Activities | ||||||||||
| Investment in certificates of deposit | (2,025 | ) | - | |||||||
| Investments held to maturity at amortized cost | (13,092 | ) | - | |||||||
| Capital expenditures | (6,472 | ) | (5,803 | ) | ||||||
| Net cash used in investing activities | (21,589 | ) | (5,803 | ) | ||||||
| Financing Activities | ||||||||||
| Borrowings under revolving credit facility | - | 9,972 | ||||||||
| Payments under revolving credit facility | - | (12,873 | ) | |||||||
| Payments of long-term debt | (46 | ) | (45 | ) | ||||||
| Stock options exercised | 976 | 323 | ||||||||
| Excess tax benefits from stock options exercised and restricted stock awards vested | 342 | 180 | ||||||||
| Repurchase of stock | (17,439 | ) | (1,862 | ) | ||||||
| Cash dividends paid to stockholders | (6,192 | ) | (2,773 | ) | ||||||
| Net cash used in financing activities | (22,359 | ) | (7,078 | ) | ||||||
| Effect of exchange rate on cash | 2 | 81 | ||||||||
| Net increase (decrease) in cash and cash equivalents | (21,538 | ) | 13,651 | |||||||
| Cash and cash equivalents, beginning of year | 25,639 | 269 | ||||||||
| Cash and cash equivalents, end of period | $ | 4,101 | $ | 13,920 | ||||||
Contact Information:
For Further Information:
Jerry R. Levine
Phone: (914) 244-0292
Fax: (914) 244-0295
Email: jrladvisor@yahoo.com