AAON, Inc., & Subsidiaries
Consolidated Statements of Operations
(unaudited)
Three Months Ended Nine Months Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
---------- ---------- ---------- ----------
(in thousands, except share and per share
data)
Net sales $ 70,907 $ 64,153 $ 200,370 $ 176,910
Cost of sales 57,267 50,562 155,410 142,816
---------- ---------- ---------- ----------
Gross profit 13,640 13,591 44,960 34,094
Selling, general and
administrative expenses 5,492 5,963 16,509 15,381
---------- ---------- ---------- ----------
Income from operations 8,148 7,628 28,451 18,713
Interest expense (3) (36) (10) (58)
Interest income 1 - 7 24
Other income (expense), net (346) 157 (76) 421
---------- ---------- ---------- ----------
Income before income taxes 7,800 7,749 28,372 19,100
Income tax provision 2,418 2,352 9,796 6,505
---------- ---------- ---------- ----------
Net income $ 5,382 $ 5,397 $ 18,576 $ 12,595
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Earnings per share:
Basic* $ 0.29 $ 0.29 $ 1.00 $ 0.68
========== ========== ========== ==========
Diluted* $ 0.28 $ 0.28 $ 0.98 $ 0.66
========== ========== ========== ==========
Weighted average shares
outstanding:
Basic* 18,740,666 18,478,343 18,665,035 18,455,997
========== ========== ========== ==========
Diluted* 19,003,150 18,991,789 18,976,093 18,985,616
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* Reflects three-for-two stock split effective August 21, 2007.
AAON, Inc., & Subsidiaries
Consolidated Balance Sheets
(unaudited)
September 30, December 31,
2007 2006
------------- -------------
(in thousands, except share
and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,715 $ 288
Accounts receivable, net 41,887 36,748
Inventories, net 32,738 29,502
Prepaid expenses and other 409 267
Deferred tax assets 4,473 3,954
------------- -------------
Total current assets 82,222 70,759
------------- -------------
PROPERTY, PLANT AND EQUIPMENT
Land 2,332 2,196
Buildings 31,945 31,272
Machinery and equipment 81,473 74,053
Furniture and fixtures 6,507 5,883
------------- -------------
Total property, plant & equipment 122,257 113,404
Less: accumulated depreciation 61,254 54,182
------------- -------------
Net property, plant & equipment 61,003 59,222
------------- -------------
NOTES RECEIVABLE, LONG-TERM 75 75
------------- -------------
Total assets $ 143,300 $ 130,056
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LIABILITIES & STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ - $ 59
Accounts payable 12,284 15,821
Dividends payable - 2,465
Accrued liabilities 20,448 16,058
------------- -------------
Total current liabilities 32,732 34,403
------------- -------------
OTHER LONG-TERM LIABILITIES 72 -
------------- -------------
DEFERRED TAX LIABILITIES 3,658 4,061
------------- -------------
STOCKHOLDERS’ EQUITY:
Preferred Stock, $.001 par, 7,500,000
shares authorized, no shares issued*
Common Stock, $.004 par, 75,000,000
shares authorized, and 18,770,234 and
18,508,248 issued and outstanding at
September 30, 2007, and December 31,
2006, respectively* 75 74
Additional paid-in capital* - 185
Accumulated other comprehensive income,
net of tax 1,762 667
Retained earnings 105,001 90,666
------------- -------------
Total stockholders’ equity 106,838 91,592
------------- -------------
Total liabilities and stockholders’ equity $ 143,300 $ 130,056
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* Reflects three-for-two stock split effective August 21, 2007.
AAON, Inc., & Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
Nine Nine
Months Months
Ended Ended
September September
30, 2007 30, 2006
--------- ---------
(in thousands)
OPERATING ACTIVITIES
Net income $ 18,576 $ 12,595
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 7,153 6,836
Provision for losses on accounts receivable 221 174
Gain on disposition of assets (11) -
Share-based compensation 466 380
Excess tax benefits from stock options
exercised (2,743) (1,280)
Deferred income taxes (662) (535)
Changes in assets and liabilities:
Accounts receivable (4,975) (13,935)
Inventories (3,032) (5,949)
Prepaid expenses and other (139) 430
Accounts payable (3,303) 7,570
Accrued liabilities 6,300 4,948
--------- ---------
Net cash provided by operating activities 17,851 11,234
INVESTING ACTIVITIES
Proceeds from sale of property, plant and
equipment 21 -
Proceeds from matured certificate of deposit - 3,000
Investment in certificate of deposit - (2,000)
Capital expenditures (8,650) (15,821)
--------- ---------
Net cash used in investing activities (8,629) (14,821)
FINANCING ACTIVITIES
Borrowings under revolving credit facility 12,142 42,967
Payments under revolving credit facility (12,142) (36,470)
Payments of long-term debt (59) (81)
Stock options exercised 2,404 1,018
Excess tax benefits from stock options exercised 2,743 1,280
Repurchase of stock (7,149) (3,108)
Cash dividends paid to stockholders (4,958) (2,478)
--------- ---------
Net cash (used in) provided by financing activities (7,019) 3,128
--------- ---------
Effect of exchange rate on cash 224 89
--------- ---------
Net increase (decrease) in cash and cash equivalents 2,427 (370)
--------- ---------
Cash and cash equivalents, beginning of year 288 837
--------- ---------
Cash and cash equivalents, end of period $ 2,715 $ 467
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Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295 Email: