AAON, Inc., and Subsidiaries
Consolidated Statements of Income
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
----------- ----------- ----------- -----------
(in thousands, except share and per share data)
Net sales $ 62,147 $ 54,550 $ 262,517 $ 231,460
Cost of sales 49,738 44,754 205,148 187,570
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Gross profit 12,409 9,796 57,369 43,890
Selling, general and
administrative expenses 5,194 2,678 21,703 18,059
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Income from operations 7,215 7,118 35,666 25,831
Interest expense - (23) (10) (81)
Interest income 1 - 8 24
Other income (expense),
net (245) 3 (321) 424
----------- ----------- ----------- -----------
Income before income
taxes 6,971 7,098 35,343 26,198
Income tax provision 2,391 2,560 12,187 9,065
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Net income $ 4,580 $ 4,538 $ 23,156 $ 17,133
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Earnings per share:
Basic* $ 0.25 $ 0.25 $ 1.24 $ 0.93
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Diluted* $ 0.24 $ 0.24 $ 1.22 $ 0.90
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Weighted average shares
outstanding:
Basic* 18,518,216 18,456,437 18,628,029 18,456,108
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Diluted* 18,767,701 18,929,086 18,927,044 18,967,594
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* Reflects three-for-two stock split effective August 21, 2007.
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
December 31, December 31,
2007 2006
------------- -------------
(in thousands, except share
and per share data)
Assets
Current assets:
Cash and cash equivalents $ 879 $ 288
Accounts receivable, net 38,813 36,748
Inventories, net 31,849 29,502
Prepaid expenses and other 442 267
Deferred tax asset 4,312 3,954
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Total current assets 76,295 70,759
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Property, plant and equipment
Land 2,354 2,196
Buildings 32,211 31,272
Machinery and equipment 82,872 74,053
Furniture and fixtures 6,912 5,883
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Total property, plant and equipment 124,349 113,404
Less: Accumulated depreciation 63,579 54,182
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Property, plant and equipment, net 60,770 59,222
Note receivable, long-term 75 75
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Total assets $ 137,140 $ 130,056
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Liabilities & Stockholders' Equity
Current liabilities:
Current maturities of long-term debt $ 91 $ 59
Accounts payable 15,059 15,821
Dividends payable 2,943 2,465
Accrued liabilities 19,414 16,058
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Total current liabilities 37,507 34,403
Other long-term liabilities 239 -
Deferred tax liability 3,974 4,061
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value, 7,500,000
shares authorized, no shares issued*
Common stock, $.004 par value, 75,000,000
shares authorized, 18,054,246 and
18,508,248 issued and outstanding at
December 31, 2007 and 2006, respectively* 73 74
Additional paid-in capital - 185
Accumulated other comprehensive income 1,942 667
Retained earnings 93,405 90,666
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Total stockholders' equity 95,420 91,592
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Total liabilities and stockholders' equity $ 137,140 $ 130,056
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* Reflects three-for-two stock split effective August 21, 2007.
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
Twelve Twelve
Months Ended Months Ended
December 31, December 31,
2007 2006
------------ ------------
(in thousands)
OPERATING ACTIVITIES
Net income $ 23,156 $ 17,133
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 9,665 9,146
Provision for losses on accounts
receivable 203 (59)
Share-based compensation 582 500
Excess tax benefits from stock options
exercised (2,998) (1,852)
Gain on disposition of assets (108) -
Deferred income taxes (124) (510)
Changes in assets and liabilities:
Accounts receivable (1,760) (4,197)
Inventories, net (2,095) (5,790)
Prepaid expenses and other (172) 776
Accounts payable (1,370) 4,178
Accrued liabilities 6,268 103
------------ ------------
Net cash provided by operating activities 31,247 19,428
INVESTING ACTIVITIES
Proceeds from sale of property, plant and
equipment 123 -
Proceeds from matured certificate of deposit - 3,000
Investment in certificate of deposit - (2,000)
Capital expenditures (10,874) (17,781)
------------ ------------
Net cash used in investing activities (10,751) (16,781)
FINANCING ACTIVITIES
Borrowings under revolving credit facility 12,142 53,706
Payments under revolving credit facility (12,142) (53,706)
Borrowings (payments) of long-term debt 271 (108)
Stock options exercised 2,426 1,256
Excess tax benefits from stock options
exercised 2,998 1,852
Repurchase of stock (20,773) (3,855)
Cash dividends paid to stockholders (4,958) (2,478)
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Net cash used in financing activities (20,036) (3,333)
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Effect of exchange rate on cash 131 137
------------ ------------
Net increase (decrease) in cash and cash
equivalents 591 (549)
------------ ------------
Cash and cash equivalents, beginning of year 288 837
------------ ------------
Cash and cash equivalents, end of year $ 879 $ 288
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Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295 Email: