AAON, Inc., and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31, March 31,
2008 2007
----------- -----------
(in thousands, except
per share data)
Net sales $ 65,456 $ 58,628
Cost of sales 49,804 42,906
----------- -----------
Gross profit 15,652 15,722
Selling, general and administrative expenses 5,902 5,747
----------- -----------
Income from operations 9,750 9,975
Interest expense (3) (10)
Interest income 21 3
Other income 130 188
----------- -----------
Income before income taxes 9,898 10,156
Income tax provision 3,464 3,839
----------- -----------
Net income $ 6,434 $ 6,317
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Earnings per share:
Basic $ 0.36 $ 0.34*
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Diluted $ 0.35 $ 0.33*
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Weighted average shares outstanding:
Basic 18,049 18,561*
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Diluted 18,311 18,902*
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* Reflects three-for-two stock split effective August 21, 2007.
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2008 2007
------------- -------------
(in thousands, except share
and per share data)
Assets
Current assets:
Cash and cash equivalents $ 5,474 $ 879
Accounts receivable, net 36,502 38,813
Inventories, net 33,003 31,849
Prepaid expenses and other 567 442
Deferred tax assets 4,124 4,312
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Total current assets 79,670 76,295
Property, plant and equipment
Land 2,323 2,354
Buildings 32,340 32,211
Machinery and equipment 83,618 82,872
Furniture and fixtures 6,942 6,912
------------- -------------
Total property, plant and equipment 125,223 124,349
Less: Accumulated depreciation 66,010 63,579
------------- -------------
Property, plant and equipment, net 59,213 60,770
Note receivable, long-term 75 75
------------- -------------
Total assets $ 138,958 $ 137,140
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Liabilities & Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt $ 91 $ 91
Accounts payable 15,457 15,059
Dividends payable - 2,943
Accrued liabilities 19,530 19,414
------------- -------------
Total current liabilities 35,078 37,507
Long-term liabilities 216 239
Deferred tax liabilities 3,433 3,974
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, 17,976,956 and
18,054,246 issued and outstanding at March
31, 2008 and December 31, 2007,
respectively 73 73
Additional paid-in capital - -
Accumulated other comprehensive income, net
of tax 1,703 1,942
Retained earnings 98,455 93,405
------------- -------------
Total stockholders’ equity 100,231 95,420
------------- -------------
Total liabilities and stockholders’ equity $ 138,958 $ 137,140
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AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2008 March 31, 2007
------------ ------------
(in thousands)
OPERATING ACTIVITIES
Net income $ 6,434 $ 6,317
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 2,457 2,273
Provision for losses on accounts receivable 26 186
Share-based compensation 241 163
Excess tax benefits from stock options
exercised (119) (1,563)
Gain on disposition of assets - (13)
Deferred income taxes (427) (148)
Changes in assets and liabilities:
Accounts receivable 2,212 (973)
Inventories, net (1,199) (3,179)
Prepaid expenses and other (125) (41)
Accounts payable 824 (955)
Accrued liabilities (134) 4,624
------------ ------------
Net cash provided by operating activities 10,190 6,691
------------ ------------
INVESTING ACTIVITIES
Proceeds from sale of property, plant and
equipment - 13
Capital expenditures (972) (4,537)
------------ ------------
Net cash used in investing activities (972) (4,524)
------------ ------------
FINANCING ACTIVITIES
Borrowings under revolving credit facility 4,219 8,537
Payments under revolving credit facility (4,219) (8,537)
Payments of long-term debt (23) (27)
Stock options exercised 79 659
Excess tax benefits from stock options
exercised 119 1,563
Repurchase of stock (1,823) (1,633)
Cash dividends paid to stockholders (2,943) (2,465)
------------ ------------
Net cash used in financing activities (4,591) (1,903)
------------ ------------
Effect of exchange rate on cash (32) (2)
------------ ------------
Net increase in cash and cash equivalents 4,595 262
------------ ------------
Cash and cash equivalents, beginning of year 879 288
------------ ------------
Cash and cash equivalents, end of period $ 5,474 $ 550
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Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295 Email: