TULSA, OK--(Marketwire - August 6, 2008) - AAON, Inc. (
In the quarter, net sales were a record high of $74.8 million, up 6% from $70.8 million during the corresponding period in 2007, and net income also reached a record level, up 13% to $7.8 million or $0.43 per diluted share, compared to $6.9 million or $0.36 per diluted share for the same period a year ago. Net sales for the first six months of 2008 were up 8% to a record $140.2 million, compared to $129.5 million in 2007, and earnings increased by 8% to a record $14.2 million or $0.78 per diluted share, compared to $13.2 million or $0.69 per diluted share. Per share earnings reflect a three-for-two stock split effective August 21, 2007.
Norman H. Asbjornson, President and CEO, stated that, "The increase in sales was attributable to our diversified customer mix, an excellent response to many of our new and redesigned products and price increases made in late 2007. The increase in net income resulted from both higher volume and improved productivity."
Mr. Asbjornson added that, "Based on the first half year results and other relevant factors, we expect a strong third quarter and record sales and earnings for the year 2008."
The Company will host a conference call today at 4:15 pm EDT to discuss the second quarter results. To participate, call 1-877-852-6576.
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 Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
---------- ----------- ---------- ----------
(in thousands, except per share data)
Net sales $ 74,781 $ 70,835 $ 140,237 $ 129,463
Cost of sales 56,791 55,237 106,595 98,143
---------- ----------- ---------- ----------
Gross profit 17,990 15,598 33,642 31,320
Selling, general and
administrative expenses 6,129 5,270 12,031 11,017
---------- ----------- ---------- ----------
Income from
operations 11,861 10,328 21,611 20,303
Interest expense and other (16) 3 (19) (7)
Interest income 6 3 27 6
Other income 117 82 247 270
---------- ----------- ---------- ----------
Income before income taxes 11,968 10,416 21,866 20,572
Income tax provision 4,208 3,539 7,672 7,378
---------- ----------- ---------- ----------
Net income $ 7,760 $ 6,877 $ 14,194 $ 13,194
========== =========== ========== ==========
Earnings Per Share:
Basic $ 0.43 $ 0.37* $ 0.79 $ 0.71*
========== =========== ========== ==========
Diluted $ 0.43 $ 0.36* $ 0.78 $ 0.69*
========== =========== ========== ==========
Weighted Average Shares
Outstanding:
Basic 17,740 18,691* 17,894 18,627*
========== =========== ========== ==========
Diluted 18,145 19,336* 18,302 19,492*
========== =========== ========== ==========
* Reflects three-for-two stock split effective August 21, 2007.
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
2008 2007
------------- -------------
(in thousands, except share
and per share data)
Assets
Current assets:
Cash and cash equivalents $ 505 $ 879
Accounts receivable, net 49,555 38,813
Inventories, net 31,389 31,849
Prepaid expenses and other 725 442
Deferred tax assets 4,459 4,312
------------- -------------
Total current assets 86,633 76,295
Property, plant and equipment
Land 2,323 2,354
Buildings 32,403 32,211
Machinery and equipment 83,903 82,872
Furniture and fixtures 7,000 6,912
------------- -------------
Total property, plant and equipment 125,629 124,349
Less: Accumulated depreciation 68,379 63,579
------------- -------------
Property, plant and equipment, net 57,250 60,770
Note receivable, long-term 75 75
------------- -------------
Total assets $ 143,958 $ 137,140
============= =============
Liabilities & Stockholders’ Equity
Current liabilities:
Revolving credit facility $ 4,087 $ -
Current maturities of long-term debt 91 91
Accounts payable 18,023 15,059
Dividends payable 2,848 2,943
Accrued liabilities 24,837 19,414
------------- -------------
Total current liabilities 49,886 37,507
Other long-term liabilities 194 239
Deferred tax liabilities 3,576 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, 17,281,448 and
18,054,246 issued and outstanding at June
30, 2008 and December 31, 2007,
respectively 71 73
Additional paid-in capital - -
Accumulated other comprehensive income 1,706 1,942
Retained earnings 88,525 93,405
------------- -------------
Total stockholders’ equity 90,302 95,420
------------- -------------
Total liabilities and stockholders’ equity $ 143,958 $ 137,140
============= =============
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Six Months
Ended Ended
June 30, 2008 June 30, 2007
------------- -------------
(in thousands)
Operating Activities
Net income $ 14,194 $ 13,194
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 4,838 4,660
Provision for losses on accounts
receivable 13 234
Share-based compensation 413 311
Excess tax benefits from stock options
exercised (229) (1,814)
Gain on disposition of assets (1) (11)
Deferred income taxes (615) (676)
Changes in assets and liabilities:
Accounts receivable (10,832) (9,439)
Inventories, net 414 (4,821)
Prepaid expenses and other (283) (247)
Accounts payable 3,393 1,324
Accrued liabilities 5,279 7,105
------------- -------------
Net cash provided by operating activities 16,584 9,820
------------- -------------
Investing Activities
Proceeds from sale of property, plant and
equipment 1 21
Capital expenditures (1,390) (7,209)
------------- -------------
Net cash used in investing activities (1,389) (7,188)
------------- -------------
Financing Activities
Borrowings under revolving credit facility 12,853 8,898
Payments under revolving credit facility (8,766) (8,898)
Payments of long-term debt (45) (54)
Stock options exercised 394 1,000
Excess tax benefits from stock options
exercised 229 1,814
Repurchase of stock (17,264) (2,932)
Cash dividends paid to stockholders (2,943) (2,465)
------------- -------------
Net cash used in financing activities (15,542) (2,637)
------------- -------------
Effect of exchange rate on cash (27) 43
------------- -------------
Net increase (decrease) in cash and cash
equivalents (374) 38
------------- -------------
Cash and cash equivalents, beginning of year 879 288
------------- -------------
Cash and cash equivalents, end of period $ 505 $ 326
============= =============
Contact Information: For Further Information: Jerry Levine Ph: (914) 244-0292 Fax: (914) 244-0295 Email: