TULSA, OK--(Marketwire - November 2, 2009) - AAON, INC. (
In the quarter, net sales decreased 26% to $58.5 million from $79.3 million and net income decreased 8% to $7.7 million from $8.4 million from third quarter 2008. Earnings per diluted share were $0.45, down 4% from $0.47 for the same period a year ago, based upon 17.3 million and 17.5 million diluted shares outstanding for the three months ended September 30, 2009, compared to September 30, 2008, respectively. Net sales for the first nine months of 2009 decreased 13% to $191.1 million from $219.5 million in 2008, and net income decreased 4% to $21.6 million from $22.5 million. Earnings per diluted share were $1.25 in 2009 and 2008, based upon 17.3 million and 18.0 million diluted shares outstanding for the nine months ended September 30, 2009, compared to September 30, 2008, respectively.
Norman H. Asbjornson, President and CEO, stated that, "The decrease in sales was attributable primarily to current economic conditions. The much lower decrease in net income (8% Net Income vs. 26% Sales) reflects a $1,005,400 reduction in cost of sales resulting from our hedging of copper, as well as outstanding operating performance due to production and labor efficiencies, lower material costs and reduced manufacturing related expenses." The $1,005,400 is a benefit to Net Income of $633,400 or $0.04 earnings per diluted share.
Mr. Asbjornson said that, "We expect the downturn in the economy which we experienced to an even greater extent in the third quarter will continue to impact our business for the foreseeable future; however, we have a strong liquidity position with cash on hand of $17.9 million at September 30, 2009, a record high quarter end amount. In view of the current economic environment, our goal remains to keep a healthy financial condition."
The Company will host a conference call today at 4:15 P.M. EST to discuss the third quarter results. To participate, call 1-877-737-1669.
AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling 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
(Unaudited)
Three Months Ended Nine Months Ended
September September September September
30, 30, 30, 30,
2009 2008 2009 2008
--------- --------- --------- ---------
(in thousands, except per share data)
Net sales $ 58,492 $ 79,279 $ 191,054 $ 219,516
Cost of sales 40,764 59,261 138,288 165,856
--------- --------- --------- ---------
Gross profit 17,728 20,018 52,766 53,660
Selling, general and
administrative expenses 5,313 7,294 18,641 19,325
--------- --------- --------- ---------
Income from operations 12,415 12,724 34,125 34,335
Interest expense - (39) (9) (58)
Interest income 64 - 71 27
Other income (expense), net (173) 169 1 416
--------- --------- --------- ---------
Income before income taxes 12,306 12,854 34,188 34,720
Income tax provision 4,565 4,499 12,622 12,171
--------- --------- --------- ---------
Net income $ 7,741 $ 8,355 $ 21,566 $ 22,549
========= ========= ========= =========
Earnings per share:
Basic $ 0.45 $ 0.49 $ 1.26 $ 1.28
========= ========= ========= =========
Diluted $ 0.45 $ 0.47 $ 1.25 $ 1.25
========= ========= ========= =========
Cash dividends declared
per common share: $ 0.00 $ 0.00 $ 0.18 $ 0.16
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 17,175 17,264 17,178 17,683
========= ========= ========= =========
Diluted 17,304 17,484 17,318 18,028
========= ========= ========= =========
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
2009 2008
------------ ------------
(in thousands, except
share and per share data)
Assets
Current assets:
Cash and cash equivalents $ 17,894 $ 269
Accounts receivable, net 35,728 38,804
Inventories, net 31,268 36,382
Prepaid expenses and other 960 428
Derivative assets 806 -
Assets held for sale, net 1,473 -
Deferred tax assets 4,638 4,235
------------ ------------
Total current assets 92,767 80,118
Property, plant and equipment
Land 1,328 2,153
Buildings 41,171 36,371
Machinery and equipment 90,331 87,219
Furniture and fixtures 7,407 7,076
------------ ------------
Total property, plant and equipment 140,237 132,819
Less: Accumulated depreciation 79,008 72,269
------------ ------------
Property, plant and equipment, net 61,229 60,550
Derivative assets 199 -
Note receivable, long-term 75 75
------------ ------------
Total assets $ 154,270 $ 140,743
============ ============
Liabilities & Stockholders' Equity
Current liabilities:
Revolving credit facility $ - $ 2,901
Current maturities of long-term debt 91 91
Accounts payable 12,217 14,715
Dividends payable - 2,773
Accrued liabilities 23,242 19,038
------------ ------------
Total current liabilities 35,550 39,518
Other long-term debt 8 121
Deferred tax liabilities 3,839 4,582
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, 17,178,944 and
17,208,733 issued and outstanding at
September 30, 2009 and December 31, 2008,
respectively 71 71
Additional paid-in capital 329 538
Accumulated other comprehensive income, net
of tax 1,321 778
Retained earnings 113,152 95,135
------------ ------------
Total stockholders' equity 114,873 96,522
------------ ------------
Total liabilities and stockholders' equity $ 154,270 $ 140,743
============ ============
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Nine Nine
Months Months
Ended Ended
September September
30, 30,
2009 2008
-------- --------
(in thousands)
Operating Activities
Net income $ 21,566 $ 22,549
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 6,682 7,151
Provision for losses on accounts receivable 603 568
Provision for excess and obsolete inventories 414 -
Share-based compensation 631 603
Excess tax benefits from stock options exercised
and restricted stock awards vested (389) (1,262)
Gain on disposition of assets 4 (11)
Unrealized gain on derivative assets (1,005) -
Deferred income taxes (819) (832)
Changes in assets and liabilities:
Accounts receivable 2,551 (9,904)
Inventories 4,742 (2,340)
Prepaid expenses and other (532) (75)
Accounts payable (2,695) 6,687
Accrued liabilities 4,576 6,951
-------- --------
Net cash provided by operating activities 36,329 30,085
-------- --------
Investing Activities
Proceeds from sale of property, plant, and equipment - 1
Capital expenditures (8,644) (5,475)
-------- --------
Net cash used in investing activities (8,644) (5,474)
-------- --------
Financing Activities
Borrowings under revolving credit facility 9,972 30,090
Payments under revolving credit facility (12,873) (27,650)
Payments of long-term debt (113) (68)
Stock options exercised 871 1,105
Excess tax benefits from stock options exercised
and restricted stock awards vested 389 1,262
Repurchases of stock (2,548) (24,082)
Cash dividends paid to stockholders (5,874) (5,791)
-------- --------
Net cash used in financing activities (10,176) (25,134)
-------- --------
Effect of exchange rate on cash 116 (26)
-------- --------
Net increase (decrease) in cash and cash equivalents 17,625 (549)
-------- --------
Cash and cash equivalents, beginning of year 269 879
-------- --------
Cash and cash equivalents, end of period $ 17,894 $ 330
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Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295