AAON Reports First Quarter Results


TULSA, OK--(Marketwire - May 6, 2010) - AAON, Inc. (NASDAQ: AAON) today announced its operating results for the three months ended March 31, 2010 compared to March 31, 2009. Sales decreased 23% to $49.3 million from $64.0 million and net income declined 24% to $5.1 million from $6.7 million. Earnings per diluted share were $0.30, down 23% from $0.39, based upon 17.3 million diluted shares outstanding both years.

Norman H. Asbjornson, President and CEO, stated, "The decreases in sales and earnings were attributable to current economic conditions."

Mr. Asbjornson added that, "Our outlook is for lower sales and earnings compared to 2009 based upon a continuation of reduced U.S. nonresidential construction spending in the foreseeable future. However, on the positive side, all of our new products are being very well received and our market share is growing."

The Company will host a conference call today at 4:15 P.M. EDT to discuss the first quarter results. To participate, call 1-877-737-1699 (Code: VA22404).

AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units, heat recovery units, commercial self-contained 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


                                                   Three Months Ended
                                                March 31,      March 31,
                                                  2010           2009
                                              -------------  -------------
                                                (in thousands, except per
                                                      share data)

Net sales                                     $      49,309  $      63,965

Cost of sales                                        36,315         47,031
                                              -------------  -------------

  Gross profit                                       12,994         16,934

Selling, general and administrative
 expenses                                             4,828          6,535
                                              -------------  -------------

  Income from operations                              8,166         10,399

Interest expense                                          -             (9)

Interest income                                           6              -

Other income (expense), net                             (60)           245
                                              -------------  -------------

Income before income taxes                            8,112         10,635

Income tax provision                                  2,994          3,907
                                              -------------  -------------

  Net income                                  $       5,118  $       6,728
                                              =============  =============

Earnings per share:
  Basic                                       $        0.30  $        0.39
                                              =============  =============
  Diluted                                     $        0.30  $        0.39
                                              =============  =============

Weighted average shares outstanding:
  Basic                                              17,186         17,189
                                              =============  =============
  Diluted                                            17,271         17,335
                                              =============  =============





                       AAON, Inc., and Subsidiaries
                        Consolidated Balance Sheets


                                                 March 31,    December 31,
                                                   2010           2009
                                               -------------  -------------
                                               (in thousands, except share
                                                   and per share data)
Assets
Current assets:
     Cash and cash equivalents                 $      15,590  $      25,639
     Certificates of deposit                           1,824              -
     Investments held to maturity at amortized
      cost                                             7,894              -
     Accounts receivable, net                         30,496         33,381
     Inventories, net                                 30,586         28,788
     Prepaid expenses and other                          580          1,087
     Financial derivative assets                       1,674          2,200
     Assets held for sale, net                         1,573          1,522
     Deferred tax assets                               4,251          3,623
                                               -------------  -------------
Total current assets                                  94,468         96,240

Property, plant and equipment
     Land                                              1,328          1,328
     Buildings                                        42,546         41,697
     Machinery and equipment                          92,695         90,213
     Furniture and fixtures                            7,377          7,225
                                               -------------  -------------
          Total property, plant and equipment        143,946        140,463
          Less: Accumulated depreciation              82,926         80,567
                                               -------------  -------------
Property, plant and equipment, net                    61,020         59,896

Note receivable, long-term                                75             75
Certificates of deposit                                  680              -
Investments held to maturity at amortized cost         3,924              -
                                               -------------  -------------
Total assets                                   $     160,167  $     156,211
                                               =============  =============

Liabilities & Stockholders' Equity
Current liabilities:
     Revolving credit facility                 $           -  $           -
     Current maturities of long-term debt                 53             76
     Accounts payable                                 11,413          8,524
     Dividends payable                                     -          3,100
     Accrued liabilities                              20,156         19,186
                                               -------------  -------------
Total current liabilities                             31,622         30,886

Long-term debt, less current maturities                    -              -
Deferred tax liabilities                               7,035          7,326
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, 17,130,566 and
      17,214,979 issued and outstanding at
      March 31, 2010 and December 31, 2009,
      respectively                                        71             71
     Additional paid-in capital                            -            644
     Accumulated other comprehensive income,
      net of tax                                       1,118          1,077
     Retained earnings                               120,321        116,207
                                               -------------  -------------
Total stockholders' equity                           121,510        117,999
                                               -------------  -------------
Total liabilities and stockholders' equity     $     160,167  $     156,211
                                               =============  =============





                       AAON, Inc., and Subsidiaries
                  Consolidated Statements of Cash Flows


                                              Three Months   Three Months
                                                  Ended          Ended
                                                March 31,      March 31,
                                                  2010           2009
                                              -------------  -------------
                                                     (in thousands)
Operating Activities
  Net income                                  $       5,118  $       6,728

  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                      2,405          2,282
    Provision for losses on accounts
     receivable, net of adjustment                      (96)           410
    Share-based compensation                            209            188
    Excess tax benefits from stock options
     exercised and restricted stock awards
     vested                                             (16)            (2)
    Deferred income taxes                              (919)          (718)
    Changes in assets and liabilities:
     Accounts receivable                              2,981         (2,537)
     Inventories                                     (1,798)         2,557
     Prepaid expenses and other                         507            (87)
     Financial derivative assets                        526
     Accounts payable                                 2,884           (452)
     Accrued liabilities                                983          4,996
                                              -------------  -------------
  Net cash provided by operating activities          12,784         13,365
                                              -------------  -------------

Investing Activities
  Investment in certificates of deposit              (2,504)             -
  Investments held to maturity at amortized
   cost                                             (11,818)
  Capital expenditures                               (3,529)        (3,512)
                                              -------------  -------------
  Net cash used in investing activities             (17,851)        (3,512)
                                              -------------  -------------

Financing Activities
  Borrowings under revolving credit facility              -          9,972
  Payments under revolving credit facility                -        (12,873)
  Payments of long-term debt                            (23)           (22)
  Stock options exercised                               128             10
  Excess tax benefits from stock options
   exercised and restricted stock awards
   vested                                                16              2
  Repurchase of stock                                (2,001)          (702)
  Cash dividends paid to stockholders                (3,100)        (2,773)
                                              -------------  -------------
  Net cash used in financing activities              (4,980)        (6,386)
                                              -------------  -------------
Effect of exchange rate on cash                          (2)           (11)
                                              -------------  -------------
Net increase (decrease) in cash and cash
 equivalents                                        (10,049)         3,456
                                              -------------  -------------
Cash and cash equivalents, beginning of year         25,639            269
                                              -------------  -------------
Cash and cash equivalents, end of period      $      15,590  $       3,725
                                              =============  =============

Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295 Email: jrladvisor@yahoo.com AAON, Inc. 2425 South Yukon Ave. Tulsa, OK 74107-2728 Ph: (918) 583-2266 Fax: (918) 583-6094 http://www.aaon.com