AAON, Inc., and Subsidiaries Consolidated Statements of Income (unaudited) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2010 2009 2010 2009 ------------- ------------- ------------- ------------- (in thousands, except per share data) Net sales $ 64,886 $ 58,492 $ 178,726 $ 191,054 Cost of sales 52,389 40,764 137,729 138,288 ------------- ------------- ------------- ------------- Gross profit 12,497 17,728 40,997 52,766 Selling, general and administrative expenses 5,166 5,313 16,592 18,641 ------------- ------------- ------------- ------------- Income from operations 7,331 12,415 24,405 34,125 Interest expense (4) - (4) (9) Interest income 44 64 162 71 Other income (expense), net (64) (173) (186) 1 ------------- ------------- ------------- ------------- Income before income taxes 7,307 12,306 24,377 34,188 Income tax provision 2,134 4,565 8,265 12,622 ------------- ------------- ------------- ------------- Net income $ 5,173 $ 7,741 $ 16,112 $ 21,566 ============= ============= ============= ============= Earnings per share: Basic $ 0.31 $ 0.45 $ 0.95 $ 1.26 ============= ============= ============= ============= Diluted $ 0.31 $ 0.45 $ 0.95 $ 1.25 ============= ============= ============= ============= Cash dividends declared per common share: $ 0.00 $ 0.00 $ 0.18 $ 0.18 ============= ============= ============= ============= Weighted average shares outstanding: Basic 16,555 17,175 16,892 17,178 ============= ============= ============= ============= Diluted 16,647 17,304 16,981 17,318 ============= ============= ============= ============= AAON, Inc., and Subsidiaries Consolidated Balance Sheets (unaudited) September 30, 2010 December 31, 2009 ------------------ ------------------ (in thousands, except share and per share data) Assets Current assets: Cash and cash equivalents $ 4,149 $ 25,639 Certificates of deposit 1,945 - Investments held to maturity at amortized cost 10,939 - Accounts receivable, net 36,939 33,381 Note receivable, current 26 - Inventories, net 34,650 28,788 Prepaid expenses and other 545 1,087 Financial derivative asset 457 2,200 Assets held for sale, net - 1,522 Deferred tax assets 4,625 3,623 ------------------ ------------------ Total current assets 94,275 96,240 Property, plant and equipment Land 1,328 1,328 Buildings 44,326 41,697 Machinery and equipment 98,188 90,213 Furniture and fixtures 6,096 7,225 ------------------ ------------------ Total property, plant and equipment 149,938 140,463 Less: Accumulated depreciation 84,322 80,567 ------------------ ------------------ Property, plant and equipment, net 65,616 59,896 Note receivable, long-term 1,118 75 Investments held to maturity at amortized cost 604 - ------------------ ------------------ Total assets $ 161,613 $ 156,211 ================== ================== Liabilities & Stockholders' Equity Current liabilities: Revolving credit facility $ 3,991 $ - Current maturities of long-term debt 8 76 Accounts payable 13,442 8,524 Dividends payable - 3,100 Accrued liabilities 21,834 19,186 ------------------ ------------------ Total current liabilities 39,275 30,886 Long-term debt, less current maturities - - Deferred tax liabilities 7,623 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, 16,539,254 and 17,214,979 issued and outstanding at September 30, 2010 and December 31, 2009, respectively 69 71 Additional paid-in capital - 644 Accumulated other comprehensive income, net of tax - 1,077 Retained earnings 114,646 116,207 ------------------ ------------------ Total stockholders' equity 114,715 117,999 ------------------ ------------------ Total liabilities and stockholders' equity $ 161,613 $ 156,211 ================== ================== AAON, Inc., and Subsidiaries Consolidated Statements of Cash Flows (unaudited) Nine Months Nine Months Ended Ended September 30, 2010 September 30, 2009 ------------------ ------------------ (in thousands) Operating Activities Net income $ 16,112 $ 21,566 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 7,330 6,682 Provision for losses on accounts receivable, net of adjustment (36) 603 Share-based compensation 609 631 Excess tax benefits from stock options exercised and restricted stock awards vested (331) (389) (Gain) loss on disposition of assets (105) 4 Unrealized gain on financial derivative asset - (1,005) Deferred income taxes (705) (819) Changes in assets and liabilities: Accounts receivable (3,522) 2,551 Inventories (5,862) 5,156 Prepaid expenses and other 542 (532) Financial derivative asset 1,743 - Accounts payable 4,918 (2,695) Accrued liabilities 2,979 4,576 ------------------ ------------------ Net cash provided by operating activities 23,672 36,329 ------------------ ------------------ Investing Activities Proceeds from sale of property, plant and equipment 105 - Investment in certificates of deposit (1,945) - Investments held to maturity at amortized cost (11,543) - Deposits on sale of assets held for sale 453 Capital expenditures (13,050) (8,644) ------------------ ------------------ Net cash used in investing activities (25,980) (8,644) ------------------ ------------------ Financing Activities Borrowings under revolving credit facility 6,682 9,972 Payments under revolving credit facility (2,691) (12,873) Payments of long-term debt (68) (113) Stock options exercised 1,054 871 Excess tax benefits from stock options exercised and restricted stock awards vested 331 389 Repurchase of stock (18,377) (2,548) Cash dividends paid to stockholders (6,192) (5,874) ------------------ ------------------ Net cash used in financing activities (19,261) (10,176) ------------------ ------------------ Effect of exchange rate on cash 79 116 ------------------ ------------------ Net increase (decrease) in cash and cash equivalents (21,490) 17,625 ------------------ ------------------ Cash and cash equivalents, beginning of year 25,639 269 ------------------ ------------------ Cash and cash equivalents, end of period $ 4,149 $ 17,894 ================== ==================
Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295 Email: jrladvisor@yahoo.com