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