AAON, Inc., and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
September September September September
30, 2008 30, 2007 30, 2008 30, 2007
--------- --------- --------- ---------
(in thousands, except per share data)
Net sales $ 79,279 $ 70,907 $ 219,516 $ 200,370
Cost of sales 59,261 57,267 165,856 155,410
--------- --------- --------- ---------
Gross profit 20,018 13,640 53,660 44,960
Selling, general and
administrative expenses 7,294 5,492 19,325 16,509
--------- --------- --------- ---------
Income from operations 12,724 8,148 34,335 28,451
Interest expense (39) (3) (58) (10)
Interest income - 1 27 7
Other income (expense), net 169 (346) 416 (76)
--------- --------- --------- ---------
Income before income taxes 12,854 7,800 34,720 28,372
Income tax provision 4,499 2,418 12,171 9,796
--------- --------- --------- ---------
Net income $ 8,355 $ 5,382 $ 22,549 $ 18,576
========= ========= ========= =========
Earnings Per Share:
Basic $ 0.49 $ 0.29 $ 1.28 $ 1.00
========= ========= ========= =========
Diluted $ 0.47 $ 0.28 $ 1.25 $ 0.98
========= ========= ========= =========
Cash dividends declared per
common share: $ 0.00 $ 0.00 $ 0.16 $ 0.16
========= ========= ========= =========
Weighted Average Shares
Outstanding:
Basic 17,264 18,741 17,683 18,665
========= ========= ========= =========
Diluted 17,484 19,003 18,028 18,976
========= ========= ========= =========
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
2008 2007
------------- -------------
(in thousands, except share
and per share data)
Assets
Current assets:
Cash and cash equivalents $ 330 $ 879
Accounts receivable, net 48,029 38,813
Inventories, net 34,112 31,849
Prepaid expenses and other 516 442
Deferred tax assets 4,782 4,312
------------- -------------
Total current assets 87,769 76,295
Property, plant and equipment
Land 2,297 2,354
Buildings 34,365 32,211
Machinery and equipment 85,781 82,872
Furniture and fixtures 7,085 6,912
------------- -------------
Total property, plant and equipment 129,528 124,349
Less: Accumulated depreciation 70,551 63,579
------------- -------------
Property, plant and equipment, net 58,977 60,770
Note receivable, long-term 75 75
------------- -------------
Total assets $ 146,821 $ 137,140
============= =============
Liabilities & Stockholders' Equity
Current liabilities:
Revolving credit facility $ 2,440 $ -
Current maturities of long-term debt 91 91
Accounts payable 21,271 15,059
Dividends payable - 2,943
Accrued liabilities 25,471 19,414
------------- -------------
Total current liabilities 49,273 37,507
Other long-term liabilities 171 239
Deferred tax liabilities 3,751 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, 17,150,949 and
18,054,246 issued and outstanding at
September 30, 2008 and December 31, 2007,
respectively 71 73
Additional paid-in capital - -
Accumulated other comprehensive income 1,559 1,942
Retained earnings 91,996 93,405
------------- -------------
Total stockholders' equity 93,626 95,420
------------- -------------
Total liabilities and stockholders' equity $ 146,821 $ 137,140
============= =============
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Nine Months
Ended Ended
September 30, September 30,
2008 2007
------------ ------------
(in thousands)
Operating Activities
Net income $ 22,549 $ 18,576
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 7,151 7,153
Provision for losses on accounts
receivable 568 221
Share-based compensation 603 466
Excess tax benefits from stock options
exercised and restricted stock awards
vested (1,262) (2,743)
Gain on disposition of assets (11) (11)
Deferred income taxes (832) (662)
Changes in assets and liabilities:
Accounts receivable (9,904) (4,975)
Inventories, net (2,340) (3,032)
Prepaid expenses and other (75) (139)
Accounts payable 6,687 (3,303)
Accrued liabilities 6,951 6,300
------------ ------------
Net cash provided by operating activities 30,085 17,851
------------ ------------
Investing Activities
Proceeds from sale of property, plant and
equipment 1 21
Capital expenditures (5,475) (8,650)
------------ ------------
Net cash used in investing activities (5,474) (8,629)
------------ ------------
Financing Activities
Borrowings under revolving credit facility 30,090 12,142
Payments under revolving credit facility (27,650) (12,142)
Payments of long-term debt (68) (59)
Stock options exercised 1,105 2,404
Excess tax benefits from stock options
exercised and restricted stock awards
vested 1,262 2,743
Repurchase of stock (24,082) (7,149)
Cash dividends paid to stockholders (5,791) (4,958)
------------ ------------
Net cash used in financing activities (25,134) (7,019)
------------ ------------
Effect of exchange rate on cash (26) 224
------------ ------------
Net increase (decrease) in cash and cash
equivalents (549) 2,427
------------ ------------
Cash and cash equivalents, beginning of year 879 288
------------ ------------
Cash and cash equivalents, end of period $ 330 $ 2,715
============ ============
Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295 Email: