TULSA, OK--(Marketwire - March 11, 2009) - AAON, Inc. (
Norman H. Asbjornson, President and CEO, stated that, "The increase in sales was attributable to our diversified customer mix, an excellent response to many of our new and redesigned products and price increases. The increase in net income resulted from both higher volume and improved productivity."
Sales in the fourth quarter of 2008 declined by 3% to $60.2 million, from $62.1 million in 2007, while net income for the fourth quarter increased to $6.0 million, up 30% compared to $4.6 million in 2007. Net income was the highest for any fourth quarter in the Company's history.
Earnings per diluted share for 2008 were $1.60 compared to $1.22 in 2007, based upon 17.9 million and 18.9 million diluted shares outstanding, respectively. Earnings for the fourth quarters of 2008 and 2007 were $0.35 and $0.24 per diluted share, based upon 17.3 million and 18.8 million diluted shares outstanding, respectively.
Mr. Asbjornson said, "While we expect a very good first quarter of 2009, due to uncertain market conditions it is too early to predict outcomes for the balance of this year."
AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing 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.
The Company will host a conference call today at 4:15 P.M. EDT to discuss year 2008 and the fourth quarter results. To participate, call 1-877-852-6576.
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 Twelve Months Ended
December December December December
31, 2008 31, 2007 31, 2008 31, 2007
--------- --------- --------- ---------
(in thousands, except per share data)
Net sales $ 60,209 $ 62,147 $ 279,725 $ 262,517
Cost of sales 46,693 49,738 212,549 205,148
--------- --------- --------- ---------
Gross profit 13,516 12,409 67,176 57,369
Selling, general and
administrative expenses 4,463 5,194 23,788 21,703
--------- --------- --------- ---------
Income from operations 9,053 7,215 43,388 35,666
Interest expense (13) - (71) (10)
Interest income - 1 27 8
Other income (expense), net 308 (245) 724 (321)
--------- --------- --------- ---------
Income before income taxes 9,348 6,971 44,068 35,343
Income tax provision 3,308 2,391 15,479 12,187
--------- --------- --------- ---------
Net income $ 6,040 $ 4,580 $ 28,589 $ 23,156
========= ========= ========= =========
Earnings per share:
Basic $ 0.35 $ 0.25 $ 1.63 $ 1.24
========= ========= ========= =========
Diluted $ 0.35 $ 0.24 $ 1.60 $ 1.22
========= ========= ========= =========
Cash dividends declared
per common share: $ 0.16 $ 0.16 $ 0.32 $ 0.32
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 17,196 18,518 17,560 18,628
========= ========= ========= =========
Diluted 17,338 18,768 17,855 18,927
========= ========= ========= =========
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
December 31, December 31,
2008 2007
------------- -------------
(in thousands, except share
and per share data)
Assets
Current assets:
Cash and cash equivalents $ 269 $ 879
Accounts receivable, net 38,804 38,813
Inventories, net 36,382 31,849
Prepaid expenses and other 428 442
Deferred tax assets 4,235 4,312
------------- -------------
Total current assets 80,118 76,295
Property, plant and equipment
Land 2,153 2,354
Buildings 36,371 32,211
Machinery and equipment 87,219 82,872
Furniture and fixtures 7,076 6,912
------------- -------------
Total property, plant and equipment 132,819 124,349
Less: Accumulated depreciation 72,269 63,579
------------- -------------
Property, plant and equipment, net 60,550 60,770
Note receivable, long-term 75 75
------------- -------------
Total assets $ 140,743 $ 137,140
============= =============
Liabilities & Stockholders' Equity
Current liabilities:
Revolving credit facility $ 2,901 $ -
Current maturities of long-term debt 91 91
Accounts payable 14,715 15,059
Dividends payable 2,773 2,943
Accrued liabilities 19,038 19,414
------------- -------------
Total current liabilities 39,518 37,507
Other long-term liabilities 121 239
Deferred tax liabilities 4,582 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, 17,208,733 and
18,054,246 issued and outstanding at
December 31, 2008 and 2007, respectively 71 73
Additional paid-in capital 538 -
Accumulated other comprehensive income, net of
tax 778 1,942
Retained earnings 95,135 93,405
------------- -------------
Total stockholders' equity 96,522 95,420
------------- -------------
Total liabilities and stockholders' equity $ 140,743 $ 137,140
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AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
Twelve Months Twelve Months
Ended Ended
December 31, December 31,
2008 2007
------------- -------------
(in thousands)
Operating Activities
Net income $ 28,589 $ 23,156
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 9,412 9,665
Provision for losses on accounts
receivable 547 203
Share-based compensation 750 582
Excess tax benefits from stock options
exercised and restricted stock awards
vested (1,613) (2,998)
Gain on disposition of assets (27) (108)
Deferred income taxes 160 (124)
Changes in assets and liabilities:
Accounts receivable (905) (1,760)
Inventories, net (4,779) (2,095)
Prepaid expenses and other 13 (172)
Accounts payable 449 (1,370)
Accrued liabilities 851 6,268
------------- -------------
Net cash provided by operating activities 33,447 31,247
------------- -------------
Investing Activities
Proceeds from sale of property, plant and
equipment 17 123
Capital expenditures (9,610) (10,874)
------------- -------------
Net cash used in investing activities (9,593) (10,751)
------------- -------------
Financing Activities
Borrowings under revolving credit facility 46,865 12,142
Payments under revolving credit facility (43,964) (12,142)
Borrowings (payments) of long-term debt (118) 271
Stock options exercised 1,696 2,426
Excess tax benefits from stock options
exercised and restricted stock awards vested 1,613 2,998
Repurchase of stock (24,761) (20,773)
Cash dividends paid to stockholders (5,791) (4,958)
------------- -------------
Net cash used in financing activities (24,460) (20,036)
------------- -------------
Effect of exchange rate on cash (4) 131
------------- -------------
Net increase (decrease) in cash and cash
equivalents (610) 591
------------- -------------
Cash and cash equivalents, beginning of year 879 288
------------- -------------
Cash and cash equivalents, end of period $ 269 $ 879
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Contact Information: For Further Information: Jerry R. Levine Phone: (914) 244-0292 Fax: (914) 244-0295