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
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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
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Income before income taxes 8,112 10,635
Income tax provision 2,994 3,907
------------- -------------
Net income $ 5,118 $ 6,728
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Earnings per share:
Basic $ 0.30 $ 0.39
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Diluted $ 0.30 $ 0.39
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Weighted average shares outstanding:
Basic 17,186 17,189
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Diluted 17,271 17,335
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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
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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
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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
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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
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Total stockholders' equity 121,510 117,999
------------- -------------
Total liabilities and stockholders' equity $ 160,167 $ 156,211
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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
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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)
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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
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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