Message #7 From:
NewsBot Date: August 2, 2005 12:00:00 AM
AAON News AAON Reports Higher Sales and Earnings
TULSA, Okla.--(BUSINESS WIRE)--Aug. 2, 2005--AAON, Inc. (NASDAQ:AAON) today announced its operating results for the second quarter and six-month period ended June 30, 2005.
In the quarter, revenues were $45,394,000, up 5.5% from $43,019,000 during the corresponding period in 2004, and net income increased 98.9% to $3,125,000 or $0.24 per share compared to $1,571,000 or $0.12 per share for the same period a year ago. Per share earnings are on a diluted basis.
Norman H. Asbjornson, President and CEO, stated that the increase in earnings was achieved despite continued, relatively high material costs, a loss by AAON Canada, although much less than in the first quarter, and the increased cost of sales and general and administrative costs.
Net sales for the first six months of 2005 were up 9.5%, $88,174,000, compared to $80,513,000 in 2004, and earnings increased by 64.1% to $6,412,000 or $0.50 per share, compared to $3,908,000 or $0.30 per share.
Mr. Asbjornson said that "based on the first half of the year results and other relevant factors, we expect 2005 to produce both higher sales and earnings than 2004."
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 Operations
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
-----------------------------------
(in thousands, except share and per
share data)
Net sales $45,394 $43,019 $88,174 $80,513
Cost of sales 37,022 36,664 69,752 66,457
-------- -------- -------- --------
Gross profit 8,372 6,355 18,422 14,056
Selling, general and
administrative expenses 3,863 3,791 8,545 7,758
-------- -------- -------- --------
Income from operations 4,509 2,564 9,877 6,298
Interest expense (4) (10) (6) (27)
Interest income 11 83 25 164
Other income (expense), net 107 (27) 162 (25)
-------- -------- -------- --------
Income before income taxes 4,623 2,610 10,058 6,410
Income tax provision 1,498 1,039 3,646 2,502
-------- -------- -------- --------
Net income $3,125 $1,571 $6,412 $3,908
======== ======== ======== ========
Earnings per share:
Basic $0.25 $0.13 $0.52 $0.31
======== ======== ======== ========
Diluted $0.24 $0.12 $0.50 $0.30
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 12,360 12,457 12,373 12,470
======== ======== ======== ========
Diluted 12,786 12,967 12,791 12,982
======== ======== ======== ========
AAON, Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited)
June 30, Dec. 31,
2005 2004
-------------------
(in thousands,
except share and
per share data)
Assets
Current assets:
Cash and cash equivalents $236 $994
Certificate of deposit 2,500 3,000
Accounts receivable, net 27,731 27,121
Inventories, net 23,210 20,868
Prepaid expenses and other 231 478
Deferred tax assets 4,343 3,537
--------- ---------
Total current assets 58,251 55,998
--------- ---------
Property, plant and equipment
Land 2,149 2,082
Buildings 27,291 26,805
Machinery and equipment 56,788 52,540
Furniture and fixtures 5,261 4,819
--------- ---------
Total property, plant & equipment 91,489 86,246
Less: accumulated depreciation 40,836 37,017
--------- ---------
Net property, plant & equipment 50,653 49,229
--------- ---------
Notes receivable, long-term 75 -
--------- ---------
Total assets $108,979 $105,227
========= =========
Liabilities and Stockholders' Equity
Current Liabilities:
Revolving credit agreement 258 -
Current maturities of
long-term debt 108 108
Accounts payable 11,779 12,882
Accrued liabilities 15,171 15,069
--------- ---------
Total current liabilities 27,316 28,059
--------- ---------
Long-term debt, less current maturities 116 167
--------- ---------
Deferred tax liabilities 5,528 5,830
--------- ---------
Stockholders' equity
Preferred Stock, $.001 par, 5,000,000 shares
authorized, no shares issued - -
Common Stock, $.004 par, 50,000,000 shares
authorized, and 12,314,733 and 12,349,583
issued and outstanding at June 30, 2005,
and December 31, 2004, respectively 49 49
Accumulated other comprehensive income 156 247
Retained earnings 75,814 70,875
--------- ---------
Total stockholders' equity 76,019 71,171
--------- ---------
Total liabilities and stockholders' equity $108,979 $105,227
========= =========
AAON, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
Six Six
Months Months
Ended Ended
June 30, June 30,
2005 2004
-----------------
(in thousands)
Operating Activities
Net income $6,412 $3,908
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 4,019 3,088
Provision for losses on accounts receivable 149 578
Loss on disposition of assets 28 4
Deferred income taxes (1,108) -
Changes in assets and liabilities,
net of effects of acquisition:
Accounts receivable (759) (1,561)
Inventories (2,342) (1,862)
Prepaid expenses and other 247 1,891
Accounts payable (1,103) (1,755)
Accrued liabilities 539 711
-----------------
Net cash provided by operating activities 6,082 5,002
Investing Activities
Cash paid for acquisition - (1,778)
Proceeds from sale of property,
plant and equipment - 13
Proceeds from matured certificate of deposit 3,000 10,000
Investment in certificate of deposit (2,500) (3,500)
Notes receivable, long-term (75) -
Capital expenditures (5,471) (8,199)
-----------------
Net cash used in investing activities (5,046) (3,464)
Financing Activities
Borrowings under revolving credit agreement 10,971 29,265
Payments under revolving credit agreement (10,713) (34,621)
Payments on long-term debt (51) -
Stock options exercised 491 632
Repurchase of stock (2,401) (2,977)
-----------------
Net cash used in financing activities (1,703) (7,701)
-----------------
Effect of exchange rate of cash (91) (6)
-----------------
Net decrease in cash (758) (6,169)
-----------------
Cash and cash equivalents, beginning of period 994 6,186
-----------------
Cash and cash equivalents, end of period $236 $17
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