Message #10 From:
NewsBot Date: October 25, 2005 12:00:00 AM
AAON News AAON Reports Higher Sales and Earnings
TULSA, Okla.--(BUSINESS WIRE)--Oct. 25, 2005--AAON, Inc. (Nasdaq:AAON) today announced its operating results for the third quarter and nine-month period ended September 30, 2005.
In the quarter, revenues were $48,136,000, up 1.6% from $47,387,000 during the corresponding period in 2004, and net income increased 81.1% to $2,766,000 or $0.22 per share compared to $1,527,000 or $0.12 per share for the same period a year ago.
Norman H. Asbjornson, President and CEO, stated that the Company's ability to achieve gross margins aligned more closely with historical gross margin levels enabled the Company to increase earnings despite continued, relatively high material costs, a loss by AAON Canada and an increase in SG&A expenses.
Net sales for the first nine months of 2005 were up 6.6%, $136,310,000, compared to $127,249,000 in 2004, and earnings increased by 68.9% to $9,177,000 or $0.72 per share, compared to $5,435,000 or $0.42 per share. All per share earnings are on a diluted basis.
Mr. Asbjornson said that "based on the first nine months' 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. & Subsidiaries
Consolidated Statements of Operations
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
-----------------------------------------------
(In thousands, except share and per share data)
Net sales $48,136 $47,387 $136,310 $127,249
Cost of sales 39,493 41,424 109,245 107,533
----------- ----------- ----------- -----------
Gross profit 8,643 5,963 27,065 19,716
Selling, general and
administrative
expenses 4,417 3,405 12,963 11,163
----------- ----------- ----------- -----------
Income from
operations 4,226 2,558 14,102 8,553
Interest expense (4) (8) (12) (35)
Interest income 19 10 44 174
Other income
(expense), net 167 144 331 422
----------- ----------- ----------- -----------
Income before income
taxes 4,408 2,704 14,465 9,114
Income tax provision 1,642 1,177 5,288 3,679
----------- ----------- ----------- -----------
Net income $2,766 $1,527 $9,177 $5,435
=========== =========== =========== ===========
Earnings Per Share:
Basic $0.22 $0.12 $0.74 $0.44
=========== =========== =========== ===========
Diluted $0.22 $0.12 $0.72 $0.42
=========== =========== =========== ===========
Weighted Average
Shares Outstanding:
Basic 12,331,957 12,420,941 12,359,421 12,453,360
=========== =========== =========== ===========
Diluted 12,739,896 12,898,497 12,773,570 12,954,207
=========== =========== =========== ===========
AAON, Inc.
Consolidated Balance Sheets
(unaudited)
September 30, December 31,
2005 2004
----------------------------
(In thousands, except share
and per share data)
Assets
Current assets:
Cash and cash equivalents $394 $994
Certificate of deposit -- 3,000
Accounts receivable, net 33,487 27,121
Inventories, net 23,444 20,868
Prepaid expenses and other 647 478
Deferred tax assets 4,984 3,537
-------------- -------------
Total current assets 62,956 55,998
-------------- -------------
Property, plant and equipment
Land 2,187 2,082
Buildings 28,319 26,805
Machinery and equipment 58,809 52,540
Furniture and fixtures 5,366 4,819
-------------- -------------
Total property, plant & equipment 94,681 86,246
Less: accumulated depreciation 43,020 37,017
-------------- -------------
Net property, plant & equipment 51,661 49,229
-------------- -------------
Notes receivable, long-term 75 --
-------------- -------------
Total assets $114,692 $105,227
============== =============
Liabilities and Stockholders' Equity
Current Liabilities:
Revolving credit facility 445 --
Current maturities of long-term debt 108 108
Accounts payable 14,112 12,882
Accrued liabilities 15,874 15,069
-------------- -------------
Total current liabilities 30,539 28,059
-------------- -------------
Long-term debt, less current maturities 86 167
-------------- -------------
Deferred tax liabilities 5,494 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 12,311,402 and
12,349,583 issued and outstanding at
September 30, 2005, and December 31,
2004, respectively 49 50
Accumulated other comprehensive loss 419 247
Retained earnings 78,105 70,874
-------------- -------------
Total stockholders' equity 78,573 71,171
-------------- -------------
Total liabilities and stockholders'
equity $114,692 $105,227
============== =============
AAON, Inc.
Consolidated Statements of Cash Flows
(unaudited)
Nine Months Nine Months
Ended Ended
September 30, September 30,
2005 2004
------------- -------------
(in thousands)
Operating Activities
Net income $9,177 $5,435
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 6,203 4,474
Provision for losses on accounts
receivable 361 486
Loss on disposition of assets 28 4
Deferred income taxes (1,783) (955)
Changes in assets and liabilities, net
of effects of acquisition:
Accounts receivable (6,727) (8,138)
Inventories (2,576) (1,487)
Prepaid expenses and other (169) 2,213
Accounts payable 1,230 (533)
Accrued liabilities 1,462 4,996
------------- -------------
Net cash provided by operating
activities 7,206 6,495
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 -- (2,000)
Notes receivable, long-term (75) --
Capital expenditures (8,663) (13,206)
------------- -------------
Net cash used in investing activities (5,738) (6,971)
FINANCING ACTIVITIES
Borrowings under revolving credit
facility 16,948 42,759
Payments under revolving credit facility (16,503) (44,912)
Payments on long-term debt (81) --
Stock options exercised 772 439
Repurchase of stock (3,376) (4,007)
------------- -------------
Net cash used in financing activities (2,240) (5,721)
------------- -------------
Effect of exchange rate on cash 172 24
------------- -------------
Net decrease in cash (600) (6,173)
------------- -------------
Cash and cash equivalents, beginning of
period 994 6,186
------------- -------------
Cash and cash equivalents, end of period $394 $13
============= =============
