Message #13 From:
NewsBot Date: August 8, 2006 04:00:00 AM
AAON News AAON Reports Record Sales and Higher Earnings
TULSA, Okla.--(BUSINESS WIRE)--Aug. 8, 2006--AAON, Inc. (Nasdaq:AAON) today announced its operating results for the second quarter and six-month period ended June 30, 2006.
In the quarter, revenues were a record high of $59,137,000, up 30.3% from $45,394,000 during the corresponding period in 2005, and net income increased 10.6% to $3,455,000 or $0.27 per share compared to $3,125,000 or $0.24 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 sales was attributable to an increase in the commercial and industrial construction activity, the Company's new and redesigned products being favorably received by its customers, and price increases during 2006." He said, "The increase in earnings resulted from both higher volume and price increases, partially offset by continuing material cost increases which decreased gross margins."
Net sales for the first six months of 2006 were up 27.9%, $112,757,000, compared to $88,174,000 in 2005, and earnings increased by 12.3% to $7,198,000 or $0.57 per share, compared to $6,412,000 or $0.50 per share.
Mr. Asbjornson said that, "Based upon our current record backlog of orders and the continuing trend of strong incoming orders, we believe that our full year 2006 total sales will be significantly above the 2005 level. The Company is currently seeing a moderating environment of raw material and component pricing and, if this trend continues, it should enable the Company to achieve improvement in gross margins over the remainder of the year."
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 Six Months Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
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(in thousands, except share and per share data)
Net sales $59,137 $45,394 $112,757 $88,174
Cost of sales 49,018 37,022 92,254 69,752
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Gross profit 10,119 8,372 20,503 18,422
Selling, general and
administrative
expenses 4,853 3,810 9,418 8,573
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Income from
operations 5,266 4,562 11,085 9,849
Interest expense (10) (4) (22) (6)
Interest income 15 11 24 25
Other income 138 54 264 190
----------- ----------- ----------- -----------
Income before income
taxes 5,409 4,623 11,351 10,058
Income tax provision 1,954 1,498 4,153 3,646
----------- ----------- ----------- -----------
Net income $3,455 $3,125 $7,198 $6,412
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Earnings Per Share:
Basic $0.28 $0.25 $0.59 $0.52
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Diluted $0.27 $0.24 $0.57 $0.50
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Weighted Average Shares
Outstanding:
Basic 12,315,485 12,360,071 12,296,426 12,373,381
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Diluted 12,666,393 12,786,294 12,650,201 12,790,635
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AAON, Inc. & Subsidiaries
Consolidated Balance Sheets
(unaudited)
June 30, December 31,
2006 2005
--------------------------
(in thousands, except
share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $66 $837
Certificate of deposit 1,000 1,000
Accounts receivable, net 37,637 32,487
Inventories, net 23,895 23,708
Prepaid expenses 383 1,041
Deferred income tax 3,670 3,877
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Total current assets 66,651 62,950
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PROPERTY, PLANT AND EQUIPMENT
Land 2,230 2,193
Buildings 29,990 28,953
Machinery and equipment 70,043 58,983
Furniture and fixtures 5,707 5,514
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Total property, plant & equipment 107,970 95,643
Less: accumulated depreciation 49,530 45,062
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Net property, plant & equipment 58,440 50,581
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NOTES RECEIVABLE, LONG-TERM 75 75
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Total assets $125,166 $113,606
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $2,225 $--
Current maturities of long-term debt 108 108
Accounts payable 16,481 11,643
Accrued liabilities 17,518 17,827
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Total current liabilities 36,332 29,578
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LONG-TERM DEBT, LESS CURRENT MATURITIES 5 59
------------- ------------
DEFERRED TAX LIABILITY 3,969 4,474
------------- ------------
STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par, 5,000,000
shares authorized, no shares issued -- --
Common Stock, $.004 par, 50,000,000
shares authorized, and 12,335,891 and
12,233,558 issued and outstanding at
June 30, 2006, and December 31, 2005,
respectively 49 49
Additional paid-in capital 622 --
Accumulated other comprehensive income,
net of tax 848 513
Retained earnings 83,341 78,933
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Total stockholders' equity 84,860 79,495
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Total liabilities and stockholders' equity $125,166 $113,606
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AAON, Inc. & Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
2006 2005
----------- ------------
(in thousands)
OPERATING ACTIVITIES
Net income $7,198 $6,412
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 4,478 4,019
Provision for losses on accounts
receivable 375 149
Loss on disposition of assets -- 28
Share-based compensation 236 --
Excess tax benefits from stock options
exercised (1,270) --
Deferred income taxes (298) (1,108)
Changes in assets and liabilities:
Accounts receivable (5,525) (759)
Inventories (187) (2,342)
Prepaid expenses 658 247
Accounts payable 4,838 (1,103)
Accrued liabilities 961 539
----------- ------------
Net cash provided by operating activities 11,464 6,082
INVESTING ACTIVITIES
Proceeds from matured certificate of
deposit 2,000 3,000
Investment in certificate of deposit (2,000) (2,500)
Notes receivable, long-term -- (75)
Capital expenditures (12,337) (5,471)
----------- ------------
Net cash used in investing activities (12,337) (5,046)
FINANCING ACTIVITIES
Borrowings under revolving credit facility 22,810 10,971
Payments under revolving credit facility (20,585) (10,713)
Payments of long-term debt (54) (51)
Stock options exercised 1,002 491
Excess tax benefits from stock options
exercised 1,270 --
Repurchase of stock (2,199) (2,401)
Cash dividends paid to stockholders (2,478) --
----------- ------------
Net cash used in financing activities (234) (1,703)
----------- ------------
Effect of exchange rate on cash 336 (91)
----------- ------------
Net decrease in cash and cash equivalents (771) (758)
----------- ------------
Cash and cash equivalents, beginning of year 837 994
----------- ------------
Cash and cash equivalents, end of period $66 $236
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