Message #18 From:
Stock News Bot Date: March 14, 2007 04:00:00 AM
AAON News AAON Reports Record Sales and Earnings
TULSA, Okla.--(BUSINESS WIRE)--AAON, Inc. (Nasdaq:AAON) today announced its operating results for the year 2006. Sales increased 25% to $231.5 million from $185.2 million in 2005, and net income increased 49% to $17.1 million compared to $11.5 million in the previous year. Both sales and net income were all-time record highs.
Norman H. Asbjornson, President and CEO, stated that, “The increase in sales was attributable to an increase in volume of products sold as a result of an improvement of the commercial and industrial construction industry, an increased demand for the Company’s new and redesigned products, and price increases during 2006. The increase in earnings resulted from both higher volume and price increases, which provided an improvement in gross margins.”
Sales in the fourth quarter of 2006 increased to $54.6 million, up 12%, from $48.9 million in 2005, and net income for the quarter increased to $4.5 million, up 96%, compared to $2.3 million in 2005. Sales and net income were the highest for any fourth quarter in the Company’s history.
Earnings per share for 2006 were $1.35 compared to $0.90 in 2005. Earnings for the fourth quarter of 2006 were $0.35 per share compared to $0.18 per share in the previous year. Per share earnings are on a diluted basis.
Mr. Asbjornson said, “We expect the momentum generated in 2006 to continue in 2007, resulting in even higher sales and earnings.”
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.
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.
Consolidated Statements of Operations
Three Months Ended
Twelve Months Ended
Dec. 31, 2006
Dec. 31, 2005
Dec. 31, 2006
Dec. 31, 2005
(In thousands, except share and per share data)
Net sales
$ 54,550
$ 48,885
$ 231,460
$ 185,195
Cost of sales
44,754
40,659
187,570
149,904
Gross profit
9,796
8,226
43,890
35,291
Selling, general and administrative expenses
2,678
4,514
18,059
17,477
Income from operations
7,118
3,712
25,831
17,814
Interest expense
(23)
(4)
(81)
(16)
Interest income
-
23
24
67
Other (expense) income
3
136
424
467
Income before income taxes
7,098
3,867
26,198
18,332
Income tax provision
2,560
1,582
9,065
6,870
Net income
$ 4,538
$ 2,285
$ 17,133
$ 11,462
Earnings Per Share:
Basic
$0.37
$0.19
$1.39
$0.93
Diluted
$0.35
$0.18
$1.35
$0.90
Weighted Average Shares Outstanding:
Basic
12,304,291
12,282,363
12,304,072
12,339,998
Diluted
12,649,733
12,679,300
12,652,403
12,749,844
AAON, Inc.
Consolidated Balance Sheets
December 31,
2006
December 31,
2005
(In thousands, except share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 288
$ 837
Certificate of deposit
-
1,000
Accounts receivable, net
36,748
32,487
Inventories, net
29,502
23,708
Prepaid expenses
267
1,041
Deferred income tax
3,954
3,877
Total current assets
70,759
62,950
PROPERTY, PLANT AND EQUIPMENT
Land
2,196
2,193
Buildings
31,272
28,953
Machinery and equipment
74,053
58,983
Furniture and fixtures
5,883
5,514
Total property, plant & equipment
113,404
95,643
Less: accumulated depreciation
54,182
45,062
Net property, plant & equipment
59,222
50,581
NOTES RECEIVABLE, long term
75
75
Total assets
$ 130,056
$ 113,606
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current portion of long-term debt
59
108
Accounts payable
15,821
11,643
Dividends payable
2,465
-
Accrued liabilities
16,058
17,827
Total current liabilities
34,403
29,578
LONG-TERM DEBT, less current maturities
-
59
DEFERRED TAX LIABILITY
4,061
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 12,338,832 and 12,233,558 issued and outstanding at December 31, 2006, and December 31, 2005, respectively
49
49
Additional paid-in capital
210
-
Accumulated other comprehensive loss
667
513
Retained earnings
90,666
78,933
Total stockholders’ equity
91,592
79,495
Total liabilities and stockholders’ equity
$ 130,056
$ 113,606
AAON, Inc.
Consolidated Statements of Cash Flows
Twelve Months
Ended
Dec. 31, 2006
Twelve Months
Ended
Dec. 31, 2005
(in thousands)
Operating Activities
Net income
$ 17,133
$ 11,462
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
9,146
8,503
Provision for losses on accounts receivable
(61)
68
Share-based compensation
500
-
Excess tax benefits from stock options exercised
(1,852)
-
(Gain)/Loss on disposition of assets
-
130
Deferred income taxes
(510)
(1,696)
Changes in assets and liabilities:
Accounts receivable
(4,195)
(5,366)
Inventories
(5,790)
(2,840)
Prepaid expenses and other
776
(563)
Accounts payable
4,178
(1,269)
Accrued liabilities
103
3,537
Net cash provided by operating activities
19,428
11,966
Investing Activities
Proceeds from sale of property, plant and equipment
