AAON, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - AAON, INC.	aaon_8k050812.htm

Exhibit 99.1

NEWS BULLETIN		AAON, Inc. 2425 South Yukon Ave. • Tulsa, OK 74107-2728 • Ph: (918) 583-2266 • Fax: (918) 583-6094 • •http://www.aaon.com•

FOR IMMEDIATE RELEASE May 8, 2012		For Further Information: Jerry R. Levine • Phone: (914) 244-0292 • Fax: (914) 244-0295 Email: jrladvisor@yahoo.com

AAON REPORTS HIGHER SALES AND EARNINGS

Tulsa, OK, May 8, 2012 – AAON, Inc. (NASDAQ-AAON) today announced its operating results for the three months ended March 31, 2012, of $65.0 million in sales (up 8%), and $4.6 million of net income (up 25%), $0.18 per share, compared to $59.9 million in sales and $3.7 million in net income, $0.15 per share, a year ago. Per share earnings are on a diluted basis.

Norman H. Asbjornson, President and CEO, stated, “The increase in revenues reflects a continuation of gains in market share, while the much greater increase in earnings was attributable to: improved productivity due to our new sheet metal fabrication equipment and revamped production lines, which resulted in an improvement of gross margins from 19.4% to 20.8%, despite continued material cost increases; aided by the absence of a special expense in 2012 comparable to the $500,000 insurance deductible paid in 2011; but reduced by $380,000 (or $0.02 per diluted share) due to the loss of expired federal income tax credits for research and development and our failure to qualify, during the period, for the domestic production activity tax credit.”

Mr. Asbjornson said, “Significantly, our increased market penetration has produced a 22% rise in our backlog from $48.1 million at March 31, 2011, to $58.7 million at March 31, 2012. In spite of a generally anticipated modest growth in the Heating, Ventilating and Air Conditioning market, I believe AAON’s development in the past few years of new products, improved manufacturing machinery and facilities has given AAON a more advantageous and optimistic view of our future.”

Mr. Asbjornson added, “Based on the first quarter results and backlog, we expect 2012 to produce both higher sales and earnings than 2011.”

The Company will host a conference call today at 4:15 P.M. EDT to discuss the first quarter results. To participate, call 1-877-737-1669 (Code: VA27085).

AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units, heat recovery units, commercial self-contained 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., and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Three Months Ended
	March 31, 2012			March 31, 2011
	(in thousands except per share amounts)

Net sales	$	64,957		$	59,913
Cost of sales		51,439			48,275
Gross profit		13,518			11,638
Selling, general and administrative expenses		5,981			5,537
(Gain) loss on disposal of assets		(23	)		6
Income from operations		7,560			6,095

Interest expense		(16	)		(10	)
Interest income		13			34
Other income (expense), net		48			(503	)

Income before income taxes		7,605			5,616
Income tax provision		3,038			1,966

Net income	$	4,567		$	3,650

Earnings per share:
Basic	$	0.19		$	0.15
Diluted	$	0.18		$	0.15

Cash dividends declared per common share	$	0.00		$	0.00

Weighted average shares outstanding:
Basic		24,587			24,744
Diluted		24,772			24,939

AAON, Inc., and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

	March 31, 2012		December 31, 2011
	(in thousands, except share and per share data)
Assets
Current assets:
Cash and cash equivalents	$	3,245	$	13
Accounts receivable, net		34,523		34,137
Income tax receivable		10,253		10,016
Note receivable		27		27
Inventories, net		36,755		34,948
Prepaid expenses and other		805		723
Deferred tax assets		3,865		4,523
Total current assets		89,473		84,387
Property, plant and equipment:
Land		1,340		1,340
Buildings		57,399		56,057
Machinery and equipment		115,910		114,256
Furniture and fixtures		8,057		7,784
Total property, plant and equipment		182,706		179,437
Less: Accumulated depreciation		88,522		85,935
Property, plant and equipment, net		94,184		93,502
Note receivable, long-term		1,108		1,092
Total assets	$	184,765	$	178,981
Liabilities and Stockholders’ Equity
Current liabilities:
Revolving credit facility		-		4,575
Accounts payable		16,224		14,118
Accrued liabilities		25,111		19,994
Total current liabilities		41,335		38,687
Deferred tax liabilities		17,302		17,790
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value, 11,250,000 shares authorized, no shares issued		-		-
Common stock, $.004 par value, 112,500,000 shares authorized, 24,563,272 and 24,618,324 issued and outstanding at March 31, 2012 and December 31, 2011, respectively		98		98
Retained earnings		126,030		122,406
Total stockholders’ equity		126,128		122,504
Total liabilities and stockholders’ equity	$	184,765	$	178,981

AAON, Inc., and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended
	March 31, 2012			March 31, 2011
	(in thousands)
Operating Activities
Net income	$	4,567		$	3,650

Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		3,394			2,703
Amortization of bond premiums		-			90
Provision for losses on accounts receivable, net of adjustments		4			(10	)
Share-based compensation		169			175
Excess tax benefits from stock options exercised
and restricted stock awards vested		(13	)		(10	)
(Gain) Loss on disposition of assets		(23	)		6
Effect of foreign currency (gain)loss		(23	)		(60	)
Deferred income taxes		170			(175	)
Changes in assets and liabilities:
Accounts receivable		(390	)		1,329
Income tax receivable		(237	)		-
Inventories		(1,807	)		(5,557	)
Prepaid expenses and other		(82	)		53
Accounts payable		712			666
Accrued liabilities		5,130			(1,445	)
Net cash provided by operating activities		11,571			1,415

Investing Activities
Proceeds from sale of property, plant and equipment		300			35
Maturities of certificates of deposit		-			827
Maturities of investments		-			4,181
Proceeds from note receivable		7			7
Capital expenditures		(2,959	)		(10,270	)
Net cash used in investing activities		(2,652	)		(5,220	)

Financing Activities
Borrowings under revolving credit facility		13,111			12,643
Payments under revolving credit facility		(17,686	)		(5,004	)
Stock options exercised		55			59
Excess tax benefits from stock options exercised
and restricted stock awards vested		13			10
Repurchases of stock		(1,180	)		(743	)
Net cash (used in) provided by financing activities		(5,687	)		6,965
Net increase in cash and cash equivalents		3,232			3,160
Cash and cash equivalents, beginning of year		13			2,393
Cash and cash equivalents, end of period	$	3,245		$	5,553

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