Attached files
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| 8-K - 8-K - AAON, INC. | aaon_8k080812.htm |
Exhibit 99.1
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NEWS
BULLETIN
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AAON, Inc.
2425 South Yukon Ave. • Tulsa, OK 74107-2728
• Ph: (918) 583-2266 • Fax: (918) 583-6094 •
•http://www.aaon.com•
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FOR IMMEDIATE RELEASE
August 8, 2012
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For Further Information:
Jerry R. Levine • Phone: (914) 244-0292 • Fax: (914) 244-0295
Email: jrladvisor@yahoo.com
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AAON REPORTS RECORD SALES AND EARNINGS
Tulsa, OK, August 8, 2012 – AAON, Inc. (NASDAQ-AAON), today announced its operating results for the second quarter and six-month period ended June 30, 2012.
Sales and earnings during the second quarter were record highs for any quarter in the Company’s 24-year history.
Revenues in the quarter were $83.3 million, up 21% from $69.1 million in 2011. Net income was $9.3 million, up 142% from $3.8 million in the same period a year ago. Net sales for the first six months of 2012 were also a record for any six-month period, $148.3 million, up 15% compared to $129.0 in 2011. Earnings for the six months ended June 30, 2012, were $13.9 million, up 85% compared to $7.5 million in 2011.
Earnings per diluted share in the second quarter of 2012 were $0.38, up 153% from $0.15 for the same period a year ago, based upon 24.7 million and 24.9 million diluted shares outstanding for the three months ended June 30, 2012, compared to June 30, 2011, respectively. Earnings per diluted share were $0.56, up 87% from $0.30, based upon 24.8 million and 24.9 million diluted shares outstanding for the six months ended June 30, 2012, compared to June 30, 2011, respectively.
Norman H. Asbjornson, President and CEO, stated, “The increases in revenues primarily reflect gains in market share, while the much greater increases in earnings for the second quarter and first half of 2012, were attributable to significantly improved productivity due to our new sheet metal fabrication equipment and revamped production lines, which resulted in improvements of gross margins from 17.0% to 25.3% in the second quarters of 2011 and 2012, respectively, and 18.1% to 23.3% for the six-month periods ended June 30, 2011 and 2012. Our backlog at June 30, 2012, was $62.2 million compared to $59.7 million at the same time a year ago.”
Mr. Asbjornson said that, “We are pleased with the results of the first half of 2012, which were aided by extremely strong order input. However, there are a number of uncertainties, particularly as to the level of future order input, which make it difficult to forecast the business climate AAON will encounter during the second half of the year.”
The Company will host a conference call today at 4:15 P.M. EST to discuss the second quarter results. To participate, call 1-877-737-1669 (Code: VA34474).
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.
1
AAON, Inc., and Subsidiaries
Consolidated Statements of Income
(Unaudited) (In thousands, except per share data)
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Three Months Ended
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Six Month Ended
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June 30,
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June 30,
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2012
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2011
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2012
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2011
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Net sales
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$ | 83,333 | $ | 69,076 | $ | 148,290 | $ | 128,989 | ||||||||
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Cost of sales
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62,230 | 57,339 | 113,669 | 105,614 | ||||||||||||
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Gross profit
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21,103 | 11,737 | 34,621 | 23,375 | ||||||||||||
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Selling, general and administrative expenses
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6,899 | 5,711 | 12,880 | 11,248 | ||||||||||||
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(Gain) loss on disposal of assets
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10 | (14 | ) | (13 | ) | (8 | ) | |||||||||
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Income from operations
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14,194 | 6,040 | 21,754 | 12,135 | ||||||||||||
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Interest expense
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(11 | ) | (104 | ) | (27 | ) | (114 | ) | ||||||||
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Interest income
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2 | 31 | 15 | 65 | ||||||||||||
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Other income (expense), net
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(51 | ) | (65 | ) | (3 | ) | (568 | ) | ||||||||
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Income before income taxes
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14,134 | 5,902 | 21,739 | 11,518 | ||||||||||||
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Income tax provision
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4,837 | 2,063 | 7,875 | 4,029 | ||||||||||||
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Net income
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$ | 9,297 | $ | 3,839 | $ | 13,864 | $ | 7,489 | ||||||||
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Earnings per share
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Basic
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$ | 0.38 | $ | 0.16 | $ | 0.56 | $ | 0.30 | ||||||||
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Diluted
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$ | 0.38 | $ | 0.15 | $ | 0.56 | $ | 0.30 | ||||||||
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Cash dividends declared per common share:
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$ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | ||||||||
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Weighted average shares outstanding:
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Basic
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24,552 | 24,715 | 24,570 | 24,730 | ||||||||||||
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Diluted
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24,728 | 24,923 | 24,750 | 24,931 | ||||||||||||
2
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited) (In thousands, except share and per share data)
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June 30, 2012
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December 31, 2011
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Assets
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Current assets:
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Cash and cash equivalents
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$ | 3,082 | $ | 13 | ||||
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Certificates of deposit
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2,259 | - | ||||||
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Investments held to maturity at amortized cost
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1,254 | - | ||||||
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Accounts receivable, net
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52,087 | 34,137 | ||||||
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Income tax receivable
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197 | 10,016 | ||||||
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Note receivable
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27 | 27 | ||||||
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Inventories, net
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39,142 | 34,948 | ||||||
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Prepaid expenses and other
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814 | 723 | ||||||
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Deferred tax assets
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4,330 | 4,523 | ||||||
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Total current assets
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103,192 | 84,387 | ||||||
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Property, plant and equipment:
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Land
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1,340 | 1,340 | ||||||
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Buildings
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58,757 | 56,057 | ||||||
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Machinery and equipment
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116,255 | 114,256 | ||||||
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Furniture and fixtures
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8,318 | 7,784 | ||||||
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Total property, plant and equipment
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184,670 | 179,437 | ||||||
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Less: Accumulated depreciation
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91,472 | 85,935 | ||||||
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Property, plant and equipment, net
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93,198 | 93,502 | ||||||
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Certificates of deposit
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2,015 | - | ||||||
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Investments held to maturity at amortized cost
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4,079 | - | ||||||
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Note receivable, long-term
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1,070 | 1,092 | ||||||
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Total assets
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$ | 203,554 | $ | 178,981 | ||||
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Liabilities and Stockholders’ Equity
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Current liabilities:
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Revolving credit facility
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7,259 | 4,575 | ||||||
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Accounts payable
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16,978 | 14,118 | ||||||
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Dividends payable
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2,950 | - | ||||||
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Accrued liabilities
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27,656 | 19,994 | ||||||
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Total current liabilities
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54,843 | 38,687 | ||||||
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Deferred tax liabilities
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16,722 | 17,790 | ||||||
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Commitments and contingencies
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Stockholders’ equity:
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Preferred stock, $.001 par value, 11,250,000 shares authorized,
no shares issued
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- | - | ||||||
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Common stock, $.004 par value, 112,500,000 shares authorized,
24,543,861 and 24,618,324 issued and outstanding at June 30, 2012
and December 31, 2011, respectively
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98 | 98 | ||||||
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Retained earnings
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131,891 | 122,406 | ||||||
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Total stockholders’ equity
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131,989 | 122,504 | ||||||
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Total liabilities and stockholders’ equity
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$ | 203,554 | $ | 178,981 | ||||
3
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) (In thousands)
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Six Months Ended
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June 30,
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2012
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2011
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Operating Activities
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Net income
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$ | 13,864 | $ | 7,489 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation
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6,747 | 5,449 | ||||||
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Amortization of bond premiums
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20 | 137 | ||||||
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Provision for losses on accounts receivable, net of adjustments
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(1 | ) | (106 | ) | ||||
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Share-based compensation
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364 | 346 | ||||||
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Excess tax benefits from stock options exercised and restricted stock awards vested
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(33 | ) | (77 | ) | ||||
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Gain on disposition of assets
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(13 | ) | (8 | ) | ||||
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Foreign currency transaction (gain)losses
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7 | (59 | ) | |||||
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Deferred income taxes
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(875 | ) | 314 | |||||
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Changes in assets and liabilities:
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Accounts receivable
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(17,949 | ) | (2,687 | ) | ||||
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Income tax receivable
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5,801 | - | ||||||
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Inventories
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(4,194 | ) | (11,709 | ) | ||||
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Prepaid expenses and other
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(91 | ) | 234 | |||||
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Accounts payable
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4,215 | 10,957 | ||||||
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Accrued liabilities
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11,714 | (105 | ) | |||||
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Net cash provided by operating activities
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19,576 | 10,175 | ||||||
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Investing Activities
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Proceeds from sale of property, plant and equipment
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306 | 49 | ||||||
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Investment in certificates of deposits
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(4,274 | ) | - | |||||
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Maturities of certificates of deposits
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- | 1,263 | ||||||
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Purchases of investments held to maturity
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(5,624 | ) | - | |||||
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Maturities of investments
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- | 7,055 | ||||||
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Proceeds from called investment
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270 | - | ||||||
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Capital expenditures
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(8,091 | ) | (24,907 | ) | ||||
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Principal payments from note receivable
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15 | 14 | ||||||
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Net cash used in investing activities
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(17,398 | ) | (16,526 | ) | ||||
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Financing Activities
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Borrowings under revolving credit facility
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27,108 | 36,231 | ||||||
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Payments under revolving credit facility
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(24,424 | ) | (28,603 | ) | ||||
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Stock options exercised
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69 | 132 | ||||||
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Excess tax benefits from stock options exercised and restricted stock awards vested
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33 | 77 | ||||||
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Repurchases of stock
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(1,895 | ) | (1,779 | ) | ||||
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Cash dividends paid to stockholders
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- | (9 | ) | |||||
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Net cash provided by financing activities
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891 | 6,049 | ||||||
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Net increase (decrease) in cash and cash equivalents
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3,069 | (302 | ) | |||||
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Cash and cash equivalents, beginning of year
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13 | 2,393 | ||||||
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Cash and cash equivalents, end of period
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$ | 3,082 | $ | 2,091 | ||||
4