|By Marketwired .||
|May 5, 2014 07:00 AM EDT||
TULSA, OK -- (Marketwired) -- 05/05/14 -- AAON, Inc. (NASDAQ: AAON), today announced its operating results for the three months ended March 31, 2014. Sales in the first quarter were $76.4 million, up 14.3% from $66.8 million in 2013. Net income was $9.8 million, up 37.6% from $7.1 million in the same period a year ago. Earnings per diluted share in the first quarter of 2014 were $0.26, up 36.8% from $0.19 for the same period the previous year, based upon 37.1 million and 37.0 million shares outstanding at March 31, 2014 and 2013, respectively. All per share earnings and shares reflect the 3-for-2 stock split effective July 2, 2013.
Both sales and earnings in 2014 were all-time records for any first quarter in the history of AAON.
Further, it should be noted that income before taxes in 2014 was $14.3 million, up 71.0% from $8.3 million in the same period a year ago. The effective tax rates on these earnings were 31.3% and 14.6% in the first quarters of 2014 and 2013, respectively. Both such tax rates are abnormally low due to a change in method of accounting for state investment credits in 2014 and several retroactive Federal tax credits along with a change in estimated taxes in 2013. However, the differential in these tax rates greatly distorts the comparison of net income for the first quarters of 2014 and 2013. The current estimated 2014 effective tax rate is 34.0%.
Norman H. Asbjornson, President and CEO, stated, "The first quarter of 2014 gains in sales and income from operations primarily reflect increases in market share, volume and prices, in addition to a decline in cost of materials, with gross profit as a percent of sales increasing from 22.9% to 28.6%. SG&A expenses as a percent of sales decreased from 10.4% to 10.0%."
Mr. Asbjornson continued, "The Company's balance sheet at March 31, 2014, was very strong, showing a current ratio of 3.3:1 (including cash and short-term investments totaling $51.6 million) and we remained debt free. However, our backlog decreased from a record high of $71.7 million at March 31, 2013 (which included an influx of orders in advance of a scheduled price increase), to $51.7 million at March 31, 2014 (which was not affected by any additional price increase)."
Mr. Asbjornson then said, "Based on the first quarter results and other relevant factors, we expect 2014 to produce higher sales and earnings than 2013."
Mr. Asbjornson next reported that, "Taking into account the Company's sustained period of profitability and mounting liquidity position, the Board of Directors of AAON has approved a 30% increase in its semi-annual cash dividend from $0.10 per share to $0.13 per share, starting with the next dividend payable on July 1, 2014, to stockholders of record on June 12, 2014."
The Company will host a conference call today at 4:15 P.M. Eastern Time to discuss the first quarter results. To participate, call 1-866-544-4631; or, for rebroadcast, call 1-866-245-6755 (code 845795).
AAON, Inc. is a manufacturer of air conditioning and heating equipment consisting of rooftop units, chillers, outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing 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, as amended. 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, 2014 2013 ------------ ------------ (in thousands, except share and per share data) Net sales $ 76,367 $ 66,833 Cost of sales 54,521 51,521 ------------ ------------ Gross profit 21,846 15,312 Selling, general and administrative expenses 7,629 6,967 (Gain) loss on disposal of assets (24) 7 ------------ ------------ Income from operations 14,241 8,338 Interest income 69 34 Other expense, net (21) (16) ------------ ------------ Income before taxes 14,289 8,356 Income tax provision 4,467 1,216 ------------ ------------ Net income $ 9,822 $ 7,140 ============ ============ Earnings per share: Basic* $ 0.27 $ 0.19 ============ ============ Diluted* $ 0.26 $ 0.19 ============ ============ Cash dividends declared per common share*: $ -- $ -- ============ ============ Weighted average shares outstanding: Basic* 36,694,554 36,760,632 ============ ============ Diluted* 37,075,460 36,962,144 ============ ============ *Reflects three-for-two stock split effective July 2, 2013 AAON, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) March 31, December 31, 2014 2013 ------------- ------------- (in thousands, except share Assets and per share data) Current assets: Cash and cash equivalents $ 19,670 $ 12,085 Certificates of deposit 9,105 8,110 Investments held to maturity at amortized cost 22,808 16,040 Accounts receivable, net 45,704 39,063 Income tax receivable -- 1,073 Note receivable 29 29 Inventories, net 34,891 32,140 Prepaid expenses and other 701 304 Deferred tax assets 5,488 4,779 ------------- ------------- Total current assets 138,396 113,623 Property, plant and equipment: Land 2,233 1,417 Buildings 62,744 61,821 Machinery and equipment 120,942 119,439 Furniture and fixtures 9,934 9,748 ------------- ------------- Total property, plant and equipment 195,853 192,425 Less: Accumulated depreciation 107,678 105,142 ------------- ------------- Property, plant and equipment, net 88,175 87,283 Certificates of deposit 240 2,638 Investments held to maturity at amortized cost 1,027 10,981 Note receivable 881 919 ------------- ------------- Total assets $ 228,719 $ 215,444 ============= ============= Liabilities and Stockholders' Equity Current liabilities: Revolving credit facility $ -- $ -- Accounts payable 11,307 7,779 Accrued liabilities 30,643 28,550 ------------- ------------- Total current liabilities 41,950 36,329 Deferred revenue 735 585 Deferred tax liabilities 13,979 14,424 Commitments and contingencies Stockholders' equity: Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued -- -- Common stock, $.004 par value, 50,000,000 shares authorized, 36,652,276 and 36,711,354 issued and outstanding at March 31, 2014 and December 31, 2013, respectively 147 147 Additional paid-in capital -- -- Retained earnings 171,908 163,959 ------------- ------------- Total stockholders' equity 172,055 164,106 ------------- ------------- Total liabilities and stockholders' equity $ 228,719 $ 215,444 ============= ============= AAON, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, 2014 2013 ------------ ------------ Operating Activities (in thousands) Net income $ 9,822 $ 7,140 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 2,808 3,191 Amortization of bond premiums 216 127 Provision for losses on accounts receivable, net of adjustments (130) 269 Provision for excess and obsolete inventories, net 4 169 Share-based compensation 412 392 Excess tax benefits from stock options exercised and restricted stock awards vested (356) (109) (Gain) loss on disposition of assets (24) 7 Foreign currency transaction gain 31 19 Interest income on note receivable (10) (10) Deferred income taxes (1,154) (1,205) Changes in assets and liabilities: Accounts receivable (6,511) 5,046 Income tax receivable 1,429 (172) Inventories (2,755) (1,541) Prepaid expenses and other (397) (99) Accounts payable 3,441 (1,838) Deferred revenue 204 -- Accrued liabilities 2,039 (2,895) ------------ ------------ Net cash provided by operating activities 9,069 8,491 ------------ ------------ Investing Activities Capital expenditures (3,616) (997) Proceeds from sale of property, plant and equipment 27 -- Investment in certificates of deposits -- (238) Maturities of certificates of deposits 1,403 720 Purchases of investments held to maturity -- (1,396) Maturities of investments 2,717 610 Proceeds from called investment 253 -- Principal payments from note receivable 17 20 ------------ ------------ Net cash provided by (used in) investing activities 801 (1,281) ------------ ------------ Financing Activities Borrowings under revolving credit facility -- 1,955 Payments under revolving credit facility -- (1,955) Stock options exercised 340 354 Excess tax benefits from stock options exercised and restricted stock awards vested 356 109 Repurchase of stock (2,981) (1,115) ------------ ------------ Net cash used in financing activities (2,285) (652) ------------ ------------ Net increase in cash and cash equivalents 7,585 6,558 ------------ ------------ Cash and cash equivalents, beginning of period 12,085 3,159 ------------ ------------ Cash and cash equivalents, end of period $ 19,670 $ 9,717 ============ ============
For Further Information:
Jerry R. Levine
Phone: (914) 244-0292
Fax: (914) 244-0295
Email: [email protected]
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
May. 23, 2015 09:00 PM EDT Reads: 5,190
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
May. 23, 2015 09:00 PM EDT Reads: 4,824
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
May. 23, 2015 08:00 PM EDT Reads: 2,125
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
May. 23, 2015 07:00 PM EDT Reads: 1,735
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
May. 23, 2015 07:00 PM EDT Reads: 4,256
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
May. 23, 2015 05:00 PM EDT Reads: 2,455
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
May. 23, 2015 04:00 PM EDT Reads: 4,776
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
May. 23, 2015 02:00 PM EDT Reads: 4,342
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
May. 23, 2015 02:00 PM EDT Reads: 6,415
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 23, 2015 01:00 PM EDT Reads: 1,551
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
May. 23, 2015 01:00 PM EDT Reads: 6,975
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
May. 23, 2015 12:00 PM EDT Reads: 2,108
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
May. 23, 2015 12:00 PM EDT Reads: 1,925
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, will discuss IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sector...
May. 23, 2015 12:00 PM EDT Reads: 2,156
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
May. 23, 2015 11:30 AM EDT Reads: 2,712
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
May. 23, 2015 11:15 AM EDT Reads: 2,135
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
May. 23, 2015 11:00 AM EDT Reads: 5,641
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
May. 23, 2015 11:00 AM EDT Reads: 4,001
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
May. 23, 2015 10:00 AM EDT Reads: 1,955
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
May. 23, 2015 10:00 AM EDT Reads: 3,119