Welcome!

Cognitive Computing Authors: Pat Romanski, Yeshim Deniz, Liz McMillan, Elizabeth White, Zakia Bouachraoui

News Feed Item

AAON Reports Record Sales and Earnings and 30% Increase in Dividends

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]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

IoT & Smart Cities Stories
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.