Welcome!

Cognitive Computing Authors: Yeshim Deniz, Ray Parker, William Schmarzo, Elizabeth White, Pat Romanski

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.

@ThingsExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo 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 ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, 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.