Welcome!

Search Authors: Elizabeth White, Jnan Dash, Shelly Palmer, Carmen Gonzalez, Lori MacVittie

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
                                                 ============  ============


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
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...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. 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.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, 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. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard 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. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.