AAON Reports 2003 Operating Results
TULSA, Okla., Feb. 11 /PRNewswire-FirstCall/ -- AAON, Inc. today announced its
operating results for the year 2003. Sales declined 4% to $148.9 million from
$155.1 million in 2002, and net income decreased 3% to$14.2 million compared to
$14.6 million in the previous year.
Sales in the fourth quarter of 2003 increased to $37.8 million from $37.2
million in 2002, and net income for the quarter was $3.7 million compared to
$3.1 million in 2002. The income tax provision in the fourth quarter of 2003
was $700,000 less than a year ago.
Earnings per share for 2003 were $1.07 compared to $1.06 in 2002. Earnings for
the fourth quarter of 2003 were $0.30 per share compared to $0.23 per share in
the previous year. Both year 2003 and fourth quarter earnings per share
benefited from the Company's on-going stock repurchase program. All per share
earnings are on a diluted basis.
Norman H. Asbjornson, AAON's President/CEO, stated that, "The decreases in sales
and earnings for the past year resulted primarily from a decline in the size of
the market served, over 2% in 2003 (following declines of 7% and 15% in 2002 and
2001, respectively), the adverse effect of a change in customer mix and reduced
efficiencies resulting from the manufacture of new products.
Mr. Asbjornson continued by saying, "While our backlog of orders remains high
and it appears that there is an improved outlook for the HVAC industry, we
cannot accurately predict the Company's near-term future performance due to the
uncertainties of the economy and the potential impact of the Company's new
products already introduced and forthcoming." AAON, Inc. is a manufacturer of air-conditioning and heating equipment
consisting of rooftop units, chillers, air-handling units, condensing units and
coils. Its products serve the new construction and replacement markets. The
Company has successfully gained market share through its "semi-custom" product
lines, which offer the customer value, quality, function, serviceability and
efficiency.
Certain statements in this news release may be "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933. Statements
regarding future prospects and developments are based upon current expectations
and involve certain risks and uncertainties that could cause actual results and
developments to differ materially from the forward-looking statements.
AAON, Inc. Consolidated Statementsof Operations Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
(In thousands, except share and per share data) Net sales $37,764 $37,202 $148,845 $155,075 Cost of Sales 28,532 29,075 112,596 117,193 Gross profit 9,232 8,127 36,249 37,882
Selling, general
and administrative
expenses 4,340 3,064 14,909 15,071 Income from
operations 4,892 5,063 21,340 22,811 Interest expense /
interest income (87) (67) (325) (119) Other income (21) 57 (188) (180) Income before income
taxes 5,000 5,073 21,853 23,110 Income tax provision 1,260 1,961 7,626 8,499 Net Income $3,740 $3,112 $14,227 $14,611 Earnings Per Share:
Basic $0.31 $0.24 $1.12 $1.11
Diluted $0.30 $0.23 $1.07 $1.06 Weighted Average
Shares Outstanding:
Basic 12,126,652 13,135,995 12,684,971 13,158,407
Diluted 12,657,208 13,718,249 13,251,427 13,739,790
AAON, Inc. Consolidated Balance Sheets December 31, 2003 December 31, 2002
(In thousands, except share
and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $6,186 $5,071
Certificate of deposit 10,000 ---
Accounts receivable, net 22,553 22,306
Inventories, net 19,711 14,338
Prepaid expenses 2,653 599
Deferred income tax 3,532 4,168 Totalcurrent assets 64,635 46,482 PROPERTY, PLANT AND EQUIPMENT, at cost:
Land 874 874
Buildings 19,588 18,394
Machinery and equipment 44,328 39,580
Furniture and fixtures 3,945 3,497
Total property, plant & equipment 68,735 62,345
Less: accumulated depreciation 31,285 27,114
Net property, plant & equipment 37,450 35,231 Long-term investments --- 10,000 Total Assets $102,085 $91,713 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $5,356 $3,566
Accounts payable 11,553 8,418
Accrued liabilities 12,357 13,349 Total current liabilities 29,266 25,333 DEFERRED TAX LIABILITY 5,391 4,070 STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par,
5,000,000 shares authorized,
no shares issued --- ---
Common Stock, $.004 par,
50,000,000 shares authorized,
12,519,733 and 13,030,916 issued
and outstanding at December 31, 2003,
and December 31, 2002, respectively 50 52 Additional paid-in capital --- ---
Retained earnings 67,378 62,258 Total stockholders' equity 67,428 62,310 Total Liabilities and Stockholders'
Equity $102,085 $91,713
AAON, Inc. Consolidated Statements of Cash Flows Twelve Months Twelve Months
Ended Ended
December 31, 2003 December 31, 2002
(in thousands) Operating Activities
Net income $14,227 $14,611
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 5,435 4,915
Provision for losses on accounts
receivable 278 346
Provision for excess and obsolete
inventories, net 50 150
Gain on disposition of assets (28) (6)
Deferred income taxes 1,957 1,085
Changes in assets and liabilities:
Accounts receivable (525) 740
Inventories (5,423) (1,017)
Prepaid expenses (2,054) (379)
Accounts payable 3,135 859
Accrued liabilities (583) 627
Net cash provided by operating
activities 16,469 21,931 Investing Activities
Proceeds from sale of property, plant
and equipment 74 8
Investment in certificate of deposit --- (10,000)
Capital expenditures (7,700) (6,126)
Net cash used in investing activities (7,626) (16,118) Financing Activities
Borrowings under revolving credit
agreement 33,742 33,855
Payments under revolving credit
agreement (31,952) (30,735)
Payments on long-term debt --- (1,869)
Stock options exercised 402 866
Repurchase of stock (9,920) (3,982)
Net cash used in financing activities (7,728) (1,865) Net increase in cash 1,115 3,948
Cash and cash equivalents, beginning
of year 5,071 1,123
Cash and cash equivalents, end of year $6,186 $5,071
DATASOURCE: AAON, Inc.
CONTACT: Jerry R. Levine of AAON, Inc., +1-914-244-0292, or fax, +1-914-244-0295 Web site: http://www.aaon.com/
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