AAON Reports Higher Sales and Lower Earnings
TULSA, Okla., April 19 /PRNewswire-FirstCall/ -- AAON, Inc. today announced
its operating results for the three months ended March 31, 2004, of $37.5
million in sales and $2.3 million of net income, $0.18 per share, compared to
$32.9 million in sales and $3.5 million of net income, $0.26 per share a year
ago. Per share earnings are on a diluted basis.
Norman H. Asbjornson, President and CEO, stated that "The decrease in earnings
was attributable primarily to an 11.5% decline in gross profit from $8.7
million (or 26.5% of net sales) in 2003 compared to $7.7 million (or 20.5% of
net sales) in 2004 and a $771,000 (24.1%) increase in SG&A (from $3.2 million
in 2003 to $4.0 million in 2004)." He noted that "The drop in gross profit was
principally due to the continuation of startup costs associated with a new coil
project and sharp increases in steel and copper prices. These higher material
costs are expected to further impact profitability for the remainder of the
year. However, price increases which go into effect in April, together with
anticipated reduction of start-up costs of the new coil project, should more
than offset these increased raw material costs by the third quarter." He said
that, "The increase in SG&A was mainly the result of additional warranty
expense on repairs of older units, which will continue at a reduced amount in
the second quarter of 2004, and an increase in bad debt expense." Mr. Asbjornson pointed out that, "Net sales for the first quarter of 2004
increased by $4.6 million or 14.1% compared to the first quarter of 2003." He
said that, "In spite of such sales increase, backlog has continued to rise to
its current record level." He added that, "Based on our current backlog level
and improving outlook for the U.S. economy, we believe sales should remain
higher in 2004, compared to 2003." This press release contains "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 Statements of Operations Three Months Three Months
Ended* Ended*
March 31, 2004 March 31, 2003
(in thousands, except share
and per share data) Net sales $37,494 $32,856 Cost of Sales 29,793 24,159 Gross profit 7,701 8,697 Selling, general and administrative expenses 3,967 3,196 Income from operations 3,734 5,501 Interest expense 17 6 Interest income (81) (58) Other income (2) (84) Income before income taxes 3,800 5,637 Income tax provision 1,463 2,142 Net Income $2,337 $3,495 Earnings Per Share:
Basic $0.19 $0.27
Diluted $0.18 $0.26 Weighted Average Shares Outstanding:
Basic 12,482,186 12,880,299
Diluted 12,997,022 13,415,455 *Unaudited
AAON, Inc. Consolidated Balance Sheets March 31, December 31,
2004* 2003
(In thousands, except share
and per share data) ASSETS
CURRENT ASSETS
Cash and cash equivalents $201 $6,186
Certificate of deposit 10,000 10,000
Accounts receivable, net 22,123 22,553
Inventories, net 22,223 19,711
Prepaid expenses 2,948 2,653
Deferred income tax 3,532 3,532
Total current assets 61,027 64,635 PROPERTY, PLANT AND EQUIPMENT
Land 874 874
Buildings 19,837 19,588
Machinery and equipment 44,704 44,329
Furniture and fixtures 3,976 3,944
Total property, plant & equipment 69,391 68,735
Less: accumulated depreciation 32,834 31,285
Net property, plant & equipment 36,557 37,450
Total Assets $97,584 $102,085 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $882 $5,356
Accounts payable 10,987 11,553
Accrued liabilities 12,244 12,357
Total current liabilities 24,113 29,266 DEFERRED TAX LIABILITY 5,391 5,391 STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par, 5,000,000 shares
authorized, no shares issued --- ---
Common Stock, $.004 par, 50,000,000 shares
authorized, and 12,469,158 and 12,519,733
issued and outstanding at March 31, 2004,
and December 31, 2003, respectively 50 50 Additional paid-in capital --- ---
Retained earnings 68,030 67,378
Total stockholders' equity 68,080 67,428
Total Liabilities and Stockholders' Equity $97,584 $102,085 *Unaudited
AAON, Inc. Consolidated Statements of Cash Flows Three Months Three Months
Ended Ended
March 31, March 31,
2004* 2003*
(in thousands) Operating Activities
Net income $2,337 $3,495
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 1,552 1,238
Provision for losses on accounts receivable 470 82
Loss on disposition of assets 4 ---
Changes in assets and liabilities:
Accounts receivable (40) 2,171
Inventories (2,512) (1,247)
Prepaid expenses (295) 20
Accounts payable (566) (126)
Accrued liabilities 241 3,053
Net cash provided by operating activities 1,191 8,686 Investing Activities
Proceeds from sale of property, plant and
equipment 1 ---
Capital expenditures (664) (1,342)
Net cash used in investing activities (663) (1,342) Financing Activities
Borrowings under revolving credit agreement 12,968 6,324
Payments under revolving credit agreement (17,442) (9,890)
Stock options exercised 224 28
Repurchase of stock (2,263) (4,008)
Net cash used in financing activities (6,513) (7,546) Net decrease in cash (5,985) (202)
Cash and cash equivalents, beginning of period 6,186 5,071
Cash and cash equivalents, end of period $201 $4,869 *Unaudited
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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