2012-11-08 13:13:16 -
TULSA, OK -- (Marketwire) -- 11/08/12 -- AAON, Inc. (NASDAQ: AAON) today announced its operating results for the third quarter and nine-month period ended September 30, 2012, and declares dividends.
In the quarter, net sales increased 4% to $76.8 million from $73.8 million in 2011, and net income increased 7% to $6.0 million from $5.6 million last year. Earnings per diluted share were $0.24, up 4% from $0.23 for the same period a year ago, based upon 24.7 million and 24.8 million diluted shares outstanding for the three months ended September 30, 2012, compared to September 30, 2011, respectively. Of note, the Company's combined income tax rate in the third quarter of 2012 totaled 43% compared to a rate of 35% in 2011. Income taxes for the full year 2012 are expected to be approximately 37%.
Net sales for the first nine months of 2012 increased 11% to a record $225.1 million from $202.8 million in 2011, and net income increased 52% to $19.9 million from $13.1 million. Earnings per diluted share were $0.80, up 51% from $0.53, based upon 24.7 million and 24.9 million diluted shares outstanding for the nine months ended September 30, 2012 compared to September 30, 2011, respectively.
The Company realized a 241% increase in cash flow from operations during the first nine months of 2012, which enabled it to pay off its revolving credit loan of $4.6 million and to accumulate cash and investments totaling $15.5 million.
Norman H. Asbjornson, President and CEO, stated, "The increases in revenues primarily reflect gains in market share, while the increases in earnings for the third quarter and first nine months of 2012 were attributable to improved productivity, which resulted in increased gross margins from 19.3% to 22.3% in the third quarters of 2011 and 2012, respectively, and from 18.6% to 23.0% for the nine-month periods ended September 30, 2011 and 2012. Our backlog at September 30, 2012 was $55.3 million compared to $54.1 million at the same time a year ago."
At a meeting of the Board of Directors on November 7, 2012, the Board declared a regular semi-annual cash dividend of $0.12 per share. Mr. Asbjornson said, "In view of our strong financial position, the Board also declared a one-time special cash dividend of $0.12 per share." Both dividends will be paid to the holders of the outstanding Common Stock of the Company as of the close of business on December 3, 2012, the record date, payable December 24, 2012.
Mr. Asbjornson said that, "We are very pleased with the results of the first nine months of 2012, particularly in light of the difficult existing market conditions, and anticipate an above average fourth quarter."
The Company will host a conference call today at 4:15 P.M. ET to discuss the third quarter results.
To participate, call 1-877-737-1669 (Code: VA32741).
AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units, heat recovery 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. 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) (In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2012 2011 2012 2011
--------- --------- --------- ---------
Net sales $ 76,816 $ 73,829 $ 225,106 $ 202,818
Cost of sales 59,667 59,570 173,336 165,184
--------- --------- --------- ---------
Gross profit 17,149 14,259 51,770 37,634
Selling, general and
administrative expenses 6,747 5,451 19,627 16,699
Gain on disposal of assets 4 6 17 14
--------- --------- --------- ---------
Income from operations 10,406 8,814 32,160 20,949
Interest expense (16) (59) (43) (173)
Interest income 40 22 55 87
Other income (expense), net 53 (122) 50 (690)
--------- --------- --------- ---------
Income before income taxes 10,483 8,655 32,222 20,173
Income tax provision 4,476 3,029 12,351 7,058
--------- --------- --------- ---------
Net income $ 6,007 $ 5,626 $ 19,871 $ 13,115
========= ========= ========= =========
Earnings per share
Basic $ 0.24 $ 0.23 $ 0.81 $ 0.53
========= ========= ========= =========
Diluted $ 0.24 $ 0.23 $ 0.80 $ 0.53
========= ========= ========= =========
Cash dividends declared per
common share: $ 0.00 $ 0.00 $ 0.12 $ 0.12
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 24,535 24,667 24,558 24,708
========= ========= ========= =========
Diluted 24,667 24,844 24,722 24,902
========= ========= ========= =========
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited) (In thousands, except share and per share data)
September 30, December 31,
2012 2011
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 7,017 $ 13
Certificates of deposit 1,200 -
Investments held to maturity at amortized cost 2,077 -
Accounts receivable, net 42,371 34,137
Income tax receivable 2,313 10,016
Note receivable 28 27
Inventories, net 37,650 34,948
Prepaid expenses and other 575 723
Deferred tax assets 4,063 4,523
------------- -------------
Total current assets 97,294 84,387
Property, plant and equipment:
Land 1,340 1,340
Buildings 59,615 56,057
Machinery and equipment 117,648 114,256
Furniture and fixtures 8,415 7,784
------------- -------------
Total property, plant and equipment 187,018 179,437
Less: Accumulated depreciation 94,384 85,935
------------- -------------
Property, plant and equipment, net 92,634 93,502
Certificates of deposit 2,020 -
Investments held to maturity at amortized cost 3,195 -
Note receivable, long-term 1,111 1,092
------------- -------------
Total assets $ 196,254 $ 178,981
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Revolving credit facility - 4,575
Accounts payable 13,720 14,118
Accrued liabilities 29,200 19,994
------------- -------------
Total current liabilities 42,920 38,687
Deferred tax liabilities 16,343 17,790
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value, 11,250,000
shares authorized, no shares issued - -
Common stock, $.004 par value, 112,500,000
shares authorized, 24,537,657 and 24,618,324
issued and outstanding at September 30, 2012
and December 31, 2011, respectively 98 98
Additional paid-in capital 249 -
Retained earnings 136,644 122,406
------------- -------------
Total stockholders' equity 136,991 122,504
------------- -------------
Total liabilities and stockholders' equity $ 196,254 $ 178,981
============= =============
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) (In thousands)
Nine Months Ended
September 30,
--------------------
2012 2011
--------- ---------
Operating Activities
Net income $ 19,871 $ 13,115
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 10,079 8,174
Amortization of bond premiums 80 155
Provision for losses on accounts receivable, net
of adjustments (7) (242)
Share-based compensation 625 509
Excess tax benefits from stock options exercised
and restricted stock awards vested (267) (176)
Gain on disposition of assets (17) (14)
Foreign currency transaction gain (40) -
Deferred income taxes (987) (48)
Changes in assets and liabilities:
Accounts receivable (8,227) 61
Income tax receivable 5,801 -
Inventories (2,702) (8,654)
Prepaid expenses and other 148 (194)
Accounts payable 2,681 (2,281)
Accrued liabilities 11,375 870
--------- ---------
Net cash provided by operating activities 38,413 11,275
--------- ---------
Investing Activities
Proceeds from sale of property, plant and
equipment 311 55
Investment in certificates of deposits (4,280) -
Maturities of certificates of deposits 1,060 1,503
Purchases of investments held to maturity (5,624) -
Maturities of investments - 8,793
Proceeds from called investment 270 -
Capital expenditures (12,582) (30,638)
Principal payments from note receivable 20 21
--------- ---------
Net cash used in investing activities (20,825) (20,266)
--------- ---------
Financing Activities
Borrowings under revolving credit facility 34,847 66,557
Payments under revolving credit facility (39,422) (52,592)
Stock options exercised 1,053 373
Excess tax benefits from stock options exercised
and restricted stock awards vested 267 176
Repurchases of stock (4,379) (2,662)
Cash dividends paid to stockholders (2,950) (2,976)
--------- ---------
Net cash (used) provided by financing activities (10,584) 8,876
--------- ---------
Net increase (decrease) in cash and cash equivalents 7,004 (115)
--------- ---------
Cash and cash equivalents, beginning of year 13 2,393
--------- ---------
Cash and cash equivalents, end of period $ 7,017 $ 2,278
========= =========
For Further Information:
Jerry R. Levine
Phone: (914) 244-0292
Fax: (914) 244-0295
Email:
jrladvisor@yahoo.com :
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