AAON, Inc., and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
---------- ----------- ---------- ----------
(in thousands, except per share data)
Net sales $ 74,781 $ 70,835 $ 140,237 $ 129,463
Cost of sales 56,791 55,237 106,595 98,143
---------- ----------- ---------- ----------
Gross profit 17,990 15,598 33,642 31,320
Selling, general and
administrative expenses 6,129 5,270 12,031 11,017
---------- ----------- ---------- ----------
Income from
operations 11,861 10,328 21,611 20,303
Interest expense and other (16) 3 (19) (7)
Interest income 6 3 27 6
Other income 117 82 247 270
---------- ----------- ---------- ----------
Income before income taxes 11,968 10,416 21,866 20,572
Income tax provision 4,208 3,539 7,672 7,378
---------- ----------- ---------- ----------
Net income $ 7,760 $ 6,877 $ 14,194 $ 13,194
========== =========== ========== ==========
Earnings Per Share:
Basic $ 0.43 $ 0.37* $ 0.79 $ 0.71*
========== =========== ========== ==========
Diluted $ 0.43 $ 0.36* $ 0.78 $ 0.69*
========== =========== ========== ==========
Weighted Average Shares
Outstanding:
Basic 17,740 18,691* 17,894 18,627*
========== =========== ========== ==========
Diluted 18,145 19,336* 18,302 19,492*
========== =========== ========== ==========
* Reflects three-for-two stock split effective August 21, 2007.
AAON, Inc., and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
2008 2007
------------- -------------
(in thousands, except share
and per share data)
Assets
Current assets:
Cash and cash equivalents $ 505 $ 879
Accounts receivable, net 49,555 38,813
Inventories, net 31,389 31,849
Prepaid expenses and other 725 442
Deferred tax assets 4,459 4,312
------------- -------------
Total current assets 86,633 76,295
Property, plant and equipment
Land 2,323 2,354
Buildings 32,403 32,211
Machinery and equipment 83,903 82,872
Furniture and fixtures 7,000 6,912
------------- -------------
Total property, plant and equipment 125,629 124,349
Less: Accumulated depreciation 68,379 63,579
------------- -------------
Property, plant and equipment, net 57,250 60,770
Note receivable, long-term 75 75
------------- -------------
Total assets $ 143,958 $ 137,140
============= =============
Liabilities & Stockholders’ Equity
Current liabilities:
Revolving credit facility $ 4,087 $ -
Current maturities of long-term debt 91 91
Accounts payable 18,023 15,059
Dividends payable 2,848 2,943
Accrued liabilities 24,837 19,414
------------- -------------
Total current liabilities 49,886 37,507
Other long-term liabilities 194 239
Deferred tax liabilities 3,576 3,974
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value, 7,500,000
shares authorized, no shares issued
Common stock, $.004 par value, 75,000,000
shares authorized, 17,281,448 and
18,054,246 issued and outstanding at June
30, 2008 and December 31, 2007,
respectively 71 73
Additional paid-in capital - -
Accumulated other comprehensive income 1,706 1,942
Retained earnings 88,525 93,405
------------- -------------
Total stockholders’ equity 90,302 95,420
------------- -------------
Total liabilities and stockholders’ equity $ 143,958 $ 137,140
============= =============
AAON, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Six Months
Ended Ended
June 30, 2008 June 30, 2007
------------- -------------
(in thousands)
Operating Activities
Net income $ 14,194 $ 13,194
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 4,838 4,660
Provision for losses on accounts
receivable 13 234
Share-based compensation 413 311
Excess tax benefits from stock options
exercised (229) (1,814)
Gain on disposition of assets (1) (11)
Deferred income taxes (615) (676)
Changes in assets and liabilities:
Accounts receivable (10,832) (9,439)
Inventories, net 414 (4,821)
Prepaid expenses and other (283) (247)
Accounts payable 3,393 1,324
Accrued liabilities 5,279 7,105
------------- -------------
Net cash provided by operating activities 16,584 9,820
------------- -------------
Investing Activities
Proceeds from sale of property, plant and
equipment 1 21
Capital expenditures (1,390) (7,209)
------------- -------------
Net cash used in investing activities (1,389) (7,188)
------------- -------------
Financing Activities
Borrowings under revolving credit facility 12,853 8,898
Payments under revolving credit facility (8,766) (8,898)
Payments of long-term debt (45) (54)
Stock options exercised 394 1,000
Excess tax benefits from stock options
exercised 229 1,814
Repurchase of stock (17,264) (2,932)
Cash dividends paid to stockholders (2,943) (2,465)
------------- -------------
Net cash used in financing activities (15,542) (2,637)
------------- -------------
Effect of exchange rate on cash (27) 43
------------- -------------
Net increase (decrease) in cash and cash
equivalents (374) 38
------------- -------------
Cash and cash equivalents, beginning of year 879 288
------------- -------------
Cash and cash equivalents, end of period $ 505 $ 326
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Contact Information: For Further Information: Jerry Levine Ph: (914) 244-0292 Fax: (914) 244-0295 Email: