AAON Reports Second Quarter Record Sales and Lower Earnings.TULSA Tulsa (tŭl`sə), city (1990 pop. 367,302), seat of Tulsa co., NE Okla., on the Arkansas River east of its junction with the Cimarron; inc. 1898. , Okla. -- AAON AAON American Association of Office Nurses , Inc. (Nasdaq:AAON) today announced operating results for the second quarter and six-month period ended June June: see month. 30, 2004. In the quarter, revenues reached a record level, $43,019,000, up 15.6% from $37,222,000 during the corresponding period in 2003, and net income decreased 53.2% to $1,571,000 or $0.12 per share compared to $3,357,000 or $0.25 per share for the same period a year ago. Norman Norman, city (1990 pop. 80,071), seat of Cleveland co., central Okla.; inc. 1891. It is the center of a livestock region. Oil wells, food processing, and printing and publishing contribute to the economy, and there is diverse manufacturing (machinery, communication H. Asbjornson, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , pointed out that "The higher sales were attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a record backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and a small (1%) contribution of revenues from AAON Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Inc., acquired on May 5, 2004, despite closings of the Company's Tulsa plant for four days during the period due to computer and electrical outages. The lower earnings resulted from the continued impact of higher steel and copper prices and startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. costs associated with a new coil project, equipment failures at the Company's Longview, Texas Longview is a city in Texas, United States, located between Dallas, TX and Shreveport, LA. The population was 73,345 at the 2000 census, but a 2005 estimate placed the city's population at 75,609. plant, which prevented coil production needed by the Tulsa facility, and the above-referenced plant closings, all of which combined to reduce margins from 23.7% in the second quarter of 2003 to 14.8% in 2004; and AAON Canada, Inc., incurred a loss of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100,000." Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first six months of 2004 were up 14.9%, $80,513,000, compared to $70,078,000 in 2003, whereas earnings were down 43.0% from $6,852,000 or $0.51 per share, compared to $3,908,000 or $0.30 per share. All per share earnings are on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. Mr. Asbjornson said that, "The outlook is for higher sales and improved earnings during the last half of 2004, compared to the first half year results." Certain statements in this news release may be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004(a) 2003(a) 2004(a) 2003(a)
-----------------------------------------------
(In thousands, except share and per share data)
Net sales $43,019 $37,222 $80,513 $70,078
Cost of Sales 36,664 28,414 66,457 52,573
----------- ----------- ----------- -----------
Gross profit 6,355 8,808 14,056 17,505
Selling, general and
administrative
expenses 3,791 3,512 7,758 6,708
----------- ----------- ----------- -----------
Income from
operations 2,564 5,296 6,298 10,797
Interest expense 10 9 27 15
Interest income (83) (117) (164) (175)
Other expense (income) 27 (38) 25 (122)
----------- ----------- ----------- -----------
Income before income
taxes 2,610 5,442 6,410 11,079
Income tax provision 1,039 2,085 2,502 4,227
----------- ----------- ----------- -----------
Net Income $1,571 $3,357 $3,908 $6,852
=========== =========== =========== ===========
Earnings Per Share:
Basic $0.13 $0.26 $.31 $0.53
=========== =========== =========== ===========
Diluted $0.12 $0.25 $.30 $0.51
=========== =========== =========== ===========
Weighted Average Shares
Outstanding:
Basic 12,457,309 12,738,484 12,469,747 12,808,535
=========== =========== =========== ===========
Diluted 12,967,457 13,239,864 12,982,239 13,326,803
=========== =========== =========== ===========
(a) Unaudited
AAON, Inc.
Consolidated Balance Sheets
June 30, 2004(a) December 31, 2003
--------------------------------------
(in thousands, except share and per
share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $17 $6,186
Certificate of deposit 3,500 10,000
Accounts receivable, net 24,623 22,553
Inventories, net 21,917 19,711
Prepaid expenses 762 2,653
Deferred income tax 3,532 3,532
--------------- ------------------
Total current assets 54,351 64,635
--------------- ------------------
PROPERTY, PLANT AND EQUIPMENT,
at cost:
Land 1,254 874
Buildings 22,022 19,588
Machinery and equipment 49,872 44,329
Furniture and fixtures 4,046 3,944
--------------- ------------------
Total property, plant and
equipment 77,194 68,735
Less: accumulated
depreciation 34,373 31,285
--------------- ------------------
Net property, plant and
equipment 42,821 37,450
Goodwill 115 -
--------------- ------------------
Total assets $97,287 $102,085
=============== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $- $5,356
Accounts payable 9,798 11,553
Accrued liabilities 13,113 12,357
--------------- ------------------
Total current liabilities 22,911 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 12,441,432
and 12,519,733 issued and
outstanding at June 30,
2004, and December 31,
2003, respectively 50 50
Additional paid-in capital - -
Accumulated other
comprehensive loss (6) -
Retained earnings 68,941 67,378
--------------- ------------------
Total stockholders' equity 68,985 67,428
--------------- ------------------
Total Liabilities and
Stockholders' Equity $97,287 $102,085
=============== ==================
(a) Unaudited
AAON, Inc.
Consolidated Statements of Cash Flows
Six Months Six Months
Ended(a) Ended(a)
June 30, 2004 June 30, 2003
------------------------------
(in thousands)
Operating Activities
Net income $3,908 $6,852
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 3,088 2,540
Provision for losses on accounts
receivable 282 860
Loss on disposition of assets 4 -
Changes in assets and
liabilities, net of effects of
acquisition:
Accounts receivable (1,265) (5,857)
Inventories (1,862) 429
Prepaid expenses 1,891 272
Accounts payable (1,755) 398
Accrued liabilities 711 1,725
---------------------------
Net cash provided by operating
activities 5,002 7,219
Investing Activities
Cash paid for acquisition (1,778) -
Proceeds from sale of property, plant
and equipment 13 -
Proceeds from matured certificate of
deposit 6,500 -
Capital expenditures (8,199) (3,606)
---------------------------
Net cash used in investing activities (3,464) (3,606)
Financing Activities
Borrowings under revolving credit
facility 29,265 20,388
Payments under revolving credit
facility (34,621) (21,829)
Payments on long-term debt - -
Stock options exercised 632 209
Repurchase of stock (2,977) (6,775)
---------------------------
Net cash used in financing activities (7,707) (8,007)
---------------------------
Effect of exchange rate on cash (6) -
---------------------------
Net decrease in cash and cash
equivalents (6,169) (4,394)
---------------------------
Cash and cash equivalents, beginning of
year 6,186 5,071
---------------------------
Cash and cash equivalents, end of year $17 $677
===========================
(a) Unaudited
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