AAON Reports Third 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). In the quarter, revenues reached a record level, $47,733,000, up 16.4% from $41,003,000 during the corresponding period in 2003, and net income decreased 58.0% to $1,527,000 or $0.12 per share compared to $3,635,000 or $0.27 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. , stated that, "Due to further increases in material costs during the third quarter, recent product price increases did not yield the anticipated margin improvement and additional product price increases will be necessary. It is unclear what impact further product price increases will have on sales volume in the future." 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 nine months of 2004 were up 15.5%, $128,246,000, compared to $111,081,000 in 2003, whereas earnings were down 48.2% from $10,487,000 or $0.79 per share, to $5,435,000 or $0.42 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, "Sales in the third quarter, together with the Company's current 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. , will produce record second half of 2004 and yearly sales; however, due to ongoing material cost increases, earnings in the second half of 2004 will only approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. earnings in the first half of the year." 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 Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004(a) 2003(a) 2004(a) 2003(a)
-------------------------------------------------
(in thousands, except share and per share data)
Net sales $ 47,733 $ 41,003 $ 128,246 $ 111,081
Cost of Sales 41,639 31,491 108,096 84,064
----------- ---------- ----------- ----------
Gross profit 6,094 9,512 20,150 27,017
Selling, general
and administrative
expenses 3,405 3,861 11,163 10,569
----------- ---------- ----------- ----------
Income from
operations 2,689 5,651 8,987 16,448
Interest expense 8 6 35 21
Interest income (10) (84) (174) (259)
Other expense
(income) (13) (45) 12 (167)
----------- ---------- ----------- ----------
Income before
income taxes 2,704 5,774 9,114 16,853
Income tax
provision 1,177 2,139 3,679 6,366
----------- ---------- ----------- ----------
Net Income $ 1,527 $ 3,635 $ 5,435 $ 10,487
=========== ========== =========== ==========
Earnings Per
Share:
Basic $ 0.12 $ 0.29 $ 0.44 $ 0.82
=========== ========== =========== ==========
Diluted $ 0.12 $ 0.27 $ 0.42 $ 0.79
=========== ========== =========== ==========
Weighted Average
Shares
Outstanding:
Basic 12,420,941 12,593,711 12,453,360 12,736,140
=========== ========== =========== ==========
Diluted 12,898,497 13,292,444 12,954,207 13,314,563
=========== ========== =========== ==========
(a) Unaudited
AAON, Inc.
Consolidated Balance Sheets
September 30, 2004(a) December 31, 2003
------------------------ --------------------
(in thousands, except share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 13 $ 6,186
Certificate of deposit 2,000 10,000
Accounts receivable, net 31,292 22,553
Inventories, net 21,657 19,711
Prepaid expenses 440 2,653
Deferred income tax 3,781 3,532
----------- ----------
Total current assets 59,183 64,635
----------- ----------
PROPERTY, PLANT AND
EQUIPMENT:
Land 2,045 874
Buildings 24,914 19,588
Machinery and equipment 51,363 44,329
Furniture and fixtures 3,880 3,944
----------- ----------
Total property, plant
& equipment 82,202 68,735
Less: accumulated
depreciation 35,760 31,285
----------- ----------
Net property, plant &
equipment 46,442 37,450
Total assets $ 105,625 $ 102,085
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $ 3,203 $ 5,356
Accounts payable 11,020 11,553
Accrued liabilities 16,872 12,357
----------- ----------
Total current liabilities 31,095 29,266
----------- ----------
DEFERRED TAX LIABILITY 4,685 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
12,405,598 and
12,519,733 issued and
outstanding at
September 30, 2004,
and December 31,
2003, respectively 50 50
Additional paid-in
capital - -
Accumulated other
comprehensive income 24 -
Retained Earnings 69,771 67,378
----------- ----------
Total stockholders' equity 69,845 67,428
----------- ----------
Total liabilities and
stockholders' equity $ 105,625 $ 102,085
=========== ==========
(a) Unaudited
AAON, Inc.
Consolidated Statements of Cash Flows
Nine Months Nine Months
Ended Ended
Sept. 30, Sept. 30,
2004(a) 2003(a)
-------------- ------------
(in thousands)
Operating Activities
Net income $ 5,435 $ 10,487
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 4,474 3,894
Provision for losses on accounts
receivable 535 (224)
Loss on disposition of assets 4 -
Deferred income taxes (955) -
Changes in assets and
liabilities net of effects of
acquisition:
Accounts receivable (8,187) (1,876)
Inventories (1,487) 158
Prepaid expenses 2,213 (491)
Accounts payable (533) 1,166
Accrued liabilities 4,470 2,801
-------------- ------------
Net cash provided by operating
activities 5,969 15,915
Investing Activities
Cash paid for acquisition (1,778) -
Proceeds from sale of property,
plant and equipment 13 -
Proceeds from matured certificate
of deposit 10,000 -
Investment in certificate of deposit (2,000) -
Capital expenditures (13,206) (3,964)
-------------- ------------
Net cash used in investing
activities (6,971) (3,964)
Financing Activities
Borrowings under revolving credit
agreement 42,759 26,862
Payments under revolving credit
agreement (44,912) (30,428)
Stock options exercised 965 292
Repurchase of stock (4,007) (9,132)
-------------- ------------
Net cash used in financing activities (5,195) (12,406)
-------------- ------------
Effect of exchange rate on cash 24 -
-------------- ------------
Net decrease in cash and cash
equivalents (6,173) (455)
-------------- ------------
Cash and cash equivalents, beginning of
year 6,186 5,071
-------------- ------------
Cash and cash equivalents, end of year $ 13 $ 4,616
============== ============
(a) Unaudited
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