Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 29, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | AAON INC | |
Entity Central Index Key | 824,142 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,092,842 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 29,863 | $ 21,952 |
Certificates of deposit | 10,800 | 6,098 |
Investments held to maturity at amortized cost | 8,266 | 11,972 |
Accounts receivable, net | 45,825 | 44,092 |
Income tax receivable | 2,172 | 2,569 |
Notes receivable | 24 | 30 |
Inventories, net | 41,052 | 37,618 |
Prepaid expenses and other | 763 | 609 |
Deferred tax assets | 6,155 | 6,143 |
Total current assets | 144,920 | 131,083 |
Property, plant and equipment: | ||
Land | 2,233 | 2,233 |
Buildings | 67,580 | 64,938 |
Machinery and equipment | 136,952 | 127,968 |
Furniture and fixtures | 10,746 | 10,388 |
Total property, plant and equipment | 217,511 | 205,527 |
Less: Accumulated depreciation | 121,215 | 113,605 |
Property, plant and equipment, net | 96,296 | 91,922 |
Certificates of deposit | 2,120 | 5,280 |
Investments held to maturity at amortized cost | 11,072 | 4,015 |
Note receivable | 690 | 817 |
Total assets | 255,098 | 233,117 |
Current liabilities: | ||
Revolving credit facility | 0 | 0 |
Accounts payable | 7,759 | 11,370 |
Accrued liabilities | 34,482 | 31,343 |
Total current liabilities | 42,241 | 42,713 |
Deferred revenue | 689 | 1,006 |
Deferred tax liabilities | 12,689 | 13,677 |
Donations | $ 1,108 | $ 1,662 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued | $ 0 | $ 0 |
Common stock, $.004 par value, 100,000,000 shares authorized, 54,139,246 and 54,041,829 issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 217 | 216 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 198,154 | 173,843 |
Total stockholders' equity | 198,371 | 174,059 |
Total liabilities and stockholders' equity | $ 255,098 | $ 233,117 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.004 | $ 0.004 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 54,139,246 | 54,041,829 |
Common stock, shares outstanding | 54,139,246 | 54,041,829 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 94,360 | $ 102,917 | $ 261,403 | $ 271,594 |
Cost of sales | 64,175 | 69,567 | 182,303 | 188,522 |
Gross profit | 30,185 | 33,350 | 79,100 | 83,072 |
Selling, general and administrative expenses | 10,062 | 13,830 | 27,579 | 32,043 |
Gain on disposal of assets | (34) | 0 | (59) | (24) |
Income from operations | 20,157 | 19,520 | 51,580 | 51,053 |
Interest income, net | 14 | 55 | 87 | 195 |
Other expense, net | (58) | (43) | (106) | (30) |
Income before taxes | 20,113 | 19,532 | 51,561 | 51,218 |
Income tax provision | 6,862 | 7,092 | 18,781 | 17,593 |
Net income | $ 13,251 | $ 12,440 | $ 32,780 | $ 33,625 |
Earnings per share: | ||||
Basic (usd per share) | $ 0.24 | $ 0.23 | $ 0.61 | $ 0.61 |
Diluted (usd per share) | 0.24 | 0.22 | 0.60 | 0.61 |
Cash dividends declared per common share | $ 0 | $ 0 | $ 0.11 | $ 0.09 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 54,209,942 | 54,905,288 | 54,160,649 | 54,851,911 |
Diluted (in shares) | 54,579,590 | 55,484,043 | 54,623,163 | 55,423,294 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings |
Balance at Dec. 31, 2014 | $ 174,059 | $ 216 | $ 0 | $ 173,843 |
Balance (in shares) at Dec. 31, 2014 | 54,042 | |||
Net income | 32,780 | |||
Stock options exercised and restricted stock awards vested, including tax benefits | 4,857 | $ 2 | 4,855 | |
Stock options exercised and restricted stock awards vested, including tax benefits (in shares) | 516 | |||
Share-based compensation | 2,076 | 2,076 | ||
Stock repurchased and retired | (9,436) | $ (1) | (6,931) | (2,504) |
Stock repurchased and retired (in shares) | (419) | |||
Dividends | (5,965) | (5,965) | ||
Balance at Sep. 30, 2015 | $ 198,371 | $ 217 | $ 0 | $ 198,154 |
Balance (in shares) at Sep. 30, 2015 | 54,139 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income | $ 32,780 | $ 33,625 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 8,587 | 8,660 |
Amortization of bond premiums | 168 | 561 |
Provision for losses on accounts receivable, net of adjustments | (48) | (59) |
Provision for excess and obsolete inventories, net | (111) | 223 |
Share-based compensation | 2,076 | 1,578 |
Excess tax benefits from stock options exercised and restricted stock awards vested | (2,217) | (908) |
Gain on disposal of assets | (59) | (24) |
Foreign currency transaction loss | 114 | 36 |
Interest income on note receivable | (23) | (30) |
Deferred income taxes | (1,000) | (4,361) |
Changes in assets and liabilities: | ||
Accounts receivable | (1,685) | (15,663) |
Income tax receivable | 2,614 | 1,981 |
Inventories | (3,323) | (5,323) |
Prepaid expenses and other | (154) | (486) |
Accounts payable | (3,801) | 5,982 |
Deferred revenue | 138 | 591 |
Accrued liabilities and donations | 2,130 | 12,761 |
Net cash provided by operating activities | 36,186 | 39,144 |
Investing Activities | ||
Capital expenditures | (12,775) | (13,567) |
Proceeds from sale of property, plant and equipment | 63 | 30 |
Investment in certificates of deposits | (6,200) | (9,940) |
Maturities of certificates of deposits | 4,658 | 6,745 |
Purchases of investments held to maturity | (14,183) | (6,880) |
Maturities of investments | 9,907 | 8,891 |
Proceeds from called investments | 757 | 2,525 |
Principal payments from note receivable | 42 | 52 |
Net cash used in investing activities | (17,731) | (12,144) |
Financing Activities | ||
Stock options exercised | 2,640 | 908 |
Excess tax benefits from stock options exercised and restricted stock awards vested | 2,217 | 908 |
Repurchase of stock | (9,436) | (17,309) |
Cash dividends paid to stockholders | (5,965) | (4,773) |
Net cash used in financing activities | (10,544) | (20,266) |
Net increase in cash and cash equivalents | 7,911 | 6,734 |
Cash and cash equivalents, beginning of period | 21,952 | 12,085 |
Cash and cash equivalents, end of period | $ 29,863 | $ 18,819 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Presentation | General Basis of Presentation The accompanying unaudited consolidated financial statements of AAON, Inc., a Nevada corporation, and our operating subsidiaries, all of which are wholly-owned, (collectively, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2014 is derived from audited consolidated financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The financial statements reflect all adjustments (all of which are of a normal recurring nature) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for a full year. Certain disclosures have been condensed in or omitted from these consolidated financial statements. The accompanying unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . All intercompany balances and transactions have been eliminated in consolidation. We are engaged in the manufacture and sale of air conditioning and heating equipment consisting of rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, self-contained units and coils. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, the allowance for doubtful accounts, inventory reserves, warranty accrual, worker's compensation accrual, medical insurance accrual, income taxes and share-based compensation. Actual results could differ materially from those estimates. Accounting Policies A comprehensive discussion of our critical accounting policies and management estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2014 . There have been no significant changes in our critical accounting policies. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, with the issuance of ASU 2015-14, the FASB amended the effective date for us to January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. We do not expect ASU 2014-09 will have a material effect on our consolidated financial statements and notes thereto. In October 2015, the FASB voted to ratify proposed ASU 2015-210, requiring presentation of deferred tax assets and liabilities as non-current in a classified balance sheet. The ASU becomes effective in the annual reporting period beginning after December 31, 2016, including interim reporting periods. Early adoption is allowed as of the beginning of any interim or annual reporting period. The standard permits the use of the retrospective or prospective transition method. We will early adopt the standard effective October 1, 2015, for the interim and annual reporting periods ending December 31, 2015 and apply the retrospective transition method. We do not expect the ASU will have a material effect on our consolidated financial statements and notes thereto. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2015 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenues from sales of products when the title and risk of ownership pass to the customer. Final sales prices are fixed based on purchase orders. Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates. Sales of our products are moderately seasonal with the peak period being July - November of each year. In addition, we present revenues net of sales tax and net of certain payments to our independent manufacturer representatives (“Representatives”). Representatives are national companies that are in the business of providing HVAC units and other related products and services to customers. The end user customer orders a bundled group of products and services from the Representative and expects the Representative to fulfill the order. Only after the specifications are agreed to by the Representative and the customer, and the decision is made to use an AAON HVAC unit, will we receive notice of the order. We establish the amount we must receive for our HVAC unit (“minimum sales price”), but do not control the total order price that is negotiated by the Representative with the end user customer. We are responsible for billings and collections resulting from all sales transactions, including those initiated by our Representatives. The Representatives submit the total order price to us for invoicing and collection. The total order price includes our minimum sales price and an additional amount which may include both the Representatives’ fee and amounts due for additional products and services required by the customer. These additional products and services may include controls purchased from another manufacturer to operate the unit, start-up services, and curbs for supporting the unit (“Third Party Products”). All are associated with the purchase of a HVAC unit but may be provided by the Representative or another third party. The Company is under no obligation related to Third Party Products. The Representatives’ fee and Third Party Products amounts (“Due to Representatives”) are paid only after all amounts associated with the order are collected from the customer. The amount of payments to our Representatives were $14.4 million and $17.7 million for the three months ended September 30, 2015 and 2014 , respectively. The amount of payments to our Representatives were $42.5 million and $42.3 million for the nine months ended September 30, 2015 and 2014 , respectively. The Company also sells extended warranties on parts for various lengths of time ranging from 6 months to 10 years. Revenue for these separately priced warranties is deferred and recognized on a straight-line basis over the separately priced warranty period. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Investments | Investments Certificates of Deposit – We held $12.9 million and $11.4 million in certificates of deposit at September 30, 2015 and December 31, 2014 , respectively. At September 30, 2015 , the certificates of deposit bear interest ranging from 0.25% to 0.90% per annum and have various maturities ranging from less than 2 months to approximately 18 months . Investments Held to Maturity – Our investments held to maturity are comprised of $19.3 million of corporate notes and bonds with original maturities ranging from less than 1 month to approximately 18 months . The investments have moderate risk with S&P ratings ranging from AA+ to BBB-. We record the amortized cost basis and accrued interest of the corporate notes and bonds in the Consolidated Balance Sheets. We record the interest and amortization of bond premium to interest income in the Consolidated Statements of Income. The following summarizes the amortized cost and estimated fair value of our investments held to maturity as of September 30, 2015 and December 31, 2014 : Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value September 30, 2015: (in thousands) Current assets: Investments held to maturity $ 8,266 $ 7 $ — $ 8,273 Non current assets: Investments held to maturity 11,072 — (5 ) 11,067 Total $ 19,338 $ 7 $ (5 ) $ 19,340 December 31, 2014: Current assets: Investments held to maturity $ 11,972 $ — $ (7 ) $ 11,965 Non current assets: Investments held to maturity 4,015 — (16 ) 3,999 Total $ 15,987 $ — $ (23 ) $ 15,964 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable and the related allowance for doubtful accounts are as follows: September 30, December 31, 2014 (in thousands) Accounts receivable $ 45,948 $ 44,263 Less: Allowance for doubtful accounts (123 ) (171 ) Total, net $ 45,825 $ 44,092 Three months ended Nine months ended September 30, September 30, September 30, September 30, Allowance for doubtful accounts: (in thousands) Balance, beginning of period $ 69 $ 185 $ 171 $ 193 Provisions for losses on accounts receivables, net of recoveries 54 (51 ) (40 ) (66 ) Accounts receivable written off — — (8 ) 7 Balance, end of period $ 123 $ 134 $ 123 $ 134 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out (“FIFO”) method. We establish an allowance for excess and obsolete inventories based on product line changes, the feasibility of substituting parts and the need for supply and replacement parts. September 30, December 31, 2014 (in thousands) Raw materials $ 36,571 $ 34,153 Work in process 2,684 2,262 Finished goods 2,400 1,917 41,655 38,332 Less: Allowance for excess and obsolete inventories (603 ) (714 ) Total, net $ 41,052 $ 37,618 The related changes in the allowance for excess and obsolete inventories account are as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 773 $ 735 $ 714 $ 579 Provisions for excess and obsolete inventories (35 ) 67 24 223 Inventories written off (135 ) — (135 ) — Balance, end of period $ 603 $ 802 $ 603 $ 802 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three months ended Nine months ended September 30, September 30, September 30, September 30, Supplemental disclosures: (in thousands) Income taxes paid $ 6,321 $ 7,864 $ 17,167 $ 18,397 Non-cash investing and financing activities: Non-cash capital expenditures (17 ) (149 ) (190 ) 115 |
Warranties
Warranties | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Warranties | Warranties The Company has warranties with various terms ranging from 18 months for parts to 25 years for certain heat exchangers. The Company has an obligation to replace parts or service its products if conditions under the warranty are met. A provision is made for estimated warranty costs at the time the related products are sold based upon the warranty period, historical trends, new products and any known identifiable warranty issues. Changes in the warranty accrual are as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, Warranty accrual: (in thousands) Balance, beginning of period $ 8,092 $ 7,775 $ 8,130 $ 7,352 Payments made (1,130 ) (1,159 ) (3,133 ) (3,294 ) Provisions 1,289 1,645 3,254 4,203 Balance, end of period $ 8,251 $ 8,261 $ 8,251 $ 8,261 Warranty expense: $ 1,289 $ 1,645 $ 3,254 $ 4,203 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities are as follows: September 30, December 31, 2014 (in thousands) Warranty $ 8,251 $ 8,130 Due to representatives 9,438 10,188 Payroll 5,421 3,153 Profit sharing 2,263 2,016 Worker's compensation 355 535 Medical self-insurance 1,302 532 Customer prepayments 1,990 1,639 Donations 600 1,600 Employee benefits and other 4,862 3,550 Total $ 34,482 $ 31,343 |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility Our revolving credit facility provides for maximum borrowings of $30.0 million which is provided by BOKF, NA dba Bank of Oklahoma, formerly known as Bank of Oklahoma, N.A. ("Bank of Oklahoma"). Under the line of credit, there is one standby letter of credit totaling $0.8 million . Borrowings available under the revolving credit facility at September 30, 2015 were $29.2 million . Interest on borrowings is payable monthly at LIBOR plus 2.5% . No fees are associated with the unused portion of the committed amount. We had no outstanding balance under the revolving credit facility at September 30, 2015 and December 31, 2014 . The termination date of the revolving credit facility is July 27, 2016. As of September 30, 2015 , we were in compliance with our financial covenants. These covenants require that we meet certain parameters related to our tangible net worth, total liabilities to tangible net worth ratio and working capital. At September 30, 2015 , our tangible net worth was $ 198.4 million and met the requirement of being at or above $95.0 million . Our total liabilities to tangible net worth ratio was 0.29 to 1, and met the requirement of not being above 2 to 1. Our working capital was $ 102.7 million and met the requirement of being at or above $40.0 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for each of the three months ended September 30, 2015 and 2014 was $6.9 million , or 34.1% of pre-tax income, and $7.1 million , or 36.3% of pre-tax income, respectively. Income tax expense for each of the nine months ended September 30, 2015 and 2014 was $18.8 million , or 36.4% of pre-tax income, and $17.6 million , or 34.3% of pre-tax income, respectively. The Company’s estimated annual 2015 effective tax rate is approximately 36.7% . This differs from the U.S. federal statutory rate of 35% due principally to items such as state and local income taxes, the federal domestic activities deduction and state income tax credits. The Company's income tax expense for the three months ended September 30, 2015 is lower than expected due to return to provision adjustments. The Company's income tax expense for the nine months ended September 30, 2014 was decreased by $0.7 million due to a change in method of accounting for state investment credits to recognize them as each annual portion of the credit becomes available for use on tax returns. We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. examinations for tax years 2011 to present, and to non-U.S. income tax examinations for the tax years of 2010 to present. In addition, we are subject to state and local income tax examinations for the tax years 2010 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We have historically maintained a stock option plan for key employees, directors and consultants (“the 1992 Plan”). The 1992 Plan provided for 14.9 million shares to be issued under the plan in the form of stock options. Under the terms of the 1992 Plan, the exercise price of shares granted may not be less than 85% of the fair market value at the date of the grant. Options granted to directors prior to May 25, 2004 vest one year from the date of grant and are exercisable for nine years thereafter. Options granted to directors on or after May 25, 2004 vest one-third each year, commencing one year after the date of grant. All other options granted vest at a rate of 20% per year, commencing one year after date of grant, and are exercisable during years 2 - 10 . On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provides an additional 3.3 million shares that can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards. Since inception of the LTIP, non-qualified stock options and restricted stock awards have been granted with the same vesting schedule as the previous plan. Under the LTIP, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The compensation cost related to unvested stock options not yet recognized as of September 30, 2015 is $1.4 million and is expected to be recognized over a weighted-average period of 1.9 years. The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the nine months ended September 30, 2015 and 2014 using a Black Scholes Model: Nine months ended September 30, 2015 September 30, 2014 Director and Officers: Expected dividend rate $ 0.18 N/A Expected volatility 44.14 % N/A Risk-free interest rate 1.97 % N/A Expected life (in years) 8 N/A Employees: Expected dividend rate $ 0.18 $ 0.25 Expected volatility 44.13 % 45.56 % Risk-free interest rate 2.05 % 2.40 % Expected life (in years) 8 8 The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date. The following is a summary of stock options vested and exercisable as of September 30, 2015 : Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $4.31-$7.18 261,442 4.11 $ 5.93 $ 3,516 $7.44-$8.17 17,550 5.84 7.72 205 $8.65-$23.57 176,895 6.71 9.04 1,830 Total 455,887 5.18 $ 7.20 $ 5,551 The following is a summary of stock options vested and exercisable as of September 30, 2014 : Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $3.21-$6.89 459,684 3.48 $ 5.10 $ 5,492 $7.13-$8.17 82,450 6.81 7.26 804 $8.65-$21.14 192,627 6.36 8.76 1,590 Total 734,761 4.61 $ 6.30 $ 7,886 A summary of option activity under the plans is as follows: Options Shares Weighted Average Exercise Price Outstanding at December 31, 2014 1,235,150 $ 8.16 Granted 62,605 22.93 Exercised (411,905 ) 6.41 Forfeited or Expired (28,705 ) 13.63 Outstanding at September 30, 2015 857,145 $ 9.89 Exercisable at September 30, 2015 455,887 $ 7.20 The total intrinsic value of options exercised during the nine months ended September 30, 2015 and 2014 was $7.0 million and $1.8 million , respectively. The cash received from options exercised during the nine months ended September 30, 2015 and 2014 was $2.6 million and $0.9 million , respectively. The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows. Since 2007, as part of the LTIP, the Compensation Committee of the Board of Directors has authorized and issued restricted stock awards to directors and key employees. Restricted stock awards granted to directors vest one-third each year. All other restricted stock awards vest at a rate of 20% per year. The fair value of restricted stock awards is based on the fair market value of AAON, Inc. common stock on the respective grant dates, reduced for the present value of dividends. These awards are recorded at their fair value on the date of grant and compensation cost is recorded using straight-line vesting over the service period. At September 30, 2015 , unrecognized compensation cost related to unvested restricted stock awards was approximately $5.1 million , which is expected to be recognized over a weighted average period of 2.1 years. A summary of the unvested restricted stock awards is as follows: Restricted stock Shares Weighted Fair Value Unvested at December 31, 2014 414,846 $ 16.76 Granted 127,038 22.18 Vested (84,563 ) 14.68 Forfeited (22,614 ) 18.48 Unvested at September 30, 2015 434,707 $ 18.66 A summary of share-based compensation is as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, Grant date fair value of awards during the period: (in thousands) Options $ — $ 119 $ 657 $ 307 Restricted stock 262 343 2,818 3,378 Total $ 262 $ 462 $ 3,475 $ 3,685 Share-based compensation expense: Options $ 203 $ 181 $ 601 $ 701 Restricted stock 592 413 1,475 877 Total $ 795 $ 594 $ 2,076 $ 1,578 Income tax benefit related to share-based compensation: Options $ (123 ) $ 188 $ 2,113 $ 672 Restricted stock (112 ) 40 104 236 Total $ (235 ) $ 228 $ 2,217 $ 908 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards. Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands, except share and per share data) Numerator: Net income $ 13,251 $ 12,440 $ 32,780 $ 33,625 Denominator: Basic weighted average shares 54,209,942 54,905,288 54,160,649 54,851,911 Effect of dilutive stock options and restricted stock 369,648 578,755 462,514 571,383 Diluted weighted average shares 54,579,590 55,484,043 54,623,163 55,423,294 Earnings per share: Basic $ 0.24 $ 0.23 $ 0.61 $ 0.61 Diluted $ 0.24 $ 0.22 $ 0.60 $ 0.61 Anti-dilutive shares: Shares 138,661 29,132 135,971 22,676 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Repurchase - On May 17, 2010, the Board authorized a stock buyback program, targeting repurchases of up to approximately 5% (approximately 2.9 million shares) of our outstanding stock from time to time in open market transactions. In May 2015, the Board authorized repurchases up to an additional 2.75 million shares, or a total of approximately 5.7 million shares. In October 2015, the Board authorized $25.0 million for use under the Company's stock buyback program. Since the inception of the program, we repurchased a total of approximately 2.6 million shares for an aggregate price of $31.5 million , or an average price of $11.97 per share. We purchased the shares at current market prices. For each of the nine months ended September 30, 2015 and 2014 , we repurchased 0.0 million and 0.5 million shares, respectively. On July 1, 2005, we entered into a stock repurchase arrangement by which employee-participants in our 401(k) savings and investment plan are entitled to have shares of AAON, Inc. stock in their accounts sold to the Company. The maximum number of shares to be repurchased is contingent upon the number of shares sold by employees. Through September 30, 2015 , we repurchased approximately 5.4 million shares for an aggregate price of $48.4 million , or an average price of $8.90 per share. We purchased the shares at current market prices. For each of the nine months ended September 30, 2015 and 2014 , we repurchased approximately 0.4 million and 0.3 million shares, respectively. Periodically, the Company repurchases shares of AAON, Inc. stock from certain of its directors and employees. The number of shares to be repurchased is contingent upon Board approval. Through September 30, 2015 , we repurchased approximately 1.8 million shares for an aggregate price of $14.6 million , or an average price of $7.97 per share. We purchased the shares at current market prices. For each of the nine months ended September 30, 2015 and 2014 , we repurchased approximately 0.02 million and 0.05 million shares under this program. Dividends - At the discretion of the Board of Directors, we pay semi-annual cash dividends. Board approval is required to determine the date of declaration and amount for each semi-annual dividend payment. On May 2, 2014, the Board of Directors declared a regular semi-annual cash dividend of $0.09 per share, to stockholders of record at the close of business on June 12, 2014, the record date. Those dividends were paid on July 1, 2014. On June 5, 2014, the Board of Directors declared a three-for-two stock split of the Company's common stock paid in the form of a stock dividend on July 16, 2014. Stockholders of record at the close of business on June 27, 2014 received one additional share for every two shares they held as of that date. At a meeting of the Board of Directors on November 4, 2014, the Board declared a regular semi-annual cash dividend of $ 0.09 per share. The dividends were payable to shareholders of record at the close of business on December 2, 2014, the record date, and were paid on December 23, 2014. On May 19, 2015, the Board of Directors declared a regular semi-annual cash dividend of $0.11 per share, to stockholders of record at the close of business on June 12, 2015, the record date. The dividends were paid on July 1, 2015. On October 29, 2015, the Board of Directors declared a regular semi-annual cash dividend of $0.11 per share, to stockholders of record at the close of business on December 2, 2015, the record date. The dividends will be paid on December 23, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various claims and legal actions that arise in the ordinary course of business. We closely monitor these claims and legal actions and frequently consult with our legal counsel to determine whether they may, when resolved, have a material adverse effect on our financial position, results of operations or cash flows and we accrue and/or disclose loss contingencies as appropriate. We have concluded that the likelihood is remote that the ultimate resolution of any pending litigation or claims will be material or have a material adverse effect on the Company's business, financial position, results of operations or cash flows. We are party to short-term, cancellable and non-cancellable, fixed price contracts with major suppliers for the purchase of raw material and component parts. We expect to receive delivery of raw materials for use in our manufacturing operations. These contracts are not accounted for as derivatives instruments because they meet the normal purchases and sales exemption. We had no material contractual purchase agreements as of September 30, 2015 or December 31, 2014. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, the allowance for doubtful accounts, inventory reserves, warranty accrual, worker's compensation accrual, medical insurance accrual, income taxes and share-based compensation. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, with the issuance of ASU 2015-14, the FASB amended the effective date for us to January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. We do not expect ASU 2014-09 will have a material effect on our consolidated financial statements and notes thereto. In October 2015, the FASB voted to ratify proposed ASU 2015-210, requiring presentation of deferred tax assets and liabilities as non-current in a classified balance sheet. The ASU becomes effective in the annual reporting period beginning after December 31, 2016, including interim reporting periods. Early adoption is allowed as of the beginning of any interim or annual reporting period. The standard permits the use of the retrospective or prospective transition method. We will early adopt the standard effective October 1, 2015, for the interim and annual reporting periods ending December 31, 2015 and apply the retrospective transition method. We do not expect the ASU will have a material effect on our consolidated financial statements and notes thereto. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Amortized Cost and Estimated Fair Value of Investments Held to Maturity | The following summarizes the amortized cost and estimated fair value of our investments held to maturity as of September 30, 2015 and December 31, 2014 : Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value September 30, 2015: (in thousands) Current assets: Investments held to maturity $ 8,266 $ 7 $ — $ 8,273 Non current assets: Investments held to maturity 11,072 — (5 ) 11,067 Total $ 19,338 $ 7 $ (5 ) $ 19,340 December 31, 2014: Current assets: Investments held to maturity $ 11,972 $ — $ (7 ) $ 11,965 Non current assets: Investments held to maturity 4,015 — (16 ) 3,999 Total $ 15,987 $ — $ (23 ) $ 15,964 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | September 30, December 31, 2014 (in thousands) Accounts receivable $ 45,948 $ 44,263 Less: Allowance for doubtful accounts (123 ) (171 ) Total, net $ 45,825 $ 44,092 |
Allowance for Doubtful Accounts | Three months ended Nine months ended September 30, September 30, September 30, September 30, Allowance for doubtful accounts: (in thousands) Balance, beginning of period $ 69 $ 185 $ 171 $ 193 Provisions for losses on accounts receivables, net of recoveries 54 (51 ) (40 ) (66 ) Accounts receivable written off — — (8 ) 7 Balance, end of period $ 123 $ 134 $ 123 $ 134 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | September 30, December 31, 2014 (in thousands) Raw materials $ 36,571 $ 34,153 Work in process 2,684 2,262 Finished goods 2,400 1,917 41,655 38,332 Less: Allowance for excess and obsolete inventories (603 ) (714 ) Total, net $ 41,052 $ 37,618 |
Inventories (Allowance) | The related changes in the allowance for excess and obsolete inventories account are as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 773 $ 735 $ 714 $ 579 Provisions for excess and obsolete inventories (35 ) 67 24 223 Inventories written off (135 ) — (135 ) — Balance, end of period $ 603 $ 802 $ 603 $ 802 |
Supplemental Cash Flow Inform25
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Three months ended Nine months ended September 30, September 30, September 30, September 30, Supplemental disclosures: (in thousands) Income taxes paid $ 6,321 $ 7,864 $ 17,167 $ 18,397 Non-cash investing and financing activities: Non-cash capital expenditures (17 ) (149 ) (190 ) 115 |
Warranties (Tables)
Warranties (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Warranty | Changes in the warranty accrual are as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, Warranty accrual: (in thousands) Balance, beginning of period $ 8,092 $ 7,775 $ 8,130 $ 7,352 Payments made (1,130 ) (1,159 ) (3,133 ) (3,294 ) Provisions 1,289 1,645 3,254 4,203 Balance, end of period $ 8,251 $ 8,261 $ 8,251 $ 8,261 Warranty expense: $ 1,289 $ 1,645 $ 3,254 $ 4,203 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities are as follows: September 30, December 31, 2014 (in thousands) Warranty $ 8,251 $ 8,130 Due to representatives 9,438 10,188 Payroll 5,421 3,153 Profit sharing 2,263 2,016 Worker's compensation 355 535 Medical self-insurance 1,302 532 Customer prepayments 1,990 1,639 Donations 600 1,600 Employee benefits and other 4,862 3,550 Total $ 34,482 $ 31,343 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Assumptions | The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the nine months ended September 30, 2015 and 2014 using a Black Scholes Model: Nine months ended September 30, 2015 September 30, 2014 Director and Officers: Expected dividend rate $ 0.18 N/A Expected volatility 44.14 % N/A Risk-free interest rate 1.97 % N/A Expected life (in years) 8 N/A Employees: Expected dividend rate $ 0.18 $ 0.25 Expected volatility 44.13 % 45.56 % Risk-free interest rate 2.05 % 2.40 % Expected life (in years) 8 8 |
Summary of Stock Options Outstanding | The following is a summary of stock options vested and exercisable as of September 30, 2015 : Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $4.31-$7.18 261,442 4.11 $ 5.93 $ 3,516 $7.44-$8.17 17,550 5.84 7.72 205 $8.65-$23.57 176,895 6.71 9.04 1,830 Total 455,887 5.18 $ 7.20 $ 5,551 The following is a summary of stock options vested and exercisable as of September 30, 2014 : Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $3.21-$6.89 459,684 3.48 $ 5.10 $ 5,492 $7.13-$8.17 82,450 6.81 7.26 804 $8.65-$21.14 192,627 6.36 8.76 1,590 Total 734,761 4.61 $ 6.30 $ 7,886 |
Summary of Stock Option Activity | A summary of option activity under the plans is as follows: Options Shares Weighted Average Exercise Price Outstanding at December 31, 2014 1,235,150 $ 8.16 Granted 62,605 22.93 Exercised (411,905 ) 6.41 Forfeited or Expired (28,705 ) 13.63 Outstanding at September 30, 2015 857,145 $ 9.89 Exercisable at September 30, 2015 455,887 $ 7.20 |
Summary of Unvested Restricted Stock Awards | A summary of the unvested restricted stock awards is as follows: Restricted stock Shares Weighted Fair Value Unvested at December 31, 2014 414,846 $ 16.76 Granted 127,038 22.18 Vested (84,563 ) 14.68 Forfeited (22,614 ) 18.48 Unvested at September 30, 2015 434,707 $ 18.66 |
Summary of Grant Date Fair Value of Awards During Period | A summary of share-based compensation is as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, Grant date fair value of awards during the period: (in thousands) Options $ — $ 119 $ 657 $ 307 Restricted stock 262 343 2,818 3,378 Total $ 262 $ 462 $ 3,475 $ 3,685 |
Summary of Share-Based Compensation Expense | Share-based compensation expense: Options $ 203 $ 181 $ 601 $ 701 Restricted stock 592 413 1,475 877 Total $ 795 $ 594 $ 2,076 $ 1,578 |
Summary of Income Tax Benefit Related to Share-Based Compensation | Income tax benefit related to share-based compensation: Options $ (123 ) $ 188 $ 2,113 $ 672 Restricted stock (112 ) 40 104 236 Total $ (235 ) $ 228 $ 2,217 $ 908 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands, except share and per share data) Numerator: Net income $ 13,251 $ 12,440 $ 32,780 $ 33,625 Denominator: Basic weighted average shares 54,209,942 54,905,288 54,160,649 54,851,911 Effect of dilutive stock options and restricted stock 369,648 578,755 462,514 571,383 Diluted weighted average shares 54,579,590 55,484,043 54,623,163 55,423,294 Earnings per share: Basic $ 0.24 $ 0.23 $ 0.61 $ 0.61 Diluted $ 0.24 $ 0.22 $ 0.60 $ 0.61 Anti-dilutive shares: Shares 138,661 29,132 135,971 22,676 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue Recognition [Abstract] | ||||
Payments to representatives | $ 14.4 | $ 17.7 | $ 42.5 | $ 42.3 |
Extended product warranties, minimum length | 6 months | |||
Extended product warranties, maximum length | 10 years |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | ||
Certificates of deposits | $ 12,900 | $ 11,400 |
Certificates of deposit interest rate, lower range | 0.25% | |
Certificates of deposit interest rate, upper range | 0.90% | |
Investments held to maturity | $ 19,338 | $ 15,987 |
Minimum [Member] | ||
Schedule of Investments [Line Items] | ||
Certificates of deposit maturity dates | 2 months | |
Investments maturity dates | 1 month | |
Maximum [Member] | ||
Schedule of Investments [Line Items] | ||
Certificates of deposit maturity dates | 18 months | |
Investments maturity dates | 18 months |
Investments (Investments Held t
Investments (Investments Held to Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | $ 19,338 | $ 15,987 |
Gross Unrealized Gain | 7 | 0 |
Gross Unrealized (Loss) | (5) | (23) |
Fair Value | 19,340 | 15,964 |
Current Assets [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 8,266 | 11,972 |
Gross Unrealized Gain | 7 | 0 |
Gross Unrealized (Loss) | 0 | (7) |
Fair Value | 8,273 | 11,965 |
Non Current Assets [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 11,072 | 4,015 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized (Loss) | (5) | (16) |
Fair Value | $ 11,067 | $ 3,999 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Accounts receivable | $ 45,948 | $ 44,263 |
Less: Allowance for doubtful accounts | (123) | (171) |
Total, net | $ 45,825 | $ 44,092 |
Accounts Receivable (Allowance)
Accounts Receivable (Allowance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance, beginning of period | $ 69 | $ 185 | $ 171 | $ 193 |
Provisions for losses on accounts receivables, net of recoveries | 54 | (51) | (40) | (66) |
Accounts receivable written off, net of recoveries | 0 | 0 | (8) | 7 |
Balance, end of period | $ 123 | $ 134 | $ 123 | $ 134 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||||||
Raw materials | $ 36,571 | $ 34,153 | ||||
Work in process | 2,684 | 2,262 | ||||
Finished goods | 2,400 | 1,917 | ||||
Inventory, gross | 41,655 | 38,332 | ||||
Less: Allowance for excess and obsolete inventories | (603) | $ (773) | (714) | $ (802) | $ (735) | $ (579) |
Total, net | $ 41,052 | $ 37,618 |
Inventories (Allowance) (Detail
Inventories (Allowance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Inventory Valuation Reserves [Roll Forward] | ||||
Balance, beginning of period | $ 773 | $ 735 | $ 714 | $ 579 |
Provisions for excess and obsolete inventories | (35) | 67 | 24 | 223 |
Inventories written off | (135) | 0 | (135) | 0 |
Balance, end of period | $ 603 | $ 802 | $ 603 | $ 802 |
Supplemental Cash Flow Inform37
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental disclosure: | ||||
Income taxes paid | $ 6,321 | $ 7,864 | $ 17,167 | $ 18,397 |
Non-cash investing and financing activities: | ||||
Non-cash capital expenditures | $ (17) | $ (149) | $ (190) | $ 115 |
Warranties (Narrative) (Details
Warranties (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Product warranty accrual, minimum length | 18 months |
Product warranty accrual, maximum length | 25 years |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance, beginning of period | $ 8,092 | $ 7,775 | $ 8,130 | $ 7,352 |
Payments made | (1,130) | (1,159) | (3,133) | (3,294) |
Provisions | 1,289 | 1,645 | 3,254 | 4,203 |
Balance, end of period | 8,251 | 8,261 | 8,251 | 8,261 |
Warranty expense | $ 1,289 | $ 1,645 | $ 3,254 | $ 4,203 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Warranty | $ 8,251 | $ 8,130 |
Due to representatives | 9,438 | 10,188 |
Payroll | 5,421 | 3,153 |
Profit sharing | 2,263 | 2,016 |
Worker's compensation | 355 | 535 |
Medical self-insurance | 1,302 | 532 |
Customer prepayments | 1,990 | 1,639 |
Donations | 600 | 1,600 |
Employee benefits and other | 4,862 | 3,550 |
Total | $ 34,482 | $ 31,343 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) | 9 Months Ended | |
Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Line of Credit Facility [Line Items] | ||
Borrowings outstanding under revolving credit facility | $ 0 | $ 0 |
Fees associated with unused portion of committed amount | 0 | |
Actual net worth for compliance | 198,400,000 | |
Minimum net worth required for compliance | $ 95,000,000 | |
Ratio of total liability to net worth | 0.29 | |
Maximum ratio of total liability to net worth for compliance | 2 | |
Actual working capital for compliance | $ 102,700,000 | |
Minimum working capital for compliance | 40,000,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum borrowings | 30,000,000 | |
Standby letter of credit | 800,000 | |
Borrowings available under the revolving credit facility | $ 29,200,000 | |
Frequency of periodic payment | monthly | |
Revolving Credit Facility [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Stated percentage | 2.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Change in Accounting Estimate [Line Items] | ||||
Income tax expense (benefit) | $ 6,862 | $ 7,092 | $ 18,781 | $ 17,593 |
Effective tax rate | 34.10% | 36.30% | 36.40% | 34.30% |
Expected effective income tax rate for the year | 36.70% | |||
Statutory federal tax rate | 35.00% | |||
Investment Tax Credit Carryforward [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Income tax expense (benefit) | $ (700) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized pre-tax compensation cost | $ 1.4 | |
Weighted average recognition period (in years) | 1 year 11 months | |
Total intrinsic value of options exercised during period | $ 7 | $ 1.8 |
Cash received from options exercised during period | $ 2.6 | $ 0.9 |
1992 Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock authorized to be issued under plan (in shares) | 14,900,000 | |
Exercise price of shares granted may not be less than fair market value (percentage) | 85.00% | |
2007 Long-Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock authorized to be issued under plan (in shares) | 3,281,250 | |
Exercise price of shares granted may not be less than fair market value (percentage) | 100.00% | |
Unrecognized pre-tax compensation cost | $ 5.1 | |
Weighted average recognition period (in years) | 2 years 1 month 20 days | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercisable period | 2 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercisable period | 10 years | |
Restricted Stock [Member] | 2007 Long-Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual vesting period | 20.00% | |
All Other Options Granted [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual vesting period | 20.00% | |
Director [Member] | Options Granted Prior to May 25, 2004 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Exercisable period | 9 years | |
Director [Member] | Options Granted on or after May 25, 2004 [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual vesting period | 33.33% |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Assumptions) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Director and Officers [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend rate | $ 0.18 | |
Expected volatility | 44.14% | |
Risk-free interest rate | 1.97% | |
Expected life | 8 years | |
2007 Long-Term Incentive Plan Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend rate | $ 0.18 | $ 0.25 |
Expected volatility | 44.13% | 45.56% |
Risk-free interest rate | 2.05% | 2.40% |
Expected life | 8 years | 8 years |
Share-Based Compensation (Sum45
Share-Based Compensation (Summary of Stock Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of shares vested and exercisable | 455,887 | 734,761 |
Options vested and exercisable weighted average remaining contractual life | 5 years 2 months 5 days | 4 years 7 months 10 days |
Options vested and exercisable weighted average exercise price | $ 7.20 | $ 6.30 |
Options vested and exercisable intrinsic value | $ 5,551 | $ 7,886 |
$4.31-$7.18 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range | $ 4.31 | |
Range of exercise prices, upper range | $ 7.18 | |
Number of shares vested and exercisable | 261,442 | |
Options vested and exercisable weighted average remaining contractual life | 4 years 1 month 10 days | |
Options vested and exercisable weighted average exercise price | $ 5.93 | |
Options vested and exercisable intrinsic value | $ 3,516 | |
$7.44-$8.17 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range | $ 7.44 | |
Range of exercise prices, upper range | $ 8.17 | |
Number of shares vested and exercisable | 17,550 | |
Options vested and exercisable weighted average remaining contractual life | 5 years 10 months 2 days | |
Options vested and exercisable weighted average exercise price | $ 7.72 | |
Options vested and exercisable intrinsic value | $ 205 | |
$8.65-$23.57 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range | $ 8.65 | |
Range of exercise prices, upper range | $ 23.57 | |
Number of shares vested and exercisable | 176,895 | |
Options vested and exercisable weighted average remaining contractual life | 6 years 8 months 17 days | |
Options vested and exercisable weighted average exercise price | $ 9.04 | |
Options vested and exercisable intrinsic value | $ 1,830 | |
$3.21-$6.89 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range | $ 3.21 | |
Range of exercise prices, upper range | $ 6.89 | |
Number of shares vested and exercisable | 459,684 | |
Options vested and exercisable weighted average remaining contractual life | 3 years 5 months 24 days | |
Options vested and exercisable weighted average exercise price | $ 5.10 | |
Options vested and exercisable intrinsic value | $ 5,492 | |
$7.13-$8.17 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range | $ 7.13 | |
Range of exercise prices, upper range | $ 8.17 | |
Number of shares vested and exercisable | 82,450 | |
Options vested and exercisable weighted average remaining contractual life | 6 years 9 months 23 days | |
Options vested and exercisable weighted average exercise price | $ 7.26 | |
Options vested and exercisable intrinsic value | $ 804 | |
$8.65-$21.14 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range | $ 8.65 | |
Range of exercise prices, upper range | $ 21.14 | |
Number of shares vested and exercisable | 192,627 | |
Options vested and exercisable weighted average remaining contractual life | 6 years 4 months 11 days | |
Options vested and exercisable weighted average exercise price | $ 8.76 | |
Options vested and exercisable intrinsic value | $ 1,590 |
Share-Based Compensation (Sum46
Share-Based Compensation (Summary of Stock Option Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Shares [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 1,235,150 | |
Granted (in shares) | 62,605 | |
Exercised (in shares) | (411,905) | |
Forfeited or Expired (in shares) | (28,705) | |
Outstanding, end of period (in shares) | 857,145 | |
Exercisable, end of period (in shares) | 455,887 | 734,761 |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of period (weighted average exercise price) | $ 8.16 | |
Granted (weighted average exercise price) | 22.93 | |
Exercised (weighted average exercise price) | 6.41 | |
Forfeited or Expired (weighted average exercise price) | 13.63 | |
Outstanding, end of period (weighted average exercise price) | 9.89 | |
Exercisable, end of period (weighted average exercise price) | $ 7.20 | $ 6.30 |
Share-Based Compensation (Sum47
Share-Based Compensation (Summary of Unvested Restricted Stock Awards) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Shares [Roll Forward] | |
Unvested, beginning of period (in shares) | shares | 414,846 |
Granted (in shares) | shares | 127,038 |
Vested (in shares) | shares | (84,563) |
Forfeited (in shares) | shares | (22,614) |
Unvested, end of period (in shares) | shares | 434,707 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Unvested, beginning of period (weighted average grant date fair value) | $ 16.76 |
Granted (weighted average grant date fair value) | 22.18 |
Vested (weighted average grant date fair value) | 14.68 |
Forfeited (weighted average grant date fair value) | 18.48 |
Unvested, end of period (weighted average grant date fair value) | $ 18.66 |
Share-Based Compensation (Sum48
Share-Based Compensation (Summary of Grant Date Fair Value of Awards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Options | $ 0 | $ 119 | $ 657 | $ 307 |
Restricted stock | 262 | 343 | 2,818 | 3,378 |
Total | $ 262 | $ 462 | $ 3,475 | $ 3,685 |
Share-Based Compensation (Sum49
Share-Based Compensation (Summary of Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Options | $ 203 | $ 181 | $ 601 | $ 701 |
Restricted stock | 592 | 413 | 1,475 | 877 |
Total | $ 795 | $ 594 | $ 2,076 | $ 1,578 |
Share-Based Compensation (Sum50
Share-Based Compensation (Summary of Income Tax Benefit Related to Share-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Options | $ (123) | $ 188 | $ 2,113 | $ 672 |
Restricted stock | (112) | 40 | 104 | 236 |
Total | $ (235) | $ 228 | $ 2,217 | $ 908 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 13,251 | $ 12,440 | $ 32,780 | $ 33,625 |
Basic weighted average shares (in shares) | 54,209,942 | 54,905,288 | 54,160,649 | 54,851,911 |
Effect of dilutive stock options and restricted stock (in shares) | 369,648 | 578,755 | 462,514 | 571,383 |
Diluted weighted average shares (in shares) | 54,579,590 | 55,484,043 | 54,623,163 | 55,423,294 |
Basic (usd per share) | $ 0.24 | $ 0.23 | $ 0.61 | $ 0.61 |
Diluted (usd per share) | $ 0.24 | $ 0.22 | $ 0.60 | $ 0.61 |
Anti-dilutive shares (in shares) | 138,661 | 29,132 | 135,971 | 22,676 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 29, 2015 | May. 19, 2015 | Nov. 04, 2014 | May. 02, 2014 | May. 17, 2010 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | May. 18, 2015 |
Schedule of Shareholders' Equity [Line Items] | |||||||||||||
Cash dividends declared per common share | $ 0 | $ 0 | $ 0.11 | $ 0.09 | |||||||||
Dividend Declared [Member] | |||||||||||||
Schedule of Shareholders' Equity [Line Items] | |||||||||||||
Cash dividends declared per common share | $ 0.11 | $ 0.09 | $ 0.09 | ||||||||||
Dividend Declared [Member] | Subsequent Event [Member] | |||||||||||||
Schedule of Shareholders' Equity [Line Items] | |||||||||||||
Cash dividends declared per common share | $ 0.11 | ||||||||||||
2010 Stock Repurchase Program | |||||||||||||
Schedule of Shareholders' Equity [Line Items] | |||||||||||||
Stock repurchase program authorized percentage | 5.00% | ||||||||||||
Stock repurchase program amount authorized (in shares) | 5,700,000 | 2,900,000 | 2,750,000 | ||||||||||
Stock repurchased during period (in shares) | 0 | 500,000 | 2,600,000 | ||||||||||
Aggregate price of shares repurchased since inception | $ 31.5 | ||||||||||||
Average price of shares repurchased since inception (per share) | $ 11.97 | ||||||||||||
2005 401(k) Stock Repurchase Program | |||||||||||||
Schedule of Shareholders' Equity [Line Items] | |||||||||||||
Stock repurchased during period (in shares) | 400,000 | 300,000 | 5,400,000 | ||||||||||
Aggregate price of shares repurchased since inception | $ 48.4 | ||||||||||||
Average price of shares repurchased since inception (per share) | $ 8.90 | ||||||||||||
2006 Director and Officer Repurchase Program | |||||||||||||
Schedule of Shareholders' Equity [Line Items] | |||||||||||||
Stock repurchased during period (in shares) | 20,000 | 50,000 | 1,800,000 | ||||||||||
Aggregate price of shares repurchased since inception | $ 14.6 | ||||||||||||
Average price of shares repurchased since inception (per share) | $ 7.97 |