AAON (AAON) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 05, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	0-18953
Entity Registrant Name	AAON, INC.
Entity Central Index Key	0000824142
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	87-0448736
Entity Address, Address Line One	2425 South Yukon Ave.,
Entity Address, City or Town	Tulsa,
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74107
City Area Code	918
Local Phone Number	583-2266
Title of 12(b) Security	Common Stock
Trading Symbol	AAON
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		52,031,532

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents		$ 35,677	$ 26,797
Restricted Cash		16,468	17,576
Accounts receivable, net		69,894	67,399
Income tax receivable		0	772
Notes receivable		27	29
Inventories, net		72,855	73,601
Prepaid expenses and other		2,045	1,375
Total current assets		196,966	187,549
Property, plant and equipment:
Land		3,298	3,274
Buildings		104,707	101,113
Machinery and equipment		252,544	236,087
Furniture and fixtures		17,116	16,862
Total property, plant and equipment		377,665	357,336
Less: Accumulated depreciation		184,636	179,242
Property, plant and equipment, net		193,029	178,094
Intangible assets, net		213	272
Goodwill		3,229	3,229
Right of use assets		1,641	1,683
Note receivable		542	597
Total assets		395,620	371,424
Current liabilities:
Revolving credit facility		0	0
Accounts payable		13,501	11,759
Accrued liabilities		50,684	44,269
Total current liabilities		64,185	56,028
Deferred income taxes		15,130	15,297
Other long-term liabilities		3,652	3,639
New market tax credit obligation	[1]	6,330	6,320
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, 52,044,110 and 52,078,515 issued and outstanding at March 31, 2020 and December 31, 2019, respectively		208	208
Additional paid-in capital		0	3,631
Retained earnings		306,115	286,301
Total stockholders' equity		306,323	290,140
Total liabilities and stockholders' equity		$ 395,620	$ 371,424
[1]	(a) Held by variable interest entities (Note 16)

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
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	52,044,110	52,078,515
Common stock, shares outstanding	52,044,110	52,078,515

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net Sales	$ 137,483	$ 113,822
Cost of sales	94,536	88,392
Gross profit	42,947	25,430
Selling, general and administrative expenses	15,214	13,677
(Gain) loss on disposition of assets	(62)	284
Income from operations	27,795	11,469
Interest income, net	61	9
Other (expense) income, net	(27)	(26)
Income before taxes	27,829	11,452
Income tax provision	5,976	2,695
Net income	$ 21,853	$ 8,757
Earnings per share:
Basic (usd per share)	$ 0.42	$ 0.17
Diluted (usd per share)	$ 0.41	$ 0.17
Weighted average shares outstanding:
Basic (in shares)	52,071,839	51,992,150
Diluted (in shares)	52,871,419	52,369,660

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings
Balance at Dec. 31, 2018	$ 249,443	$ 208	$ 0	$ 249,235
Balance (in shares) at Dec. 31, 2018		51,991
Net income	8,757			8,757
Stock options exercised and restricted stock awards granted	4,010	$ 1	4,009
Stock options exercised and restricted stock awards granted (in shares)		237
Share-based compensation	5,407		5,407
Stock repurchased and retired	(5,071)	$ (1)	(5,070)
Stock repurchased and retired (in shares)		(129)
Balance at Mar. 31, 2019	262,546	$ 208	4,346	257,992
Balance (in shares) at Mar. 31, 2019		52,099
Balance at Dec. 31, 2019	290,140	$ 208	3,631	286,301
Balance (in shares) at Dec. 31, 2019		52,079
Net income	21,853			21,853
Stock options exercised and restricted stock awards granted	4,497	$ 1	4,496
Stock options exercised and restricted stock awards granted (in shares)		212
Share-based compensation	2,351		2,351
Stock repurchased and retired	(12,518)	$ (1)	(10,478)	(2,039)
Stock repurchased and retired (in shares)		(247)
Balance at Mar. 31, 2020	$ 306,323	$ 208	$ 0	$ 306,115
Balance (in shares) at Mar. 31, 2020		52,044

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating Activities
Net income	$ 21,853	$ 8,757
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,002	5,914
Amortization of debt issuance costs	10	0
Provision for losses on accounts receivable, net of adjustments	294	115
Provision for excess and obsolete inventories	(274)	357
Share-based compensation	2,351	5,407
(Gain) loss on disposition of assets	(62)	284
Foreign currency transaction loss (gain)	51	(16)
Interest income on note receivable	(6)	(6)
Deferred	(167)	909
Changes in assets and liabilities:
Accounts receivable	(2,789)	(4,725)
Income taxes	772	1,432
Inventories	1,020	2,678
Prepaid expenses and other	(670)	(561)
Accounts payable	2,742	(5,730)
Deferred revenue	229	25
Accrued liabilities	6,241	73
Net cash provided by operating activities	37,597	14,913
Investing Activities
Capital expenditures	(21,877)	(8,772)
Proceeds from sale of property, plant and equipment	61	52
Principal payments from note receivable	12	17
Net cash used in investing activities	(21,804)	(8,703)
Financing Activities
Stock options exercised	4,497	4,010
Repurchase of stock	(11,565)	(4,483)
Employee taxes paid by withholding shares	(953)	(588)
Net cash used in financing activities	(8,021)	(1,061)
Net increase in cash, cash equivalents and restricted cash	7,772	5,149
Cash, cash equivalents and restricted cash, beginning of period	44,373	1,994
Cash, cash equivalents and restricted cash, end of period	$ 52,145	$ 7,143

General

General	3 Months Ended
	Mar. 31, 2020
Basis of Presentation and Significant Accounting Policies [Abstract]
General	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”). Our financial statements consolidate all of our affiliated entities in which we have a controlling financial interest. Because we hold certain rights that give us the power to direct the activities of two variable interest entities ("VIEs") (Note 16) that most significantly impact the VIEs economic performance, combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in those VIEs. 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, 2019 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, 2019. All intercompany balances and transactions have been eliminated in consolidation. We are engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils and controls. 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, 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, 2019. Fair Value Measurements We adopted ASU No. 2018-13, Fair Value Measurements (Topic 820) , as amended, as of January 1, 2020. The ASU includes additional disclosure requirements for unrealized gains and losses for Level 3 fair value measurements and significant observable inputs used to develop Level 3 fair value measurements. There was not a material impact to financial statements upon adoption. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels: • Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date. • Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means. • Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated fair values of property, plant and equipment, intangible assets and goodwill acquired in a business combination. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability. Intangible Assets Our intangible assets include various trademarks, service marks and technical knowledge acquired in our February 2018 business combination. We amortize our intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review. Goodwill Goodwill represents the excess of the consideration paid for the acquired businesses, in our February 2018 business combination, over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill at March 31, 2020 is deductible for income tax purposes. Goodwill is not amortized, but instead is evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant. 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 ("ASC"). 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 December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes . The ASU includes simplification of accounting for income taxes for franchise taxes, step up in tax basis for goodwill as part of a business combination and interim reporting of enacted changes in tax laws. The ASU is effective for the Company beginning after December 15, 2020. We do not expect ASU 2019-12 will have a material effect on our consolidated financial statements and notes thereto.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregated net sales by major source: Three months ended 2020 2019 (in thousands) Rooftop Units $ 110,830 $ 88,343 Condensing Units 4,498 4,050 Air Handlers 6,247 5,594 Outdoor Mechanical Rooms 915 482 Water Source Heat Pumps 3,703 5,844 Part Sales 6,513 6,490 Other 4,777 3,019 Net Sales $ 137,483 $ 113,822 Disaggregated units sold by major source: Three months ended 2020 2019 Rooftop Units 4,061 3,762 Condensing Units 408 394 Air Handlers 510 580 Outdoor Mechanical Rooms 10 11 Water Source Heat Pumps 1,617 2,289 Total Units 6,606 7,036 The Company recognizes revenue when it satisfies the performance obligation in its contracts. Most of the Company’s products are highly customized, cannot be resold to other customers and the cost of rework to be resold is not economical. The Company has a formal cancellation policy and generally does not accept returns on these units. As a result, many of the Company’s products do not have an alternative use and therefore, for these products we recognize revenue over the time it takes to produce the unit. For all other products that are part sales or standardized units, we satisfy the performance obligation when the control is passed to the customer, generally at time of shipment. 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, the Company presents 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 $12.6 million and $11.5 million for the three months ended March 31, 2020 and 2019, respectively. The Company also sells extended warranties on parts for various lengths of time ranging from six 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.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Leases We adopted ASU No. 2016-02, Leases (Topic 842) , as amended, as of January 1, 2019, using the transition method, which becomes effective upon the date of adoption. The transition method allows entities to initially apply the new leases standard at the adoption date (January 1, 2019) and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We have also elected the short-term lease measurement and recognition exemption which does not require balance sheet presentation for short-term leases. The Company historically does not enter into numerous or material lease agreements to support its manufacturing operations. Furthermore, any lease agreements entered into are usually less than a year and for leases on non material assets such as warehouse vehicles and office equipment. Adoption of the new standard resulted in the recording of additional lease right of use assets and lease liabilities of approximately $1.8 million as of January 1, 2019, which mostly relates to the multi-year facility lease assumed in our February 2018 business combination. The cumulative-effect adjustment to the opening balance was immaterial to the consolidated financial statements as a whole. The standard did not materially impact our consolidated net earnings or cash flows. As of March 31, 2020, our right of use assets and lease liabilities are approximately $1.6 million.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable and the related allowance for doubtful accounts are as follows: March 31, December 31, 2019 (in thousands) Accounts receivable $ 70,541 $ 67,752 Less: Allowance for doubtful accounts (647) (353) Total, net $ 69,894 $ 67,399 Three months ended March 31, March 31, Allowance for doubtful accounts: (in thousands) Balance, beginning of period $ 353 $ 264 Provisions for losses on accounts receivables, net of adjustments 294 115 Balance, end of period $ 647 $ 379

Inventories

Inventories	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. 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. The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows: March 31, December 31, 2019 (in thousands) Raw materials $ 67,815 $ 68,842 Work in process 2,055 1,825 Finished goods 5,350 5,578 Total, gross 75,220 76,245 Less: Allowance for excess and obsolete inventories (2,365) (2,644) Total, net $ 72,855 $ 73,601 Three months ended March 31, March 31, Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 2,644 $ 1,210 Provisions for excess and obsolete inventories (274) 357 Inventories written off (5) — Balance, end of period $ 2,365 $ 1,567

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Our intangible assets consist of the following: March 31, December 31, 2019 (in thousands) Intellectual property $ 700 $ 700 Less: Accumulated amortization (487) (428) Total, net $ 213 $ 272 Amortization expense recorded in cost of sales is as follows: Three months ended March 31, March 31, (in thousands) Amortization expense $ 59 $ 59

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Three months ended March 31, March 31, Supplemental disclosures: (in thousands) Income taxes paid $ 3,024 $ 353 Non-cash investing and financing activities: Non-cash capital expenditures $ (1,000) $ 1,068

Warranties

Warranties	3 Months Ended
	Mar. 31, 2020
Guarantees [Abstract]
Warranties	Warranties The Company has product warranties with various terms ranging from one year from the date of first use or 18 months for parts to 25 years for certain heat exchangers. The Company has an obligation to replace parts 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 March 31, March 31, Warranty accrual: (in thousands) Balance, beginning of period $ 12,652 $ 11,421 Payments made (1,177) (1,106) Provisions 1,465 1,109 Balance, end of period $ 12,940 $ 11,424 Warranty expense: $ 1,465 $ 1,109

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2020
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities were comprised of the following: March 31, December 31, 2019 (in thousands) Warranty $ 12,940 $ 12,652 Due to representatives 13,123 11,538 Payroll 6,460 5,058 Profit sharing 3,167 1,721 Worker's compensation 480 522 Medical self-insurance 1,066 707 Customer prepayments 2,256 4,627 Employee 401(k) profit sharing 1,450 — Donations 354 354 Income tax payable 2,346 — Employee vacation time 4,017 3,804 Other 3,025 3,286 Total $ 50,684 $ 44,269

Revolving Credit Facility

Revolving Credit Facility	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Revolving Credit Facility	Revolving Credit Facility Our revolving credit facility, as amended, ("BOK Revolver") provides for maximum borrowings of $30.0 million, which is provided by BOKF, NA dba Bank of Oklahoma (“Bank of Oklahoma”). Under the line of credit, there is one standby letter of credit totaling $1.7 million. Borrowings available under the revolving credit facility at March 31, 2020 were $28.3 million. Interest on borrowings is payable monthly at LIBOR plus 2.0%. No fees are associated with the unused portion of the committed amount. We had no outstanding balance under the revolving credit facility at March 31, 2020 and December 31, 2019. The revolving credit facility expires on July 26, 2021. As of March 31, 2020, we were in compliance with our financial covenants. These covenants require that we meet certain parameters related to our tangible net worth and total liabilities to tangible net worth ratio. At March 31, 2020, our tangible net worth was $306.3 million and met the requirement of being at or above $175.0 million. Our total liabilities to tangible net worth ratio was 0.3 to 1, and met the requirement of not being above 2 to 1.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision (benefit) for income taxes consists of the following: Three months ended March 31, March 31, (in thousands) Current $ 6,143 $ 1,786 Deferred (167) 909 $ 5,976 $ 2,695 The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before the provision for income taxes. The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows: Three months ended March 31, March 31, Federal statutory rate 21.0 % 21.0 % State income taxes, net of Federal benefit 5.2 6.1 Excess tax benefits (3.8) (2.7) Other (0.9) (0.9) Effective tax rate 21.5 % 23.5 % The Company's estimated annual 2020 effective tax rate, excluding discrete events, is approximately 25%. We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. income tax examinations for tax years 2016 to present, and to non-U.S. income tax examinations for the tax years 2015 to present. In addition, we are subject to state and local income tax examinations for the tax years 2015 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. Coronavirus Aid, Relief, and Economic Security Act The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020, and includes a retroactive correction to the 2017 Tax Cuts and Jobs Act that allows for much faster depreciation of qualified improvement property that is placed in service after December 31, 2017. The retroactive correction allows for 100% first-year bonus depreciation for qualified improvement property placed in service in the tax years ended 2018 to 2022. Alternatively, companies can depreciate qualified improvement property placed in service during the tax year ended 2018 and beyond over 15 years using the straight-line method. Amending a prior period return to claim 100% first-year bonus depreciation for qualified improvement property placed in service in those years could result in a net operating loss that can be carried back to a prior tax year to recover taxes paid in that prior year.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 3.3 million shares that could be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards, in addition to the shares from the previous plan, the 1992 Plan. Since inception of the LTIP, non-qualified stock options and restricted stock awards have been granted with a five years vesting schedule. Under the LTIP, the exercise price of shares granted could not be less than 100% of the fair market value at the date of the grant. On May 24, 2016, our stockholders adopted the 2016 Long-Term Incentive Plan ("2016 Plan") which provides for approximately 6.4 million shares, comprised of 3.4 million new shares provided for under the 2016 Plan, approximately 0.4 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, and an additional 2.6 million shares that were approved by the stockholders on May 15, 2018. Under the 2016 Plan, shares can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance awards, dividend equivalent rights, and other awards. Under the 2016 Plan, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The 2016 Plan is administered by the Compensation Committee of the Board of Directors or such other committee of the Board of Directors as is designated by the Board of Directors (the “Committee”). Membership on the Committee is limited to independent directors. The Committee may delegate certain duties to one or more officers of the Company as provided in the 2016 Plan. The Committee will determine the persons to whom awards are to be made, determine the type, size and terms of awards, interpret the 2016 Plan, establish and revise rules and regulations relating to the 2016 Plan and make any other determinations that it believes necessary for the administration of the 2016 Plan. Options The total pre-tax compensation cost related to unvested stock options not yet recognized as of March 31, 2020 is $28.3 million and is expected to be recognized over a weighted average period of 3.6 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 three months ended March 31, 2020 and 2019 using a Black Scholes-Merton Model: Three months ended March 31, 2020 March 31, 2019 Directors and Officers: Expected dividend rate $0.32 $0.32 Expected volatility 31.08% 29.54% Risk-free interest rate 0.70% 2.40% Expected life (in years) 5.0 5.0 Employees: Expected dividend rate $0.32 $0.32 Expected volatility 31.07% 29.54% Risk-free interest rate 0.71% 2.40% Expected life (in years) 5.0 5.0 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 March 31, 2020: Range of Number Weighted Weighted Intrinsic Value ( in thousands ) $ 7.18 - $ 36.95 677,936 6.09 $ 28.34 $ 13,542 $ 37.00 - $ 40.87 6,418 7.95 38.20 65 $ 41.37 - $ 57.14 339,922 8.84 41.38 2,361 Total 1,024,276 7.01 $ 32.73 $ 15,968 The following is a summary of stock options vested and exercisable as of March 31, 2019: Range of Number Weighted Weighted Intrinsic Value ( in thousands ) $ 6.13 - $ 33.20 496,465 6.11 $ 22.56 $ 11,727 $ 33.40 - $ 40.87 187,024 8.28 35.53 1,991 $ 41.37 - $ 46.18 — — — — Total 683,489 6.70 $ 26.11 $ 13,718 A summary of stock option activity under the plans is as follows: Stock Options Shares Weighted Outstanding at December 31, 2019 3,627,047 $ 36.32 Granted 939,600 44.32 Exercised (154,335) 29.13 Forfeited or Expired (38,316) 38.86 Outstanding at March 31, 2020 4,373,996 $ 38.27 Exercisable at March 31, 2020 1,024,276 $ 32.73 The total intrinsic value of options exercised during the three months ended March 31, 2020 and 2019 was $3.9 million and $2.1 million, respectively. The cash received from options exercised during the three months ended March 31, 2020 and 2019 was $4.5 million and $4.0 million, respectively. The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows. Restricted Stock 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. At March 31, 2020, unrecognized compensation cost related to unvested restricted stock awards was approximately $6.5 million, which is expected to be recognized over a weighted average period of 3.1 years. A summary of the unvested restricted stock awards is as follows: Restricted Stock Shares Weighted Unvested at December 31, 2019 267,484 $ 34.42 Granted 58,840 42.65 Vested (62,292) 30.71 Forfeited (1,120) 35.88 Unvested at March 31, 2020 262,912 $ 37.13 Share-Based Compensation A summary of share-based compensation is as follows: Three months ended March 31, March 31, Grant date fair value of awards during the period: (in thousands) Options $ 10,905 $ 19,944 Restricted stock 2,510 3,708 Total $ 13,415 $ 23,652 Share-based compensation expense: Options $ 1,632 $ 4,622 Restricted stock 719 785 Total $ 2,351 $ 5,407 Income tax benefit/(deficiency) related to share-based compensation: Options $ 731 $ 243 Restricted stock 334 151 Total $ 1,065 $ 394 Share-based compensation expense is recognized on a straight-line basis over the service period of the related share-based compensation award. Stock options and restricted stock awards, granted to employees, vest at a rate of 20% per year. Restricted stock awards granted to directors historically vest one-third each year or, if granted on or after May 2019, vest over the shorter of directors' remaining elected term or one-third each year. Forfeitures are accounted for as they occur. one

Employee Benefits

Employee Benefits	3 Months Ended
	Mar. 31, 2020
Retirement Benefits [Abstract]
Employee Benefits	Employee Benefits Defined Contribution Plan - 401(k ) We sponsor a defined contribution plan (the “Plan”). Eligible employees may make contributions in accordance with the Plan and IRS guidelines. In addition to the traditional 401(k), eligible employees are given the option of making an after-tax contribution to a Roth 401(k) or a combination of both. The Plan provides for automatic enrollment and for an automatic increase to the deferral percentage at January 1st of each year and each year thereafter. Eligible employees are automatically enrolled in the Plan at a 6% deferral rate and currently contributing employees deferral rates will be increased to 6% unless their current rate is above 6% or the employee elects to decline the automatic enrollment or increase. Administrative expenses are paid for by Plan participants. The Company paid no administrative expenses during the three months ended March 31, 2020 and 2019. The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions. Three months ended March 31, March 31, (in thousands) Contributions made to the defined contribution plan $ 2,450 $ 1,360 Profit Sharing Bonus Plan We maintain a discretionary profit sharing bonus plan under which approximately 10% of pre-tax profit is paid to eligible employees on a quarterly basis in order to reward employee productivity. Eligible employees are regular full-time employees who are actively employed and working on the first and last days of the calendar quarter and who were employed full-time for at least three full months prior to the beginning of the calendar quarter, excluding the Company's senior leadership team. Three months ended March 31, March 31, (in thousands) Profit sharing bonus plan expense $ 3,167 $ 1,306 Employee Medical Plan We self-insure for our employees' health insurance. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plan. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. In addition, the Company matches 175% of a participating employee's allowed contributions to a qualified health saving account to assist employees with our heath insurance plan deductibles. Three months ended March 31, March 31, (in thousands) Medical claim payments $ 1,875 $ 1,520 Health saving account payments 874 720

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
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. The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, March 31, Numerator: (in thousands, except share and per share data) Net income $ 21,853 $ 8,757 Denominator: Basic weighted average shares 52,071,839 51,992,150 Effect of dilutive stock options and restricted stock 799,580 377,510 Diluted weighted average shares 52,871,419 52,369,660 Earnings per share: Basic $ 0.42 $ 0.17 Diluted $ 0.41 $ 0.17 Anti-dilutive shares: Shares 253,437 1,927,727

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchases The Board has authorized three stock repurchase programs for the Company. The Company may purchase shares on the open market from time to time, up to a total of 5.7 million shares. The Board must authorize the timing and amount of these purchases and all repurchases are in accordance with the rules and regulations of the SEC allowing the Company to repurchase shares from the open market. Our open market repurchase programs are as follows: Agreement Execution Date Authorized Repurchase $ Expiration Date May 16, 2018 1 $15 million March 1, 2019 March 5, 2019 1 $20 million March 4, 2020 March 13, 2020 $20 million ** 2 1 The 2018 and 2019 purchase authorizations were executed under 10b5-1 programs. 2 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board. The Company also has a stock repurchase arrangement by which employee-participants in our 401(k) savings and investment plan are entitled to have shares in 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 employee-participants. Lastly, the Company repurchases shares of AAON, Inc. stock from certain of its directors and employees for payment of statutory tax withholdings on stock transactions. All other repurchases from directors or employees are contingent upon Board approval. All repurchases are done at current market prices. Our repurchase activity is as follows: Three months ended 2020 2019 (in thousands, except share and per share data) Program Shares Total $ $ per share Shares Total $ $ per share Open market 103,689 $ 4,987 $ 48.10 5,799 $ 200 $ 34.46 401(k) 123,672 6,578 53.19 107,000 4,283 40.03 Directors and employees 19,099 953 49.90 15,705 588 37.44 Total 246,460 $ 12,518 $ 50.79 128,504 $ 5,071 $ 39.46 Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to date (in thousands, except share and per share data) Program Shares Total $ $ per share Open market 4,205,255 $ 74,793 $ 17.79 401(k) 7,591,411 126,505 16.66 Directors and employees 2,001,028 20,535 10.26 Total 13,797,694 $ 221,833 $ 16.08 Subsequent to March 31, 2020 and through May 5, 2020, the Company repurchased 23,305 shares for $1.1 million from our 401(k) savings and investment plan. Dividends At the discretion of the Board, we pay semi-annual cash dividends. Board approval is required to determine the date of declaration and amount for each semi-annual dividend payment. Our recent dividends are as follows: Declaration Date Record Date Payment Date Dividend per Share May 20, 2019 June 3, 2019 July 1, 2019 $0.16 November 6, 2019 November 27, 2019 December 18, 2019 $0.16

New Market Tax Credit

New Market Tax Credit	3 Months Ended
	Mar. 31, 2020
New Market Tax Credit [Abstract]
New Market Tax Credit	New Markets Tax Credit On October 24, 2019, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “Project”). In connection with the NMTC transaction, the Company received a $23.0 million NMTC allocation for the Project and secured low interest financing and the potential for future debt forgiveness related to the Project. Upon closing of the NMTC transaction, the Company provided an aggregate of approximately $15.9 million to the Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $15.9 million in proceeds plus capital contributed from the Investor was used to make an aggregate $22.5 million loan to a subsidiary of the Company. This financing arrangement is secured by equipment at the Company's Longview, Texas facilities and a guarantee from the Company, including an unconditional guarantee of NMTCs. This transaction also includes a put/call feature that either of which can be exercised at the end of the seven-year compliance period. The Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The Investor's interest of $6.3 million is recorded in New market tax credit obligation on the consolidated balance sheet. The Company incurred approximately $0.3 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction. The Investor is subject to 100 percent recapture of the NMTC it receives for a period of seven years, as provided in the Internal Revenue Code and applicable U.S. Treasury regulations in the event that the financing facility of the Borrower under the transaction (AAON Coil Products, Inc.) becomes ineligible for NMTC treatment per the Internal Revenue Code requirements. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Noncompliance with applicable requirements could result in the Investor’s projected tax benefits not being realized and, therefore, require the Company to indemnify the Investor for any loss or recapture of the NMTC related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. The Company does not anticipate any credit recapture will be required in connection with this financing arrangement. The Investor and its majority owned community development entity are considered VIEs and the Company is the primary beneficiary of the VIEs. Because the Company is the primary beneficiary of the VIEs, they have been included in the consolidated financial statements. There are no other assets, liabilities or transaction in these VIEs outside of the financing transactions executed as part of the NMTC arrangement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
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 and/or cash flows. We are occasionally party to short-term, cancellable and occasionally 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 derivative instruments because they meet the normal purchase and normal sales exemption. At March 31, 2020, we had one material contractual purchase obligation for approximately $1.8 million that expires in December 2020.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Parties	Related PartiesThe Company purchases some supplies from an entity controlled by the Company’s CEO. The Company sometimes makes sales to the CEO for parts. Additionally, the Company sells units to an entity owned by a member of the President's immediate family. This entity is also one of the Company’s Representatives and as such, the Company makes payments to the entity for third party products. All related party transactions are made on standard Company terms. The following is a summary of transactions and balance with affiliates: Three months ended March 31, March 31, (in thousands) Sales to affiliates $ 653 $ 50 Payments to affiliates 59 127 March 31, December 31, (in thousands) Due from affiliates $ 478 $ 22 Due to affiliates — 2

Segments

Segments	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segments	Segments The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. Sales of units represent the selling price of our units plus freight and other miscellaneous charges less any returns and allowances. Parts include sales of purchased and fabricated parts including our coils along with the related freight and less any returns and allowances. The “Other” category in the table below includes certain sales cost and expenses that are not allocated to the reportable segments. Asset information by segment is not easily identifiable or reviewed by the chief operating decision maker. As such, this information is not included below. Three Months Ended 2020 2019 (in thousands) Sales Units $ 130,720 $ 107,068 Parts - External 6,880 6,911 Parts - Inter-segment 6,786 7,922 Other (117) (157) Eliminations (6,786) (7,922) Net sales $ 137,483 $ 113,822 Gross Profit Units $ 46,054 $ 26,385 Parts - External 3,177 3,669 Parts - Inter-segment (395) 677 Other (6,284) (4,624) Eliminations 395 (677) Net gross profit $ 42,947 $ 25,430

Error Correction

Error Correction	3 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Error Correction	Error Correction We have corrected herein our consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections . Error Correction Background During the preparation of the 2019 Annual Report on Form 10-K (filed on February 27, 2020) the Company noted errors in previously issued financial statements relating to share-based compensation expense for stock options and restricted stock awards held by retirement eligible employees and directors. As defined by our Long-Term Incentive Plans (Note 12), stock options and restricted stock awards are fully vested when an active employee or director meets certain retirement eligibility requirements. We have corrected the previously issued 2019 financial statements to recognize all share-based compensation, related to retirement eligible employees or directors, by the earlier of the grant date (if retirement eligible on grant date) or ratably from grant date to retirement eligible date. The corrected financial statements also include corrections for the tax effect of the share-based compensation corrections as well as the corrections' impact on our prior periods' employees profit sharing bonus plan (Note 13). Description of Tables The following tables represent our corrected consolidated statements of income, statements of stockholders' equity, and statements of cash flows for the three months ended March 31, 2019, as well as our corrected consolidated balance sheet at March 31, 2019. The values as previously reported for March 31, 2019 were derived from our Quarterly Report on Form 10-Q for the three month ended March 31, 2019 filed on May 2, 2019. Consolidated Statements of Income Three Months Ended March 31, 2019 Previously Reported Corrections As Corrected (in thousands, except share and per share data) Net sales $ 113,822 $ — $ 113,822 Cost of sales 88,029 363 (a) 88,392 Gross profit 25,793 (363) 25,430 Selling, general and administrative expenses 11,001 2,676 (b) 13,677 Loss (gain) on disposal of assets 284 — 284 Income from operations 14,508 (3,039) 11,469 Interest income, net 9 — 9 Other (expense) income, net (26) — (26) Income before taxes 14,491 (3,039) 11,452 Income tax provision 3,589 (894) (c) 2,695 Net income $ 10,902 $ (2,145) $ 8,757 Earnings per share: Basic $ 0.21 $ (0.04) $ 0.17 Diluted $ 0.21 $ (0.04) $ 0.17 Weighted average shares outstanding: Basic 51,992,150 — 51,992,150 Diluted 52,369,660 — 52,369,660 Balance Sheet Data (at end of period): Current assets $ 146,798 $ (287) (c) $ 146,511 Total assets 319,525 (287) (c) 319,238 Current liabilities 44,000 (918) (d) 43,082 Deferred income taxes 12,713 (2,545) (c) 10,168 Other long-term liabilities 3,442 — 3,442 Total stockholders' equity $ 259,370 $ 3,176 (e) $ 262,546 (a) The share-based compensation correction to cost of sales for the quarter ended March 31, 2019 was approximately $0.4 million. (b) The share-based compensation correction to selling, general and administrative expenses for the quarter ended March 31, 2019 was approximately $3.0 million. Included in the correction to selling, general and administrative expenses is a correction to our employee profit sharing bonus plan (Note 13) of approximately $0.4 million for the quarter ended March 31, 2019. (c) The corrections to income tax receivable and deferred tax liability are the tax effect of the share-based compensation correction. (d) This is the cumulative reduction of our employee profit sharing bonus plan (Note 13) liability as a result of the share-based compensation correction. The prior period costs were recovered through our estimated 2019 fourth quarter payment which was paid in early 2020. (e) This is the cumulative effect on stockholders' equity as result of the share-based compensation correction. See table below for a descriptions of the changes in stockholders' equity in the consolidated statements of stockholders' equity for the quarter ended March 31, 2019. Consolidated Statements of Stockholders’ Equity Common Stock Paid-in Retained Shares Amount Capital Earnings Total As Previously Reported (in thousands) Balance at December 31, 2018 51,991 $ 208 $ — $ 247,291 $ 247,499 Net income — — — 10,902 10,902 Stock options exercised and restricted 237 1 4,009 — 4,010 stock awards granted Share-based compensation — — 2,030 — 2,030 Stock repurchased and retired (129) (1) (5,070) — (5,071) Balance at March 31, 2019 52,099 208 969 258,193 259,370 Correction Impacts Balance at December 31, 2018 — — — 1,944 1,944 Net income — — — (2,145) (2,145) Stock options exercised and restricted — — — — — stock awards granted Share-based compensation — — 3,377 — 3,377 Stock repurchased and retired — — — — — Balance at March 31, 2019 — — 3,377 (201) 3,176 As Corrected Balance at December 31, 2018 51,991 $ 208 $ — $ 249,235 $ 249,443 Net income — — — 8,757 8,757 Stock options exercised and restricted 237 1 4,009 — 4,010 stock awards granted Share-based compensation — — 5,407 — 5,407 Stock repurchased and retired (129) (1) (5,070) — (5,071) Balance at March 31, 2019 52,099 $ 208 $ 4,346 $ 257,992 $ 262,546 See descriptions of changes to net income in the consolidated statement of income for the three months ended March 31, 2019 in the table above. Consolidated Statements of Cash Flows Three Months Ended March 31, 2019 Previously Reported Corrections As Corrected Operating Activities (in thousands) Net income $ 10,902 $ (2,145) $ 8,757 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,914 — 5,914 Provision for losses on accounts receivable, net of adjustments 115 — 115 Provision for excess and obsolete inventories 357 — 357 Share-based compensation 2,030 3,377 5,407 Loss (gain) on disposition of assets 284 — 284 Foreign currency transaction (gain) loss (16) — (16) Interest income on note receivable (6) — (6) Deferred income taxes 1,887 (978) 909 Changes in assets and liabilities: Accounts receivable (4,725) — (4,725) Income taxes 1,348 84 1,432 Inventories 2,678 — 2,678 Prepaid expenses and other (561) — (561) Accounts payable (5,730) — (5,730) Deferred revenue 25 — 25 Accrued liabilities and donations 411 (338) 73 Net cash provided by operating activities 14,913 — 14,913 Investing Activities Capital expenditures (8,772) — (8,772) Proceeds from sale of property, plant and equipment 52 — 52 Principal payments from note receivable 17 — 17 Net cash used in investing activities (8,703) — (8,703) Financing Activities Stock options exercised 4,010 — 4,010 Repurchase of stock (4,483) — (4,483) Employee taxes paid by withholding shares (588) — (588) Net cash used in financing activities (1,061) — (1,061) Net decrease in cash and cash equivalents 5,149 — 5,149 Cash and cash equivalents, beginning of year 1,994 — 1,994 Cash and cash equivalents, end of year $ 7,143 $ — $ 7,143 See descriptions of changes to net income and the balance sheet in the tables above.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventIn March 2020, the World Health Organization characterized the coronavirus ("COVID-19") a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The rapid spread of the pandemic and the continuously evolving responses to combat it have had an increasingly negative impact on the global economy. In view of the rapidly changing business environment, unprecedented market volatility and heightened degree of uncertainty resulting from COVID-19, we are currently unable to fully determine its future impact on our business. However, we are monitoring the progression of the pandemic and its potential effect on our financial position, results of operations and cash flows.On April 22, 2020, our plant and office facilities in Tulsa, Oklahoma experienced hail related weather damage and we have filed a property insurance claim which carries a $500,000 deductible. We did not experience any operational interruption as a result of this weather event.In May 2020, we entered into three material purchase agreements that total approximately $5.1 million. The purchase agreement periods are from September 2020 to January 2021.

General (Policies)

General (Policies)	3 Months Ended
	Mar. 31, 2020
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, 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.
Fair Value Measurements	Fair Value Measurements We adopted ASU No. 2018-13, Fair Value Measurements (Topic 820) , as amended, as of January 1, 2020. The ASU includes additional disclosure requirements for unrealized gains and losses for Level 3 fair value measurements and significant observable inputs used to develop Level 3 fair value measurements. There was not a material impact to financial statements upon adoption. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels: • Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date. • Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means. • Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated fair values of property, plant and equipment, intangible assets and goodwill acquired in a business combination. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability.
Intangible Assets	Intangible AssetsOur intangible assets include various trademarks, service marks and technical knowledge acquired in our February 2018 business combination. We amortize our intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review.
Goodwill	Goodwill Goodwill represents the excess of the consideration paid for the acquired businesses, in our February 2018 business combination, over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill at March 31, 2020 is deductible for income tax purposes. Goodwill is not amortized, but instead is evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant.
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 ("ASC"). 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 December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes . The ASU includes simplification of accounting for income taxes for franchise taxes, step up in tax basis for goodwill as part of a business combination and interim reporting of enacted changes in tax laws. The ASU is effective for the Company beginning after December 15, 2020. We do not expect ASU 2019-12 will have a material effect on our consolidated financial statements and notes thereto.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	Disaggregated net sales by major source: Three months ended 2020 2019 (in thousands) Rooftop Units $ 110,830 $ 88,343 Condensing Units 4,498 4,050 Air Handlers 6,247 5,594 Outdoor Mechanical Rooms 915 482 Water Source Heat Pumps 3,703 5,844 Part Sales 6,513 6,490 Other 4,777 3,019 Net Sales $ 137,483 $ 113,822 Disaggregated units sold by major source: Three months ended 2020 2019 Rooftop Units 4,061 3,762 Condensing Units 408 394 Air Handlers 510 580 Outdoor Mechanical Rooms 10 11 Water Source Heat Pumps 1,617 2,289 Total Units 6,606 7,036

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Accounts Receivable	March 31, December 31, 2019 (in thousands) Accounts receivable $ 70,541 $ 67,752 Less: Allowance for doubtful accounts (647) (353) Total, net $ 69,894 $ 67,399
Allowance for Doubtful Accounts	Three months ended March 31, March 31, Allowance for doubtful accounts: (in thousands) Balance, beginning of period $ 353 $ 264 Provisions for losses on accounts receivables, net of adjustments 294 115 Balance, end of period $ 647 $ 379

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows: March 31, December 31, 2019 (in thousands) Raw materials $ 67,815 $ 68,842 Work in process 2,055 1,825 Finished goods 5,350 5,578 Total, gross 75,220 76,245 Less: Allowance for excess and obsolete inventories (2,365) (2,644) Total, net $ 72,855 $ 73,601
Inventories (Allowance)	Three months ended March 31, March 31, Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 2,644 $ 1,210 Provisions for excess and obsolete inventories (274) 357 Inventories written off (5) — Balance, end of period $ 2,365 $ 1,567

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Our intangible assets consist of the following: March 31, December 31, 2019 (in thousands) Intellectual property $ 700 $ 700 Less: Accumulated amortization (487) (428) Total, net $ 213 $ 272
Schedule of Amortization Expense	Amortization expense recorded in cost of sales is as follows: Three months ended March 31, March 31, (in thousands) Amortization expense $ 59 $ 59

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Three months ended March 31, March 31, Supplemental disclosures: (in thousands) Income taxes paid $ 3,024 $ 353 Non-cash investing and financing activities: Non-cash capital expenditures $ (1,000) $ 1,068

Warranties (Tables)

Warranties (Tables)	3 Months Ended
	Mar. 31, 2020
Guarantees [Abstract]
Warranty	Changes in the warranty accrual are as follows: Three months ended March 31, March 31, Warranty accrual: (in thousands) Balance, beginning of period $ 12,652 $ 11,421 Payments made (1,177) (1,106) Provisions 1,465 1,109 Balance, end of period $ 12,940 $ 11,424 Warranty expense: $ 1,465 $ 1,109

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities were comprised of the following: March 31, December 31, 2019 (in thousands) Warranty $ 12,940 $ 12,652 Due to representatives 13,123 11,538 Payroll 6,460 5,058 Profit sharing 3,167 1,721 Worker's compensation 480 522 Medical self-insurance 1,066 707 Customer prepayments 2,256 4,627 Employee 401(k) profit sharing 1,450 — Donations 354 354 Income tax payable 2,346 — Employee vacation time 4,017 3,804 Other 3,025 3,286 Total $ 50,684 $ 44,269

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The provision (benefit) for income taxes consists of the following: Three months ended March 31, March 31, (in thousands) Current $ 6,143 $ 1,786 Deferred (167) 909 $ 5,976 $ 2,695
Schedule of Effective Income Tax Rate Reconciliation	The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows: Three months ended March 31, March 31, Federal statutory rate 21.0 % 21.0 % State income taxes, net of Federal benefit 5.2 6.1 Excess tax benefits (3.8) (2.7) Other (0.9) (0.9) Effective tax rate 21.5 % 23.5 %

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [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 three months ended March 31, 2020 and 2019 using a Black Scholes-Merton Model: Three months ended March 31, 2020 March 31, 2019 Directors and Officers: Expected dividend rate $0.32 $0.32 Expected volatility 31.08% 29.54% Risk-free interest rate 0.70% 2.40% Expected life (in years) 5.0 5.0 Employees: Expected dividend rate $0.32 $0.32 Expected volatility 31.07% 29.54% Risk-free interest rate 0.71% 2.40% Expected life (in years) 5.0 5.0
Summary of Stock Options Outstanding	The following is a summary of stock options vested and exercisable as of March 31, 2020: Range of Number Weighted Weighted Intrinsic Value ( in thousands ) $ 7.18 - $ 36.95 677,936 6.09 $ 28.34 $ 13,542 $ 37.00 - $ 40.87 6,418 7.95 38.20 65 $ 41.37 - $ 57.14 339,922 8.84 41.38 2,361 Total 1,024,276 7.01 $ 32.73 $ 15,968 The following is a summary of stock options vested and exercisable as of March 31, 2019: Range of Number Weighted Weighted Intrinsic Value ( in thousands ) $ 6.13 - $ 33.20 496,465 6.11 $ 22.56 $ 11,727 $ 33.40 - $ 40.87 187,024 8.28 35.53 1,991 $ 41.37 - $ 46.18 — — — — Total 683,489 6.70 $ 26.11 $ 13,718
Summary of Stock Option Activity	A summary of stock option activity under the plans is as follows: Stock Options Shares Weighted Outstanding at December 31, 2019 3,627,047 $ 36.32 Granted 939,600 44.32 Exercised (154,335) 29.13 Forfeited or Expired (38,316) 38.86 Outstanding at March 31, 2020 4,373,996 $ 38.27 Exercisable at March 31, 2020 1,024,276 $ 32.73
Summary of Unvested Restricted Stock Awards	A summary of the unvested restricted stock awards is as follows: Restricted Stock Shares Weighted Unvested at December 31, 2019 267,484 $ 34.42 Granted 58,840 42.65 Vested (62,292) 30.71 Forfeited (1,120) 35.88 Unvested at March 31, 2020 262,912 $ 37.13
Summary of Share-Based Compensation Expense	A summary of share-based compensation is as follows: Three months ended March 31, March 31, Grant date fair value of awards during the period: (in thousands) Options $ 10,905 $ 19,944 Restricted stock 2,510 3,708 Total $ 13,415 $ 23,652 Share-based compensation expense: Options $ 1,632 $ 4,622 Restricted stock 719 785 Total $ 2,351 $ 5,407 Income tax benefit/(deficiency) related to share-based compensation: Options $ 731 $ 243 Restricted stock 334 151 Total $ 1,065 $ 394

Employee Benefits (Tables)

Employee Benefits (Tables)	3 Months Ended
	Mar. 31, 2020
Retirement Benefits [Abstract]
Schedule of Contributions Made to Defined Contribution Plan	The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions. Three months ended March 31, March 31, (in thousands) Contributions made to the defined contribution plan $ 2,450 $ 1,360
Schedule of Profit Sharing Bonus Plan	We maintain a discretionary profit sharing bonus plan under which approximately 10% of pre-tax profit is paid to eligible employees on a quarterly basis in order to reward employee productivity. Eligible employees are regular full-time employees who are actively employed and working on the first and last days of the calendar quarter and who were employed full-time for at least three full months prior to the beginning of the calendar quarter, excluding the Company's senior leadership team. Three months ended March 31, March 31, (in thousands) Profit sharing bonus plan expense $ 3,167 $ 1,306
Schedule of Employee Medical Plan	We self-insure for our employees' health insurance. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plan. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. In addition, the Company matches 175% of a participating employee's allowed contributions to a qualified health saving account to assist employees with our heath insurance plan deductibles. Three months ended March 31, March 31, (in thousands) Medical claim payments $ 1,875 $ 1,520 Health saving account payments 874 720

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, March 31, Numerator: (in thousands, except share and per share data) Net income $ 21,853 $ 8,757 Denominator: Basic weighted average shares 52,071,839 51,992,150 Effect of dilutive stock options and restricted stock 799,580 377,510 Diluted weighted average shares 52,871,419 52,369,660 Earnings per share: Basic $ 0.42 $ 0.17 Diluted $ 0.41 $ 0.17 Anti-dilutive shares: Shares 253,437 1,927,727

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Schedule of Market Repurchase	Our open market repurchase programs are as follows: Agreement Execution Date Authorized Repurchase $ Expiration Date May 16, 2018 1 $15 million March 1, 2019 March 5, 2019 1 $20 million March 4, 2020 March 13, 2020 $20 million ** 2 1 The 2018 and 2019 purchase authorizations were executed under 10b5-1 programs. 2 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board.
Schedule of Share Repurchases	Our repurchase activity is as follows: Three months ended 2020 2019 (in thousands, except share and per share data) Program Shares Total $ $ per share Shares Total $ $ per share Open market 103,689 $ 4,987 $ 48.10 5,799 $ 200 $ 34.46 401(k) 123,672 6,578 53.19 107,000 4,283 40.03 Directors and employees 19,099 953 49.90 15,705 588 37.44 Total 246,460 $ 12,518 $ 50.79 128,504 $ 5,071 $ 39.46 Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to date (in thousands, except share and per share data) Program Shares Total $ $ per share Open market 4,205,255 $ 74,793 $ 17.79 401(k) 7,591,411 126,505 16.66 Directors and employees 2,001,028 20,535 10.26 Total 13,797,694 $ 221,833 $ 16.08
Schedule of Dividends Payable	Our recent dividends are as follows: Declaration Date Record Date Payment Date Dividend per Share May 20, 2019 June 3, 2019 July 1, 2019 $0.16 November 6, 2019 November 27, 2019 December 18, 2019 $0.16

Related Parties (Tables)

Related Parties (Tables)	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following is a summary of transactions and balance with affiliates: Three months ended March 31, March 31, (in thousands) Sales to affiliates $ 653 $ 50 Payments to affiliates 59 127 March 31, December 31, (in thousands) Due from affiliates $ 478 $ 22 Due to affiliates — 2

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. Sales of units represent the selling price of our units plus freight and other miscellaneous charges less any returns and allowances. Parts include sales of purchased and fabricated parts including our coils along with the related freight and less any returns and allowances. The “Other” category in the table below includes certain sales cost and expenses that are not allocated to the reportable segments. Asset information by segment is not easily identifiable or reviewed by the chief operating decision maker. As such, this information is not included below. Three Months Ended 2020 2019 (in thousands) Sales Units $ 130,720 $ 107,068 Parts - External 6,880 6,911 Parts - Inter-segment 6,786 7,922 Other (117) (157) Eliminations (6,786) (7,922) Net sales $ 137,483 $ 113,822 Gross Profit Units $ 46,054 $ 26,385 Parts - External 3,177 3,669 Parts - Inter-segment (395) 677 Other (6,284) (4,624) Eliminations 395 (677) Net gross profit $ 42,947 $ 25,430

Error Correction (Tables)

Error Correction (Tables)	3 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Schedule of Error Corrections and Prior Period Adjustments	The following tables represent our corrected consolidated statements of income, statements of stockholders' equity, and statements of cash flows for the three months ended March 31, 2019, as well as our corrected consolidated balance sheet at March 31, 2019. The values as previously reported for March 31, 2019 were derived from our Quarterly Report on Form 10-Q for the three month ended March 31, 2019 filed on May 2, 2019. Consolidated Statements of Income Three Months Ended March 31, 2019 Previously Reported Corrections As Corrected (in thousands, except share and per share data) Net sales $ 113,822 $ — $ 113,822 Cost of sales 88,029 363 (a) 88,392 Gross profit 25,793 (363) 25,430 Selling, general and administrative expenses 11,001 2,676 (b) 13,677 Loss (gain) on disposal of assets 284 — 284 Income from operations 14,508 (3,039) 11,469 Interest income, net 9 — 9 Other (expense) income, net (26) — (26) Income before taxes 14,491 (3,039) 11,452 Income tax provision 3,589 (894) (c) 2,695 Net income $ 10,902 $ (2,145) $ 8,757 Earnings per share: Basic $ 0.21 $ (0.04) $ 0.17 Diluted $ 0.21 $ (0.04) $ 0.17 Weighted average shares outstanding: Basic 51,992,150 — 51,992,150 Diluted 52,369,660 — 52,369,660 Balance Sheet Data (at end of period): Current assets $ 146,798 $ (287) (c) $ 146,511 Total assets 319,525 (287) (c) 319,238 Current liabilities 44,000 (918) (d) 43,082 Deferred income taxes 12,713 (2,545) (c) 10,168 Other long-term liabilities 3,442 — 3,442 Total stockholders' equity $ 259,370 $ 3,176 (e) $ 262,546 (a) The share-based compensation correction to cost of sales for the quarter ended March 31, 2019 was approximately $0.4 million. (b) The share-based compensation correction to selling, general and administrative expenses for the quarter ended March 31, 2019 was approximately $3.0 million. Included in the correction to selling, general and administrative expenses is a correction to our employee profit sharing bonus plan (Note 13) of approximately $0.4 million for the quarter ended March 31, 2019. (c) The corrections to income tax receivable and deferred tax liability are the tax effect of the share-based compensation correction. (d) This is the cumulative reduction of our employee profit sharing bonus plan (Note 13) liability as a result of the share-based compensation correction. The prior period costs were recovered through our estimated 2019 fourth quarter payment which was paid in early 2020. (e) This is the cumulative effect on stockholders' equity as result of the share-based compensation correction. See table below for a descriptions of the changes in stockholders' equity in the consolidated statements of stockholders' equity for the quarter ended March 31, 2019. Consolidated Statements of Stockholders’ Equity Common Stock Paid-in Retained Shares Amount Capital Earnings Total As Previously Reported (in thousands) Balance at December 31, 2018 51,991 $ 208 $ — $ 247,291 $ 247,499 Net income — — — 10,902 10,902 Stock options exercised and restricted 237 1 4,009 — 4,010 stock awards granted Share-based compensation — — 2,030 — 2,030 Stock repurchased and retired (129) (1) (5,070) — (5,071) Balance at March 31, 2019 52,099 208 969 258,193 259,370 Correction Impacts Balance at December 31, 2018 — — — 1,944 1,944 Net income — — — (2,145) (2,145) Stock options exercised and restricted — — — — — stock awards granted Share-based compensation — — 3,377 — 3,377 Stock repurchased and retired — — — — — Balance at March 31, 2019 — — 3,377 (201) 3,176 As Corrected Balance at December 31, 2018 51,991 $ 208 $ — $ 249,235 $ 249,443 Net income — — — 8,757 8,757 Stock options exercised and restricted 237 1 4,009 — 4,010 stock awards granted Share-based compensation — — 5,407 — 5,407 Stock repurchased and retired (129) (1) (5,070) — (5,071) Balance at March 31, 2019 52,099 $ 208 $ 4,346 $ 257,992 $ 262,546 See descriptions of changes to net income in the consolidated statement of income for the three months ended March 31, 2019 in the table above. Consolidated Statements of Cash Flows Three Months Ended March 31, 2019 Previously Reported Corrections As Corrected Operating Activities (in thousands) Net income $ 10,902 $ (2,145) $ 8,757 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,914 — 5,914 Provision for losses on accounts receivable, net of adjustments 115 — 115 Provision for excess and obsolete inventories 357 — 357 Share-based compensation 2,030 3,377 5,407 Loss (gain) on disposition of assets 284 — 284 Foreign currency transaction (gain) loss (16) — (16) Interest income on note receivable (6) — (6) Deferred income taxes 1,887 (978) 909 Changes in assets and liabilities: Accounts receivable (4,725) — (4,725) Income taxes 1,348 84 1,432 Inventories 2,678 — 2,678 Prepaid expenses and other (561) — (561) Accounts payable (5,730) — (5,730) Deferred revenue 25 — 25 Accrued liabilities and donations 411 (338) 73 Net cash provided by operating activities 14,913 — 14,913 Investing Activities Capital expenditures (8,772) — (8,772) Proceeds from sale of property, plant and equipment 52 — 52 Principal payments from note receivable 17 — 17 Net cash used in investing activities (8,703) — (8,703) Financing Activities Stock options exercised 4,010 — 4,010 Repurchase of stock (4,483) — (4,483) Employee taxes paid by withholding shares (588) — (588) Net cash used in financing activities (1,061) — (1,061) Net decrease in cash and cash equivalents 5,149 — 5,149 Cash and cash equivalents, beginning of year 1,994 — 1,994 Cash and cash equivalents, end of year $ 7,143 $ — $ 7,143

General (Details)

General (Details)	Mar. 31, 2020numberOfVIEs
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of variable interest entities with directed activities	2

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregated Net Sales (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)unit	Mar. 31, 2019USD ($)unit
Disaggregation of Revenue [Line Items]
Net Sales	$ 137,483	$ 113,822
Rooftop Units
Disaggregation of Revenue [Line Items]
Net Sales	$ 110,830	$ 88,343
Total Units | unit	4,061,000	3,762,000
Condensing Units
Disaggregation of Revenue [Line Items]
Net Sales	$ 4,498	$ 4,050
Total Units | unit	408,000	394,000
Air Handlers
Disaggregation of Revenue [Line Items]
Net Sales	$ 6,247	$ 5,594
Total Units | unit	510,000	580,000
Outdoor Mechanical Rooms
Disaggregation of Revenue [Line Items]
Net Sales	$ 915	$ 482
Total Units | unit	10,000	11,000
Water Source Heat Pumps
Disaggregation of Revenue [Line Items]
Net Sales	$ 3,703	$ 5,844
Total Units | unit	1,617,000	2,289,000
Part Sales
Disaggregation of Revenue [Line Items]
Net Sales	$ 6,513	$ 6,490
Other
Disaggregation of Revenue [Line Items]
Net Sales	$ 4,777	$ 3,019
Total Units | unit	6,606,000	7,036,000

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Payments to representatives	$ 12.6	$ 11.5
Extended product warranties, minimum length	6 months
Extended product warranties, maximum length	10 years

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Right of use assets	$ 1,641	$ 1,683	$ 1,800
Operating lease, liability	$ 1,600		$ 1,800

Accounts Receivable - Receivabl

Accounts Receivable - Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts receivable	$ 70,541	$ 67,752
Less: Allowance for doubtful accounts	(647)	(353)
Total, net	$ 69,894	$ 67,399

Accounts Receivable - Allowance

Accounts Receivable - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 353	$ 264
Provisions for losses on accounts receivables, net of adjustments	294	115
Balance, end of period	$ 647	$ 379

Inventories - Components (Detai

Inventories - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 67,815	$ 68,842
Work in process	2,055	1,825
Finished goods	5,350	5,578
Total, gross	75,220	76,245
Less: Allowance for excess and obsolete inventories	(2,365)	(2,644)	$ (1,567)	$ (1,210)
Total, net	$ 72,855	$ 73,601

Inventories - Allowance (Detail

Inventories - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Inventory Valuation Reserves [Roll Forward]
Balance, beginning of period	$ 2,644	$ 1,210
Provisions for excess and obsolete inventories	(274)	357
Inventories written off	(5)	0
Balance, end of period	$ 2,365	$ 1,567

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Intellectual property
Intellectual property	$ 700		$ 700
Less: Accumulated amortization	(487)		(428)
Total, net	213		$ 272
Amortization expense	$ 59	$ 59

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental disclosure:
Income taxes paid	$ 3,024	$ 353
Non-cash investing and financing activities:
Non-cash capital expenditures	$ (1,000)	$ 1,068

Warranties - Additional Informa

Warranties - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020
Product Information [Line Items]
Product warranty accrual, minimum length	1 year
Product warranty accrual, maximum length	25 years
Parts
Product Information [Line Items]
Product warranty accrual, minimum length	18 months

Warranties - Change in Accruals

Warranties - Change in Accruals (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of period	$ 12,652	$ 11,421
Payments made	(1,177)	(1,106)
Provisions	1,465	1,109
Balance, end of period	12,940	11,424
Warranty expense	$ 1,465	$ 1,109

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Warranty	$ 12,940	$ 12,652
Due to representatives	13,123	11,538
Payroll	6,460	5,058
Profit sharing	3,167	1,721
Worker's compensation	480	522
Medical self-insurance	1,066	707
Customer prepayments	2,256	4,627
Employee 401(k) profit sharing	1,450	0
Donations	354	354
Income tax payable	2,346	0
Employee vacation time	4,017	3,804
Other	3,025	3,286
Total	$ 50,684	$ 44,269

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Oct. 24, 2019
Line of Credit Facility [Line Items]
Actual net worth for compliance	$ 306,300,000
Minimum net worth required for compliance	$ 175,000,000
Ratio of total liability to net worth	0.3
Maximum ratio of total liability to net worth for compliance	2
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowings	$ 30,000,000		$ 23,000,000
Standby letter of credit	1,700,000
Borrowings available under the revolving credit facility	$ 28,300,000
Frequency of periodic payment	monthly
Fees associated with unused portion of committed amount	$ 0
Borrowings outstanding under revolving credit facility	$ 0	$ 0
Revolving Credit Facility | LIBOR
Line of Credit Facility [Line Items]
Stated percentage	2.00%

Income Taxes - Provision (Benef

Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Current	$ 6,143	$ 1,786
Deferred	(167)	909
Provision (benefit) for income taxes	$ 5,976	$ 2,695

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Federal Statutory Income Tax Rate (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%
State income taxes, net of Federal benefit	5.20%	6.10%
Excess tax benefits	(3.80%)	(2.70%)
Other	(0.90%)	(0.90%)
Effective tax rate	21.50%	23.50%
Expected effective income tax rate for the year	25.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	Mar. 31, 2020
Income Tax Disclosure [Abstract]
CARES Act, percent of first-year bonus depreciation	100.00%

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	May 24, 2016	May 22, 2007	Mar. 31, 2020	Mar. 31, 2019	May 15, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	6,400,000
Unrecognized pre-tax compensation cost			$ 28,300
Weighted average recognition period (in years)			3 years 7 months 6 days
Total intrinsic value of options exercised during period			$ 3,900	$ 2,100
Cash received from options exercised during period			$ 4,497	$ 4,010
Award requisite service period			1 year
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)	400,000	3,300,000
Award vesting period		5 years
Exercise price of shares granted may not be less than fair market value (percentage)		100.00%
Unrecognized pre-tax compensation cost			$ 6,500
Weighted average recognition period (in years)			3 years 1 month 6 days
2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	3,400,000				2,600,000
Exercise price of shares granted may not be less than fair market value (percentage)	100.00%
Director | Options Granted on or after May 25, 2004 | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting period			33.33%

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Assumptions (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Directors and Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate	$ 0.32	$ 0.32
Expected volatility	31.08%	29.54%
Risk-free interest rate	0.70%	2.40%
Expected life	5 years	5 years
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate	$ 0.32	$ 0.32
Expected volatility	31.07%	29.54%
Risk-free interest rate	0.71%	2.40%
Expected life	5 years	5 years

Share-Based Compensation - Su_2

Share-Based Compensation - Summary of Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares vested and exercisable	1,024,276	683,489
Options vested and exercisable weighted average remaining contractual life	7 years 3 days	6 years 8 months 12 days
Options vested and exercisable weighted average exercise price	$ 32.73	$ 26.11
Options vested and exercisable intrinsic value	$ 15,968	$ 13,718
$7.18 - $33.20
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range	$ 7.18
Range of exercise prices, upper range	$ 36.95
Number of shares vested and exercisable	677,936
Options vested and exercisable weighted average remaining contractual life	6 years 1 month 2 days
Options vested and exercisable weighted average exercise price	$ 28.34
Options vested and exercisable intrinsic value	$ 13,542
$33.40 - $40.87
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range	$ 37
Range of exercise prices, upper range	$ 40.87
Number of shares vested and exercisable	6,418
Options vested and exercisable weighted average remaining contractual life	7 years 11 months 12 days
Options vested and exercisable weighted average exercise price	$ 38.20
Options vested and exercisable intrinsic value	$ 65
$41.37 - $50.68
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range	$ 41.37
Range of exercise prices, upper range	$ 57.14
Number of shares vested and exercisable	339,922
Options vested and exercisable weighted average remaining contractual life	8 years 10 months 2 days
Options vested and exercisable weighted average exercise price	$ 41.38
Options vested and exercisable intrinsic value	$ 2,361
$5.67 - $32.80
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range		$ 6.13
Range of exercise prices, upper range		$ 33.20
Number of shares vested and exercisable		496,465
Options vested and exercisable weighted average remaining contractual life		6 years 1 month 9 days
Options vested and exercisable weighted average exercise price		$ 22.56
Options vested and exercisable intrinsic value		$ 11,727
$32.85 - $33.80
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range		$ 33.40
Range of exercise prices, upper range		$ 40.87
Number of shares vested and exercisable		187,024
Options vested and exercisable weighted average remaining contractual life		8 years 3 months 10 days
Options vested and exercisable weighted average exercise price		$ 35.53
Options vested and exercisable intrinsic value		$ 1,991
$34.00 - $40.60
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range		$ 41.37
Range of exercise prices, upper range		$ 46.18
Number of shares vested and exercisable		0
Options vested and exercisable weighted average exercise price		$ 0
Options vested and exercisable intrinsic value		$ 0

Share-Based Compensation - Su_3

Share-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Shares [Roll Forward]
Outstanding, beginning of period (in shares)	3,627,047
Granted (in shares)	939,600
Exercised (in shares)	(154,335)
Forfeited or Expired (in shares)	(38,316)
Outstanding, end of period (in shares)	4,373,996
Exercisable, end of period (in shares)	1,024,276	683,489
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (weighted average exercise price)	$ 36.32
Granted (weighted average exercise price)	44.32
Exercised (weighted average exercise price)	29.13
Forfeited or Expired (weighted average exercise price)	38.86
Outstanding, end of period (weighted average exercise price)	38.27
Exercisable, end of period (weighted average exercise price)	$ 32.73	$ 26.11

Share-Based Compensation - Su_4

Share-Based Compensation - Summary of Unvested Restricted Stock Awards (Details)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Shares [Roll Forward]
Unvested, beginning of period (in shares) | shares	267,484
Granted (in shares) | shares	58,840
Vested (in shares) | shares	(62,292)
Forfeited (in shares) | shares	(1,120)
Unvested, end of period (in shares) | shares	262,912
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 34.42
Granted (weighted average grant date fair value) | $ / shares	42.65
Vested (weighted average grant date fair value) | $ / shares	30.71
Forfeited (weighted average grant date fair value) | $ / shares	35.88
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 37.13

Share-Based Compensation - Su_5

Share-Based Compensation - Summary of Grant Date Fair Value of Awards (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Grant date fair value of awards during the period:
Options	$ 10,905	$ 19,944
Restricted stock	2,510	3,708
Total	13,415	23,652
Share-based compensation expense:
Options	1,632	4,622
Restricted stock	719	785
Total	2,351	5,407
Income tax benefit/(deficiency) related to share-based compensation [Abstract]
Options	731	243
Restricted stock	334	151
Total	$ 1,065	$ 394

Employee Benefits (Details)

Employee Benefits (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined contribution employee automatic contribution, percent	6.00%
Administrative expense	$ 0	$ 0
Contributions made to the defined contribution plan	$ 2,450,000	1,360,000
Profit sharing, percent of pre-tax profit paid to eligible employees on quarterly basis	10.00%
Profit sharing bonus plan expense	$ 3,167,000	1,306,000
Medical claim payments	1,875,000	1,520,000
Health saving account payments	$ 874,000	$ 720,000
Effective January 1, 2016
Defined Benefit Plan Disclosure [Line Items]
Percent of match	175.00%
Defined contribution employer, maximum match percent	6.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net income	$ 21,853	$ 8,757
Basic weighted average shares (in shares)	52,071,839	51,992,150
Effect of dilutive stock options and restricted stock (in shares)	799,580	377,510
Diluted weighted average shares (in shares)	52,871,419	52,369,660
Basic (usd per share)	$ 0.42	$ 0.17
Diluted (usd per share)	$ 0.41	$ 0.17
Anti-dilutive shares (in shares)	253,437	1,927,727

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Nov. 06, 2019	May 20, 2019	May 05, 2020	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2020	Mar. 31, 2020	Mar. 13, 2020	Mar. 05, 2019	May 16, 2018	May 19, 2015
Schedule of Shareholders' Equity [Line Items]
Stock repurchase program, authorized amount									$ 20,000,000	$ 20,000,000	$ 15,000,000
Stock repurchased during period (in shares)				246,460	128,504			13,797,694
Aggregate price of shares repurchased since inception				$ 12,518,000	$ 5,071,000			$ 221,833,000
Average price of shares repurchased since inception (per share)				$ 50.79	$ 39.46			$ 16.08
Dividend Declared
Schedule of Shareholders' Equity [Line Items]
Cash dividends declared per common share (in dollars per share)	$ 0.16	$ 0.16
Open market
Schedule of Shareholders' Equity [Line Items]
Stock repurchase program amount authorized (in shares)												5,700,000
Stock repurchased during period (in shares)				103,689	5,799	4,205,255
Aggregate price of shares repurchased since inception				$ 4,987,000	$ 200,000	$ 74,793,000
Average price of shares repurchased since inception (per share)				$ 48.10	$ 34.46	$ 17.79
401(k)
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)				123,672	107,000			7,591,411
Aggregate price of shares repurchased since inception				$ 6,578,000	$ 4,283,000			$ 126,505,000
Average price of shares repurchased since inception (per share)				$ 53.19	$ 40.03			$ 16.66
401(k) | Subsequent Event
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)			23,305
Aggregate price of shares repurchased since inception			$ 1,100,000
Directors and employees
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)				19,099	15,705		2,001,028
Aggregate price of shares repurchased since inception				$ 953,000	$ 588,000		$ 20,535,000
Average price of shares repurchased since inception (per share)				$ 49.90	$ 37.44		$ 10.26

New Market Tax Credit (Details)

New Market Tax Credit (Details) - USD ($)	Oct. 24, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Line of Credit Facility [Line Items]
Due to related parties		$ 0		$ 2,000
Amortization of debt issuance costs		10,000	$ 0
Subsidiary
Line of Credit Facility [Line Items]
Due to related parties	$ 22,500,000
Investor
Line of Credit Facility [Line Items]
Loans receivable	$ 15,900,000
Loans receivable, term	25 years
Loans receivable, interest rate	1.00%
Proceeds from debt	$ 15,900,000
Interest from counterparty	6,300,000
Debt issuance costs	300,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowings	$ 23,000,000	$ 30,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2020USD ($)	Mar. 31, 2019contract
Commitments and Contingencies Disclosure [Abstract]
Number of contracts | contract		1
Contractual obligation | $	$ 1.8

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transactions [Abstract]
Sales to affiliates	$ 653	$ 50
Payments to affiliates	59	$ 127
Due from affiliates	478		$ 22
Due to related parties	$ 0		$ 2

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Net sales	$ (137,483)	$ (113,822)
Gross profit	(42,947)	(25,430)
Operating Segments | Units
Segment Reporting Information [Line Items]
Net sales	(130,720)	(107,068)
Gross profit	(46,054)	(26,385)
Operating Segments | Parts
Segment Reporting Information [Line Items]
Net sales	(6,880)	(6,911)
Gross profit	(3,177)	(3,669)
Other
Segment Reporting Information [Line Items]
Net sales	117	157
Gross profit	6,284	4,624
Inter-segment
Segment Reporting Information [Line Items]
Net sales	(6,786)	(7,922)
Gross profit	$ 395	$ (677)

Error Correction (Restated Cons

Error Correction (Restated Consolidated Statements) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Income
Net Sales	$ 137,483	$ 113,822
Cost of sales	94,536	88,392
Gross profit	42,947	25,430
Selling, general and administrative expenses	15,214	13,677
(Gain) loss on disposition of assets	(62)	284
Income from operations	27,795	11,469
Interest income, net		9
Other (expense) income, net	(27)	(26)
Income before taxes	27,829	11,452
Income tax provision	5,976	2,695
Net income	$ 21,853	$ 8,757
Earnings per share:
Basic (usd per share)	$ 0.42	$ 0.17
Diluted (usd per share)	$ 0.41	$ 0.17
Weighted average shares outstanding:
Basic (in shares)	52,071,839	51,992,150
Diluted (in shares)	52,871,419	52,369,660
Balance Sheet Data (at end of period):
Current assets	$ 196,966	$ 146,511	$ 187,549
Total assets	395,620	319,238	371,424
Current liabilities	64,185	43,082	56,028
Deferred income taxes	15,130	10,168	15,297
Other long-term liabilities	3,652	3,442	3,639
Total stockholders' equity	306,323	262,546	290,140	$ 249,443
Share-based compensation	2,351	5,407
Profit sharing bonus plan expense	3,167	1,306
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity	306,323	262,546	290,140	249,443
Net income	21,853	8,757
Stock options exercised and restricted stock awards granted	4,497	4,010
Share-based compensation	2,351	5,407
Stock repurchased and retired	(12,518)	(5,071)
Operating Activities
Net income	21,853	8,757
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,002	5,914
Provision for losses on accounts receivable, net of adjustments	294	115
Provision for excess and obsolete inventories	(274)	357
Share-based compensation	2,351	5,407
Loss (gain) on disposition of assets	(62)	284
Foreign currency transaction (gain) loss	51	(16)
Interest income on note receivable	(6)	(6)
Deferred income taxes	(167)	909
Changes in assets and liabilities:
Accounts receivable	(2,789)	(4,725)
Income taxes	772	1,432
Inventories	1,020	2,678
Prepaid expenses and other	(670)	(561)
Accounts payable	2,742	(5,730)
Deferred revenue	229	25
Accrued liabilities and donations	6,241	73
Net cash provided by operating activities	37,597	14,913
Investing Activities
Capital expenditures	(21,877)	(8,772)
Proceeds from sale of property, plant and equipment	61	52
Principal payments from note receivable	12	17
Net cash used in investing activities	(21,804)	(8,703)
Financing Activities
Stock options exercised	4,497	4,010
Repurchase of stock	(11,565)	(4,483)
Employee taxes paid by withholding shares	(953)	(588)
Net cash used in financing activities	(8,021)	(1,061)
Net increase in cash, cash equivalents and restricted cash	7,772	5,149
Cash, cash equivalents and restricted cash, beginning of period	44,373	1,994
Cash, cash equivalents and restricted cash, end of period	52,145	7,143
Common Stock
Balance Sheet Data (at end of period):
Total stockholders' equity	$ 208	$ 208	$ 208	$ 208
Consolidated Statements of Stockholders’ Equity
Shares, Outstanding	52,044,000	52,099,000	52,079,000	51,991,000
Total stockholders' equity	$ 208	$ 208	$ 208	$ 208
Stock options exercised and restricted stock awards granted (in shares)	212,000	237,000
Stock options exercised and restricted stock awards granted	$ 1	$ 1
Stock repurchased and retired (in shares)	(247,000)	(129,000)
Stock repurchased and retired	$ (1)	$ (1)
Paid-in Capital
Balance Sheet Data (at end of period):
Total stockholders' equity	0	4,346	3,631	0
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity	0	4,346	3,631	0
Stock options exercised and restricted stock awards granted	4,496	4,009
Share-based compensation	2,351	5,407
Stock repurchased and retired	(10,478)	(5,070)
Retained Earnings
Consolidated Statements of Income
Net income	21,853	8,757
Balance Sheet Data (at end of period):
Total stockholders' equity	306,115	257,992	286,301	249,235
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity	306,115	257,992	$ 286,301	249,235
Net income	21,853	8,757
Stock repurchased and retired	(2,039)
Operating Activities
Net income	$ 21,853	8,757
Previously Reported
Consolidated Statements of Income
Net Sales		113,822
Cost of sales		88,029
Gross profit		25,793
Selling, general and administrative expenses		11,001
(Gain) loss on disposition of assets		284
Income from operations		14,508
Interest income, net		9
Other (expense) income, net		(26)
Income before taxes		14,491
Income tax provision		3,589
Net income		$ 10,902
Earnings per share:
Basic (usd per share)		$ 0.21
Diluted (usd per share)		$ 0.21
Weighted average shares outstanding:
Basic (in shares)		51,992,150
Diluted (in shares)		52,369,660
Balance Sheet Data (at end of period):
Current assets		$ 146,798
Total assets		319,525
Current liabilities		44,000
Deferred income taxes		12,713
Other long-term liabilities		3,442
Total stockholders' equity		259,370		247,499
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity		259,370		247,499
Net income		10,902
Stock options exercised and restricted stock awards granted		4,010
Share-based compensation		2,030
Stock repurchased and retired		(5,071)
Operating Activities
Net income		10,902
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,914
Provision for losses on accounts receivable, net of adjustments		115
Provision for excess and obsolete inventories		357
Share-based compensation		2,030
Loss (gain) on disposition of assets		284
Foreign currency transaction (gain) loss		(16)
Interest income on note receivable		(6)
Deferred income taxes		1,887
Changes in assets and liabilities:
Accounts receivable		(4,725)
Income taxes		(1,348)
Inventories		2,678
Prepaid expenses and other		(561)
Accounts payable		(5,730)
Deferred revenue		25
Accrued liabilities and donations		411
Net cash provided by operating activities		14,913
Investing Activities
Capital expenditures		(8,772)
Proceeds from sale of property, plant and equipment		52
Principal payments from note receivable		17
Net cash used in investing activities		(8,703)
Financing Activities
Stock options exercised		4,010
Repurchase of stock		(4,483)
Employee taxes paid by withholding shares		(588)
Net cash used in financing activities		(1,061)
Net increase in cash, cash equivalents and restricted cash		5,149
Cash, cash equivalents and restricted cash, beginning of period		1,994
Cash, cash equivalents and restricted cash, end of period		7,143
Previously Reported | Common Stock
Balance Sheet Data (at end of period):
Total stockholders' equity		$ 208		$ 208
Consolidated Statements of Stockholders’ Equity
Shares, Outstanding		52,099,000		51,991,000
Total stockholders' equity		$ 208		$ 208
Stock options exercised and restricted stock awards granted (in shares)		237,000
Stock options exercised and restricted stock awards granted		$ 1
Stock repurchased and retired (in shares)		(129,000)
Stock repurchased and retired		$ (1)
Previously Reported | Paid-in Capital
Balance Sheet Data (at end of period):
Total stockholders' equity		969		0
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity		969		0
Stock options exercised and restricted stock awards granted		4,009
Share-based compensation		2,030
Stock repurchased and retired		(5,070)
Previously Reported | Retained Earnings
Consolidated Statements of Income
Net income		10,902
Balance Sheet Data (at end of period):
Total stockholders' equity		258,193		247,291
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity		258,193		247,291
Net income		10,902
Stock repurchased and retired		0
Operating Activities
Net income		10,902
Corrections
Consolidated Statements of Income
Net Sales		0
Cost of sales		363
Gross profit		(363)
Selling, general and administrative expenses		2,676
(Gain) loss on disposition of assets		0
Income from operations		(3,039)
Interest income, net		0
Other (expense) income, net		0
Income before taxes		(3,039)
Income tax provision		(894)
Net income		$ (2,145)
Earnings per share:
Basic (usd per share)		$ (0.04)
Diluted (usd per share)		$ (0.04)
Weighted average shares outstanding:
Basic (in shares)		0
Diluted (in shares)		0
Balance Sheet Data (at end of period):
Current assets		$ (287)
Total assets		(287)
Current liabilities		(918)
Deferred income taxes		(2,545)
Other long-term liabilities		0
Total stockholders' equity		3,176		1,944
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity		3,176		1,944
Net income		(2,145)
Stock options exercised and restricted stock awards granted		0
Share-based compensation		3,377
Stock repurchased and retired		0
Operating Activities
Net income		(2,145)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		0
Provision for losses on accounts receivable, net of adjustments		0
Provision for excess and obsolete inventories		0
Share-based compensation		3,377
Loss (gain) on disposition of assets		0
Foreign currency transaction (gain) loss		0
Interest income on note receivable		0
Deferred income taxes		(978)
Changes in assets and liabilities:
Accounts receivable		0
Income taxes		(84)
Inventories		0
Prepaid expenses and other		0
Accounts payable		0
Deferred revenue		0
Accrued liabilities and donations		(338)
Net cash provided by operating activities		0
Investing Activities
Capital expenditures		0
Proceeds from sale of property, plant and equipment		0
Principal payments from note receivable		0
Net cash used in investing activities		0
Financing Activities
Stock options exercised		0
Repurchase of stock		0
Employee taxes paid by withholding shares		0
Net cash used in financing activities		0
Net increase in cash, cash equivalents and restricted cash		0
Cash, cash equivalents and restricted cash, beginning of period		0
Cash, cash equivalents and restricted cash, end of period		0
Corrections | Common Stock
Balance Sheet Data (at end of period):
Total stockholders' equity		$ 0		$ 0
Consolidated Statements of Stockholders’ Equity
Shares, Outstanding		0		0
Total stockholders' equity		$ 0		$ 0
Stock options exercised and restricted stock awards granted (in shares)		0
Stock options exercised and restricted stock awards granted		$ 0
Stock repurchased and retired (in shares)		0
Stock repurchased and retired		$ 0
Corrections | Paid-in Capital
Balance Sheet Data (at end of period):
Total stockholders' equity		3,377		0
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity		3,377		0
Stock options exercised and restricted stock awards granted		0
Share-based compensation		3,377
Stock repurchased and retired		0
Corrections | Retained Earnings
Consolidated Statements of Income
Net income		(2,145)
Balance Sheet Data (at end of period):
Total stockholders' equity		(201)		1,944
Consolidated Statements of Stockholders’ Equity
Total stockholders' equity		(201)		$ 1,944
Net income		(2,145)
Stock repurchased and retired		0
Operating Activities
Net income		(2,145)
Corrections | Cost of Sales
Balance Sheet Data (at end of period):
Share-based compensation		400
Corrections | Selling, General and Administrative Expenses
Balance Sheet Data (at end of period):
Share-based compensation		3,000
Profit sharing bonus plan expense		$ 400

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event	May 07, 2020USD ($)contract	Apr. 22, 2020USD ($)
Subsequent Event [Line Items]
Insurance claim, deductible		$ 500,000
Number of purchase obligations | contract	3
Purchase obligation	$ 5,100,000