Exhibit 99.1
NEWS BULLETIN | AAON, Inc. 2425 South Yukon Ave. • Tulsa, OK 74107-2728 • Ph: (918) 583-2266 • Fax: (918) 583-6094 • •http://www.aaon.com• | |
FOR IMMEDIATE RELEASE March 14, 2013 | For Further Information: Jerry R. Levine • Phone: (914) 244-0292 • Fax: (914) 244-0295 Email: jrladvisor@yahoo.com |
AAON REPORTS HIGHER 2012 AND RECORD FOURTH QUARTER RESULTS
Tulsa, OK, March 13, 2013 – AAON, Inc. (NASDAQ-AAON), today announced its operating results for the year 2012. Sales increased 14% to a record $303.1 million from $266.2 million in 2011, while net income increased 96% to $27.4 million compared to $14.0 million in the previous year. Sales in the fourth quarter of 2012 increased 23% to a record $78.0 million from $63.4 million in 2011. Net income increased 770% to a record $7.6 million compared to $0.9 million in the same period a year ago.
Earnings per diluted share for year 2012 were $1.11 compared to $0.56 in 2011, based upon 24.7 million and 24.9 million diluted shares outstanding, respectively, while earnings for the fourth quarter of 2012 were $0.31per diluted share compared to $0.04 per diluted share in 2011, based upon 24.6 million and 24.8 million diluted shares outstanding, respectively.
Norman H. Asbjornson, President and CEO, stated, “We are very proud of our operating results for year 2012 and for exceeding $300 million in sales for the first time. These results were achieved in spite of a continuing weak national economy. We addressed these problems through the development of new products; improvement of our sales force; addition of new facilities; rearrangement of production lines; and purchases of improved manufacturing machinery. Also extremely important has been the stability, training and dedication of our employees. These factors combined to provide greater productivity, improved efficiencies and a significant increase in our market share.”
Mr. Asbjornson then pointed out that, “While gross profit in 2012 increased greatly to 23.3% from 17.4% in 2011, this difference is attributable to the above-mentioned factors and abnormal expenses incurred in 2011 as previously reported. However, we have begun to witness some inflationary pressure from rising raw material, components and labor costs. If this continues, our 2012 gross profit may not be sustainable throughout the 2013 calendar year.”
Mr. Asbjornson next said, “It appears from information available to us that there will be a flat to modestly improving economy in our segments of the HVAC industry in 2013. Based upon this forecast and other factors, we anticipate AAON having another good year in 2013.”
The Company will host a conference call today at 4:15 P.M. Eastern Time to discuss year 2012 and fourth quarter results. To participate, call 1-877-737-1669 (Code: VA 55540).
AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units, heat recovery units, commercial self-contained units and coils. Its products serve the new construction and replacement markets. The Company has successfully gained market share through its “semi-custom” product lines, which offer the customer value, quality, function, serviceability and efficiency.”
Certain statements in this news release may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements.
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| AAON, Inc. and Subsidiaries | ||||||||||||||||
| Unaudited Consolidated Statements of Income | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Net sales | $ | 78,008 | $ | 63,402 | $ | 303,114 | $ | 266,220 | ||||||||
| Cost of sales | 59,279 | 54,755 | 232,615 | 219,939 | ||||||||||||
| Gross profit | 18,729 | 8,647 | 70,499 | 46,281 | ||||||||||||
| Selling, general and administrative expenses | 6,634 | 5,611 | 26,261 | 22,310 | ||||||||||||
| Loss(gain) on disposal of assets | 21 | 1,816 | 4 | 1,802 | ||||||||||||
| Income from operations | 12,074 | 1,220 | 44,234 | 22,169 | ||||||||||||
| Interest expense | (1 | ) | (104 | ) | (44 | ) | (277 | ) | ||||||||
| Interest income | 31 | 11 | 86 | 98 | ||||||||||||
| Other income(expense), net | (9 | ) | 213 | 41 | (477 | ) | ||||||||||
| Income before taxes | 12,095 | 1,340 | 44,317 | 21,513 | ||||||||||||
| Income tax provision | 4,517 | 469 | 16,868 | 7,527 | ||||||||||||
| Net income | $ | 7,578 | $ | 871 | $ | 27,449 | $ | 13,986 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.31 | $ | 0.04 | $ | 1.12 | $ | 0.57 | ||||||||
| Diluted | $ | 0.31 | $ | 0.04 | $ | 1.11 | $ | 0.56 | ||||||||
| Cash dividends declared per common share: | $ | 0.24 | $ | 0.12 | $ | 0.36 | $ | 0.24 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 24,525 | 24,635 | 24,550 | 24,690 | ||||||||||||
| Diluted | 24,630 | 24,821 | 24,699 | 24,881 | ||||||||||||
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| AAON, Inc. and Subsidiaries | ||||||||
| Unaudited Consolidated Balance Sheets | ||||||||
| December 31 | ||||||||
| 2012 | 2011 | |||||||
| Assets | (in thousands, except share and per share data) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,159 | $ | 13 | ||||
| Certificates of deposit | 3,120 | - | ||||||
| Investments held to maturity at amortized cost | 2,832 | - | ||||||
| Accounts receivable, net | 43,866 | 34,137 | ||||||
| Income tax receivable | 694 | 10,016 | ||||||
| Notes receivable | 28 | 27 | ||||||
| Inventories, net | 32,614 | 34,948 | ||||||
| Prepaid expenses and other | 740 | 723 | ||||||
| Deferred tax assets | 4,493 | 4,523 | ||||||
| Total current assets | 91,546 | 84,387 | ||||||
| Property, plant and equipment: | ||||||||
| Land | 1,340 | 1,340 | ||||||
| Buildings | 59,761 | 56,057 | ||||||
| Machinery and equipment | 117,617 | 114,256 | ||||||
| Furniture and fixtures | 8,906 | 7,784 | ||||||
| Total property, plant and equipment | 187,624 | 179,437 | ||||||
| Less: Accumulated depreciation | 96,929 | 85,935 | ||||||
| Property, plant and equipment, net | 90,695 | 93,502 | ||||||
| Certificates of deposit | 2,120 | - | ||||||
| Investments held to maturity at amortized cost | 8,041 | - | ||||||
| Note receivable, long-term | 1,091 | 1,092 | ||||||
| Total assets | $ | 193,493 | $ | 178,981 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Revolving credit facility | $ | - | $ | 4,575 | ||||
| Accounts payable | 13,047 | 14,118 | ||||||
| Accrued liabilities | 26,578 | 19,994 | ||||||
| Total current liabilities | 39,625 | 38,687 | ||||||
| Deferred tax liabilities | 15,732 | 17,790 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $.001 par value, 11,250,000 shares authorized, | - | - | ||||||
| no shares issued | ||||||||
| Common stock, $.004 par value, 112,500,000 shares authorized, | 98 | 98 | ||||||
| 24,517,749 and 24,618,324 issued and outstanding at December | ||||||||
| 31, 2012 and 2011, respectively | ||||||||
| Additional paid-in capital | - | - | ||||||
| Retained earnings | 138,038 | 122,406 | ||||||
| Total stockholders' equity | 138,136 | 122,504 | ||||||
| Total liabilities and stockholders' equity | $ | 193,493 | $ | 178,981 | ||||
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| AAON, Inc. and Subsidiaries | ||||||||||||
| Unaudited Consolidated Statements of Cash Flows | ||||||||||||
| Years Ending December 31, | ||||||||||||
| 2012 | 2011 | 2010 | ||||||||||
| Operating Activities | (in thousands) | |||||||||||
| Net income | $ | 27,449 | $ | 13,986 | $ | 21,894 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation | 13,407 | 11,397 | 9,886 | |||||||||
| Amortization of bond premiums | 155 | 156 | 379 | |||||||||
| Provision for losses on accounts receivable, net of adjustments | (83 | ) | (289 | ) | (117 | ) | ||||||
| Provision for excess and obsolete inventories | 63 | (50 | ) | - | ||||||||
| Share-based compensation | 1,294 | 680 | 791 | |||||||||
| Excess tax benefits from stock options exercised and restricted stock awards vested | (393 | ) | (211 | ) | (356 | ) | ||||||
| (Gain) loss on disposition of assets | 4 | 1,802 | (73 | ) | ||||||||
| Unrealized gain on financial derivative asset | - | - | (14 | ) | ||||||||
| Foreign currency transaction gain | (27 | ) | (8 | ) | - | |||||||
| Interest income on note receivable | (42 | ) | - | - | ||||||||
| Deferred income taxes | (2,028 | ) | 10,122 | (558 | ) | |||||||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | (9,646 | ) | 6,053 | (6,403 | ) | |||||||
| Income tax receivable | 9,715 | (10,016 | ) | - | ||||||||
| Inventories | 2,271 | (1,296 | ) | (4,814 | ) | |||||||
| Prepaid expenses and other | (17 | ) | (67 | ) | 431 | |||||||
| Financial derivative asset | - | - | 2,214 | |||||||||
| Accounts payable | 2,461 | (2,751 | ) | 6,522 | ||||||||
| Accrued liabilities | 6,584 | (3,024 | ) | 2,370 | ||||||||
| Net cash provided by operating activities | 51,167 | 26,484 | 32,152 | |||||||||
| Investing Activities | ||||||||||||
| Proceeds from sale of property, plant and equipment | 11 | 482 | 136 | |||||||||
| Investment in certificates of deposits | (6,540 | ) | - | (2,745 | ) | |||||||
| Maturities of certificates of deposits | 1,300 | 1,503 | 1,242 | |||||||||
| Purchases of investments held to maturity | (11,654 | ) | - | (12,018 | ) | |||||||
| Maturities of investments | - | 9,364 | 2,119 | |||||||||
| Proceeds from assets held for sale | - | - | 460 | |||||||||
| Proceeds from called investment | 626 | - | - | |||||||||
| Capital expenditures | (14,147 | ) | (35,914 | ) | (17,470 | ) | ||||||
| Principal payments from note receivable | 69 | 27 | - | |||||||||
| Net cash used in investing activities | (30,335 | ) | (24,538 | ) | (28,276 | ) | ||||||
| Financing Activities | ||||||||||||
| Borrowings under revolving credit facility | 34,847 | 82,078 | 20,839 | |||||||||
| Payments under revolving credit facility | (39,422 | ) | (77,503 | ) | (20,839 | ) | ||||||
| Payments of long-term debt | - | - | (76 | ) | ||||||||
| Stock options exercised | 1,996 | 494 | 1,168 | |||||||||
| Excess tax benefits from stock options exercised and restricted stock awards vested | 393 | 211 | 356 | |||||||||
| Repurchase of stock | (6,660 | ) | (3,671 | ) | (19,480 | ) | ||||||
| Cash dividends paid to stockholders | (8,840 | ) | (5,935 | ) | (9,168 | ) | ||||||
| Net cash used in financing activities | (17,686 | ) | (4,326 | ) | (27,200 | ) | ||||||
| Effects of exchange rate on cash | - | - | 78 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 3,146 | (2,380 | ) | (23,246 | ) | |||||||
| Cash and cash equivalents, beginning of year | 13 | 2,393 | 25,639 | |||||||||
| Cash and cash equivalents, end of year | $ | 3,159 | $ | 13 | $ | 2,393 | ||||||
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