AAON - Earnings call transcript Q1 2019

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Operator

Welcome to the AAON, Inc.

First Quarter Sales and Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, 5/2/19. I would now like to turn the conference over to our host, Mr. Gary Fields. ahead. go Please

Gary Fields

a of like Conference I’d like deals you the that This Harbor to read made and any Act the Good historical, presented statement XXXX to First Investor is with. litigation pursuant begin the Call disclaimer I’d Safe is herein disclaimer. Quarter of AAON To a extent afternoon. to welcome forward-looking Earnings including the the for Reform to forward-looking outlook with is the of necessarily information provisions securities remainder year, not the XXXX. such statement to Announcement.

it in to cause report events AAON’s such, most including filings, our the those report occurrence could outside differ to of see materially from recent Form quarterly SEC As many the is annual XX-K subject and results anticipated. on the that contained AAON’s on XX-Q. factors control Form Please the risk

over Asbjornson, I turn Scott our would to it CFO. to like Now

Scott Asbjornson

due comparative by conference Welcome from March call. our XXXX, the up XXXX Net XX, ended XX, our to the XX.X% to sold. XXXX. the $XX.X versus – million up period year. sales I’d price begin three sales of million for in are quarter increases preceding Net from the increases along $XXX.X the March were units months with discussing results to preceding volume like of in to rooftop

increased to $XX.X XX.X% $XX.X profit gross from Our million million.

from entry-level. in experience XX.X% in Selling, profit the million expenses the XXXX. compared gross a just talented was company XX.X% in XXXX. $XX.X X.X% The to administrative retaining and workers obtaining percentage challenges sales, of million increased to As in $XX.X to general quarter and at continues ended

operations quarter from total sales XXX.X% to to in million from of XX.X% a XXXX. or as in XX.X% or from $XX.X X.X% $X.X XXXX. in the ended sales, percentage However, Income million of of X.X% just sales increased decreased of SG&A sales

the first estimated larger had increased is annual The to related be earnings company excluding $X.X benefit XX.X% to XXXX effective increased time, to to the compared by X.X% on call sales share or to tax shares from XX,XXX,XXX Treasurer ago. to over per the the increased versus based lower in quarter were sheet. Net I shares to in tax of our $X.XX expected. million rate, company’s Accounting income sales per earnings a Chief this that X.X% same $X.XX our to a discrete events, effective our than or period to excess XX.X%. stock tax XX.X% Diluted of that The expected Rebecca awards of per effective $XX.X XXXX share. to be will XXXX. rate XX,XXX,XXX Our XX%. in XXXX million turn Thompson, rate from caused quarter and At Diluted for per year balance share approximately discuss share compared Officer

Rebecca Thompson

Thank Scott. you,

look totaled at the XX, a XXXX. at see working $X.X balance that you December $XXX.X million March we If of versus XXXX. at you’ll million capital $XX.X million Cash balance XX, sheet, had

ratio X.X:X. current Our approximately is

million. $X.X were expenditures capital Our

$X.X year March December the XXXX to compared Shareholder’s repurchases million. XX, $X.XX share to for expenditures be at capital company $XX XXXX. stock at has million is expect We of approximately XX, $X.XX per diluted The equity year-to-date.

Fields. I’d over debt-free. Gary We continue President, turn our to remain now to the call to like

Gary Fields

number The so were was increase net up Air Condensing by overall material. is up not was first XX%. QX X%. heat in up down, of units down were number rooms Outdoor to of slightly looking So total handlers what rooms. Water-source were mechanical slightly up three XX%. units The in QX thing of were XXXX. rooftop the sales like by X.X% by pumps far. of units at and I’d we’re XXXX versus sold talk about

production in QX increase along over price nicely So backlog. XXXX. we’re have The of in some come our increases seeing

total is June current our are XX% about a was of today looking backlog our at before the of XX at as X% price that. above of backlog level We level, which

we price what do of was of on level. to pricing, portion. QX small price in March, XX%, we across-the-board based mid-to-late built figure QX. increase you much exhausted that’s can that at June at plus But have and that, in based is our be by another pricing. essentially, our X% X as December the this was So on backlog our March we going XX% math currently some had which and Then as XX% and backlog X% on

increase price March items; select the all X% nearly is on anticipation some my was X% on So items.

that So solidly half which will bottom to half and a begin on the increase, we pricing. bottom December QX, see increase, a or we’ll price additional positive hit plant maybe see my from manner. move the the of X% that into X/X as that QX, be in price to affect March the pricing will floor, of line about in is the Then we hit anticipation X% X% will that line

So going of our we’re forward. have value going escalating backlog to

subpar been of June all and of QX the roughly, is XX XXXX and seeing, past backlog. backlog And of most about the just QX priced We’re what XXXX. you’ve

versus it units was water-source XXXX. So in give We’ve units. in to that exact I’ll nicely. X,XXX we you got business QX the of shipped QX told is pump X,XXX XX%. coming heat in I along it you

is back of anticipated the increase as water-source pump overall had still it but is we the percentage small the earlier. – beginning So revenue, to heat a

design products. on continue to the refine existing We legacy

If that, the to them company. like call core attractive to products the very for the you’d These marketplace. are

comes here, – again a want also price see, up. nicely. to board. across will It up our first can the coming we’ve June, that’s that As backlog It one the was up increase announced. of and back I got another and And increased is X%, our part backlog you and

the at and products. a it’s this in quality moment. nice redesign to continues improve the to backlog So on reasonably Back its quality

aspect ability in-house new of our to our already a opposed outsourcing use accelerated limited former to it. to laboratory for very this we’re And begun products. have facilities or having We as development beneficial seeing

replacement remains construction Our roughly new at XX%. stable versus market market fairly

going again growth growth the of cannabis you in Canada some more product. seen there’s have probably to opportunity the that adoption in nationwide market. cannabis I’m their We due and to substantial tell

Index tone business We’re in acceleration in XX. that for the first cannabis certain legalized XXXX The us. over is in market purposes. any U.S. They seeing the XX for the areas Architectural of still some remain substantially medical time have percentage months for for stable. stable go previous centers year, we very had and that is Billing saw Data general grown primarily below

material having on them, might to slowdowns reported been And be so and effect that we talked there’s as to of partners what our sales channel see no yet.

our booked Looking at at forecast that performance, versus we about sales was on our forecast. on our at booked the what currently and sales, year-to-date end, XX% we’re of forecast,

backlog March So three not because rate, is obviously out the we’re backlog stretch XX production. represents million, backlog at today $XXX times If some, we’re a what ever company’s two, The quarter stretched per not see would company’s that for seeing can markets. which $XXX.X million shipping the represented had. weakness maybe of you that been. months historically have particular number in have any any highest lead The the

the is So to for want to have and to everybody that, years clients. don’t the say customers projects is going outrunning door. way. with our while aggressively that substantial expectations with I’m the order that intake and it’s of production many what’s I accelerating, And declare been manageable, out of rate appreciative very we’ve is Continues very to manage XXX% that But that our while the these rates us outcome of done our happy us be been send of continue going are loyal what we’re orders. very

continue production So heat for accelerate. the XXXX, water-source to remainder of the pump will

we in out in been what’s were door. balanced coming exceed had where the now was to We order’s with recently door coming capable capabilities of putting line about in door. the Our the the only what

water-source heat time. the family pump expectations lead the exceed the the product one So group market’s able meet for shining star is in or to that is

what’s orders Only door out almost especially is XX XX the the a the their first test feet with will Our performance. going world, thermal Longview maintain door. its unit entire the of to the products, they days long using regards will chamber, of reverb we the in begin the the in is in sits coming good remains that door a X outpace we have as beneficial testing this acoustical, coming our In orders of the to of had versus yet R&D that next of XX,XXX Marquis lab, in size position it. of and be It what a acoustical unit at feet have door. XX days, airflow portions reverb capacity. which functions they’re the And lab occupancy certain capable portion XXX,XXX completed. we of chambers. putting Yet be The on top use last be type will out and chamber, and for cubic with feet on cubic

So its AAON big Jacob laboratory that. played are of is the New And for days the it Javits is HVAC City. testing to Center, XX% approximately our equipment already else job name capabilities awarded within current demonstrating beneficial building part – adding lab project. XX to securing of a and that footprint. in to we’re was monumental. majority the aspects that’s showing That York They something

to parts the one is what store best two we Tulsa weeks a with across North primary practices in a duplicate sales so It’s but do, the We example to channel One business. one form parts new America is market great currently store two purposes prototype given a There’s than this thoroughly that serve the a to more local or fashion. other what partners of are three that: our is expect for within of opening here area. in we

improving backlog. described be affected believe material coming of stabilized. the that gross relative profit, prices to have and throughout believe, We that price earlier quarter-over-quarter, we the year impact increases from majority I the Our direct the how will with they’re

bit, and could year not stable, on escalation some people. when was are so had that in rate the small our While nothing floor telling needs and Salaries, people keep there’s are I so these that us the seeing little there we the some plant like retain think, shakeup expansion labor we’re we qualified a moving the any in the there. to horizon on immediate still our so with we planned for Labor, that market in imposed. are for there and tariffs back there’s anything we set bringing forth be the keep pace around have

bill actually orders lead I’m in, extended. the to $XX get actually longer we’ll any But So to so some for they entry-level though, hires little say written a don’t but allow XXXX $XX normal is Like get still are some that like to pressure times million. occur. upward need. purchase million things that certainly there’s of the hesitant we’ve we these might in new for looking CapEx

So Norm over he might going have. to comments that it additional now, I’m turn to for any

Norman Asbjornson

Gary management the A lot of I my management. quite advising that with pleased very many have you longer But us. has originally the taken done, I’ve about I’m work turnover not were and are us was place. or is every new which And only I’m to the with doing Not out, concerned what joined but backing no now. who still doing people also, retired of of

over And we’ve management changeover it’s generation of had generational next the entire probably critical we’re number company. of last areas effected changeover pleased in the quite and in that to throughout I’m company, the towards years. way so been the say XX% X.X importance And a a in the a to of

was an to as been for that’s occurred. it already when that people going many So concerned about has occur issue

we’re not and lot occurred. productivity. results of majority still to without is We with the a which problem who that’s us it’s get course, The of maximum a the knew that that, out of company. that, and And of the issue. Now with some has talent people weakness time-sensitive and to personnel very lost do our how rebuilding

on of with how that You learn quickly. people any our a on taught company. that picking or to is a individualized not that’s new given over management That’s learned years. very situation number up And manage It’s something already.

to in which just productivity, over as line a year is see effective improvement price as we so bottom the continued are the increases. So expecting or next on is the

company three And and cost So that of to pleased on to if the material it we’re line purposes, are should way. the while line. thing two thing. you that you’ll been sales, additional But and are major our is benefit or and of for productivity start not is to we’re had to years slip-ins particular that, now past This which going us transition. the some a notice effect long-term quick is the on this are undergoing you’ve our bottom all have an This, a practical the we’ve on has relative labor course, changes that through major tell no a we been our we’ve upswing a realizing in there following for instantaneous fix. completed now, bottom

So make routine to And optimistic ability very to management ourselves things capability occur, we back of added we’re profitability given a to ability orders, lot been to by our are what with a challenge our level. our of customers great backlog, pretty our historic much into a that. sending about up bring and the to well-represented which deal in us that’s have get pleased and increase our and have in we’ve growth been we’ve

desirability the our way, at With open people of gain the management product is of enhanced our internal next it the I our from I’d biggest like to very to pipeline Along customers. well our said, our our as to back. is, one So and completed. And we’ve productivity point challenge this up. the to that, transition group

Gary Fields

to up it like We’d to open now. questions

Operator

Instructions] comes [Operator first Your the from of Joe. line question

Unidentified Analyst

afternoon Hi, guys. good

I driving such you factor to driving backlog, about could the growth. factor, wondering that’s the what the biggest see if robust So you orders the was and driving talk

Gary Fields

that for we’ve partners In XX that There’s consulted to nearly was was firms; Norm working I firms. consult former the channel with Joe, in only was a successes those the by that, This manufacturers company XX across individual industry. all America. XXXX, aspects represented. share other company, the think not sales North the been years attempt A company to but of an me various on of admired recruited performer six I marquee with mid-to-late with them which AAON, my now.

that to growth AAON’s behavioral And with DNA so firms inherent their alignment expectations it XX be In and for doing didn’t five have so, firms consulting. those we out began that we identified in characteristics opportunity. in of

continuous firms. as replaced five that were with. our And with that went I of experience replaced is occur. XX enables that of So on appointed channel president, in And firms for more that It’s time those with were sales and them that and I key I was those that the I firms growth. and objectives, have to strategy perennial years there’s a partners something alignment

So in those to I alignment in why Air getting people understand think was very Texas instrumental. helping people was successful

I unknown that. AAON was some that quite next the occurred people back that of unwilling moved The tie years there goes their retired what happen that when to stake was few So on. a a or to in were were laying groundwork for going the that of thing to about think Norm major to business face

had Well other to And dedicate to Scott, that them only time, was gave people Because confidence other effort and once time when then they in plan are revealed, in are on uncertainty started behalf. more confidence that and become effort company, people, people and leaders, to found, representatives. but the spend and I myself, the keep then started throughout these to mind, so AAON’s they reservation AAON. independent and succession key and dedication next here the they gaining not they these succession right seeing visible. me, plan more

time. So morning for get have equipment, sell of and work to up when competitive they competitive the necessarily product-to-product, choices. are the air AAON in they’re Not to which multiple conditioning go all to they

their developed for that efforts them. a a has worthwhile company AAON on, So is reputation rewarding being very as spending very

was a low-hanging AAON could that reasonable there on effort channel amount partners. other manufacturers, fruit, I I saw aspects Then next that areas we side, attractive So yet partner or came to been and the the sales of become side, in was were improve that as more here, these sales having on of I reps think with key. thing when the channel

of this those relaxation government, their loose three company their certain are regulations. taxes reduction onerous the this there Those of has aspects the right great with been administration significant. improved turned U.S. and economy So have that absent current by would of in

to with that a preparation activities, and you’ve sheet of planning attractive operate sell to better but business sales a making you’ve their partners, line six initiated you’ve years themselves, and Norm most the and got then got channel got So company operate better on to strengthening in, our environment represent. company strengthening their in, our economy

Unidentified Analyst

Okay.

seen not seen. behind compared good to have you’ve you’ve started fallen with a I’m price obviously, you And in But I have are your was over guess between pricing anything I and guys pricing thoughts on figure thing of and of since look very trying your just accelerating of quarterly rates So XXXX around that have or increases. mean when price the lot quarter quarters? in orders if figure thing gap we’ve of at all is of the your very that started when so, aggressive the or backlog I the quarters. the one I’m X fourth right grasp peers seen you’ve seeing of to this seen to we really – over one out started the out the early job peers, up, handful And sort that a know – last X, that incredible massive this basis, the and to the time increases. inflation been you growth – growth sort the have your was trying year done it and I quarterly guys at time, changed same last have over basis, your a demand on you driving that put period peers, XXXX. considerably, and such over I your that and And in And the a wondering significant those in started on, last picking

Gary Fields

this of accelerate, want thing yes, to in substantial a had go get did back to again that is QX go to out XXXX front – I our begin one if that of saw point pricing redo mull in the when at to more over, increases. them you price we’ve would that I to say regards peers with us be if XXXX would We levels price to with That historically you time. somewhere initially, started I that up peers' alignment same in the June that. with around versus levels. catching we increase, But began our pricing I been

channel any what there sales passed advantage beyond don’t think as increase lower-priced don’t I we then price offering that these believe to So a June ‘XX increases relevant continued I prices, of And price actually our overall in they’ve had historically. increase, we was the to having the that to up had. the peers partners

And to get time of some able spending products, and efficiency both the with said, our and I so on like having these they were But them more orders. also things we’ve were selling just these to operating quality. improved still Well, dedication strategies products.

and You’ve in it’s being promise. seen redefining we expense out then a It And quality. some on, been warranty the which premium delivering positive early shows we’re that on we what by consistently peaked direction, reduced. put into that moving meant efforts

think as growth premium we categorize employed. being behind on had that our price – we’ve that we’re some So that given up I the would not I and of increases historically

Unidentified Analyst

know op to price to structurally Has of get we’ll margins? assume I’m I time, hopefully? changed say, those improve. curious, weighing can changed some or in wanted just has year cannot you’re anything return ask, we margin, gross that’s point XXXX, anything those peak is should, of time, cost over structurally? to XXXX you improve still sort back going levels, that still things, as the of to Or XX% eventually, at that sort goes in – And XX%, on Okay. but issue along. Productivity the I sort

Gary Fields

those believe price what I our when believe that in you in than of there, we’re just I going later to the an accretive see gross at levels stated. look no see I to that the margin and to acceleration backlog, we percentage. continue measures we’ll that return

we’ve ideal an only weeks, in floor. the recently, The the few achieved plant other thing last headcount that on out is

XX is rate it what over than be, still for turnover improved the to it While like was months substantially ago. higher we’d it’s

onboarding and improved substantially. training has Our

is in regard. productivity those as already evidence we as at looked So showing figures making I progress tell believe that in are of some that that We came yesterday, and me improvement. recent our that

having position path that we happen, So with to back pricing to headcount, improved all from make onboarding to an ideal and training get our are some initiatives and levels. believe historic this and right the of I on seeing results the

with as rates, somewhat seen in XX% rates, say QX, QX were between Well, related QX and strong maintaining QX. next much particular thing we’ve drop-offs, demand input, in want about to I year, margin. XX% not as far targeting this historically, QX, is We’re were gross The than those as production lower QX any is that rate. XX% and demand as and and

it’s historical the know rate you You’ve and backlog peak of its is having seen the that in increasing a increase, so not path three. demand if two

overhauls, that don’t historically, of think highly fallouts One sheet are schedule perform would Well, rates quarter. level QX, on running equipment. much actually, into the we QX, quarter machines fall our easier a major easily understood fleet for as some and would was every at the in tip-top from and When maximum higher every we with, now off at and doing I QX. those in metal in that automated of magnets. acceleration QX to condition machinery repairs have then would that complete it of anticipated, was major to in be machines go was required And

went little a the we about we was XXX% curve So running and overhauling ourselves a found capacity. that on required how at machine behind maintaining

but at not than capability machinery. manufacturing we’ve the of the only putting but XXX% so on capability we So surplus that been a components that, revising more ability required XXX% the have less of working to sheet-metal also in provide in hard

Unidentified Analyst

delivery any to much incredible you’re facilities wanted possible then backlog next volume Is and right quarters – sort sort of the I as mean, projections with, internal that risk because to there pay maybe to several this because your because of you certain I that of sort still fact saying several maybe productivity of you’re through the have the much of about that now, because there anything And push risk as going maybe costs sort the what volume plant. a the of dealing through like to you’re over of margin through because ask and plant. that dates or of productivity related so sort that trying that, – overtime or higher I the to issues so of right. issues All to achieve improvement sort of and growth is there’s to just achieving

Gary Fields

Joe, I think there’s risks. always risk. And I astute think that managing at we have to those be

Now the a of overtime the hours we risk the in substantial vast days that the XX a fact is seven probably not run plant, it, majority week. day,

So a assemble metal XX days because to have day, hours day. assembly have don’t to the do enough XX hours a we sheet only ability run we seven a we supply currently week –

orders. talked the was So about capacity. one for equipment. speaking CapEx automated metal it placed machines We’ve machines. metal is speak. got coming sheet was manufacturing to years, that of we the that additional as adding I $XX things considerable Salvagnini manufacturing sheet We’ve Part of in million We’ve

on order think hours that going our assembly day shift. before all the the the anticipating we’re we that with now of to we’re a additional the operation will and in they of on in machines supply that first capacity, half XX such end week to I be have of that go will us year, XXXX,

But roughly have. will time for probably, half assembly us the near within will or a the second the XX% more so. year give what remain next Our than of week term we hours that still currently day, XX shift

have that’s meaning they being having identified rate, meaning So XX day, where the hurdles the years, able that. sheet without XXX metal year are the don’t down. are them area machines, we’ve hours – more chokepoints what And breaking run don’t to a XX of another to dispatch or and it employ days they for XXX% was a

that. as to to dispatch have scheduled machinery that what sense ratios as and additional kind building in of is You’ve at reasonable, we some and looking so far think we’re time, rate achieve some we’re makes got

plus this we’re looking projections we sheet that, all While making then we’re get doing metal order at the on in the channel the chokepoint week, of already once now, crew our sales we wiring together on for that we’re to occurring the get particular the brazing, with year next within – house the purchasing intelligence way. way, growth other also this then is p.m. that. which equipment can based of as an putting decisions and and company the put we partners our out shift. And these functions thing do but gathering half made already that to we’ve chokepoint out of such other assembly, equipment over necessary with as a.m. in strides of be getting considerable the will first And speak, last not painting, assembly that running

We’re painting correct? running XX/X,

Scott Asbjornson

fully. Not

We’re probably about XX% in there.

Gary Fields

Okay.

quite some moved we’ve So function. XX/X a ways towards getting additional capacity the through

Operator

the Zane. from comes question line next Your Instructions] of [Operator

Zane Karimi

Karimi Thielman. for on Brent Zane is This

little trying things Can feel quantify specifically. starting detail there. a hoping to drag that on the to get I’m I Is the off, – margins? more the on businesses Just underlying get on better putting was you Like, pressure lab the thinking of a P&L?

Gary Fields

– into function don’t expanded I its positions over the lab know of have period. development department. staff on time we what research number exact We the and personnel segregate Well, own had did

many are the what we – looked, So there. know last under how definitively the just was time was it? population XX, isn’t it, people in And I

Unidentified Company Representative

[Indiscernible]

Gary Fields

Yes.

expense historically what of be give to lab. don’t been doubt There’s There’s you that running related assets. going those I clear no know to depreciation that’s And definition. to related there’s the expense to so a

board, higher and functions related more on to will bring utility we be As more costs there it.

ourselves But I this So sell think it the more price, that to effect premium I for enhances would what lab be naive on that grow the lot. to opportunity a once it. believe didn’t that again, we’ve some representatives have at to it done equipment think and

to of in them to Javits absolutely AAON of York New were develop projects were and what to New already World in are York City. that Headquarters us awarded them We to able Nike because One City, facilities. Building, Jacob laboratory. demonstrate in because for have of seen in awarded the multiple were the that evidence lab tower These projects Willoughby Merchandising we

So expense X/X regard, our burden Then overhead. certification is, a sales expense, the in a AHRI. which about agency, the is of an it the the the certifications maintaining activities – lab of is that to with

make multiple their your So some you it your you so plant have you that laboratory from data they certain they has equipment your confidence select ship which test that publish, Well, programs, to to make AHRI to you in and want to have test it. of equipment of performance sure floor, that.

that certain comes performance is laboratory. do equipment The way the categories primarily equipment our and for are other thing here is, here instance. certifies AHRI they the That’s of chillers, there in

So we ability XXX-ton we to And only now, to to had test to the XXX-ton that formerly test chiller. chiller. a the that ability a have

to we’re So our able here that facilities. in do

X/X that is activity for projects and and to anticipated Willoughby to One about as is of proof to of So is nature. Nike then mentioned Javits and – or the dedicated be of of development AHRI new be product for the such Jacob with X/X X/X concept. And anticipated I activities

Zane Karimi

Great…

Gary Fields

for. all And – activities that those are are we charge that

So have revenue. direct some it will

Zane Karimi

mix trying XX-XX new But about the that firm product And you you’ve And positive then other control Okay. XXXX? in are actively materially in Do benefactors and been non-residential mix? are guys around state your replacements it new of the shift the to contractors you running construction. design think construction market. seems market universally like toward construction can

Gary Fields

with we sales lot have assignment him untapped and a I assist replacement in just hired focus our our we we well that the a he on of accounts. channel sales process channel additional And gave replacement X.X opportunity years that amongst the for consult partners partners business. about one year, some recently, that And to Actually, I ago, just there – recently strategic to sales think for is was him business. with gentleman

going softening them tell I’m Architectural data yet, to the of indicator, the if So but showed shown you an any where from that Index construction has business new that little any kind of you use not as latest weakness market. Billing a

material have day the nine on to publish be from that lead any So you to about normally a kind to of time seeing business. effect XX-month in

this a and of at. that ahead It’s channel for I developing don’t well work are be to wanted as sales additional on I case, believe adept strategies the being one partners our extremely whole replacement that market. So

are it. job, doing a I good representative are examples job think that but for for opportunity room I great and But There certain there great across-the-board, improvement. think a a great job. firms they there’s out of that for not room do

Zane Karimi

Got you’re seeing you. the how much efforts more regional internal where to versus that And a you geographically on notion. environment? is and demand fastest for And of improve Can the discuss demand growth penetration products? follow-up that

Gary Fields

the regional Okay. internal I’m some were five, material any we both environment. But in is, desired not efforts, firms years the demand ago. coast, back going change than the that of improved seeing six we weaker

And in coast it that was time. on the what for AAON’s The it’s of did than the a years, West probably effort anywhere a grown in huge we spent well-positioned X.X order. relatively period was, times, country more we needs. don’t over So have The about XX% front rate annual in XX% both but last the has I’m grown at of probably compounded middle the going say middle. Coast percentages – of Coast the East has rate. at me, to to that growth in relative five I

have really firms region lot attractive, was it we over it’s things, last in In coasts markets. we provided the was of should the that AAON’s both were Canada Canada. So seeing all, and success a that those region more – replaced hot see the where three changed number were we offerings. for Southeast us. at we in believe that in results not a but substantial well And those humid representative humid particularly product or equipment That’s a but weren’t the with and Southeast our sits two out region. all of years. We two had hot sit that firms Then real rep

the but volume predecessor on They they One their Montréal handle for in more and that’s of than times been years headquartered. was now, just of are years. in the where section They Canada. they’re four two board those Montréal have two

sales weak. So got sales we got partners that we saw we and call those channel I areas we partner this engagement also as have in internal – better that better in effort, channel

Operator

from There phones. no are questions the further

Scott Asbjornson

results. forward quarter talking your listening the to you We again Good to you look right. today. All our thank for call second We in to August for day.

Operator

conference This concludes today’s call.

disconnect. now may You

AAON (AAON) 4 May 192019 Q1 Earnings call transcript