AAON, INC. - FORM 8-K - EX-99.1 - EXHIBIT

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8-K - 8-K - AAON, INC.	aaon_8k110713.htm

Exhibit 99.1



NEWS BULLETIN			AAON, Inc.
			2425 South Yukon Ave. Ÿ Tulsa, OK 74107-2728
			Ÿ Ph: (918) 583-2266 Ÿ Fax: (918) 583-6094 Ÿ
			Ÿhttp://www.aaon.comŸ
			For Further Information:
FOR IMMEDIATE RELEASE NOVEMBER 7, 2013			Jerry R. Levine Ÿ Phone: (914) 244-0292 Ÿ Fax: (914) 244-0295
			Email: jrladvisor@yahoo.com

AAON REPORTS RECORD SALES AND EARNINGS

TULSA, OK, November 7, 2013 - AAON, Inc. (NASDAQ-AAON), today announced its operating results for the third quarter and nine-month period ended September 30, 2013.

The quarter ended September 30, 2013 was the fourth consecutive quarter to produce the highest sales and earnings for any corresponding quarter in any year in the 25-year history of the company. Sales and earnings for the nine months ended September 30, 2013, were also all time records.

Revenues in the quarter were $89.7 million, up 16.8% from $76.8 million in 2012. Net income was $10.5 million, up 75.2% from $6.0 million in the same period a year ago. Net sales for the nine-month period ended September 30, 2013 were $247.8 million, up 10.1% compared to $225.1 million in 2012. Earnings for the nine months ended September 30, 2013 were $29.8 million, up 49.9% compared to $19.9 million in 2012.

Earnings per diluted share in the third quarter of 2013 were $0.28, up 75.0% from $0.16 for the same period a year ago, based upon 37.0 million shares outstanding for both periods. Earnings per diluted share were $0.80, up 48.1% from $0.54, in the nine months ended September 30, 2013, and September 30, 2012, respectively, based upon 37.0 million and 37.1 million diluted shares outstanding for the nine months ended September 30, 2013, and September 30, 2012, respectively. All per share earnings reflect the 3-for-2 stock split effective July 2, 2013.

Norman H. Asbjornson, President and CEO, stated, “The third quarter gains in sales and income from operations primarily reflect an increase in market share, as well as price increases and a decline in cost of materials; gross profit as a percent of sales increased from 22.3% to 29.7%, but SG&A expenses as a percent of sales also increased from 8.8% to 10.8%, the majority of which (SG&A) represents increases in “profit sharing” and warranty expense.”

Mr. Asbjornson continued, “The Company’s backlog decreased from $55.3 million at September 30, 2012 to $49.9 million at September 30, 2013."

Mr. Asbjornson said, “While we are confident of having record sales and profits for 2013, we expect a decline in sales and fairly level profits in the fourth quarter of 2013 compared to an exceptionally strong fourth quarter last year.”

At a meeting of the Board of Directors on November 6, 2013, the Board declared a regular semi-annual cash dividend of $0.10 per share, which will be paid to the holders of the outstanding Common Stock of the Company as of the close of business on December 2, 2013, the record date, payable December 23, 2013.

The Company will host a conference call today at 4:15 P.M. Eastern Time to discuss the third quarter results. To participate, call 1-866-544-4631; or, for rebroadcast, call 1-866-245-6755 (code 531989).

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.



AAON, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(in thousands, except share and per share data)
Net sales	$	89,690		$	76,816		$	247,764		$	225,106
Cost of sales	63,074			59,667			178,160			173,336
Gross profit	26,616			17,149			69,604			51,770
Selling, general and administrative expenses	9,687			6,747			25,743			19,627
Gain on disposal of assets	—			4			52			17
Income from operations	16,929			10,406			43,913			32,160
Interest expense	(1		)	(16		)	(2		)	(43		)
Interest income	61			40			153			55
Other income(expense), net	15			53			252			50
Income before taxes	17,004			10,483			44,316			32,222
Income tax provision	6,482			4,476			14,535			12,351
Net income	$	10,522		$	6,007		$	29,781		$	19,871
Earnings per share:
Basic*	$	0.29		$	0.16		$	0.81		$	0.54
Diluted*	$	0.28		$	0.16		$	0.80		$	0.54
Cash dividends declared per common share*:	$	—		$	—		$	0.10		$	0.08
Weighted average shares outstanding:
Basic*	36,742,262			36,803,235			36,752,657			36,837,686
Diluted*	37,017,561			37,001,127			37,041,775			37,083,695

*Reflects three-for-two stock split effective July 2, 2013



AAON, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
	September 30, 2013		December 31, 2012
Assets	(in thousands, except share and per share data)
Current assets:
Cash and cash equivalents	$	2,289	$	3,159
Certificates of deposit	8,186		3,120
Investments held to maturity at amortized cost	11,421		2,832
Accounts receivable, net	46,129		43,866
Income tax receivable	1,769		694
Note receivable	29		28
Inventories, net	33,383		32,614
Prepaid expenses and other	619		740
Deferred tax assets	5,296		4,493
Total current assets	109,121		91,546
Property, plant and equipment:
Land	1,353		1,340
Buildings	60,435		59,761
Machinery and equipment	122,356		117,617
Furniture and fixtures	9,539		8,906
Total property, plant and equipment	193,683		187,624
Less: Accumulated depreciation	105,975		96,929
Property, plant and equipment, net	87,708		90,695
Certificates of deposit	4,483		2,120
Investments held to maturity at amortized cost	17,867		8,041
Note receivable	959		1,091
Total assets	$	220,138	$	193,493

Liabilities and Stockholders' Equity
Current liabilities:
Revolving credit facility	$	—	$	—
Accounts payable	12,795		13,047
Dividends payable	—		—
Accrued liabilities	30,314		26,578
Total current liabilities	43,109		39,625
Deferred revenue	358		—
Deferred tax liabilities	14,741		15,732
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued	—		—
Common stock, $.004 par value, 168,750,000 shares authorized,	147		147
36,709,890 and 36,776,624 issued and outstanding at September 30, 2013
and December 31, 2012, respectively*
Additional paid-in capital	—		—
Retained earnings	161,783		137,989
Total stockholders' equity	161,930		138,136
Total liabilities and stockholders' equity	$	220,138	$	193,493

*Reflects three-for-two stock split effective July 2, 2013



AAON, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
	Nine Months Ended September 30,
	2013			2012
Operating Activities	(in thousands)
Net income	$	29,781		$	19,871
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	9,349			10,079
Amortization of bond premiums	545			80
Provision for losses on accounts receivable, net of adjustments	121			(7		)
Provision for excess and obsolete inventories	468			—
Share-based compensation	1,054			625
Excess tax benefits from stock options exercised and restricted stock awards vested	(502		)	(267		)
Gain on disposition of assets	(52		)	(17		)
Foreign currency transaction gain (loss)	35			(40		)
Interest income on note receivable	(31		)	—
Deferred income taxes	(1,794		)	(987		)
Write-off of note receivable	75			—
Changes in assets and liabilities:
Accounts receivable	(2,384		)	(8,227		)
Income tax receivable	1,753			5,801
Inventories	(1,237		)	(2,702		)
Prepaid expenses and other	121			148
Accounts payable	(227		)	2,681
Deferred revenue	358			—
Accrued liabilities	1,410			11,375
Net cash provided by operating activities	38,843			38,413
Investing Activities
Capital expenditures	(6,407		)	(12,582		)
Proceeds from sale of property, plant and equipment	72			311
Investment in certificates of deposits	(8,869		)	(4,280		)
Maturities of certificates of deposits	1,440			1,060
Purchases of investments held to maturity	(22,275		)	(5,624		)
Maturities of investments	3,315			—
Proceeds from called investment	—			270
Principal payments from note receivable	52			20
Net cash used in investing activities	(32,672		)	(20,825		)
Financing Activities
Borrowings under revolving credit facility	8,325			34,847
Payments under revolving credit facility	(8,325		)	(39,422		)
Stock options exercised	986			1,053
Excess tax benefits from stock options exercised and restricted stock awards vested	502			267
Repurchase of stock	(4,817		)	(4,379		)
Cash dividends paid to stockholders	(3,712		)	(2,950		)
Net cash used in financing activities	(7,041		)	(10,584		)
Net (decrease) increase in cash and cash equivalents	(870		)	7,004
Cash and cash equivalents, beginning of period	3,159			13
Cash and cash equivalents, end of period	$	2,289		$	7,017

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