AAON Reports Record Sales and Earnings For the First Quarter of 2020
May 07 2020 - 7:00AM
AAON, INC. (NASDAQ-AAON), today announced its results for the first
quarter of 2020.
Financial Highlights: |
Three Months Ended March 31, |
|
% |
|
2020 |
|
2019 |
|
Change |
|
(in thousands, except share and per share data) |
Net sales |
$ |
137,483 |
|
|
$ |
113,822 |
|
|
20.8 |
% |
Gross profit |
42,947 |
|
|
25,430 |
|
|
68.9 |
% |
Gross profit % |
31.2 |
% |
|
22.3 |
% |
|
|
Selling, general and
administrative expenses |
$ |
15,214 |
|
|
$ |
13,677 |
|
|
11.2 |
% |
Net income |
21,853 |
|
|
8,757 |
|
|
149.5 |
% |
Net income % |
15.9 |
% |
|
7.7 |
% |
|
|
Earnings per diluted
share |
$ |
0.41 |
|
|
$ |
0.17 |
|
|
141.2 |
% |
Diluted average shares |
52,871,419 |
|
|
52,369,660 |
|
|
1.0 |
% |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
% |
|
2020 |
|
2019 |
|
Change |
|
(in thousands) |
|
|
Backlog |
$ |
119,642 |
|
|
$ |
142,747 |
|
|
(16.2 |
)% |
Cash & cash equivalents
& Restricted cash |
52,145 |
|
|
44,373 |
|
|
17.5 |
% |
|
|
|
|
|
|
|
|
|
Gary Fields, President, said "We have been
extremely fortunate during these trying times. As discussed
in the fourth quarter, we were able to increase our manufacturing
capacity with the addition of several Salvagnini sheet metal
fabrication machines which put us in a beneficial position heading
into the first quarter. As a result, we have been able to
reduce lead times and our Tulsa plant has
nearly 100% on time deliveries as of the end of the
quarter. All these factors gave us the ability to swiftly
respond to the needs of the public as an essential business. Our
team worked around-the-clock to produce and deliver multiple orders
for temporary hospitals in the New York area."
Mr. Fields continued, "The increased sales
volume has helped absorb our fixed overhead costs and improve our
gross profit. Our selling, general and administrative
expenses have increased due to the profit sharing and other
incentives we pay our employees as a result of our record
earnings. To date, we have seen minimal business
disruption from COVID-19. While the future may hold some
amount of uncertainty, we continue to work hard to keep our work
environment safe so we can meet the needs of our customers and
protect the health and well-being of our employees."
The decreased backlog as of March 31, 2020
compared to year-end 2019 resulted from both accelerated shipments
during the first quarter and a planned reduction in the backlog to
facilitate more acceptable lead-times on deliveries. While
business continues to remain firm, evidenced by our 92% of expected
order intake in the first quarter of 2020, we are closely
monitoring and adapting to COVID-19 related variables.
Norman H. Asbjornson, CEO, added "Our financial
condition remains strong as evidenced by our current ratio of 3.1:1
at March 31, 2020. Furthermore, we have
unrestricted cash and cash equivalents of $35.7
million as of March 31, 2020, to
ensure that our future investment in the Company remains fiscally
sound."
The Company will host a conference call today at
4:15 P.M. (Eastern Time) to discuss the first quarter 2020 results.
To participate, call 1-888-241-0551 (code 5395749); or, for
rebroadcast available through May 13, 2020, call 1-855-859-2056
(code 5395749).
About AAONAAON, Inc. is 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. Since the founding of AAON in 1988, AAON
has maintained a commitment to design, develop, manufacture and
deliver heating and cooling products to perform beyond all
expectations and demonstrate the value of AAON to our customers.
For more information, please visit www.AAON.com.
Forward-Looking
StatementsCertain 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, including risks related to the
impact of the error correction, that could cause actual results and
developments to differ materially from the forward-looking
statements.
Contact InformationJerry R.
LevinePhone: (914) 244-0292Fax: (914)
244-0295Email: jrladvisor@yahoo.com
AAON, Inc. and Subsidiaries |
Consolidated Statements of Income |
(Unaudited) |
|
Three Months Ended March
31, |
|
2020 |
|
2019 |
|
(in thousands, except share and per share data) |
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 disposal 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 |
$ |
0.42 |
|
|
$ |
0.17 |
|
Diluted |
$ |
0.41 |
|
|
$ |
0.17 |
|
Weighted average shares
outstanding: |
|
|
|
Basic |
52,071,839 |
|
|
51,992,150 |
|
Diluted |
52,871,419 |
|
|
52,369,660 |
|
|
|
|
|
|
|
AAON, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(Unaudited) |
|
March 31, 2020 |
|
December 31, 2019 |
Assets |
(in thousands, except share and per share data) |
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 |
— |
|
|
772 |
|
Note 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 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Revolving credit facility |
$ |
— |
|
|
$ |
— |
|
Accounts payable |
13,501 |
|
|
11,759 |
|
Accrued liabilities |
50,684 |
|
|
44,269 |
|
Total current liabilities |
64,185 |
|
|
56,028 |
|
Deferred tax liabilities |
15,130 |
|
|
15,297 |
|
Other long-term
liabilities |
3,652 |
|
|
3,639 |
|
New market tax credit
obligation |
6,330 |
|
|
6,320 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity: |
|
|
|
Preferred stock, $.001 par value, 5,000,000 shares authorized, no
shares issued |
— |
|
|
— |
|
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 |
— |
|
|
3,631 |
|
Retained earnings |
306,115 |
|
|
286,301 |
|
Total stockholders'
equity |
306,323 |
|
|
290,140 |
|
Total liabilities and
stockholders' equity |
$ |
395,620 |
|
|
$ |
371,424 |
|
|
|
|
|
|
|
|
|
AAON, Inc. and Subsidiaries |
Consolidated Statements of Cash Flows |
(Unaudited) |
|
Three Months Ended March
31, |
|
2020 |
|
2019 |
Operating
Activities |
(in thousands) |
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 cost |
10 |
|
|
— |
|
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 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 |
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 |
|
|
|
|
|
|
|
|
|
AAON (NASDAQ:AAON)
Historical Stock Chart
From Aug 2024 to Sep 2024
AAON (NASDAQ:AAON)
Historical Stock Chart
From Sep 2023 to Sep 2024