SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 19, 2004
AAON, INC.
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(Exact name of registrant as specified in its charter)
Nevada 0-18953 87-0448736
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2425 South Yukon, Tulsa, Oklahoma 74107
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(Address of principal executive offices)
Registrant's telephone number, including area code: (918) 583-2266
Item 2.02 Results of Operations and Financial Condition.
On October 19, 2004, Registrant issued a press release
concerning its results of operations for the three and nine month
periods ended and at September 30, 2004.
Item 9.01 Financial Statements and Exhibits.
A copy of Registrant's October 19, 2004, press release is
attached as Exhibit "A" hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AAON, INC.
Date: October 19, 2004 By: /s/ John B. Johnson, Jr.
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John B. Johnson, Jr., Secretary
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EXHIBIT "A"
NEWS BULLETIN
FOR IMMEDIATE RELEASE
October 19, 2004
AAON, Inc.
2425 South Yukon Ave. o Tulsa, OK 74107-2728
o Ph: (918) 583-2266 o Fax: (918) 583-6094 o
o http://www.aaon.com o
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For Further Information:
Jerry R. Levine o Phone: (914) 244-0292 o Fax: (914) 244-0295
Email: jerry.levine@worldnet.att.net
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AAON REPORTS THIRD QUARTER
RECORD SALES AND LOWER EARNINGS
Tulsa, OK, October 19, 2004 - AAON, Inc. (NASDAQ-AAON)
In the quarter, revenues reached a record level, $47,733,000, up 16.4% from
$41,003,000 during the corresponding period in 2003, and net income decreased
58.0% to $1,527,000 or $0.12 per share compared to $3,635,000 or $0.27 per share
for the same period a year ago.
Norman H. Asbjornson, President and CEO, stated that, "due to further increases
in material costs during the third quarter, recent product price increases did
not yield the anticipated margin improvement and additional product price
increases will be necessary. It is unclear what impact further product price
increases will have on sales volume in the future."
Net sales for the first nine months of 2004 were up 15.5%, $128,246,000,
compared to $111,081,000 in 2003, whereas earnings were down 48.2% from
$10,487,000 or $0.79 per share, to $5,435,000 or $0.42 per share. All per share
earnings are on a diluted basis.
Mr. Asbjornson said, "sales in the third quarter, together with the Company's
current backlog, will produce record second half of 2004 and yearly sales;
however, due to ongoing material cost increases, earnings in the second half of
2004 will only approximate earnings in the first half of the year."
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.
Consolidated Statements of Operations
Three Months Ended Nine Months Ended
Sept. 30, 2004* Sept. 30, 2003* Sept. 30, 2004* Sept. 30, 2003*
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(in thousands, except share and per share data)
Net sales $ 47,733 $ 41,003 $ 128,246 $ 111,081
Cost of Sales 41,639 31,491 108,096 84,064
---------------- ---------------- ---------------- ----------------
Gross profit 6,094 9,512 20,150 27,017
Selling, general and
administrative expenses 3,405 3,861 11,163 10,569
---------------- ---------------- ---------------- ----------------
Income from operations 2,689 5,651 8,987 16,448
Interest expense 8 6 35 21
Interest income (10) (84) (174) (259)
Other expense (income) (13) (45) 12 (167)
---------------- ---------------- ---------------- ----------------
Income before income taxes 2,704 5,774 9,114 16,853
Income tax provision 1,177 2,139 3,679 6,366
---------------- ---------------- ---------------- ----------------
Net Income $ 1,527 $ 3,635 $ 5,435 $ 10,487
================ ================ ================ ================
Earnings Per Share:
Basic $ 0.12 $ 0.29 $ 0.44 $ 0.82
================ ================ ================ ================
Diluted $ 0.12 $ 0.27 $ 0.42 $ 0.79
================ ================ ================ ================
Weighted Average Shares Outstanding:
Basic 12,420,941 12,593,711 12,453,360 12,736,140
================ ================ ================ ================
Diluted 12,898,497 13,292,444 12,954,207 13,314,563
================ ================ ================ ================
*Unaudited
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AAON, Inc.
Consolidated Balance Sheets
September 30, 2004* December 31, 2003
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(in thousands, except share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 13 $ 6,186
Certificate of deposit 2,000 10,000
Accounts receivable, net 31,292 22,553
Inventories, net 21,657 19,711
Prepaid expenses 440 2,653
Deferred income tax 3,781 3,532
------------------------- -------------------------
Total current assets 59,183 64,635
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PROPERTY, PLANT AND EQUIPMENT:
Land 2,045 874
Buildings 24,914 19,588
Machinery and equipment 51,363 44,329
Furniture and fixtures 3,880 3,944
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Total property, plant & equipment 82,202 68,735
Less: accumulated depreciation 35,760 31,285
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Net property, plant & equipment 46,442 37,450
Total assets $ 105,625 $ 102,085
========================= =========================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $ 3,203 $ 5,356
Accounts payable 11,020 11,553
Accrued liabilities 16,872 12,357
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Total current liabilities 31,095 29,266
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DEFERRED TAX LIABILITY 4,685 5,391
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STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par, 5,000,000 shares
authorized, no shares issued - -
Common Stock, $.004 par, 50,000,000 shares authorized,
and 12,405,598 and 12,519,733 issued and
outstanding at September 30, 2004, and
December 31, 2003, respectively 50 50
Additional paid-in capital - -
Accumulated other comprehensive income 24 -
Retained Earnings 69,771 67,378
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Total stockholders' equity 69,845 67,428
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Total liabilities and stockholders' equity $ 105,625 $ 102,085
========================= =========================
*Unaudited
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AAON, Inc.
Consolidated Statements of Cash Flows
Nine Months Ended Nine Months Ended
Sept. 30, 2004* Sept. 30, 2003*
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(in thousands)
Operating Activities
Net income $ 5,435 $ 10,487
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 4,474 3,894
Provision for losses on accounts receivable 535 (224)
Loss on disposition of assets 4 -
Deferred income taxes (955) -
Changes in assets and liabilities net of effects of
acquisition:
Accounts receivable (8,187) (1,876)
Inventories (1,487) 158
Prepaid expenses 2,213 (491)
Accounts payable (533) 1,166
Accrued liabilities 4,470 2,801
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Net cash provided by operating activities 5,969 15,915
Investing Activities
Cash paid for acquisition (1,778) -
Proceeds from sale of property, plant and equipment 13 -
Proceeds from matured certificate of deposit 10,000 -
Investment in certificate of deposit (2,000) -
Capital expenditures (13,206) (3,964)
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Net cash used in investing activities (6,971) (3,964)
Financing Activities
Borrowings under revolving credit agreement 42,759 26,862
Payments under revolving credit agreement (44,912) (30,428)
Stock options exercised 965 292
Repurchase of stock (4,007) (9,132)
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Net cash used in financing activities (5,195) (12,406)
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Effect of exchange rate on cash 24 -
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Net decrease in cash and cash equivalents (6,173) (455)
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Cash and cash equivalents, beginning of year 6,186 5,071
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Cash and cash equivalents, end of year $ 13 $ 4,616
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*Unaudited
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