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): February 14, 2005
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 February 14, 2005, Registrant issued a press release
concerning its results of operations for the three months and year
ended December 31, 2004, and its financial condition at December 31,
2004.
Item 9.01 Financial Statements and Exhibits.
A copy of Registrant's February 14, 2005, 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: February 14, 2005 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
February 14, 2005
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 2004 OPERATING RESULTS
Tulsa, OK, February 14, 2005 - AAON, Inc. (NASDAQ-AAON) today announced its
operating results for the year 2004. Sales increased 16% to $173.3 million from
$148.9 million in 2003, whereas net income decreased 47% to $7.5 million
compared to $14.2 million in the previous year.
Sales in the fourth quarter of 2004 increased to $45.0 million from $37.8
million in 2003, and net income for the quarter declined to $2.1 million
compared to $3.7 million in 2003.
Earnings per share for 2004 were $0.58 compared to $1.07 in 2003. Earnings for
the fourth quarter of 2004 were $0.16 per share compared to $0.29 per share in
the previous year. Per share earnings are on a diluted basis.
Norman H. Asbjornson, AAON's President/CEO, stated that, "The decrease in 2004
earnings was caused by a number of factors, including startup costs involved
with a new coil project in the first and second quarters, closings of the
Company's Tulsa plant for four days during the second quarter due to computer
and electrical outages, as well as second quarter equipment failures at the
Company's Longview, Texas plant, which reduced coil production needed by the
Tulsa facility, and a 2004 loss of approximately $900,000 generated by AAON
Canada Inc., all of which should be non-recurring, but further, and most
importantly, unprecedented increases in material costs greatly in excess of
product price increases."
Mr. Asbjornson continued by saying, "While we project even greater sales in
2005, we cannot predict the level of expected earnings due to a number of
factors, including the prospect of continued high material costs."
AAON, Inc. is a manufacturer of air-conditioning and heating equipment
consisting of rooftop units, chillers, air-handling units, make-up air units,
heat recovery units, condensing units and coils. Its products serve the new
construction and replacement markets. The Company has successfully gained market
share by offering 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.
(2)
AAON, Inc.
Consolidated Statements of Operations
(unaudited)
Three Months Ended Twelve Months Ended
Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2004 Dec. 31, 2003
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(In thousands, except share and per share data)
Net sales $ 45,021 $ 37,764 $ 173,267 $ 148,845
Cost of sales 37,711 28,532 145,807 112,596
---------------- ---------------- ----------------- ----------------
Gross profit 7,310 9,232 27,460 36,249
Selling, general and
administrative expenses 4,051 4,340 15,214 14,909
---------------- ---------------- ----------------- ----------------
Income from operations 3,259 4,892 12,246 21,340
Interest expense 3 - 38 21
Interest income (9) (87) (183) (346)
Other expense (income) - (21) 12 (188)
---------------- ---------------- ----------------- ----------------
Income before income taxes 3,265 5,000 12,379 21,853
Income tax provision 1,179 1,260 4,858 7,626
---------------- ---------------- ----------------- ----------------
Net income $ 2,086 $ 3,740 $ 7,521 $ 14,227
================ ================ ================= ================
Earnings Per Share:
Basic $ 0.17 $ 0.30 $ 0.60 $ 1.12
================ ================ ================= ================
Diluted $ 0.16 $ 0.29 $ 0.58 $ 1.07
================ ================ ================= ================
Weighted Average Shares Outstanding:
Basic 12,382 12,536 12,435 12,685
================ ================ ================= ================
Diluted 12,831 12,897 12,923 13,251
================ ================ ================= ================
(3)
AAON, Inc.
Consolidated Balance Sheets
(unaudited)
December 31, December 31,
2004 2003
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(In thousands, except share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 994 $ 6,186
Certificate of deposit 3,000 10,000
Accounts receivable, net 27,121 22,553
Inventories, net 20,868 19,711
Prepaid expenses 478 2,653
Deferred income tax 3,537 3,532
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Total current assets 55,998 64,635
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PROPERTY, PLANT AND EQUIPMENT
Land 2,082 874
Buildings 26,805 19,588
Machinery and equipment 52,540 44,329
Furniture and fixtures 4,819 3,944
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Total property, plant & equipment 86,246 68,735
Less: accumulated depreciation 37,017 31,285
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Net property, plant & equipment 49,229 37,450
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Total assets $ 105,227 $ 102,085
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $ - $ 5,356
Current maturities of long-term debt 108 -
Accounts payable 12,882 11,553
Accrued liabilities 15,069 12,357
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Total current liabilities 28,059 29,266
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LONG-TERM DEBT, LESS CURRENT MATURITIES 167 -
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DEFERRED TAX LIABILITY 5,830 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 12,349,583 and 12,519,733
issued and outstanding at December 31, 2004,
and December 31, 2003, respectively 49 50
Additional paid-in capital - -
Accumulated other comprehensive loss, net of tax 247 -
Retained earnings 70,875 67,378
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Total stockholders' equity 71,171 67,428
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Total liabilities and stockholders' equity $ 105,227 $ 102,085
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AAON, Inc.
Consolidated Statements of Cash Flows
(unaudited)
Twelve Months Twelve Months
Ended Ended
Dec. 31, 2004 Dec. 31, 2003
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(in thousands)
OPERATING ACTIVITIES
Net income $ 7,521 $ 14,227
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 5,732 5,435
Provision for losses on accounts receivable 521 467
Provision for excess and obsolete inventories, net - 50
(Gain)/Loss on disposition of assets 4 (28)
Deferred income taxes 434 1,957
Changes in assets and liabilities, net of effects of acquisition:
Accounts receivable (4,002) (714)
Inventories (698) (5,423)
Prepaid expenses 2,175 (2,054)
Accounts payable 1,329 3,135
Accrued liabilities 3,143 (583)
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Net cash provided by operating activities 16,159 16,469
INVESTING ACTIVITIES
Cash paid for acquisition (1,778) -
Proceeds from sale of property, plant and equipment 13 74
Proceeds from matured certificate of deposit 10,000 -
Investment in certificate of deposit (3,000) -
Capital expenditures (16,976) (7,700)
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Net cash used in investing activities (11,741) (7,626)
FINANCING ACTIVITIES
Borrowings under revolving credit facility 45,471 33,742
Payments under revolving credit facility (50,827) (31,952)
Stock options exercised 478 402
Repurchase of stock (4,979) (9,920)
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Net cash used in financing activities (9,857) (7,728)
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Effect of exchange rate on cash 247 -
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Net decrease in cash and cash equivalents (5,192) 1,115
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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 $ 994 $ 6,186
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