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): April 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 12. Results of Operations and Financial Condition.
On April 19, 2004, Registrant issued a press release on its
results of operation and financial condition for the three months ended
and at March 31, 2004. A copy of such 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: April 27, 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
April 19, 2004
AAON, Inc.
2425 South Yukon Ave. o Tulsa, OK 74107-2728
o Ph: (918) 583-2266 o Fax: (918) 583-6094 o
ohttp://www.aaon.como
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For Further Information:
Jerry R. Levine o Phone: (914) 244-0292 o Fax: (914) 244-0295
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AAON REPORTS HIGHER SALES
AND LOWER EARNINGS
Tulsa, OK, April 19, 2004 - AAON, Inc. (NASDAQ-AAON) today announced its
operating results for the three months ended March 31, 2004, of $37.5 million in
sales and $2.3 million of net income, $0.18 per share, compared to $32.9 million
in sales and $3.5 million of net income, $0.26 per share a year ago. Per share
earnings are on a diluted basis.
Norman H. Asbjornson, President and CEO, stated that "The decrease in earnings
was attributable primarily to an 11.5% decline in gross profit from $8.7 million
(or 26.5% of net sales) in 2003 compared to $7.7 million (or 20.5% of net sales)
in 2004 and a $771,000 (24.1%) increase in SG&A (from $3.2 million in 2003 to
$4.0 million in 2004)." He noted that "The drop in gross profit was principally
due to the continuation of startup costs associated with a new coil project and
sharp increases in steel and copper prices. These higher material costs are
expected to further impact profitability for the remainder of the year. However,
price increases which go into effect in April together with anticipated
reduction of start-up costs of the new coil project, should more than offset
these increased raw material costs by the third quarter. He said that, "The
increase in SG&A was mainly the result of additional warranty expense on repairs
of older units, which will continue at a reduced amount in the second quarter of
2004, and an increase in bad debt expense."
Mr. Asbjornson pointed out that, "Net sales for the first quarter of 2004
increased by $4.6 million or 14.1% compared to the first quarter of 2003." He
said that, "In spite of such sales increase, backlog has continued to rise to
its current record level." He added that, "Based on our current backlog level
and improving outlook for the U.S. economy, we believe sales should remain
higher in 2004, compared to 2003."
This press release contains "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* Three Months Ended*
March 31, 2004 March 31, 2003
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(in thousands, except share and per share data)
Net sales $ 37,494 $ 32,856
Cost of Sales 29,793 24,159
------------------------ ------------------------
Gross profit 7,701 8,697
Selling, general and administrative expenses 3,967 3,196
------------------------ ------------------------
Income from operations 3,734 5,501
Interest expense 17 6
Interest income (81) (58)
Other income (2) (84)
------------------------ ------------------------
Income before income taxes 3,800 5,637
Income tax provision 1,463 2,142
------------------------ ------------------------
Net Income $ 2,337 $ 3,495
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Earnings Per Share:
Basic $ 0.19 $ 0.27
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Diluted $ 0.18 $ 0.26
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Weighted Average Shares Outstanding:
Basic 12,482,186 12,880,299
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Diluted 12,997,022 13,415,455
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*Unaudited
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AAON, Inc.
Consolidated Balance Sheets
March 31, 2004* December 31, 2003
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(In thousands, except share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 201 $ 6,186
Certificate of deposit 10,000 10,000
Accounts receivable, net 22,123 22,553
Inventories, net 22,223 19,711
Prepaid expenses 2,948 2,653
Deferred income tax 3,532 3,532
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Total current assets 61,027 64,635
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PROPERTY, PLANT AND EQUIPMENT
Land 874 874
Buildings 19,837 19,588
Machinery and equipment 44,704 44,329
Furniture and fixtures 3,976 3,944
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Total property, plant & equipment 69,391 68,735
Less: accumulated depreciation 32,834 31,285
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Net property, plant & equipment 36,557 37,450
----------------------- -----------------------
Total Assets $ 97,584 $ 102,085
======================= =======================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $ 882 $ 5,356
Accounts payable 10,987 11,553
Accrued liabilities 12,244 12,357
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Total current liabilities 24,113 29,266
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DEFERRED TAX LIABILITY 5,391 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 12,469,158 and 12,519,733
issued and outstanding at March 31, 2004,
and December 31, 2003, respectively 50 50
Additional paid-in capital - -
Retained earnings 68,030 67,378
----------------------- -----------------------
Total stockholders' equity 68,080 67,428
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Total Liabilities and Stockholders' Equity $ 97,584 $ 102,085
======================= =======================
*Unaudited
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AAON, Inc.
Consolidated Statements of Cash Flows
Three Months Ended Three Months Ended
March 31, 2004* March 31, 2003*
-----------------------------------------------------
(in thousands)
Operating Activities
Net income $ 2,337 $ 3,495
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 1,552 1,238
Provision for losses on accounts receivable 470 82
Loss on disposition of assets 4 -
Changes in assets and liabilities:
Accounts receivable (40) 2,171
Inventories (2,512) (1,247)
Prepaid expenses (295) 20
Accounts payable (566) (126)
Accrued liabilities 241 3,053
------------------------ ------------------------
Net cash provided by operating activities 1,191 8,686
Investing Activities
Proceeds from sale of property, plant and equipment 1 -
Capital expenditures (664) (1,342)
------------------------ ------------------------
Net cash used in investing activities (663) (1,342)
Financing Activities
Borrowings under revolving credit agreement 12,968 6,324
Payments under revolving credit agreement (17,442) (9,890)
Stock options exercised 224 28
Repurchase of stock (2,263) (4,008)
------------------------ ------------------------
Net cash used in financing activities (6,513) (7,546)
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Net decrease in cash (5,985) (202)
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Cash and cash equivalents, beginning of period 6,186 5,071
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Cash and cash equivalents, end of period $ 201 $ 4,869
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*Unaudited
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