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): July 20, 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 July 20, 2004, Registrant issued a press release on its
results of operations and financial condition for the three and six
month periods ended and at June 30, 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: July 21, 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
July 20, 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 SECOND QUARTER
RECORD SALES AND LOWER EARNINGS
Tulsa, OK, July 20, 2004 - AAON, Inc. (NASDAQ-AAON) today announced operating
results for the second quarter and six-month period ended June 30, 2004.
In the quarter, revenues reached a record level, $43,019,000, up 15.6% from
$37,222,000 during the corresponding period in 2003, and net income decreased
53.2% to $1,571,000 or $0.12 per share compared to $3,357,000 or $0.25 per share
for the same period a year ago.
Norman H. Asbjornson, President and CEO, pointed out that "the higher sales were
attributable to a record backlog and a small (1%) contribution of revenues from
AAON Canada, Inc., acquired on May 5, 2004, despite closings of the Company's
Tulsa plant for four days during the period due to computer and electrical
outages. The lower earnings resulted from the continued impact of higher steel
and copper prices and startup costs associated with a new coil project,
equipment failures at the Company's Longview, Texas plant, which prevented coil
production needed by the Tulsa facility, and the above-referenced plant
closings, all of which combined to reduce margins from 23.7% in the second
quarter of 2003 to 14.8% in 2004; and AAON Canada, Inc., incurred a loss of
approximately $100,000."
Net sales for the first six months of 2004 were up 14.9%, $80,513,000, compared
to $70,078,000 in 2003, whereas earnings were down 43.0% from $6,852,000 or
$0.51 per share, compared to $3,908,000 or $0.30 per share. All per share
earnings are on a diluted basis.
Mr. Asbjornson said that, "the outlook is for higher sales and improved earnings
during the last half of 2004, compared to the first half year results."
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 Six Months Ended
June 30, 2004* June 30, 2003* June 30, 2004* June 30, 2003*
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(In thousands, except share and per share data)
Net sales $ 43,019 $ 37,222 $ 80,513 $ 70,078
Cost of Sales 36,664 28,414 66,457 52,573
---------------- ---------------- ---------------- ----------------
Gross profit 6,355 8,808 14,056 17,505
Selling, general and
administrative expenses 3,791 3,512 7,758 6,708
---------------- ---------------- ---------------- ----------------
Income from operations 2,564 5,296 6,298 10,797
Interest expense 10 9 27 15
Interest income (83) (117) (164) (175)
Other expense (income) 27 (38) 25 (122)
---------------- ---------------- ---------------- ----------------
Income before income taxes 2,610 5,442 6,410 11,079
Income tax provision 1,039 2,085 2,502 4,227
---------------- ---------------- ---------------- ----------------
Net Income $ 1,571 $ 3,357 $ 3,908 $ 6,852
================ ================ ================ ================
Earnings Per Share:
Basic $ 0.13 $ 0.26 $ 0.31 $ 0.53
================ ================ ================ ================
Diluted $ 0.12 $ 0.25 $ 0.30 $ 0.51
================ ================ ================ ================
Weighted Average Shares Outstanding:
Basic 12,457,309 12,738,484 12,469,747 12,808,535
================ ================ ================ ================
Diluted 12,967,457 13,239,864 12,982,239 13,326,803
================ ================ ================ ================
*Unaudited
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AAON, Inc.
Consolidated Balance Sheets
June 30, 2004* December 31, 2003
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(in thousands, except share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 17 $ 6,186
Certificate of deposit 3,500 10,000
Accounts receivable, net 24,623 22,553
Inventories, net 21,917 19,711
Prepaid expenses 762 2,653
Deferred income tax 3,532 3,532
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Total current assets 54,351 64,635
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PROPERTY, PLANT AND EQUIPMENT, at cost:
Land 1,254 874
Buildings 22,022 19,588
Machinery and equipment 49,872 44,329
Furniture and fixtures 4,046 3,944
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Total property, plant and equipment 77,194 68,735
Less: accumulated depreciation 34,373 31,285
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Net property, plant and equipment 42,821 37,450
Goodwill 115 -
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Total assets $ 97,287 $ 102,085
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $ - $ 5,356
Accounts payable 9,798 11,553
Accrued liabilities 13,113 12,357
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Total current liabilities 22,911 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 12,441,432 and 12,519,733 issued and
outstanding at June 30, 2004,
and December 31, 2003, respectively 50 50
Additional paid-in capital - -
Accumulated other comprehensive loss (6) -
Retained earnings 68,941 67,378
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Total stockholders' equity 68,985 67,428
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Total Liabilities and Stockholders' Equity $ 97,287 $ 102,085
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*Unaudited
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AAON, Inc.
Consolidated Statements of Cash Flows
Six Months Ended* Six Months Ended*
June 30, 2004 June 30, 2003
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(in thousands)
Operating Activities
Net income $ 3,908 $ 6,852
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 3,088 2,540
Provision for losses on accounts receivable 282 860
Loss on disposition of assets 4 -
Changes in assets and liabilities, net of effects
of acquisition:
Accounts receivable (1,265) (5,857)
Inventories (1,862) 429
Prepaid expenses 1,891 272
Accounts payable (1,755) 398
Accrued liabilities 711 1,725
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Net cash provided by operating activities 5,002 7,219
Investing Activities
Cash paid for acquisition (1,778) -
Proceeds from sale of property, plant and equipment 13 -
Proceeds from matured certificate of deposit 6,500 -
Capital expenditures (8,199) (3,606)
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Net cash used in investing activities (3,464) (3,606)
Financing Activities
Borrowings under revolving credit facility 29,265 20,388
Payments under revolving credit facility (34,621) (21,829)
Payments on long-term debt - -
Stock options exercised 632 209
Repurchase of stock (2,977) (6,775)
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Net cash used in financing activities (7,707) (8,007)
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Effect of exchange rate on cash (6) -
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Net decrease in cash and cash equivalents (6,169) (4,394)
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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 $ 17 $ 677
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*Unaudited
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