AAON Reports Record Earnings

• Press Release
• Source: AAON
• On 7:00 am EDT, Wednesday March 11, 2009

TULSA, OK--(MARKET WIRE)--Mar 11, 2009 -- AAON, Inc. (NasdaqGS:AAON - News) today announced its operating results for the year 2008. Sales increased 7% to $279.7 million from $262.5 million in 2007, and net income increased 23% to $28.6 million compared to $23.2 million in the previous year. Both sales and net income were all-time record highs.

Related Quotes Symbol Price Change AAON 19.13 -0.13 {"s" : "aaon","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Norman H. Asbjornson, President and CEO, stated that, "The increase in sales was attributable to our diversified customer mix, an excellent response to many of our new and redesigned products and price increases. The increase in net income resulted from both higher volume and improved productivity."

Sales in the fourth quarter of 2008 declined by 3% to $60.2 million, from $62.1 million in 2007, while net income for the fourth quarter increased to $6.0 million, up 30% compared to $4.6 million in 2007. Net income was the highest for any fourth quarter in the Company's history.

Earnings per diluted share for 2008 were $1.60 compared to $1.22 in 2007, based upon 17.9 million and 18.9 million diluted shares outstanding, respectively. Earnings for the fourth quarters of 2008 and 2007 were $0.35 and $0.24 per diluted share, based upon 17.3 million and 18.8 million diluted shares outstanding, respectively.

Mr. Asbjornson said, "While we expect a very good first quarter of 2009, due to uncertain market conditions it is too early to predict outcomes for the balance of this year."

AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units and coils. Its products serve the new construction and replacement markets. The Company has successfully gained market share through its "semi-custom" product lines, which offer the customer value, quality, function, serviceability and efficiency.

The Company will host a conference call today at 4:15 P.M. EDT to discuss year 2008 and the fourth quarter results. To participate, call 1-877-852-6576.

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.

 
                       AAON, Inc., and Subsidiaries
                     Consolidated Statements of Income

                                 Three Months Ended   Twelve Months Ended
                                December   December   December   December
                                31, 2008   31, 2007   31, 2008   31, 2007
                                ---------  ---------  ---------  ---------
                                  (in thousands, except per share data)

Net sales                       $  60,209  $  62,147  $ 279,725  $ 262,517

Cost of sales                      46,693     49,738    212,549    205,148
                                ---------  ---------  ---------  ---------

  Gross profit                     13,516     12,409     67,176     57,369

Selling, general and
 administrative expenses           4,463      5,194      23,788     21,703
                                ---------  ---------  ---------  ---------

  Income from operations            9,053      7,215     43,388     35,666

Interest expense                      (13)         -        (71)       (10)

Interest income                         -          1         27          8

Other income (expense), net           308       (245)       724       (321)
                                ---------  ---------  ---------  ---------

Income before income taxes          9,348      6,971     44,068     35,343

Income tax provision                3,308      2,391     15,479     12,187
                                ---------  ---------  ---------  ---------

  Net income                    $   6,040  $   4,580  $  28,589  $  23,156
                                =========  =========  =========  =========

Earnings per share:
 Basic                          $    0.35  $    0.25  $    1.63  $    1.24
                                =========  =========  =========  =========
 Diluted                        $    0.35  $    0.24  $    1.60  $    1.22
                                =========  =========  =========  =========

Cash dividends declared
 per common share:              $    0.16  $    0.16  $    0.32  $    0.32
                                =========  =========  =========  =========

Weighted average shares
 outstanding:
 Basic                             17,196     18,518     17,560     18,628
                                =========  =========  =========  =========
 Diluted                           17,338     18,768     17,855     18,927
                                =========  =========  =========  =========





                      AAON, Inc., and Subsidiaries
                       Consolidated Balance Sheets

                                                December 31,   December 31,
                                                    2008          2007
                                                ------------- -------------
                                                (in thousands, except share
                                                    and per share data)
Assets
Current assets:
   Cash and cash equivalents                    $         269 $         879
   Accounts receivable, net                            38,804        38,813
   Inventories, net                                    36,382        31,849
   Prepaid expenses and other                             428           442
   Deferred tax assets                                  4,235         4,312
                                                ------------- -------------
Total current assets                                   80,118        76,295

Property, plant and equipment
   Land                                                 2,153         2,354
   Buildings                                           36,371        32,211
   Machinery and equipment                             87,219        82,872
   Furniture and fixtures                               7,076         6,912
                                                ------------- -------------
     Total property, plant and equipment              132,819       124,349
     Less:  Accumulated depreciation                   72,269        63,579
                                                ------------- -------------
     Property, plant and equipment, net                60,550        60,770
   Note receivable, long-term                              75            75
                                                ------------- -------------
Total assets                                    $     140,743 $     137,140
                                                ============= =============
Liabilities & Stockholders' Equity
Current liabilities:
   Revolving credit facility                    $       2,901 $           -
   Current maturities of long-term debt                    91            91
   Accounts payable                                    14,715        15,059
   Dividends payable                                    2,773         2,943
   Accrued liabilities                                 19,038        19,414
                                                ------------- -------------
Total current liabilities                              39,518        37,507
Other long-term liabilities                               121           239
Deferred tax liabilities                                4,582         3,974
Commitments and contingencies
Stockholders' equity:
   Preferred stock, $.001 par value, 7,500,000
    shares authorized, no shares issued
   Common stock, $.004 par value, 75,000,000
    shares authorized, 17,208,733 and
    18,054,246 issued and outstanding at
    December 31, 2008 and 2007, respectively               71            73
   Additional paid-in capital                             538             -
   Accumulated other comprehensive income, net of
    tax                                                   778         1,942
   Retained earnings                                   95,135        93,405
                                                ------------- -------------
Total stockholders' equity                             96,522        95,420
                                                ------------- -------------
Total liabilities and stockholders' equity      $     140,743 $     137,140
                                                ============= =============





                      AAON, Inc., and Subsidiaries
                 Consolidated Statements of Cash Flows

                                              Twelve Months  Twelve Months
                                                 Ended          Ended
                                               December 31,   December 31,
                                                  2008           2007
                                              -------------  -------------
                                                     (in thousands)
Operating Activities
 Net income                                   $      28,589  $      23,156
  Adjustments to reconcile net income to
   net cash provided by operating activities:
    Depreciation                                      9,412          9,665
    Provision for losses on accounts
     receivable                                         547            203
    Share-based compensation                            750            582
    Excess tax benefits from stock options
     exercised and restricted stock awards
     vested                                          (1,613)        (2,998)
    Gain on disposition of assets                       (27)          (108)
    Deferred income taxes                               160           (124)
    Changes in assets and liabilities:
      Accounts receivable                              (905)        (1,760)
      Inventories, net                               (4,779)        (2,095)
      Prepaid expenses and other                         13           (172)
      Accounts payable                                  449         (1,370)
      Accrued liabilities                               851          6,268
                                              -------------  -------------
 Net cash provided by operating activities           33,447         31,247
                                              -------------  -------------


Investing Activities
 Proceeds from sale of property, plant and
  equipment                                              17            123
 Capital expenditures                                (9,610)       (10,874)
                                              -------------  -------------
 Net cash used in investing activities               (9,593)       (10,751)
                                              -------------  -------------

Financing Activities
 Borrowings under revolving credit facility          46,865         12,142
 Payments under revolving credit facility           (43,964)       (12,142)
 Borrowings (payments) of long-term debt               (118)           271
 Stock options exercised                              1,696          2,426
 Excess tax benefits from stock options
  exercised and restricted stock awards vested        1,613          2,998
 Repurchase of stock                                (24,761)       (20,773)
 Cash dividends paid to stockholders                 (5,791)        (4,958)
                                              -------------  -------------
 Net cash used in financing activities              (24,460)       (20,036)
                                              -------------  -------------
Effect of exchange rate on cash                          (4)           131
                                              -------------  -------------
Net increase (decrease) in cash and cash
 equivalents                                           (610)           591
                                              -------------  -------------
Cash and cash equivalents, beginning of year            879            288
                                              -------------  -------------
Cash and cash equivalents, end of period      $         269  $         879
                                              =============  =============

     For Further Information:
     Jerry R. Levine
     Phone: (914) 244-0292
     Fax: (914) 244-0295