 TULSA, Okla., Aug. 06, 2020 GLOBE NEWSWIRE -- TULSA, OK, August 6, 2020 - AAON, INC. NASDAQ-AAON, today announced its results for the second quarter of 2020. Financial Highlights:Three Months Ended June 30, Six Months Ended June 30, 2020 2019 Change 2020 2019 Change in thousands, except share and per share data in thousands, except share and per share data Net sales125,596 119,437 5.2 263,079 233,259 12.8 Gross profit38,131 30,204 26.2 81,078 55,634 45.7 Gross profit 30.4 25.3 30.8 23.9 Selling, general and admin. expenses15,939 12,912 23.4 31,153 26,589 17.2 SGA 12.7 10.8 11.8 11.4 Net income17,804 13,391 33.0 39,657 22,148 79.1 Net income 14.2 11.2 15.1 9.5 Earnings per diluted share0.34 0.25 36.0 0.75 0.42 78.6 Diluted average shares52,750,401 52,747,199 52,885,491 52,589,845 0.6 June 30, December 31, 2020 2019 Change in thousands Backlog103,508 142,747 27.5 Cash cash equivalents restricted cash70,845 44,373 59.7 Total current liabilities76,620 56,028 36.8 Gary Fields, CEO, said It has been a challenging quarter for us. As an essential business, we were able to maintain continuous operations during the quarter but our workforce was impacted by employee absences, most significantly in the latter part of June. These unexpected employee absences resulted in reduced shipments and longer lead times. Our dedicated team members worked hard to overcome the challenges as demonstrated by our positive results reflected above. Our improved efficiency, fiscal responsibility and declining raw material costs helped us improve our gross profit and bottom line.Mr. Fields continued, Thankfully, most of our workforce affected by COVID-19 has recovered and returned to work, resulting in significant improvement in our employee absenteeism levels in the first part of July. We continuously work to keep our workforce safe and healthy. We have implemented several safety procedures concerning COVID-19 including mandatory use of masks, daily temperature scanning and health screens of all employees and visitors at our facilities.Mr. Fields added Our financial condition remains strong as evidenced by our current ratio of 2.9:1 at June 30, 2020. We had unrestricted cash and cash equivalents of 61.3 million as of June 30, 2020, which, along with improved free cash flow, enabled us to declare an 0.19 per share semi-annual cash dividend, paid on July 1, 2020, an 18.8 increase from the 0.16 semi-annual dividend paid last year. Our capital expenditures during the first half of the year were 33.5 million, as compared to 16.8 million for the same period a year ago, and we anticipate our full-year 2020 capital expenditures will total approximately 73.2 million.Mr. Fields concluded, Our incoming order rate has recently softened slightly due to less than optimal lead times and turmoil in the market resulting from COVID-19. We are back on schedule and anticipate orders will increase as our lead times improve during our peak selling season. Uncertainty in the education industry could negatively impact our employee attendance levels as well as our bookings. The outlook for the remainder of the year is hard to predict during these uncertain times. Despite this uncertainty, we remain cautiously optimistic that the year will end with modest revenue growth over 2019.The Company will host a conference call today at 4:15 P.M. Eastern Time to discuss the second quarter 2020 results. To participate, call 1-833-634-8218 code 9699424; or, for rebroadcast available through August 20, 2020, call 1-855-859-2056 code 9699424.About AAON AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermalwater-source heat pumps, coils and controls. Since the founding of AAON in 1988, AAON has maintained a commitment to design, develop, manufacture and deliver heating and cooling products to perform beyond all expectations and demonstrate the value of AAON to our customers. For more information, please visit Statements 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, including risks related to the impact of the error correction, that could cause actual results and developments to differ materially from the forward-looking statements.Contact Information Jerry R. Levine Phone: 914 244-0292 Fax: 914 244-0295 Email: AAON, Inc. and Subsidiaries Consolidated Statements of Income Unaudited Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 in thousands, except share and per share data Net sales125,596 119,437 263,079 233,259 Cost of sales87,465 89,233 182,001 177,625 Gross profit38,131 30,204 81,078 55,634 Selling, general and administrative expenses15,939 12,912 31,153 26,589 Loss gain on disposal of assets 6 62 290 Income from operations22,192 17,286 49,987 28,755 Interest income, net19 31 80 40 Other income expense, net32 17 5 9 Income before taxes22,243 17,334 50,072 28,786 Income tax provision4,439 3,943 10,415 6,638 Net income17,804 13,391 39,657 22,148 Earnings per share: Basic0.34 0.26 0.76 0.43 Diluted0.34 0.25 0.75 0.42 Cash dividends declared per common share:0.19 0.16 0.19 0.16 Weighted average shares outstanding: Basic52,099,694 52,120,272 52,160,348 52,087,626 Diluted52,750,401 52,747,199 52,885,491 52,589,845 AAON, Inc. and Subsidiaries Consolidated Balance Sheets Unaudited June 30, 2020 December 31, 2019 Assetsin thousands, except share and per share data Current assets: Cash and cash equivalents61,284 26,797 Restricted cash9,561 17,576 Accounts receivable, net56,394 67,399 Income tax receivable5,154 772 Note receivable28 29 Inventories, net85,411 73,601 Prepaid expenses and other1,943 1,375 Total current assets219,775 187,549 Property, plant and equipment: Land3,804 3,274 Buildings112,735 101,113 Machinery and equipment260,548 236,087 Furniture and fixtures17,926 16,862 Total property, plant and equipment395,013 357,336 Less: Accumulated depreciation190,585 179,242 Property, plant and equipment, net204,428 178,094 Intangible assets, net155 272 Goodwill3,229 3,229 Right of use assets1,665 1,683 Note receivable555 597 Total assets429,807 371,424 Liabilities and Stockholders Equity Current liabilities: Revolving credit facility Accounts payable19,698 11,759 Dividends payable9,930 Accrued liabilities46,992 44,269 Total current liabilities76,620 56,028 Deferred tax liabilities20,358 15,297 Other long-term liabilities3,794 3,639 New market tax credit obligation6,340 6,320 Commitments and contingencies Stockholders equity: Preferred stock, .001 par value, 5,000,000 shares authorized, no shares issued Common stock, .004 par value, 100,000,000 shares authorized, 52,234,119 and 52,078,515 issued and outstanding at June 30, 2020 and December 31, 2019, respectively209 208 Additional paid-in capital6,451 3,631 Retained earnings316,035 286,301 Total stockholders equity322,695 290,140 Total liabilities and stockholders equity429,807 371,424 AAON, Inc. and Subsidiaries Consolidated Statements of Cash Flows Unaudited Six Months Ended June 30, 2020 2019 Operating Activitiesin thousands Net income39,657 22,148 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization12,340 11,760 Amortization of debt issuance cost20 Provision for losses on accounts receivable, net of adjustments76 128 Provision for excess and obsolete inventories193 1,153 Share-based compensation5,694 7,786 Gain loss on disposition of assets62 290 Foreign currency transaction loss gain30 13 Interest income on note receivable12 26 Deferred income taxes5,061 3,318 Changes in assets and liabilities: Accounts receivable10,929 14,983 Income taxes4,382 2,925 Inventories11,617 585 Prepaid expenses and other568 650 Accounts payable2,893 2,592 Deferred revenue473 172 Accrued liabilities2,423 5,041 Net cash provided by operating activities62,762 35,872 Investing Activities Capital expenditures33,510 16,784 Proceeds from sale of property, plant and equipment61 59 Investment in certificates of deposits 6,000 Maturities of certificates of deposits 2,000 Principal payments from note receivable25 28 Net cash used in investing activities33,424 20,697 Financing Activities Stock options exercised14,173 7,685 Repurchase of stock15,937 10,191 Employee taxes paid by withholding shares1,102 980 Net cash used in financing activities2,866 3,486 Net increase in cash, cash equivalents and restricted cash26,472 11,689 Cash, cash equivalents and restricted cash, beginning of period44,373 1,994 Cash, cash equivalents and restricted cash, end of period70,845 13,683 