AAON, Inc., and Subsidiaries Consolidated Statements of Income Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2007 2006 2007 2006 ----------- ----------- ----------- ----------- (in thousands, except share and per share data) Net sales $ 62,147 $ 54,550 $ 262,517 $ 231,460 Cost of sales 49,738 44,754 205,148 187,570 ----------- ----------- ----------- ----------- Gross profit 12,409 9,796 57,369 43,890 Selling, general and administrative expenses 5,194 2,678 21,703 18,059 ----------- ----------- ----------- ----------- Income from operations 7,215 7,118 35,666 25,831 Interest expense - (23) (10) (81) Interest income 1 - 8 24 Other income (expense), net (245) 3 (321) 424 ----------- ----------- ----------- ----------- Income before income taxes 6,971 7,098 35,343 26,198 Income tax provision 2,391 2,560 12,187 9,065 ----------- ----------- ----------- ----------- Net income $ 4,580 $ 4,538 $ 23,156 $ 17,133 =========== =========== =========== =========== Earnings per share: Basic* $ 0.25 $ 0.25 $ 1.24 $ 0.93 =========== =========== =========== =========== Diluted* $ 0.24 $ 0.24 $ 1.22 $ 0.90 =========== =========== =========== =========== Weighted average shares outstanding: Basic* 18,518,216 18,456,437 18,628,029 18,456,108 =========== =========== =========== =========== Diluted* 18,767,701 18,929,086 18,927,044 18,967,594 =========== =========== =========== =========== * Reflects three-for-two stock split effective August 21, 2007. AAON, Inc., and Subsidiaries Consolidated Balance Sheets December 31, December 31, 2007 2006 ------------- ------------- (in thousands, except share and per share data) Assets Current assets: Cash and cash equivalents $ 879 $ 288 Accounts receivable, net 38,813 36,748 Inventories, net 31,849 29,502 Prepaid expenses and other 442 267 Deferred tax asset 4,312 3,954 ------------- ------------- Total current assets 76,295 70,759 ------------- ------------- Property, plant and equipment Land 2,354 2,196 Buildings 32,211 31,272 Machinery and equipment 82,872 74,053 Furniture and fixtures 6,912 5,883 ------------- ------------- Total property, plant and equipment 124,349 113,404 Less: Accumulated depreciation 63,579 54,182 ------------- ------------- Property, plant and equipment, net 60,770 59,222 Note receivable, long-term 75 75 ------------- ------------- Total assets $ 137,140 $ 130,056 ============= ============= Liabilities & Stockholders' Equity Current liabilities: Current maturities of long-term debt $ 91 $ 59 Accounts payable 15,059 15,821 Dividends payable 2,943 2,465 Accrued liabilities 19,414 16,058 ------------- ------------- Total current liabilities 37,507 34,403 Other long-term liabilities 239 - Deferred tax liability 3,974 4,061 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, 18,054,246 and 18,508,248 issued and outstanding at December 31, 2007 and 2006, respectively* 73 74 Additional paid-in capital - 185 Accumulated other comprehensive income 1,942 667 Retained earnings 93,405 90,666 ------------- ------------- Total stockholders' equity 95,420 91,592 ------------- ------------- Total liabilities and stockholders' equity $ 137,140 $ 130,056 ============= ============= * Reflects three-for-two stock split effective August 21, 2007. AAON, Inc., and Subsidiaries Consolidated Statements of Cash Flows Twelve Twelve Months Ended Months Ended December 31, December 31, 2007 2006 ------------ ------------ (in thousands) OPERATING ACTIVITIES Net income $ 23,156 $ 17,133 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 9,665 9,146 Provision for losses on accounts receivable 203 (59) Share-based compensation 582 500 Excess tax benefits from stock options exercised (2,998) (1,852) Gain on disposition of assets (108) - Deferred income taxes (124) (510) Changes in assets and liabilities: Accounts receivable (1,760) (4,197) Inventories, net (2,095) (5,790) Prepaid expenses and other (172) 776 Accounts payable (1,370) 4,178 Accrued liabilities 6,268 103 ------------ ------------ Net cash provided by operating activities 31,247 19,428 INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 123 - Proceeds from matured certificate of deposit - 3,000 Investment in certificate of deposit - (2,000) Capital expenditures (10,874) (17,781) ------------ ------------ Net cash used in investing activities (10,751) (16,781) FINANCING ACTIVITIES Borrowings under revolving credit facility 12,142 53,706 Payments under revolving credit facility (12,142) (53,706) Borrowings (payments) of long-term debt 271 (108) Stock options exercised 2,426 1,256 Excess tax benefits from stock options exercised 2,998 1,852 Repurchase of stock (20,773) (3,855) Cash dividends paid to stockholders (4,958) (2,478) ------------ ------------ Net cash used in financing activities (20,036) (3,333) ------------ ------------ Effect of exchange rate on cash 131 137 ------------ ------------ Net increase (decrease) in cash and cash equivalents 591 (549) ------------ ------------ Cash and cash equivalents, beginning of year 288 837 ------------ ------------ Cash and cash equivalents, end of year $ 879 $ 288 ============ ============
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