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AAON Reports Record Sales and Earnings For 2020
来源: Nasdaq GlobeNewswire / 25 2月 2021 07:00:02 America/New_York
TULSA, Okla., Feb. 25, 2021 (GLOBE NEWSWIRE) -- AAON, INC. (NASDAQ-AAON), today announced its results for the fourth quarter of 2020.
Financial Highlights: Three Months Ended
December 31,% Years Ending
December 31,% 2020 2019 Change 2020 2019 Change (in thousands, except share and per share data) (in thousands, except share and per share data) Net sales $ 116,700 $ 122,574 (4.8 )% $ 514,551 $ 469,333 9.6 % Gross profit 33,923 36,381 (6.8 )% 155,849 119,425 30.5 % Gross profit % 29.1 % 29.7 % 30.3 % 25.4 % Selling, general and admin. expenses $ 14,622 $ 13,114 11.5 % $ 60,491 $ 52,077 16.2 % SG&A % 12.5 % 10.7 % 11.8 % 11.1 % Net income* 18,892 17,273 9.4 % 79,009 53,711 47.1 % Net income % 16.2 % 14.1 % 15.4 % 11.4 % Effective Tax Rate 26.6 % 25.6 % 22.5 % 19.9 % Earnings per diluted share* $ 0.35 $ 0.33 6.1 % $ 1.49 $ 1.02 46.1 % Diluted average shares 53,469,759 52,701,202 1.5 % 53,061,169 52,635,415 0.8 % *Includes $4.1 million or $0.08 per share related to a gain from insurance proceeds December 31, December 31, % 2020 2019 Change (in thousands) Backlog $ 74,417 $ 142,747 (47.9 )% Cash & cash equivalents & restricted cash 82,288 44,373 85.4 % Total current liabilities 59,033 56,028 5.4 % Net sales for the fourth quarter 2020 decreased to $116.7 million from $122.6 million in 2019 primarily as a result of this year's six additional days of planned plant holiday closure at the end of December 2020. The Company reported diluted EPS of $0.35, up 6.1% from $0.33 in the prior year period. The Company had a gain of $4.1 million, net of profit sharing and taxes, associated with insurance proceeds related to a damaged roof incurred by adverse weather earlier in the year, which impacted our diluted EPS by $0.08.
The Company finished the quarter with a backlog of $74.4 million. The decline in backlog was related to initiatives made to improve productivity and lead times to meet customer delivery expectations. New bookings in the quarter increased 6% compared to the same period one year ago. As of February 1, 2021, our backlog was approximately $103.8 million, compared to $129.2 million at February 1, 2020.
For the twelve months ending December 31, 2020, sales were a record $514.6 million, an increase of 9.6% compared with $469.3 million in 2019. Diluted earnings per share increased 46.1% to $1.49.
Gary Fields, President and CEO, said, "We are pleased to report all-time record sales and earnings in 2020 compared to any other year in our Company's history. I am especially proud we achieved these results in a year that presented many challenges to the Company and our end-markets. Achieving organic sales growth of nearly 10% while simultaneously improving our gross margins by 490 basis points to 30.3% is truly an achievement. At the same time, we continued to invest in growth as our capex spend for the year was up 82.4%, amounting to 13.2% of sales."
Mr. Fields continued, "Our fourth quarter results demonstrate demand slowed as we finished the year. The outlook for 2021 continues to present uncertainty, especially for the first half of the year. Architectural billings and nonresidential construction starts in 2020 suggest new construction demand will be soft, particularly in end-markets significantly impacted by the COVID-19 pandemic such as the hospitality and office building markets."
Mr. Fields added, "However, new bookings in the fourth quarter still grew year-over-year 6% and demand so far in 2021 has been surprisingly solid. Furthermore, we are starting to see positive signs in our replacement business and certain end-markets like data centers, warehouses and healthcare. We are also well positioned to take advantage of our customers' increased focus on indoor air quality to address COVID challenges, which we expect will drive incremental demand. Finally, ongoing progress in our transition from entrepreneurial leadership to a collaborative team-based management approach, a strengthening sales channel, improved productivity and lead times, new capacity at our Longview, Texas facility and a strong product development pipeline keeps us optimistic on the outlook of our business. While we believe demand will be soft to start the year, we think activity should be moderate in the first half and then accelerate in the second half."
The Company finished 2020 in a strong financial position as evidenced by a current ratio of 3.7:1 at December 31, 2020. We had no debt and unrestricted cash and cash equivalents of $79.0 million as of December 31, 2020. Our capital expenditures during the twelve months ended December 31, 2020 were $67.8 million, as compared to $37.2 million for the same period a year ago, and we anticipate our full-year 2021 capital expenditures will total approximately $70.7 million.
The Company will host a conference call today at 4:15 P.M. (Eastern Time) to discuss the fourth quarter 2020 results. To participate, call 1-833-674-0554 (code 3448509); or, for rebroadcast available through March 5, 2021, call 1-855-859-2056 (code 3448509).
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, geothermal/water-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 www.AAON.com.Forward-Looking 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
Joseph Mondillo
Director of Investor Relations
Phone: (617) 877-6346
Email: joseph.mondillo@aaon.comAAON, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) Three Months Ended
December 31,Years Ending
December 31,2020 2019 2020 2019 (in thousands, except share and per share data) Net sales $ 116,700 $ 122,574 $ 514,551 $ 469,333 Cost of sales 82,777 86,193 358,702 349,908 Gross profit 33,923 36,381 155,849 119,425 Selling, general and administrative expenses 14,622 13,114 60,491 52,077 (Gain) loss on disposal of assets and insurance recoveries (6,417 ) 41 (6,478 ) 337 Income from operations 25,718 23,226 101,836 67,011 Interest income, net (2 ) 17 88 66 Other income (expense), net 31 (30 ) 51 (46 ) Income before taxes 25,747 23,213 101,975 67,031 Income tax provision 6,855 5,940 22,966 13,320 Net income $ 18,892 $ 17,273 $ 79,009 $ 53,711 Earnings per share: Basic $ 0.36 $ 0.33 $ 1.51 $ 1.03 Diluted $ 0.35 $ 0.33 $ 1.49 $ 1.02 Cash dividends declared per common share: $ 0.19 $ 0.16 $ 0.38 $ 0.32 Weighted average shares outstanding: Basic 52,240,829 52,094,125 52,168,679 52,079,865 Diluted 53,469,759 52,701,202 53,061,169 52,635,415 AAON, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) December 31, 2020 December 31, 2019 Assets (in thousands, except share and per share data) Current assets: Cash and cash equivalents $ 79,025 $ 26,797 Restricted cash 3,263 17,576 Accounts receivable, net of allowance for credit losses of $506 and $353, respectively 47,387 67,399 Income tax receivable 4,587 772 Note receivable 31 29 Inventories, net 82,219 73,601 Prepaid expenses and other 3,739 1,375 Total current assets 220,251 187,549 Property, plant and equipment: Land 4,072 3,274 Buildings 122,171 101,113 Machinery and equipment 281,266 236,087 Furniture and fixtures 18,956 16,862 Total property, plant and equipment 426,465 357,336 Less: Accumulated depreciation 203,125 179,242 Property, plant and equipment, net 223,340 178,094 Intangible assets, net 38 272 Goodwill 3,229 3,229 Right of use assets 1,571 1,683 Note receivable 579 597 Total assets $ 449,008 $ 371,424 Liabilities and Stockholders' Equity Current liabilities: Revolving credit facility $ — $ — Accounts payable 12,447 11,759 Accrued liabilities 46,586 44,269 Total current liabilities 59,033 56,028 Deferred tax liabilities 28,324 15,297 Other long-term liabilities 4,423 3,639 New market tax credit obligation 6,363 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, 52,224,767 and 52,078,515 issued and outstanding at December 31, 2020 and December 31, 2019, respectively 209 208 Additional paid-in capital 5,161 3,631 Retained earnings 345,495 286,301 Total stockholders' equity 350,865 290,140 Total liabilities and stockholders' equity $ 449,008 $ 371,424 AAON, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Years Ending
December 31,2020 2019 Operating Activities (in thousands) Net income $ 79,009 $ 53,711 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 25,634 22,766 Amortization of debt issuance cost 43 7 Provision for credit losses on accounts receivable, net of adjustments 153 91 Provision for excess and obsolete inventories 1,108 1,454 Share-based compensation 11,342 11,799 (Gain) loss on disposition of assets (6,478 ) 337 Foreign currency transaction (gain) loss (12 ) (27 ) Interest income on note receivable (24 ) (25 ) Deferred income taxes 13,027 6,038 Changes in assets and liabilities: Accounts receivable 19,859 (13,412 ) Income taxes (3,815 ) 5,129 Inventories (9,726 ) 2,557 Prepaid expenses and other (2,364 ) (329 ) Accounts payable (2,155 ) 280 Deferred revenue 1,010 425 Accrued liabilities 2,203 7,124 Net cash provided by operating activities 128,814 97,925 Investing Activities Capital expenditures (67,802 ) (37,166 ) Proceeds from sale of property, plant and equipment 60 69 Insurance proceeds 6,417 — Investment in certificates of deposits — (6,000 ) Maturities of certificates of deposits — 6,000 Principal payments from note receivable 52 51 Net cash used in investing activities (61,273 ) (37,046 ) Financing Activities Proceeds from financing obligation, net of issuance costs — 6,614 Payment related to financing costs — (301 ) Stock options exercised 21,418 12,625 Repurchase of stock (30,060 ) (19,586 ) Employee taxes paid by withholding shares (1,169 ) (1,207 ) Dividends paid to stockholders (19,815 ) (16,645 ) Net cash used in financing activities (29,626 ) (18,500 ) Net increase in cash, cash equivalents and restricted cash 37,915 42,379 Cash, cash equivalents and restricted cash, beginning of period 44,373 1,994 Cash, cash equivalents and restricted cash, end of period $ 82,288 $ 44,373