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. ---------- (Exact name of registrant as specified in its charter) Nevada 0-18953 87-0448736 ------ ------- ---------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 2425 South Yukon, Tulsa, Oklahoma 74107 --------------------------------------- (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. ----------------------------------- John B. Johnson, Jr., Secretary (1) 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 --------------------------------------------- For Further Information: Jerry R. Levine o Phone: (914) 244-0292 o Fax: (914) 244-0295 Email: jerry.levine@worldnet.att.net -------------------------------------------------------------------------------- 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. (2) AAON, Inc. Consolidated Statements of Operations Three Months Ended Six Months Ended June 30, 2004* June 30, 2003* June 30, 2004* June 30, 2003* ------------------------------------------------------------------------------------- (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 (3) AAON, Inc. Consolidated Balance Sheets June 30, 2004* December 31, 2003 --------------------------------------------------------- (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 ------------------------ ----------------------- Total current assets 54,351 64,635 ------------------------ ----------------------- 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 ------------------------ ----------------------- Total property, plant and equipment 77,194 68,735 Less: accumulated depreciation 34,373 31,285 ------------------------ ----------------------- Net property, plant and equipment 42,821 37,450 Goodwill 115 - ------------------------ ----------------------- Total assets $ 97,287 $ 102,085 ======================== ======================= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Revolving credit facility $ - $ 5,356 Accounts payable 9,798 11,553 Accrued liabilities 13,113 12,357 ------------------------ ----------------------- Total current liabilities 22,911 29,266 ------------------------ ----------------------- DEFERRED TAX LIABILITY 5,391 5,391 ------------------------ ----------------------- 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 ------------------------ ----------------------- Total stockholders' equity 68,985 67,428 ------------------------ ----------------------- Total Liabilities and Stockholders' Equity $ 97,287 $ 102,085 ======================== ======================= *Unaudited (4) AAON, Inc. Consolidated Statements of Cash Flows Six Months Ended* Six Months Ended* June 30, 2004 June 30, 2003 ------------------------------------------------------ (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 ------------------------------------------------------ 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) ------------------------------------------------------ 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) ------------------------------------------------------ Net cash used in financing activities (7,707) (8,007) ------------------------------------------------------ Effect of exchange rate on cash (6) - ------------------------------------------------------ Net decrease in cash and cash equivalents (6,169) (4,394) ------------------------------------------------------ Cash and cash equivalents, beginning of year 6,186 5,071 ------------------------------------------------------ Cash and cash equivalents, end of year $ 17 $ 677 ====================================================== *Unaudited (5)