AAON Reports Sales and Record Backlog for the Third Quarter of 2021

About this update from Aaon, Inc.

[{"type":"text","content":"TULSA, Okla., Nov. 04, 2021 (GLOBE NEWSWIRE) -- AAON, INC. (NASDAQ-AAON), today announced its results for the third quarter of 2021. Financial Highlights:Three Months Ended September 30, % Nine Months Ended September 30, % 2021 2020 Change 2021 2020 Change (in thousands, except share and per share data) (in thousands, except share and per share data)Net sales$138,571 $134,772 2.8 % $398,235 $397,851 0.1 %Gross profit36,019 40,848 (11.8)% 111,283 121,926 (8.7)%Gross profit %26.0% 30.3% 27.9% 30.6% Selling, general and admin. expenses$15,897 $14,716 8.0 % $47,488 $45,869 3.5 %SG&A %11.5% 10.9% 11.9% 11.5% Net income15,581 20,460 (23.8)% 52,572 60,117 (12.6)%Net income %11.2% 15.2% 13.2% 15.1% Earnings per diluted share$0.29 $0.38 (23.7)% $0.98 $1.14 (14.0)%EBITDA, a non-GAAP measure$27,726 $32,777 (15.4)% $86,379 $95,109 (9.2)% September 30, September 30,% 2021 2020 Change (in thousands) Backlog$181,813 $84,885 114.2 % Cash & cash equivalents & restricted cash102,473 78,601 30.4 % Net sales for the three months ended September 30, 2021 increased 2.8% to $138.6 million from $134.8 million in the same period in 2020. The year over year increase in net sales was driven by price increases and a favorable product mix, partially offset by unit volumes which were down approximately 11.2%. The decline in volume was mainly a result of a very tight labor market that restricted the Company's production ramp-up plans. While overall headcount has increased throughout the year, the increase is related to our Longview facility, with our Tulsa facility being slightly down year over year. In addition to labor shortage challenges, raw material inflation weighed on gross profit and earnings. Compared to the third quarter of 2020, gross profit declined 11.8% and as a percent of sales, contracted 430 basis points to 26.0%, both of which were a result of three factors. The first factor is the increase in material costs and wages rising quicker than previously announced price increases could counteract. Second, minor supply chain disruptions caused production to slow and be less efficient. Those inefficiencies together with lower overall production limited the Company's ability to absorb certain fixed costs. Third, the Company's Longview facility suffered from COVID-19 related absenteeism in the quarter which reduced the production of coils that were ne...

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