Aaon, Inc. · NASDAQ:AAON
Aaon — Q1 2024 Earnings Presentation
13 slides from Aaon's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Earnings Conference Call
Q1 2024 Earnings Conference Call May 2, 2024 AAON Inc. 1
Slide 2: Forward-Looking Statements and Other References
Forward-Looking Statements and Other References Certain statements and information set forth in this presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. Except for statements of historical fa
Slide 3: Q1 2024 Summary
Q1 2024 Summary Net Sales $262.1M -1.4% Y/Y Gross Margin 35.2% +620 bps Y/Y EBITDA $60.5M +10.8% Y/Y • 23.1% margin Diluted EPS $0.46 +4.5% Y/Y Backlog $558.4M -6.9% Y/Y • +9.5% Q/Q AAON, Inc. 3
Slide 4: Moving Forward
Gaan> Moving Forward I~ Heat Pump g Competitive Development Pricin Refrigerant g Data Center Opportunities AAON, Inc.
Slide 5: AAON Striving for Growth
AAON Striving for Growth AAON, Inc. 5
Slide 6: Sales Bridge
Q1 2024 Sales Bridge $300 Q1 Highlights $266.0 $11.3 $250 $262.1 • Organic sales down -1.4% $(15.1) • Organic unit volume -5.7% $200 • Volume decline primarily reflects timing (in millions) of backlog conversion at AAON Coil $150 Products and BASX segments +16.7% +11.9% • Parts sales growth +10.2% $
Slide 7: Q1 2024 Gross Profit Margin
Q1 2024 Gross Profit Margin 40% Q1 Highlights 37.2% 36.4% 35.2% 35% 33.1% Positives 30.9% 30% 29.0% 27.0% Increased pricing 25.2% 25% 22.7% Moderating material cost inflation 20% Improved productivity +16.7% Negatives 15% +11.9% Higher wages 10% Unabsorbed fixed costs due to lower 5% volumes, which
Slide 8: SG&A
Q1 2024 SG&A $60 18% Q1 Highlights 17% $50 • As a percent of sales, SG&A increased 16% y/y +490 bps to +17.3% $40 15% • The year-over-year increase to SG&A as (in millions) a percent of sales was primarily a result $30 14% of lower sales volume, increased employee compensation, incremental 13% $20 i
Slide 9: Q1 2024 Diluted EPS
Q1 2024 Diluted EPS $0.70 Q1 Highlights $0.60 $0.58 • Year-over-year, EPS was up slightly. $0.55 $0.56 $0.50 $0.47 $0.46 • An excess tax benefit from share based $0.44 compensation within the quarter $0.40 totaling $4.4 million helped lower our $0.34 tax rate in the quarter. $0.30 $0.22 $0.20 • For
Slide 10: Q1 2024 Balance Sheet and Liquidity
Q1 2024 Balance Sheet and Liquidity Restricted Cash, Cash & Cash Equivalents Debt Q1 Highlights $20.0 $60 • Balance sheet remains strong. $20 $38.3 • Within the quarter, we fully paid down $8.7 $8.4 $40 our revolving line of credit. $0.3 $0 $20 • Cash flow from operations in the first Q4 2023 Q1 202
Slide 11: Outlook
Outlook Highlights • Healthy backlog entering Q2. • Sentiment amongst sales channel remains positive, but bookings trends may be volatile in the near-term due to refrigerant transition. • Slow Q1 causes us to temper growth expectations for the year, but expect improvement throughout 2024. • Strong p
Slide 12: AAON First Quarter 2024 Appendix
AAON First Quarter 2024 Appendix AAON, Inc. 12
Slide 13: Q1 2024 Non-GAAP Financial Measures
Q1 2024 Non-GAAP Financial Measures Three Months Ended March 31, 2024 2023 (in thousands) Net income, a GAAP measure $39,016 $36,814 Depreciation and amortization 13,437 10,274 Interest expense, net 239 1,150 Income tax expense 7,792 6,356 EBITDA, a non-GAAP measure $60,484 $54,594 AAON, Inc. 13