AAON, Inc. (NASDAQ:AAON) Q4 2020 Earnings Conference Call February 25, 2021 4:15 PM ET Company Participants Gary Fields - President & Chief Executive Officer Scott Asbjornson - Chief Financial Officer Rebecca Thompson - Chief Accounting Officer & Treasurer Conference Call Participants Brent Tillman - D.A. Davidson Julio Romero - Sidoti Jon Braatz - Kansas City Capital Chuck Myer - Myers Family Office Operator Good afternoon, ladies and gentlemen. Welcome to AAON Inc. Fourth Quarter Sales and Earnings Call. ...

AAON, Inc. (NASDAQ:AAON) Q3 2020 Results Conference Call November 5, 2020 4:15 PM ET Company Participants Gary Fields - President and CEO Scott Asbjornson - VP, Finance and CFO Rebecca Thompson - Chief Accounting Officer and Treasure Gary Fields - CEO and President Conference Call Participants Will Jellison - D.A. Davidson Matt McGeary - Eagle Asset Management Operator Good afternoon, ladies and gentlemen, and welcome to AAON Inc. Third Quarter Sales and Earnings Call. There will be a question-and-answer pe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock AAON NASDAQ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Financial Data and Key Metrics Changes - Net sales increased by 5.2% to $125.6 million from $119.4 million year-over-year [6] - Gross profit rose by 26.2% to $38.1 million, with a gross profit margin of 30.4% compared to 25.3% in the previous year [6] - Net income increased to $17.8 million or 14.2% of sales, up from $13.4 million or 11.2% [8] - Diluted earnings per share increased by 36.0% to $0.34 from $0.25 [8] - For the six months ended June 30, net sales were up 12.8% to $263.1 million [9] Business Line Data and Key Metrics Changes - Increased sheet-metal production due to additional Salvagnini machines contributed to sales growth [6] - Selling, general and administrative expenses increased by 23.4% to $15.9 million, primarily due to profit-sharing and a $1.25 million contribution to local schools [7] - Income from operations increased by 28.4% to $22.2 million, representing 17.7% of sales [7] Market Data and Key Metrics Changes - Backlog was $119.6 million at June 30, down from $166 million a year ago, but considered favorable due to improved lead times [24] - Architectural Billing Index has been below the benchmark of 50 for four consecutive months, indicating a potential decline in new construction [22] Company Strategy and Development Direction - The company is focusing on increasing production capacity and improving operational efficiencies to meet demand [12][24] - Strategies are being implemented to strengthen the aftermarket replacement business, particularly for water-source heat pumps [18] - The company is well-positioned to capitalize on increased demand for indoor air quality solutions due to COVID-19 [15] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in attendance and production levels after temporary impacts from COVID-19 [4][16] - Bookings in July were substantially above 2019 levels, indicating a positive trend moving forward [16] - The company expects modest growth for the remainder of 2020 and a stable backlog entering 2021, barring any unforeseen economic downturns [26] Other Important Information - The company has maintained continuous operations during the pandemic and has been involved in COVID-19 related projects [4] - Capital expenditures for the year are expected to be approximately $73.2 million, with $33.5 million spent in the first half [11] Q&A Session Summary Question: How do you feel about maintaining margins given the current environment? - Management expressed confidence in maintaining margins due to effective cost management and production efficiency [30][32] Question: Do you expect a step-up in revenue for Q3? - Management does not expect a significant increase in revenue for Q3 due to early July absenteeism impacting production [34] Question: What is the status of indoor air quality upgrades? - Most upgrades are considered full replacements of units, as older units lack the capability for higher filtration levels [40] Question: How is the company addressing the challenges in the retail and hotel markets? - Management acknowledged challenges in new construction but sees opportunities in the replacement market, particularly for aging units [54] Question: What is the outlook for raw material prices? - The company has locked in prices for many materials, and the outlook for the next six months is neutral with no significant impact expected [76] Question: Can you elaborate on the recent increase in SG&A expenses? - A one-time contribution of $1.25 million to a local school district was a significant factor in the increase in SG&A expenses [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock AAON NASDAQ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ ...

Financial Data and Key Metrics Changes - Net sales increased by 20.8% to $137.5 million from $113.8 million year-over-year, primarily due to increased sheet metal production [6] - Gross profit rose by 68.9% to $42.9 million, with gross profit as a percentage of sales increasing to 31.2% from 22.3% [6] - Income from operations surged by 142.3% to $27.8 million, representing 20.2% of sales, compared to 10.1% in the previous year [7] - Net income increased to $21.9 million or 15.9% of sales, up from $8.8 million or 7.7% [7] - Diluted earnings per share rose by 141.2% to $0.41 from $0.17 [7] Business Line Data and Key Metrics Changes - Water-source heat pump sales were lower in Q1 compared to previous quarters due to growing pains and component issues, but bookings strengthened in April [10][12] - The company has been working on improving production efficiency and has added new machines to enhance output [21][22] Market Data and Key Metrics Changes - The healthcare market remains strong, with a notable increase in demand for temporary facilities due to the coronavirus [10][20] - The hospitality sector has been significantly impacted, with many projects on hold [17] - K-12 education market activity has been neutral to increasing, with some delays in project timelines [18] Company Strategy and Development Direction - The company aims to enhance its production capacity and reduce lead times, with a goal of achieving an eight-week lead time [22][54] - The Norman Asbjornson Innovation Center is being utilized more effectively to accelerate product development [14][15] - The company is focusing on hiring experienced personnel in the water-source heat pump segment to strengthen its strategic plan [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenges posed by the coronavirus, noting that most projects have been delayed rather than canceled [16][19] - The company anticipates a stable order intake moving forward, with expectations that the market will recover as states reopen [44][45] - Management believes that the company is well-positioned for future growth, despite potential challenges from the ongoing pandemic [34][36] Other Important Information - The company reported a working capital balance of $132.8 million and unrestricted cash of $35.7 million [9] - Capital expenditures for the year are expected to be approximately $73.2 million, with stock repurchases totaling $5.1 million in Q1 [9] Q&A Session Summary Question: How does the company handle deferred orders? - Deferred orders were not in the backlog and were pending orders in the sales channel, with one small order canceled but quickly replaced [38][39] Question: What is the timing for new construction orders? - The timing varies, but typically orders are received around the time construction begins, with a process that can take 90 days from bid to order [41][42] Question: How does the company view its order intake in April? - Order intake in April is slightly below normal but improving as states reopen, with paperwork running behind schedule [44][45] Question: What is the expected contribution from hospital-related orders? - Traditionally, around 9% of revenue comes from hospitals, with specific projects contributing approximately $4 million [46][49] Question: What are the expectations for gross margins moving forward? - The company aims to maintain gross margins around 30%, balancing efficiency improvements with the need for additional staff for future growth [61][62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission file number: 0-18953 AAON, INC. (Exact name of registrant as specified in its charter) Nevada 87-0448736 (State o ...