AAON(AAON)2024-05-02 20:10Financial Performance - Net sales for Q1 2024 decreased by 1.4% to $262.1 million compared to $266.0 million in Q1 2023, driven by declines in AAON Coil Products and BASX segments[1] - Gross profit margin expanded to 35.2%, up from 29.0% in Q1 2023, primarily due to favorable pricing amid moderating cost inflation[2] - Earnings per diluted share for Q1 2024 was $0.46, a 4.5% increase from $0.44 in Q1 2023, benefiting from a $4.4 million excess tax benefit[3] - Net income for the three months ended March 31, 2024, was $39,016 thousand, an increase of 5.9% compared to $36,814 thousand for the same period in 2023[16] - EBITDA for the three months ended March 31, 2024, was $60,484 thousand, up 10.5% from $54,594 thousand in the same period last year[21] Cash Flow and Liquidity - Cash flow from operations was strong at $92.4 million, significantly up from $4.8 million in Q1 2023, indicating improved cash conversion[5] - The company had cash, cash equivalents, and restricted cash of $28.4 million as of March 31, 2024, with a zero balance on its revolving credit facility[5] - Cash and cash equivalents increased significantly to $28,367 thousand from $2,980 thousand, representing a substantial rise[16] - The company reported a net cash provided by operating activities of $92,370 thousand, a significant increase from $4,823 thousand in the same period last year[16] Backlog and Demand - The company finished Q1 2024 with a backlog of $558.4 million, up from $510.0 million in Q4 2023, but down 6.9% year-over-year from $599.9 million[4] - Bookings outpaced sales for the second consecutive quarter, indicating strong demand across all business segments[5] - The company anticipates improved results as production increases to meet growing backlog, particularly in the data center market[5] Expenses and Investments - SG&A expenses as a percentage of sales increased to 17.3% from 12.4% in Q1 2023, primarily due to higher professional fees and long-term investments[2] - Capital expenditures increased by 33.0% year-over-year to $38.7 million, reflecting ongoing investments in production capacity[5] - Capital expenditures for the three months ended March 31, 2024, were $34,688 thousand, compared to $28,935 thousand in the prior year[16] Asset and Liability Management - Total current assets decreased to $392,227 thousand from $408,954 thousand, a decline of approximately 4.1%[14] - Accounts receivable decreased to $109,662 thousand from $138,108 thousand, a reduction of approximately 20.6%[14] - Total liabilities decreased slightly to $168,143 thousand from $169,174 thousand, a decrease of about 0.6%[14] - Total stockholders' equity increased to $784,808 thousand from $735,224 thousand, reflecting a growth of approximately 6.7%[14] Tax Obligations - The company has recognized a new market tax credit obligation of $15,994 thousand, up from $12,194 thousand[14]