AAON's Stock Rises on Q4 Earnings Beat, Bookings Up Y/Y

Core Insights - AAON, Inc. reported strong fourth-quarter 2023 results with earnings exceeding the Zacks Consensus Estimate and showing year-over-year growth [1] - The company achieved record net sales driven by improved productivity and operational efficiencies, reflected in a healthy backlog level [1][2] - Following the earnings announcement, AAON's shares increased by 1.4% in after-hours trading [1] Financial Performance - Quarterly earnings were reported at 56 cents per share, surpassing the Zacks Consensus Estimate of 53 cents by 5.7%, and up from 47 cents in the same quarter last year [2] - Net sales for the quarter reached $306.6 million, a 20.4% increase from $254.6 million year-over-year [2] - The backlog at the end of Q4 2023 was $510 million, down 6.9% year-over-year but up 4% sequentially due to increased bookings [2] Operating Metrics - Gross margin expanded by 560 basis points to 36.4% in Q4, while SG&A expenses as a percentage of sales increased by 310 basis points to 15.6% [3] - Operating margin improved by 250 basis points year-over-year to 20.8% [3] - Adjusted EBITDA rose by 37.1% to $77 million, with the adjusted EBITDA margin increasing by 300 basis points to 25.1% [3] Annual Overview - For the full year 2023, net sales grew by 31.5% to $1.17 billion compared to $888.8 million in 2022 [4] - Earnings per share for 2023 were $2.13, a 71.8% increase from $1.24 in 2022 [4] - The gross margin expanded by 740 basis points year-over-year to 34.1%, and the operating margin increased by 520 basis points to 19.5% [4] Cash Flow and Financial Position - As of December 31, 2023, cash and cash equivalents were $0.3 million, down from $5.5 million at the end of 2022 [5] - Net cash provided by operating activities for 2023 was $158.9 million, significantly up from $61.3 million in the prior year [5]