AAON, Inc. (NASDAQ:AAON) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET

Company Participants

Joseph Mondillo - Director, Investor Relations

Gary Fields - President & CEO

Rebecca Thompson - Chief Financial Officer & Treasurer

Conference Call Participants

Brent Thielman - DA Davidson

Julio Romero - Sidoti & Company

Chris Moore - CJS Securities

Operator

Good day, and welcome to the AAON Incorporated First Quarter 2023 Earnings Conference Call. Our host for today's call is Joseph Mondillo, Director of Investor Relations. At this time, all participants will be in a listen-only mode. Later we will conduct a question-and-answer session.

I would now like to turn the call over to your host. Mr. Joseph Mondillo, you may begin sir.

Joseph Mondillo

Thank you, operator, and good afternoon, everyone. The press release announcing our first quarter financial results was issued after market closed today and can be found on our website, aaon.com. The call today is accompanied with a presentation that you can also find on our website, as well as on the listen-only webcast.

Please turn to slide 2 of the presentation. We begin with our customary forward-looking statement policy. During the call, any statement presented dealing with information that is not historical is considered forward-looking and made pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995, the Securities Act of 1933 and the Securities and Exchange Act of 1934, each as amended. As such, it is subject to the occurrence of many events outside of AAON's control that could cause AAON's results to differ materially from those anticipated. You are all aware of the inherent difficulties, risks and uncertainties in making predictive statements.

Our press release and Form 10-K, 10-Q that we filed this afternoon detail some of the important risk factors that may cause our actual results to differ from those in our predictions. Please note that we do not have the duty to update our forward-looking statements.

Joining me on today's call is Rebecca Thompson, CFO and Treasurer; and Gary Fields, President and CEO. Gary will provide some opening remarks. Rebecca will then walk through the quarterly results and then we'll finish with Gary for some commentary on the quarter and outlook.

With that, I will turn over the call to Gary.

Gary Fields

Good afternoon. Overall, we're very pleased with our first quarter results. We reported record sales for a fifth straight quarter. Organic volume was up year-over-year 23.5%. That was against a quarter a year ago were organic volume was up 21.3%. Our operations team is doing a great job managing the robust demand by increasing production capacity quickly while maintaining solid productivity. Backlog continued to grow. Quarter mark to seven straight quarter of record backlog and a ninth straight quarter that backlog grew sequentially. Despite how successful we've been with adding production capacity, bookings continue to outpace production. The environment for us remains positive. Bookings trends are still on the rise and our channel partners are very optimistic. Thus we maintain a positive outlook for the year.