AAON, Inc. (NASDAQ:AAON) Q1 2022 Earnings Conference Call May 5, 2022 5:15 PM ET

Company Participants

Joseph Mondillo – Director-Investor Relations

Rebecca Thompson – Chief Financial Officer

Gary Fields – President and Chief Executive Officer

Conference Call Participants

Julio Romero – Sidoti & Company

Brent Thielman – D.A. Davidson

Operator

Welcome to the AAON Inc’s First Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would like to turn this event over to your host, Mr. Joseph Mondillo, Director of Investor Relations. Mr. Mondillo, please go ahead.

Joseph Mondillo

Thank you, operator. Good afternoon and thank you for joining us for AAON’s first quarter 2022 earnings conference call. A press release announcing our first quarter 2022 financial results was issued after market close today and can be found on our corporate website aaon.com. A recording of this call will also be posted on our website following the call.

Joining me on the call today are Gary Fields, our President and CEO; and Rebecca Thompson, our CFO. Shortly. I’ll be handing the call off to Rebecca, for her to go through the first quarter results. Gary will then provide further insight on the quarter along with our current outlook, and then we’ll open up the call to Q&A. Prior to that though, 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 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-Q that we filed this afternoon details 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.

With that, I’ll turn the call over to Rebecca.

Rebecca Thompson

Thank you, Joe. I’d like to begin by discussing the comparative results of the three months ended March 31, 2022 versus March 31, 2021. Net sales increased 57.8% to $182.8 million from $115.8 million. Organic volume growth contributed approximately 21.3% to net sales and the acquisition of BasX Solutions contributed 18.1% with the remainder coming mainly from price increases. A record backlog at the beginning of the quarter, along with improved production rates drove the robust volume growth. Record production rates in the first quarter reflect an easing of supply chain issues, greater production capacity and strong performance from our operational team.