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    Category: HVAC replacements


    HVAC System Costs – 2020 Replacement … – Modernize - March 5, 2020 by admin

    HVAC replacement costs can potentially range from $3,250 to $12,586 for the average sized 2,000 sq. ft home in a moderate climate zone. The cost of installation will depend on home size, if you are installing either a central AC unit, furnace, or heat pump, and if ductwork will need to be replaced.

    Get Local Costs

    Installation costs will change depending on a few factors that are specific to your home and location. Here are the main things that your air conditioning contractor will assess in order to give you a total price quote for your replacement HVAC system:

    Depending on where in the US your home is located, the local regions climate can change dramatically. A home located in the South would need an AC unit with a size capable of cooling your home due to high temperature Summers. A home in the Northern part of the US would need a much larger heating capacity as well which will affect costs. See the chart below for the average costs of a central AC unit only by TONS.

    Get Local Costs

    If you are replacing your current air conditioning system, its safe to assume that you already have ductwork installed. Ductwork delivers the conditioned air from your HVAC system throughout your home through vents often found in your homes attic and However, with time ductwork can lose its efficiency or may need to be altered to work with your new AC system. New ductwork installation can tack on an additional cost anywhere from $1,200 to $4,200 depending on the level of complexity to install or alter. Plan to add a few days of labor to your HVAC replacement project if you do need ductwork replacement.

    The ability to cool and heat your home at maximum efficiency will depend a lot on how well insulated your home is currently and the size of your home. A 2500 square foot home will need a much larger AC unit than a smaller home, which will impact installation costs. Also a house with energy efficient windows that are well insulated and sealed well with no cracks for air flow will require far less AC capacity to keep temperatures comfortable. Other factors that can affect this could be the insulation elsewhere such as the foundation, roof, attics, basements, flooring, and more.

    A local and trusted HVAC service installer will be able to tell you best what features you may need or want for your homes system. Higher priced AC unit costs will come with higher energy efficiency levels known as the SEER rating. The size of the unit will also make a different in AC unit prices. The HVAC brand you choose will also impact total installation costs. Higher end central AC units will cost more upfront. However, better brands usually come with a longer lifespan, better warranties, and smarter technology built in to fully control your homes temperature.

    There may also be some AC installation costs that are not included in the initial HVAC estimate but you will want to factor in just in case. These are the things you should ask the air conditioning contractor if the following costs are included in the initial quote theyre providing. Be sure to always ask these questions.

    Get Free Quotes

    There are a quite a few factors to consider when determining what could affect the cost of a new HVAC system installation price quote. Some factors may cause your initial cost estimate to be higher or lower. It is advised to get at least four local price quotes from different qualified HVAC contractors. Let Modernize help connect you to reliable local contractors.

    Get Free Quotes

    For any bid you receive you should always double check your final HVAC installation quotes for possible pricing errors. Errors can happen when trying to determine your full HVAC system installation costs. Communicate any and all questions and concerns with your air conditioning installer before you sign off on any contracts.

    For a full list of price evaluation tips see ourhomeowners guide to evaluating your HVAC cost estimates.

    How much does it cost to install different heating and cooling systems?

    You can use our HVAC Installation Cost Calculator to get an average price for installation in your area and then talk to reliable local contractors about your specific project afterwards if you'd like.

    What are the top factors that affect the cost of your HVAC installation?

    Read in depth about the details here on each of these cost factors and get an estimate on how much each HVAC system will cost to install in your area.

    Can you negotiate HVAC Installation costs with contractors?

    HVAC installation costs typically range from $3,500 to $7,525, but homeowners can reduce those costs by negotiating the contract price and terms with their contractor by getting multiple quotes from local contractors or using our cost calculator to get average local prices as a negotiating basepoint.

    What are the top brands of HVAC systems?

    Some brands offer extensive warranties, boast incredible customer support teams, and offer smart home technology for your new air conditioner. It really depends on your budget and what you value the most in a new home heating or cooling unit and the brand of it. Like most things, you get what you pay for and should plan your budget accordingly when looking to install a new HVAC system in your home. See our review list of the the best air conditioner brands and top furnace brands.

    How do you find a local reliable cooling and heating installer?

    It is then smart to vet the recommended contractors by doing research and using a service like Modernize to instantly compare multiple quotes from the top HVAC contractors. We provide information on local service professionals along with their current Google business ratings, Better Business Bureau ratings, and even recent reviews from homeowners in your neighborhood who also completed HVAC projects with those same heating and cooling contractors.

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    HVAC System Costs - 2020 Replacement ... - Modernize

    State mulls moving schools over fixing old properties – The Herald - March 5, 2020 by admin

    By The Associated Press

    INDIANAPOLIS Some lawmakers and advocates are concerned about the process of relocating two schools for blind and deaf students, arguing that it's being rushed because the schools sit on valuable Indianapolis real estate desirable for development.

    The Indiana School for the Deaf and the Indiana School for the Blind and Visually Impaired are in dire need of updates and maintenance, including major repairs for new roofs, better drainage and upgraded mechanical systems.

    An assessment found that both schools combined would need about $96 million for maintenance. Recently, the schools requested more than $8.3 million for projects, ranging from HVAC replacements to roof repairs, which led to the consideration of moving them to new buildings that require less upkeep, according to Republican state Sen. Liz Brown from Fort Wayne.

    Are we as a state spending money on a building, when it could be going to a student? That concerns me, Brown told the Indianapolis Business Journal. I would much rather see us focus the dollars on the student.

    The schools serve a total of about 500 students from preschool to high school annually, providing deaf and blind students with an education advocates say they can't obtain in traditional public schools.

    Last year, the General Assembly formed a task force to focus on the schools future, which concluded that building new, separate schools on a shared campus would enable the schools to serve students better. The group is still working on more detailed evaluations about what new schools might offer and where they could be located.

    But some officials say moving the schools is being rushed because their land is a valuable real estate asset.

    Weve always known this was very valuable property, said Democratic state Rep. Greg Porter from Indianapolis, whose district includes the blind school. Im quite sure its a development play.

    Melissa Keyes, executive director of Indiana Disability Rights, who served as an advisory member of the task force, said the value of the two properties and whether they could be redeveloped was not discussed during meetings. But its obvious thats whats playing into it, she said.

    Sixty acres (near) Meridian-Kessler? Its kind of hard to not recognize that that would be a prime piece of property if there wasnt a school on it, Keyes said.

    But Brown, chair of the task force, said the group wasnt focused on the real estate, but rather on how to best serve the schools students while being mindful of how taxes dollars are spent.

    Republican Gov. Eric Holcomb said through a spokeswoman that he's open to the task force's recommendations. The task force has until end of year to make final recommendations to the State Budget Committee.

    Read more:
    State mulls moving schools over fixing old properties - The Herald

    Homeowners Know Its Vital to Have Their HVAC Systems Inspected – Press Release – Digital Journal - March 5, 2020 by admin

    Homeowners maintain their HVAC systems to keep their properties at a comfortable temperature year-round. Proper maintenance and inspections prevent homeowners from facing sudden shutdowns and failures. Service providers offer a wide array of services to keep the systems maintained and operating at high-performance levels. Homeowners who want to learn more about maintaining the systems read why it's vital to have the HVAC systems inspected each year. Property owners who want to learn more can click here for more info.

    Improving Air Quality

    Improving the air quality in the home helps homeowners lower the risk of respiratory illnesses and the accumulation of allergens in the air. The inspection includes an assessment of the ventilation system and replacements for all filters. The services determine if dust, debris, or pathogens have built up in the systems and preventing proper airflow throughout the home. Seasonal cleaning is highly recommended for HVAC systems and improves the air quality dramatically.

    Prevent Electrical Fires and Hazards

    Preventing electrical fires and hazards lowers the risk of detrimental circumstances for the property owner. The inspections include a review of all electrical wiring and the installation itself. If the technicians discover any irregularities and installation errors, the technicians repair the issues quickly. Loose or damaged electrical wiring is a common cause of electrocution and fires in the home. Correcting the conditions quickly prevents the homeowner and their family from facing any serious risks because of the HVAC systems.

    Identify Component Failures Faster

    The technicians present repair estimates for any components that aren't performing correctly. Typically, when a component fails, the surrounding components work overtime to compensate for the loss. This means the HVAC system draws more energy and increases energy costs for the property owner. Replacing a failing component eliminates the suddenly high expenses and restores the system to its proper working order. After the repairs, the homeowner generates amazing savings and can afford to run their HVAC systems.

    Finding Gas Leaks and Repairing Them Quickly

    Heating systems that operate on natural gas or propane draw gas from underground pipes, and the gas flows through the heating system. Any leaks increase the risk of a fire, explosion, and the inhalation of poisonous gases by the owner or their family. Finding the leaks prevents catastrophic results for the homeowner. Homeowners who schedule HVAC inspections get better air quality, and the technicians find the source of air quality issues quickly. Inspections also help the owner find electrical hazards and wiring damage that could cause a house fire. Component failures are corrected quickly after the technicians discover the problem, and homeowners save incredibly on the heating and cooling costs. Inspections also prevent gas-related issues and keep the home safer.

    Where to Get Your HVAC Systems Inspected

    Allen Kelly & Company, Inc. has been providing reliable and high-quality HVAC services for about thirty years. The service providers offer comprehensive HVAC inspections, cleaning services, and repairs. The business offers emergency HVAC services and guarantees the quality of all repairs and installations.

    Homeowners who want to learn more about the business and its services visit https://allenkelly.com/ for more information.

    Media ContactCompany Name: Allen Kelly & Company, Inc.Contact Person: Robbie D. SturgisEmail: Send EmailPhone: (919) 779-4197Address:220 Tryon Rd A City: RaleighState: NCCountry: United StatesWebsite: allenkelly.com

    Excerpt from:
    Homeowners Know Its Vital to Have Their HVAC Systems Inspected - Press Release - Digital Journal

    Serveway Heating and Air Conditioning Expects Demand for AC Replacement in Dallas, TX to Rise – PR.com - March 5, 2020 by admin

    Serveway Heating and Air Conditioning announces that the optimal time for an AC replacement in Dallas, TX, and the surrounding areas is right now, due to unforeseen demand spikes in the coming weeks.

    The time to invest in a replacement is here. Serveway Heating and Air Conditioning offers its services for all customers looking for a new system, and financing opportunities are available for those who want a payment plan. We got a new AC last year right at the end of winter, says Lucy, resident of Dallas, TX. When summer finally hit, we had a brand new system ready that worked perfectly all summer long. Anyone looking for a replacement is advised to start the process as soon as possible in order to have everything set up when winter concludes.

    Serveway Heating and Air Conditioning is based in Dallas, Texas, and they are proud to be a one-stop-shop for all HVAC services. As an industry leader, they offer installations, replacements, repairs, service, maintenance, and tune-ups for all heating and cooling systems. Their team is comprised of qualified professionals, and each technician has at least six years of experience working in the industry. You can learn more about their offerings by calling (469) 231-9379 or visiting https://www.servewayhvac.com/.

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    Serveway Heating and Air Conditioning Expects Demand for AC Replacement in Dallas, TX to Rise - PR.com

    Five elementary schools face replacement in unveiled facilities plan – Huntington Herald Dispatch - March 5, 2020 by admin

    HUNTINGTON Five elementary schools in Cabell County could be replaced on or off site over the next 10 years at an estimated cost of about $80 million, as outlined in the Comprehensive Educational Facilities Plan revealed Tuesday evening to the county Board of Education at its regularly scheduled meeting.

    The finalized draft of the plan is a result of multiple community dialogue meetings in collaboration with the CEFP Steering Committee and information planning firm Cooperative Strategies, which worked to identify options that would best benefit the districts schools for generations to come.

    Costs of the recommendations are based on numbers provided by the West Virginia School Building Authority, and projects that require land acquisition or extensive site preparation have additional funds allocated in the approximate amounts.

    Davis Creek Elementary School in Barboursville, built in 1958, is recommended for a total replacement on a new site for an estimated cost of $16.1 million over other options like consolidation with Hite-Saunders or Altizer elementary schools.

    Although the location is to be determined, committee members and stakeholders suggested constructing a larger facility to relieve overcrowding at Village of Barboursville Elementary through redistricting.

    The school is the only facility outlined in the plan recommended to relocate.

    Cox Landing Elementary in Lesage, Meadows Elementary in Huntington, Milton Elementary and Ona Elementary are all recommended for replacements on site with some stipulations.

    Cox Landing lacks ADA compliance, and committee members suggested considering renovation of the existing building should the issues be able to be addressed.

    If Meadows Elementary were to be replaced on site, committee members suggested the school be built back farther from its existing location at the intersection of Washington Boulevard and Hal Greer Boulevard.

    In total, the estimated cost of the on-site replacements comes to about $64 million, although not all replacements were deemed high priority in the plan.

    The option to construct a long-awaited shared football field for Huntington Middle School and Huntington East Middle School received positive feedback from the community during the stakeholder meetings, and in response the recommendation to acquire land for the facility was included in the CEFP.

    Although the location is yet to be chosen, the estimated cost of the project is about $4.5 million and ranked at moderate priority.

    The Cabell County Career Technology Center, which is expected to see program growth in the coming years, is also recommended to receive renovations or additions to the facility. The project is outlined as high priority and would cost an estimated $35.4 million to complete.

    There are more than 30 suggested projects currently acknowledged in the CEFP, which will be available in full at http://www.cabellschools.com on Wednesday, March 4.

    There will also be a feedback option available on the website, and Superintendent Ryan Saxe said he encourages the community to once again share their opinion on the recommendations.

    From the very beginning, we have tried to engage the community and all of our stakeholders in this process, Saxe said. Whatever we do over the next 10 years is going to have to last in those facilities for the next 40-50 years, and we want to be able to be planning for the future.

    In total, over 1,500 online questionnaires were collected as a result of the community dialogue meetings that took place prior to the finalization of the plan.

    Of those, common themes emerged, like the opposition of school consolidation, student safety and addressing HVAC issues, restroom facility improvements and having athletic fields be equitable across the district.

    Although board members did not take action on the CEFP, a work session is scheduled to discuss the options prior to the next regular BOE meeting.

    Should no major changes or issues arise, the board is expected to vote on the plan March 17.

    Saxe said his team will be switching gears as the board finalizes that plan to begin developing a funding strategy in order to pursue as many of the projects as possible.

    The Cabell County Board of Education meets regularly on the first and third Tuesday of each month at 5:30 p.m. at the districts central office at 2850 5th Ave. in Huntington. Meetings are open to the public.

    Follow reporter Hanna Pennington via Twitter @hpennHD.

    See the original post:
    Five elementary schools face replacement in unveiled facilities plan - Huntington Herald Dispatch

    EZ Comfort Air Conditioning & Heating Announces Financing Options for AC Repair in The Woodlands, TX – PR.com - March 5, 2020 by admin

    EZ Comfort Air Conditioning & Heating is now offering financing options for all customers seeking AC repair in The Woodlands, TX, and the surrounding areas.

    EZ Comfort Air Conditioning & Heating has been working with customers to find the different pain points they experience when dealing with an HVAC provider. They have spoken to different people in order to isolate major problems and offer solutions. One of the problems with repairs, especially emergency repairs, is that no one is ever ready for them, says Jonathan, resident of The Woodlands, TX. Because of this, no one can guarantee that they will have the cash to pay for repairs right when they need them, but the repairs still have to be done. Financing options are something that can definitely make this easier for some of us. EZ Comfort Air Conditioning & Heating takes all feedback to heart, and they have launched this initiative with the hopes of making repairs more accessible to customers all around the local community.

    EZ Comfort Air Conditioning & Heating understands that repairs are things that no one truly plans for. In a perfect world, there would be no need for AC repair in The Woodlands, TX, and the surrounding areas because systems would never break down. But accidents happen, and customers need ways to cope when they do. Working with Wells Fargo Financial National Bank is a great way to keep services affordable and open to everyone looking for them. The team at EZ Comfort can work with any customer looking for financing to find the best short or long term payment plan for their specific needs.

    EZ Comfort Air Conditioning & Heating is a certified HVAC organization that has been working with customers in greater Houston for over 12 years. They provide HVAC services such as installations, replacements, repairs, service, maintenance, and tune-ups for all heating and cooling systems, and they are known to be one of the best companies in the local area. Their technicians are all trained and certified to diagnose and solve issues, and they have a reputation for being punctual and thorough with all of their work. For any questions about this announcement or their services, EZ Comfort Air Conditioning & Heating can be reached at (832) 777-0136.

    More:
    EZ Comfort Air Conditioning & Heating Announces Financing Options for AC Repair in The Woodlands, TX - PR.com

    You Decide: Here’s What Canby School District’s $75 Million Bond Proposal Would Go Toward – Canby Now Podcast - March 5, 2020 by admin

    The Canby School Board on Feb. 26 moved unanimously to refer a 20-year, $75 million bond issue to Canby School District voters in the May 2020 primary election.

    The bond proposal is designed to maintain 2019 tax rates by replacing the current bond payments that built Baker Prairie Middle School 15 years ago. Those payments are set to expire at the end of this year.

    If the bond proposal is approved in May, it would also bring an additional $4.7 million from the states Oregon School Capital Improvement Matching Program in the form of a grant that was awarded to Canby School District.

    Heres what the money would go toward, according to the final package that was presented to the board by members of the Bond Development Committee.

    $27.16million would go toward high-priority facility upgrades and safety improvements (what the district calls its Warm, Safe and Dry initiative), including addressing roof repairs and replacements, HVAC systems, MEP systems and other interior and exterior projects.

    $22.75million would go toward replacing theexisting 200 Wing science classrooms and labspaces at Canby High School, including design, demolition and new construction.

    $10.22million would go toward instructional technology improvements, including wireless access points, projectors and voice amplification systems in classrooms; security cameras and installation; projection, sound and other technology in school gyms, cafeterias, libraries and computer labs for events; communications technology such as new phone, intercom, clock and bell systems; a student technology refresh that would replace devices and increase student-to-device ratios; and MDF/IDF technology distributionclosets (including school site technology/network connection points and terminals).

    $4million would go toward upgrades of existinglight fixtures to more efficient and longer-lastingLED light fixtures and controls.

    2.5 million would go toward CTE improvements K-12th grade, including promoting hands-on, experiential learning opportunities across the district with spaces and technology to support these activities, creating infrastructure to support more specialized operations and equipment in the high schools CTE spaces, and adding Maker/STEAM spaces at the elementary and middle school spaces.

    $2.28 million would go toward districtwide ADA improvements, including the addition of oneADA unisex restroom at each school (except Baker Prairie) and one ADA changing room atKnight Elementary; ADA push buttons at entry doors; an elevator and corridor to provide access to locker rooms at the Ackerman Center; and districtwide playground accessibility improvements (includes surfacing, ramps and equipment).

    $2.17 million would go toward district athletic improvements, including new turf infields for CHS softball and baseball, a new multipurpose turf athletic field at the high school, drainage improvements to existing athletic fields at Baker Prairie Middle School and resurfacing of the existing track at the Ackerman Center.

    $650,000 would go toward a robust master planning process, including an elementary school replacement study and planning, middle school visioning and planning, comprehensive visioning and master planning for the high school and a maintenance building replacement study.

    $90,700 would go toward fire safety improvements, including two fire suppression doors at Knight Elementary, and the wiring of an existing set of fire suppression doors at Lee Elementary to the main offices lock-down system.

    $7.5 million (10 percent) would be retained for contingency, issuance and management of the funds and projects.

    For more information, see the following presentation that was made to the Canby School Board on Feb. 20:

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    Want to support free, useful, locally produced journalism like this? Then consider joining our monthly membership program, Canby Now Plus, for as little as $1 a month! Youll help us sustain and expand our work, plus you can get access to exclusive content, cool merchandise and other goodies. Thanks!

    Continued here:
    You Decide: Here's What Canby School District's $75 Million Bond Proposal Would Go Toward - Canby Now Podcast

    Brighton School Board Approves Bond Resolutions – WHMI - March 5, 2020 by admin

    By Tom Tolen/News@whmi.com

    At its meeting Monday night, the Brighton Board of Education approved two bonding resolutions - one, which will refinance the $48 million balance it owes to the Michigan School Loan Revolving Fund - and the other, authorizing the issuance of $59 million in bonds to implement the bond issue passed by voters last November.

    Assistant Superintendent for Business and Finance Michael Engelter says the district wants to take advantage of the excellent interest rates right now to refinance its outstanding debt with interest on school bonds now hovering around the 2% mark. Engelter says the bond sale on the $59 million bond issue will likely take place in May, and he expects an excellent interest rate which could save the district hundreds of thousands of dollars.

    Theres more good news.Engelter says the Brighton Area Schools bond rating has improved by two points, to A-3, over the previous B-double-A-2. He says that this, combined with the lower interest rates, bodes well for Brighton when the bond sale comes around. Among improvements to be made to district schools are a new STEAM, or Science, Technology, Engineering, Arts and Math building at the high school, plus STEAM classroom renovations throughout district schools, a new multi-purpose facility, parking lot and roof replacements, new HVAC units at the high school and many other upgrades.

    Read more:
    Brighton School Board Approves Bond Resolutions - WHMI

    Edited Transcript of AAON earnings conference call or presentation 27-Feb-20 9:15pm GMT – Yahoo Finance - March 5, 2020 by admin

    TULSA Mar 4, 2020 (Thomson StreetEvents) -- Edited Transcript of Aaon Inc earnings conference call or presentation Thursday, February 27, 2020 at 9:15:00pm GMT

    * Gary D. Fields

    AAON, Inc. - President & Director

    * Norman H. Asbjornson

    AAON, Inc. - Founder, Chairman & CEO

    * Rebecca A. Thompson

    AAON, Inc. - CAO & Treasurer

    * Scott M. Asbjornson

    AAON, Inc. - VP of Finance & CFO

    D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst

    * Charles L. Myers

    Good afternoon, ladies and gentlemen. Welcome to the AAON, Inc. Fourth Quarter full -- and Full Year Sales and Earnings for the Year Ended December 2019 Call. (Operator Instructions)

    I would now like to turn the meeting over to Gary Fields. Please go ahead, sir.

    Gary D. Fields, AAON, Inc. - President & Director [2]

    Good afternoon. I'd like to read a forward-looking disclaimer to begin. To the extent any statement presented herein deals with information that is not historical, including the outlook for the remainder of the year, such statement is necessarily forward-looking and made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings, including the annual report on Form 10-K and the quarterly report on Form 10-Q.

    Now I would like to introduce Scott Asbjornson, CFO, to discuss fourth quarter numbers.

    Scott M. Asbjornson, AAON, Inc. - VP of Finance & CFO [3]

    Welcome to our conference call. I'd like to begin by discussing the comparative results of the 3 months ended December 31, 2019, to December 31, 2018.

    Net sales were up 9.1% to $122.6 million from $112.3 million. The increase in net sales was the result of improved production capacity and efficiencies. Gross profit increased 30.7% to $36.4 million from $27.8 million. As a percentage of sales, gross profit was 29.7% in the quarter just ended compared to 24.8% in 2018. The increase in gross profit was due to more efficient operations. Selling, general and administrative expenses increased 22.3% to $13.1 million from $10.7 million in 2018. As a percentage of sales, SG&A was 10.7% of total sales in the quarter just ended compared to 9.5% in 2018. The increase in SG&A was primarily due to professional fees related to our new market tax credit transaction that closed in the fourth quarter of 2019.

    Income from operations increased 35.6% to $23.2 million or 18.9% of sales from $17.1 million or 15.2% of sales. Our effective tax rate increased to 25.6% from 24.2%. Net income increased 33.2% to $17.3 million or 14.1% of sales from $13 million or 11.5% of sales. Diluted earnings per share increased by 32% and to $0.33 per share from $0.25 per share. Diluted earnings per share were based on 52,701,000 shares versus 52,421,000 shares in the same quarter a year ago.

    The results of the year ended December 31, 2019, to December 31, 2018, net sales were up 8.2% to $469.3 million from $433.9 million. This increase in sales was due to our improved production capacity. Gross profit increased $15.9 million to $119.4 million from $103.5 million. As a percentage of sales, gross profit was 25.4% in the year just ended compared to 23.9% in 2018. The company maintained a steady level of workforce throughout 2019. Company continues to improve its labor and overhead efficiencies and expects improvements to continue as new sheet metal machines were placed into service in the last quarter of 2019 and in early 2020. Selling, general and administrative expenses increased 8.1% to $52.1 million from $48.2 million in 2018. As a percentage of sales, SG&A remained constant at 11.1% of total sales. Income from operations increased 21.1% to $67 million or 14.3% of sales from $55.4 million or 12.8% of sales.

    Our effective tax rate decreased to 19.9% from 23.7%. Upon completion of the company's 2018 tax return in 2019, the company recorded additional tax benefit due to higher-than-expected research and development credit of $0.6 million. Additionally, in 2019, the company determined it could take advantage of an additional 1% tax credit in Oklahoma for years in which the company's location was deemed to be within an enterprise zone. The additional Oklahoma credit, for being in an enterprise zone or otherwise allowable under Oklahoma law, resulted in a benefit of $1.2 million. Net income increased 26.9% to $53.7 million or 11.4% of sales from $42.3 million or 9.8% of sales. Diluted earnings per share increased by 27.5% to $1.02 per share from $0.80 per share. Diluted earnings per share were based on 52,635,000 shares versus 52,668,000 shares in the same period a year ago.

    At this time, I will turn the call over to Rebecca Thompson, our Chief Accounting Officer, to discuss our balance sheet.

    --------------------------------------------------------------------------------

    Rebecca A. Thompson, AAON, Inc. - CAO & Treasurer [4]

    --------------------------------------------------------------------------------

    Thank you, Scott. Looking at the balance sheet, you'll see that we had a working capital balance of $131.5 million versus $93.2 million at December 31, 2018. Cash and restricted cash totaled $44.4 million at December 31, 2019. Our current ratio is approximately 3.3:1. Our capital expenditures for the year were $37.2 million. We expect capital expenditures for 2020 to be approximately $73.2 million. Shareholders' equity per diluted share is $5.51 at December 31, 2019, compared to $4.74 at December 31, 2018.

    I'd now like to turn the call over to Gary Fields, our President.

    --------------------------------------------------------------------------------

    Gary D. Fields, AAON, Inc. - President & Director [5]

    --------------------------------------------------------------------------------

    Let's talk about the net sales. So we have had progressively price increases going back to 2017, but do it with the longer lead time, the backlog flow through to actual production and actual sales takes a fair while to happen. We've been working that backlog down, working our -- by increasing the production rate and so we're shortening our lead times. This will get the price increases through to the sales a little quicker. So right now, the price increases have had a positive impact on our financial performance. But more importantly, the efficiencies we've gained with the higher revenue, being able to dilute a lot of the fixed expenses, has been very beneficial. We're getting better labor efficiencies as well.

    In Q4, about 53% of what we built was on our latest pricing. So that leaves about 47% to be built at the older pricing in Q4. So going forward, we're thinking that Q1 will be built predominantly on the June '19 price increase, which was 5%. And so you can do the ratio and math there and see that there was still some accretion to the gross margin available due to that price increase, somewhat offset by the 2020 wage increases. So it won't be absolutely accretive, but it will be somewhat accretive. The water source heat pumps, 2019, we had revenue of $25 million. That is versus $14 million in 2018. So '18 was double '17's revenue. '19 is up considerably again. '20, we think that, that slope will be a little shallower than it was '19 versus '18, but we're looking at a very solid business going forward with the heat pumps.

    We've been working on updating a lot of our products and improving them because there is technology improvements in components and strategies. Our Norman Asbjornson Innovation Center is nearly fully utilized right now. We only have one chamber that is not totally usable. And this has allowed us to accelerate our development of new products. We received multiple awards throughout 2019 for introducing these industry-leading strategies and industry-leading efficiencies. Replacement market versus the new market still remains relatively constant for us on an annual basis of about 50% each. In Q1, we booked a fair amount of orders for replacement market, more percentage than we do new construction in Q1. That's preparing for primarily the school season where we're doing a lot of change out of units in schools.

    The markets that we're participating in have remained very consistent over the last 3, maybe 4 quarters. So I don't see any particular market accelerating versus any others. The current scenario with markets is it looks like that going forward, manufacturing is doing quite well. I think we can thank the current administration for incentivizing manufacturers to be in North America -- in the United States. And we're seeing a direct result of that with people either improving the HVAC equipment on existing manufacturing plants that might have been mothballed at one time but are now being repurposed or in new manufacturing.

    So let's talk about the backlog. December 31, '19, it was $142.7 million versus $151.8 million a year ago. So we decreased it 6%. While at the same time, we increased our production rate. So at this point in time, we have generated production capacity that's equal to or slightly greater than our booking capacity. We have additional sheet metal manufacturing capacity coming online as we speak. And we're also seeing bookings strengthen a bit over what they were due to our reduced lead times. So I think it will be a seesaw battle throughout 2020 to stay up with the bookings as they become more prevalent in light of the shorter lead times that we've been able to publish for people.

    We're building a new 220,000 square foot manufacturing facility in Longview, Texas that supplements our existing 234,000 square foot facility there. So you can see it's nearly doubling the footprint. One of the benefits of that is there's -- about 77,000 square foot of that building will be utilized for relocating our inventory of coils that we manufacture in Longview to be used in Tulsa product. So that 77,000 square foot will be freed up in Tulsa to allow us to install some additional sheet metal manufacturing equipment here in Tulsa and delay the need for us to build a building here in Tulsa.

    So now I would like to -- Norman, would you like to have any comments?

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    Norman H. Asbjornson, AAON, Inc. - Founder, Chairman & CEO [6]

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    Yes. Thank you. Glad to say hello to all of you again. We have traveled through a great deal of change in management of the company over the past 3 years since Gary came onboard. I've been here to help at the level I am, but all the people who I asked to stay around, a lot of the ones I asked to stay around until Gary came onboard so he would be given the freedom of choosing his replacements, have left. So we've had quite a large turnover of managerial personnel, which has caused us some problems for the past couple of years.

    Those days are behind us. The new managers, all of whom came out of the existing personnel within our company, we did not have to go outside to get these managers, are coming up to the level of efficiency that we have historically had. We've had a very high degree of efficiency. And we're on the road back to it now. And I think, in my mind, I'm not going to be so much a part of it anymore, that they have the abilities to exceed the degree of efficiencies, which we -- had occurred prior to this beginning of changeover of management.

    Along the way, we've dropped the average age of this management by some 20, some to 30 years. So we're not going to be looking at another change necessitated by aging out of the management. And the company has got a lot of talent in the age groups in the 30s and the early 40s now running the company, and you can see the kind of performance they're giving. I fully expect this to increase and the company to move forward at least in the rate we have historically moved forward in both profitability and revenue and then a very good chance that both of them will accelerate even more. So we're feeling very positive about the future of AAON.

    And I'd like to thank all of you who have supported me during the 33 years that I was building this company to what it is. It was time I turn it over to Gary and the new management. Thank you, and hope to listen in on a couple more calls.

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    Gary D. Fields, AAON, Inc. - President & Director [7]

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    Do we have any questions?

    ================================================================================

    Questions and Answers

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    Operator [1]

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    (Operator Instructions) Your first question comes from the line of Brent Thielman of D.A. Davidson.

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    Brent Edward Thielman, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [2]

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    I guess maybe just starting -- maybe just around the question of supply disruptions, there's been a little bit of that in the news here lately. Update us on what you're seeing. I -- if I remember right, you're waiting on a few more sheet metal machines to come in the new year to support some of that capacity in the factory, I guess, any disruptions you're seeing there? Is everything on schedule?

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    Gary D. Fields, AAON, Inc. - President & Director [3]

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    So far, everything is on schedule. We've been receiving roughly 1 new machine a month for several months now. Four of those machines we have in operation, 4 of those machines are yet to be put in operation. So they'll provide us additional capacity. One of those machines should go full capacity tonight or tomorrow, 2 machines next Friday and 1 machine following in about 30 days. Those are machines that are on premises. We will be receiving another machine that's already being unloaded at the port right now that will be here next week or the following week. So the machines that we have now have us running at a production rate that's relatively in line with our bookings rate. So these other 4 machines as they can't come on will afford us additional capacity and allow bookings to increase without increasing lead time. So I think that we've got this in pretty good alignment to stay pace, production capacity increases with bookings increases and that will be the challenge that we'll see. But I don't see any interruptions at this point in time for any of the needed machines coming in.

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    Brent Edward Thielman, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [4]

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    Okay. That's good to hear. And I guess, Gary, just to kind of sum that up, as these new machines come in by the third quarter, you'll expect all of that capacity to be ready to support that increase in bookings?

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    Gary D. Fields, AAON, Inc. - President & Director [5]

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    The machines that we have now -- essentially, we're getting 1 machine per month through the end of the year. We have 8 more machines to come. And so those 8 more machines are coming approximately 1 per month. So I don't expect to get the last machine until, I think, late September, and it takes about 45 days to put those into beneficial use. So I've actually got a milestone that's dated 12/15/20. And of those 8 machines to come, one of them is being unloaded at the port right now, and 2 of them are on the water coming over. So there could be some delay in 5 -- one of those 5 machines that we've not been notified of. But I think it would be a pretty minor delay from anything that we've seen. And the other thing is, is those other machines that are not yet on the water coming over here, those are force capacity increases that we anticipate needing in mid- to late '21. I don't think any of the machines that we're depending on to meet capacity demands in 2020 are jeopardized at all.

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    Brent Edward Thielman, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [6]

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    Okay. Okay. And it looks like good water source heat pump sales for the year. I guess, as I was backing into it, am I right that -- were sales and revenue dollars down in 4Q?

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    Gary D. Fields, AAON, Inc. - President & Director [7]

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    On the water source heat pump?

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    Brent Edward Thielman, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [8]

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    Yes.

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    Gary D. Fields, AAON, Inc. - President & Director [9]

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    For Q4...

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    Rebecca A. Thompson, AAON, Inc. - CAO & Treasurer [10]

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    Fourth quarter...

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    Gary D. Fields, AAON, Inc. - President & Director [11]

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    I don't have it broken out that way right here. It looks like it could have been just slightly off, but I don't think it was anything material that I recall. So I'm not sure exactly how you're discerning that to make that assumption.

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    Brent Edward Thielman, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [12]

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    Just backing out what I saw in the 10-K, the prior 2 quarters. I guess what I was really getting to is I was just wondering, given that has been a little bit of a drain on the gross margin, whether that helped a bit here in the quarter since you didn't know...

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    Read more from the original source:
    Edited Transcript of AAON earnings conference call or presentation 27-Feb-20 9:15pm GMT - Yahoo Finance

    What to look for in a procure-to-pay solution – Fleet Owner - March 5, 2020 by admin

    In aFleet Ownerarticlelooking towards the next decade, it was said that numerous freight transportation experts suggested there is likely to be more advancements during the next 10 year than in the past five decades combined.

    In that article, Daimler Trucks North Americas Roger Nielsen said, you cant bring fuel efficiency changes every day.

    I am sure Nielsen was talking from a manufacturing point of view. But the same can be said from a technology adoption point of view. In our Annual Fleet Fuel Study we look at fleet adoption of 85 different technologies and practices. Sometimes you do see huge increases in the adoption rate of a specific technology from one year to the next.

    For example, in the 2019 study we saw a 1,389% increase in the adoption rate of tractor gap reducers and a 126% increase in the use of solar panels from 2017 to 2018. And after years of slow growth in automated technologies, they moved from 25 to 70% in just three years! But what is more normal is a slower adoption over a period of years.

    This is due in part because the vast diversity of needs in the industry can make the adoption of a specific fuel-saving technology slow, as it might not be suited for all applications. Also, fleets have multiple demands and challenges including access to capital, levels of risk tolerance, whether they buy or lease their vehicles, whether they have company drivers or use independent contractors, whether they do their own maintenance or outsource it. The list goes on and on. And, of course, there is the fact that trucks have different duty cycles and operate in different geographic locations. Wow, the many challenges when deciding what and when to buy.

    What weve learned from years of conducting the Fleet Fuel Study is that technologies take a long time to scale from small deployment projects to use by innovative fleets and early adopters to late adopters and laggards. At that point the new product has reached a saturation point and most fleets are receiving value from it. Think trailer skirts and down sped powertrains.

    One other thing we learned from the Fleet Fuel Studies is that current diesel fuel prices are not the only motivating factor in a fleets decision to invest in fuel-saving technology. They also look at things like regulations and sustainability. More on that in a future blog.

    I suspect that no matter what the technology, we will continue to see adoption rates follow the normal pattern weve seen for a variety of other technologies over the years.

    See original here:
    What to look for in a procure-to-pay solution - Fleet Owner

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