AAON, Inc.

Good afternoon, ladies and gentlemen. Welcome to Aon, Inc., first quarter sales and earnings call. There will be questions and answer period after the management's brief presentation. This call will last approximately 45 minutes to an hour. I would like to turn the meeting over to Mr. Gary Fields. Sir, the floor is yours.

Good afternoon. I'd like to start by reading a forward-looking disclaimer. 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 AON's control that could cause AON'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'd like to turn it over to Scott Asbjornson to discuss the first quarter numbers.

Welcome to our conference call. I'd like to begin by discussing the comparative results of the three months ended March 31st, 2020 versus March 31st, 2019. Net sales were up 20.8% to $137.5 million from $113.8 million. Net sales for the quarter are up due primarily to our increased sheet metal production from the additional Salvagnini machines that were placed into operation. Our gross profit increased 68.9% to $42.9 million from $25.4 million. As a percentage of sales, Gross profit was 31.2% in the quarter just ended compared to 22.3% in 2019. We continue to see overall raw material costs decrease. The company has improved its labor and overhead efficiencies through increased production and absorption of fixed costs. Selling, general, and administrative expenses increased 11.2%. to 15.2 million from 13.7 million in 2019. Additionally, as a percentage of sales, SG&A decreased to 11.1% of total sales in the quarter just ended from 12.0% in 2019. Income from operations increased 142.3% to 27.8 million or 20.2% of sales from 11.5 million or 10.1% of sales in 2019. Our effective tax rate decreased to 21.5% from 23.5%. The company's estimated annual 2020 effective tax rate, excluding discrete events, is expected to be approximately 25%. Net income increased to 21.9 million or 15.9% of sales compared to 8.8 million or 7.7% of sales in 2019. Diluted earnings per share increased by 141.2% to 41 cents per share from 17 cents per share. Diluted earnings per share were based on 52,871,000 shares versus 52,370,000 shares in the same period a year ago. At this time, I'll turn it over to Rebecca Thompson, our Chief Accounting Officer and Treasurer, to discuss our balance sheet.