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1 Member FINRA & SIPC Required disclosures appear in the Appendix. 122 East 42 nd Street New York, NY (212) (212) AAON, Inc. (AAON-$23.39) Morning Meeting Note NEUTRAL Raise Price Target; Raise Earnings Estimates Target: $23 Joseph Mondillo (212) December 17, 2015 Market Cap (Mil) $1,280 Avg. Daily Trading Volume 154,000 Shares Out (Mil) Float Shares (Mil) Institutional Holdings / Analysts Covering 52% / 3 Dividend / Dividend Yield $0.17 / 0.7% Free Cash Flow Per Share (2017E) $ E 2016E 2017E OLD NEW OLD NEW OLD NEW Mar. $0.16 $0.15A $0.17 $0.18 $0.20 $0.19 June A Sep A Dec EPS $0.83 $0.79 $0.81 $0.90 $0.93 $1.03 $1.04 P/E 28.9x 25.2x 22.5x EBITDA $83.3 $80.1 $80.9 $88.1 $91.7 $97.6 $101.3 in millions EV / EBITDA 15.0x 13.2x 12.0x Price to Book Value 3.7x Return on Equity (2017E) 34.1% Total Debt to Total Capital Nil 5-Year EPS Growth Rate Projection 20% 52-Week Range (NASDAQ) Net Cash Per Share (2017E) $1.50 Short Interest (Mil) / Russell / 1149 Action Date Px Rating PT PT 12/20/ PT 3/14/ PT 8/8/ PT 1/3/ Rating 4/24/ Buy 23 PT 4/24/ PT 5/5/ Rating 2/6/ Neutral 25 PT 8/6/ PT 10/19/ Note: 2014 excludes one-time items of $ , 2015E, 2016E and 2017E include stock-based compensation expense of $0.04, $0.05, $0.05 and $0.06, respectively. Sum of quarterly EPS may not equal full-year total due to rounding and/or change in share count. The Russell 2000 Index includes AAON. NC=Not covered by. Year E 2016E 2017E Rev.(Mil.) $280.0 $245.3 $244.6 $266.2 $303.1 $321.1 $356.3 $352.1 $378.7 $401.4 GAAP EPS $0.47 $0.49 $0.38 $0.25 $0.49 $0.68 $0.80 $0.81 $0.93 $1.04 Description: AAON, Inc. ( is a leading domestic manufacturer of standard and custom heating, ventilating and air conditioning (HVAC) units, including unitary rooftops, chillers, air-handling units, make-up air units, heat recovery units, condensing units, coils and boilers. Products target the nonresidential market, specifically planned replacement (55%) and new construction (45%). AAON generates almost all of its revenue from the U.S. Headquarters are in Tulsa, OK. Raise Target To $23 (From $20); Expect Improving End-Markets And Share Gains Will Spur EPS Acceleration In 2016; Maintain NEUTRAL Rating We increase our EPS estimates for 2015 to $0.81 (from $0.79), 2016 to $0.93 (from $0.90) and 2017 to $1.04 (from $1.03). In our view, AAON s main nonresidential construction markets are healthy and will grow at a high-single digit rate in Strong end-markets of note are education, healthcare and office, while retail looks to be weak. Furthermore, while we expect the sluggish economy will hurt replacement spending we think that AAON will reverse 2015 s sales decline in 2016 and 2017 by growing its market share via an enhanced selling effort. Overall, after underperforming in 2015, we expect AAON will outperform the nonresidential HVAC market by growing revenue an estimated 8% in 2016 versus projected market expansion in the low- to mid-single digits. We increase our target to $23 (from $20) while maintaining our NEUTRAL rating. Our new target is 22x our new 2017 EPS estimate $1.04 (12x 2017 EBITDA). Our prior target was 19x our previous 2017 EPS estimate of $1.03. We note that the stock s multiples of 26x and 13.5x our forward EPS and EBITDA estimates exceed its 10-year averages of 22x and 10x, respectively, and peer Lennox International (NYSE: LII, NC) current multiples of 20x and 13x. In our view, a growing nonresidential construction market In Exhibit 1, we illustrate spending on construction (construction makes up about 50% of AAON s sales) of AAON s five major nonresidential markets (education, commercial, manufacturing, office and healthcare; construction and replacement sales in these markets make up about 90% of total sales). As shown, through the month of October, spending on construction in AAON s markets grew at roughly 20%, which is stronger than almost any other industrial market. According to the Architectural Billings Index (ABI), which has been above Copyright 2015

2 53.0 four of the last five readings, construction of nonresidential buildings should continue at a similar pace over the next nine to 12 months. Moreover, Lennox International s management team speaking at a conference yesterday stated they expect growth in the construction market as this year will be around 10%. will keep sales and earnings growing without any help from replacement sales. AAON s replacement business has been weak for much of 2015 as slow economic growth, particularly in energy-centric regions of the country, weighed on demand. Also, according to Lennox International, building owners opted to spend more on things like cyber security and ecommerce infrastructure and less on HVAC equipment. As a result, we estimate replacement demand was down midsingle digits through the bulk of 2015 and anticipate no growth in Nevertheless, we think the long-term fundamentals are strong, as (according to Lennox) the average age of the installed base of rooftop units in the market is at the higher end of an average 15-year life span and that replacement demand will accelerate over the next 5-10 years. Nonetheless, we anticipate slow demand for the next months. Moreover, we expect AAON s recent sales and marketing efforts will succeed in growing its market share. In 2015, AAON made several changes to its selling effort aimed at expanding its share of the overall nonresidential HVAC market. Early in the year, the company added three regional sales managers, boosting the total to seven in an effort to manage more efficiently its 80-plus independent sales representative firms. Consequently, AAON saw 10% turnover among its independent sales reps and the company underperformed the industry in 2Q:15 and 3Q:15. However, management thinks that the disruptions caused by the changes are in the past and that the new sales reps will be more effective in their respective regions than those they replaced, as some have many more reps and some are just more effective businesses. We saw some positive results in 3Q:15, most notably a 10% increase in backlog and better order rates. In our view, we think that AAON can reverse 2015 s underperformance relative to the market with 8% revenue growth in 2016 versus projected market growth in the low- to mid-single digits. As such, we increase our EPS estimates for 2015 to $0.81 (from $0.79), 2016 to $0.93 (from $0.90) and 2017 to $1.04 (from $1.03) and note that our new forecasts represent a decline of 1.2% followed by growth of 7.6% and 6.0%, in the respective years. Exhibit 2: AAON's Sales Growth Versus Peer Group 1Q:12 2Q:12 3Q:12 4Q:12 1Q:13 2Q:13 3Q:13 4Q:13 1Q:14 2Q:14 3Q:14 4Q:14 1Q:15 2Q:15 3Q:15 AAON 8.4% 20.6% 4.0% 23.0% 2.9% 9.5% 16.8% -5.9% 14.3% 1.2% 14.7% 15.5% 0.5% -2.2% -8.3% Lennox International 1.8% 1.2% -1.8% 4.3% 4.0% 3.7% 8.8% 13.4% 6.1% 5.0% 1.0% 4.9% -7.6% 5.2% 2.2% Industry 5.5% 9.1% 6.2% 6.2% -0.6% -0.9% 3.3% 9.1% 10.8% 6.2% 7.8% -1.1% -1.7% 14.7% 1.1% *3Q:15 industry data includes just July and August. Source: AHRI, and company reports We anticipate free cash flow will be light in 2015 and 2016 due to heavy capital spending. We estimate FCF of $35 million ($0.65 per share) in 2015, $23 million ($0.42 per share) in 2016 and $50 million ($0.93 per share), based on estimated capital spending of $20 million, $39 million and $19 million in the respective years. We raise our target to $23 (from $20), but maintain a NEUTRAL rating. While we increased our EPS estimates through 2017, the increases were not enough to push our target into BUY territory. AAON s shares trade at 25x and 13x our respective 2016 EPS and EBITDA estimates, which are both premiums to the 10-year average multiples of 22x and 10x. In fact, over the last 10 years, the company s stock traded at a forward P/E higher than the current 25.2x just 5% of the time. Moreover, AAON s peer Lennox International is trading at 20x forward EPS and 13x forward EBITDA. On a comparable basis, we suggest investors look at EV/EBITDA multiples due to the higher amount of non-cash amortization expenses related to goodwill that Lennox realizes. We derive our target by applying a multiple of 22x our just-raised 2017 EPS estimate of $1.04, or 12x our 2017 EBITDA estimate plus net cash of $63 million. Previously, we valued the stock at 19x our prior 2017 EPS estimate of $1.03, or 10x our prior 2017 EBITDA estimate of $98 million. We increased our valuation multiple to reflect our increased confidence that earnings will accelerate in While Lennox is a much larger company than AAON with more market share and a strong management team, we think that AAON s specialization in larger tonnage, higher-margin equipment justifies a comparable multiple. 2

3 Key Risks Construction does not improve Steel and copper prices rise U.S. recession 3

4 Table 1. AAON, Inc. Income Statement (in thousands, except where noted) MarA JunA SepA DecA 2014 MarA JunA SepA DecE 2015E MarE JunE SepE DecE 2016E MarE JunE SepE DecE 2017E Sales, net $76,367 $92,310 $102,917 $84,728 $356,322 $76,768 $90,275 $94,360 $90,659 $352,062 $81,374 $99,303 $102,852 $95,192 $378,721 $86,257 $105,261 $109,024 $100,903 $401,444 Cost of sales 54,521 64,434 69,567 59, ,059 54,970 63,158 64,175 64, ,399 57,776 67,824 69,940 66, ,364 61,415 71,051 73,264 69, ,655 Gross profit 21,846 27,876 33,350 25, ,263 21,798 27,117 30,185 26, ,663 23,598 31,479 32,913 28, ,357 24,842 34,210 35,760 30, ,789 SG&A 7,629 10,584 13,830 8,519 40,562 8,317 9,200 10,062 8,794 36,373 8,015 9,086 10,337 9,138 36,577 8,194 9,263 10,466 9,334 37,257 Other (24) (281) (305) 5 (30) (34) (59) 0 0 Operating income 14,241 17,292 19,520 16,953 68,006 13,476 17,947 20,157 17,769 69,349 15,583 22,393 22,576 19,229 79,781 16,648 24,947 25,293 21,644 88,532 Operating income (ex. one-time items) 14,241 18,292 22,520 16,672 71,725 13,476 17,947 20,157 17,769 69,349 15,583 22,393 22,576 19,229 79,781 16,648 24,947 25,293 21,644 88,532 Interest expense (69) (71) (55) (81) (276) (44) (29) (14) (25) (112) (20) (20) (15) (15) (70) (15) (15) (15) (15) (60) Other (income) expense 21 (34) (27) Income before income taxes 14,289 17,397 19,532 17,028 68,246 13,445 18,003 20,113 17,784 69,345 15,593 22,403 22,581 19,234 79,811 16,653 24,952 25,298 21,649 88,552 Income tax provision 4,467 6,034 7,092 6,495 24,088 5,046 6,873 6,862 6,580 25,361 5,769 8,289 8,355 7,116 29,530 6,161 9,232 9,360 8,010 32,764 Net Income $9,822 $11,363 $12,440 $10,533 $44,158 $8,399 $11,130 $13,251 $11,204 $43,984 $9,824 $14,114 $14,226 $12,117 $50,281 $10,491 $15,720 $15,938 $13,639 $55,787 Net Income (ex. one-time items) $9,145 $12,016 $14,360 $10,353 $45,874 $8,399 $11,130 $13,251 $11,204 $43,984 $9,824 $14,114 $14,226 $12,117 $50,281 $10,491 $15,720 $15,938 $13,639 $55,787 GAAP Diluted EPS $0.18 $0.20 $0.22 $0.19 $0.80 $0.15 $0.20 $0.24 $0.21 $0.81 $0.18 $0.26 $0.26 $0.22 $0.93 $0.19 $0.29 $0.30 $0.25 $1.04 Diluted EPS $0.16 $0.22 $0.26 $0.19 $0.83 $0.15 $0.20 $0.24 $0.21 $0.81 $0.18 $0.26 $0.26 $0.22 $0.93 $0.19 $0.29 $0.30 $0.25 $1.04 Diluted shares outstanding 55,613 55,568 55,484 54,816 55,370 54,640 54,670 54,580 54,471 54,590 54,471 54,375 54,271 54,171 54,322 54,051 53,931 53,811 53,691 53, % -1.41% -0.49% -0.83% YOY Growth: Revenue 14.3% 1.2% 14.7% 15.5% 11.0% 0.5% -2.2% -8.3% 7.0% -1.2% 6.0% 10.0% 9.0% 5.0% 7.6% 6.0% 6.0% 6.0% 6.0% 6.0% Cost of sales 5.8% 1.4% 10.3% 11.9% 7.2% 0.8% -2.0% -7.8% 7.7% -0.7% 5.1% 7.4% 9.0% 4.3% 6.5% 6.3% 4.8% 4.8% 4.6% 5.1% SG&A 9.5% 16.4% 42.8% 3.3% 19.3% 9.0% -13.1% -27.2% 3.2% -10.3% -3.6% -1.2% 2.7% 3.9% 0.6% 2.2% 1.9% 1.3% 2.1% 1.9% Gross profit 42.7% 0.7% 25.3% 24.8% 20.6% -0.2% -2.7% -9.5% 5.4% -2.4% 8.3% 16.1% 9.0% 6.8% 10.1% 5.3% 8.7% 8.7% 9.2% 8.1% Operating income 70.8% -7.3% 15.3% 42.3% 21.8% -5.4% 3.8% 3.3% 4.8% 2.0% 15.6% 24.8% 12.0% 8.2% 15.0% 6.8% 11.4% 12.0% 12.6% 11.0% Net income 37.6% -6.2% 18.2% 35.6% 22.8% -14.5% -2.1% 6.5% 6.4% -4.1% 17.0% 26.8% 7.4% 8.2% 14.3% 6.8% 11.4% 12.0% 12.6% 11.0% Diluted EPS 63.7% -0.6% 36.6% 37.7% 28.5% -6.5% -5.9% -6.2% 7.0% -3.1% 17.3% 27.5% 8.0% 8.8% 14.9% 7.6% 12.3% 13.0% 13.6% 11.9% Margin Analysis: COGS/sales 71.4% 69.8% 67.6% 70.3% 69.6% 71.6% 70.0% 68.0% 70.7% 70.0% 71.0% 68.3% 68.0% 70.2% 69.3% 71.2% 67.5% 67.2% 69.3% 68.7% SG&A/sales 10.0% 10.4% 13.4% 10.1% 11.4% 10.8% 10.2% 10.7% 9.7% 10.3% 9.9% 9.2% 10.1% 9.6% 9.7% 9.5% 8.8% 9.6% 9.3% 9.3% Gross profit margin 28.6% 30.2% 32.4% 29.7% 30.4% 28.4% 30.0% 32.0% 29.3% 30.0% 29.0% 31.7% 32.0% 29.8% 30.7% 28.8% 32.5% 32.8% 30.7% 31.3% Operating margin (ex. one-time items) 18.6% 19.8% 21.9% 20.0% 19.1% 17.6% 19.9% 21.4% 19.6% 19.7% 19.2% 22.6% 22.0% 20.2% 21.1% 19.3% 23.7% 23.2% 21.5% 22.1% Pretax margin 18.7% 18.8% 19.0% 20.1% 19.2% 17.5% 19.9% 21.3% 19.6% 19.7% 19.2% 22.6% 22.0% 20.2% 21.1% 19.3% 23.7% 23.2% 21.5% 22.1% Net margin 12.9% 12.3% 12.1% 12.4% 12.4% 10.9% 12.3% 14.0% 12.4% 12.5% 12.1% 14.2% 13.8% 12.7% 13.3% 12.2% 14.9% 14.6% 13.5% 13.9% Tax rate 31.3% 34.7% 36.3% 38.1% 35.3% 37.5% 38.2% 34.1% 37.0% 36.6% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% Source: and company reports 4

5 Table 2. AAON, Inc. Cash Flow Statement (in thousands, except where noted) 2014 MarA JunA SepA DecE 2015E 2016E 2017E Cash flows from operating activities Net income $44,158 $8,399 $11,130 $13,251 $11,204 $43,984 $50,281 $55,787 Depreciation 11,553 2,804 2,795 2,988 2,925 11,512 11,875 12,800 Amortization of bond premiums Provision for losses on account receivable (22) (59) (43) 54 (48) Provision for excess and obsolete inventories (170) (111) (Gain)/loss on disposition of assets (305) 5 (30) (34) (59) Share-based compensation 2, ,576 2,950 3,350 Excess tax benefits from stock options exercised (1,239) (1,098) (1,354) 235 (2,217) Deferred income taxes (2,111) (443) (120) (437) (1,000) Other Change in assets and liabilities (2,794) (5,875) (5,605) 7,399 4, (3,068) (2,682) Net cash provided by operating activities 52,279 4,335 7,654 24,197 18,910 55,096 62,038 69,256 Cash flows from investing activities Other 0 Investment in certificates of deposit and other 9,779 11,601 2,820 (19,377) (4,956) Capital expenditures (16,127) (3,587) (5,717) (3,471) (7,000) (19,775) (39,000) (19,000) Net cash provided by investing activities (6,029) 8,014 (2,897) (22,848) (7,000) (24,731) (39,000) (19,000) Cash flows from financing activites Exercise of stock options 1,318 1,082 1, ,640 Excess tax benefits from stock options exercised 1,239 1,098 1,354 (235) 2,217 Repurchase of common stock (29,284) (2,955) (3,489) (2,992) (2,500) (11,936) (7,500) (12,000) Cash dividends paid to stockholders (9,656) (5,965) (5,992) (11,957) (14,097) (16,125) Net cash provided by (used in) financing activities (36,383) (775) (683) (9,086) (8,492) (19,036) (21,597) (28,125) Net change in cash 9,867 11,574 4,074 (7,737) 3,418 11,329 1,441 22,130 Cash, beginning of period 12,085 21,952 33,526 37,600 29,863 21,952 33,281 34,722 Cash, ending of period $21,952 $33,526 $37,600 $29,863 $33,281 $33,281 $34,722 $56,852 Free cash flow 36,152 $748 $1,937 $20,726 $11,910 35,321 23,038 50,256 FCF per share $0.65 $0.01 $0.04 $0.38 $0.22 $0.65 $0.42 $0.93 Source: and company reports 5

6 Table 3. AAON, Inc. Balance Sheet (in thousands, except where noted) 2014E MarA JunA SepA 2015E 2016E 2017E Assets Current assets: Cash 21,952 33,526 37,600 29,863 33,281 34,722 56,852 Short-term securities 18,070 9,164 12,341 19,066 19,066 19,066 19,066 Accounts receivable 44,092 39,865 45,480 45,825 43,332 46,073 48,837 Income tax receivable 2,569 2,381 3,385 2,172 2,172 2,172 2,172 Note receivable Inventories 37,618 44,546 47,182 41,052 38,278 40,500 42,379 Prepaid expenses , Deferred income tax 6,143 6,272 5,837 6,155 6,155 6,155 6,155 Total current assets 131, , , , , , ,890 Property, plant and equipment, net 91,922 92,771 95,795 96,296 94, , ,060 Long-term securities 10,112 7,299 1,311 13,882 13,882 13,882 13,882 Total assets 233, , , , , , ,832 Liabilities and stockholders' equity Current liabilities: Accounts payable 11,370 10,125 10,513 7,759 11,368 12,028 12,587 Dividends payable 5,982 Accrued liabilities 31,343 28,518 30,755 34,482 29,484 30,739 32,166 Total current liabilities 42,713 38,643 47,250 42,241 40,853 42,768 44,753 Deferred tax liabilities 13,677 13,363 12,808 12,689 12,689 12,689 12,689 Other long-term liabilities 2,668 2,632 2,525 1,797 1,797 1,797 1,797 Total stockholders' equity 174, , , , , , ,593 Total liabilities and stockholders' equity 233, , , , , , ,832 Key Financial Ratios: Long-term debt/total capital 1.5% 1.4% 1.3% 0.9% 0.9% 0.8% 0.7% Book value/share $3.14 $3.27 $3.37 $3.58 $3.56 $3.88 $4.68 Net cash/share $0.91 $0.91 $0.94 $1.15 $1.22 $1.25 $1.67 Days' sales outstanding Inventory turnover Fixed asset turnover Return on equity (ROE) 28.6% 23.1% 94.2% 16.9% 22.8% 18.6% 79.0% Return on assets (ROA) 22.2% 18.1% 71.9% 13.4% 18.4% 15.1% 69.0% Return on total capital (ROTC) 28.2% 22.8% 93.0% 16.8% 22.6% 18.4% 78.4% Source: and company reports 6

7 Appendix Required Disclosures AAON, Inc. (AAON-$23.39) NEUTRAL Target: $23 December 17, 2015 Action Date Px Rating PT PT 12/20/ PT 3/14/ PT 8/8/ PT 1/3/ Rating 4/24/ Buy 23 PT 4/24/ PT 5/5/ Rating 2/6/ Neutral 25 PT 8/6/ PT 10/19/ Key Risks Construction does not improve Steel and copper prices rise U.S. recession Valuation: We raise our target to $23 (from $20), but maintain a NEUTRAL rating. While we increased our EPS estimates through 2017, the increases were not enough to push our target into BUY territory. AAON s shares trade at 25x and 13x our respective 2016 EPS and EBITDA estimates, which are both premiums to the 10-year average multiples of 22x and 10x. In fact, over the last 10 years, the company s stock traded at a forward P/E higher than the current 25.2x just 5% of the time. Moreover, AAON s peer Lennox International is trading at 20x forward EPS and 13x forward EBITDA. On a comparable basis, we suggest investors look at EV/EBITDA multiples due to the higher amount of non-cash amortization expenses related to goodwill that Lennox realizes. We derive our target by applying a multiple of 22x our just-raised 2017 EPS estimate of $1.04, or 12x our 2017 EBITDA estimate plus net cash of $63 million. Previously, we valued the stock at 19x our prior 2017 EPS estimate of $1.03, or 10x our prior 2017 EBITDA estimate of $98 million. We increased our valuation multiple to reflect our increased confidence that earnings will accelerate in While Lennox is a much larger company than AAON with more market share and a strong management team, we think that AAON s specialization in larger tonnage, higher-margin equipment justifies a comparable multiple. Required Disclosures The (Sidoti) Equity Research rating system consists of BUY and NEUTRAL recommendations. BUY suggests capital appreciation of at least 25% from initiation of coverage over the next 12 months, while NEUTRAL denotes that a stock is not likely to provide similar gains over a 12-month period. As of 12/17/15, Sidoti provides research on 258 companies, of which 199 (77%) are rated BUY and 59 (23%) are rated NEUTRAL. Of the BUYS, Sidoti has received investment banking income from 2 companies (1.01%). Of the NEUTRALS, Sidoti has received investment banking income from 1 company (1.69%). Of the NEUTRALS, 21 trade above our price targets. A risk to our price target is that the analyst s estimates or forecasts may not be met. This report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from such forward-looking statements. Factors that may cause such a difference include, but are not limited to, those discussed in the Risk Factors section in the SEC filings available in electronic format through SEC Edgar filings at The research analyst certifies that this report accurately reflects his/her personal views about the subject securities and issuers and that none of the research analyst's compensation was, is or will be directly or indirectly related to the analyst's specific recommendations or views contained in this research report. Sidoti research analysts seek to have management of their covered companies meet with investors during non-deal road shows. Analysts compensation may be related to their success in scheduling non-deal road shows. Sidoti research analysts generally do not cover (or continue to cover) those companies that limit access to their senior executives by not participating in Sidoti-sponsored conferences and non-deal roadshows. A possible effect of this view may be that continued coverage decisions are made, in part, based on the willingness of management of covered companies to participate in such meetings. This approach could be viewed as presenting potential conflicts of interest. Sidoti does NOT own securities of the issues described herein. Sidoti policy does not allow an analyst or a member of their household to own shares in any company that he/she covers. Sidoti policy does not allow employees or household members to serve as an officer or director of a covered company. Sidoti does not make a market in any securities. Sidoti has non-research employees that will seek compensation for investment banking services from this company and trading revenue in connection with trading the securities of this company. Investment banking services, as defined under NASD Rule 2711, includes, among other things, 7

8 Appendix Continued acting as an underwriter in or as a member of the selling group in a securities underwriting. Sidoti s role in any investment banking transaction can be viewed on this company s filings at Sidoti employees, including research analysts, receive compensation that is based in part upon the overall performance of the firm, including revenues generated by Sidoti s investment banking and brokerage activities, but compensation is not directly related to investment banking or brokerage revenues. Sidoti acted as an agent and received non-investment banking securities-related income from AAON. Other Disclosures This report is for information purposes only and is not intended as an offer to sell or a solicitation to buy securities. Sidoti does not maintain a predetermined schedule for publication of research and will not necessarily update this report. The stock rating on this report reflects the analyst s recommendation based on a 12 month period. Information contained herein is based on sources we believe to be reliable but we do not guarantee their accuracy. Prices and opinions concerning the composition of market sectors included in this report reflect the judgments as of this date and are subject to change without notice. It should be presumed that the analyst who authored this report has had discussions with the subject company to ensure factual accuracy prior to publication. This report was prepared for market professionals and institutional investor customers. Market professionals and institutional investors should consider this report as only a single factor in making their investment decisions. This research report is not a substitute for the exercise of your independent judgment. At times, Sidoti may be in possession of material non-public information, none of which is used in the preparation of our research. Sidoti maintains and enforces written policies and procedures reasonably designed to prevent any controlling persons, officers (or persons performing similar functions), or employees of Sidoti from influencing the activities of research analysts and the content of research reports prepared by the research analyst. Reprints of reports are prohibited without permission. Additional information is available upon request. 8