Net Sales of $980.7 Million Up 16.6% YoY; Up 14.7% on an Organic Daily Basis
Net Income of $68.3 Million, or $1.75 Per Share; EBITDA of $108.6 Million
Raising Fiscal 2022 Guidance for Sales, EBITDA Margin, and EPS
CLEVELAND--(BUSINESS WIRE)--Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2022 third quarter ended March 31, 2022.
Net sales for the quarter increased 16.6% to $980.7 million from $840.9 million in the prior year. The change includes a 0.4% increase from acquisitions and a 1.6% benefit from one extra selling day, partially offset by a negative 0.1% impact from foreign currency translation. Excluding these factors, sales increased 14.7% on an organic daily basis reflecting a 13.6% increase in the Service Center segment and a 17.1% increase in the Fluid Power & Flow Control segment. The Company reported net income of $68.3 million, or $1.75 per share, and EBITDA of $108.6 million. On a pre-tax basis, results include $7.4 million ($0.14 after tax per share) of LIFO expense compared to $0.8 million ($0.02 after tax per share) of LIFO expense in the prior-year period.
Neil A. Schrimsher, Applied’s President & Chief Executive Officer, commented, “We had another strong quarter with sales and earnings achieving new records. Underlying business momentum strengthened further during the quarter, while our technical industry position is supporting greater growth opportunities and our ability to effectively manage through ongoing inflationary pressures industry wide. Combined with solid cost leverage, EBITDA grew more than 25% over the prior year and nearly 40% on a 2-year stack basis, while EBITDA margin exceeded 11%, representing a key milestone for the Company. In addition, free cash generation increased year over year and sequentially inclusive of ongoing working capital investment. This performance is driving strong improvement in our returns on capital, and demonstrates Applied’s increasingly favorable and differentiated position as requirements and secular investments across the industrial supply chain continue to expand.”
Mr. Schrimsher added, “Based on our third quarter performance and our current outlook, we are raising fiscal 2022 guidance for sales, EBITDA margins, and EPS for the second time this year. Positive demand trends are persisting across our business with organic sales month to date in April up by a low double-digit percent year over year. While we continue to navigate an extremely dynamic supply chain and inflationary environment, we expect ongoing benefits from our operational execution, inventory management, and internal margin initiatives. In addition, our organic growth and incremental margin momentum is providing a path to achieve our interim annual EBITDA margin target of 11% potentially sooner than expected. Combined with our expanding solutions in emerging areas of the industrial economy and balance sheet flexibility, we remain poised to create significant value for our customers, associates, and all stakeholders within any operational environment.”
Fiscal 2022 Guidance The Company is raising guidance for fiscal 2022 and now projects EPS of $6.15 to $6.25 (prior $5.70 to $5.90), sales growth of 14.8% to 15.3% including 13.6% to 14.1% on an organic basis (prior 11.5% to 12.5% including 10.5% to 11.5% organic), and EBITDA margins of 10.5% to 10.6% (prior 10.1% to 10.3%). Guidance does not assume contribution from potential future acquisitions.
Share Repurchases During the quarter, the Company purchased 35,000 shares of its common stock in open market transactions for $3.5 million. At March 31, 2022, the Company had remaining authorization to purchase approximately 318,000 additional shares.
Dividend Today the Company announced that its Board of Directors declared a quarterly cash dividend of $0.34 per common share, payable on May 31, 2022, to shareholders of record on May 16, 2022.
Conference Call Information Applied will host its quarterly conference call for investors and analysts at 10 a.m. ET on April 28, 2022. Neil A. Schrimsher – President & CEO, and David K. Wells – CFO will discuss the Company's performance. A supplemental investor presentation detailing latest quarter results and the Company’s outlook is available for reference on the investor relations portion of the Company’s website at www.applied.com. To join the call, dial 877-311-4351 (toll free) or 614-999-9139 (for International callers) using conference ID 2092603. A live audio webcast can be accessed online through the investor relations portion of the Company's website at www.applied.com. A replay of the call will be available for two weeks by dialing 855-859-2056 or 800-585-8367 (both toll free), or 404-537-3406 (International) using conference ID 2092603.
About Applied® Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO and OEM end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.
This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “expect,” “will,” “guidance,” “assume”, “projects”, and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends in the industrial sector of the economy (such as the inflationary environment and supply chain strains), the effects of the health crisis associated with the COVID-19 pandemic on our business operations, results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission, many of which risks are amplified by circumstances arising out of the COVID-19 pandemic. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED STATEMENTS OF CONSOLIDATED INCOME | |||||||||||||||
(Unaudited) | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, |
March 31, |
||||||||||||||
2022 |
2021 |
|
2022 |
2021 |
|||||||||||
Net Sales | $ |
980,662 |
|
$ |
840,937 |
|
$ |
2,749,217 |
|
$ |
2,340,031 |
|
|||
Cost of sales |
|
693,338 |
|
|
593,712 |
|
|
1,948,928 |
|
|
1,667,491 |
|
|||
Gross Profit |
|
287,324 |
|
|
247,225 |
|
|
800,289 |
|
|
672,540 |
|
|||
Selling, distribution and administrative expense, | |||||||||||||||
including depreciation |
|
191,481 |
|
|
172,758 |
|
|
551,655 |
|
|
498,659 |
|
|||
Impairment expense |
|
- |
|
|
- |
|
|
- |
|
|
49,528 |
|
|||
Operating Income |
|
95,843 |
|
|
74,467 |
|
|
248,634 |
|
|
124,353 |
|
|||
Interest expense, net |
|
5,852 |
|
|
7,608 |
|
|
20,249 |
|
|
22,919 |
|
|||
Other expense (income), net |
|
469 |
|
|
(1,657 |
) |
|
(712 |
) |
|
(1,746 |
) |
|||
Income Before Income Taxes |
|
89,522 |
|
|
68,516 |
|
|
229,097 |
|
|
103,180 |
|
|||
Income Tax Expense |
|
21,216 |
|
|
12,453 |
|
|
50,796 |
|
|
17,667 |
|
|||
Net Income | $ |
68,306 |
|
$ |
56,063 |
|
$ |
178,301 |
|
$ |
85,513 |
|
|||
Net Income Per Share - Basic | $ |
1.78 |
|
$ |
1.44 |
|
$ |
4.63 |
|
$ |
2.21 |
|
|||
Net Income Per Share - Diluted | $ |
1.75 |
|
$ |
1.42 |
|
$ |
4.56 |
|
$ |
2.18 |
|
|||
Average Shares Outstanding - Basic |
|
38,453 |
|
|
38,835 |
|
|
38,470 |
|
|
38,779 |
|
|||
Average Shares Outstanding - Diluted |
|
39,098 |
|
39,412 |
|
|
39,102 |
|
|
39,261 |
|
||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||
1) Applied uses the last-in, first-out (LIFO) method of valuing U.S. inventory. An actual valuation of inventory under the LIFO method can only be made at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. |
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(In thousands) | |||||||
March 31, | June 30, | ||||||
2022 | 2021 | ||||||
Assets | |||||||
Cash and cash equivalents | $ |
188,084 |
|
$ |
257,745 |
|
|
Accounts receivable, net |
|
618,079 |
|
|
516,322 |
|
|
Inventories |
|
425,373 |
|
|
362,547 |
|
|
Other current assets |
|
63,504 |
|
|
59,961 |
|
|
Total current assets |
|
1,295,040 |
|
|
1,196,575 |
|
|
Property, net |
|
111,166 |
|
|
115,589 |
|
|
Operating lease assets, net |
|
95,049 |
|
|
87,111 |
|
|
Intangibles, net |
|
258,501 |
|
|
279,628 |
|
|
Goodwill |
|
563,751 |
|
|
560,077 |
|
|
Other assets |
|
60,064 |
|
|
32,827 |
|
|
Total Assets | $ |
2,383,571 |
|
$ |
2,271,807 |
|
|
Liabilities | |||||||
Accounts payable | $ |
247,639 |
|
$ |
208,162 |
|
|
Current portion of long-term debt |
|
40,166 |
|
|
43,525 |
|
|
Other accrued liabilities |
|
176,551 |
|
|
176,013 |
|
|
Total current liabilities |
|
464,356 |
|
|
427,700 |
|
|
Long-term debt |
|
681,197 |
|
|
784,855 |
|
|
Other liabilities |
|
139,624 |
|
|
126,706 |
|
|
Total Liabilities |
|
1,285,177 |
|
|
1,339,261 |
|
|
Shareholders' Equity |
|
1,098,394 |
|
|
932,546 |
|
|
Total Liabilities and Shareholders' Equity | $ |
2,383,571 |
$ |
2,271,807 |
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
|||||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
Nine Months Ended |
|||||||
March 31, |
|||||||
2022 |
2021 |
||||||
Cash Flows from Operating Activities | |||||||
Net income | $ |
178,301 |
|
$ |
85,513 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of property |
|
16,215 |
|
|
15,641 |
|
|
Amortization of intangibles |
|
24,096 |
|
|
26,238 |
|
|
Impairment expense |
|
- |
|
|
49,528 |
|
|
Amortization of stock appreciation rights and options |
|
2,897 |
|
|
1,930 |
|
|
Other share-based compensation expense |
|
6,064 |
|
|
4,660 |
|
|
Changes in operating assets and liabilities, net of acquisitions |
|
(106,136 |
) |
|
33,574 |
|
|
Other, net |
|
12,386 |
|
|
(13,675 |
) |
|
Net Cash provided by Operating Activities |
|
133,823 |
|
|
203,409 |
|
|
Cash Flows from Investing Activities | |||||||
Acquisition of businesses, net of cash acquired |
|
(6,974 |
) |
|
(30,023 |
) |
|
Capital expenditures |
|
(11,674 |
) |
|
(12,177 |
) |
|
Proceeds from property sales |
|
494 |
|
|
691 |
|
|
Life insurance proceeds |
|
3,159 |
|
|
- |
|
|
Cash payments for loans on company-owned life insurance |
|
(14,835 |
) |
|
- |
|
|
Net Cash used in Investing Activities |
|
(29,830 |
) |
|
(41,509 |
) |
|
Cash Flows from Financing Activities | |||||||
Net borrowings under revolving credit facility |
|
442,592 |
|
|
- |
|
|
Long-term debt repayments |
|
(550,432 |
) |
|
(82,070 |
) |
|
Interest rate swap settlement payments |
|
(4,812 |
) |
|
(2,122 |
) |
|
Payment of debt issuance costs |
|
(1,956 |
) |
|
(399 |
) |
|
Purchases of treasury shares |
|
(13,604 |
) |
|
- |
|
|
Dividends paid |
|
(38,612 |
) |
|
(37,772 |
) |
|
Acquisition holdback payments |
|
(2,361 |
) |
|
(2,344 |
) |
|
Taxes paid for shares withheld for equity awards |
|
(4,405 |
) |
|
(5,990 |
) |
|
Exercise of stock options and appreciation rights |
|
224 |
|
|
163 |
|
|
Net Cash used in Financing Activities |
|
(173,366 |
) |
|
(130,534 |
) |
|
Effect of Exchange Rate Changes on Cash |
|
(288 |
) |
|
4,099 |
|
|
(Decrease) Increase in cash and cash equivalents |
|
(69,661 |
) |
|
35,465 |
|
|
Cash and Cash Equivalents at Beginning of Period |
|
257,745 |
|
|
268,551 |
|
|
Cash and Cash Equivalents at End of Period | $ |
188,084 |
|
$ |
304,016 |
|
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
||||||||||||||||||
SUPPLEMENTAL INFORMATION |
||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
|
||||||||||||||||||
The Company supplemented the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. These non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. | ||||||||||||||||||
|
||||||||||||||||||
Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and Adjusted Net income per share, non-GAAP financial measures: | ||||||||||||||||||
|
||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||
Pre-tax | Tax Effect | Net of Tax | Per Share Diluted Impact |
Tax Rate | ||||||||||||||
Net income and net income per share | $ |
68,516 |
|
$ |
12,453 |
|
$ |
56,063 |
|
$ |
1.42 |
|
18.2 |
% |
||||
Non-routine income |
|
(2,609 |
) |
|
(613 |
) |
|
(1,996 |
) |
|
0.05 |
|
23.5 |
% |
||||
Adjusted net income and net income per share | $ |
65,907 |
|
$ |
11,840 |
|
$ |
54,067 |
|
$ |
1.37 |
|
18.0 |
% |
||||
Nine Months Ended March 31, 2021 | ||||||||||||||||||
Pre-tax | Tax Effect | Net of Tax | Per Share Diluted Impact |
Tax Rate | ||||||||||||||
Net income and net income per share | $ |
103,180 |
|
$ |
17,667 |
|
$ |
85,513 |
|
$ |
2.18 |
|
17.1 |
% |
||||
Intangible and other impairment |
|
49,528 |
|
|
11,769 |
|
|
37,759 |
|
|
0.96 |
|
23.8 |
% |
||||
Non-routine costs |
|
7,772 |
|
|
1,847 |
|
|
5,925 |
|
|
0.15 |
|
23.8 |
% |
||||
Non-routine income |
|
(2,609 |
) |
|
(613 |
) |
|
(1,996 |
) |
|
(0.05 |
) |
23.5 |
% |
||||
Adjusted net income and net income per share | $ |
157,871 |
|
$ |
30,670 |
|
$ |
127,201 |
|
$ |
3.24 |
|
19.4 |
% |
||||
Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure: | ||||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
March 31, |
March 31, |
|||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|
||||||||||||||
Net Income | $ |
68,306 |
|
$ |
56,063 |
|
$ |
178,301 |
|
$ |
85,513 |
|
||||||
Interest expense, net |
|
5,852 |
|
|
7,608 |
|
|
20,249 |
|
|
22,919 |
|
||||||
Income tax expense |
|
21,216 |
|
|
12,453 |
|
|
50,796 |
|
|
17,667 |
|
||||||
Depreciation and amortization of property |
|
5,352 |
|
|
5,080 |
|
|
16,215 |
|
|
15,641 |
|
||||||
Amortization of intangibles |
|
7,891 |
|
|
8,236 |
|
|
24,096 |
|
|
26,238 |
|
||||||
EBITDA | $ |
108,617 |
|
$ |
89,440 |
|
$ |
289,657 |
|
$ |
167,978 |
|
||||||
Intangible and other impairment |
|
- |
|
|
- |
|
|
- |
|
|
49,528 |
|
||||||
Non-routine costs |
|
- |
|
|
- |
|
|
- |
|
|
7,772 |
|
||||||
Non-routine income |
|
- |
|
|
(2,609 |
) |
|
- |
|
|
(2,609 |
) |
||||||
Adjusted EBITDA | $ |
108,617 |
|
$ |
86,831 |
|
$ |
289,657 |
|
$ |
222,669 |
|
||||||
The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. Adjusted EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. | ||||||||||||||||||
Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
March 31, |
March 31, |
|||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|
||||||||||||||
Net Cash provided by Operating Activities | $ |
52,559 |
|
$ |
44,053 |
|
$ |
133,823 |
|
$ |
203,409 |
|
||||||
Capital expenditures |
|
(4,164 |
) |
|
(3,728 |
) |
|
(11,674 |
) |
|
(12,177 |
) |
||||||
Free Cash Flow | $ |
48,395 |
|
$ |
40,325 |
|
$ |
122,149 |
|
$ |
191,232 |
|
||||||
Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. |
Чистый объем продаж составил 980,7 Млн долларов, Увеличившись на 16,6% в годовом исчислении; На 14,7% на ежедневной органической основе
Чистая прибыль составила 68,3 млн долларов, или 1,75 доллара на акцию; Показатель EBITDA составил 108,6 млн долларов
Повышение прогнозов по продажам, рентабельности по EBITDA и EPS на 2022 финансовый год
КЛИВЛЕНД --(BUSINESS WIRE)--Applied Industrial Technologies (NYSE: AIT), ведущий дистрибьютор с добавленной стоимостью и поставщик технических решений в области промышленного движения, гидравлической энергии, управления потоками, технологий автоматизации и сопутствующих материалов для технического обслуживания, сегодня отчитался о результатах за третий квартал 2022 финансового года, закончившийся 31 марта 2022 года.
Чистые продажи за квартал выросли на 16,6% до 980,7 млн долларов с 840,9 млн долларов годом ранее. Изменение включает в себя увеличение на 0,4% от приобретений и выгоду на 1,6% от одного дополнительного дня продажи, частично компенсируемую отрицательным влиянием на 0,1% от пересчета иностранной валюты. Без учета этих факторов продажи увеличились на 14,7% на ежедневной органической основе, что отражает увеличение на 13,6% в сегменте Сервисных центров и на 17,1% в сегменте гидравлического питания и регулирования расхода. Компания сообщила о чистой прибыли в размере 68,3 млн долларов, или 1,75 доллара на акцию, и EBITDA в размере 108,6 млн долларов. На доналоговой основе результаты включают расходы LIFO в размере 7,4 млн долларов США (0,14 доллара США после уплаты налогов на акцию) по сравнению с расходами LIFO в размере 0,8 млн долларов США (0,02 доллара США после уплаты налогов на акцию) за предыдущий год.
Нил А. Шримшер, президент и главный исполнительный директор Applied, прокомментировал: “У нас был еще один сильный квартал, когда продажи и прибыль достигли новых рекордов. Базовая динамика бизнеса еще больше укрепилась в течение квартала, в то время как наши позиции в технической отрасли поддерживают большие возможности роста и нашу способность эффективно справляться с продолжающимся инфляционным давлением во всей отрасли. В сочетании с солидным левереджем затрат показатель EBITDA вырос более чем на 25% по сравнению с предыдущим годом и почти на 40% за 2 года, в то время как рентабельность по EBITDA превысила 11%, что является ключевой вехой для Компании. Кроме того, генерирование свободных денежных средств увеличивалось из года в год и последовательно включало текущие инвестиции в оборотный капитал. Эти показатели способствуют значительному повышению нашей доходности на капитал и демонстрируют все более выгодное и дифференцированное положение Applied, поскольку требования и долгосрочные инвестиции по всей цепочке промышленных поставок продолжают расти”.
Г-н Шримшер добавил: “Основываясь на наших результатах за третий квартал и наших текущих прогнозах, мы во второй раз в этом году повышаем прогноз по продажам, рентабельности по EBITDA и EPS на 2022 финансовый год. Позитивные тенденции спроса сохраняются во всем нашем бизнесе: продажи органических продуктов с начала месяца в апреле выросли на низкий двузначный процент в годовом исчислении. Несмотря на то, что мы продолжаем ориентироваться в чрезвычайно динамичной цепочке поставок и инфляционной среде, мы ожидаем постоянных выгод от нашего операционного исполнения, управления запасами и внутренних маржинальных инициатив. Кроме того, наш органический рост и прирост маржи обеспечивают путь к достижению нашего промежуточного годового целевого показателя рентабельности по EBITDA в 11% потенциально раньше, чем ожидалось. В сочетании с нашими расширяющимися решениями в новых областях промышленной экономики и гибкостью баланса мы по-прежнему готовы создавать значительную ценность для наших клиентов, партнеров и всех заинтересованных сторон в любой операционной среде”.
Руководство на 2022 финансовый год Компания повышает прогноз на 2022 финансовый год и теперь прогнозирует прибыль на акцию в размере от 6,15 до 6,25 долларов США (ранее от 5,70 до 5,90 долларов США), рост продаж от 14,8% до 15,3%, в том числе от 13,6% до 14,1% на органической основе (ранее от 11,5% до 12,5%, в том числе от 10,5% до 11,5% на органической основе), а рентабельность по EBITDA составила от 10,5% до 10,6% (ранее от 10,1% до 10,3%). Руководство не предполагает вклада от потенциальных будущих приобретений.
Выкуп Акций В течение квартала Компания приобрела 35 000 своих обыкновенных акций в рамках сделок на открытом рынке за 3,5 миллиона долларов. По состоянию на 31 марта 2022 года у Компании оставалось разрешение на покупку примерно 318 000 дополнительных акций.
Дивиденд Сегодня Компания объявила, что ее Совет директоров объявил ежеквартальные денежные дивиденды в размере 0,34 доллара США на одну обыкновенную акцию, подлежащие выплате 31 мая 2022 года акционерам record 16 мая 2022 года.
Информация о конференц-звонке Applied проведет свою ежеквартальную телефонную конференцию для инвесторов и аналитиков в 10 часов утра по восточному времени 28 апреля 2022 года. Нил А. Шримшер – президент и генеральный директор, и Дэвид К. Уэллс – финансовый директор обсудит результаты деятельности Компании. Дополнительная презентация для инвесторов с подробным описанием результатов последнего квартала и перспектив Компании доступна для ознакомления в разделе по связям с инвесторами веб-сайта Компании по адресу www.applied.com . Чтобы присоединиться к звонку, наберите 877-311-4351 (бесплатный звонок) или 614-999-9139 (для международных абонентов), используя идентификатор конференции 2092603. Доступ к прямой аудиотрансляции можно получить онлайн через раздел по связям с инвесторами веб-сайта Компании по адресу www.applied.com . Повторный вызов будет доступен в течение двух недель, набрав 855-859-2056 или 800-585-8367 (оба звонка бесплатные) или 404-537-3406 (международный), используя идентификатор конференции 2092603.
О Applied® Applied Industrial Technologies является ведущим дистрибьютором с добавленной стоимостью и поставщиком технических решений в области промышленного движения, гидравлической энергии, управления потоком, технологий автоматизации и сопутствующих материалов для технического обслуживания. Наши ведущие бренды, специализированные услуги и всесторонние знания служат конечным пользователям MRO и OEM практически на всех промышленных рынках благодаря нашим многоканальным возможностям, которые обеспечивают выбор, удобство и компетентность. Для получения дополнительной информации посетите www.applied.com .
Настоящий пресс-релиз содержит заявления, которые носят прогнозный характер, поскольку этот термин определен Комиссией по ценным бумагам и биржам в ее правилах, положениях и релизах. Applied намеревается, чтобы такие прогнозные заявления подпадали под действие созданных таким образом безопасных гаваней. Прогнозные заявления часто идентифицируются такими определителями, как “ожидать”, “будет”, “руководство”, “предполагать”, “проекты” и производные или аналогичные выражения. Все прогнозные заявления основаны на текущих ожиданиях в отношении важных факторов риска, включая тенденции в промышленном секторе экономики (такие как инфляционная среда и напряженность в цепочках поставок), последствия кризиса в области здравоохранения, связанного с пандемией COVID-19, для наших деловых операций, результатов операций и финансового состояния, а также другие факторы риска, выявленные в последнем периодическом отчете Applied и других документах, поданных в Комиссию по ценным бумагам и биржам, многие из которых усиливаются обстоятельствами, связанными с пандемией COVID-19. Соответственно, фактические результаты могут существенно отличаться от результатов, изложенных в прогнозных заявлениях, и такие заявления не следует рассматривать как заявление Applied или любого другого лица о том, что результаты, изложенные в них, будут достигнуты. Applied не берет на себя никаких обязательств по публичному обновлению или пересмотру каких-либо прогнозных заявлений, будь то в связи с новой информацией, событиями или иным образом.
Applied Industrial Technologies, INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED STATEMENTS OF CONSOLIDATED INCOME | |||||||||||||||
(Unaudited) | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, |
March 31, |
||||||||||||||
2022 |
2021 |
|
2022 |
2021 |
|||||||||||
Net Sales | $ |
980,662 |
|
$ |
840,937 |
|
$ |
2,749,217 |
|
$ |
2,340,031 |
|
|||
Cost of sales |
|
693,338 |
|
|
593,712 |
|
|
1,948,928 |
|
|
1,667,491 |
|
|||
Gross Profit |
|
287,324 |
|
|
247,225 |
|
|
800,289 |
|
|
672,540 |
|
|||
Selling, distribution and administrative expense, | |||||||||||||||
including depreciation |
|
191,481 |
|
|
172,758 |
|
|
551,655 |
|
|
498,659 |
|
|||
Impairment expense |
|
- |
|
|
- |
|
|
- |
|
|
49,528 |
|
|||
Operating Income |
|
95,843 |
|
|
74,467 |
|
|
248,634 |
|
|
124,353 |
|
|||
Interest expense, net |
|
5,852 |
|
|
7,608 |
|
|
20,249 |
|
|
22,919 |
|
|||
Other expense (income), net |
|
469 |
|
|
(1,657 |
) |
|
(712 |
) |
|
(1,746 |
) |
|||
Income Before Income Taxes |
|
89,522 |
|
|
68,516 |
|
|
229,097 |
|
|
103,180 |
|
|||
Income Tax Expense |
|
21,216 |
|
|
12,453 |
|
|
50,796 |
|
|
17,667 |
|
|||
Net Income | $ |
68,306 |
|
$ |
56,063 |
|
$ |
178,301 |
|
$ |
85,513 |
|
|||
Net Income Per Share - Basic | $ |
1.78 |
|
$ |
1.44 |
|
$ |
4.63 |
|
$ |
2.21 |
|
|||
Net Income Per Share - Diluted | $ |
1.75 |
|
$ |
1.42 |
|
$ |
4.56 |
|
$ |
2.18 |
|
|||
Average Shares Outstanding - Basic |
|
38,453 |
|
|
38,835 |
|
|
38,470 |
|
|
38,779 |
|
|||
Average Shares Outstanding - Diluted |
|
39,098 |
|
39,412 |
|
|
39,102 |
|
|
39,261 |
|
||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||
1) Applied uses the last-in, first-out (LIFO) method of valuing U.S. inventory. An actual valuation of inventory under the LIFO method can only be made at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. |
Applied Industrial Technologies, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(In thousands) | |||||||
March 31, | June 30, | ||||||
2022 | 2021 | ||||||
Assets | |||||||
Cash and cash equivalents | $ |
188,084 |
|
$ |
257,745 |
|
|
Accounts receivable, net |
|
618,079 |
|
|
516,322 |
|
|
Inventories |
|
425,373 |
|
|
362,547 |
|
|
Other current assets |
|
63,504 |
|
|
59,961 |
|
|
Total current assets |
|
1,295,040 |
|
|
1,196,575 |
|
|
Property, net |
|
111,166 |
|
|
115,589 |
|
|
Operating lease assets, net |
|
95,049 |
|
|
87,111 |
|
|
Intangibles, net |
|
258,501 |
|
|
279,628 |
|
|
Goodwill |
|
563,751 |
|
|
560,077 |
|
|
Other assets |
|
60,064 |
|
|
32,827 |
|
|
Total Assets | $ |
2,383,571 |
|
$ |
2,271,807 |
|
|
Liabilities | |||||||
Accounts payable | $ |
247,639 |
|
$ |
208,162 |
|
|
Current portion of long-term debt |
|
40,166 |
|
|
43,525 |
|
|
Other accrued liabilities |
|
176,551 |
|
|
176,013 |
|
|
Total current liabilities |
|
464,356 |
|
|
427,700 |
|
|
Long-term debt |
|
681,197 |
|
|
784,855 |
|
|
Other liabilities |
|
139,624 |
|
|
126,706 |
|
|
Total Liabilities |
|
1,285,177 |
|
|
1,339,261 |
|
|
Shareholders' Equity |
|
1,098,394 |
|
|
932,546 |
|
|
Total Liabilities and Shareholders' Equity | $ |
2,383,571 |
$ |
2,271,807 |
Applied Industrial Technologies, INC. AND SUBSIDIARIES |
|||||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
Nine Months Ended |
|||||||
March 31, |
|||||||
2022 |
2021 |
||||||
Cash Flows from Operating Activities | |||||||
Net income | $ |
178,301 |
|
$ |
85,513 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of property |
|
16,215 |
|
|
15,641 |
|
|
Amortization of intangibles |
|
24,096 |
|
|
26,238 |
|
|
Impairment expense |
|
- |
|
|
49,528 |
|
|
Amortization of stock appreciation rights and options |
|
2,897 |
|
|
1,930 |
|
|
Other share-based compensation expense |
|
6,064 |
|
|
4,660 |
|
|
Changes in operating assets and liabilities, net of acquisitions |
|
(106,136 |
) |
|
33,574 |
|
|
Other, net |
|
12,386 |
|
|
(13,675 |
) |
|
Net Cash provided by Operating Activities |
|
133,823 |
|
|
203,409 |
|
|
Cash Flows from Investing Activities | |||||||
Acquisition of businesses, net of cash acquired |
|
(6,974 |
) |
|
(30,023 |
) |
|
Capital expenditures |
|
(11,674 |
) |
|
(12,177 |
) |
|
Proceeds from property sales |
|
494 |
|
|
691 |
|
|
Life insurance proceeds |
|
3,159 |
|
|
- |
|
|
Cash payments for loans on company-owned life insurance |
|
(14,835 |
) |
|
- |
|
|
Net Cash used in Investing Activities |
|
(29,830 |
) |
|
(41,509 |
) |
|
Cash Flows from Financing Activities | |||||||
Net borrowings under revolving credit facility |
|
442,592 |
|
|
- |
|
|
Long-term debt repayments |
|
(550,432 |
) |
|
(82,070 |
) |
|
Interest rate swap settlement payments |
|
(4,812 |
) |
|
(2,122 |
) |
|
Payment of debt issuance costs |
|
(1,956 |
) |
|
(399 |
) |
|
Purchases of treasury shares |
|
(13,604 |
) |
|
- |
|
|
Dividends paid |
|
(38,612 |
) |
|
(37,772 |
) |
|
Acquisition holdback payments |
|
(2,361 |
) |
|
(2,344 |
) |
|
Taxes paid for shares withheld for equity awards |
|
(4,405 |
) |
|
(5,990 |
) |
|
Exercise of stock options and appreciation rights |
|
224 |
|
|
163 |
|
|
Net Cash used in Financing Activities |
|
(173,366 |
) |
|
(130,534 |
) |
|
Effect of Exchange Rate Changes on Cash |
|
(288 |
) |
|
4,099 |
|
|
(Decrease) Increase in cash and cash equivalents |
|
(69,661 |
) |
|
35,465 |
|
|
Cash and Cash Equivalents at Beginning of Period |
|
257,745 |
|
|
268,551 |
|
|
Cash and Cash Equivalents at End of Period | $ |
188,084 |
|
$ |
304,016 |
|
Applied Industrial Technologies, INC. AND SUBSIDIARIES |
||||||||||||||||||
SUPPLEMENTAL INFORMATION |
||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
|
||||||||||||||||||
The Company supplemented the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. These non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. | ||||||||||||||||||
|
||||||||||||||||||
Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and Adjusted Net income per share, non-GAAP financial measures: | ||||||||||||||||||
|
||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||
Pre-tax | Tax Effect | Net of Tax | Per Share Diluted Impact |
Tax Rate | ||||||||||||||
Net income and net income per share | $ |
68,516 |
|
$ |
12,453 |
|
$ |
56,063 |
|
$ |
1.42 |
|
18.2 |
% |
||||
Non-routine income |
|
(2,609 |
) |
|
(613 |
) |
|
(1,996 |
) |
|
0.05 |
|
23.5 |
% |
||||
Adjusted net income and net income per share | $ |
65,907 |
|
$ |
11,840 |
|
$ |
54,067 |
|
$ |
1.37 |
|
18.0 |
% |
||||
Nine Months Ended March 31, 2021 | ||||||||||||||||||
Pre-tax | Tax Effect | Net of Tax | Per Share Diluted Impact |
Tax Rate | ||||||||||||||
Net income and net income per share | $ |
103,180 |
|
$ |
17,667 |
|
$ |
85,513 |
|
$ |
2.18 |
|
17.1 |
% |
||||
Intangible and other impairment |
|
49,528 |
|
|
11,769 |
|
|
37,759 |
|
|
0.96 |
|
23.8 |
% |
||||
Non-routine costs |
|
7,772 |
|
|
1,847 |
|
|
5,925 |
|
|
0.15 |
|
23.8 |
% |
||||
Non-routine income |
|
(2,609 |
) |
|
(613 |
) |
|
(1,996 |
) |
|
(0.05 |
) |
23.5 |
% |
||||
Adjusted net income and net income per share | $ |
157,871 |
|
$ |
30,670 |
|
$ |
127,201 |
|
$ |
3.24 |
|
19.4 |
% |
||||
Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure: | ||||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
March 31, |
March 31, |
|||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|
||||||||||||||
Net Income | $ |
68,306 |
|
$ |
56,063 |
|
$ |
178,301 |
|
$ |
85,513 |
|
||||||
Interest expense, net |
|
5,852 |
|
|
7,608 |
|
|
20,249 |
|
|
22,919 |
|
||||||
Income tax expense |
|
21,216 |
|
|
12,453 |
|
|
50,796 |
|
|
17,667 |
|
||||||
Depreciation and amortization of property |
|
5,352 |
|
|
5,080 |
|
|
16,215 |
|
|
15,641 |
|
||||||
Amortization of intangibles |
|
7,891 |
|
|
8,236 |
|
|
24,096 |
|
|
26,238 |
|
||||||
EBITDA | $ |
108,617 |
|
$ |
89,440 |
|
$ |
289,657 |
|
$ |
167,978 |
|
||||||
Intangible and other impairment |
|
- |
|
|
- |
|
|
- |
|
|
49,528 |
|
||||||
Non-routine costs |
|
- |
|
|
- |
|
|
- |
|
|
7,772 |
|
||||||
Non-routine income |
|
- |
|
|
(2,609 |
) |
|
- |
|
|
(2,609 |
) |
||||||
Adjusted EBITDA | $ |
108,617 |
|
$ |
86,831 |
|
$ |
289,657 |
|
$ |
222,669 |
|
||||||
The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. Adjusted EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. | ||||||||||||||||||
Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
March 31, |
March 31, |
|||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|
||||||||||||||
Net Cash provided by Operating Activities | $ |
52,559 |
|
$ |
44,053 |
|
$ |
133,823 |
|
$ |
203,409 |
|
||||||
Capital expenditures |
|
(4,164 |
) |
|
(3,728 |
) |
|
(11,674 |
) |
|
(12,177 |
) |
||||||
Free Cash Flow | $ |
48,395 |
|
$ |
40,325 |
|
$ |
122,149 |
|
$ |
191,232 |
|
||||||
Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. |