Applied Industrial Technologies Reports Fiscal 2023 First Quarter Results
-
Net Sales of Up$1.1 Billion 19.1% YoY; Up19.4% on an Organic Basis -
Net Income of
; EPS of$76.9 Million Up$1.97 45.0% YoY -
EBITDA of
Up$118.7 Million 34.2% YoY - Raising Fiscal 2023 Guidance Following First Quarter Performance
Net sales for the quarter increased
During the quarter, the Company renamed its
Updated Fiscal 2023 Guidance
For fiscal 2023, the Company now projects EPS of
Dividend
Today the Company also announced that its Board of Directors declared a quarterly cash dividend of
Conference Call Information
Applied will host its quarterly conference call for investors and analysts at
About Applied®
This press release contains statements that are forward-looking, as that term is defined by the
CONDENSED STATEMENTS OF CONSOLIDATED INCOME | |||||||
(Unaudited) | |||||||
(In thousands, except per share data) | |||||||
Three Months Ended |
|||||||
2022 |
2021 |
||||||
$ |
1,062,405 |
$ |
891,681 |
|
|||
Cost of sales |
|
755,622 |
|
636,341 |
|
||
Gross Profit |
|
306,783 |
|
255,340 |
|
||
Selling, distribution and administrative expense, | |||||||
including depreciation |
|
200,251 |
|
180,726 |
|
||
Operating Income |
|
106,532 |
|
74,614 |
|
||
Interest expense, net |
|
6,480 |
|
7,390 |
|
||
Other income, net |
|
1,008 |
|
(312 |
) |
||
Income Before Income Taxes |
|
99,044 |
|
67,536 |
|
||
Income tax expense |
|
22,164 |
|
14,567 |
|
||
Net Income | $ |
76,880 |
$ |
52,969 |
|
||
Net Income Per Share - Basic | $ |
2.00 |
$ |
1.38 |
|
||
Net Income Per Share - Diluted | $ |
1.97 |
$ |
1.36 |
|
||
Average Shares Outstanding - Basic |
|
38,526 |
|
38,502 |
|
||
Average Shares Outstanding - Diluted |
|
39,111 |
|
39,084 |
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||
1) Applied uses the last-in, first-out (LIFO) method of valuing |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
(In thousands) | ||||||
September 30, 2022 |
2022 |
|||||
Assets | ||||||
Cash and cash equivalents | $ |
147,575 |
$ |
184,474 |
||
Accounts receivable, net |
|
674,136 |
|
656,429 |
||
Inventories |
|
490,099 |
|
449,821 |
||
Other current assets |
|
78,686 |
|
68,805 |
||
Total current assets |
|
1,390,496 |
|
1,359,529 |
||
Property, net |
|
110,539 |
|
111,896 |
||
Operating lease assets, net |
|
103,037 |
|
108,052 |
||
Intangibles, net |
|
242,741 |
|
250,590 |
||
|
561,477 |
|
563,205 |
|||
Other assets |
|
65,884 |
|
59,316 |
||
Total Assets | $ |
2,474,174 |
$ |
2,452,588 |
||
Liabilities | ||||||
Accounts payable | $ |
277,224 |
$ |
259,463 |
||
Current portion of long-term debt |
|
181 |
|
40,174 |
||
Other accrued liabilities |
|
173,858 |
|
199,990 |
||
Total current liabilities |
|
451,263 |
|
499,627 |
||
Long-term debt |
|
649,103 |
|
649,150 |
||
Other liabilities |
|
152,368 |
|
154,456 |
||
Total Liabilities |
|
1,252,734 |
|
1,303,233 |
||
Shareholders' Equity |
|
1,221,440 |
|
1,149,355 |
||
Total Liabilities and Shareholders' Equity | $ |
2,474,174 |
$ |
2,452,588 |
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Three Months Ended |
||||||||
2022 |
2021 |
|||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ |
76,880 |
|
$ |
52,969 |
|
||
Adjustments to reconcile net income to net cash provided | ||||||||
by operating activities: | ||||||||
Depreciation and amortization of property |
|
5,481 |
|
|
5,427 |
|
||
Amortization of intangibles |
|
7,705 |
|
|
8,121 |
|
||
Provision for losses on accounts receivable |
|
3,994 |
|
|
798 |
|
||
Amortization of stock appreciation rights and options |
|
1,424 |
|
|
1,907 |
|
||
Other share-based compensation expense |
|
1,939 |
|
|
1,563 |
|
||
Changes in assets and liabilities, net of acquisitions |
|
(72,071 |
) |
|
(20,404 |
) |
||
Other, net |
|
591 |
|
|
(1,739 |
) |
||
|
25,943 |
|
|
48,642 |
|
|||
Cash Flows from Investing Activities | ||||||||
Acquisition of businesses, net of cash acquired |
|
- |
|
|
(7,094 |
) |
||
Capital expenditures |
|
(5,554 |
) |
|
(3,621 |
) |
||
Proceeds from property sales |
|
56 |
|
|
48 |
|
||
Cash payments for loans on company-owned life insurance |
|
- |
|
|
(14,835 |
) |
||
|
(5,498 |
) |
|
(25,502 |
) |
|||
Cash Flows from Financing Activities | ||||||||
Long-term debt repayments |
|
(40,061 |
) |
|
(9,811 |
) |
||
Interest rate swap settlement receipts (payments) |
|
294 |
|
|
(1,644 |
) |
||
Purchases of treasury shares |
|
(716 |
) |
|
(6,537 |
) |
||
Dividends paid |
|
(13,100 |
) |
|
(12,712 |
) |
||
Exercise of stock appreciation rights and options |
|
126 |
|
|
- |
|
||
Acquisition holdback payments |
|
(660 |
) |
|
(135 |
) |
||
Taxes paid for shares withheld for equity awards |
|
(1,401 |
) |
|
(1,141 |
) |
||
|
(55,518 |
) |
|
(31,980 |
) |
|||
Effect of Exchange Rate Changes on Cash |
|
(1,826 |
) |
|
(1,592 |
) |
||
Decrease in cash and cash equivalents |
|
(36,899 |
) |
|
(10,432 |
) |
||
Cash and Cash Equivalents at Beginning of Period |
|
184,474 |
|
|
257,745 |
|
||
Cash and Cash Equivalents at End of Period | $ |
147,575 |
|
$ |
247,313 |
|
|
||||||
SUPPLEMENTAL INFORMATION
|
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
|
||||||
The Company supplemented the reporting of financial information determined under |
Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure: | ||||||||
Three Months Ended |
||||||||
2022 |
2021 |
|||||||
Net Income | $ |
76,880 |
|
$ |
52,969 |
|
||
Interest expense, net |
|
6,480 |
|
|
7,390 |
|
||
Income tax expense |
|
22,164 |
|
|
14,567 |
|
||
Depreciation and amortization of property |
|
5,481 |
|
|
5,427 |
|
||
Amortization of intangibles |
|
7,705 |
|
|
8,121 |
|
||
EBITDA | $ |
118,710 |
|
$ |
88,474 |
|
||
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 |
||||||||
Three Months Ended |
||||||||
2022 |
2021 |
|||||||
$ |
25,943 |
|
$ |
48,642 |
|
|||
Capital expenditures |
|
(5,554 |
) |
|
(3,621 |
) |
||
Free Cash Flow | $ |
20,389 |
|
$ |
45,021 |
|
||
Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. |
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Director – Investor Relations &
216-426-4887 / rcieslak@applied.com
Source: