Applied Industrial Technologies Reports Fiscal 2025 First Quarter Results
-
Net Sales of$1.1 Billion Up 0.3% YoY; Down 3.0% on an Organic Daily Basis -
Net Income of
$92.1 Million , or$2.36 Per Share Down 1.0% YoY -
EBITDA of
$129.0 Million Down 3.3% YoY -
Operating Cash Flow of
$127.7 Million ; Free Cash Flow of$122.2 Million -
Increasing FY25 EPS Guidance to
$9.25 to$10.00 - Reiterate FY25 Sales and EBITDA Margin Guidance
Net sales for the quarter of
Fiscal 2025 Guidance
Today, the Company is modestly increasing fiscal 2025 EPS guidance to a range of
Dividend
Today the Company also announced that its Board of Directors declared a quarterly cash dividend of
Conference Call Information
The Company will host a conference call 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 |
||||||
|
2024 |
|
|
2023 |
||
|
$ |
1,098,944 |
|
$ |
1,095,188 |
|
Cost of sales |
|
773,862 |
|
|
770,106 |
|
Gross Profit |
|
325,082 |
|
|
325,082 |
|
Selling, distribution and administrative expense, including depreciation |
|
211,910 |
|
|
204,402 |
|
Operating Income |
|
113,172 |
|
|
120,680 |
|
Interest (income) expense, net |
|
(627 |
) |
|
1,320 |
|
Other (income) expense, net |
|
(2,281 |
) |
|
431 |
|
Income Before Income Taxes |
|
116,080 |
|
|
118,929 |
|
Income tax expense |
|
24,017 |
|
|
25,103 |
|
Net Income |
$ |
92,063 |
|
$ |
93,826 |
|
Net Income Per Share - Basic |
$ |
2.40 |
|
$ |
2.42 |
|
Net Income Per Share - Diluted |
$ |
2.36 |
|
$ |
2.39 |
|
Average Shares Outstanding - Basic |
|
38,398 |
|
|
38,700 |
|
Average Shares Outstanding - Diluted |
|
38,944 |
|
|
39,310 |
|
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) | ||||||||
2024 |
2024 |
|||||||
Assets | ||||||||
Cash and cash equivalents |
$ |
538,520 |
$ |
460,617 |
||||
Accounts receivable, net |
|
691,512 |
|
724,878 |
||||
Inventories |
|
497,568 |
|
488,258 |
||||
Other current assets |
|
81,950 |
|
96,148 |
||||
Total current assets |
|
1,809,550 |
|
1,769,901 |
||||
Property, net |
|
119,061 |
|
118,527 |
||||
Operating lease assets, net |
|
145,043 |
|
133,289 |
||||
Intangibles, net |
|
242,744 |
|
245,870 |
||||
|
|
624,217 |
|
619,395 |
||||
Other assets |
|
62,596 |
|
64,928 |
||||
Total Assets |
$ |
3,003,211 |
$ |
2,951,910 |
||||
Liabilities | ||||||||
Accounts payable |
$ |
265,136 |
$ |
266,949 |
||||
Current portion of long-term debt |
|
25,003 |
|
25,055 |
||||
Other accrued liabilities |
|
188,161 |
|
209,096 |
||||
Total current liabilities |
|
478,300 |
|
501,100 |
||||
Long-term debt |
|
572,288 |
|
572,279 |
||||
Other liabilities |
|
200,546 |
|
189,750 |
||||
Total Liabilities |
|
1,251,134 |
|
1,263,129 |
||||
Shareholders' Equity |
|
1,752,077 |
|
1,688,781 |
||||
Total Liabilities and Shareholders' Equity |
$ |
3,003,211 |
$ |
2,951,910 |
||||
|
||||||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Three Months Ended |
||||||||
|
2024 |
|
|
2023 |
|
|||
Cash Flows from Operating Activities | ||||||||
Net income |
$ |
92,063 |
|
$ |
93,826 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization of property |
|
5,924 |
|
|
5,717 |
|
||
Amortization of intangibles |
|
7,600 |
|
|
7,393 |
|
||
Provision for losses on accounts receivable |
|
1,056 |
|
|
867 |
|
||
Amortization of stock appreciation rights and options |
|
1,326 |
|
|
844 |
|
||
Other share-based compensation expense |
|
1,675 |
|
|
1,976 |
|
||
Changes in assets and liabilities, net of acquisitions |
|
16,587 |
|
|
(45,245 |
) |
||
Other, net |
|
1,516 |
|
|
831 |
|
||
|
|
127,747 |
|
|
66,209 |
|
||
Cash Flows from Investing Activities | ||||||||
Acquisition of businesses, net of cash acquired |
|
(10,498 |
) |
|
(21,440 |
) |
||
Capital expenditures |
|
(5,549 |
) |
|
(4,340 |
) |
||
Proceeds from property sales |
|
831 |
|
|
123 |
|
||
|
|
(15,216 |
) |
|
(25,657 |
) |
||
Cash Flows from Financing Activities | ||||||||
Long-term debt repayments |
|
(63 |
) |
|
(62 |
) |
||
Interest rate swap settlement receipts |
|
3,738 |
|
|
3,558 |
|
||
Purchases of treasury shares |
|
(9,980 |
) |
|
- |
|
||
Dividends paid |
|
(14,218 |
) |
|
(13,551 |
) |
||
Acquisition holdback payments |
|
(1,210 |
) |
|
(562 |
) |
||
Taxes paid for shares withheld for equity awards |
|
(12,314 |
) |
|
(11,866 |
) |
||
|
|
(34,047 |
) |
|
(22,483 |
) |
||
Effect of Exchange Rate Changes on Cash |
|
(581 |
) |
|
(1,690 |
) |
||
Increase in cash and cash equivalents |
|
77,903 |
|
|
16,379 |
|
||
Cash and Cash Equivalents at Beginning of Period |
|
460,617 |
|
|
344,036 |
|
||
Cash and Cash Equivalents at End of Period |
$ |
538,520 |
|
$ |
360,415 |
|
||
|
SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
(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 |
||||||
|
2024 |
|
|
2023 |
|
|
Net Income |
$ |
92,063 |
|
$ |
93,826 |
|
Interest (income) expense, net |
|
(627 |
) |
|
1,320 |
|
Income tax expense |
|
24,017 |
|
|
25,103 |
|
Depreciation and amortization of property |
|
5,924 |
|
|
5,717 |
|
Amortization of intangibles |
|
7,600 |
|
|
7,393 |
|
EBITDA |
$ |
128,977 |
|
$ |
133,359 |
|
The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results. | ||||||
Reconciliation of |
||||||
Three Months Ended |
||||||
|
2024 |
|
|
2023 |
|
|
|
$ |
127,747 |
|
$ |
66,209 |
|
Capital expenditures |
|
(5,549 |
) |
|
(4,340 |
) |
Free Cash Flow |
$ |
122,198 |
|
$ |
61,869 |
|
Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024779522/en/
Director – Investor Relations &
216-426-4887 / rcieslak@applied.com
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