Press Release
View printer-friendly versionNet sales for the first quarter increased to
Commenting on results, Applied's Chief Executive Officer
"We are actively implementing and driving our long-range strategic plan throughout the organization. Applied associates are building upon our strong capabilities, expanding our value-add and generating success with our customers. We have great potential and excellent opportunities for growth and increased profitability – organically, via acquisition and through our technology investments. In the current macroeconomic industrial environment, we are maintaining our full-year fiscal 2013 earnings per share guidance of
to 6% to 10%."
In addition, Mr. Schrimsher announced today that the Company's Board of Directors declared a quarterly cash dividend of
The Company will host its quarterly conference call for investors and analysts at
With approximately 500 facilities and 4,900 employee associates,
This press release contains statements that are forward-looking, as that term is defined by the
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
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CONDENSED STATEMENTS OF CONSOLIDATED INCOME |
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(In thousands, except per share data) |
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Three Months Ended |
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2012 |
2011 |
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Net Sales |
$ 610,519 |
$ 579,574 |
Cost of sales |
445,986 |
420,870 |
Gross Profit |
164,533 |
158,704 |
Selling, distribution and administrative, |
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including depreciation |
120,215 |
115,437 |
Operating Income |
44,318 |
43,267 |
Interest expense, net |
25 |
47 |
Other (income) expense, net |
(459) |
1,932 |
Income Before Income Taxes |
44,752 |
41,288 |
Income Tax Expense |
15,220 |
14,906 |
Net Income |
$ 29,532 |
$ 26,382 |
Net Income Per Share - Basic |
$ 0.70 |
$ 0.62 |
Net Income Per Share - Diluted |
$ 0.70 |
$ 0.61 |
Average Shares Outstanding - Basic |
41,966 |
42,397 |
Average Shares Outstanding - Diluted |
42,477 |
42,961 |
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.
There were no LIFO layer liquidation benefits recognized for the quarters ended September 30, 2012 and 2011. |
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Amounts in thousands) |
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September 30, |
June 30, |
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Assets |
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Cash and cash equivalents |
$ 56,673 |
$ 78,442 |
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Accounts receivable, less allowances of $8,239 and $8,332 |
325,753 |
307,043 |
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Inventories |
268,960 |
228,506 |
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Other current assets |
35,709 |
51,771 |
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Total current assets |
687,095 |
665,762 |
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Property, net |
84,357 |
83,103 |
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Goodwill |
94,626 |
83,080 |
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Intangibles, net |
90,087 |
84,840 |
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Other assets |
45,602 |
45,398 |
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Total Assets |
$ 1,001,767 |
$ 962,183 |
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Liabilities |
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Accounts payable |
$ 145,932 |
$ 120,890 |
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Other accrued liabilities |
96,075 |
109,279 |
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Total current liabilities |
242,007 |
230,169 |
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Other liabilities |
56,661 |
59,883 |
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Total Liabilities |
298,668 |
290,052 |
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Shareholders' Equity |
703,099 |
672,131 |
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Total Liabilities and Shareholders' Equity |
$ 1,001,767 |
$ 962,183 |
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APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
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CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
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(In thousands) |
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Three Months Ended |
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2012 |
2011 |
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Cash Flows from Operating Activities |
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Net income |
$ 29,532 |
$ 26,382 |
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Adjustments to reconcile net income to net cash provided |
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by operating activities: |
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Depreciation and amortization of property |
3,022 |
2,818 |
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Amortization of intangibles |
3,055 |
2,809 |
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Amortization of stock appreciation rights and options |
809 |
633 |
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Gain on sale of property |
(117) |
(386) |
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Other share-based compensation expense |
1,035 |
1,260 |
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Changes in assets and liabilities, net of acquisitions |
(13,456) |
(17,371) |
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Other, net |
67 |
256 |
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Net Cash provided by Operating Activities |
23,947 |
16,401 |
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Cash Flows from Investing Activities |
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Property purchases |
(3,892) |
(7,142) |
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Proceeds from property sales |
243 |
637 |
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Net cash paid for acquisition of businesses, net of cash acquired |
(35,409) |
(1,241) |
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Net Cash used in Investing Activities |
(39,058) |
(7,746) |
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Cash Flows from Financing Activities |
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Purchases of treasury shares |
(18,178) |
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Dividends paid |
(8,867) |
(8,099) |
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Excess tax benefits from share-based compensation |
1,168 |
149 |
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Acquisition holdback payments |
(760) |
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Exercise of stock appreciation rights and options |
36 |
84 |
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Net Cash used in Financing Activities |
(8,423) |
(26,044) |
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Effect of Exchange Rate Changes on Cash |
1,765 |
(485) |
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Decrease in cash and cash equivalents |
(21,769) |
(17,874) |
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Cash and cash equivalents at beginning of period |
78,442 |
91,092 |
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Cash and Cash Equivalents at End of Period |
$ 56,673 |
$ 73,218 |
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SOURCE
For investor relations information, contact Mark O. Eisele, Vice President - Chief Financial Officer, at +1-216-426-4417. For corporate information, contact Julie A. Kho, Manager - Public Relations, at +1-216-426-4483.