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| 8-K - 8-K - APPLIED INDUSTRIAL TECHNOLOGIES INC | a8k102312release.htm |
EXHIBIT 99.1
Applied Industrial Technologies Reports Fiscal 2013
First Quarter Results and Declares Quarterly Dividend
Ÿ EPS up 14% on 5.3% sales gain
CLEVELAND, OH (October 23, 2012) - Applied Industrial Technologies (NYSE: AIT) today reported first quarter fiscal 2013 sales and earnings for the three months ended September 30, 2012.
Net sales for the first quarter increased to $610.5 million from $579.6 million in the comparable period a year ago. Net income for the quarter increased to $29.5 million, or $0.70 per share, compared to $26.4 million, or $0.61 per share, last year.
Commenting on results, Applied's Chief Executive Officer Neil A. Schrimsher said, “We continued to leverage our sales growth into solid earnings performance, converting a 5.3% sales increase to an 11.9% improvement in net income and a 14% increase in earnings per share. In addition, our strong operating margin of 7.3% for the quarter reflects the numerous initiatives we have in place to increase our efficiency, productivity and profitability.
“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 $2.90 to $3.05, while we are adjusting our revenue growth expectations to 6% to 10%.”
In addition, Mr. Schrimsher announced today that the Company's Board of Directors declared a quarterly cash dividend of $0.21 per common share, payable on November 30, 2012, to shareholders of record on November 15, 2012.
The Company will host its quarterly conference call for investors and analysts at 4 p.m. ET on
October 23, 2012. To join the call, dial 1-888-771-4371 or 1-847-585-4405 (for International callers) prior to the scheduled start using passcode 33464732. A live audio webcast can be accessed online at www.applied.com. A replay of the call will be available for two weeks by dialing 1-888-843-7419 or 1-630-652-3042 (International) using passcode 33464732.
With approximately 500 facilities and 4,900 employee associates, Applied Industrial Technologies is a leading industrial distributor that offers more than four million parts to serve the needs of MRO and OEM customers in virtually every industry. In addition, Applied provides engineering, design and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber and fluid power shop services. Applied also offers maintenance training and inventory management solutions that provide added value to its customers. Applied can be visited on the Internet at 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. Forward-looking statements are often identified by qualifiers such as “expect,” “guidance,” and similar expressions. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors including trends in the industrial sector
of the economy, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. 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 the Company 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, except as required by law.
# # #
For investor relations information, contact Mark O. Eisele, Vice President - Chief Financial Officer, at 216-426-4417. For corporate information, contact Julie A. Kho, Manager - Public Relations, at 216-426-4483.
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
CONDENSED STATEMENTS OF CONSOLIDATED INCOME |
(In thousands, except per share data) |
Three Months Ended | ||||||
September 30, | ||||||
2012 | 2011 | |||||
Net Sales | $ | 610,519 | $ | 579,574 | ||
Cost of sales | 445,986 | 420,870 | ||||
Gross Profit | 164,533 | 158,704 | ||||
Selling, distribution and administrative, | ||||||
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 |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Amounts in thousands) |
September 30, | June 30, | ||||||||
2012 | 2012 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 56,673 | $ | 78,442 | |||||
Accounts receivable, less allowances of $8,239 and $8,332 | 325,753 | 307,043 | |||||||
Inventories | 268,960 | 228,506 | |||||||
Other current assets | 35,709 | 51,771 | |||||||
Total current assets | 687,095 | 665,762 | |||||||
Property, net | 84,357 | 83,103 | |||||||
Goodwill | 94,626 | 83,080 | |||||||
Intangibles, net | 90,087 | 84,840 | |||||||
Other assets | 45,602 | 45,398 | |||||||
Total Assets | $ | 1,001,767 | $ | 962,183 | |||||
Liabilities | |||||||||
Accounts payable | $ | 145,932 | $ | 120,890 | |||||
Other accrued liabilities | 96,075 | 109,279 | |||||||
Total current liabilities | 242,007 | 230,169 | |||||||
Other liabilities | 56,661 | 59,883 | |||||||
Total Liabilities | 298,668 | 290,052 | |||||||
Shareholders' Equity | 703,099 | 672,131 | |||||||
Total Liabilities and Shareholders' Equity | $ | 1,001,767 | $ | 962,183 | |||||
APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
(In thousands) |
Three Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 29,532 | $ | 26,382 | ||||
Adjustments to reconcile net income to net cash provided | ||||||||
by operating activities: | ||||||||
Depreciation and amortization of property | 3,022 | 2,818 | ||||||
Amortization of intangibles | 3,055 | 2,809 | ||||||
Amortization of stock appreciation rights and options | 809 | 633 | ||||||
Gain on sale of property | (117 | ) | (386 | ) | ||||
Other share-based compensation expense | 1,035 | 1,260 | ||||||
Changes in assets and liabilities, net of acquisitions | (13,456 | ) | (17,371 | ) | ||||
Other, net | 67 | 256 | ||||||
Net Cash provided by Operating Activities | 23,947 | 16,401 | ||||||
Cash Flows from Investing Activities | ||||||||
Property purchases | (3,892 | ) | (7,142 | ) | ||||
Proceeds from property sales | 243 | 637 | ||||||
Net cash paid for acquisition of businesses, net of cash acquired | (35,409 | ) | (1,241 | ) | ||||
Net Cash used in Investing Activities | (39,058 | ) | (7,746 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Purchases of treasury shares | (18,178 | ) | ||||||
Dividends paid | (8,867 | ) | (8,099 | ) | ||||
Excess tax benefits from share-based compensation | 1,168 | 149 | ||||||
Acquisition holdback payments | (760 | ) | ||||||
Exercise of stock appreciation rights and options | 36 | 84 | ||||||
Net Cash used in Financing Activities | (8,423 | ) | (26,044 | ) | ||||
Effect of Exchange Rate Changes on Cash | 1,765 | (485 | ) | |||||
Decrease in cash and cash equivalents | (21,769 | ) | (17,874 | ) | ||||
Cash and cash equivalents at beginning of period | 78,442 | 91,092 | ||||||
Cash and Cash Equivalents at End of Period | $ | 56,673 | $ | 73,218 | ||||