0000109563-13-000011.txt : 20130502 0000109563-13-000011.hdr.sgml : 20130502 20130502081028 ACCESSION NUMBER: 0000109563-13-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130502 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130502 DATE AS OF CHANGE: 20130502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: APPLIED INDUSTRIAL TECHNOLOGIES INC CENTRAL INDEX KEY: 0000109563 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MACHINERY, EQUIPMENT & SUPPLIES [5080] IRS NUMBER: 340117420 STATE OF INCORPORATION: OH FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02299 FILM NUMBER: 13805457 BUSINESS ADDRESS: STREET 1: ONE APPLIED PLAZA CITY: CLEVELAND STATE: OH ZIP: 44115-5056 BUSINESS PHONE: 216-426-4753 MAIL ADDRESS: STREET 1: ONE APPLIED PLAZA CITY: CLEVELAND STATE: OH ZIP: 44115-5056 FORMER COMPANY: FORMER CONFORMED NAME: BEARINGS INC /OH/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BROWN JIM STORES INC DATE OF NAME CHANGE: 19600201 8-K 1 a8k522013release.htm 8-K 8K 5.2.2013 Release


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 2, 2013


APPLIED INDUSTRIAL TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)



OHIO
1-2299
34-0117420
(State or Other Jurisdiction of
(Commission File
(I.R.S. Employer
Incorporation or Organization)
Number)
Identification No.)



One Applied Plaza, Cleveland, Ohio 44115
(Address of Principal Executive Officers) (Zip Code)

Registrant's Telephone Number, Including Area Code: (216) 426-4000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

q Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

q Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-
12)

q Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))

q Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))






ITEM 2.02.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On May 2, 2013, Applied Industrial Technologies, Inc. (“Applied”) issued a release related to earnings for its third quarter ended March 31, 2013. The release is attached as Exhibit 99.1 to this Report on Form 8-K.

The information in this Report on Form 8-K, including the Exhibit, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.



ITEM 9.01.    FINANCIAL STATEMENTS AND EXHIBITS.    

(d)
Exhibits.
 
 
 
 
 
Exhibit 99.1
Press release of Applied Industrial Technologies, Inc. dated May 2, 2013.
 
 
 



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
APPLIED INDUSTRIAL TECHNOLOGIES, INC.
 
(Registrant)
 
 
 
 
 
 
 
By:  /s/ Fred D. Bauer
 
Fred D. Bauer, Vice President-General Counsel & Secretary
Date: May 2, 2013
 








Exhibit No.
Description
 
 
99.1
The following exhibit is furnished with this Report on Form 8-K: Press release of Applied Industrial Technologies, Inc. dated May 2, 2013.
 
 




 EX-99.1 2 exhibit9915-2x2013release.htm EXHIBIT Exhibit 99.1 5-2-2013 Release


EXHIBIT 99.1





Applied Industrial Technologies Reports Fiscal 2013
Third Quarter Results and Declares Dividend

CLEVELAND, OHIO (May 2, 2013) - Applied Industrial Technologies (NYSE: AIT) today reported third quarter fiscal 2013 sales and earnings for the three months ended March 31, 2013.

Net sales for the third quarter increased 2.7% to $621.7 million from $605.5 million in the comparable period a year ago. Net income for the quarter was $29.3 million, or $0.69 per share, essentially flat compared with the third quarter of 2012.

For the nine months ended March 31, 2013, sales increased 3.8% to $1.82 billion from $1.76 billion in the same period last year. Net income increased 11.9% to $85.9 million from $76.7 million, and earnings per share increased 12.8% to $2.02 per share from $1.79 per share, last year.
 
Commenting on the Company's performance, Applied's Chief Executive Officer Neil A. Schrimsher said, “While some economic uncertainty persisted in our third quarter, we translated modest sales growth into solid earnings - benefiting from our business investments, efficiency gains and disciplined cost controls. While overall our third quarter sales trend remained similar to the prior quarter, we did see month-over-month increases in sales per day in our U.S. service center and fluid power businesses. Consistent with the current levels of various economic production and capacity utilization indices, we remain optimistic about the industrial economy for the 2013 calendar year.

“We enter our fourth quarter debt free, with a strong balance sheet, and with a shared determination to serve our customers and profitably grow our business - organically, via acquisition and through our technology investments.
 
“Looking ahead, we remain on track to meet our previously stated fiscal 2013 earnings guidance of $2.70 to $2.90 per share on sales growth expectations of 4% to 7%,” said Schrimsher.

In addition, Mr. Schrimsher announced today that the Company's Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on May 31, 2013, to shareholders of record on May 15, 2013.

The quarterly conference call for investors and analysts will begin at 10 a.m. ET on May 2. The call will be conducted by CEO Neil A. Schrimsher, President & COO Benjamin J. Mondics, and Vice President & CFO Mark O. Eisele. To join the call, dial 1-888-771-4371 or 1-847-585-4405 (for International callers) prior to the scheduled start using passcode 34562358. 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 345662358.

With more than 500 facilities and 5,000 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 “optimistic,” “guidance,” “expect,” 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, 216-426-4483.








  APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(In thousands, except per share data)

 
Three Months Ended
Nine Months Ended
 
March 31,
March 31,
 
2013
2012
2013
2012
Net Sales
$
621,654

$
605,461

$
1,821,690

$
1,755,432

Cost of sales
447,254

437,848

1,319,838

1,273,646

Gross Profit
174,400

167,613

501,852

481,786

Selling, distribution and administrative,
 
 
 
 
   including depreciation
130,923

125,594

373,488

363,165

Operating Income
43,477

42,019

128,364

118,621

Interest expense, net
107

54

147

111

Other (income) expense, net
(1,027
)
(1,887
)
(1,913
)
823

Income Before Income Taxes
44,397

43,852

130,130

117,687

Income Tax Expense
15,095

14,434

44,253

40,952

Net Income
$
29,302

$
29,418

$
85,877

$
76,735

Net Income Per Share - Basic
$
0.70

$
0.70

$
2.04

$
1.82

Net Income Per Share - Diluted
$
0.69

$
0.69

$
2.02

$
1.79

Average Shares Outstanding - Basic
42,098

42,109

42,038

42,157

Average Shares Outstanding - Diluted
42,570

42,779

42,517

42,838


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 periods ended March 31, 2013 and 2012.








APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)


 
 
 
 
March 31,
 
June 30,
 
 
 
 
2013
 
2012
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
  Cash and cash equivalents
 
$
43,083

 
$
78,442

  Accounts receivable, net of allowances of $8,517 and $8,332
336,245

 
307,043

  Inventories
 
 
281,198

 
228,506

  Other current assets
 
42,355

 
51,771

       Total current assets
 
702,881

 
665,762

  Property, net
 
 
84,355

 
83,103

  Goodwill
 
 
108,060

 
83,080

  Intangibles, net
 
 
95,215

 
84,840

  Other assets
 
 
45,426

 
45,398

Total Assets
 
 
$
1,035,937

 
$
962,183

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
  Accounts payable
 
 
$
140,865

 
$
120,890

  Other accrued liabilities
 
99,925

 
109,279

       Total current liabilities
 
240,790

 
230,169

  Other liabilities
 
 
57,167

 
59,883

Total Liabilities
 
 
297,957

 
290,052

Shareholders' Equity
 
737,980

 
672,131

Total Liabilities and Shareholders' Equity
$
1,035,937

 
$
962,183








APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
 (In thousands)

 
 
Nine Months Ended
 
 
March 31,
 
 
2013
 
2012
 
 
 
 
 
Cash Flows from Operating Activities
 
 
 
 
Net income
 
$
85,877

 
$
76,735

Adjustments to reconcile net income to net cash provided
 
 
 
 
   by operating activities:
 
 
 
 
   Depreciation and amortization of property
 
9,234

 
8,388

   Amortization of intangibles
 
9,716

 
8,455

   Amortization of stock options and appreciation rights
 
1,959

 
1,810

   Gain on sale of property
 
(223
)
 
(626
)
   Other share-based compensation expense
 
2,873

 
3,470

   Changes in operating assets and liabilities, net of acquisitions
 
(39,787
)
 
(39,625
)
   Other, net
 
(593
)
 
3,364

Net Cash provided by Operating Activities
 
69,056

 
61,971

Cash Flows from Investing Activities
 
 
 
 
   Property purchases
 
(9,836
)
 
(18,295
)
   Proceeds from property sales
 
737

 
1,209

   Net cash paid for acquisition of businesses, net of cash acquired
 
(67,591
)
 
(14,297
)
Net Cash used in Investing Activities
 
(76,690
)
 
(31,383
)
Cash Flows from Financing Activities
 
 
 
 
   Purchase of treasury shares
 
 
 
(18,990
)
   Dividends paid
 
(27,468
)
 
(24,939
)
   Excess tax benefits from share-based compensation
 
1,718

 
2,263

   Acquisition holdback payments
 
(3,576
)
 
 
   Exercise of stock options and appreciation rights
 
498

 
324

Net Cash provided by (used in) Financing Activities
 
(28,828
)
 
(41,342
)
Effect of Exchange Rate Changes on Cash
 
1,103

 
(930
)
Decrease in Cash and Cash Equivalents
 
(35,359
)
 
(11,684
)
Cash and Cash Equivalents at Beginning of Period
 
78,442

 
91,092

Cash and Cash Equivalents at End of Period
 
$
43,083

 
$
79,408