Applied Industrial Technologies Inc 10-Q for FY2021 Q3

Applied Industrial Technologies Inc (AIT)

10-Q 2021-04-30 For: 2021-03-31

Added on April 10, 2026

About this 10-Q

Applied Industrial Technologies Inc filed this 10-Q on April 30, 2021, covering the quarter ended March 31, 2021 (FY2021 Q3).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $840.94M; up 1.2% from $830.8M a year earlier
Net income: $56.06M; compared with a net loss of $82.78M a year earlier
Diluted EPS: $1.42; compared with -$2.14 a year earlier

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Ohio			34-0117420
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

One Applied Plaza	Cleveland	Ohio	44115
(Address of principal executive offices)			(Zip Code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, without par value	AIT	New York Stock Exchange


Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	☐
		Emerging growth company	☐


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Net sales	$	840,937	$	830,797	$	2,340,031	$	2,520,576
Cost of sales	593,712		594,045		1,667,491		1,791,130
Gross profit	247,225		236,752		672,540		729,446
Selling, distribution and administrative expense, including depreciation	172,758		183,702		498,659		556,485
Impairment expense	—		131,000		49,528		131,000
Operating income (loss)	74,467		(77,950)		124,353		41,961
Interest expense, net	7,608		8,805		22,919		28,447
Other income, net	(1,657)		(1,428)		(1,746)		(1,643)
Income (loss) before income taxes	68,516		(85,327)		103,180		15,157
Income tax expense (benefit)	12,453		(2,550)		17,667		21,104
Net income (loss)	$	56,063	$	(82,777)	$	85,513	$	(5,947)
Net income (loss) per share - basic	$	1.44	$	(2.14)	$	2.21	$	(0.15)
Net income (loss) per share - diluted	$	1.42	$	(2.14)	$	2.18	$	(0.15)
Weighted average common shares outstanding for basic computation	38,835		38,682		38,779		38,647
Dilutive effect of potential common shares	577		—		482		—
Weighted average common shares outstanding for diluted computation	39,412		38,682		39,261		38,647


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Net income (loss) per the condensed statements of consolidated income	$	56,063	$	(82,777)	$	85,513	$	(5,947)

Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(496)		(28,767)		19,529		(27,356)
Post-employment benefits:
Reclassification of net actuarial losses (gains) and prior service cost into other income, net and included in net periodic pension costs	68		(17)		203		(50)


Unrealized gain (loss) on cash flow hedge	8,758		(13,891)		6,017		(14,249)
Reclassification of interest from cash flow hedge into interest expense	2,992		1,017		8,504		2,350
Total other comprehensive income (loss), before tax	11,322		(41,658)		34,253		(39,305)
Income tax expense (benefit) related to items of other comprehensive income	2,829		(3,711)		3,694		(3,684)
Other comprehensive income (loss), net of tax	8,493		(37,947)		30,559		(35,621)
Comprehensive income (loss), net of tax	$	64,556	$	(120,724)	$	116,072	$	(41,568)


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


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


	March 31, 2021		June 30, 2020
ASSETS
Current assets
Cash and cash equivalents	$	304,016	$	268,551
Accounts receivable, net	510,080		449,998
Inventories	358,237		389,150
Other current assets	54,023		52,070
Total current assets	1,226,356		1,159,769
Property, less accumulated depreciation of $200,039 and $192,054	116,951		121,901
Operating lease assets, net	84,062		90,636
Identifiable intangibles, net	287,686		343,215
Goodwill	559,196		540,594
Other assets	31,137		27,436
TOTAL ASSETS	$	2,305,388	$	2,283,551

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	217,252	$	186,270
Current portion of long-term debt	78,644		78,646
Compensation and related benefits	80,660		61,887
Other current liabilities	89,190		99,280
Total current liabilities	465,746		426,083
Long-term debt	773,404		855,143
Other liabilities	131,331		158,783
TOTAL LIABILITIES	1,370,481		1,440,009
Shareholders’ equity
Preferred stock—no par value; 2,500 shares authorized; none issued or outstanding	—		—
Common stock—no par value; 80,000 shares authorized; 54,213 shares issued	10,000		10,000
Additional paid-in capital	177,231		176,492
Retained earnings	1,260,761		1,200,570
Treasury shares—at cost (15,354 and 15,503 shares, respectively)	(414,214)		(414,090)
Accumulated other comprehensive loss	(98,871)		(129,430)
TOTAL SHAREHOLDERS’ EQUITY	934,907		843,542
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,305,388	$	2,283,551


For the Period Ended March 31, 2021	Shares of Common Stock Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Shares- at Cost		Accumulated Other Comprehensive Income (Loss)		Total Shareholders' Equity
Balance at June 30, 2020	38,710	$	10,000	$	176,492	$	1,200,570	$	(414,090)	$	(129,430)	$	843,542
Net income						34,784						34,784
Other comprehensive income										7,509		7,509

Cash dividends — $0.32 per share						(18)						(18)

Treasury shares issued for:
Exercise of stock appreciation rights and options	13			(277)				12				(265)
Performance share awards	22			(985)				(20)				(1,005)
Restricted stock units	15			(593)				96				(497)
Compensation expense — stock appreciation rights and options				693								693
Other share-based compensation expense				677								677
Other						15		(29)				(14)
Balance at September 30, 2020	38,760	$	10,000	$	176,007	$	1,235,351	$	(414,031)	$	(121,921)	$	885,406
Net loss						(5,334)						(5,334)
Other comprehensive income										14,557		14,557

Cash dividends — $0.32 per share						(12,483)						(12,483)

Treasury shares issued for:
Exercise of stock appreciation rights and options	71			(3,116)				(496)				(3,612)


Compensation expense — stock appreciation rights and options				635								635
Other share-based compensation expense				1,490								1,490
Other						48		—				48
Balance at December 31, 2020	38,831	$	10,000	$	175,016	$	1,217,582	$	(414,527)	$	(107,364)	$	880,707
Net income						56,063						56,063
Other comprehensive income										8,493		8,493

Cash dividends — $0.33 per share						(12,878)						(12,878)

Treasury shares issued for:
Exercise of stock appreciation rights and options	11			(379)				(40)				(419)

Restricted stock units	4			(147)				(1)				(148)
Compensation expense — stock appreciation rights and options				602								602
Other share-based compensation expense				2,493								2,493
Other	13			(354)		(6)		354				(6)
Balance at March 31, 2021	38,859	$	10,000	$	177,231	$	1,260,761	$	(414,214)	$	(98,871)	$	934,907


For the Period Ended March 31, 2020	Shares of Common Stock Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Shares- at Cost		Accumulated Other Comprehensive Income (Loss)		Total Shareholders' Equity
Balance at June 30, 2019	38,597	$	10,000	$	172,931	$	1,229,148	$	(415,159)	$	(99,886)	$	897,034
Net income						38,799						38,799
Other comprehensive loss										(5,247)		(5,247)
Cumulative effect of adopting accounting standards						(3,275)						(3,275)
Cash dividends — $0.31 per share						(20)						(20)

Treasury shares issued for:
Exercise of stock appreciation rights and options	5			(177)				61				(116)
Performance share awards	36			(1,540)				362				(1,178)
Restricted stock units	16			(631)				200				(431)
Compensation expense — stock appreciation rights and options				773								773
Other share-based compensation expense				919								919
Other	2			(52)		(4)		23				(33)
Balance at September 30, 2019	38,656	$	10,000	$	172,223	$	1,264,648	$	(414,513)	$	(105,133)	$	927,225
Net income						38,031						38,031
Other comprehensive income										7,573		7,573

Cash dividends — $0.31 per share						(12,017)						(12,017)

Treasury shares issued for:
Exercise of stock appreciation rights and options	22			(185)				(47)				(232)


Compensation expense — stock appreciation rights and options				721								721
Other share-based compensation expense				918								918
Other						23		(1)				22
Balance at December 31, 2019	38,678	$	10,000	$	173,677	$	1,290,685	$	(414,561)	$	(97,560)	$	962,241
Net income						(82,777)						(82,777)
Other comprehensive loss										(37,947)		(37,947)

Cash dividends — $0.32 per share						(12,423)						(12,423)

Treasury shares issued for:
Exercise of stock appreciation rights and options	14			(378)				(16)				(394)


Compensation expense — stock appreciation rights and options				723								723
Other share-based compensation expense				209								209
Other	15			599		(74)		403				928
Balance at March 31, 2020	38,707	$	10,000	$	174,830	$	1,195,411	$	(414,174)	$	(135,507)	$	830,560


	Three Months Ended March 31,
	2021						2020
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Geographic Areas:
United States	$	461,945	$	262,672	$	724,617	$	473,069	$	251,913	$	724,982
Canada	66,146		—		66,146		59,912		—		59,912
Other countries	44,801		5,373		50,174		41,387		4,516		45,903
Total	$	572,892	$	268,045	$	840,937	$	574,368	$	256,429	$	830,797


	Nine Months Ended March 31,
	2021						2020
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Geographic Areas:
United States	$	1,294,643	$	721,845	$	2,016,488	$	1,433,133	$	755,175	$	2,188,308
Canada	180,851		—		180,851		193,755		—		193,755
Other countries	126,372		16,320		142,692		126,428		12,085		138,513
Total	$	1,601,866	$	738,165	$	2,340,031	$	1,753,316	$	767,260	$	2,520,576


	March 31, 2021		June 30, 2020		$ Change		% Change
Contract assets	$	11,838	$	8,435	$	3,403	40.3	%


March 31, 2021	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	352,720	$	137,519	$	215,201
Trade names	105,065		36,172		68,893
Vendor relationships	11,481		9,666		1,815
Other	2,070		293		1,777
Total Identifiable Intangibles	$	471,336	$	183,650	$	287,686


	Acquisition Cost Allocation		Weighted-Average life
Customer relationships	$	10,390	20.0
Trade names	3,840		15.0
Other	1,090		5.9
Total Identifiable Intangibles	$	15,320	17.7


	Nine Months Ended
	March 31,
	2021		2020
Cash Flows from Operating Activities
Net income (loss)	$	85,513	$	(5,947)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	15,641		15,997
Amortization of intangibles	26,238		31,671
Impairment expense	49,528		131,000
Amortization of stock options and appreciation rights	1,930		2,217
Other share-based compensation expense	4,660		2,046
Changes in operating assets and liabilities, net of acquisitions	33,574		1,406
Other, net	(13,675)		(8,766)
Net Cash provided by Operating Activities	203,409		169,624
Cash Flows from Investing Activities
Acquisition of businesses, net of cash acquired	(30,023)		(37,237)
Capital expenditures	(12,177)		(16,223)
Proceeds from property sales	691		1,809

Net Cash used in Investing Activities	(41,509)		(51,651)
Cash Flows from Financing Activities

Long-term debt borrowings	—		25,000
Long-term debt repayments	(82,070)		(39,803)
Interest rate swap settlement payments	(2,122)		—
Payment of debt issuance costs	(399)		(22)

Dividends paid	(37,772)		(36,420)
Acquisition holdback payments	(2,344)		(2,440)
Exercise of stock options and appreciation rights	163		330
Taxes paid for shares withheld for equity awards	(5,990)		(2,604)
Net Cash used in Financing Activities	(130,534)		(55,959)
Effect of Exchange Rate Changes on Cash	4,099		(4,769)
Increase in Cash and Cash Equivalents	35,465		57,245
Cash and Cash Equivalents at Beginning of Period	268,551		108,219
Cash and Cash Equivalents at End of Period	$	304,016	$	165,464


	Three Months Ended March 31,
	2021						2020
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
General Industry	35.1	%	41.1	%	37.0	%	34.8	%	39.9	%	36.4	%
Industrial Machinery	10.1	%	26.7	%	15.4	%	9.9	%	24.7	%	14.5	%
Food	13.2	%	2.6	%	9.8	%	12.0	%	3.1	%	9.3	%
Metals	10.9	%	6.9	%	9.6	%	11.1	%	6.5	%	9.7	%
Forest Products	10.9	%	2.7	%	8.3	%	9.8	%	5.7	%	8.5	%
Chem/Petrochem	3.2	%	13.5	%	6.5	%	3.3	%	12.8	%	6.2	%
Cement & Aggregate	8.1	%	1.1	%	5.9	%	7.2	%	1.3	%	5.4	%
Transportation	4.7	%	4.3	%	4.6	%	4.6	%	4.7	%	4.6	%
Oil & Gas	3.8	%	1.1	%	2.9	%	7.3	%	1.3	%	5.4	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Nine Months Ended March 31,
	2021						2020
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
General Industry	35.6	%	40.1	%	36.9	%	34.6	%	41.6	%	36.7	%
Industrial Machinery	9.6	%	26.6	%	15.0	%	9.7	%	23.7	%	13.9	%
Food	13.8	%	2.9	%	10.3	%	11.6	%	2.9	%	9.0	%
Metals	10.5	%	6.8	%	9.4	%	11.3	%	7.4	%	10.1	%
Forest Products	10.9	%	2.9	%	8.4	%	9.0	%	3.9	%	7.4	%
Chem/Petrochem	3.4	%	13.7	%	6.6	%	3.2	%	13.3	%	6.3	%
Cement & Aggregate	7.8	%	1.1	%	5.7	%	7.2	%	1.1	%	5.4	%
Transportation	4.7	%	4.8	%	4.8	%	4.7	%	4.4	%	4.6	%
Oil & Gas	3.7	%	1.1	%	2.9	%	8.7	%	1.7	%	6.6	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Three Months Ended March 31,
	2021						2020
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Power Transmission	37.2	%	7.7	%	27.8	%	34.8	%	8.5	%	26.6	%
Fluid Power	13.4	%	38.3	%	21.3	%	13.3	%	40.5	%	21.7	%
Bearings, Linear & Seals	28.9	%	0.2	%	19.7	%	27.9	%	0.3	%	19.4	%
General Maintenance; Hose Products	20.5	%	18.8	%	20.0	%	24.0	%	12.2	%	20.4	%
Specialty Flow Control	—	%	35.0	%	11.2	%	—	%	38.5	%	11.9	%
Total	100	%	100	%	100	%	100	%	100	%	100	%


	March 31, 2021		June 30, 2020
Term Loan	$	560,000	$	589,250
Trade receivable securitization facility	162,300		175,000
Series C notes	80,000		120,000
Series D notes	25,000		25,000
Series E notes	25,000		25,000
Other	906		1,026
Total debt	$	853,206	$	935,276
Less: unamortized debt issuance costs	1,158		1,487
	$	852,048	$	933,789


	Three Months Ended March 31, 2021
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at December 31, 2020	$	(85,222)	$	(4,462)	$	(17,680)	$	(107,364)
Other comprehensive (loss) income	(434)		—		6,615		6,181
Amounts reclassified from accumulated other comprehensive loss	—		52		2,260		2,312

Net current-period other comprehensive (loss) income	(434)		52		8,875		8,493
Balance at March 31, 2021	$	(85,656)	$	(4,410)	$	(8,805)	$	(98,871)


	Three Months Ended March 31, 2020
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at December 31, 2019	$	(84,687)	$	(2,877)	$	(9,996)	$	(97,560)
Other comprehensive loss	(28,257)		—		(10,440)		(38,697)
Amounts reclassified from accumulated other comprehensive loss	—		(13)		763		750
Net current-period other comprehensive loss	(28,257)		(13)		(9,677)		(37,947)
Balance at March 31, 2020	$	(112,944)	$	(2,890)	$	(19,673)	$	(135,507)


	Nine Months Ended March 31, 2021
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at June 30, 2020	$	(105,094)	$	(4,564)	$	(19,772)	$	(129,430)
Other comprehensive income	19,438		—		4,544		23,982
Amounts reclassified from accumulated other comprehensive loss	—		154		6,423		6,577

Net current-period other comprehensive income	19,438		154		10,967		30,559
Balance at March 31, 2021	$	(85,656)	$	(4,410)	$	(8,805)	$	(98,871)


	Nine Months Ended March 31, 2020
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at June 30, 2019	$	(86,330)	$	(2,852)	$	(10,704)	$	(99,886)
Other comprehensive loss	(26,614)		—		(10,740)		(37,354)
Amounts reclassified from accumulated other comprehensive loss	—		(38)		1,771		1,733

Net current-period other comprehensive loss	(26,614)		(38)		(8,969)		(35,621)
Balance at March 31, 2020	$	(112,944)	$	(2,890)	$	(19,673)	$	(135,507)


	Index Reading
Month	MCU	PMI	IP
March 2021	74.4	64.7	102.8
February 2021	73.4	60.8	100.0
January 2021	75.3	58.7	103.9


	Three Months Ended March 31,				Change in $'s Versus Prior Period - % Increase (Decrease)
	As a Percent of Net Sales
	2021		2020
Net sales	100.0	%	100.0	%	1.2	%
Gross profit	29.4	%	28.5	%	4.4	%
Selling, distribution & administrative expense	20.5	%	22.1	%	(6.0)	%
Operating income (loss)	8.9	%	(9.4)	%	N/M
Net income (loss)	6.7	%	(10.0)	%	N/M


Sales by Reportable Segment	Three Months Ended March 31,				Sales (Decrease) Increase		Amount of change due to
	Three Months Ended March 31,								Foreign Currency		Organic Change
	2021		2020				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	572.9	$	574.4	$	(1.5)	$	—	$	5.3	$	(6.8)
Fluid Power & Flow Control	268.0		256.4		11.6		15.2		—		(3.6)
Total	$	840.9	$	830.8	$	10.1	$	15.2	$	5.3	$	(10.4)


	Three Months Ended March 31,				SD&A Decrease		Amount of change due to
	Three Months Ended March 31,								Foreign Currency		Organic Change
	2021		2020				Acquisitions		Foreign Currency		Organic Change
SD&A	$	172.8	$	183.7	$	(10.9)	$	4.0	$	1.7	$	(16.6)


	Nine Months Ended March 31, 2021				Change in $'s Versus Prior Period - % (Decrease) Increase
	As a Percent of Net Sales
	2021		2020
Net sales	100.0	%	100.0	%	(7.2)	%
Gross profit	28.7	%	28.9	%	(7.8)	%
Selling, distribution & administrative expense	21.3	%	22.1	%	(10.4)	%
Operating income	5.3	%	1.7	%	196.4	%
Net income	3.7	%	(0.2)	%	N/M


Sales by Reportable Segment	Nine Months Ended March 31,				Sales Decrease		Amount of change due to
	Nine Months Ended March 31,								Foreign Currency		Organic Change
	2021		2020				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	1,601.9	$	1,753.3	$	(151.4)	$	—	$	3.1	$	(154.5)
Fluid Power & Flow Control	738.2		767.3		(29.1)		29.0		—		(58.1)
Total	$	2,340.1	$	2,520.6	$	(180.5)	$	29.0	$	3.1	$	(212.6)


	Nine Months Ended March 31,
Net Cash Provided by (Used in):	2021		2020
Operating Activities	$	203,409	$	169,624
Investing Activities	(41,509)		(51,651)
Financing Activities	(130,534)		(55,959)
Exchange Rate Effect	4,099		(4,769)
Increase in Cash and Cash Equivalents	$	35,465	$	57,245


	March 31, 2021		June 30, 2020
Unsecured credit facility	$	560,000	$	589,250
Trade receivable securitization facility	162,300		175,000
Series C notes	80,000		120,000
Series D notes	25,000		25,000
Series E notes	25,000		25,000
Other	906		1,026
Total debt	$	853,206	$	935,276
Less: unamortized debt issuance costs	1,158		1,487
	$	852,048	$	933,789


							March 31,			June 30,
							2021			2020
Accounts receivable, gross							$	526,282		$	463,659
Allowance for doubtful accounts							16,202			13,661
Accounts receivable, net							$	510,080		$	449,998
Allowance for doubtful accounts, % of gross receivables							3.1		%	2.9		%

	Three Months Ended March 31,						Nine Months Ended March 31,
	2021			2020			2020			2019
Provision for losses on accounts receivable	$	(200)		$	5,296		$	5,595		$	9,988
Provision as a % of net sales	(0.02)		%	0.64		%	0.24		%	0.40		%


Period	(a) Total Number of Shares	(b) Average Price Paid per Share ($)	(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
January 1, 2021 to January 31, 2021	0	$0.00	0	864,618
February 1, 2021 to February 28, 2021	0	$0.00	0	864,618
March 1, 2021 to March 31, 2021	0	$0.00	0	864,618
Total	0	$0.00	0	864,618


Exhibit No.						Description
3.1						Amended and Restated Articles of Incorporation of Applied Industrial Technologies, Inc., as amended on October 25, 2005 (filed as Exhibit 3(a) to the Company’s Form 10-Q for the quarter ended December 31, 2005, SEC File No. 1-2299, and incorporated here by reference).

3.2						Code of Regulations of Applied Industrial Technologies, Inc., as amended on October 19, 1999 (filed as Exhibit 3(b) to the Company’s Form 10-Q for the quarter ended September 30, 1999, SEC File No. 1-2299, and incorporated here by reference).

4.1						Certificate of Merger of Bearings, Inc. (Ohio) (now named Applied Industrial Technologies, Inc.) and Bearings, Inc. (Delaware) filed with the Ohio Secretary of State on October 18, 1988, including an Agreement and Plan of Reorganization dated September 6, 1988 (filed as Exhibit 4(a) to the Company’s Registration Statement on Form S-4 filed May 23, 1997, Registration No. 333-27801, and incorporated here by reference).

4.2						Amended and Restated Note Purchase and Private Shelf Agreement dated as of October 30, 2019, between Applied Industrial Technologies, Inc.and PGIM, Inc. (formerly known as Prudential Investment Management, Inc.), and certain of its affiliates (filed as Exhibit 10.1 to the Company's Form 8-K filed November 5, 2019, SEC File No. 1-2299, and incorporated here by reference).

4.3						Amendment No. 1 to Amended and Restated Note Purchase and Private Shelf Agreement dated as of March 26, 2021 between Applied Industrial T e chnologies, Inc. and PGIM, Inc. (formerly known as Prudential Investment Manage ment, Inc.), and certain of its affiliates.


4.4						Request for Purchase dated May 30, 2014 and 3.19% Series C Notes dated July 1, 2014, under Amended and Restated Note Purchase and Private Shelf Agreement, between Applied Industrial Technologies, Inc. and PGIM, Inc. (filed as Exhibit 10.1 to the Company's Form 8-K filed July 2, 2014, SEC File No. 1-2299, and incorporated here by reference).

4.5						Credit Agreement dated as of January 31, 2018, among Applied Industrial Technologies, Inc., KeyBank National Association as Agent, and various financial institutions (filed as Exhibit 10.1 to the Company's Form 8-K filed February 6, 2018, SEC File No. 1-2299, and incorporated here by reference).

4.6						First Amendment to Credit Agreement dated as of March 26, 2021 among Applied Industrial Technologies, Inc., Key Bank National Association as Agent, and various financial institutions.

4.7						Receivables Financing Agreement dated as of August 31, 2018 among AIT Receivables LLC, as borrower, PNC Bank, National Association, as administrative agent, Applied Industrial Technologies, Inc., as initial servicer, PNC Capital Markets LLC, as structuring agent and the additional persons from time to time party thereto, as lenders (filed as Exhibit 10.1 to the Company's Form 8-K filed September 6, 2018, SEC File No. 1-2299, and incorporated here by reference).

4.8						Amendment No. 1 to Receivables Financing Agreement and Reaffirmation of Performance Guaranty dated as of March 26, 2021 among AIT Receivables LLC, as borrower, PNC Bank, National Association, as administrative agent, Applied Industrial Technologies, Inc., as initial servicer, PNC Capital Markets LLC, as structuring agent and the additional persons from time to time party thereto, as lenders (filed as Exhibit 10.2 to the Company's Form 8-K filed March 29, 2021, SEC File No. 1-2299, and incorporated here by reference).

4.9						Purchase and Sale Agreement dated as of August 31, 2018 among various entities listed on Schedule I thereto (including Applied Industrial Technologies, Inc.), as originators, Applied Industrial Technologies, Inc., as servicer, and AIT Receivables LLC, as buyer (filed as Exhibit 10.2 to the Company's Form 8-K filed September 6, 2018, SEC File No. 1-2299, and incorporated here by reference).

4.10						Amendment No. 1 to Purchase and Sale Agreement dated as of November 19, 2018 among Applied Industrial Technologies, Inc. and various of its affiliates, as originators, Applied Industrial Technologies, Inc., as servicer, and AIT Receivables LLC, as buyer.

4.11						Amendment No. 2 to Purchase and Sale Agreement dated as of March 26, 2021 among various entities listed on Schedule 1 thereto (including Applied Industrial Technologies, Inc.), as originators, Applied Industrial Technologies, In.c, as servicer, and AIT Receivables LLC, as buyer (filed as Exhibit 10.2 to the Company's Form 8-K filed March 29, 2021, SEC File No. 1-2299, and incorporated here by reference).

31						Rule 13a-14(a)/15d-14(a) certifications

32						Section 1350 certifications


101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH						XBRL Taxonomy Extension Schema Document

101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF						XBRL Taxonomy Extension Definition Linkbase Document

101.LAB						XBRL Taxonomy Extension Label Linkbase Document

101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document


		APPLIED INDUSTRIAL TECHNOLOGIES, INC.
		(Company)

Date:	April 30, 2021	By: /s/ Neil A. Schrimsher
		Neil A. Schrimsher
		President & Chief Executive Officer


Date:	April 30, 2021	By: /s/ David K. Wells
		David K. Wells
		Vice President-Chief Financial Officer & Treasurer