Applied Industrial Technologies Inc 10-Q for FY2021 Q2

Applied Industrial Technologies Inc (AIT)

10-Q 2021-01-29 For: 2020-12-31

Added on April 10, 2026

About this 10-Q

Applied Industrial Technologies Inc filed this 10-Q on January 29, 2021, covering the quarter ended December 31, 2020 (FY2021 Q2).

Headline figures

Quarter ended December 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $751.29M; down 9.9% from $833.38M a year earlier
Net loss: $5.33M; compared with net income of $38.03M a year earlier
Diluted EPS: -$0.14; compared with $0.97 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				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Net sales	$	751,287	$	833,375	$	1,499,094	$	1,689,779
Cost of sales	541,753		592,141		1,073,779		1,197,085
Gross profit	209,534		241,234		425,315		492,694
Selling, distribution and administrative expense, including depreciation	162,428		182,489		325,901		372,783
Intangible and other impairment	49,528		—		49,528		—
Operating (loss) income	(2,422)		58,745		49,886		119,911
Interest expense, net	7,658		9,583		15,311		19,642
Other expense (income), net	88		(215)		(89)		(215)
(Loss) income before income taxes	(10,168)		49,377		34,664		100,484
Income tax (benefit) expense	(4,834)		11,346		5,214		23,654
Net (loss) income	$	(5,334)	$	38,031	$	29,450	$	76,830
Net (loss) income per share - basic	$	(0.14)	$	0.98	$	0.76	$	1.99
Net (loss) income per share - diluted	$	(0.14)	$	0.97	$	0.75	$	1.97
Weighted average common shares outstanding for basic computation	38,781		38,649		38,751		38,630
Dilutive effect of potential common shares	—		398		414		370
Weighted average common shares outstanding for diluted computation	38,781		39,047		39,165		39,000


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Net (loss) income per the condensed statements of consolidated income	$	(5,334)	$	38,031	$	29,450	$	76,830

Other comprehensive income, before tax:
Foreign currency translation adjustments	14,471		5,445		20,025		1,411
Post-employment benefits:
Reclassification of net actuarial losses (gains) and prior service cost into other income, net and included in net periodic pension costs	67		(16)		135		(33)


Unrealized (loss) gain on cash flow hedge	(2,724)		1,822		(2,741)		(358)
Reclassification of interest from cash flow hedge into interest expense	2,822		906		5,512		1,333
Total other comprehensive income, before tax	14,636		8,157		22,931		2,353
Income tax expense related to items of other comprehensive income	79		584		865		27
Other comprehensive income, net of tax	14,557		7,573		22,066		2,326
Comprehensive income, net of tax	$	9,223	$	45,604	$	51,516	$	79,156


☒			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


	December 31, 2020		June 30, 2020
ASSETS
Current assets
Cash and cash equivalents	$	288,775	$	268,551
Accounts receivable, net	444,200		449,998
Inventories	363,757		389,150
Other current assets	54,864		52,070
Total current assets	1,151,596		1,159,769
Property, less accumulated depreciation of $198,572 and $192,054	120,530		121,901
Operating lease assets, net	86,977		90,636
Identifiable intangibles, net	294,581		343,215
Goodwill	557,257		540,594
Other assets	30,076		27,436
TOTAL ASSETS	$	2,241,017	$	2,283,551

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	196,468	$	186,270
Current portion of long-term debt	78,638		78,646
Compensation and related benefits	67,253		61,887
Other current liabilities	83,508		99,280
Total current liabilities	425,867		426,083
Long-term debt	783,076		855,143
Other liabilities	151,367		158,783
TOTAL LIABILITIES	1,360,310		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	175,016		176,492
Retained earnings	1,217,582		1,200,570
Treasury shares—at cost (15,382 and 15,503 shares, respectively)	(414,527)		(414,090)
Accumulated other comprehensive loss	(107,364)		(129,430)
TOTAL SHAREHOLDERS’ EQUITY	880,707		843,542
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,241,017	$	2,283,551


For the Period Ended December 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, 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


For the Period Ended December 31, 2019	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


	Three Months Ended December 31,
	2020						2019
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Geographic Areas:
United States	$	417,456	$	230,358	$	647,814	$	467,191	$	253,149	$	720,340
Canada	57,809		—		57,809		67,897		—		67,897
Other countries	40,425		5,239		45,664		40,700		4,438		45,138
Total	$	515,690	$	235,597	$	751,287	$	575,788	$	257,587	$	833,375


	Six Months Ended December 31,
	2020						2019
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Geographic Areas:
United States	$	832,698	$	459,173	$	1,291,871	$	960,064	$	503,262	$	1,463,326
Canada	114,705		—		114,705		133,843		—		133,843
Other countries	81,571		10,947		92,518		85,041		7,569		92,610
Total	$	1,028,974	$	470,120	$	1,499,094	$	1,178,948	$	510,831	$	1,689,779


	Three Months Ended December 31, 2020
	2020						2019
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Power Transmission	37.3	%	8.0	%	28.1	%	35.4	%	11.8	%	28.1	%
Fluid Power	13.3	%	37.1	%	20.8	%	13.4	%	35.8	%	20.3	%
Bearings, Linear & Seals	28.9	%	0.5	%	20.0	%	26.2	%	0.4	%	18.2	%
General Maintenance; Hose Products	20.5	%	15.4	%	18.9	%	25.0	%	13.3	%	21.4	%
Specialty Flow Control	—	%	39.0	%	12.2	%	—	%	38.7	%	12.0	%
Total	100	%	100	%	100	%	100	%	100	%	100	%


	December 31, 2020		June 30, 2020		$ Change		% Change
Contract assets	$	7,314	$	8,435	$	(1,121)	(13.3)	%


December 31, 2020	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	354,043	$	131,233	$	222,810
Trade names	103,134		34,673		68,461
Vendor relationships	11,501		9,477		2,024
Other	1,775		489		1,286
Total Identifiable Intangibles	$	470,453	$	175,872	$	294,581


	Six Months Ended
	December 31,
	2020		2019
Cash Flows from Operating Activities
Net income	$	29,450	$	76,830
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	10,561		10,617
Amortization of intangibles	18,002		20,569
Intangible and other impairment	49,528		—

Amortization of stock options and appreciation rights	1,328		1,494

Other share-based compensation expense	2,167		1,837
Changes in operating assets and liabilities, net of acquisitions	52,005		(11,660)
Other, net	(3,685)		5,212
Net Cash provided by Operating Activities	159,356		104,899
Cash Flows from Investing Activities
Acquisition of businesses, net of cash acquired	(31,078)		(36,390)
Capital expenditures	(8,449)		(11,965)
Proceeds from property sales	292		325

Net Cash used in Investing Activities	(39,235)		(48,030)
Cash Flows from Financing Activities

Long-term debt borrowings	—		25,000
Long-term debt repayments	(72,260)		(34,868)
Interest rate swap settlement payments	(549)		—
Payment of debt issuance costs	—		(16)

Dividends paid	(24,899)		(24,002)
Acquisition holdback payments	(1,138)		(777)
Exercise of stock options and appreciation rights	163		330
Taxes paid for shares withheld for equity awards	(5,571)		(1,988)
Net Cash used in Financing Activities	(104,254)		(36,321)
Effect of Exchange Rate Changes on Cash	4,357		(618)
Increase in Cash and Cash Equivalents	20,224		19,930
Cash and Cash Equivalents at Beginning of Period	268,551		108,219
Cash and Cash Equivalents at End of Period	$	288,775	$	128,149


	Three Months Ended December 31,
	2020						2019
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
General Industry	35.8	%	39.8	%	37.1	%	34.4	%	41.0	%	36.4	%
Industrial Machinery	9.3	%	26.3	%	14.6	%	9.1	%	24.2	%	13.8	%
Food	14.1	%	3.0	%	10.6	%	12.0	%	3.0	%	9.2	%
Metals	10.5	%	6.6	%	9.3	%	10.7	%	7.6	%	9.8	%
Forest Products	10.8	%	3.1	%	8.4	%	9.5	%	2.9	%	7.5	%
Chem/Petrochem	3.3	%	14.5	%	6.8	%	3.6	%	14.4	%	6.9	%
Cement & Aggregate	7.6	%	1.0	%	5.5	%	7.8	%	1.0	%	5.7	%
Transportation	4.9	%	4.6	%	4.8	%	4.8	%	4.1	%	4.6	%
Oil & Gas	3.7	%	1.1	%	2.9	%	8.1	%	1.8	%	6.1	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Six Months Ended December 31,
	2020						2019
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
General Industry	36.0	%	39.6	%	37.1	%	34.6	%	42.4	%	37.0	%
Industrial Machinery	9.3	%	26.5	%	14.7	%	9.7	%	23.2	%	13.8	%
Food	14.1	%	3.0	%	10.6	%	11.5	%	2.8	%	8.9	%
Metals	10.3	%	6.8	%	9.2	%	11.5	%	7.9	%	10.4	%
Forest Products	10.8	%	3.0	%	8.4	%	8.6	%	3.0	%	6.9	%
Chem/Petrochem	3.4	%	13.9	%	6.7	%	3.2	%	13.5	%	6.3	%
Cement & Aggregate	7.7	%	1.1	%	5.6	%	7.3	%	1.0	%	5.4	%
Transportation	4.8	%	5.0	%	4.8	%	4.9	%	4.3	%	4.7	%
Oil & Gas	3.6	%	1.1	%	2.9	%	8.7	%	1.9	%	6.6	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	December 31, 2020		June 30, 2020
Term Loan	$	569,750	$	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	966		1,026
Total debt	$	863,016	$	935,276
Less: unamortized debt issuance costs	1,302		1,487
	$	861,714	$	933,789


	Acquisition Cost Allocation		Weighted-Average life
Customer relationships	$	11,820	20.0
Trade names	1,650		15.0
Other	520		6.4
Total Identifiable Intangibles	$	13,990	18.9


	Three Months Ended December 31, 2020
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at September 30, 2020	$	(99,655)	$	(4,513)	$	(17,753)	$	(121,921)
Other comprehensive income (loss)	14,433		—		(2,058)		12,375
Amounts reclassified from accumulated other comprehensive (loss) income	—		51		2,131		2,182

Net current-period other comprehensive income	14,433		51		73		14,557
Balance at December 31, 2020	$	(85,222)	$	(4,462)	$	(17,680)	$	(107,364)


	Three Months Ended December 31, 2019
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at September 30, 2019	$	(90,243)	$	(2,865)	$	(12,025)	$	(105,133)
Other comprehensive income	5,556		—		1,343		6,899
Amounts reclassified from accumulated other comprehensive (loss) income	—		(12)		686		674
Net current-period other comprehensive income (loss)	5,556		(12)		2,029		7,573
Balance at December 31, 2019	$	(84,687)	$	(2,877)	$	(9,996)	$	(97,560)


	Six Months Ended December 31, 2020
	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 (loss)	19,872		—		(2,071)		17,801
Amounts reclassified from accumulated other comprehensive (loss) income	—		102		4,163		4,265

Net current-period other comprehensive income	19,872		102		2,092		22,066
Balance at December 31, 2020	$	(85,222)	$	(4,462)	$	(17,680)	$	(107,364)


	Six Months Ended December 31, 2019
	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 income (loss)	1,643		—		(300)		1,343
Amounts reclassified from accumulated other comprehensive (loss) income	—		(25)		1,008		983

Net current-period other comprehensive income (loss)	1,643		(25)		708		2,326
Balance at December 31, 2019	$	(84,687)	$	(2,877)	$	(9,996)	$	(97,560)


	Index Reading
Month	MCU	PMI	IP
December 2020	74.5	60.7	102.2
November 2020	73.4	57.5	101.3
October 2020	73.0	59.3	100.5


	Three Months Ended December 31,				Change in $'s Versus Prior Period - % Decrease
	As a Percent of Net Sales
	2020		2019
Net sales	100.0	%	100.0	%	(9.9)	%
Gross profit	27.9	%	28.9	%	(13.1)	%
Selling, distribution & administrative expense	21.6	%	21.9	%	(11.0)	%
Operating (loss) income	(0.3)	%	7.0	%	(104.1)	%
Net (loss) income	(0.7)	%	4.6	%	(114.0)	%


Sales by Reportable Segment	Three Months Ended December 31,				Sales Decrease		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
	2020		2019				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	515.7	$	575.8	$	(60.1)	$	—	$	0.5	$	(60.6)
Fluid Power & Flow Control	235.6		257.6		(22.0)		4.1		—		(26.1)
Total	$	751.3	$	833.4	$	(82.1)	$	4.1	$	0.5	$	(86.7)


	Three Months Ended December 31,				Sales (Decrease) Increase		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
Sales by Geographic Area	2020		2019				Acquisitions		Foreign Currency		Organic Change
United States	$	647.8	$	720.3	$	(72.5)	$	4.1	$	—	$	(76.6)
Canada	57.8		67.9		(10.1)		—		0.8		(10.9)
Other countries	45.7		45.2		0.5		—		(0.3)		0.8
Total	$	751.3	$	833.4	$	(82.1)	$	4.1	$	0.5	$	(86.7)


	Three Months Ended December 31,				SD&A Decrease		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
	2020		2019				Acquisitions		Foreign Currency		Organic Change
SD&A	$	162.4	$	182.5	$	(20.1)	$	1.6	$	0.2	$	(21.9)


	Six Months Ended December 31,
Net Cash Provided by (Used in):	2020		2019
Operating Activities	$	159,356	$	104,899
Investing Activities	(39,235)		(48,030)
Financing Activities	(104,254)		(36,321)
Exchange Rate Effect	4,357		(618)
Increase in Cash and Cash Equivalents	$	20,224	$	19,930


	December 31, 2020		June 30, 2020
Unsecured credit facility	$	569,750	$	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	966		1,026
Total debt	$	863,016	$	935,276
Less: unamortized debt issuance costs	1,302		1,487
	$	861,714	$	933,789


							December 31,			June 30,
							2020			2020
Accounts receivable, gross							$	461,018		$	463,659
Allowance for doubtful accounts							16,818			13,661
Accounts receivable, net							$	444,200		$	449,998
Allowance for doubtful accounts, % of gross receivables							3.6		%	2.9		%

	Three Months Ended December 31,						Six Months Ended December 31,
	2020			2019			2020			2019
Provision for losses on accounts receivable	$	697		$	2,517		$	5,795		$	4,692
Provision as a % of net sales	0.09		%	0.30		%	0.39		%	0.28		%


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)
October 1, 2020 to October 31, 2020	0	$0.00	0	864,618
November 1, 2020 to November 30, 2020	0	$0.00	0	864,618
December 1, 2020 to December 31, 2020	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 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						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).

4.4						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).

4.5						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).

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:	January 29, 2021	By: /s/ Neil A. Schrimsher
		Neil A. Schrimsher
		President & Chief Executive Officer


Date:	January 29, 2021	By: /s/ David K. Wells
		David K. Wells
		Vice President-Chief Financial Officer & Treasurer


Date: January 29, 2021			By: /s/ Neil A. Schrimsher
			Neil A. Schrimsher
			President & Chief Executive Officer



/s/ Neil A. Schrimsher						/s/ David K. Wells
Neil A. Schrimsher						David K. Wells
President & Chief Executive Officer						Vice President-Chief Financial Officer & Treasurer


Date: January 29, 2021