Applied Industrial Technologies Inc 10-Q for FY2023 Q3

Applied Industrial Technologies Inc (AIT)

10-Q 2023-04-28 For: 2023-03-31

Added on April 10, 2026

About this 10-Q

Applied Industrial Technologies Inc filed this 10-Q on April 28, 2023, covering the quarter ended March 31, 2023 (FY2023 Q3).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.13B; up 15.4% from $980.66M a year earlier
Net income: $97.19M; up 42.3% from net income of $68.31M a year earlier
Diluted EPS: $2.47; up 41.1% from $1.75 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	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2023		2022		2023		2022
Net sales	$	1,132,035	$	980,662	$	3,254,720	$	2,749,217
Cost of sales	798,917		693,338		2,306,314		1,948,928
Gross profit	333,118		287,324		948,406		800,289
Selling, distribution and administrative expense, including depreciation	206,207		191,481		602,070		551,655

Operating income	126,911		95,843		346,336		248,634
Interest expense, net	4,773		5,852		17,438		20,249
Other (income) expense, net	(142)		469		1,624		(712)
Income before income taxes	122,280		89,522		327,274		229,097
Income tax expense	25,093		21,216		72,750		50,796
Net income	$	97,187	$	68,306	$	254,524	$	178,301
Net income per share - basic	$	2.52	$	1.78	$	6.60	$	4.63
Net income per share - diluted	$	2.47	$	1.75	$	6.49	$	4.56
Weighted average common shares outstanding for basic computation	38,617		38,453		38,574		38,470
Dilutive effect of potential common shares	651		645		629		632
Weighted average common shares outstanding for diluted computation	39,268		39,098		39,203		39,102


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2023		2022		2023		2022
Net income per the condensed statements of consolidated income	$	97,187	$	68,306	$	254,524	$	178,301

Other comprehensive income, before tax:
Foreign currency translation adjustments	5,763		6,782		255		(1,183)
Post-employment benefits:
Reclassification of net actuarial losses and prior service cost into other (income) expense, net and included in net periodic pension costs	9		74		27		224
Termination of pension plan	—		—		1,031		—

Unrealized (loss) gain on cash flow hedge	(2,309)		17,738		10,549		23,201
Reclassification of interest from cash flow hedge into interest expense, net	(3,036)		2,462		(2,955)		7,632
Total other comprehensive income, before tax	427		27,056		8,907		29,874
Income tax (benefit) expense related to items of other comprehensive income	(1,315)		4,977		2,256		7,638
Other comprehensive income, net of tax	1,742		22,079		6,651		22,236
Comprehensive income, net of tax	$	98,929	$	90,385	$	261,175	$	200,537


☒			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, 2023		June 30, 2022
ASSETS
Current assets
Cash and cash equivalents	$	182,127	$	184,474
Accounts receivable, net	705,638		656,429
Inventories	526,978		449,821
Other current assets	92,002		68,805
Total current assets	1,506,745		1,359,529
Property, less accumulated depreciation of $225,379 and $215,015	115,383		111,896
Operating lease assets, net	101,960		108,052
Identifiable intangibles, net	243,133		250,590
Goodwill	577,235		563,205
Other assets	64,182		59,316
TOTAL ASSETS	$	2,608,638	$	2,452,588

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	276,024	$	259,463
Current portion of long-term debt	25,196		40,174
Compensation and related benefits	80,545		91,166
Other current liabilities	98,827		108,824
Total current liabilities	480,592		499,627
Long-term debt	597,006		649,150
Other liabilities	150,380		154,456
TOTAL LIABILITIES	1,227,978		1,303,233
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	186,187		183,822
Retained earnings	1,727,534		1,499,676
Treasury shares—at cost (15,559 and 15,714 shares, respectively)	(477,417)		(471,848)
Accumulated other comprehensive loss	(65,644)		(72,295)
TOTAL SHAREHOLDERS’ EQUITY	1,380,660		1,149,355
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,608,638	$	2,452,588


For the Period Ended March 31, 2023	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, 2022	38,499	$	10,000	$	183,822	$	1,499,676	$	(471,848)	$	(72,295)	$	1,149,355
Net income						76,880						76,880
Other comprehensive loss										(1,635)		(1,635)

Cash dividends — $0.34 per share												—
Purchases of common stock for treasury	(8)							(716)				(716)
Treasury shares issued for:
Exercise of stock appreciation rights and options	21			(860)				(366)				(1,226)
Performance share awards	23			(1,290)				(758)				(2,048)
Restricted stock units	33			(1,668)				(902)				(2,570)
Compensation expense — stock appreciation rights and options				1,424								1,424
Other share-based compensation expense				1,939								1,939
Other	3			(19)		(5)		61				37
Balance at September 30, 2022	38,571	$	10,000	$	183,348	$	1,576,551	$	(474,529)	$	(73,930)	$	1,221,440
Net income						80,457						80,457
Other comprehensive income										6,544		6,544

Cash dividends — $0.34 per share						(13,175)						(13,175)

Treasury shares issued for:
Exercise of stock appreciation rights and options	28			(1,061)				(878)				(1,939)


Compensation expense — stock appreciation rights and options				447								447
Other share-based compensation expense				2,062								2,062
Other				(1)		41						40
Balance at December 31, 2022	38,599	$	10,000	$	184,795	$	1,643,874	$	(475,407)	$	(67,386)	$	1,295,876
Net income						97,187						97,187
Other comprehensive income										1,742		1,742
Cash dividends — $0.35 per share						(13,562)						(13,562)

Treasury shares issued for:
Exercise of stock appreciation rights and options	40			(2,173)				(2,401)				(4,574)

Restricted stock units	1			(44)				(30)				(74)
Compensation expense — stock appreciation rights and options				451								451
Other share-based compensation expense				3,418								3,418
Other	14			(260)		35		421				196
Balance at March 31, 2023	38,654	10,000		186,187		1,727,534		(477,417)		(65,644)		1,380,660


For the Period Ended March 31, 2022	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, 2021	38,516	$	10,000	$	177,014	$	1,294,413	$	(455,789)	$	(93,092)	$	932,546
Net income						52,969						52,969
Other comprehensive loss										(4,731)		(4,731)

Cash dividends — $0.33 per share												—
Purchases of common stock for treasury	(77)							(6,537)				(6,537)
Treasury shares issued for:
Exercise of stock appreciation rights and options	3			(116)				8				(108)
Performance share awards	5			(222)				(73)				(295)
Restricted stock units	12			(572)				(120)				(692)
Compensation expense — stock appreciation rights and options				1,907								1,907
Other share-based compensation expense				1,563								1,563
Other	(2)					(7)		(45)				(52)
Balance at September 30, 2021	38,457	$	10,000	$	179,574	$	1,347,375	$	(462,556)	$	(97,823)	$	976,570
Net income						57,026						57,026
Other comprehensive income										4,888		4,888

Cash dividends — $0.33 per share						(12,759)						(12,759)
Purchases of common stock for treasury	(35)							(3,527)				(3,527)
Treasury shares issued for:
Exercise of stock appreciation rights and options	35			(1,639)				(832)				(2,471)


Compensation expense — stock appreciation rights and options				609								609
Other share-based compensation expense				1,705								1,705
Other	(4)			(1)		13		(364)				(352)
Balance at December 31, 2021	38,453	$	10,000	$	180,248	$	1,391,655	$	(467,279)	$	(92,935)	$	1,021,689
Net income						68,306						68,306
Other comprehensive income										22,079		22,079
Cash dividends — $0.34 per share						(13,131)						(13,131)
Purchases of common stock for treasury	(35)							(3,540)				(3,540)
Treasury shares issued for:
Exercise of stock appreciation rights and options	16			(40)				(130)				(170)
Restricted stock units				(18)				(16)				(34)
Compensation expense — stock appreciation rights and options				381								381
Other share-based compensation expense				2,796								2,796
Other	10			(267)		17		268				18
Balance at March 31, 2022	38,444	$	10,000	$	183,100	$	1,446,847	$	(470,697)	$	(70,856)	$	1,098,394


	Three Months Ended March 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Geographic Areas:
United States	$	628,816	$	363,945	$	992,761	$	541,622	$	314,626	$	856,248
Canada	80,133		—		80,133		70,493		—		70,493
Other countries	52,650		6,491		59,141		46,883		7,038		53,921
Total	$	761,599	$	370,436	$	1,132,035	$	658,998	$	321,664	$	980,662


	Nine Months Ended March 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Geographic Areas:
United States	$	1,795,148	$	1,048,299	$	2,843,447	$	1,495,198	$	882,025	$	2,377,223
Canada	234,605		—		234,605		211,322		—		211,322
Other countries	155,226		21,442		176,668		140,567		20,105		160,672
Total	$	2,184,979	$	1,069,741	$	3,254,720	$	1,847,087	$	902,130	$	2,749,217


	March 31, 2023		June 30, 2022		$ Change		% Change
Contract assets	$	19,356	$	18,050	$	1,306	7.2	%


March 31, 2023	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	364,292	$	183,032	$	181,260
Trade names	108,291		49,012		59,279
Vendor relationships	9,861		9,580		281
Other	3,346		1,033		2,313
Total Identifiable Intangibles	$	485,790	$	242,657	$	243,133


	Acquisition Cost Allocation		Weighted-Average life
Customer relationships	$	11,176	20.0
Trade names	3,610		15.0
Other	1,025		6.7
Total Identifiable Intangibles	$	15,811	18.0


	Nine Months Ended
	March 31,
	2023		2022
Cash Flows from Operating Activities
Net income	$	254,524	$	178,301
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	16,598		16,215
Amortization of intangibles	23,189		24,096
Provision for losses on accounts receivable	4,676		2,905
Amortization of stock options and appreciation rights	2,322		2,897
Other share-based compensation expense	7,419		6,064
Changes in operating assets and liabilities, net of acquisitions	(142,092)		(106,136)
Other, net	(2,609)		9,481
Net Cash provided by Operating Activities	164,027		133,823
Cash Flows from Investing Activities
Acquisition of businesses, net of cash acquired	(35,667)		(6,974)
Capital expenditures	(20,809)		(11,674)
Proceeds from property sales	226		494
Life insurance proceeds	—		3,159
Cash payments for loans on company-owned life insurance	—		(14,835)
Net Cash used in Investing Activities	(56,250)		(29,830)
Cash Flows from Financing Activities
Net (repayments) borrowings under revolving credit facility	(27,000)		442,592

Long-term debt repayments	(40,185)		(550,432)
Interest rate swap settlement receipts (payments)	5,501		(4,812)
Payment of debt issuance costs	—		(1,956)
Purchases of treasury shares	(716)		(13,604)
Dividends paid	(39,829)		(38,612)
Acquisition holdback payments	(1,510)		(2,361)
Exercise of stock options and appreciation rights	127		224
Taxes paid for shares withheld for equity awards	(7,914)		(4,405)
Net Cash used in Financing Activities	(111,526)		(173,366)
Effect of Exchange Rate Changes on Cash	1,402		(288)
Decrease in Cash and Cash Equivalents	(2,347)		(69,661)
Cash and Cash Equivalents at Beginning of Period	184,474		257,745
Cash and Cash Equivalents at End of Period	$	182,127	$	188,084


	Three Months Ended March 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
General Industry	33.9	%	39.9	%	35.8	%	35.2	%	40.5	%	36.8	%
Industrial Machinery	9.7	%	25.9	%	15.0	%	10.6	%	27.9	%	16.3	%
Metals	10.6	%	7.8	%	9.7	%	11.4	%	7.7	%	10.2	%
Food	13.1	%	2.7	%	9.7	%	12.6	%	2.7	%	9.4	%
Forest Products	12.5	%	3.6	%	9.6	%	10.8	%	2.1	%	7.9	%
Chem/Petrochem	2.9	%	14.3	%	6.6	%	2.9	%	13.3	%	6.3	%
Cement & Aggregate	7.9	%	1.2	%	5.7	%	7.1	%	1.1	%	5.2	%
Oil & Gas	5.8	%	1.4	%	4.4	%	5.5	%	1.1	%	4.1	%
Transportation	3.6	%	3.2	%	3.5	%	3.9	%	3.6	%	3.8	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Nine Months Ended March 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
General Industry	33.8	%	40.6	%	36.1	%	34.8	%	40.1	%	36.5	%
Industrial Machinery	10.0	%	26.8	%	15.5	%	10.5	%	28.6	%	16.4	%
Metals	10.7	%	7.7	%	9.7	%	11.2	%	7.4	%	10.0	%
Food	13.0	%	2.6	%	9.6	%	12.6	%	2.5	%	9.3	%
Forest Products	12.0	%	2.9	%	9.0	%	10.6	%	2.2	%	7.9	%
Chem/Petrochem	3.0	%	13.7	%	6.5	%	3.2	%	13.6	%	6.6	%
Cement & Aggregate	7.9	%	1.3	%	5.7	%	7.6	%	1.1	%	5.4	%
Oil & Gas	5.9	%	1.3	%	4.4	%	5.4	%	1.2	%	4.0	%
Transportation	3.7	%	3.1	%	3.5	%	4.1	%	3.3	%	3.9	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Three Months Ended March 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Power Transmission	37.2	%	10.9	%	28.6	%	36.3	%	11.5	%	28.2	%
Fluid Power	13.2	%	34.3	%	20.1	%	12.7	%	36.5	%	20.5	%
General Maintenance; Hose Products & Other	20.6	%	19.1	%	20.1	%	21.1	%	18.8	%	20.4	%
Bearings, Linear & Seals	29.0	%	0.4	%	19.6	%	29.9	%	0.5	%	20.2	%
Specialty Flow Control	—	%	35.3	%	11.6	%	—	%	32.7	%	10.7	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	March 31, 2023		June 30, 2022
Revolving credit facility	$	383,592	$	410,592
Trade receivable securitization facility	188,300		188,300
Series C notes	—		40,000
Series D notes	25,000		25,000
Series E notes	25,000		25,000
Other	418		603
Total debt	$	622,310	$	689,495
Less: unamortized debt issuance costs	108		171
	$	622,202	$	689,324


	Three Months Ended March 31, 2023
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at December 31, 2022	$	(96,374)	$	(513)	$	29,501	$	(67,386)
Other comprehensive income (loss)	5,766		—		(1,741)		4,025
Amounts reclassified from accumulated other comprehensive (loss) income	—		6		(2,289)		(2,283)

Net current-period other comprehensive income (loss)	5,766		6		(4,030)		1,742
Balance at March 31, 2023	$	(90,608)	$	(507)	$	25,471	$	(65,644)


	Three Months Ended March 31, 2022
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at December 31, 2021	$	(88,817)	$	(3,559)	$	(559)	$	(92,935)
Other comprehensive income	6,783		—		13,382		20,165
Amounts reclassified from accumulated other comprehensive (loss) income	—		56		1,858		1,914
Net current-period other comprehensive income	6,783		56		15,240		22,079
Balance at March 31, 2022	$	(82,034)	$	(3,503)	$	14,681	$	(70,856)


	Nine Months Ended March 31, 2023
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at June 30, 2022	$	(90,738)	$	(1,303)	$	19,746	$	(72,295)
Other comprehensive income	130		777		7,953		8,860
Amounts reclassified from accumulated other comprehensive (loss) income	—		19		(2,228)		(2,209)

Net current-period other comprehensive income	130		796		5,725		6,651
Balance at March 31, 2023	$	(90,608)	$	(507)	$	25,471	$	(65,644)


	Nine Months Ended March 31, 2022
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at June 30, 2021	$	(80,838)	$	(3,673)	$	(8,581)	$	(93,092)
Other comprehensive (loss) income	(1,196)		—		17,504		16,308
Amounts reclassified from accumulated other comprehensive (loss) income	—		170		5,758		5,928

Net current-period other comprehensive (loss) income	(1,196)		170		23,262		22,236
Balance at March 31, 2022	$	(82,034)	$	(3,503)	$	14,681	$	(70,856)


	Index Reading
Month	MCU	PMI	IP
March 2023	79.8	46.3	99.5
February 2023	79.6	47.7	100.0
January 2023	79.5	47.4	99.4
December 2022	78.9	48.4	98.0
June 2022	80.5	53.1	100.0


	Three Months Ended March 31,				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2023		2022
Net sales	100.0	%	100.0	%	15.4	%
Gross profit	29.4	%	29.3	%	15.9	%
Selling, distribution & administrative expense	18.2	%	19.5	%	7.7	%
Operating income	11.2	%	9.8	%	32.4	%
Net income	8.6	%	7.0	%	42.3	%


Sales by Reportable Segment	Three Months Ended March 31,				Sales Increase		Amount of change due to
	Three Months Ended March 31,								Foreign Currency		Organic Change
	2023		2022				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	761.6	$	659.0	$	102.6	$	—	$	(3.2)	$	105.8
Engineered Solutions	370.4		321.6		48.8		6.8		—		42.0
Total	$	1,132.0	$	980.6	$	151.4	$	6.8	$	(3.2)	$	147.8


	Three Months Ended March 31,				SD&A Increase		Amount of change due to
	Three Months Ended March 31,								Foreign Currency		Organic Change
	2023		2022				Acquisitions		Foreign Currency		Organic Change
SD&A	$	206.2	$	191.5	$	14.7	$	1.6	$	(1.0)	$	14.1


	Nine Months Ended March 31, 2023				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2023		2022
Net sales	100.0	%	100.0	%	18.4	%
Gross profit	29.1	%	29.1	%	18.5	%
Selling, distribution & administrative expense	18.5	%	20.1	%	9.1	%
Operating income	10.6	%	9.0	%	39.3	%
Net income	7.8	%	6.5	%	42.7	%


Sales by Reportable Segment	Nine Months Ended March 31,				Sales Increase		Amount of change due to
	Nine Months Ended March 31,								Foreign Currency		Organic Change
	2023		2022				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	2,185.0	$	1,847.1	$	337.9	$	—	$	(14.2)	$	352.1
Engineered Solutions	1,069.7		902.1		167.6		12.5		—		155.1
Total	$	3,254.7	$	2,749.2	$	505.5	$	12.5	$	(14.2)	$	507.2


	Nine Months Ended March 31,
Net Cash Provided by (Used in):	2023		2022
Operating Activities	$	164,027	$	133,823
Investing Activities	(56,250)		(29,830)
Financing Activities	(111,526)		(173,366)
Exchange Rate Effect	1,402		(288)
Decrease in Cash and Cash Equivalents	$	(2,347)	$	(69,661)


							March 31,			June 30,
							2023			2022
Accounts receivable, gross							$	728,211		$	673,951
Allowance for doubtful accounts							22,573			17,522
Accounts receivable, net							$	705,638		$	656,429
Allowance for doubtful accounts, % of gross receivables							3.1		%	2.6		%

	Three Months Ended March 31,						Nine Months Ended March 31,
	2023			2022			2023			2022
(Recoveries of) Provision for losses on accounts receivable	$	(4,897)		$	1,577		$	4,676		$	2,905
Provision as a % of net sales	(0.43)		%	0.16		%	0.14		%	0.11		%


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, 2023 to January 31, 2023	0	$0.00	0	1,500,000
February 1, 2023 to February 28, 2023	0	$0.00	0	1,500,000
March 1, 2023 to March 31, 2023	0	$0.00	0	1,500,000
Total	0	$0.00	0	1,500,000


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 Technologies, Inc. and PGIM, Inc. (formerly known as Prudential Investment Management, Inc.), and certain of its affiliates, (filed as Exhibit 4.3 to the Company’s Form 10-Q for the quarter ended March 31, 2021, SEC File No. 1-2299, and incorporated here by reference).


4.4						Amendment No. 2 to Amended and Restated Note Purchase and Private Shelf Agreement, dated as of December 9, 2021, between Applied and PGIM, Inc., (filed as Exhibit 10.2 to the Company's Form 8-K filed December 14, 2021, SEC File No. 1-2299, and incorporated here by reference).

4.5						Amendment No. 3 to Amended and Restated Note Purchase and Private Shelf Agreement, dated as of October 28, 2022, between Applied and PGIM, Inc. (filed as Exhibit 10.1 to the Company's Form 8-K filed November 1, 2022, SEC File No. 1-2299, as incorporated here by reference).

4.6						Credit Agreement dated as of December 9, 2021, 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 December 14, 2021, SEC File No. 1-2299, and incorporated here by reference).

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, (filed as Exhibit 4.10 to the Company’s Form 10-Q for the quarter ended March 31, 2021, SEC File No. 1-2299, and incorporated here by reference).

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).

10.1						Consulting Agreement, dated January 27, 2023, between Applied Industrial Technologies, Inc. and Fred Bauer.

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

32						Section 1350 certifications

101						The following financial information from Applied Industrial Technologies Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Statements of Consolidated Income, (ii) the Condensed Statements of Consolidated Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Statements of Consolidated Cash Flows, (v) the Condensed Statements of Shareholders' Equity, and (vi) the Notes to Condensed Consolidated Financial Statements.

104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


		APPLIED INDUSTRIAL TECHNOLOGIES, INC.
		(Company)

Date:	April 28, 2023	By: /s/ Neil A. Schrimsher
		Neil A. Schrimsher
		President & Chief Executive Officer


Date:	April 28, 2023	By: /s/ David K. Wells
		David K. Wells
		Vice President-Chief Financial Officer & Treasurer


Date: April 28, 2023			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: April 28, 2023