Applied Industrial Technologies Inc 10-Q for FY2023 Q2

Applied Industrial Technologies Inc (AIT)

10-Q 2023-01-27 For: 2022-12-31

Added on April 10, 2026

About this 10-Q

Applied Industrial Technologies Inc filed this 10-Q on January 27, 2023, covering the quarter ended December 31, 2022 (FY2023 Q2).

Headline figures

Quarter ended December 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.06B; up 20.9% from $876.87M a year earlier
Net income: $80.46M; up 41.1% from net income of $57.03M a year earlier
Diluted EPS: $2.05; up 40.4% from $1.46 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				Six Months Ended
	December 31,				December 31,
	2022		2021		2022		2021
Net sales	$	1,060,280	$	876,874	$	2,122,685	$	1,768,555
Cost of sales	751,775		619,249		1,507,397		1,255,590
Gross profit	308,505		257,625		615,288		512,965
Selling, distribution and administrative expense, including depreciation	195,612		179,448		395,863		360,174

Operating income	112,893		78,177		219,425		152,791
Interest expense, net	6,185		7,007		12,665		14,397
Other expense (income), net	758		(869)		1,766		(1,181)
Income before income taxes	105,950		72,039		204,994		139,575
Income tax expense	25,493		15,013		47,657		29,580
Net income	$	80,457	$	57,026	$	157,337	$	109,995
Net income per share - basic	$	2.09	$	1.48	$	4.08	$	2.86
Net income per share - diluted	$	2.05	$	1.46	$	4.02	$	2.81
Weighted average common shares outstanding for basic computation	38,579		38,456		38,552		38,479
Dilutive effect of potential common shares	629		666		610		625
Weighted average common shares outstanding for diluted computation	39,208		39,122		39,162		39,104


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2022		2021		2022		2021
Net income per the condensed statements of consolidated income	$	80,457	$	57,026	$	157,337	$	109,995

Other comprehensive income, before tax:
Foreign currency translation adjustments	5,929		(783)		(5,508)		(7,965)
Post-employment benefits:
Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs	10		75		18		150
Termination of pension plan	1,031		—		1,031		—

Unrealized gain on cash flow hedge	548		4,867		12,858		5,463
Reclassification of interest from cash flow hedge into interest expense, net	(715)		2,585		81		5,170
Total other comprehensive income, before tax	6,803		6,744		8,480		2,818
Income tax expense related to items of other comprehensive income	259		1,856		3,571		2,661
Other comprehensive income, net of tax	6,544		4,888		4,909		157
Comprehensive income, net of tax	$	87,001	$	61,914	$	162,246	$	110,152


☒			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, 2022		June 30, 2022
ASSETS
Current assets
Cash and cash equivalents	$	165,538	$	184,474
Accounts receivable, net	654,510		656,429
Inventories	523,021		449,821
Other current assets	79,183		68,805
Total current assets	1,422,252		1,359,529
Property, less accumulated depreciation of $222,086 and $215,015	112,790		111,896
Operating lease assets, net	105,797		108,052
Identifiable intangibles, net	246,739		250,590
Goodwill	572,319		563,205
Other assets	63,007		59,316
TOTAL ASSETS	$	2,522,904	$	2,452,588

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	250,407	$	259,463
Current portion of long-term debt	25,189		40,174
Compensation and related benefits	73,873		91,166
Other current liabilities	97,736		108,824
Total current liabilities	447,205		499,627
Long-term debt	624,052		649,150
Other liabilities	155,771		154,456
TOTAL LIABILITIES	1,227,028		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	184,795		183,822
Retained earnings	1,643,874		1,499,676
Treasury shares—at cost (15,614 and 15,714 shares, respectively)	(475,407)		(471,848)
Accumulated other comprehensive loss	(67,386)		(72,295)
TOTAL SHAREHOLDERS’ EQUITY	1,295,876		1,149,355
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,522,904	$	2,452,588


For the Period Ended December 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, 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


For the Period Ended December 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, 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


	Three Months Ended December 31,
	2022						2021
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Geographic Areas:
United States	$	581,452	$	347,745	$	929,197	$	474,412	$	282,355	$	756,767
Canada	74,702		—		74,702		66,263		—		66,263
Other countries	49,238		7,143		56,381		46,543		7,301		53,844
Total	$	705,392	$	354,888	$	1,060,280	$	587,218	$	289,656	$	876,874


	Six Months Ended December 31,
	2022						2021
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Geographic Areas:
United States	$	1,166,332	$	684,354	$	1,850,686	$	953,576	$	567,399	$	1,520,975
Canada	154,472		—		154,472		140,829		—		140,829
Other countries	102,576		14,951		117,527		93,684		13,067		106,751
Total	$	1,423,380	$	699,305	$	2,122,685	$	1,188,089	$	580,466	$	1,768,555


	December 31, 2022		June 30, 2022		$ Change		% Change
Contract assets	$	15,586	$	18,050	$	(2,464)	(13.7)	%


December 31, 2022	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	361,770	$	177,401	$	184,369
Trade names	108,033		48,211		59,822
Vendor relationships	9,861		9,416		445
Other	3,021		918		2,103
Total Identifiable Intangibles	$	482,685	$	235,946	$	246,739


	Acquisition Cost Allocation		Weighted-Average life
Customer relationships	$	8,700	20.0
Trade names	2,360		15.0
Other	700		6.7
Total Identifiable Intangibles	$	11,760	18.2


	Six Months Ended
	December 31,
	2022		2021
Cash Flows from Operating Activities
Net income	$	157,337	$	109,995
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	11,033		10,863
Amortization of intangibles	15,519		16,205
Provision for losses on accounts receivable	9,573		1,328
Amortization of stock appreciation rights and options	1,871		2,516
Other share-based compensation expense	4,001		3,268
Changes in operating assets and liabilities, net of acquisitions	(111,542)		(61,066)
Other, net	1,031		(1,845)
Net Cash provided by Operating Activities	88,823		81,264
Cash Flows from Investing Activities
Acquisition of businesses, net of cash acquired	(25,516)		(6,974)
Capital expenditures	(12,817)		(7,510)
Proceeds from property sales	128		442
Cash payments for loans on company-owned life insurance	—		(14,835)
Net Cash used in Investing Activities	(38,205)		(28,877)
Cash Flows from Financing Activities
Net borrowings under revolving credit facility	—		442,592

Long-term debt repayments	(40,123)		(550,371)
Interest rate swap settlement receipts (payments)	2,684		(3,294)
Payment of debt issuance costs	—		(1,794)
Purchases of treasury shares	(716)		(10,064)
Dividends paid	(26,259)		(25,465)
Acquisition holdback payments	(1,510)		(1,070)
Exercise of stock appreciation rights and options	127		116
Taxes paid for shares withheld for equity awards	(3,340)		(4,093)
Net Cash used in Financing Activities	(69,137)		(153,443)
Effect of Exchange Rate Changes on Cash	(417)		(1,846)
Decrease in Cash and Cash Equivalents	(18,936)		(102,902)
Cash and Cash Equivalents at Beginning of Period	184,474		257,745
Cash and Cash Equivalents at End of Period	$	165,538	$	154,843


	Three Months Ended December 31,
	2022						2021
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
General Industry	33.4	%	42.3	%	36.3	%	35.1	%	40.9	%	36.9	%
Industrial Machinery	10.3	%	27.4	%	16.0	%	10.5	%	29.0	%	16.6	%
Metals	10.6	%	7.4	%	9.5	%	11.1	%	7.1	%	9.8	%
Food	13.1	%	2.2	%	9.4	%	12.6	%	2.2	%	9.2	%
Forest Products	11.9	%	2.4	%	8.8	%	10.7	%	2.1	%	7.9	%
Chem/Petrochem	3.0	%	12.9	%	6.4	%	3.1	%	13.8	%	6.6	%
Cement & Aggregate	7.9	%	1.3	%	5.7	%	7.1	%	0.9	%	5.1	%
Oil & Gas	6.3	%	1.2	%	4.6	%	5.4	%	1.2	%	4.0	%
Transportation	3.5	%	2.9	%	3.3	%	4.4	%	2.8	%	3.9	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Six Months Ended December 31,
	2022						2021
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
General Industry	33.7	%	41.0	%	36.1	%	34.8	%	39.9	%	36.6	%
Industrial Machinery	10.2	%	27.3	%	15.8	%	10.4	%	29.0	%	16.5	%
Metals	10.7	%	7.6	%	9.7	%	11.1	%	7.2	%	9.8	%
Food	12.9	%	2.5	%	9.5	%	12.6	%	2.4	%	9.2	%
Forest Products	11.9	%	2.5	%	8.8	%	10.5	%	2.3	%	7.8	%
Chem/Petrochem	2.9	%	13.4	%	6.3	%	3.3	%	13.8	%	6.7	%
Cement & Aggregate	7.8	%	1.4	%	5.7	%	7.8	%	1.0	%	5.6	%
Oil & Gas	6.3	%	1.3	%	4.7	%	5.3	%	1.2	%	3.9	%
Transportation	3.6	%	3.0	%	3.4	%	4.2	%	3.2	%	3.9	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Three Months Ended December 31,
	2022						2021
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Power Transmission	37.5	%	10.1	%	28.4	%	36.6	%	10.4	%	27.9	%
General Maintenance: Hose Products & Other	21.0	%	23.6	%	21.8	%	21.5	%	19.9	%	21.0	%
Fluid Power	13.3	%	34.8	%	20.5	%	13.0	%	37.4	%	21.1	%
Bearings, Linear & Seals	28.2	%	0.5	%	18.9	%	28.9	%	0.5	%	19.5	%
Specialty Flow Control	—	%	31.0	%	10.4	%	—	%	31.8	%	10.5	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	December 31, 2022		June 30, 2022
Revolving credit facility	$	410,592	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	480		603
Total debt	$	649,372	$	689,495
Less: unamortized debt issuance costs	131		171
	$	649,241	$	689,324


	Three Months Ended December 31, 2022
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at September 30, 2022	$	(102,259)	$	(1,297)	$	29,626	$	(73,930)
Other comprehensive income	5,885		777		414		7,076
Amounts reclassified from accumulated other comprehensive (loss) income	—		7		(539)		(532)

Net current-period other comprehensive income (loss)	5,885		784		(125)		6,544
Balance at December 31, 2022	$	(96,374)	$	(513)	$	29,501	$	(67,386)


	Three Months Ended December 31, 2021
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at September 30, 2021	$	(88,026)	$	(3,616)	$	(6,181)	$	(97,823)
Other comprehensive (loss) income	(791)		—		3,672		2,881
Amounts reclassified from accumulated other comprehensive (loss) income	—		57		1,950		2,007
Net current-period other comprehensive (loss) income	(791)		57		5,622		4,888
Balance at December 31, 2021	$	(88,817)	$	(3,559)	$	(559)	$	(92,935)


	Six Months Ended December 31, 2022
	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 (loss) income	(5,636)		777		9,694		4,835
Amounts reclassified from accumulated other comprehensive (loss) income	—		13		61		74

Net current-period other comprehensive (loss) income	(5,636)		790		9,755		4,909
Balance at December 31, 2022	$	(96,374)	$	(513)	$	29,501	$	(67,386)


	Six Months Ended December 31, 2021
	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	(7,979)		—		4,122		(3,857)
Amounts reclassified from accumulated other comprehensive (loss) income	—		114		3,900		4,014

Net current-period other comprehensive (loss) income	(7,979)		114		8,022		157
Balance at December 31, 2021	$	(88,817)	$	(3,559)	$	(559)	$	(92,935)


	Index Reading
Month	MCU	PMI	IP
December 2022	78.8	48.4	99.8
November 2022	79.4	49.0	101.1
October 2022	80.0	50.2	102.2
September 2022	80.1	50.9	101.9
June 2022	79.7	53.0	101.1


	Three Months Ended December 31,				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2022		2021
Net sales	100.0	%	100.0	%	20.9	%
Gross profit	29.1	%	29.4	%	19.7	%
Selling, distribution & administrative expense	18.4	%	20.5	%	9.0	%
Operating income	10.6	%	8.9	%	44.4	%
Net income	7.6	%	6.5	%	41.1	%


Sales by Reportable Segment	Three Months Ended December 31,				Sales Increase		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
	2022		2021				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	705.4	$	587.2	$	118.2	$	—	$	(6.0)	$	124.2
Engineered Solutions	354.9		289.7		65.2		4.0		—		61.2
Total	$	1,060.3	$	876.9	$	183.4	$	4.0	$	(6.0)	$	185.4


	Three Months Ended December 31,				SD&A Increase		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
	2022		2021				Acquisitions		Foreign Currency		Organic Change
SD&A	$	195.6	$	179.4	$	16.2	$	1.6	$	(1.5)	$	16.1


	Six Months Ended December 31, 2022				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2022		2021
Net sales	100.0	%	100.0	%	20.0	%
Gross profit	29.0	%	29.0	%	19.9	%
Selling, distribution & administrative expense	18.6	%	20.4	%	9.9	%
Operating income	10.3	%	8.6	%	43.6	%
Net income	7.4	%	6.2	%	43.0	%


Sales by Reportable Segment	Six Months Ended December 31,				Sales Increase		Amount of change due to
	Six Months Ended December 31,								Foreign Currency		Organic Change
	2022		2021				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	1,423.4	$	1,188.1	$	235.3	$	—	$	(10.8)	$	246.1
Engineered Solutions	699.3		580.5		118.8		5.7		—		113.1
Total	$	2,122.7	$	1,768.6	$	354.1	$	5.7	$	(10.8)	$	359.2


	Six Months Ended December 31,
Net Cash Provided by (Used in):	2022		2021
Operating Activities	$	88,823	$	81,264
Investing Activities	(38,205)		(28,877)
Financing Activities	(69,137)		(153,443)
Exchange Rate Effect	(417)		(1,846)
Decrease in Cash and Cash Equivalents	$	(18,936)	$	(102,902)


							December 31,			June 30,
							2022			2022
Accounts receivable, gross							$	680,020		$	673,951
Allowance for doubtful accounts							25,510			17,522
Accounts receivable, net							$	654,510		$	656,429
Allowance for doubtful accounts, % of gross receivables							3.8		%	2.6		%

	Three Months Ended December 31,						Six Months Ended December 31,
	2022			2021			2022			2021
Provision for losses on accounts receivable	$	5,579		$	531		$	9,573		$	1,328
Provision as a % of net sales	0.53		%	0.06		%	0.45		%	0.08		%


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, 2022 to October 31, 2022	0	$0.00	0	1,500,000
November 1, 2022 to November 30, 2022	0	$0.00	0	1,500,000
December 1, 2022 to December 31, 2022	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, Inc., 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						The following financial information from Applied Industrial Technologies Inc.'s Quarterly Report on Form 10-Q for the quarter ended December 31, 2022 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:	January 27, 2023	By: /s/ Neil A. Schrimsher
		Neil A. Schrimsher
		President & Chief Executive Officer


Date:	January 27, 2023	By: /s/ David K. Wells
		David K. Wells
		Vice President-Chief Financial Officer & Treasurer


Date: January 27, 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: January 27, 2023