Applied Industrial Technologies Inc 10-Q for FY2022 Q2

Applied Industrial Technologies Inc (AIT)

10-Q 2022-01-28 For: 2021-12-31

Added on April 10, 2026

About this 10-Q

Applied Industrial Technologies Inc filed this 10-Q on January 28, 2022, covering the quarter ended December 31, 2021 (FY2022 Q2).

Headline figures

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

Revenue: $876.87M; up 16.7% from $751.29M a year earlier
Net income: $57.03M; compared with a net loss of $5.33M a year earlier
Diluted EPS: $1.46; compared with -$0.14 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				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Net sales	$	876,874	$	751,287	$	1,768,555	$	1,499,094
Cost of sales	619,249		541,753		1,255,590		1,073,779
Gross profit	257,625		209,534		512,965		425,315
Selling, distribution and administrative expense, including depreciation	179,448		162,428		360,174		325,901
Impairment expense	—		49,528		—		49,528
Operating income (loss)	78,177		(2,422)		152,791		49,886
Interest expense, net	7,007		7,658		14,397		15,311
Other (income) expense, net	(869)		88		(1,181)		(89)
Income (loss) before income taxes	72,039		(10,168)		139,575		34,664
Income tax expense (benefit)	15,013		(4,834)		29,580		5,214
Net income (loss)	$	57,026	$	(5,334)	$	109,995	$	29,450
Net income (loss) per share - basic	$	1.48	$	(0.14)	$	2.86	$	0.76
Net income (loss) per share - diluted	$	1.46	$	(0.14)	$	2.81	$	0.75
Weighted average common shares outstanding for basic computation	38,456		38,781		38,479		38,751
Dilutive effect of potential common shares	666		—		625		414
Weighted average common shares outstanding for diluted computation	39,122		38,781		39,104		39,165


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Net income (loss) per the condensed statements of consolidated income	$	57,026	$	(5,334)	$	109,995	$	29,450

Other comprehensive income, before tax:
Foreign currency translation adjustments	(783)		14,471		(7,965)		20,025
Post-employment benefits:
Reclassification of net actuarial losses and prior service cost into other income, net and included in net periodic pension costs	75		67		150		135


Unrealized gain (loss) on cash flow hedge	4,867		(2,724)		5,463		(2,741)
Reclassification of interest from cash flow hedge into interest expense	2,585		2,822		5,170		5,512
Total other comprehensive income, before tax	6,744		14,636		2,818		22,931
Income tax expense related to items of other comprehensive income	1,856		79		2,661		865
Other comprehensive income, net of tax	4,888		14,557		157		22,066
Comprehensive income, net of tax	$	61,914	$	9,223	$	110,152	$	51,516


☒			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, 2021		June 30, 2021
ASSETS
Current assets
Cash and cash equivalents	$	154,843	$	257,745
Accounts receivable, net	520,134		516,322
Inventories	399,763		362,547
Other current assets	68,878		59,961
Total current assets	1,143,618		1,196,575
Property, less accumulated depreciation of $212,160 and $204,326	112,113		115,589
Operating lease assets, net	90,996		87,111
Identifiable intangibles, net	266,314		279,628
Goodwill	562,811		560,077
Other assets	49,857		32,827
TOTAL ASSETS	$	2,225,709	$	2,271,807

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	203,563	$	208,162
Current portion of long-term debt	40,182		43,525
Compensation and related benefits	64,689		77,657
Other current liabilities	91,421		98,356
Total current liabilities	399,855		427,700
Long-term debt	681,266		784,855
Other liabilities	122,899		126,706
TOTAL LIABILITIES	1,204,020		1,339,261
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	180,248		177,014
Retained earnings	1,391,655		1,294,413
Treasury shares—at cost (15,760 and 15,697 shares, respectively)	(467,279)		(455,789)
Accumulated other comprehensive loss	(92,935)		(93,092)
TOTAL SHAREHOLDERS’ EQUITY	1,021,689		932,546
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,225,709	$	2,271,807


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


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


	Three Months Ended December 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	$	474,412	$	282,355	$	756,767	$	417,456	$	230,358	$	647,814
Canada	66,263		—		66,263		57,809		—		57,809
Other countries	46,543		7,301		53,844		40,425		5,239		45,664
Total	$	587,218	$	289,656	$	876,874	$	515,690	$	235,597	$	751,287


	Six Months Ended December 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	$	953,576	$	567,399	$	1,520,975	$	832,698	$	459,173	$	1,291,871
Canada	140,829		—		140,829		114,705		—		114,705
Other countries	93,684		13,067		106,751		81,571		10,947		92,518
Total	$	1,188,089	$	580,466	$	1,768,555	$	1,028,974	$	470,120	$	1,499,094


	December 31, 2021		June 30, 2021		$ Change		% Change
Contract assets	$	15,837	$	15,178	$	659	4.3	%


December 31, 2021	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	354,240	$	155,405	$	198,835
Trade names	105,619		41,108		64,511
Vendor relationships	11,416		10,223		1,193
Other	2,321		546		1,775
Total Identifiable Intangibles	$	473,596	$	207,282	$	266,314


	Acquisition Cost Allocation		Weighted-Average life
Customer relationships	$	1,884	20.0
Trade names	879		15.0
Other	251		6.5
Total Identifiable Intangibles	$	3,014	17.4


	Six Months Ended
	December 31,
	2021		2020
Cash Flows from Operating Activities
Net income	$	109,995	$	29,450
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	10,863		10,561
Amortization of intangibles	16,205		18,002
Impairment expense	—		49,528
Amortization of stock options and appreciation rights	2,516		1,328
Other share-based compensation expense	3,268		2,167
Changes in operating assets and liabilities, net of acquisitions	(61,066)		52,005
Other, net	(517)		(3,685)
Net Cash provided by Operating Activities	81,264		159,356
Cash Flows from Investing Activities
Acquisition of businesses, net of cash acquired	(6,974)		(31,078)
Capital expenditures	(7,510)		(8,449)
Proceeds from property sales	442		292
Cash payments for loans on company-owned life insurance	(14,835)		—
Net Cash used in Investing Activities	(28,877)		(39,235)
Cash Flows from Financing Activities
Net borrowings under revolving credit facility	442,592		—

Long-term debt repayments	(550,371)		(72,260)
Interest rate swap settlement payments	(3,294)		(549)
Payment of debt issuance costs	(1,794)		—
Purchases of treasury shares	(10,064)		—
Dividends paid	(25,465)		(24,899)
Acquisition holdback payments	(1,070)		(1,138)
Exercise of stock options and appreciation rights	116		163
Taxes paid for shares withheld for equity awards	(4,093)		(5,571)
Net Cash used in Financing Activities	(153,443)		(104,254)
Effect of Exchange Rate Changes on Cash	(1,846)		4,357
(Decrease) increase in Cash and Cash Equivalents	(102,902)		20,224
Cash and Cash Equivalents at Beginning of Period	257,745		268,551
Cash and Cash Equivalents at End of Period	$	154,843	$	288,775


	Three Months Ended December 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	%	40.9	%	36.9	%	35.8	%	39.8	%	37.1	%
Industrial Machinery	10.5	%	29.0	%	16.6	%	9.3	%	26.3	%	14.6	%
Metals	11.1	%	7.1	%	9.8	%	10.5	%	6.6	%	9.3	%
Food	12.6	%	2.2	%	9.2	%	14.1	%	3.0	%	10.6	%
Forest Products	10.7	%	2.1	%	7.9	%	10.8	%	3.1	%	8.4	%
Chem/Petrochem	3.1	%	13.8	%	6.6	%	3.3	%	14.5	%	6.8	%
Cement & Aggregate	7.1	%	0.9	%	5.1	%	7.6	%	1.0	%	5.5	%
Oil & Gas	5.4	%	1.2	%	4.0	%	3.7	%	1.1	%	2.9	%
Transportation	4.4	%	2.8	%	3.9	%	4.9	%	4.6	%	4.8	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Six Months Ended December 31,
	2021						2020
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
General Industry	34.8	%	39.9	%	36.6	%	36.0	%	39.6	%	37.1	%
Industrial Machinery	10.4	%	29.0	%	16.5	%	9.3	%	26.5	%	14.7	%
Metals	11.1	%	7.2	%	9.8	%	10.3	%	6.8	%	9.2	%
Food	12.6	%	2.4	%	9.2	%	14.1	%	3.0	%	10.6	%
Forest Products	10.5	%	2.3	%	7.8	%	10.8	%	3.0	%	8.4	%
Chem/Petrochem	3.3	%	13.8	%	6.7	%	3.4	%	13.9	%	6.7	%
Cement & Aggregate	7.8	%	1.0	%	5.6	%	7.7	%	1.1	%	5.6	%
Oil & Gas	5.3	%	1.2	%	3.9	%	3.6	%	1.1	%	2.9	%
Transportation	4.2	%	3.2	%	3.9	%	4.8	%	5.0	%	4.8	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Three Months Ended December 31,
	2021						2020
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Power Transmission	36.6	%	10.4	%	27.9	%	37.3	%	8.0	%	28.1	%
Fluid Power	13.0	%	37.4	%	21.1	%	13.3	%	37.1	%	20.8	%
General Maintenance; Hose Products & Other	21.5	%	19.9	%	21.0	%	20.5	%	15.4	%	18.9	%
Bearings, Linear & Seals	28.9	%	0.5	%	19.5	%	28.9	%	0.5	%	20.0	%
Specialty Flow Control	—	%	31.8	%	10.5	%	—	%	39.0	%	12.2	%
Total	100	%	100	%	100	%	100	%	100	%	100	%


	December 31, 2021		June 30, 2021
Revolving credit facility	$	442,592	$	—
Term Loan	—		550,250
Trade receivable securitization facility	188,300		188,300
Series C notes	40,000		40,000
Series D notes	25,000		25,000
Series E notes	25,000		25,000
Other	725		846
Total debt	$	721,617	$	829,396
Less: unamortized debt issuance costs	169		1,016
	$	721,448	$	828,380


	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)


	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)


	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)


	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)


	Index Reading
Month	MCU	PMI	IP
December 2021	76.5	58.7	100.2
November 2021	76.6	61.1	100.5
October 2021	76.1	60.8	99.9
September 2021	75.2	61.1	98.5
June 2021	75.7	60.6	98.2


	Three Months Ended December 31,				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2021		2020
Net sales	100.0	%	100.0	%	16.7	%
Gross profit	29.4	%	27.9	%	23.0	%
Selling, distribution & administrative expense	20.5	%	21.6	%	10.5	%
Operating income (loss)	8.9	%	(0.3)	%	N/M
Net income (loss)	6.5	%	(0.7)	%	N/M


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
	2021		2020				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	587.2	$	515.7	$	71.5	$	—	$	1.9	$	69.6
Fluid Power & Flow Control	289.7		235.6		54.1		12.1		—		42.0
Total	$	876.9	$	751.3	$	125.6	$	12.1	$	1.9	$	111.6


	Three Months Ended December 31,				SD&A Increase		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
	2021		2020				Acquisitions		Foreign Currency		Organic Change
SD&A	$	179.4	$	162.4	$	17.0	$	2.7	$	0.5	$	13.8


	Six Months Ended December 31, 2021				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2021		2020
Net sales	100.0	%	100.0	%	18.0	%
Gross profit	29.0	%	28.4	%	20.6	%
Selling, distribution & administrative expense	20.4	%	21.7	%	10.5	%
Operating income	8.6	%	3.3	%	N/M
Net income	6.2	%	2.0	%	N/M


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
	2021		2020				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	1,188.1	$	1,029.0	$	159.1	$	—	$	8.0	$	151.1
Fluid Power & Flow Control	580.5		470.1		110.4		27.6		—		82.8
Total	$	1,768.6	$	1,499.1	$	269.5	$	27.6	$	8.0	$	233.9


	Six Months Ended December 31,
Net Cash Provided by (Used in):	2021		2020
Operating Activities	$	81,264	$	159,356
Investing Activities	(28,877)		(39,235)
Financing Activities	(153,443)		(104,254)
Exchange Rate Effect	(1,846)		4,357
(Decrease) Increase in Cash and Cash Equivalents	$	(102,902)	$	20,224


Accounts receivable	$	(18,495)
Inventories	$	(78,883)
Other operating assets	$	(12,594)


							December 31,			June 30,
							2021			2021
Accounts receivable, gross							$	536,847		$	532,777
Allowance for doubtful accounts							16,713			16,455
Accounts receivable, net							$	520,134		$	516,322
Allowance for doubtful accounts, % of gross receivables							3.1		%	3.1		%

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
Provision for losses on accounts receivable	$	531		$	697		$	1,328		$	5,795
Provision as a % of net sales	0.06		%	0.09		%	0.08		%	0.39		%


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, 2021 to October 31, 2021	0	$0.00	0	387,960
November 1, 2021 to November 30, 2021	0	$0.00	0	387,960
December 1, 2021 to December 31, 2021	35,000	$100.78	35,000	352,960
Total	35,000	$100.78	35,000	352,960


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 3 1 , 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						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).

4.6						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).

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, 2021 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 28, 2022	By: /s/ Neil A. Schrimsher
		Neil A. Schrimsher
		President & Chief Executive Officer


Date:	January 28, 2022	By: /s/ David K. Wells
		David K. Wells
		Vice President-Chief Financial Officer & Treasurer