Applied Industrial Technologies Inc 10-Q for FY2022 Q3

Applied Industrial Technologies Inc (AIT)

10-Q 2022-04-28 For: 2022-03-31

Added on April 10, 2026

About this 10-Q

Applied Industrial Technologies Inc filed this 10-Q on April 28, 2022, covering the quarter ended March 31, 2022 (FY2022 Q3).

Headline figures

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

Revenue: $980.66M; up 16.6% from $840.94M a year earlier
Net income: $68.31M; up 21.8% from net income of $56.06M a year earlier
Diluted EPS: $1.75; up 23.2% from $1.42 a year earlier

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

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


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


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


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Net sales	$	980,662	$	840,937	$	2,749,217	$	2,340,031
Cost of sales	693,338		593,712		1,948,928		1,667,491
Gross profit	287,324		247,225		800,289		672,540
Selling, distribution and administrative expense, including depreciation	191,481		172,758		551,655		498,659
Impairment expense	—		—		—		49,528
Operating income	95,843		74,467		248,634		124,353
Interest expense, net	5,852		7,608		20,249		22,919
Other expense (income), net	469		(1,657)		(712)		(1,746)
Income before income taxes	89,522		68,516		229,097		103,180
Income tax expense	21,216		12,453		50,796		17,667
Net income	$	68,306	$	56,063	$	178,301	$	85,513
Net income per share - basic	$	1.78	$	1.44	$	4.63	$	2.21
Net income per share - diluted	$	1.75	$	1.42	$	4.56	$	2.18
Weighted average common shares outstanding for basic computation	38,453		38,835		38,470		38,779
Dilutive effect of potential common shares	645		577		632		482
Weighted average common shares outstanding for diluted computation	39,098		39,412		39,102		39,261


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Net income per the condensed statements of consolidated income	$	68,306	$	56,063	$	178,301	$	85,513

Other comprehensive income, before tax:
Foreign currency translation adjustments	6,782		(496)		(1,183)		19,529
Post-employment benefits:
Reclassification of net actuarial losses and prior service cost into other expense (income), net and included in net periodic pension costs	74		68		224		203


Unrealized gain on cash flow hedge	17,738		8,758		23,201		6,017
Reclassification of interest from cash flow hedge into interest expense	2,462		2,992		7,632		8,504
Total other comprehensive income, before tax	27,056		11,322		29,874		34,253
Income tax expense related to items of other comprehensive income	4,977		2,829		7,638		3,694
Other comprehensive income, net of tax	22,079		8,493		22,236		30,559
Comprehensive income, net of tax	$	90,385	$	64,556	$	200,537	$	116,072


☒			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, 2022		June 30, 2021
ASSETS
Current assets
Cash and cash equivalents	$	188,084	$	257,745
Accounts receivable, net	618,079		516,322
Inventories	425,373		362,547
Other current assets	63,504		59,961
Total current assets	1,295,040		1,196,575
Property, less accumulated depreciation of $212,463 and $204,326	111,166		115,589
Operating lease assets, net	95,049		87,111
Identifiable intangibles, net	258,501		279,628
Goodwill	563,751		560,077
Other assets	60,064		32,827
TOTAL ASSETS	$	2,383,571	$	2,271,807

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	247,639	$	208,162
Current portion of long-term debt	40,166		43,525
Compensation and related benefits	81,518		77,657
Other current liabilities	95,033		98,356
Total current liabilities	464,356		427,700
Long-term debt	681,197		784,855
Other liabilities	139,624		126,706
TOTAL LIABILITIES	1,285,177		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	183,100		177,014
Retained earnings	1,446,847		1,294,413
Treasury shares—at cost (15,769 and 15,697 shares, respectively)	(470,697)		(455,789)
Accumulated other comprehensive loss	(70,856)		(93,092)
TOTAL SHAREHOLDERS’ EQUITY	1,098,394		932,546
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,383,571	$	2,271,807


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


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

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

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

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

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


Compensation expense — stock appreciation rights and options				635								635
Other share-based compensation expense				1,490								1,490
Other						48		—				48
Balance at December 31, 2020	38,831	$	10,000	$	175,016	$	1,217,582	$	(414,527)	$	(107,364)	$	880,707
Net income						56,063						56,063
Other comprehensive income										8,493		8,493
Cash dividends — $0.33 per share						(12,878)						(12,878)
Treasury shares issued for:
Exercise of stock appreciation rights and options	11			(379)				(40)				(419)
Restricted stock units	4			(147)				(1)				(148)
Compensation expense — stock appreciation rights and options				602								602
Other share-based compensation expense				2,493								2,493
Other	13			(354)		(6)		354				(6)
Balance at March 31, 2021	38,859	$	10,000	$	177,231	$	1,260,761	$	(414,214)	$	(98,871)	$	934,907


	Three Months Ended March 31,
	2022						2021
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Geographic Areas:
United States	$	541,622	$	314,626	$	856,248	$	461,945	$	262,672	$	724,617
Canada	70,493		—		70,493		66,146		—		66,146
Other countries	46,883		7,038		53,921		44,801		5,373		50,174
Total	$	658,998	$	321,664	$	980,662	$	572,892	$	268,045	$	840,937


	Nine Months Ended March 31,
	2022						2021
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Geographic Areas:
United States	$	1,495,198	$	882,025	$	2,377,223	$	1,294,643	$	721,845	$	2,016,488
Canada	211,322		—		211,322		180,851		—		180,851
Other countries	140,567		20,105		160,672		126,372		16,320		142,692
Total	$	1,847,087	$	902,130	$	2,749,217	$	1,601,866	$	738,165	$	2,340,031


	March 31, 2022		June 30, 2021		$ Change		% Change
Contract assets	$	16,400	$	15,178	$	1,222	8.1	%


March 31, 2022	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	354,754	$	161,686	$	193,068
Trade names	105,655		42,901		62,754
Vendor relationships	11,464		10,472		992
Other	2,321		634		1,687
Total Identifiable Intangibles	$	474,194	$	215,693	$	258,501


	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


	Nine Months Ended
	March 31,
	2022		2021
Cash Flows from Operating Activities
Net income	$	178,301	$	85,513
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	16,215		15,641
Amortization of intangibles	24,096		26,238
Impairment expense	—		49,528
Amortization of stock options and appreciation rights	2,897		1,930
Other share-based compensation expense	6,064		4,660
Changes in operating assets and liabilities, net of acquisitions	(106,136)		33,574
Other, net	12,386		(13,675)
Net Cash provided by Operating Activities	133,823		203,409
Cash Flows from Investing Activities
Acquisition of businesses, net of cash acquired	(6,974)		(30,023)
Capital expenditures	(11,674)		(12,177)
Proceeds from property sales	494		691
Life insurance proceeds	3,159		—
Cash payments for loans on company-owned life insurance	(14,835)		—
Net Cash used in Investing Activities	(29,830)		(41,509)
Cash Flows from Financing Activities
Net borrowings under revolving credit facility	442,592		—

Long-term debt repayments	(550,432)		(82,070)
Interest rate swap settlement payments	(4,812)		(2,122)
Payment of debt issuance costs	(1,956)		(399)
Purchases of treasury shares	(13,604)		—
Dividends paid	(38,612)		(37,772)
Acquisition holdback payments	(2,361)		(2,344)
Exercise of stock options and appreciation rights	224		163
Taxes paid for shares withheld for equity awards	(4,405)		(5,990)
Net Cash used in Financing Activities	(173,366)		(130,534)
Effect of Exchange Rate Changes on Cash	(288)		4,099
(Decrease) increase in Cash and Cash Equivalents	(69,661)		35,465
Cash and Cash Equivalents at Beginning of Period	257,745		268,551
Cash and Cash Equivalents at End of Period	$	188,084	$	304,016


	Three Months Ended March 31,
	2022						2021
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
General Industry	35.2	%	40.5	%	36.8	%	35.1	%	41.1	%	37.0	%
Industrial Machinery	10.6	%	27.9	%	16.3	%	10.1	%	26.7	%	15.4	%
Metals	11.4	%	7.7	%	10.2	%	10.9	%	6.9	%	9.6	%
Food	12.6	%	2.7	%	9.4	%	13.2	%	2.6	%	9.8	%
Forest Products	10.8	%	2.1	%	7.9	%	10.9	%	2.7	%	8.3	%
Chem/Petrochem	2.9	%	13.3	%	6.3	%	3.2	%	13.5	%	6.5	%
Cement & Aggregate	7.1	%	1.1	%	5.2	%	8.1	%	1.1	%	5.9	%
Oil & Gas	5.5	%	1.1	%	4.1	%	3.8	%	1.1	%	2.9	%
Transportation	3.9	%	3.6	%	3.8	%	4.7	%	4.3	%	4.6	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Nine Months Ended March 31,
	2022						2021
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
General Industry	34.8	%	40.1	%	36.5	%	35.6	%	40.1	%	36.9	%
Industrial Machinery	10.5	%	28.6	%	16.4	%	9.6	%	26.6	%	15.0	%
Metals	11.2	%	7.4	%	10.0	%	10.5	%	6.8	%	9.4	%
Food	12.6	%	2.5	%	9.3	%	13.8	%	2.9	%	10.3	%
Forest Products	10.6	%	2.2	%	7.9	%	10.9	%	2.9	%	8.4	%
Chem/Petrochem	3.2	%	13.6	%	6.6	%	3.4	%	13.7	%	6.6	%
Cement & Aggregate	7.6	%	1.1	%	5.4	%	7.8	%	1.1	%	5.7	%
Oil & Gas	5.4	%	1.2	%	4.0	%	3.7	%	1.1	%	2.9	%
Transportation	4.1	%	3.3	%	3.9	%	4.7	%	4.8	%	4.8	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Three Months Ended March 31,
	2022						2021
	Service Center Based Distribution		Fluid Power & Flow Control		Total		Service Center Based Distribution		Fluid Power & Flow Control		Total
Power Transmission	36.3	%	11.5	%	28.2	%	37.2	%	7.7	%	27.8	%
Fluid Power	12.7	%	36.5	%	20.5	%	13.4	%	38.3	%	21.3	%
General Maintenance: Hose Products & Other	21.1	%	18.8	%	20.4	%	20.5	%	18.8	%	20.0	%
Bearings, Linear & Seals	29.9	%	0.5	%	20.2	%	28.9	%	0.2	%	19.7	%
Specialty Flow Control	—	%	32.7	%	10.7	%	—	%	35.0	%	11.2	%
Total	100	%	100	%	100	%	100	%	100	%	100	%


	March 31, 2022		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	664		846
Total debt	$	721,556	$	829,396
Less: unamortized debt issuance costs	193		1,016
	$	721,363	$	828,380


	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)


	Three Months Ended March 31, 2021
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at December 31, 2020	$	(85,222)	$	(4,462)	$	(17,680)	$	(107,364)
Other comprehensive (loss) income	(434)		—		6,615		6,181
Amounts reclassified from accumulated other comprehensive (loss) income	—		52		2,260		2,312
Net current-period other comprehensive (loss) income	(434)		52		8,875		8,493
Balance at March 31, 2021	$	(85,656)	$	(4,410)	$	(8,805)	$	(98,871)


	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)


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

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


	Index Reading
Month	MCU	PMI	IP
March 2022	78.3	57.1	102.6
February 2022	77.7	58.6	101.7
January 2022	77.0	57.6	100.5
December 2021	76.3	58.8	100.4
June 2021	75.7	60.9	98.2


	Three Months Ended March 31,				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2022		2021
Net sales	100.0	%	100.0	%	16.6	%
Gross profit	29.3	%	29.4	%	16.2	%
Selling, distribution & administrative expense	19.5	%	20.5	%	10.8	%
Operating income	9.8	%	8.9	%	28.7	%
Net income	7.0	%	6.7	%	21.8	%


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
	2022		2021				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	659.0	$	572.9	$	86.1	$	—	$	(1.1)	$	87.2
Fluid Power & Flow Control	321.7		268.0		53.6		3.5		—		50.1
Total	$	980.7	$	840.9	$	139.7	$	3.5	$	(1.1)	$	137.3


	Three Months Ended March 31,				SD&A Increase		Amount of change due to
	Three Months Ended March 31,								Foreign Currency		Organic Change
	2022		2021				Acquisitions		Foreign Currency		Organic Change
SD&A	$	191.5	$	172.8	$	18.7	$	0.9	$	(0.4)	$	18.2


	Nine Months Ended March 31, 2022				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2022		2021
Net sales	100.0	%	100.0	%	17.5	%
Gross profit	29.1	%	28.7	%	19.0	%
Selling, distribution & administrative expense	20.1	%	21.3	%	10.6	%
Operating income	9.0	%	5.3	%	99.9	%
Net income	6.5	%	3.7	%	108.5	%


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
	2022		2021				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	1,847.1	$	1,601.9	$	245.2	$	—	$	6.9	$	238.3
Fluid Power & Flow Control	902.1		738.2		164.0		31.1		—		132.9
Total	$	2,749.2	$	2,340.1	$	409.2	$	31.1	$	6.9	$	371.2


	Nine Months Ended March 31,
Net Cash Provided by (Used in):	2022		2021
Operating Activities	$	133,823	$	203,409
Investing Activities	(29,830)		(41,509)
Financing Activities	(173,366)		(130,534)
Exchange Rate Effect	(288)		4,099
(Decrease) Increase in Cash and Cash Equivalents	$	(69,661)	$	35,465


Accounts receivable	$	(50,537)
Inventories	$	(106,225)
Accounts payable	$	20,556


	March 31, 2022		March 31, 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	664		846
Total debt	$	721,556	$	829,396
Less: unamortized debt issuance costs	193		1,016
	$	721,363	$	828,380


							March 31,			June 30,
							2022			2021
Accounts receivable, gross							$	636,177		$	532,777
Allowance for doubtful accounts							18,098			16,455
Accounts receivable, net							$	618,079		$	516,322
Allowance for doubtful accounts, % of gross receivables							2.8		%	3.1		%

	Three Months Ended March 31,						Nine Months Ended March 31,
	2022			2021			2022			2021
Provision for losses on accounts receivable	$	1,577		$	(200)		$	2,905		$	5,595
Provision as a % of net sales	0.16		%	(0.02)		%	0.11		%	0.24		%


Period	(a) Total Number of Shares (1)	(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 (2)
January 1, 2022 to January 31, 2022	0	$0.00	0	352,960
February 1, 2022 to February 28, 2022	12	$98.77	0	352,960
March 1, 2022 to March 31, 2022	35,000	$101.15	35,000	317,960
Total	35,012	$101.15	35,000	317,960


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


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


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