Applied Industrial Technologies Inc 10-Q for FY2024 Q2

Applied Industrial Technologies Inc (AIT)

10-Q 2024-01-26 For: 2023-12-31

Added on April 10, 2026

About this 10-Q

Applied Industrial Technologies Inc filed this 10-Q on January 26, 2024, covering the quarter ended December 31, 2023 (FY2024 Q2).

Headline figures

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

Revenue: $1.08B; up 1.6% from $1.06B a year earlier
Net income: $91.23M; up 13.4% from net income of $80.46M a year earlier
Diluted EPS: $2.32; up 13.2% from $2.05 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,
	2023		2022		2023		2022
Net sales	$	1,077,153	$	1,060,280	$	2,172,341	$	2,122,685
Cost of sales	760,063		751,775		1,530,169		1,507,397
Gross profit	317,090		308,505		642,172		615,288
Selling, distribution and administrative expense, including depreciation	202,496		195,612		406,898		395,863

Operating income	114,594		112,893		235,274		219,425
Interest expense, net	1,917		6,185		3,237		12,665
Other (income) expense, net	(2,924)		758		(2,493)		1,766
Income before income taxes	115,601		105,950		234,530		204,994
Income tax expense	24,373		25,493		49,476		47,657
Net income	$	91,228	$	80,457	$	185,054	$	157,337
Net income per share - basic	$	2.35	$	2.09	$	4.78	$	4.08
Net income per share - diluted	$	2.32	$	2.05	$	4.71	$	4.02
Weighted average common shares outstanding for basic computation	38,744		38,579		38,722		38,552
Dilutive effect of potential common shares	558		629		585		610
Weighted average common shares outstanding for diluted computation	39,302		39,208		39,307		39,162


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2023		2022		2023		2022
Net income per the condensed statements of consolidated income	$	91,228	$	80,457	$	185,054	$	157,337

Other comprehensive income, before tax:
Foreign currency translation adjustments	9,697		5,929		3,427		(5,508)
Post-employment benefits:
Reclassification of net actuarial losses and prior service cost into other (income) expense, net and included in net periodic pension costs	(30)		10		(60)		18
Termination of pension plan	—		1,031		—		1,031

Unrealized (loss) gain on cash flow hedge	(4,536)		548		(902)		12,858
Reclassification of interest from cash flow hedge into interest expense, net	(4,715)		(715)		(9,353)		81
Total other comprehensive income (loss), before tax	416		6,803		(6,888)		8,480
Income tax (benefit) expense related to items of other comprehensive income	(2,308)		259		(2,538)		3,571
Other comprehensive income (loss), net of tax	2,724		6,544		(4,350)		4,909
Comprehensive income, net of tax	$	93,952	$	87,001	$	180,704	$	162,246


☒			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, 2023		June 30, 2023
ASSETS
Current assets
Cash and cash equivalents	$	412,855	$	344,036
Accounts receivable, net	659,196		708,395
Inventories	520,155		501,184
Other current assets	89,786		93,192
Total current assets	1,681,992		1,646,807
Property, less accumulated depreciation of $238,935 and $229,041	113,706		115,041
Operating lease assets, net	104,517		100,677
Identifiable intangibles, net	227,831		235,549
Goodwill	589,356		578,418
Other assets	65,363		66,840
TOTAL ASSETS	$	2,782,765	$	2,743,332

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	253,739	$	301,685
Current portion of long-term debt	25,159		25,170
Compensation and related benefits	72,929		98,740
Other current liabilities	97,299		114,749
Total current liabilities	449,126		540,344
Long-term debt	571,854		596,926
Other liabilities	153,757		147,625
TOTAL LIABILITIES	1,174,737		1,284,895
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	188,636		188,646
Retained earnings	1,964,090		1,792,632
Treasury shares—at cost (15,508 and 15,556 shares, respectively)	(495,052)		(477,545)
Accumulated other comprehensive loss	(59,646)		(55,296)
TOTAL SHAREHOLDERS’ EQUITY	1,608,028		1,458,437
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,782,765	$	2,743,332


For the Period Ended December 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, 2023	38,657	$	10,000	$	188,646	$	1,792,632	$	(477,545)	$	(55,296)	$	1,458,437
Net income						93,826						93,826
Other comprehensive loss										(7,074)		(7,074)

Cash dividends — $0.35 per share						(23)						(23)

Treasury shares issued for:
Exercise of stock appreciation rights and options	32			(1,681)				(1,912)				(3,593)
Performance share awards	54			(3,072)				(3,487)				(6,559)
Restricted stock units	13			(726)				(910)				(1,636)
Compensation expense — stock appreciation rights and options				844								844
Other share-based compensation expense				1,976								1,976
Other	(1)			(1)		(3)		(78)				(82)
Balance at September 30, 2023	38,755	$	10,000	$	185,986	$	1,886,432	$	(483,932)	$	(62,370)	$	1,536,116
Net income						91,228						91,228
Other comprehensive income										2,724		2,724

Cash dividends — $0.35 per share						(13,607)						(13,607)
Purchases of common stock for treasury	(63)							(10,677)				(10,677)
Treasury shares issued for:
Exercise of stock appreciation rights and options	11			(391)				(335)				(726)

Restricted stock units	1			(86)				(108)				(194)
Compensation expense — stock appreciation rights and options				866								866
Other share-based compensation expense				2,261								2,261
Other	1					37						37
Balance at December 31, 2023	38,705	$	10,000	$	188,636	$	1,964,090	$	(495,052)	$	(59,646)	$	1,608,028


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


	Three Months Ended December 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Geographic Areas:
United States	$	602,483	$	342,169	$	944,652	$	581,452	$	347,745	$	929,197
Canada	77,170		—		77,170		74,702		—		74,702
Other countries	49,620		5,711		55,331		49,238		7,143		56,381
Total	$	729,273	$	347,880	$	1,077,153	$	705,392	$	354,888	$	1,060,280


	Six Months Ended December 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Geographic Areas:
United States	$	1,219,745	$	684,265	$	1,904,010	$	1,166,332	$	684,354	$	1,850,686
Canada	152,470		—		152,470		154,472		—		154,472
Other countries	103,591		12,270		115,861		102,576		14,951		117,527
Total	$	1,475,806	$	696,535	$	2,172,341	$	1,423,380	$	699,305	$	2,122,685


	December 31, 2023		June 30, 2023		$ Change		% Change
Contract assets	$	12,360	$	17,911	$	(5,551)	(31.0)	%


December 31, 2023	Amount		Accumulated Amortization		Net Book Value
Finite-Lived Identifiable Intangibles:
Customer relationships	$	372,289	$	200,123	$	172,166
Trade names	85,584		31,942		53,642
Vendor relationships	425		425		—
Other	3,446		1,423		2,023
Total Identifiable Intangibles	$	461,744	$	233,913	$	227,831


	Acquisition Cost Allocation		Weighted-Average life
Customer relationships	$	7,541	20.0
Trade names	530		3.0
Other	100		5.0
Total Identifiable Intangibles	$	8,171	18.7


	Six Months Ended
	December 31,
	2023		2022
Cash Flows from Operating Activities
Net income	$	185,054	$	157,337
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property	11,765		11,033
Amortization of intangibles	14,650		15,519
Provision for losses on accounts receivable	1,026		9,573
Amortization of stock appreciation rights and options	1,710		1,871
Other share-based compensation expense	4,237		4,001
Changes in operating assets and liabilities, net of acquisitions	(47,855)		(111,542)
Other, net	(2,620)		1,031
Net Cash provided by Operating Activities	167,967		88,823
Cash Flows from Investing Activities
Acquisition of businesses, net of cash acquired	(21,440)		(25,516)
Capital expenditures	(9,863)		(12,817)
Proceeds from property sales	471		128

Net Cash used in Investing Activities	(30,832)		(38,205)
Cash Flows from Financing Activities


Long-term debt repayments	(25,125)		(40,123)
Interest rate swap settlement receipts	7,194		2,684

Purchases of treasury shares	(10,677)		(716)
Dividends paid	(27,155)		(26,259)
Acquisition holdback payments	(681)		(1,510)
Exercise of stock appreciation rights and options	127		127
Taxes paid for shares withheld for equity awards	(12,914)		(3,340)
Net Cash used in Financing Activities	(69,231)		(69,137)
Effect of Exchange Rate Changes on Cash	915		(417)
Increase (Decrease) in Cash and Cash Equivalents	68,819		(18,936)
Cash and Cash Equivalents at Beginning of Period	344,036		184,474
Cash and Cash Equivalents at End of Period	$	412,855	$	165,538


	Three Months Ended December 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
General Industry	34.5	%	39.6	%	36.0	%	33.4	%	42.3	%	36.3	%
Industrial Machinery	9.0	%	25.0	%	14.2	%	10.3	%	27.4	%	16.0	%
Food	13.7	%	2.5	%	10.1	%	13.1	%	2.2	%	9.4	%
Metals	10.9	%	7.6	%	9.9	%	10.6	%	7.4	%	9.5	%
Forest Products	12.0	%	2.7	%	9.0	%	11.9	%	2.4	%	8.8	%
Chem/Petrochem	2.7	%	15.7	%	6.9	%	3.0	%	12.9	%	6.4	%
Cement & Aggregate	8.2	%	1.4	%	6.0	%	7.9	%	1.3	%	5.7	%
Oil & Gas	5.4	%	1.7	%	4.2	%	6.3	%	1.2	%	4.6	%
Transportation	3.6	%	3.8	%	3.7	%	3.5	%	2.9	%	3.3	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Six Months Ended December 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
General Industry	34.7	%	38.5	%	35.8	%	33.7	%	41.0	%	36.1	%
Industrial Machinery	8.9	%	25.1	%	14.1	%	10.2	%	27.3	%	15.8	%
Food	13.7	%	2.7	%	10.2	%	12.9	%	2.5	%	9.5	%
Metals	10.8	%	7.9	%	9.9	%	10.7	%	7.6	%	9.7	%
Forest Products	12.2	%	3.3	%	9.4	%	11.9	%	2.5	%	8.8	%
Chem/Petrochem	2.7	%	15.9	%	6.9	%	2.9	%	13.4	%	6.3	%
Cement & Aggregate	7.6	%	1.3	%	5.6	%	7.8	%	1.4	%	5.7	%
Oil & Gas	5.7	%	1.6	%	4.4	%	6.3	%	1.3	%	4.7	%
Transportation	3.7	%	3.7	%	3.7	%	3.6	%	3.0	%	3.4	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	Three Months Ended December 31,
	2023						2022
	Service Center Based Distribution		Engineered Solutions		Total		Service Center Based Distribution		Engineered Solutions		Total
Power Transmission	38.4	%	12.4	%	30.0	%	37.5	%	10.1	%	28.4	%
General Maintenance; Hose Products & Other	22.7	%	17.9	%	21.1	%	21.0	%	23.6	%	21.8	%
Fluid Power	13.9	%	35.8	%	21.0	%	13.3	%	34.8	%	20.5	%
Bearings, Linear & Seals	25.0	%	0.4	%	17.1	%	28.2	%	0.5	%	18.9	%
Specialty Flow Control	—	%	33.5	%	10.8	%	—	%	31.0	%	10.4	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	December 31, 2023		June 30, 2023
Revolving credit facility	$	383,592	383,592
Trade receivable securitization facility	188,300		188,300
Series D notes	—		25,000
Series E notes	25,000		25,000
Other	231		356
Total debt	$	597,123	$	622,248
Less: unamortized debt issuance costs	110		152
	$	597,013	$	622,096


	Three Months Ended December 31, 2023
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at September 30, 2023	$	(89,391)	$	(221)	$	27,242	$	(62,370)
Other comprehensive income (loss)	9,724		—		(3,411)		6,313
Amounts reclassified from accumulated other comprehensive (loss) income	—		(23)		(3,566)		(3,589)

Net current-period other comprehensive income (loss)	9,724		(23)		(6,977)		2,724
Balance at December 31, 2023	$	(79,667)	$	(244)	$	20,265	$	(59,646)


	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)


	Six Months Ended December 31, 2023
	Foreign currency translation adjustment		Post-employment benefits		Cash flow hedge		Total Accumulated other comprehensive (loss) income
Balance at June 30, 2023	$	(83,099)	$	(197)	$	28,000	$	(55,296)
Other comprehensive income (loss)	3,432		—		(667)		2,765
Amounts reclassified from accumulated other comprehensive (loss) income	—		(47)		(7,068)		(7,115)

Net current-period other comprehensive income (loss)	3,432		(47)		(7,735)		(4,350)
Balance at December 31, 2023	$	(79,667)	$	(244)	$	20,265	$	(59,646)


	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)


	Index Reading
Month	MCU	PMI	IP
December 2023	78.6	47.4	99.1
November 2023	78.6	46.7	99.0
October 2023	78.7	46.7	98.8
September 2023	79.5	49.0	99.6
June 2023	78.9	46.0	99.1


	Three Months Ended December 31,				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2023		2022
Net sales	100.0	%	100.0	%	1.6	%
Gross profit	29.4	%	29.1	%	2.8	%
Selling, distribution & administrative expense	18.8	%	18.4	%	3.5	%
Operating income	10.6	%	10.6	%	1.5	%
Net income	8.5	%	7.6	%	13.4	%


Sales by Reportable Segment	Three Months Ended December 31,				Sales Increase (Decrease)		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
	2023		2022				Acquisitions		Foreign Currency		Organic Change
Service Center Based Distribution	$	729.3	$	705.4	$	23.9	$	11.0	$	3.0	$	9.9
Engineered Solutions	347.9		354.9		(7.0)		3.4		—		(10.4)
Total	$	1,077.2	$	1,060.3	$	16.9	$	14.4	$	3.0	$	(0.5)


	Three Months Ended December 31,				SD&A Increase		Amount of change due to
	Three Months Ended December 31,								Foreign Currency		Organic Change
	2023		2022				Acquisitions		Foreign Currency		Organic Change
SD&A	$	202.5	$	195.6	$	6.9	$	4.8	$	0.3	$	1.8


	Six Months Ended December 31,				Change in $'s Versus Prior Period - % Increase
	As a Percent of Net Sales
	2023		2022
Net sales	100.0	%	100.0	%	2.3	%
Gross profit	29.6	%	29.0	%	4.4	%
Selling, distribution & administrative expense	18.7	%	18.6	%	2.8	%
Operating income	10.8	%	10.3	%	7.2	%
Net income	8.5	%	7.4	%	17.6	%


	Six Months Ended December 31,
Net Cash Provided by (Used in):	2023		2022
Operating Activities	$	167,967	$	88,823
Investing Activities	(30,832)		(38,205)
Financing Activities	(69,231)		(69,137)
Exchange Rate Effect	915		(417)
Increase (Decrease) in Cash and Cash Equivalents	$	68,819	$	(18,936)


							December 31,			June 30,
							2023			2023
Accounts receivable, gross							$	674,756		$	730,729
Allowance for doubtful accounts							15,560			22,334
Accounts receivable, net							$	659,196		$	708,395
Allowance for doubtful accounts, % of gross receivables							2.3		%	3.1		%

	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Provision for losses on accounts receivable	$	159		$	5,579		$	1,026		$	9,573
Provision as a % of net sales	0.01		%	0.53		%	0.05		%	0.45		%


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, 2023 to October 31, 2023	0	$0.00	0	1,500,000
November 1, 2023 to November 30, 2023	0	$0.00	0	1,500,000
December 1, 2023 to December 31, 2023	62,947	$169.61	62,947	1,437,053
Total	62,947	$169.61	62,947	1,437,053


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						First Amendment Agreement, dated as of May 12, 2023, among Applied Industrial Technologies, Inc., KeyBank National Association as Agent, and the Lenders set forth therein (filed as Exhibit 4.7 to Applied’s Form 10-K for the fiscal year ended June 30, 2023, SEC File No. 1-2299, and incorporated here by reference).

4.8						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).

4.9						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).

4.10						Amendment No. 2 to Receivables Financing Agreement and Reaffirmation of Performance Guaranty, dated as of May 12, 2023, by and among AIT Receivables, LLC, Applied Industrial Technologies, Inc., PNC Bank, National Association, Regions Bank, and PNC Capital Markets LLC (filed as Exhibit 4.10 to Applied’s Form 10-K for the fiscal year ended June 30, 2023, SEC File No. 1-2299, and incorporated here by reference).

4.11						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).

4.12						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).

4.13						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).

4.14						Amendment No. 3 to Receivables Financing Agreement and Reaffirmation of Performance Guaranty dated as of August 6, 2023 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 Applied’s Form 8-K filed August 9, 2023, SEC File No. 1-2299, and incorporated here by reference).


4.15						Amendment No. 3 to Purchase and Sale Agreement dated as of August 4, 2023 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 Applied’s Form 8-K filed August 9, 2023, SEC File No. 1-2299, and incorporated here by reference).

10.1						Applied Industrial Technologies, Inc. 2023 Long-Term Performance Plan, as approved by the Shareholders on October 24, 2023 (filed as Exhibit 10.1 to Applied's Form 10-Q for the quarter ended Septemb er 30, 2023, 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, 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:	January 26, 2024	By: /s/ Neil A. Schrimsher
		Neil A. Schrimsher
		President & Chief Executive Officer


Date:	January 26, 2024	By: /s/ David K. Wells
		David K. Wells
		Vice President-Chief Financial Officer, Treasurer, & Principal Accounting Officer


Date: January 26, 2024			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, & Principal Accounting Officer

Date: January 26, 2024