Applied Industrial Technologies Reports Fiscal 2024 Fourth Quarter and Full-Year Results; Issues Guidance for Fiscal 2025
-
Fourth Quarter
Net Sales of$1.2 Billion Up 0.2% YoY; Down 2.0% on an Organic Daily Basis -
Fourth Quarter Net Income of
$103.5 Million , or$2.64 Per Share Up 12.6% YoY -
Fourth Quarter EBITDA of
$153.5 Million Up 9.6% YoY -
Full-Year
Net Sales of$4.5 Billion Up 1.5% YoY; Up 0.4% on an Organic Daily Basis -
Full-Year
Net Income of$385.8 Million , or$9.83 Per Share -
Full-Year Adjusted Net Income of
$382.7 Million , or$9.75 Per Share Up 11.4% YoY -
Full-Year EBITDA of
$553.3 Million Up 5.5% YoY -
Establishes Fiscal 2025 Guidance Including Total Sales -2.5% to +2.5%, EPS of
$9.20 to$9.95 - Announces Two Bolt-On Acquisitions in Service Center and Fluid Power Operations
Net sales for the quarter increased 0.2% to
For the twelve months ended
“Lastly, we are increasingly confident in the opportunity developing beyond our intermediate-term annual objectives of
Acquisition of Total Machine Solutions and
The Company today also announced the acquisitions of Total Machine Solutions (TMS) and
Fiscal 2025 Guidance and Outlook
Today the Company is introducing fiscal 2025 EPS guidance in the range of
Conference Call Information
The Company will host a conference call at
About Applied®
This press release contains statements that are forward-looking, as that term is defined by the
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|||||||||||
CONDENSED STATEMENTS OF CONSOLIDATED INCOME |
|||||||||||
(Unaudited) |
|||||||||||
(In thousands, except per share data) |
|||||||||||
|
|
|
|
|
|
||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
$ |
1,160,675 |
|
$ |
1,158,074 |
$ |
4,479,406 |
|
$ |
4,412,794 |
|
Cost of sales |
|
804,440 |
|
|
819,515 |
|
3,142,753 |
|
|
3,125,829 |
|
Gross Profit |
|
356,235 |
|
|
338,559 |
|
1,336,653 |
|
|
1,286,965 |
|
Selling, distribution and administrative expense, | |||||||||||
including depreciation |
|
216,892 |
|
|
211,744 |
|
840,830 |
|
|
813,814 |
|
Operating Income |
|
139,343 |
|
|
126,815 |
|
495,823 |
|
|
473,151 |
|
Interest (income) expense, net |
|
(671 |
) |
|
4,201 |
|
2,831 |
|
|
21,639 |
|
Other (income) expense, net |
|
(921 |
) |
|
77 |
|
(5,138 |
) |
|
1,701 |
|
Income Before Income Taxes |
|
140,935 |
|
|
122,537 |
|
498,130 |
|
|
449,811 |
|
Income tax expense |
|
37,444 |
|
|
30,322 |
|
112,368 |
|
|
103,072 |
|
Net Income |
$ |
103,491 |
|
$ |
92,215 |
$ |
385,762 |
|
$ |
346,739 |
|
Net Income Per Share - Basic |
$ |
2.68 |
|
$ |
2.39 |
$ |
9.98 |
|
$ |
8.98 |
|
Net Income Per Share - Diluted |
$ |
2.64 |
|
$ |
2.35 |
$ |
9.83 |
|
$ |
8.84 |
|
Average Shares Outstanding - Basic |
|
38,568 |
|
|
38,646 |
|
38,672 |
|
|
38,592 |
|
Average Shares Outstanding - Diluted |
|
39,153 |
|
|
39,270 |
|
39,257 |
|
|
39,220 |
|
|
|||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
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|
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1) Applied uses the last-in, first-out (LIFO) method of valuing |
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|
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
(In thousands) | ||||||
|
|
|||||
Assets | ||||||
Cash and cash equivalents |
$ |
460,617 |
$ |
344,036 |
||
Accounts receivable, net |
|
724,878 |
|
708,395 |
||
Inventories |
|
488,258 |
|
501,184 |
||
Other current assets |
|
96,148 |
|
93,192 |
||
Total current assets |
|
1,769,901 |
|
1,646,807 |
||
Property, net |
|
118,527 |
|
115,041 |
||
Operating lease assets, net |
|
133,289 |
|
100,677 |
||
Intangibles, net |
|
245,870 |
|
235,549 |
||
|
|
619,395 |
|
578,418 |
||
Other assets |
|
64,928 |
|
66,840 |
||
Total Assets |
$ |
2,951,910 |
$ |
2,743,332 |
||
Liabilities | ||||||
Accounts payable |
$ |
266,949 |
$ |
301,685 |
||
Current portion of long-term debt |
|
25,055 |
|
25,170 |
||
Other accrued liabilities |
|
209,096 |
|
213,489 |
||
Total current liabilities |
|
501,100 |
|
540,344 |
||
Long-term debt |
|
572,279 |
|
596,926 |
||
Other liabilities |
|
189,750 |
|
147,625 |
||
Total Liabilities |
|
1,263,129 |
|
1,284,895 |
||
Shareholders' Equity |
|
1,688,781 |
|
1,458,437 |
||
Total Liabilities and Shareholders' Equity |
$ |
2,951,910 |
$ |
2,743,332 |
|
||||||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
|
|
|
|
|
||||
|
|
Year Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Cash Flows from Operating Activities | ||||||||
Net income |
$ |
385,762 |
|
$ |
346,739 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization of property |
|
23,431 |
|
|
22,266 |
|||
Amortization of intangibles |
|
28,923 |
|
|
30,805 |
|||
(Recoveries of) provision for losses on accounts receivable |
|
(205 |
) |
|
5,619 |
|||
Amortization of stock appreciation rights and options |
|
3,448 |
|
|
2,785 |
|||
Other share-based compensation expense |
|
9,496 |
|
|
9,576 |
|||
Changes in assets and liabilities, net of acquisitions |
|
(77,079 |
) |
|
(69,253 |
) |
||
Other, net |
|
(2,383 |
) |
|
(4,571 |
) |
||
|
|
371,393 |
|
|
343,966 |
|
||
Cash Flows from Investing Activities | ||||||||
Acquisition of businesses, net of cash acquired |
|
(72,090 |
) |
|
(35,785 |
) |
||
Capital expenditures |
|
(24,864 |
) |
|
(26,476 |
) |
||
Proceeds from property sales |
|
576 |
|
|
1,428 |
|||
Life insurance proceeds |
|
971 |
|
|
- |
|
||
|
|
(95,407 |
) |
|
(60,833 |
) |
||
Cash Flows from Financing Activities | ||||||||
Net repayments under revolving credit facility |
|
- |
|
|
(27,000 |
) |
||
Borrowings under revolving credit facility |
|
408 |
|
|
- |
|||
Long-term debt repayments |
|
(25,251 |
) |
|
(40,247 |
) |
||
Interest rate swap settlement receipts |
|
14,470 |
|
|
8,800 |
|||
Purchases of treasury shares |
|
(73,388 |
) |
|
(716 |
) |
||
Dividends paid |
|
(55,879 |
) |
|
(53,446 |
) |
||
Acquisition holdback payments |
|
(681 |
) |
|
(1,510 |
) |
||
Taxes paid for shares withheld for equity awards |
|
(16,274 |
) |
|
(12,896 |
) |
||
Exercise of stock appreciation rights and options |
|
127 |
|
|
127 |
|
||
|
|
(156,468 |
) |
|
(126,888 |
) |
||
Effect of Exchange Rate Changes on Cash |
|
(2,937 |
) |
|
3,317 |
|
||
Increase in cash and cash equivalents |
|
116,581 |
|
|
159,562 |
|
||
Cash and Cash Equivalents at Beginning of Period |
|
344,036 |
|
|
184,474 |
|
||
Cash and Cash Equivalents at End of Period |
$ |
460,617 |
|
$ |
344,036 |
|
||
|
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SUPPLEMENTAL INFORMATION |
|||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||
(Unaudited) |
|||||||||||||
(In thousands) |
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The Company supplemented the reporting of financial information determined under |
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Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and Adjusted Net income per share, non-GAAP financial measures: |
|||||||||||||
Year Ended |
|||||||||||||
Pre-tax | Tax Effect | Net of Tax |
Per Share
Impact |
Tax Rate | |||||||||
Net income and net income per share |
$ |
498,130 |
$ |
112,368 |
$ |
385,762 |
|
$ |
9.83 |
|
22.6 |
% |
|
Tax valuation allowance adjustment |
|
- |
|
3,046 |
|
(3,046 |
) |
|
(0.08 |
) |
0.6 |
% |
|
Adjusted net income and net income per share |
$ |
498,130 |
$ |
115,414 |
$ |
382,716 |
|
$ |
9.75 |
|
23.2 |
% |
|
Year Ended |
|||||||||||||
Pre-tax | Tax Effect | Net of Tax |
Per Share
Impact |
Tax Rate | |||||||||
Net income and net income per share |
$ |
449,811 |
$ |
103,072 |
$ |
346,739 |
|
$ |
8.84 |
|
22.9 |
% |
|
Tax valuation allowance adjustment, net |
|
- |
|
3,657 |
|
(3,657 |
) |
|
(0.09 |
) |
0.8 |
% |
|
Adjusted net income and net income per share |
$ |
449,811 |
$ |
106,729 |
$ |
343,082 |
|
$ |
8.75 |
|
23.7 |
% |
Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure: | ||||||||||||||
Three Months Ended
|
Year Ended
|
|||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
Net Income |
$ |
103,491 |
|
$ |
92,215 |
|
$ |
385,762 |
|
$ |
346,739 |
|
||
Interest (income) expense, net |
|
(671 |
) |
|
4,201 |
|
|
2,831 |
|
|
21,639 |
|
||
Income tax expense |
|
37,444 |
|
|
30,322 |
|
|
112,368 |
|
|
103,072 |
|
||
Depreciation and amortization of property |
|
5,864 |
|
|
5,668 |
|
|
23,431 |
|
|
22,266 |
|
||
Amortization of intangibles |
|
7,322 |
|
|
7,616 |
|
|
28,923 |
|
|
30,805 |
|
||
EBITDA |
$ |
153,450 |
|
$ |
140,022 |
|
$ |
553,315 |
|
$ |
524,521 |
|
||
The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. | ||||||||||||||
Reconciliation of |
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Three Months Ended
|
Year Ended
|
|||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
|
$ |
119,234 |
|
$ |
179,939 |
|
$ |
371,393 |
|
$ |
343,966 |
|
||
Capital expenditures |
|
(7,510 |
) |
|
(5,667 |
) |
|
(24,864 |
) |
|
(26,476 |
) |
||
Free Cash Flow |
$ |
111,724 |
|
$ |
174,272 |
|
$ |
346,529 |
|
$ |
317,490 |
|
||
Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240815156720/en/
Director – Investor Relations &
216-426-4887 / rcieslak@applied.com
Source: