Applied Industrial Technologies Reports Fiscal 2017 Third

• EPS of $0.75 on 7.3% Sales Gain    
• Raises Full-Year Guidance

CLEVELAND, April 27, 2017 (GLOBE NEWSWIRE) -- Applied Industrial Technologies (NYSE: AIT ) today reported sales and earnings for the third quarter and nine months ended March 31, 2017.

Net sales for the quarter were $679.3 million, an increase of 7.3% compared with $633.2 million in the same quarter a year ago. The overall sales increase for the quarter reflects a 0.4% increase from acquisition-related volume and favorable foreign currency translation of 0.1%. Excluding these factors, organic growth was up 6.8%, which includes a 0.8% benefit from a higher number of selling days in the quarter. Net income for the quarter was $29.5 million, or $0.75 per share, compared with a net loss of $44.7 million, or $1.14 per share, in the third quarter of fiscal 2016.

For the nine months ended March 31, 2017, sales increased 1.4% to $1.91 billion from $1.88 billion in the same period last year. Net income increased to $80.9 million from $3.5 million, and earnings per share increased to $2.06 per share from $0.09 per share, last year. Prior year results for both the quarter and year to date include a non-cash charge of $1.62 per share for goodwill impairment and a charge of $0.13 per share for restructuring activities.

Commenting on the Company’s performance, Applied’s President & Chief Executive Officer Neil A. Schrimsher said, “Our results reflect a solid third quarter with continued sales per day improvements across our core operations and ongoing operational excellence activities throughout the business. We are well-positioned to build on this momentum and deliver a strong finish to our fiscal 2017.”

Outlook

“Entering the fourth quarter of our fiscal year, we are increasing our sales and earnings per share guidance,” he added. “We expect fourth quarter sales to increase 6.0% to 8.0% over the prior year quarter and earnings per share for our final quarter to be in the range of $0.68 to $0.78 per share. This results in full-year EPS guidance of $2.74 to $2.84 per share, higher than our previous guidance range of $2.50 to $2.60 per share. We remain focused on serving new and existing customers, expanding our capabilities and generating value for all Applied stakeholders.”

Dividend

Mr. Schrimsher announced that the Company’s Board of Directors declared a quarterly cash dividend of $0.29 per common share, payable on May 31, 2017, to shareholders of record on May 15, 2017.

Share Repurchases

During the quarter, the Company purchased 45,000 shares of its common stock in open market transactions for $2.8 million. Fiscal year to date, the Company has purchased 162,500 shares for a total of $8.2 million. At March 31, 2017, the Company had remaining authorization to purchase 1,450,000 additional shares.

Conference Call Information

Applied will host its quarterly conference call for investors and analysts at 10 a.m. ET on April 27, 2017. Neil A. Schrimsher – President & CEO, and Mark O. Eisele – CFO will discuss the Company's performance. To join the call, dial 1-800-931-6429 or 1-212-231-2931 (for International callers). A live audio webcast can be accessed online through the investor relations portion of the Company's website at www.applied.com . A replay of the call will be available for two weeks by dialing 1-800-633-8284 or 1-402-977-9140 (International) using passcode 21849778.

About Applied Industrial Technologies

Founded in 1923, Applied Industrial Technologies is a leading industrial distributor serving MRO and OEM customers in virtually every industry. In addition, Applied provides engineering, design and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber and fluid power shop services. Applied also offers maintenance training and inventory management solutions that provide added value to its customers. For more information, visit www.applied.com .

This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “guidance,” “expect,” “will” and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends in the industrial sector of the economy, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise. 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(1)  Applied uses the last-in, first-out (LIFO) method of valuing U.S. inventory.  An actual valuation of inventory under the LIFO method can only be made at the end of each year based on the inventory levels and costs at that time.  Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination.

(2) During the first quarter of fiscal 2017, we early adopted Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting. As part of this adoption, the condensed statement of consolidated cash flows for the nine months ended March 31, 2016 has been restated resulting in an increase in net cash provided by operating activities and net cash used in financing activities of $0.9 million.

(3) During the first quarter of fiscal 2017, we adopted Accounting Standards Update No. 2015-03, simplifying the presentation of debt issue costs. The retrospective adoption of this standard resulted in the reclassification as of June 30, 2016 of unamortized debt issue costs of $0.1 million from other current assets to a reduction of current portion of long-term debt and $0.4 million from other assets to a reduction of long-term debt on the Company's condensed consolidated balance sheets.

CONTACT INFORMATION INVESTOR RELATIONS Mark O. Eisele Vice President – Chief Financial Officer & Treasurer 216-426-4417 CORPORATE & MEDIA RELATIONS Julie A. Kho Manager, Public Relations 216-426-4483