Applied Industrial Technologies, Inc. (AIT) Bundle
A Brief History of Applied Industrial Technologies, Inc.
Company Overview
Applied Industrial Technologies, Inc. (AIT) is a leading distributor of industrial products and services. Established in 1923, the company has grown significantly, providing a wide array of mechanical and fluid power products, bearings, and specialty flow control products across various industries.
Financial Performance 2024
As of September 30, 2024, Applied Industrial Technologies reported net sales of $1,098,944 thousand, a slight increase from $1,095,188 thousand in the same quarter of the previous year. The gross profit remained stable at $325,082 thousand, with a gross margin of 29.6%.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales (in thousands) | $1,098,944 | $1,095,188 |
| Gross Profit (in thousands) | $325,082 | $325,082 |
| Operating Income (in thousands) | $113,172 | $120,680 |
| Net Income (in thousands) | $92,063 | $93,826 |
| Net Income per Share (diluted) | $2.36 | $2.39 |
Debt and Liquidity
As of September 30, 2024, total debt obligations stood at $597,342 thousand, with a current ratio of 3.8 to 1. The company had a working capital of $1,331,300 thousand, indicating strong liquidity.
| Debt Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Debt (in thousands) | $597,342 | $597,405 |
| Working Capital (in thousands) | $1,331,300 | $1,268,800 |
| Current Ratio | 3.8 | 3.5 |
Market Performance
The stock performance has been stable, with shares of common stock trading at an average price of $191.92 during the three months ended September 30, 2024. The company has authorized the repurchase of 1,050,000 shares.
Operational Insights
As of September 30, 2024, Applied Industrial Technologies employed 6,549 individuals, operating 593 facilities. The company has focused on enhancing its operational efficiency and expanding its market presence through strategic acquisitions.
| Operational Metrics | September 30, 2024 |
|---|---|
| Employees | 6,549 |
| Operating Facilities | 593 |
Conclusion of Financial Data
Overall, Applied Industrial Technologies continues to demonstrate robust financial health and operational efficiency as of 2024.
A Who Owns Applied Industrial Technologies, Inc. (AIT)
Major Shareholders
As of September 30, 2024, Applied Industrial Technologies, Inc. (AIT) had the following major shareholders:
| Shareholder Name | Ownership Percentage | Shares Owned | Type of Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 4,025,000 | Institutional |
| BlackRock, Inc. | 9.8% | 3,749,000 | Institutional |
| State Street Corporation | 8.2% | 3,120,000 | Institutional |
| Wellington Management Group LLP | 6.7% | 2,500,000 | Institutional |
| Dimensional Fund Advisors LP | 5.3% | 2,000,000 | Institutional |
| Insider Ownership (Executives & Directors) | 3.1% | 1,200,000 | Insider |
| Other Institutional Investors | 5.4% | 2,050,000 | Institutional |
Stock Performance
As of September 30, 2024, the stock price of Applied Industrial Technologies, Inc. (AIT) was $191.92 per share. The company has a market capitalization of approximately $7.4 billion based on 38.5 million shares outstanding.
Recent Transactions
In the three months ended September 30, 2024, AIT repurchased 52,000 shares of its common stock at an average price of $191.92 per share, totaling approximately $10 million. The company has authorization to repurchase an additional 1,050,000 shares.
Financial Overview
As of September 30, 2024, Applied Industrial Technologies reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Sales | $1,098.9 million |
| Net Income | $92.1 million |
| Operating Income | $113.2 million |
| Assets | $3,003.2 million |
| Liabilities | $1,251.1 million |
| Shareholders' Equity | $1,752.1 million |
Debt Structure
As of September 30, 2024, the company’s total debt was approximately $597.3 million, with the following breakdown:
| Debt Type | Amount (in millions) |
|---|---|
| Revolving Credit Facility | $384.0 |
| Trade Receivable Securitization Facility | $188.3 |
| Series E Notes | $25.0 |
| Other | $0.04 |
Conclusion
Applied Industrial Technologies, Inc. continues to maintain a diverse ownership structure with significant institutional investment, reflecting a robust financial position and strategic operational management. As of 2024, the company's ongoing stock repurchase program and solid revenue performance suggest continued investor confidence.
Applied Industrial Technologies, Inc. (AIT) Mission Statement
Overview of Mission Statement
The mission of Applied Industrial Technologies, Inc. (AIT) focuses on providing innovative solutions and high-quality products to enhance the productivity and efficiency of their customers. AIT aims to be the premier distributor of industrial products and services, emphasizing customer satisfaction, operational excellence, and sustainable practices.
Core Values
- Customer Commitment: Prioritizing customer needs and fostering long-term relationships.
- Integrity: Conducting business ethically and transparently.
- Innovation: Continuously improving products and services to meet evolving market demands.
- Teamwork: Encouraging collaboration among employees to achieve common goals.
- Sustainability: Implementing practices that promote environmental stewardship.
Financial Performance
As of September 30, 2024, AIT reported net sales of $1,098.9 million, reflecting a 0.3% increase compared to the previous year. The company's gross profit margin was 29.6%, with a net income of $92.1 million for the quarter.
| Financial Metric | Value (in millions) |
|---|---|
| Net Sales | $1,098.9 |
| Gross Profit Margin | 29.6% |
| Net Income | $92.1 |
| Operating Income | $113.2 |
| Total Assets | $3,003.2 |
| Total Liabilities | $1,251.1 |
| Shareholders' Equity | $1,752.1 |
Strategic Goals
AIT's strategic objectives align with its mission statement and include:
- Market Expansion: Increasing market share through strategic acquisitions and partnerships.
- Operational Efficiency: Streamlining operations to reduce costs and improve service delivery.
- Employee Development: Investing in training and development to enhance workforce skills.
- Customer Solutions: Providing tailored solutions to meet specific customer needs.
Recent Developments
In August 2024, AIT acquired Stanley Proctor for $3.998 million, enhancing its capabilities in hydraulic and pneumatic systems. This acquisition aligns with AIT's mission to expand its product offerings and improve customer solutions.
Market Position
As of September 30, 2024, AIT operates 593 facilities across North America and several international locations, employing over 6,500 individuals. The company continues to be a leading distributor in the industrial sector, serving a diverse range of markets.
| Operational Metric | Value |
|---|---|
| Number of Employees | 6,549 |
| Number of Facilities | 593 |
| Geographic Reach | North America, Australia, New Zealand, Singapore |
| Acquisitions in FY 2024 | 2 (Stanley Proctor, Grupo Kopar) |
Conclusion
Applied Industrial Technologies, Inc. remains committed to its mission of delivering exceptional value to its customers while maintaining a focus on operational excellence and sustainable practices.
How Applied Industrial Technologies, Inc. (AIT) Works
Company Overview
Applied Industrial Technologies, Inc. (AIT) is a leading distributor and technical solutions provider operating in the industrial motion, fluid power, flow control, and automation technologies sectors. As of September 30, 2024, the company employs over 6,500 people and operates from 593 facilities across North America, Australia, New Zealand, and Singapore.
Financial Performance
For the quarter ended September 30, 2024, AIT reported net sales of $1,098.9 million, representing a slight increase of $3.8 million or 0.3% compared to the same quarter in 2023. The increase was supported by acquisitions contributing $22 million, although this was partially offset by a decline of $3.5 million due to unfavorable foreign currency translations.
| Financial Metrics | Q1 2025 (Sept 30, 2024) | Q1 2024 (Sept 30, 2023) |
|---|---|---|
| Net Sales | $1,098.9 million | $1,095.1 million |
| Gross Profit | $325.1 million | $325.1 million |
| Operating Income | $113.2 million | $120.7 million |
| Net Income | $92.1 million | $93.8 million |
| Diluted Earnings per Share | $2.36 | $2.39 |
Segment Performance
Sales by reportable segments for the quarter ended September 30, 2024 are as follows:
| Segment | Sales (Q1 2025) | Sales (Q1 2024) |
|---|---|---|
| Service Center Based Distribution | $749.7 million | $746.5 million |
| Engineered Solutions | $349.2 million | $348.6 million |
Operating Expenses
Selling, distribution, and administrative expenses (SD&A) for Q1 2025 totaled $211.9 million, which is an increase from $204.4 million in Q1 2024. This comprises:
- Increase in SD&A due to acquisitions: $6.6 million
- Currency translation impact: Decreased SD&A by $0.7 million
- Organic increase in SD&A: $1.6 million
Balance Sheet Highlights
As of September 30, 2024, AIT's total assets were $3.0 billion, with total liabilities amounting to $1.25 billion, resulting in total shareholders' equity of $1.75 billion.
| Balance Sheet Metrics | As of Sept 30, 2024 | As of June 30, 2024 |
|---|---|---|
| Total Assets | $3,003.2 million | $2,951.9 million |
| Total Liabilities | $1,251.1 million | $1,263.1 million |
| Total Shareholders' Equity | $1,752.1 million | $1,688.8 million |
Cash Flow Analysis
Net cash provided by operating activities for the three months ended September 30, 2024 was $127.7 million, compared to $66.2 million for the same period in 2023. The cash flow from investing activities was a net outflow of $15.2 million, and from financing activities, a net outflow of $34.0 million.
| Cash Flow Metrics | Q1 2025 (Sept 30, 2024) | Q1 2024 (Sept 30, 2023) |
|---|---|---|
| Operating Activities | $127.7 million | $66.2 million |
| Investing Activities | ($15.2 million) | ($25.7 million) |
| Financing Activities | ($34.0 million) | ($22.5 million) |
Debt and Liquidity
As of September 30, 2024, AIT had total debt obligations of $597.3 million, a slight decrease from $597.4 million at June 30, 2024. The company's current ratio improved to 3.8 to 1, up from 3.5 to 1 in the prior quarter.
Market Conditions
In terms of market conditions, the Manufacturing Capacity Utilization (MCU) index was reported at 77.5 in September 2024, down from 78.2 in June 2024. The Purchasing Managers Index (PMI) was at 47.2, indicating contraction in manufacturing activity.
| Economic Indicators | September 2024 | June 2024 |
|---|---|---|
| Manufacturing Capacity Utilization (MCU) | 77.5 | 78.2 |
| Purchasing Managers Index (PMI) | 47.2 | 48.5 |
Employee and Facility Overview
As of September 30, 2024, AIT had a workforce of 6,549 employees and a total of 593 operational facilities, reflecting stability in employment and facilities compared to previous quarters.
How Applied Industrial Technologies, Inc. (AIT) Makes Money
Business Model Overview
Applied Industrial Technologies, Inc. (AIT) operates as a leading value-added distributor and technical solutions provider in the industrial sector. The company focuses on industrial motion, fluid power, flow control, automation technologies, and maintenance supplies. AIT serves both Maintenance, Repair & Operations (MRO) and Original Equipment Manufacturer (OEM) end users across various industrial markets.
Revenue Streams
AIT generates revenue through several key segments:
- Service Center Based Distribution
- Engineered Solutions
Financial Performance
As of the fiscal quarter ending September 30, 2024, AIT reported the following financial metrics:
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $1,098,944,000 | $1,095,188,000 |
| Gross Profit Margin | 29.6% | 29.7% |
| Operating Income | $113,172,000 | $120,680,000 |
| Net Income | $92,063,000 | $93,826,000 |
| Net Income per Share (Basic) | $2.40 | $2.42 |
| Net Cash Provided by Operating Activities | $127,747,000 | $66,209,000 |
Segment Performance
For the three months ended September 30, 2024, sales by reportable segment were as follows:
| Segment | Net Sales (Q1 2024) | Net Sales (Q1 2023) |
|---|---|---|
| Service Center Based Distribution | $749,739,000 | $746,533,000 |
| Engineered Solutions | $349,205,000 | $348,655,000 |
Geographic Breakdown of Sales
The geographic distribution of AIT's sales for the same quarter is shown below:
| Geographic Area | Q1 2024 Sales | Q1 2023 Sales |
|---|---|---|
| United States | $957,233,000 | $959,358,000 |
| Canada | $71,476,000 | $75,300,000 |
| Other Countries | $70,235,000 | $60,530,000 |
Operational Metrics
Key operational metrics for AIT as of September 30, 2024:
- Total Employees: 6,549
- Number of Operating Facilities: 593
Capital Structure and Debt
As of September 30, 2024, AIT's capital structure included:
| Debt Type | Amount |
|---|---|
| Total Debt | $597,342,000 |
| Revolving Credit Facility | $384,000,000 |
| Trade Receivable Securitization Facility | $188,300,000 |
| Series E Notes | $25,000,000 |
Market Indicators
AIT's performance is closely correlated with key economic indicators, such as:
- Manufacturing Capacity Utilization (MCU): 77.5 (September 2024)
- Purchasing Managers Index (PMI): 47.2 (September 2024)
- Industrial Production (IP): 99.1 (September 2024)
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Article updated on 8 Nov 2024
Resources:
- Applied Industrial Technologies, Inc. (AIT) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Applied Industrial Technologies, Inc. (AIT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Applied Industrial Technologies, Inc. (AIT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.