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Dec 31, 2020
Applied Industrial Technologies Q2 2021 Earnings Report
Applied Industrial Technologies reported a net sales decrease of 9.9% year-over-year and a net loss of $5.3 million for Q2 2021.
Key Takeaways
Applied Industrial Technologies reported a 9.9% decrease in net sales to $751.3 million compared to the prior year. The company experienced a net loss of $5.3 million, or $0.14 per share, which includes a non-cash impairment charge and non-routine costs. Excluding these items, adjusted net income was $38.4 million, or $0.98 per share.
Net sales decreased 9.9% year-over-year to $751.3 million; organic sales decreased 10.5%.
The company reported a net loss of $5.3 million, or $0.14 per share.
Adjusted net income was $38.4 million, or $0.98 per share, excluding certain charges and costs.
Operating cash flow was $77.5 million, and free cash flow was $72.7 million.
Forward Guidance
The Company would project fiscal 2021 third quarter sales to decline 3% to 4% year over year on an organic basis. In addition, assuming this sales level, the Company would project selling, administrative and distribution expenses to range between $170 million to $175 million during the fiscal 2021 third quarter.
Positive Outlook
- Underlying sales improvement has continued into January with organic sales month to date down by a mid-single digit percent year over year.
- Multiple catalysts to expand market potential and accelerate growth opportunities throughout calendar 2021 and beyond.
- Addressing customers’ break-fix MRO requirements
- Supporting greater demand for specialized engineered solutions
- Leveraging multi-channel cross-selling initiatives.
Challenges Ahead
- General economic uncertainty remains.
- Fiscal 2021 third quarter sales to decline 3% to 4% year over year on an organic basis.
- Selling, administrative and distribution expenses to range between $170 million to $175 million during the fiscal 2021 third quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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