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Jun 30, 2020

Applied Industrial Technologies Q4 2020 Earnings Report

Applied Industrial Technologies reported a decrease in net sales and earnings per share for the fiscal fourth quarter and full year ended June 30, 2020.

Key Takeaways

Applied Industrial Technologies reported a decrease in net sales by 17.9% to $725.1 million for the quarter. EPS was reported at $0.77, and adjusted non-GAAP EPS was $0.80. The company noted challenges due to the COVID-19 pandemic but highlighted strong cash generation and resilience.

Net sales decreased 17.9% year-over-year to $725.1 million, with an 18.4% decline on an organic basis.

Earnings per share (EPS) was $0.77, while non-GAAP adjusted EPS was $0.80.

Operating cash flow was $127.1 million, and free cash flow was $123.2 million.

Demand was challenging due to customers idling or reducing production capacity amid the COVID-19 pandemic.

Total Revenue
$725M
Previous year: $883M
-17.9%
EPS
$0.8
Previous year: $1.2
-33.3%
Gross Profit
$208M
Previous year: $257M
-19.1%
Cash and Equivalents
$269M
Previous year: $108M
+148.2%
Free Cash Flow
$123M
Total Assets
$2.28B
Previous year: $2.33B
-2.1%

Applied Industrial Technologies

Applied Industrial Technologies

Forward Guidance

Due to ongoing uncertainty from the COVID-19 pandemic, the Company is refraining from providing formal financial guidance for the full-year fiscal 2021 until it further assesses the direction of industrial activity. Near term, assuming underlying demand remains stable with July and early August levels, first quarter sales are expected to decline 17% to 18% year-over-year on an organic basis.