Applied Industrial Technologies Inc. reported net sales of $1,098.9 million for the three months ended September 30, 2024, reflecting a slight increase of $3.8 million or 0.3% compared to $1,095.2 million in the same period of 2023. The growth was driven by acquisitions, which contributed $22.0 million, while unfavorable foreign currency translation reduced sales by $3.5 million.
Operating income for the quarter was $113.2 million, down from $120.7 million in the prior year, resulting in an operating margin of 10.3%, a decrease from 11.0% in the previous year. Net income for the quarter was $92.1 million, a decline of 1.9% from $93.8 million in the same quarter of 2023. Basic net income per share was $2.40, down from $2.42, while diluted earnings per share decreased to $2.36 from $2.39.
The company’s cash and cash equivalents increased to $538.5 million as of September 30, 2024, compared to $460.6 million at the end of the previous quarter. Total current assets rose to $1,809.6 million, while total assets increased to $3,003.2 million. Current liabilities decreased to $478.3 million, contributing to a current ratio of 3.8:1, up from 3.5:1 at the end of June 2024.
In terms of strategic developments, Applied Industrial Technologies made several acquisitions in 2024, including Total Machine Solutions and Stanley Proctor, which were completed on August 1, 2024, and Grupo Kopar on May 1, 2024. These acquisitions are expected to enhance the company's Service Center Based Distribution and Engineered Solutions segments. The company also acquired Bearing Distributors, Inc. and Cangro Industries, Inc. in 2023, further expanding its market presence.
The company’s selling, distribution, and administrative expenses increased to $211.1 million, representing 19.3% of sales, up from 18.6% in the prior year. This increase was partly attributed to acquisitions, which added $6.6 million to these expenses.
As of September 30, 2024, the company had a total debt obligation of $597.3 million, consistent with the previous quarter. The interest rate on its revolving credit facility was 5.75%, down from 6.24% at the end of June 2024. The company maintained a strong financial position, with net indebtedness less than 0.2 times consolidated income before interest, taxes, depreciation, and amortization, indicating robust compliance with financial covenants.
About APPLIED INDUSTRIAL TECHNOLOGIES INC
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