[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Ohio
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34-0117420
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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One Applied Plaza, Cleveland, Ohio
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44115
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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[X]
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Accelerated filer
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[ ]
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Non-accelerated filer
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[ ] (Do not check if a smaller reporting company)
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Smaller reporting company
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[ ]
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Emerging growth company
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[ ]
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Page
No.
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Part I:
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Item 1:
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Item 2:
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Item 3:
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Item 4:
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Part II:
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Item 1:
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Item 2:
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Item 6:
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PART I:
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FINANCIAL INFORMATION
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ITEM I:
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FINANCIAL STATEMENTS
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Three Months Ended
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||||||
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September 30,
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||||||
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2017
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2016
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||||
Net Sales
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$
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680,701
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$
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624,848
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Cost of Sales
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488,277
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446,518
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Gross Profit
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192,424
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178,330
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Selling, Distribution and Administrative, including depreciation
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140,587
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134,911
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Operating Income
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51,837
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43,419
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Interest Expense, net
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2,166
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2,146
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Other Income, net
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(711
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)
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(197
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)
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Income Before Income Taxes
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50,382
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41,470
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Income Tax Expense
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16,661
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14,099
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Net Income
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$
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33,721
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|
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$
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27,371
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Net Income Per Share - Basic
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$
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0.87
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$
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0.70
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Net Income Per Share - Diluted
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$
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0.86
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$
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0.70
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Cash dividends per common share
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$
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0.29
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$
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0.28
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Weighted average common shares outstanding for basic computation
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38,932
|
|
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39,044
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Dilutive effect of potential common shares
|
|
404
|
|
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338
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|
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Weighted average common shares outstanding for diluted computation
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39,336
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|
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39,382
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Three Months Ended
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||||||
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September 30,
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||||||
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2017
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2016
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||||
Net income per the condensed statements of consolidated income
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$
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33,721
|
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$
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27,371
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|
|
|
|
|
|
||||
Other comprehensive income (loss), before tax:
|
|
|
|
|
||||
Foreign currency translation adjustments
|
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8,159
|
|
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(2,349
|
)
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||
Post-employment benefits:
|
|
|
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|
||||
Reclassification of net actuarial (gains) losses and prior service cost into other income, net and included in net periodic pension costs
|
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(14
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)
|
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127
|
|
||
Unrealized (loss) gain on investment securities available for sale
|
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(4
|
)
|
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26
|
|
||
Total of other comprehensive income (loss), before tax
|
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8,141
|
|
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(2,196
|
)
|
||
Income tax (benefit) expense related to items of other comprehensive income
|
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(11
|
)
|
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61
|
|
||
Other comprehensive income (loss), net of tax
|
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8,152
|
|
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(2,257
|
)
|
||
Comprehensive income, net of tax
|
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$
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41,873
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$
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25,114
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September 30,
2017 |
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June 30,
2017 |
||||
ASSETS
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|
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Current assets
|
|
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||||
Cash and cash equivalents
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$
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77,769
|
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$
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105,057
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Accounts receivable, less allowances of $9,812 and $9,628
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405,572
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390,931
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Inventories
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364,979
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345,145
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Other current assets
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28,559
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41,409
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Total current assets
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876,879
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882,542
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Property, less accumulated depreciation of $170,163 and $166,143
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111,313
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108,068
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Identifiable intangibles, net
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159,848
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163,562
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Goodwill
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209,834
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206,135
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Deferred tax assets
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9,242
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8,985
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Other assets
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17,791
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18,303
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TOTAL ASSETS
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$
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1,384,907
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$
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1,387,595
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current liabilities
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|
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||||
Accounts payable
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$
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165,233
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$
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180,614
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Current portion of long term debt
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5,595
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4,814
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Compensation and related benefits
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49,774
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58,785
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Other current liabilities
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59,658
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65,540
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Total current liabilities
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280,260
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309,753
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Long-term debt
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285,175
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286,769
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Post-employment benefits
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15,603
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16,715
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Other liabilities
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30,201
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29,102
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TOTAL LIABILITIES
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611,239
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642,339
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Shareholders’ Equity
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Preferred stock—no par value; 2,500 shares authorized; none issued or outstanding
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—
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—
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Common stock—no par value; 80,000 shares authorized; 54,213 shares issued;
38,815 and 39,041 outstanding, respectively
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10,000
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10,000
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Additional paid-in capital
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164,998
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164,655
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Retained Earnings
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1,067,473
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1,033,751
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Treasury shares—at cost (15,398 and 15,172 shares, respectively)
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(395,253
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)
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(381,448
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)
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Accumulated other comprehensive loss
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(73,550
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)
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(81,702
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)
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TOTAL SHAREHOLDERS’ EQUITY
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773,668
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745,256
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$
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1,384,907
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$
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1,387,595
|
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Three Months Ended
|
||||||
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September 30,
|
||||||
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2017
|
|
2016
|
||||
Cash Flows from Operating Activities
|
|
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|
||||
Net income
|
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$
|
33,721
|
|
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$
|
27,371
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization of property
|
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3,927
|
|
|
3,650
|
|
||
Amortization of intangibles
|
|
5,831
|
|
|
6,237
|
|
||
Unrealized foreign exchange transactions (gain) loss
|
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(601
|
)
|
|
248
|
|
||
Amortization of stock options and appreciation rights
|
|
577
|
|
|
809
|
|
||
Gain on sale of property
|
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(198
|
)
|
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(1,068
|
)
|
||
Other share-based compensation expense
|
|
778
|
|
|
555
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|
||
Changes in operating assets and liabilities, net of acquisition
|
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(35,025
|
)
|
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2,835
|
|
||
Other, net
|
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430
|
|
|
1,227
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|
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Net Cash provided by Operating Activities
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9,440
|
|
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41,864
|
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Cash Flows from Investing Activities
|
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|
|
|
||||
Acquisition of businesses, net of cash acquired
|
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(5,014
|
)
|
|
—
|
|
||
Property purchases
|
|
(6,336
|
)
|
|
(2,999
|
)
|
||
Proceeds from property sales
|
|
283
|
|
|
1,747
|
|
||
Net Cash used in Investing Activities
|
|
(11,067
|
)
|
|
(1,252
|
)
|
||
Cash Flows from Financing Activities
|
|
|
|
|
||||
Net repayments under revolving credit facility
|
|
—
|
|
|
(22,000
|
)
|
||
Long-term debt repayments
|
|
(839
|
)
|
|
(838
|
)
|
||
Purchases of treasury shares
|
|
(13,761
|
)
|
|
(3,048
|
)
|
||
Dividends paid
|
|
(11,327
|
)
|
|
(10,943
|
)
|
||
Acquisition holdback payments
|
|
(319
|
)
|
|
(4,444
|
)
|
||
Exercise of stock options and appreciation rights
|
|
—
|
|
|
108
|
|
||
Taxes paid for shares withheld for equity awards
|
|
(1,056
|
)
|
|
(987
|
)
|
||
Net Cash used in Financing Activities
|
|
(27,302
|
)
|
|
(42,152
|
)
|
||
Effect of Exchange Rate Changes on Cash
|
|
1,641
|
|
|
(299
|
)
|
||
Decrease in Cash and Cash Equivalents
|
|
(27,288
|
)
|
|
(1,839
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
|
105,057
|
|
|
59,861
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$
|
77,769
|
|
|
$
|
58,022
|
|
2.
|
BUSINESS COMBINATIONS
|
|
Service Centers
|
|
Fluid Power
|
|
Total
|
||||||
Balance at July 1, 2016
|
$
|
198,486
|
|
|
$
|
4,214
|
|
|
$
|
202,700
|
|
Goodwill acquired during the period
|
3,220
|
|
|
625
|
|
|
3,845
|
|
|||
Other, primarily currency translation
|
34
|
|
|
(444
|
)
|
|
(410
|
)
|
|||
Balance at June 30, 2017
|
$
|
201,740
|
|
|
$
|
4,395
|
|
|
$
|
206,135
|
|
Goodwill acquired during the period
|
2,460
|
|
|
—
|
|
|
2,460
|
|
|||
Other, primarily currency translation
|
1,239
|
|
|
—
|
|
|
1,239
|
|
|||
Balance at September 30, 2017
|
$
|
205,439
|
|
|
$
|
4,395
|
|
|
$
|
209,834
|
|
September 30, 2017
|
|
Amount
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
||||||
Finite-Lived Identifiable Intangibles:
|
|
|
|
|
|
|
||||||
Customer relationships
|
|
$
|
235,945
|
|
|
$
|
106,142
|
|
|
$
|
129,803
|
|
Trade names
|
|
44,223
|
|
|
20,164
|
|
|
24,059
|
|
|||
Vendor relationships
|
|
14,179
|
|
|
9,404
|
|
|
4,775
|
|
|||
Non-competition agreements
|
|
3,780
|
|
|
2,569
|
|
|
1,211
|
|
|||
Total Identifiable Intangibles
|
|
$
|
298,127
|
|
|
$
|
138,279
|
|
|
$
|
159,848
|
|
June 30, 2017
|
|
Amount
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
||||||
Finite-Lived Identifiable Intangibles:
|
|
|
|
|
|
|
||||||
Customer relationships
|
|
$
|
235,009
|
|
|
$
|
102,414
|
|
|
$
|
132,595
|
|
Trade names
|
|
43,873
|
|
|
19,295
|
|
|
24,578
|
|
|||
Vendor relationships
|
|
14,152
|
|
|
9,141
|
|
|
5,011
|
|
|||
Non-competition agreements
|
|
3,788
|
|
|
2,410
|
|
|
1,378
|
|
|||
Total Identifiable Intangibles
|
|
$
|
296,822
|
|
|
$
|
133,260
|
|
|
$
|
163,562
|
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||
|
|
Foreign currency translation adjustment
|
|
|
Unrealized gain (loss) on securities available for sale
|
|
|
Postemployment benefits
|
|
|
Total Accumulated other comprehensive (loss) income
|
|
||||
Balance at July 1, 2017
|
|
$
|
(79,447
|
)
|
|
$
|
21
|
|
|
$
|
(2,276
|
)
|
|
$
|
(81,702
|
)
|
Other comprehensive income (loss)
|
|
8,159
|
|
|
(3
|
)
|
|
—
|
|
|
8,156
|
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||
Net current-period other comprehensive income (loss)
|
|
8,159
|
|
|
(3
|
)
|
|
(4
|
)
|
|
8,152
|
|
||||
Balance at September 30, 2017
|
|
$
|
(71,288
|
)
|
|
$
|
18
|
|
|
$
|
(2,280
|
)
|
|
$
|
(73,550
|
)
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||
|
|
Foreign currency translation adjustment
|
|
|
Unrealized (loss) gain on securities available for sale
|
|
|
Postemployment benefits
|
|
|
Total Accumulated other comprehensive (loss) income
|
|
||||
Balance at July 1, 2016
|
|
$
|
(81,685
|
)
|
|
$
|
(38
|
)
|
|
$
|
(3,823
|
)
|
|
$
|
(85,546
|
)
|
Other comprehensive (loss) income
|
|
(2,349
|
)
|
|
15
|
|
|
—
|
|
|
(2,334
|
)
|
||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
|
—
|
|
|
—
|
|
|
77
|
|
|
77
|
|
||||
Net current-period other comprehensive (loss) income
|
|
(2,349
|
)
|
|
15
|
|
|
77
|
|
|
(2,257
|
)
|
||||
Balance at September 30, 2016
|
|
$
|
(84,034
|
)
|
|
$
|
(23
|
)
|
|
$
|
(3,746
|
)
|
|
$
|
(87,803
|
)
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
|
Pre-Tax Amount
|
|
Tax Benefit
|
|
Net Amount
|
|
Pre-Tax Amount
|
|
Tax Expense
|
|
Net Amount
|
||||||||||||
Foreign currency translation adjustments
|
|
$
|
8,159
|
|
|
$
|
—
|
|
|
$
|
8,159
|
|
|
$
|
(2,349
|
)
|
|
$
|
—
|
|
|
$
|
(2,349
|
)
|
Post-employment benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reclassification of net actuarial (gains) losses and prior service cost into other income, net and included in net periodic pension costs
|
|
(14
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
127
|
|
|
50
|
|
|
77
|
|
||||||
Unrealized (loss) gain on investment securities available for sale
|
|
(4
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
26
|
|
|
11
|
|
|
15
|
|
||||||
Other comprehensive loss
|
|
$
|
8,141
|
|
|
$
|
(11
|
)
|
|
$
|
8,152
|
|
|
$
|
(2,196
|
)
|
|
$
|
61
|
|
|
$
|
(2,257
|
)
|
|
|
|
Pension Benefits
|
|
Retiree Health Care
Benefits
|
||||||||||||
Three Months Ended September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Components of net periodic cost:
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
31
|
|
|
$
|
31
|
|
|
$
|
5
|
|
|
$
|
7
|
|
Interest cost
|
|
183
|
|
|
173
|
|
|
13
|
|
|
16
|
|
||||
Expected return on plan assets
|
|
(118
|
)
|
|
(115
|
)
|
|
—
|
|
|
—
|
|
||||
Recognized net actuarial loss (gain)
|
|
106
|
|
|
218
|
|
|
(39
|
)
|
|
(45
|
)
|
||||
Amortization of prior service cost
|
|
7
|
|
|
22
|
|
|
(92
|
)
|
|
(68
|
)
|
||||
Net periodic cost
|
|
$
|
209
|
|
|
$
|
329
|
|
|
$
|
(113
|
)
|
|
$
|
(90
|
)
|
Three Months Ended
|
|
Service Center Based Distribution
|
|
Fluid Power Businesses
|
|
Total
|
||||||
September 30, 2017
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
568,913
|
|
|
$
|
111,788
|
|
|
$
|
680,701
|
|
Operating income for reportable segments
|
|
33,722
|
|
|
13,290
|
|
|
47,012
|
|
|||
Assets used in business
|
|
1,182,784
|
|
|
202,123
|
|
|
1,384,907
|
|
|||
Depreciation and amortization of property
|
|
3,669
|
|
|
258
|
|
|
3,927
|
|
|||
Capital expenditures
|
|
5,548
|
|
|
788
|
|
|
6,336
|
|
|||
|
|
|
|
|
|
|
||||||
September 30, 2016
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
529,230
|
|
|
$
|
95,618
|
|
|
$
|
624,848
|
|
Operating income for reportable segments
|
|
26,996
|
|
|
10,478
|
|
|
37,474
|
|
|||
Assets used in business
|
|
1,147,199
|
|
|
152,240
|
|
|
1,299,439
|
|
|||
Depreciation and amortization of property
|
|
3,416
|
|
|
234
|
|
|
3,650
|
|
|||
Capital expenditures
|
|
2,924
|
|
|
75
|
|
|
2,999
|
|
|
|
|
Three Months Ended
|
||||||
|
|
September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Operating income for reportable segments
|
|
$
|
47,012
|
|
|
$
|
37,474
|
|
Adjustment for:
|
|
|
|
|
||||
Intangible amortization—Service Center Based Distribution
|
|
4,512
|
|
|
4,846
|
|
||
Intangible amortization—Fluid Power Businesses
|
|
1,319
|
|
|
1,391
|
|
||
Corporate and other income, net
|
|
(10,656
|
)
|
|
(12,182
|
)
|
||
Total operating income
|
|
51,837
|
|
|
43,419
|
|
||
Interest expense, net
|
|
2,166
|
|
|
2,146
|
|
||
Other income, net
|
|
(711
|
)
|
|
(197
|
)
|
||
Income before income taxes
|
|
$
|
50,382
|
|
|
$
|
41,470
|
|
|
|
Three Months Ended
|
||||||
|
|
September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Geographic Areas:
|
|
|
|
|
||||
United States
|
|
$
|
567,545
|
|
|
$
|
523,367
|
|
Canada
|
|
66,817
|
|
|
62,581
|
|
||
Other countries
|
|
46,339
|
|
|
38,900
|
|
||
Total
|
|
$
|
680,701
|
|
|
$
|
624,848
|
|
|
|
Three Months Ended
|
||||||
|
|
September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan
|
|
$
|
(368
|
)
|
|
$
|
(330
|
)
|
Foreign currency transactions gain
|
|
(311
|
)
|
|
(150
|
)
|
||
Net other periodic post-employment costs
|
|
60
|
|
|
201
|
|
||
Other, net
|
|
(92
|
)
|
|
82
|
|
||
Total other income, net
|
|
$
|
(711
|
)
|
|
$
|
(197
|
)
|
/s/ Deloitte & Touche LLP
|
|
Cleveland, Ohio
|
October 26, 2017
|
|
Index Reading
|
||
Month
|
MCU
|
PMI
|
IP
|
September 2017
|
76.0
|
60.8
|
103.0
|
August 2017
|
75.8
|
58.8
|
102.9
|
July 2017
|
76.5
|
56.3
|
103.2
|
|
|
Three Months Ended September 30,
|
|
Change in $'s Versus Prior Period - % Increase
|
|||||
|
|
As a Percent of Net Sales
|
|
||||||
|
|
2017
|
|
2016
|
|
||||
Net Sales
|
|
100.0
|
%
|
|
100.0
|
%
|
|
8.9
|
%
|
Gross Profit
|
|
28.3
|
%
|
|
28.5
|
%
|
|
7.9
|
%
|
Selling, Distribution & Administrative
|
|
20.7
|
%
|
|
21.6
|
%
|
|
4.2
|
%
|
Operating Income
|
|
7.6
|
%
|
|
6.9
|
%
|
|
19.4
|
%
|
Net Income
|
|
5.0
|
%
|
|
4.4
|
%
|
|
23.2
|
%
|
Country
|
|
Amount
|
||
United States
|
|
$
|
32,904
|
|
Canada
|
|
31,286
|
|
|
Other countries
|
|
13,579
|
|
|
Total
|
|
$
|
77,769
|
|
|
|
Three Months Ended September 30,
|
||||||
Net Cash Provided by (Used in):
|
|
2017
|
|
2016
|
||||
Operating Activities
|
|
$
|
9,440
|
|
|
$
|
41,864
|
|
Investing Activities
|
|
(11,067
|
)
|
|
(1,252
|
)
|
||
Financing Activities
|
|
(27,302
|
)
|
|
(42,152
|
)
|
||
Exchange Rate Effect
|
|
1,641
|
|
|
(299
|
)
|
||
Decrease in Cash and Cash Equivalents
|
|
$
|
(27,288
|
)
|
|
$
|
(1,839
|
)
|
|
September 30,
|
June 30,
|
||||
|
2017
|
2016
|
||||
Accounts receivable, gross
|
$
|
415,384
|
|
$
|
400,559
|
|
Allowance for doubtful accounts
|
9,812
|
|
9,628
|
|
||
Accounts receivable, net
|
$
|
405,572
|
|
$
|
390,931
|
|
Allowance for doubtful accounts, % of gross receivables
|
2.4
|
%
|
2.4
|
%
|
||
|
|
|
||||
|
Three Months Ended September 30,
|
|||||
|
2017
|
2016
|
||||
Provision for losses on accounts receivable
|
$
|
719
|
|
$
|
862
|
|
Provision as a % of net sales
|
0.11
|
%
|
0.14
|
%
|
PART II.
|
OTHER INFORMATION
|
ITEM 1.
|
Legal Proceedings
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
(a) Total Number of Shares (1)
|
(b) Average Price Paid per Share ($)
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2)
|
July 1, 2017 to July 31, 2017
|
341
|
$59.60
|
0
|
1,450,000
|
August 1, 2017 to August 31, 2017
|
247,500
|
$55.60
|
247,500
|
1,202,500
|
September 1, 2017 to September 30, 2017
|
0
|
$0.00
|
0
|
1,202,500
|
Total
|
247,841
|
$55.61
|
247,500
|
1,202,500
|
(1)
|
During the quarter the Company purchased 341 shares in connection with the Deferred Compensation Plan.
|
(2)
|
On October 24, 2016, the Board of Directors authorized the repurchase of up to 1.5 million shares of the Company's common stock, replacing the prior authorization. We publicly announced the new authorization on October 26, 2016. Purchases can be made in the open market or in privately negotiated transactions.
|
Exhibit No.
|
|
Description
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
15
|
|
|
|
|
|
31
|
|
|
|
|
|
32
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
APPLIED INDUSTRIAL TECHNOLOGIES, INC.
|
|
|
(Company)
|
|
|
|
Date:
|
October 26, 2017
|
By:
/s/ Neil A.Schrimsher
|
|
|
Neil A. Schrimsher
|
|
|
President & Chief Executive Officer
|
|
|
|
|
|
|
Date:
|
October 26, 2017
|
By:
/s/ David K. Wells
|
|
|
David K. Wells
|
|
|
Vice President-Chief Financial Officer & Treasurer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Applied Industrial Technologies, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: October 26, 2017
|
By:
/s/ Neil A. Schrimsher
|
|
Neil A. Schrimsher
|
|
President & Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Applied Industrial Technologies, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: October 26, 2017
|
By:
/s/ David K. Wells
|
|
David K. Wells
|
|
Vice President-Chief Financial Officer & Treasurer
|
|
|
|
/s/ Neil A. Schrimsher
|
|
/s/ David K. Wells
|
Neil A. Schrimsher
|
|
David K. Wells
|
President & Chief Executive Officer
|
|
Vice President-Chief Financial Officer & Treasurer
|
|
|
|
|
|
|
Date: October 26, 2017
|
|
|
|
|
|