Applied Industrial Technologies Inc (AIT) Reports Q1 Fiscal 2024 Earnings
Applied Industrial Technologies Inc (NYSE:AIT) reported net sales of $1.1 billion, up 3.1% YoY.
Net income for the quarter was $93.8 million, or $2.39 per share, up 21.3% YoY.
EBITDA of $133.4 million, up 12.3% YoY.
Operating cash flow of $66.2 million; free cash flow of $61.9 million.
Applied Industrial Technologies Inc (NYSE:AIT) released its earnings for the first quarter of fiscal 2024 on October 26, 2023. The company reported net sales of $1.1 billion, a 3.1% increase from the same period last year. The net income for the quarter was $93.8 million, or $2.39 per share, marking a 21.3% YoY increase. The EBITDA for the quarter was $133.4 million, up 12.3% YoY.
Performance Highlights
The company's net sales increase includes a 1.1% increase from acquisitions and a 0.2% increase from foreign currency translation, offset by a negative 1.6% impact from one less selling day. Excluding these factors, sales increased 3.4% on an organic daily basis reflecting a 4.7% increase in the Service Center segment and a 0.6% increase in the Engineered Solutions segment.
Neil A. Schrimsher, Applieds President & Chief Executive Officer, commented on the company's performance, stating,
We delivered a positive start to fiscal 2024 with EBITDA and EPS growing a respective 12% and 21% over the prior year. Considering the expected moderating sales growth environment, these results reflect another solid quarter of operational execution from our Applied team, including favorable margin performance beyond LIFO expense normalization."
Fiscal 2024 Guidance
Applied Industrial Technologies Inc (NYSE:AIT) has raised its fiscal 2024 guidance to reflect the first quarter earnings performance, recent Service Center acquisitions, and lower LIFO expense assumptions. The company now projects EPS of $9.25 to $9.80, sales growth of 1% to 4% including 0% to 3% on an organic daily basis, and EBITDA margins of 12.0% to 12.3%.
Dividend Announcement
The company also announced that its Board of Directors declared a quarterly cash dividend of $0.35 per common share, payable on November 30, 2023, to shareholders of record on November 15, 2023.
Financial Tables Summary
The company's condensed statements of consolidated income show a net sales increase from $1,062,405 in 2022 to $1,095,188 in 2023. The net income also increased from $76,880 in 2022 to $93,826 in 2023. The condensed consolidated balance sheets show total assets of $2,750,511 in 2023, up from $2,743,332 in 2023. Total liabilities decreased from $1,284,895 in 2023 to $1,214,395 in 2023.
Overall, Applied Industrial Technologies Inc (NYSE:AIT) has shown a positive start to fiscal 2024 with significant growth in net sales and net income. The company's raised guidance for the fiscal year reflects its strong performance and strategic initiatives.
Explore the complete 8-K earnings release (here) from Applied Industrial Technologies Inc for further details.
This article first appeared on GuruFocus.
