Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES .
Applied's common stock, without par value, is listed for trading on the New York Stock Exchange with the ticker symbol “AIT.” On August 5, 2022, there were 3,326 shareholders of record including 2,222 shareholders in the Applied Industrial Technologies, Inc. Retirement Savings Plan.
The following table summarizes Applied's repurchases of its common stock in the quarter ended June 30, 2022.
Period (a) Total Number of Shares (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 (1)
April 1, 2022 to April 30, 2022 — — — 317,960
May 1, 2022 to May 31, 2022 — — — 317,960
June 1, 2022 to June 30, 2022 2,000 89.87 2,000 315,960
Total 2,000 89.87 2,000 315,960
(1) 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 could be made in the open market or in privately negotiated transactions.
On August 9, 2022, 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 August 11, 2022. Purchases can be made in the open market or in privately negotiated transactions. The authorization is in effect until all shares are purchased, or the Board revokes or amends the authorization.
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ITEM 6. SELECTED FINANCIAL DATA.
This selected financial data should be read in conjunction with Applied's consolidated financial statements and related notes included elsewhere in this annual report as well as the section of the annual report titled Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
(In thousands, except per share amounts and statistical data)
2022 2021 2020 2019 2018 (d)
Consolidated Operations — Year Ended June 30
Net sales $ 3,810,676 $ 3,235,919 $ 3,245,652 $ 3,472,739 $ 3,073,274
Depreciation and amortization of property 21,676 20,780 21,196 20,236 17,798
Amortization:
Intangible assets 31,879 34,365 41,553 41,883 32,065
SARs and stock options 3,284 2,526 2,954 2,437 1,961
Operating income (a) (b) (c)
357,858 205,454 88,989 233,788 225,827
Net income (a) (b) (c)
257,414 144,757 24,042 143,993 141,625
Per share data:
Net income:
Basic 6.69 3.73 0.62 3.72 3.65
Diluted (a) (b) (c)
6.58 3.68 0.62 3.68 3.61
Cash dividend 1.34 1.30 1.26 1.22 1.18
Year-End Position — June 30
Working capital $ 859,902 $ 768,875 $ 733,686 $ 724,344 $ 625,469
Long-term debt (including portion classified as current) 689,495 829,396 935,276 959,829 966,063
Total assets 2,452,588 2,271,807 2,283,551 2,331,697 2,285,741
Shareholders’ equity 1,149,355 932,546 843,542 897,034 814,963
Year-End Statistics — June 30
Current ratio 2.7 2.8 2.7 2.7 2.4
Operating facilities 568 568 580 600 610
Shareholders of record 3,344 3,535 3,772 4,165 4,323
Return on assets (a) (b) (c) (e)
11.1 % 6.4 % 1.0 % 6.3 % 8.0 %
Return on equity (a) (b) (c) (f)
24.7 % 16.3 % 2.8 % 16.8 % 18.2 %
Capital expenditures $ 18,124 $ 15,852 $ 20,115 $ 18,970 $ 23,230
Cash Returned to Shareholders During the Year
Dividends paid $ 51,805 $ 50,664 $ 48,873 $ 47,266 $ 45,858
Purchases of treasury shares 13,784 40,089 — 11,158 22,778
Total $ 65,589 $ 90,753 $ 48,873 $ 58,424 $ 68,636
(a) In fiscal 2021, the Company recognized a non-cash impairment charge of $49.5 million as a result of reduced economic conditions and business alignment initiatives related to a portion of the Service Center Based Distribution segment exposed to oil and gas end markets . Excluding the impairment charge, the fiscal 2021 return on assets would be 8.0% and return on equity would be 20.6%.
(b) A goodwill impairment charge in fiscal 2020 reduced operating income by $131.0 million, net income by $118.8 million, and diluted earnings per share by $3.04. Excluding the goodwill impairment charge, the fiscal 2020 return on assets would be 6.5% and return on equity would be 16.4%.
(c) A long-lived intangible asset impairment charge in fiscal 2019 reduced operating income by $31.6 million, net income by $26.9 million, and diluted earnings per share by $0.69, which includes the impact of a $3.8 million valuation allowance on certain Canadian deferred tax assets. Excluding the long-lived intangible asset impairment charge, the fiscal 2019 return on assets would be 7.5% and return on equity would be 20.0%.
(d) FY 2018 includes the acquisition of FCX Performance, Inc. from the acquisition date of 1/31/2018.
(e) Return on assets is calculated as net income divided by monthly average assets.
(f) Return on equity is calculated as net income divided by the average shareholders’ equity (beginning of the year plus end of
the year divided by 2).
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