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 4, 2023, there were 3,205 shareholders of record including 2,132 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, 2023.
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, 2023 to April 30, 2023 — — — 1,500,000
May 1, 2023 to May 31, 2023 — — — 1,500,000
June 1, 2023 to June 30, 2023 — — — 1,500,000
Total — — — 1,500,000
(1) 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)
2023 2022 2021 2020 2019
Consolidated Operations — Year Ended June 30
Net sales $ 4,412,794 $ 3,810,676 $ 3,235,919 $ 3,245,652 $ 3,472,739
Depreciation and amortization of property 22,266 21,676 20,780 21,196 20,236
Amortization:
Intangible assets 30,805 31,879 34,365 41,553 41,883
SARs and stock options 2,785 3,284 2,526 2,954 2,437
Operating income (a) (b) (c)
473,151 357,858 205,454 88,989 233,788
Net income (a) (b) (c)
346,739 257,414 144,757 24,042 143,993
Per share data:
Net income:
Basic 8.98 6.69 3.73 0.62 3.72
Diluted (a) (b) (c)
8.84 6.58 3.68 0.62 3.68
Cash dividend 1.38 1.34 1.30 1.26 1.22
Year-End Position — June 30
Working capital $ 1,106,463 $ 859,902 $ 768,875 $ 733,686 $ 724,344
Total debt 622,248 689,495 829,396 935,276 959,829
Total assets 2,743,332 2,452,588 2,271,807 2,283,551 2,331,697
Shareholders’ equity 1,458,437 1,149,355 932,546 843,542 897,034
Year-End Statistics — June 30
Current ratio 3.0 2.7 2.8 2.7 2.7
Operating facilities 580 568 568 580 600
Shareholders of record 3,227 3,344 3,535 3,772 4,165
Return on assets (a) (b) (c) (d)
13.7 % 11.1 % 6.4 % 1.0 % 6.3 %
Return on equity (a) (b) (c) (e)
26.6 % 24.7 % 16.3 % 2.8 % 16.8 %
Capital expenditures $ 26,476 $ 18,124 $ 15,852 $ 20,115 $ 18,970
Cash Returned to Shareholders During the Year
Dividends paid $ 53,446 $ 51,805 $ 50,664 $ 48,873 $ 47,266
Purchases of treasury shares 716 13,784 40,089 — 11,158
Total $ 54,162 $ 65,589 $ 90,753 $ 48,873 $ 58,424
(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) Return on assets is calculated as net income divided by monthly average assets.
(e) 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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