Applied Industrial Technologies, Inc. (NYSE:AIT) Q3 2018 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 10:00 am ET

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Applied Industrial Technologies, Inc. (NYSE:AIT) Q3 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Fiscal 2018 Third Quarter Earnings Call for Applied Industrial Technologies. My name is Virgil, and I'll be your operator for today's call. [Operator Instructions]

I will now turn the call over to Julie Kho. Julie, you may begin.

Executive
Julie Kho

Thank you, Virgil, and good morning, everyone. Our release was issued this morning before the market opened. If you haven't received it, you can retrieve it from our website at applied.com. Also a supplemental investor deck detailing latest quarter results is available for reference on the Investor Relations portion of our website. Our replay of today's broadcast will be available for the next two weeks as noted in the press release.

Before we begin, I would like to remind everyone that we'll discuss Applied's business outlook during the conference call and make statements that are considered forward-looking. All forward-looking statements, including those made during the question-and-answer portion, speak only as of the date hereof and are based on current expectations that are subject to certain risks, including trends in various industry sectors and geographies, the success of our various business strategies and other risk factors provided in our press release and identified in Applied's most recent periodic report and other filings made with the SEC, which are available at the Investor Relations section of our website at applied.com. Accordingly, actual results may differ materially from those expressed in the forward-looking statements. The company undertakes no obligation to update publicly or revise any forward-looking statements, whether due to new information or events or otherwise.

In addition, the conference call includes the use of non-GAAP financial measures. These measures are explained in our press release and in the supplemental presentation material and are subject to the qualifications referenced in those documents. In compliance with SEC Regulation FD, this teleconference is being made available to the media and the general public as well as to analysts and investors. Because the teleconference and its webcast are open to all constituents and prior notification has been widely and unselectively disseminated, all content of the call will be considered fully disclosed.

Our speakers today include Neil Schrimsher, Applied's President and Chief Executive Officer; and Dave Wells, our Chief Financial Officer.

I will now turn the call over to Neil.

Executive
Neil A. Schrimsher

Thank you, Julie, and good morning everyone. We appreciate you joining us. I'll begin with a brief recap of our results. Our net sales for the third quarter grew 21.8% to $827.7 million from $679.3 million in the same quarter a year ago. Net income for the quarter increased 24.1% to $36.6 million from $29.5 million, and earnings per share rose 24% to $0.93 per share compared with $0.75 per share in the prior year quarter.

Our strong third quarter results reflect broad-based execution across our business groups, along with the expected two-month contributions from the recent acquisition of FCX Performance. While less than 90 days since closing, I could not be more pleased or excited about the efforts today. I want to thank the FCX team