Applied Industrial Technologies 3Q16 Earnings Call Notes

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Neil A. Schrimsher – President, Chief Executive Officer & Director

Saw a stabilization as we went through the quarter, April was consistent with that

” For us, our sales per day, we had improvements really each month throughout the quarter, with a couple of days remaining April is consistent with March. So, perhaps I’d say consistent with others then, right, (17:10) seeing a stabilization perhaps as we go through the balance of our fiscal year and perhaps on through calendar 2016.”

M&A pipeline is productive

“I’d say short answer would be yes, but our M&A pipeline remains productive. We’re busy, I’d say, we have prospects or opportunities at really each stage of our funnel.”

Didn’t see any noticeable decline in the back half of March

” I’d say no noticeable decline in the back-half of March. So, I wouldn’t have seen or noticed that. And I would say April is consistent. Usually at month end, you can have a pickup in volume activity – hey, to be determined if we see that over this last couple of days, but it is looking like March, which was stronger as we moved through quarter three and we’ll look to being better in May and June to close out the quarter.”

Mark O. Eisele – CFO, Treasurer, VP & Head-Investor Relations

Did see an increase in bad debt expense relating to oil and gas companies

“Yeah. Adam, I’m happy to do that. I would say the majority of the bad debt expense increase really is relating to reserves that we’re putting on the books for receivables for our upstream oil and gas subsidiaries. And so they’ve had a meaningful increase for the whole year.