Applied Industrial Technologies FY 4Q16 Earnings Call Notes

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Applied Industrial Technologies (AIT) Neil A. Schrimsher on Q4 2016

Seeing some sequential improvements in August

“Sure. Sure. So, I’d say, Will, our sales per day trends included declines in April and May with improvement in June. July somewhat as expected with seasonality, softer than June. And through the early days of August, we’re seeing sequential improvements in that.”\

Positive industries are construction relatedCustomers took longer downtime in July now planning for more projects in the second half

” think around July, and we’ll see going forward customers took longer time out of their production. And I think many had less preventative maintenance productivity-type projects going on in that time period. Now, as they’re back up and running, right, we see that brake fix demand coming through. And then, it’s early but the dialogue for those that would have planned downtimes, which more of that would be towards the end of the calendar year, they would be slating projects that would positively impact their uptime and their productivity. So, we experienced it around that July time period, but I think too early to call what it may look like going forward.”

Mark O. Eisele – Chief Financial Officer, Treasurer & Vice President

Sales down 7.2% y/y

Thanks, Neil. Good morning, everyone. I’ll provide some additional insight regarding our fourth quarter fiscal 2016 financial performance. Our sales per day rate during the quarter was $9.91 million, 7.2% below the prior year quarter and 0.7% below our rate in the March quarter. We had 64 selling days in the June 2016 quarter and 63.5 selling days in the June 2015 quarter.”