Applied Industrial Technologies, Inc. (NYSE:AIT) Q3 2022 Earnings Conference Call April 28, 2022 10:00 AM ET

Company Participants

Ryan Cieslak - Director, Investor Relations and Treasury

Neil Schrimsher - President & Chief Executive Officer

Dave Wells - Chief Financial Officer

Conference Call Participants

Chris Dankert - Loop Capital

Michael McGinn - Wells Fargo

David Manthey - Baird

Ken Newman - KeyBanc Capital Markets

Barry Haimes - Sage Asset Management

Operator

Welcome to the Fiscal 2022 Third Quarter Earnings Call for the Applied Industrial Technologies. My name is Anne and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury. Ryan you may begin.

Ryan Cieslak

Thanks Anne and good morning to everyone on the call. This morning, we issued our earnings release and supplemental investor deck detailing our third quarter results. Both of these documents are available in the Investor Relations section of applied.com.

Just before we begin, a reminder, we'll discuss our business outlook and make forward-looking statements. All forward-looking statements are based on current expectations, subject to certain risks including the potential impact from the COVID-19 pandemic, as well as trends in sectors and geographies, the success of our business strategy, and other risk factors.

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 statement. In addition, the conference call will use non-GAAP financial measures, which are subject to the qualifications referenced in those documents.

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

With that, I'll turn it over to Neil.

Neil Schrimsher

Thanks Ryan and good morning everyone. We appreciate you joining us and hope everyone is doing well. I'll begin today with some perspective on our third quarter results, current industry conditions, and our expectations going forward. Dave will follow with more specific detail on the quarter's performance and provide some additional color on our outlook and guidance, which we raised this morning. I'll then close with some final thoughts.

Overall, we had a very good quarter, further demonstrating the positive momentum sustaining across our business. We grew EBITDA and EPS 25% and 27%, respectively on approximately 17% sales growth; expanded EBITDA margins above 11%; and generated solid cash flow, while continuing to invest across our business for future growth.