# EDGAR Filing Document

**Accession Number:** 0000109563
**File Stem:** 0000109563-25-000103
**Filing Date:** 2025-10
**Character Count:** 26560
**Document Hash:** b3cf7baec6a61ba293b0bba9caf51365
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000109563-25-000103.hdr.sgml**: 20251028

**ACCESSION NUMBER**: 0000109563-25-000103

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251028

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251028

**DATE AS OF CHANGE**: 20251028

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** APPLIED INDUSTRIAL TECHNOLOGIES INC
- **CENTRAL INDEX KEY:** 0000109563
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-MACHINERY, EQUIPMENT & SUPPLIES [5080]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 340117420
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-02299
- **FILM NUMBER:** 251421686

**BUSINESS ADDRESS:**
- **STREET 1:** ONE APPLIED PLAZA
- **CITY:** CLEVELAND
- **STATE:** OH
- **ZIP:** 44115-5056
- **BUSINESS PHONE:** 216-426-4753

**MAIL ADDRESS:**
- **STREET 1:** ONE APPLIED PLAZA
- **CITY:** CLEVELAND
- **STATE:** OH
- **ZIP:** 44115-5056

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BEARINGS INC /OH/
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BROWN JIM STORES INC
- **DATE OF NAME CHANGE:** 19600201

?xml version='1.0' encoding='ASCII'? ait-20251028

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934**

October 28, 2025

Date of Report (date of earliest event reported)

**APPLIED INDUSTRIAL TECHNOLOGIES, INC.** 

**(Exact name of registrant as specified in its charter)**

---

| | | | |
|:---|:---|:---|:---|
| **Ohio** | **1-2299** | **1-2299** | **34-0117420** |
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| **One Applied Plaza** | **Cleveland** | **Ohio** | **44115** |
| (Address of Principal Executive Offices) | | | (Zip Code) |

---

**(216) 426-4000** 

Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> <u>Common Stock, without par value</u> <u>AIT</u> <u>New York Stock Exchange</u>

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

□

------

ITEM 2.02. &nbsp;&nbsp;&nbsp;&nbsp;RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

&nbsp;&nbsp;&nbsp;&nbsp;On October 28, 2025, Applied Industrial Technologies, Inc. ("Applied") issued a press release related to its earnings for the fiscal year 2026 first quarter ended September 30, 2025. The release is attached as Exhibit 99.1 to this Report on Form 8-K.

&nbsp;&nbsp;&nbsp;&nbsp;The information in this Report on Form 8-K, including the Exhibit, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

ITEM 9.01 &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND EXHIBITS

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | <u>[Press release of Applied Industrial Technologies, Inc. dated October 2](a8k10282025releaseex991.htm)[8](a8k10282025releaseex991.htm)[, 202](a8k10282025releaseex991.htm)[5](a8k10282025releaseex991.htm)[.](a8k10282025releaseex991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

<u>SIGNATURE</u>

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| | APPLIED INDUSTRIAL TECHNOLOGIES, INC. |
| | (Registrant) |
| | By: <u>/s/ Jon S. Ploetz</u>  |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jon S. Ploetz, Vice President-General Counsel & Secretary |
| Date: October 28, 2025 |  |

---

## Exhibit 99.1

EXHIBIT 99.1

![appliedlogo.jpg](appliedlogo.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Financial Release** 

***For Immediate Release***

**Applied Industrial Technologies Reports Fiscal 2026 First Quarter Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net Sales of $1.2 Billion Up 9.2% YoY; Up 3.0% on an Organic Basis*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net Income of $100.8 Million, or $2.63 Per Diluted Share Up 11.4% YoY*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Operating Income of $129.0 Million; EBITDA of $146.3 Million Up 13.4% YoY*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Operating Cash Flow of $119.3 Million; Free Cash Flow of $112.0 Million*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Increasing FY26 EPS Guidance to $10.10 to $10.85*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reiterate FY26 Sales and EBITDA Margin Guidance*

**CLEVELAND, OHIO (October 28, 2025)** – Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2026 first quarter ended September 30, 2025.

Net sales for the quarter of $1.2 billion increased 9.2% over the prior year. The change includes a 6.3% increase from acquisitions, partially offset by a negative 0.1% impact from foreign currency translation. Excluding these factors, sales increased 3.0% on an organic basis reflecting a 4.4% increase in the Service Center segment and a 0.4% decrease in the Engineered Solutions segment. The Company reported net income of $100.8 million, or $2.63 per share, and EBITDA of $146.3 million. On a pre-tax basis, results include $2.6 million ($0.05 after tax per share) of LIFO expense compared to $2.0 million ($0.04 after tax per share) of LIFO expense in the prior-year period.

Neil A. Schrimsher, Applied's President & Chief Executive Officer, commented, "We had a solid first quarter, delivering double-digit EBITDA and EPS growth that exceeded our expectations. Total sales increased 9% year over year on stronger organic sales growth and M&A contribution. Organic growth was led by our shorter-cycle Service Center segment reflecting traction with internal initiatives, firming technical MRO demand, and our industry position. Engineered Solutions segment organic sales were relatively unchanged from the prior year but remain favorably positioned with segment orders continuing to trend positive. In addition, favorable operating leverage, cost control, and channel execution resulted in first quarter EBITDA margins of 12.2% expanding nearly 50 basis points over the prior-year period, which was ahead of our guidance. Overall, I'm encouraged by our teams' ongoing execution and the positive momentum building across Applied."

Mr. Schrimsher added, "Following first quarter results, we are reiterating fiscal 2026 sales and EBITDA margin guidance established in mid-August. Near term, we expect improvement in end-market demand to remain gradual and bifurcated as macro and trade policy uncertainty persists into the seasonally slower fall and winter months. Combined with ongoing inflationary pressures and an evolving tariff backdrop, we believe a prudent approach to guidance remains warranted at this time. That said, we remain constructive on our set-up and positive indications that continue to develop. Customer sentiment continues to gradually improve, and we are making solid progress on various initiatives that are expanding new business funnels and growth opportunities. These dynamics could be further catalyzed by lower interest rates and reemerging capital investment across the North American industrial sector in coming quarters. Lastly, our M&A pipeline remains active and in position to supplement our growth and earnings potential."

------

**Fiscal 2026 Guidance**

Today, the Company is modestly increasing fiscal 2026 EPS guidance to a range of $10.10 to $10.85 (prior $10.00 to $10.75) to primarily reflect fiscal 2026 first quarter performance and a slightly lower diluted share count assumption reflecting fiscal 2026 first quarter share repurchases. The Company is maintaining guidance for sales of up 4% to up 7% including up 1% to 4% on an organic basis, as well as EBITDA margins of 12.2% to 12.5%. Guidance incorporates ongoing macro uncertainty tied to the evolving trade and tariff backdrop, as well as inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks.

**Dividend**

Today the Company also announced that its Board of Directors declared a quarterly cash dividend of $0.46 per common share, payable on November 28, 2025, to shareholders of record on November 14, 2025.

**Conference Call Information**

The Company will host a conference call at 10 a.m. ET today to discuss the quarter's results and outlook. A live audio webcast and supplemental presentation can be accessed on our Investor Relations site at https://ir.applied.com. To join by telephone, dial 800-715-9871 (toll free) or 646-307-1963 using conference ID 7388794. Replays of the call will be available via webcast, as well as by telephone for one week by dialing 800-770-2030 (toll free) using conference ID 7388794.

**About Applied**<sup>®</sup>

Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.

This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as "expect," "will," "guidance," "assume," "believe," and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.

\# \# \#

**CONTACT INFORMATION**

Ryan D. Cieslak

Director – Investor Relations & Treasury

216-426-4887 / rcieslak@applied.com

------

---

| |
|:---|
| **APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES**<br>**CONDENSED STATEMENTS OF CONSOLIDATED INCOME** |
| (Unaudited) |
| (In thousands, except per share data) |

---

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** |
| | **2025** | **2024** |
| **Net Sales** | $**1199523** | $**1098944** |
| Cost of sales | 838094 | 773862 |
| **Gross Profit** | **361429** | **325082** |
| Selling, distribution and administrative expense, |  |  |
| including depreciation | 232399 | 211910 |
| **Operating Income** | **129030** | **113172** |
| Interest expense (income), net | 993 | (627) |
| Other (income) expense, net | (548) | (2281) |
| **Income Before Income Taxes** | **128585** | **116080** |
| Income tax expense | 27778 | 24017 |
| **Net Income** | $**100807** | $**92063** |
| **Net Income Per Share - Basic** | $**2.67** | $**2.40** |
| **Net Income Per Share - Diluted** | $**2.63** | $**2.36** |
| **Average Shares Outstanding - Basic** | **37757** | **38398** |
| **Average Shares Outstanding - Diluted** | **38271** | **38944** |

---

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

1) Inventories are valued at average cost, using the last-in, first-out (LIFO) method for U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination.

------

---

| |
|:---|
| **APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES**<br>**CONDENSED CONSOLIDATED BALANCE SHEETS** |
| (Unaudited) |
| (In thousands) |

---

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **June 30,**<br>**2025** |
| **<u>Assets</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $418716 | $388417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 753443 | 769699 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 521675 | 505337 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 71457 | 84020 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 1765291 | 1747473 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, net | 129532 | 128154 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease assets, net | 185730 | 188654 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangibles, net | 338895 | 348600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 699862 | 699374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 66164 | 63289 |
| **Total Assets** | $**3185474** | $**3175544** |
| **<u>Liabilities</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $276855 | $280124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 220900 | 246027 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 497755 | 526151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 572300 | 572300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 231664 | 232573 |
| **Total Liabilities** | **1301719** | **1331024** |
| **Shareholders' Equity** | **1883755** | **1844520** |
| **Total Liabilities and Shareholders' Equity** | $**3185474** | $**3175544** |

---

------

---

| |
|:---|
| **APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES**<br>**CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS** |
| (Unaudited) |
| (In thousands) |

---

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** |
| | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** |
| | **2025** | **2024** |
| **<u>Cash Flows from Operating Activities</u>** |  |  |
| **Net income** | $**100807** | $**92063** |
| Adjustments to reconcile net income to net cash provided |  |  |
| by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization of property | 6486 | 5924 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles | 10203 | 7600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for losses on accounts receivable | (1671) | 1056 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of stock appreciation rights | 1494 | 1326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other share-based compensation expense | 1831 | 1675 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of acquisitions | (584) | 16587 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 751 | 1516 |
| **Net Cash provided by Operating Activities** | **119317** | **127747** |
| **<u>Cash Flows from Investing Activities</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of businesses, net of cash acquired | (2280) | (10498) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (7301) | (5549) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from property sales | 35 | 831 |
| **Net Cash used in Investing Activities** | **(9546)** | **(15216)** |
| **<u>Cash Flows from Financing Activities</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt repayments |  | (63) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap settlement receipts | 2698 | 3738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of treasury shares | (53175) | (9980) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | (17383) | (14218) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition holdback payments | (1210) | (1210) |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid for shares withheld for equity awards | (9495) | (12314) |
| **Net Cash used in Financing Activities** | **(78565)** | **(34047)** |
| Effect of Exchange Rate Changes on Cash | (907) | (581) |
| Increase in cash and cash equivalents | 30299 | 77903 |
| Cash and Cash Equivalents at Beginning of Period | 388417 | 460617 |
| **Cash and Cash Equivalents at End of Period** | $**418716** | $**538520** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;

---

| |
|:---|
| **APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES**<br>**SUPPLEMENTAL INFORMATION**<br>**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES** |
| (Unaudited) |
| (In thousands) |

---

---

| |
|:---|
| The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures do not have a standard definition, it may not be possible to compare these non-GAAP financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. |
| The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures do not have a standard definition, it may not be possible to compare these non-GAAP financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. |
| The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures do not have a standard definition, it may not be possible to compare these non-GAAP financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. |
| The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures do not have a standard definition, it may not be possible to compare these non-GAAP financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. |

---

**Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| | **2025** | **2024** |
| **Net Income** | $**100807** | $**92063** |
| &nbsp;&nbsp;&nbsp;Interest (income) expense, net | 993 | (627) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 27778 | 24017 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization of property | 6486 | 5924 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | 10203 | 7600 |
| **EBITDA** | $**146267** | $**128977** |
| The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization. EBITDA is a non-GAAP financial measure which excludes items that may not be indicative of core operating results. | The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization. EBITDA is a non-GAAP financial measure which excludes items that may not be indicative of core operating results. | The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization. EBITDA is a non-GAAP financial measure which excludes items that may not be indicative of core operating results. |
| **Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure:** | **Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure:** | **Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure:** |
|  | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** |
|  | **2025** | **2024** |
| **Net Cash provided by Operating Activities** | $**119317** | $**127747** |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (7301) | (5549) |
| **Free Cash Flow** | $**112016** | $**122198** |
| Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures. | Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures. | Free cash flow is a non-GAAP financial measure and is defined as net cash provided by operating activities less capital expenditures. |

---

<br>