# EDGAR Filing Document

**Accession Number:** 0000109563
**File Stem:** 0000109563-25-000063
**Filing Date:** 2025-8
**Character Count:** 31754
**Document Hash:** a1f3b9e99c6ce5737c3e700d7477ace1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000109563-25-000063.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0000109563-25-000063

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250814

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

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**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:** 251214818

**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-20250814

**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**

August 14, 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.

□

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

&nbsp;&nbsp;&nbsp;&nbsp;On August 14, 2025, Applied Industrial Technologies, Inc. ("Applied") issued a press release related to its earnings for the fiscal year 2025 fourth quarter ended June 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.&nbsp;&nbsp;&nbsp;&nbsp;

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

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | <u>[Press release of Applied Industrial Technologies, Inc. dated August 1](a8k8142025releaseexhibit991.htm)[4](a8k8142025releaseexhibit991.htm)[, 202](a8k8142025releaseexhibit991.htm)[5](a8k8142025releaseexhibit991.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: August 14, 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 2025 Fourth Quarter** 

**and Full-Year Results; Issues Guidance for Fiscal 2026**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Fourth Quarter Net Sales of $1.2 Billion Up 5.5% YoY; Up 0.2% on an Organic Daily Basis*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Fourth Quarter Net Income of $107.8 Million, or $2.80 Per Share Up 5.9% YoY*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Fourth Quarter EBITDA of $153.0 Million Down 0.3% YoY*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Full-Year Net Sales of $4.6 Billion Up 1.9% YoY; Down 2.3% on an Organic Daily Basis*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Full-Year Net Income of $393.0 Million, or $10.12 Per Share Up 3.8% vs. Prior-Year Adjusted EPS*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Full-Year EBITDA of $562.1 Million Up 1.6% YoY*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Establishes Fiscal 2026 Guidance Including Total Sales +4% to +7% and EPS of $10.00 to $10.75*

**CLEVELAND, OHIO (August 14, 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 2025 fourth quarter and full year ended June 30, 2025.

Net sales for the quarter of $1.2 billion increased 5.5% over the prior year. The change includes a 6.5% increase from acquisitions, partially offset by a negative 0.8% selling day impact and a negative 0.4% impact from foreign currency translation. Excluding these factors, sales increased 0.2% on an organic daily basis reflecting a 1.8% increase in the Engineered Solutions segment, partially offset by a 0.4% decrease in the Service Center segment. The Company reported net income of $107.8 million, or $2.80 per share, and EBITDA of $153.0 million. On a pre-tax basis, results include $2.9 million ($0.06 after tax per share) of LIFO expense compared to $0.3 million ($0.01 after tax per share) of LIFO expense in the prior-year period.

For the twelve months ended June 30, 2025, sales of $4.6 billion increased 1.9% compared with the prior year. On an organic daily basis, sales declined 2.3%. Net income was $393.0 million, or $10.12 per share, and EBITDA was $562.1 million. On a pre-tax basis, full-year results include $7.7 million ($0.16 after tax per share) of LIFO expense compared to $13.0 million ($0.25 after tax per share) of LIFO expense in the prior-year period.

Neil A. Schrimsher, Applied's President & Chief Executive Officer, commented, "We ended fiscal 2025 on an encouraging note with fourth quarter sales and EPS exceeding our expectations. Sales returned to positive organic growth with underlying trends improving as the quarter progressed. This was driven by stronger than expected Engineered Solutions segment sales where our teams executed exceptionally well, including capitalizing on recent order strength and firming demand across several verticals. Service Center segment sales held steady against the muted end-market backdrop with sequential trends seasonally strong. M&A contribution was also encouraging with solid progress continuing to develop at Hydradyne. Lastly, we delivered another solid quarter of cash generation, culminating in record free cash flow in fiscal 2025 that enabled meaningful capital deployment throughout the year. Overall, I am extremely proud of what we accomplished within a challenging demand landscape. Our consistent outperformance reflects our commitment to excellence and ability to create value for all stakeholders in any environment."

Mr. Schrimsher added, "Moving into fiscal 2026, we are highly focused on accelerating growth and making further progress on our long-term strategic objectives. Positive momentum has sustained into the first quarter with organic sales up year over year by an estimated 4% to date. Combined with greater contribution from company-specific growth initiatives, structural mix tailwinds, and easier comparisons, we are constructive on our set-up moving forward. That said, ongoing trade and interest rate uncertainty continue to impact broader demand visibility and customer capex decisions. We are mindful these dynamics could continue to restrain growth near term yet potentially create a strong demand environment once additional clarity emerges as U.S. industrial MRO and investment activity catches up to the favorable secular backdrop."

------

**Fiscal 2026 Guidance and Outlook** 

Today the Company is introducing fiscal 2026 EPS guidance in the range of $10.00 to $10.75 based on assumptions for total sales of up 4% to 7% including up 1% to 4% on an organic basis, as well as EBITDA margins of 12.2% to 12.5%. Guidance assumes ongoing economic, interest rate, and tariff related uncertainty continues to impact broader end-market demand through the first half of the year. Guidance also assumes incremental sales contribution from pricing compared to fiscal 2025, as well as ongoing inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks.

Mr. Schrimsher concluded, "While we are encouraged by recent sales momentum heading into fiscal 2026, we are taking a prudent approach to our initial outlook pending greater clarity on trade policy, interest rates, and broader macro conditions. That said, as our recent results show, we are in a strong position to manage through various macro and trade scenarios as they develop. In addition, we expect another meaningful year of cash generation supporting ongoing M&A, share buybacks, and dividend growth. Lastly, our technical industry position, manufacturing domain expertise, and aligned strategy provide a compelling long-term growth and margin expansion opportunity as various secular and structural tailwinds continue to develop across the U.S. industrial economy. Our track record over the past five years provides strong evidence of our ability to deliver top-tier earnings growth and margin expansion. This includes compounded annual growth for EBITDA and EPS of 14% and 22%, respectively, as well as gross margins and EBITDA margins expanding 130 and 330 basis points, respectively. We look forward to building on this track record in fiscal 2026 and beyond as our performance and evolution continues to unfold."

**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 7270709.

**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," "outlook," "expect," 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

------

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

---

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

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Sales** | $1224730 | $1160675 | $4563424 | $4479406 |
| Cost of sales | 849993 | 804440 | 3180265 | 3142753 |
| **Gross Profit** | 374737 | 356235 | 1383159 | 1336653 |
| Selling, distribution and administrative expense, including depreciation | 239652 | 216892 | 884630 | 840830 |
| **Operating Income** | 135085 | 139343 | 498529 | 495823 |
| Interest expense (income), net | 1322 | (671) | 612 | 2831 |
| Other income, net | (1281) | (921) | (3050) | (5138) |
| **Income Before Income Taxes** | 135044 | 140935 | 500967 | 498130 |
| Income tax expense | 27208 | 37444 | 107979 | 112368 |
| **Net Income** | $107836 | $103491 | $392988 | $385762 |
| **Net Income Per Share - Basic** | $2.84 | $2.68 | $10.26 | $9.98 |
| **Net Income Per Share - Diluted** | $2.80 | $2.64 | $10.12 | $9.83 |
| **Average Shares Outstanding - Basic** | 38008 | 38568 | 38289 | 38672 |
| **Average Shares Outstanding - Diluted** | 38511 | 39153 | 38816 | 39257 |

---

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

1) Applied uses the last-in, first-out (LIFO) method of valuing U.S. inventory. An actual valuation of inventory under the LIFO method can only be made 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.<br>

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

---

---

| | | |
|:---|:---|:---|
| | **June 30,**<br> **2025** | **June 30,**<br>**2024** |
| **<u>Assets</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $388417 | $460617 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 769699 | 724878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 505337 | 488258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 84020 | 96148 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 1747473 | 1769901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, net | 128154 | 118527 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease assets, net | 188654 | 133289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangibles, net | 348600 | 245870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 699374 | 619395 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 63289 | 64928 |
| **Total Assets** | $**3175544** | $**2951910** |
| **<u>Liabilities</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $280124 | $266949 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt |  | 25055 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 246027 | 209096 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 526151 | 501100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 572300 | 572279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 232573 | 189750 |
| **Total Liabilities** | **1331024** | **1263129** |
| **Shareholders' Equity** | **1844520** | **1688781** |
| **Total Liabilities and Shareholders' Equity** | $**3175544** | $**2951910** |

---

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

---

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| | | |
|:---|:---|:---|
| | **Year Ended June 30,** | **Year Ended June 30,** |
| | **Year Ended June 30,** | **Year Ended June 30,** |
| | **2025** | **2024** |
| **<u>Cash Flows from Operating Activities</u>** |  |  |
| Net income | $392988 | $385762 |
| Adjustments to reconcile net income to net cash provided |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization of property | 24899 | 23431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles | 35581 | 28923 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for (recoveries of) losses on accounts receivable | 5978 | (205) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of stock appreciation rights | 4713 | 3448 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other share-based compensation expense | 7289 | 9496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of acquisitions | 26926 | (77079) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (5989) | (2383) |
| **Net Cash provided by Operating Activities** | **492385** | **371393** |
| **<u>Cash Flows from Investing Activities</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of businesses, net of cash acquired | (293406) | (72090) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (27187) | (24864) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from property sales | 1841 | 576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Life insurance proceeds |  | 971 |
| **Net Cash used in Investing Activities** | **(318752)** | **(95407)** |
| **<u>Cash Flows from Financing Activities</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings under revolving credit facility |  | 408 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt repayments | (25106) | (25251) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap settlement receipts | 12095 | 14470 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of treasury shares | (152837) | (73388) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | (63702) | (55879) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition holdback payments | (1210) | (681) |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid for shares withheld for equity awards | (14847) | (16274) |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock appreciation rights and options |  | 127 |
| **Net Cash used in Financing Activities** | **(245607)** | **(156468)** |
| **Effect of Exchange Rate Changes on Cash** | (226) | (2937) |
| **(Decrease) Increase in cash and cash equivalents** | (72200) | 116581 |
| **Cash and Cash Equivalents at Beginning of Period** | 460617 | 344036 |
| **Cash and Cash Equivalents at End of Period** | $**388417** | $**460617** |

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

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

---

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| |
|:---|
| The Company supplemented 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 are not standardized, it may not be possible to compare these 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. 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 supplemented 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 are not standardized, it may not be possible to compare these 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. 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 supplemented 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 are not standardized, it may not be possible to compare these 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. 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 supplemented 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 are not standardized, it may not be possible to compare these 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. 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. |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and <br>Adjusted Net income per share, non-GAAP financial measures:** | **Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and <br>Adjusted Net income per share, non-GAAP financial measures:** | **Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and <br>Adjusted Net income per share, non-GAAP financial measures:** | **Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and <br>Adjusted Net income per share, non-GAAP financial measures:** | **Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and <br>Adjusted Net income per share, non-GAAP financial measures:** | **Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and <br>Adjusted Net income per share, non-GAAP financial measures:** |
| | **Year Ended June 30, 2024** | **Year Ended June 30, 2024** | **Year Ended June 30, 2024** | **Year Ended June 30, 2024** | **Year Ended June 30, 2024** |
| | **Pre-tax** | **Tax Effect** | **Net of Tax** | **Per Share<br>Diluted Impact** | **Tax Rate** |
| **Net income and net income per share** | $**498130** | $**112368** | $**385762** | $**9.83** | **22.6%** |
| &nbsp;&nbsp;&nbsp;Tax valuation allowance adjustment |  | 3046 | (3046) | (0.08) | 0.6% |
| **Adjusted net income and net income per share** | $**498130** | $**115414** | $**382716** | $**9.75** | **23.2%** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:** | **Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:** | **Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:** | **Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:** | **Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Year Ended<br>June 30,** | **Year Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Income** | $**107836** | $**103491** | $**392988** | $**385762** |
| &nbsp;&nbsp;&nbsp;Interest expense (income), net | 1322 | (671) | 612 | 2831 |
| &nbsp;&nbsp;&nbsp;Income tax expense | 27208 | 37444 | 107979 | 112368 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization of property | 6466 | 5864 | 24899 | 23431 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | 10196 | 7322 | 35581 | 28923 |
| **EBITDA** | $**153028** | $**153450** | $**562059** | $**553315** |
| The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. | The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. | The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. | The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. | The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, 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:** | **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>June 30,** | **Three Months Ended<br>June 30,** | **Year Ended<br>June 30,** | **Year Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Net Cash provided by Operating Activities** | $**147048** | $**119234** | $**492385** | $**371393** |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (8892) | (7510) | (27187) | (24864) |
| **Free Cash Flow** | $**138156** | $**111724** | $**465198** | $**346529** |
| Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. | Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. | Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. | Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. | Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. |

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