AIT - Earnings call transcript Q4 2018 | Applied Industrial Technologies, Inc.

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Operator

Welcome to the Fiscal 2018 Fourth Quarter and Year-End Earnings Call for Applied Industrial Technologies. My name is Mariana, 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 this conference is being recorded. the to turn Kho. now will call Julie over I Julie, begin. you may

Julie Kho

results. This good investor issued quarter at available applied.com. and our you Relations morning the deck documents Investor on morning, latest supplement Thank website and everyone. was of are release our detailing These earning

next release. Our today's the be noted as available will of weeks in replay for broadcast two the press

of date are business industry strategies and risks, as including like begin, only of and remind everyone are the that speak certain that and Applied's other I various make in discuss success the call conference would business during to forward-looking. sectors based expectations statements, outlook on we various forward-looking the current Before we'll trends during to geographies, made All including and subject are the considered hereof our statements that those portion, question-and-answer our factors Investor at recent otherwise. other new report and most statements. or differ forward-looking provided may and are applied.com. risk at forward-looking in statements, Applied's with the revise which in identified our in website periodic obligation Company section due publicly undertakes SEC, of those available made no press whether filings Accordingly, to expressed results release materially the to or Relations any from events update actual the The or information

being investors. the In and measures. constituents conference webcast as In is compliance will be general in use well material are the open to call are presentation disclosed. notification as the fully Regulation all measures These FD, Because financial been and in of in are includes those explained qualifications to and has addition, prior the available this all press widely made subject unselectively non-GAAP content with and referenced its considered analysts to documents. call and teleconference the disseminated, public media and supplemental the of to and our release the teleconference SEC the

Chief to and Wells, Applied's Officer. include now over Our Chief Financial speakers will Schrimsher, Executive I Neil. our Dave Officer; call today President Neil and the turn

Neil Schrimsher

good and of joining Julie, results and begin you you, everyone. summary quarter for brief full-year. with the morning, appreciate our We I'll Thank us. a

sales net the a with per income year-ago. fourth or was compared $XXX.X XX.X share quarter million $X.XX grew from for the fiscal XXXX. $XXX.X to XX.X% $X.XX in per Our same the the for or Net million $XX.X quarter quarter fourth in quarter of million million share

noted per financial of non-routine As a our year favorable deck, benefit in results share. supplemental tax $X.XX and or million press include release prior $XX.X

performance and XX-year pleased in with be XXXX full and our $X.XX up a for sales growing our backdrop, EBITDA flow of associates, year. capabilities $X.XX prior Adjusted our with of market. investments, compared share. share business EPS in reach increase adjusted including XX.X% XX.X% to our control to was of for continue $XX geographic Net a fiscal our to added Excluding X.X% successful enhancing fluid from record industrial critical share. to an $X.XX increased channels charges strengthen year and benefit, best-in-class quarter the offering, proved strategic a value exciting fourth differentiation and billion XXXX income the in distributor. or mentioned expanding solutions, value increase exclusive of suppliers, engineered services, products core EPS $X.XX Through was was or tax progress compared the Overall with fiscal one-time we were full-year prior $XXX.X year are compared million last transaction $X.XX related billion represents XX.X% very fiscal fiscal EPS an previously. the XX.X% per FCX added excludes record This enhanced to as per year. year continued quarter. per the leadership we dedicated systems, record quarter power, which benefit non-routine our this and celebration XXXX for our sales anniversary the financial as million a Net $X.XX

Additionally, further new with Performance focus members we our new and drive demonstrate end our continuous excited the and customers improvements business to year for we today. strong our with customer progress are extremely our users. and continue engagement are organization, team FCX to and Across current pleased fiscal the opportunities and grow

a our for at turn financial call Now to I'll this at results. over time, the closer Dave look

David Wells

good Neil, details results. to insight briefly further will recap on XXXX and fiscal then financial After on year our XXXX and recent full-year that, I I some with morning our begin Thanks further move outlook. performance on will most everyone. quarter provide

morning the points reminder, issued this talking for a financial is recapping your supplemental investor additional performance deck key information. available As

in XX.X% a the sales segment points mentioned, sales Performance increased inclusive ending basis by sequentially quarter. of Acquisitions foreign incremental increased Neil a while and the basis XX segment the XXXX. exchange ending by June within quarter Center-Based sales year our points. favorability. per As grew of XX X.X% quarter Exclude Service of currency March impact favorable over XX.X% basis this year-over-year. increased for quarter. fourth of sales benefit topline year's by day the prior XX another XXXX impact had of Fourth quarter increased fluctuations acquisition, Acquisitions FCX foreign in impact Distribution Organically, sales from the half points from the selling XX.X% one the X% this $XX million currency added day X.X% our increased or

increase days Excluding acquisitions in X.X%, and adjusted currency an this X.X% year's from of by benefit business increased the impact incremental quarter. translation, day and sales half driven the organic by X.X%

$XXX FCX Flow Acquisitions and the XXX.X% year. fourth the million or to Control compared segment Power addition prior fluid our as quarter this year-over-year to namely performance sales segment, of segment, XXX.X% Moving within generated increased growth. of

days sales were quarter up differential our million, From of for an the the from driving organic selling year-over-year year-over-year. U.S. XX growth with of geographic inclusive benefit impact or segment operations and quarter perspective, the $XXX generated Excluding the point for X.X% increase acquisitions, sales XX.X% of acquisitions a basis the an in XX.X%.

the adjusted by benefit sales increased from our grew in your from the strong prior over comprised from organic businesses United sales. sales impact, day half days XX.X% organically increased States, X.X% Sales X.X% of geographies X.X% prior of outside increase operations the of the incremental across quarter represented with the versus balance which all performance quarter. and acquisition U.S. XX% growth, Excluding and a year

on Moving margins. gross to

the up quarter gross Our year-over-year. percentage points for XX.X%, XX basis was profit

quarter XX basis acquisition drove points year-over-year. margin Our FCX first full expansion of results of

of profit gross Excluding acquisition, the for business the the benefit margin core FCX was accretive XX.X%.

liquidation. remind prior fourth year I a from benefit lower our will basis points comp prior year point quarter to everyone the that basis XX was LIFO this While quarter included margins XX than gross layer net

our are We FCX results sequentially performance gross improved various basis that excluding points XX driven by pleased margin improvement initiatives. margin our

last XXXX recognized reflect look our results second two point we XX the in despite year. quarters half if the margins at of expansion basis income a organic LIFO prior benefit in fiscal Additionally, the

the distribution by for rates fluctuations quarter. on million, to increased year the an and increased SG&A the or accounted $XX quarter prior XX growth, expenses in in Acquired year-over-year administrative Our absolute same businesses to foreign while prior XX.X% year. the XX.X% currency basis points selling, compared quarter for basis when compared

year-over-year, impact increases based EBITDA of by quarter sales. and annual only currency or for driven Resulting of the million primarily was acquisitions for incentives. merit and the translation, spend higher performance SG&A $XX X.X% the Excluding impact X.X% of the quarter increased

incremental expect to for help as down the SG&A certain performance Excluding to lower fiscal and spend volume deferred fiscal our line impact XXXX upcoming our forward XX% as statutory year-over-year rate fully acquisition blended the rate. for year-over-year be measurement to step the continued the tough of U.S. the to to quarter finally the in We completed legacy the on volumes with FCX of of effective incremental we was margin rate the tax we effective diligence XX.X% in income U.S. rate year range the through a from business. guidance gross XX% to the XX% of taxes despite rate. flow comps the tax XXXX to go year statutory income XX% in leverage pretax now XX% In drive

$XXX balance equity consolidated wish Our strong of sheet shareholders' remains million.

performance fund acquisition. of the the transaction to FCX and borrowing Following culmination

priorities continuing track shareholder consistent increase to by of maintaining capital value focused allocation record our and remain on de-levering dividend Our payments.

inventories Strong initiatives. receivables and million As reduction quarter continued our and improved fund to such generated a there stay results customer reduction for reflects priorities. no operating activity benefit credit X.X capital Cash $XX prior XXX our in traction due initial from recap, from management quarter $XX was was legacy quarter to leverage the activities draw other of quarter past working the $XX.X $XX.X taken Fourth from $XX.X To we bringing million by basis $XXX.X million covenants. generated to demonstrated and performance point quarter. no the strategic current million of in success our the million the under the fourth quarter, times performance Performance execution of in facility operating share acquisition, outstanding revolver business. draw, repurchase revolver the continued the include million year EBITDA FCX in

in of for of acquisitions. and revenues XX.X% X.X% result inclusive excluding billion FCX fiscal the XXXX the results $X.X five fiscal guidelines, XXXX Performance highlights context as months year record we at of had Looking up up year

of dilutive drove of XX.X% our one-time combined X% $XXX systems FCX Continued to EBITDA pretax sales relative incremental execution million basis exclusive income was impact on initiatives FCX charges. of investments of gross acquisition and acquisition. volumes inclusive impact year point initiatives of margin excellence leverage the on operational for of XX the expansion the of a with

XXXX the non-routine one-time fiscal dilutive share of XX% $X.XX share of $X.XX as per FCX adjusted which per tax of EPS Finally, benefit to excludes year-over-year adjusted to compared the cost fiscal acquisition EPS previously which XXXX the noted. increased excludes $X.XX impact

fiscal to a the Our are XX% fiscal Full-year coupled to control drives on the and FCX we to impact our of earnings and we on space portion acquisition look per expect a share of increase our per range new for as Transitioning share. year growth sales XX% in into in noted to flow range in we with forward many of XXXX. momentum press this now outlook fronts the XXXX, in move this the growth. $X.XX of $X.XX as forecasting release, a XXXX was record building

be to to legacy X% Excluding in forecast X% are the FCX, operations our up up from of year-over-year. range sales

operational non-repeat fiscal improvements down increase. opportunities. one-time a also in step XXXX Our well EPS acquisition approximately and the new sales acquisition of of share as forecast coupled a $X.XX costs benefit XX% of the full-year fiscal the FCX benefit guidance reflects XX%. range share with driven coupled growth, as with of $X.XX per of statutory FCX this year-over-year U.S. initiatives increase execution rate an $X.XX expansion portion from associated The to year-over-year to share $X.XX generate a inclusion of the an from per results reflects on an The of from blended approximate margin continued rate the tax FCX by synergy to with XXXX share per $X.XX productivity per

and XX% noted, U.S. the year. XXXX. rate from of $XXX nearly $XX projected Capital million our Combined the we that is million. million be in to from our in coming reflect of year. in anticipate fiscal and to collections expense fiscal from fiscal incremental benefit depreciation for provided in range $XXX rate for will tax inventory generated the the are expenditures with in tax million $XX to effective resulting the Cash expected As initiatives $XX traction XXXX non-cash to range cash XXXX would of XX% the total lower previously be for the operations range anticipated amortization coupled operations to further million

to is range million expense $XX to projected interest full-year $XX from Additionally, million.

our look executing final longer year value Our dividend record allocation the Neil in With I continue track our some summary, acquisitions further will we our over served are payments on increase call comments. execution and and to delevering on some turn our to that, to fiscal of well markets. to forward focus as fiscal as progress with In in by shareholder strategic maintaining pleased capital priorities term and accretive continuing back along with insight strategic continuing XXXX projections now vision into for XXXX. will that on and momentum consistent

Neil Schrimsher

Applied building expanding our our committed we years technical the our XX leveraging leader. distribution and our to benefits mindset foundation At as working further generate together, for to together Dave. MRO well-positioned With winning all stakeholders. on capabilities remain Thanks strong as

expansionary in value North added our Control our base across plan customers adding long Applied's our our $XXX added share the realizing with Flow our propel strategic single-digit new expanding objectives driving billion an leveraging forward of Our and acquisitions continuous beyond growth us industrial active including up acquisitions enhanced sales MRO collective driving And and we expansion years are result greater our new including our leadership, XX% existing achieving sales local groups to long business sales initiatives capabilities to our Leveraging our and accretive of leveraging geographic continuing on core And markets. of all growth. for our presence compound EBITDA business increase per and and added mind our services, execution generate average extending to margin with greater on elements system value the Core five and discipline. serve and expansion plan five accounts product continued potential X% growth growing With and plus will in to cost American expand to offering focus our reach gaining and across including growing excellence improving operational XXXX and range and value customers Power organic maintaining our horizon. five-year supplies full in end than marketing product than accretive and building strategic operational OEM And our growth, revenues staying range through our over improvement finally, expanded million from in to our in maintenance and customers. XXX resulting Fluid continuity $X.X to locations, opportunities users. services products. and mid strategic solutions Product our systems. profitable services excellence margin objectives approaching year, the and investments offerings capabilities across

accelerating will your up success and for We lines for generating to are are confident open momentum, upon build we we now will strong that, and continue value our ongoing stakeholders. our all foundation questions. the With

Operator

you. Thank

from question Cleveland We session. comes first [Operator the will Uhlman question-and-answer Adam begin now Instructions] with Research. Your

Your line open. is

Adam Uhlman

all Hey, records. everybody. Good morning. the Congrats new the - on

Neil Schrimsher

Adam. Thanks

David Wells

Thanks Adam.

Adam Uhlman

with this performance your the and margin profit I for talk wanted we year. start be about fiscal guidance you Could to their and thinking performance? the business next gross gross expectations FCX for - about your how the organic should

David Wells

the we of business, so we good as talked XX looked the accretive some the $X.XX you the midpoint think expect would Sure. the those. half talked I for had as as the we socialized [indiscernible] talked in we the core organic performance gross Starting to there. ‘XX We FCX past target material point very or increases despite the caught as attraction in benefit at around projections EPS the of margin - about of we've margin XXXX then we basis with cost think, with share to lower the results per We've back had expansion as assumption about to culminated transaction. FCX up continue about a impact in about $X.XX we amortization XX

the you again XX% kind on the a So the - margins target and here in expectations the for with seeing to mixes amortization the results true-up mid-XX.X% the the XX% performance we're driving for kind to of of up contribution. which slightly at FCX bit the improved actual FCX range. some right XX% some improved EPS Between plus volume there expectations and margin performance EPS to

Adam Uhlman

fiscal next Okay. be amortization heard then I that to guess, million hear that $XX I for expected I you year, within say that, is this correctly? Gotcha. I think And did

David Wells

amortization, both D&A. That's combination of and depreciation

Adam Uhlman

that had And million Okay. that compares $XX fourth you the in the to quarter.

David Wells

million correct. Yes, I'm I'm at that's amortization. full-year looking $XX had we So sorry a of number.

Adam Uhlman

next stepping be this so why up So year? would amortization much

David Wells

Okay.

here amortization. the XX So and depreciation again was

Adam Uhlman

Thanks. Okay. offline that. follow-up Gotcha. I'll on

Operator

question with from comes [Operator Research. Northcoast Ryan Instructions] next Cieslak Your

open. is line Your

Ryan Cieslak

morning, Good guys. Hey.

Neil Schrimsher

Good morning, Ryan.

David Wells

Ryan. Hi

Ryan Cieslak

the growth it off quarter X% start another on again nice off coming I a just wanted organic daily organic basis. of on growth of to

from comps maybe talk standpoint? you difficult, your Just on growth maybe an guys quarter if for up how first August getting you shaped thoughts how trends can early us July know are organic initial through I but more has looking, any are and

Neil Schrimsher

and I'd fiscal the business off into quarter seasonality considering were year-over-year, July, plant really days the of handful in also right, to and end step single-digits expected for August that it as as increase and really year month. get upper shutdowns that say sequentially can occur down some expected starting July end year comparisons, and has we continued as

Ryan Cieslak

Okay, your in power what to there? that trends as great. out in relative below was think have something And thought it some wasn't as that call but or missing well. would continues to maybe normal I'm I growth, has then looking quarter Neil show out just fluid is something below this happening for stood maybe here would strong that to quarter, Anything I as you nice sequential that was there you or you expectations the maybe

Neil Schrimsher

Well on we've and the that past right, touch I of talked think comparison. classifications maybe in Dave changes some and on segment maybe that influenced will the

at plans. doing also help the on I customers positive double-digit for the with aftermarket the I groups and so growth right the precision look at going XX% look in. how involvement we've continuing energy operating we're backlog if in the XX% And those would year-over-year plus. well. If have a and active lot that at saving I of finished their exceeding the period. got As side performing projects our as machine are say or sustainability momentum of and over up for work type MRO within control customers, companies, and projects fluid we're enhancing the at XX% would they business and it's I the power teens I'd year year-over-year, see look that

where like progress So in power. hey, on at that's fluid we going the and we're

David Wells

prior we the pro from bit statement. a year elaborate as just And up the work noise cleaned Ryan, getting we’re little of forma

reporting the fluid year-over-year we like business as standpoint. management and from reporting power the So business look would at

the looking double-digit that year-over-year. is position and growth at backlog still As Neil up XX% indicated,

So the fundamentals very there still tougher solid comps. against

Ryan Cieslak

Okay. about million you around how was targeted the hop the think and guys synergies for in. year you on And then had actually me the $XX it earlier back out think last update I'll in one so. to with Any or us, laid

that about had seeing progress how update just think what great. or fiscal to maybe that progress If you be here through flows on there, again, with you're some into XXXX, and would

Neil Schrimsher

bet. You

the So socialize about point being synergies million horizon, not thinking share talked those we weighted. equally over we've of $XX five-year

XX% thinking quarter the last continue got talked XX% pleased half, and So five-year XX back expectations energy pleased execution in integration coming very that in we've as of I to we're work and first with we think there. and the on or so half the the streams the traction tracking synergy the to we're be

in EPS with you're So indicated improvement as XX from I terms business. right contribution FCX expectations through line think of flow seeing the to the that some we're there in I

Ryan Cieslak

Thanks in back Okay. I'll get line. guys.

Neil Schrimsher

bet. You

Operator

Your next from question Review. with comes Great David Stratton Lakes

Your line open. is

David Stratton

and taking morning Good the thank you question.

Neil Schrimsher

morning. Good

David Stratton

your XX you're at take end When and what broader industry detail takes now. of groups, market speaking and if experiencing on of give care was the I some you puts the some we there up right look seeing wondering also could then

Neil Schrimsher

gas, those back and we on look the we quarter. the I would we little around metals If at and that industries prior Yes. think with up positives quarter bit continued fabricated Chemicals had primary OEMs, from machinery XX see food. oil Applied aggregate, increases a

broadly think results consistent industrial sectors. And doing segments that it's I across overall of I continue and those the we're I think So really production maybe we're those in that think our increases about strength all well those broadening if and in seeing are with seeing

David Stratton

and should about or the And that have from is been you're break any there any take into then that talked recently seeing tariffs maybe consideration. and can tariffs impact future either out impact I in new acted currently you

Neil Schrimsher

that XXX be portion think we reflective up, time touch all done and mean the I know with we no Yes. through look the recent and are I keep calendar a ones as back think steel tariffs year and I I we've aluminum, that's of job can suppliers on this I and if I our the margins move very doubt. but able don't say on what we be would to on We as to seeing on effective some are then impact imported supplier that those some that the or groups base. done Directly materials importer in on and job of coming inflation impacting ourselves around we're indirectly low ourselves products we direct pricing I the in the our we've and And China, see different produce direct but commodities. see would from to and mean we think XXX I marketplace. tariffs on XXX very effective U.S. plus recognizing

David Stratton

Thank Great. give call, know and final this the I projections I you if one then CapEx missed for the but on you. year? did don't And

David Wells

$XX what is we $XX, did million CapEx the have we for stated Yes, expectations the is year.

Neil Schrimsher

be be we'll caller shops the just of I don't some like around or things that systems I overall deployment. manage And I how to that things productivity think I competitiveness But and around drives SG&A productivity advancements at contributors which are times a general I our those mean investment technology behind help number enhanced the like. and services to lot that will further and effectively. so continue we

David Stratton

insight. for Thanks Great.

Operator

with KeyBanc Your Steve Barger next from comes Capital Markets. question

Your line is open.

Steve Barger

morning, good guys. Hi,

Neil Schrimsher

morning, Good Steve.

David Wells

Steve. morning, Good

Steve Barger

So I through it trying as you but flow of those thinking was write-down all to. that you're if went million got free works cash $XXX maybe right out I numbers to was

Neil Schrimsher

of to the high to we $XX fall to $XXX cash the the CapEx, to so million would million the end. million be into of flow, approach operating within talked range $XX paying there million that we could how $XXX those Get $XXX million range on

Steve Barger

I obviously free going the I here. two times million the on just mean, be Yes. to down acquisitions again? year and at you're the of maybe the and EBITDA sheet right. to think cash use been the that think you're you a given mean how do end to the of to cash? big Or hand of math number. do at balance numbers I've debt I'm next if cash trying $XXX mean about Does doing ready about the net flow,

David Wells

areas that to leverage facilities. to times I does assume just the under two that as we the the we net The credit went of in you projection interest would X.X gave stay we dipped kind the

And at we've of continue we've would look line strike long-term strategic leverage and ultimate in - going ratio in as use balance the forward of to mid to sheet balance. to bolt-on acquisitions objectives. our of Xs keeping that the as put with terms kind being talked, talked we So target

Neil Schrimsher

say to be M&A. have priorities. Steve, I'd in we continued So work We active our

prospects but continuing We and targets ongoing also diligence dialogue, in have have a valuation as productive or pipeline and well. we'd

So remained and we we through haven't paused, we've active, go year to expect acquisitions. fiscal this as close we

Steve Barger

Okay.

the Just embedded costs costs mid-to-high thinking for not the operating about is growth. guidance, being the the seems range. the you're higher to think X% incremental if guidance? capture I thinking conservative in implied margin year contribution about It one-time Are able in there or a any given that that little just

David Wells

of you lapping, months stopping still FCX economic expense seven it, embedded there. we're about amortization Again, there

So core the to if business. we're in of AIT going organically, mid-teens we terms look

bit pursue looking some volume think to facing when up does some drive include growth resource merits opportunities customer SG&A X.X% are on the at more see. beyond investments incremental to you a we about and If some that just stepping as we that making

of for allow that to on does XX side, margin growth it investment basis points So core expansion. some XX the of SG&A

best I got XX.X% year-over-year full the think actually seven, about. at months kind on flow contribution. there just the of FCX we EBITDA about the As we If incremental EBITDA XX to think think the look you've through business, five, way

with more business. the we the - on lap the margins one-time cost, talked that flow accretive FCX mix last we once quarter side of going amortization we obviously we're those through up the to that see about So see as amortization

Steve Barger

Yes.

XX% how built the in the organic outlook, was and growth into sales For the five is much quarter, how the total or whether priced seven to the much growth?

Neil Schrimsher

In for we we're have MRO touched say that it, about repeat we'll skews year. I third said a our on would again. our that the So so seeing some and the break/fix before think of of inflation it us over

in. part because So X%. a our price a are real that belief two about probably in you price coming part said, some that, X.X% is perfect input tight they you either that we've measurement of equipment thirds of have service, of into sales subassembly not match break/fix can may not going a get With a at to had or

As about also. think we're to or increase. could over well, or know out. that think We we believe how environment to the think level how if moderates I fiscal going and continue it at And play operate, full as know then operate today it it that might we will it just increases, year in we we forward, if know performing that

Steve Barger

Understood. Thanks. Very good.

Operator

next question comes Northcoast Cieslak Ryan Your Research. with from

open. is line Your

Ryan Cieslak

Thanks guys.

couple of a Obviously, for today following I oil and on touch gas and revenue. questions percentage businesses sort stand to Just the of Wanted as follow-up of your they acquisitions you. a maybe where the just XXXX to growth would guys at in embed think some expectation XXXX fiscal businesses the XXXX. that going those guidance businesses those does this nice contributed point. you an for on into organic your What's basis in for

Neil Schrimsher

for year-over-year quarter almost at back teens and They upper the right full-year they would mid XX%. formed have positive

done love performance on in ERP them and Permian. nice and we've obviously and the as us well systems including this year the we looking serve of and activity and a forward upgrade participating So they markets going deposits very back to will well bringing that nice play and which

capability businesses, expectations got think of again build on those in a lot we've also We XXXX added about think some mid-teens. and there to services we our As nice momentum. value

be would expectations that our we So as forward. coming the at fiscal look year

Ryan Cieslak

that to Okay. out of that maybe it some into maybe a takeaway constraints on if what or is - And you're us been as Remind lot of I at have you headlines, any around there's relates know Permian that thoughts the of your this coming any seeing and terms guys point? there in selling what you're what well impact capacity. would as on

Neil Schrimsher

and could mean barrels good which look by business. be at service a what as our to there FCX capacity day very $X.X lift will around now moves that. think million But I that we're going to probably at seeing $X.X activity that's that's as very help more Corpus to that the and mechanical I there's lot good grow Well, Houston more extraction grow Permian also is day. a they parts to and that business requiring for for be right. think million It to right to still improve good connected the needs in going pipelines is are could going I more XXXX plus artificial

So it's a time was those but a large Saudi producer lot a a So the OPEC through of coming own largest response that producing by on addressed environment part output it think now. will of area in still it right market get it's second just if believer and and its if would constraints capacity I right I'm stand productive

Ryan Cieslak

And wanted I color. follow-up to another housekeeping and question follow-up date just just on the depreciation then earlier with Adam's a amortization. Good question Okay. I

must the I run quarter going of am show think that June guidance forward just %XX recent I to hear in and reported gave. million rate is the depreciation trying right roughly of reconcile the you and most quarter XX I amortization that So the full-year in you

Neil Schrimsher

there think So we upside the there year full you is discussed> potential about is some

Ryan Cieslak

Okay. I'll back get line. Thanks. in

Operator

showing for I I turn remarks. call have time, At closing to this we Mr. over questions. am Schrimsher the no further will any now

Neil Schrimsher

throughout thank us I to want just point, we to everyone today of forward as and for many quarter. to talking the join this look move At we you

Operator

today's concludes this and Thank you Thank you. for Ladies participating. conference. gentlemen,

now may disconnect. You

Applied Industrial (AIT) 10 Aug 182018 Q4 Earnings call transcript