text: management solutions that provide added value to its customers. 
  
  We have a long tradition of growth dating back to 1923, the year 
  
  YEAR ENDED JUNE 30, 2012 vs. 2011 
  The following table is included to aid in review of Applied’s 
  our business was founded in Cleveland, Ohio. At June 30, 2012, 
  
  business was conducted in the United States, Canada, Mexico 
  statements of consolidated income. 
  and Puerto Rico from 476 facilities. 
  
  When reviewing the discussion and analysis set forth below, 
  
  please note that the majority of SKUs we sell in any given year 
  
  were not sold in the prior year, resulting in the inability to 
  
  quantify certain commonly used comparative metrics analyzing 
  
  sales, such as changes in product mix and volume. 
  
  Our fiscal 2012 sales were $2.4 billion, an increase of $162.6 
  
  million or 7.3% compared to the prior year. Net sales from 
  
  acquired businesses added $16.6 million or 0.7% to the current 
  
  year. Gross margin of 27.6% compares to 27.7% in the prior 
  
  year. Our operating margin increased to 7.1% compared to the 