Fastenal Company (Nasdaq:FAST), a leader in the wholesale
distribution of industrial and construction supplies, today
announced its financial results for the quarter ended September 30,
2023. Except for share and per share information, or as otherwise
noted below, dollar amounts are stated in millions. Throughout this
document, percentage and dollar calculations, which are based on
non-rounded dollar values, may not be able to be recalculated using
the dollar values included in this document due to the rounding of
those dollar values. References to daily sales rate (DSR) change
may reflect either growth (positive) or contraction (negative) for
the applicable period.
PERFORMANCE SUMMARY
Nine-month Period
Three-month Period
2023
2022
Change
2023
2022
Change
Net sales
$
5,588.1
5,285.0
5.7
%
$
1,845.9
1,802.4
2.4
%
Business days
191
192
63
64
Daily sales
$
29.3
27.5
6.3
%
$
29.3
28.2
4.0
%
Gross profit
$
2,555.1
2,447.4
4.4
%
$
847.6
826.5
2.6
%
% of net sales
45.7
%
46.3
%
45.9
%
45.9
%
Operating and administrative expenses
$
1,380.2
1,326.7
4.0
%
$
460.9
447.3
3.0
%
% of net sales
24.7
%
25.1
%
25.0
%
24.8
%
Operating income
$
1,174.9
1,120.7
4.8
%
$
386.7
379.2
2.0
%
% of net sales
21.0
%
21.2
%
21.0
%
21.0
%
Earnings before income taxes
$
1,167.8
1,111.8
5.0
%
$
385.4
375.3
2.7
%
% of net sales
20.9
%
21.0
%
20.9
%
20.8
%
Net earnings
$
888.6
841.3
5.6
%
$
295.5
284.6
3.8
%
Diluted net earnings per share
$
1.55
1.46
6.3
%
$
0.52
0.50
4.1
%
Note – Daily sales are defined as the
total net sales for the period divided by the number of business
days (in the United States) in the period.
QUARTERLY RESULTS OF OPERATIONS
Sales
Net sales increased $43.5, or 2.4%, in the third quarter of 2023
when compared to the third quarter of 2022. There was one fewer
selling day in the quarter relative to the prior year period and,
taking this into consideration, our net daily sales growth
increased 4.0% in the third quarter of 2023 compared to the third
quarter of 2022. We experienced higher unit sales in the third
quarter of 2023 that was primarily due to growth at our Onsite
locations, particularly those opened in the last two years. This
more than offset the impact of softer end market demand on our
manufacturing customers and lower revenues to construction and
reseller customers. Foreign exchange negatively affected sales in
the third quarter of 2023 by approximately 10 basis points.
The impact of product pricing on net sales in the third quarter
of 2023 was modestly positive, consistent with historical trends,
as compared to the impact of product pricing on net sales in the
third quarter of 2022 of 550 to 580 basis points. Incremental
pricing actions over the past twelve months have been of modest
scope, resulting in mostly stable price levels through the third
quarter of 2023.
From a product standpoint, we have three categories: fasteners,
safety supplies, and other products, the latter of which includes
eight smaller product categories, such as tools, janitorial
supplies, and cutting tools. We experienced increasing divergence
in the performance of our fastener versus our non-fastener product
lines in the third quarter of 2023, which we believe relates to two
factors. First, fasteners are more heavily oriented toward
production of final goods than maintenance, which results in
greater susceptibility to weaker manufacturing end markets. Second,
pricing for fasteners has decelerated at a faster pace than
non-fastener products. The DSR change when compared to the same
period in the prior year and the percent of sales in the period
were as follows:
DSR Change Three-month Period
% of Sales Three-month Period
2023
2022
2023
2022
Fasteners
-2.0
%
18.2
%
32.1
%
34.1
%
Safety supplies
9.2
%
12.4
%
21.4
%
20.5
%
Other
6.8
%
15.4
%
46.5
%
45.4
%
Our end markets consist of manufacturing, non-residential
construction, reseller, and other, the latter of which includes
government/education and transportation/warehousing. We continued
to experience a significant divergence in the performance of our
manufacturing end market versus our non-manufacturing end markets
in the third quarter of 2023. We are growing relatively faster with
key account customers, particularly Onsites, with significant
managed spend where our service model and technology is
particularly impactful, which disproportionately benefits
manufacturing customers. The DSR change when compared to the same
period in the prior year and the percent of sales in the period
were as follows:
DSR Change Three-month Period
% of Sales Three-month Period
2023
2022
2023
2022
Heavy manufacturing
9.0
%
25.4
%
43.2
%
41.3
%
Other manufacturing
2.5
%
19.1
%
31.1
%
31.6
%
Non-residential construction
-7.2
%
5.2
%
9.1
%
10.2
%
Reseller
-6.9
%
3.7
%
5.8
%
6.5
%
Other end markets
8.1
%
-4.3
%
10.8
%
10.4
%
We report our customers in two categories: national accounts,
which are customers with a multi-site contract, and non-national
accounts, which include large regional customers, small local
customers, and government customers. We continued to experience a
significant divergence in the performance of our national account
customers versus our non-national account customers, which relates
to the relative growth of our sales through Onsite locations and
larger, key accounts. The DSR change when compared to the same
period in the prior year and the percent of sales in the period
were as follows:
DSR Change Three-month Period
% of Sales Three-month Period
2023
2022
2023
2022
National accounts
8.6
%
20.8
%
60.8
%
58.0
%
Non-national accounts
-1.9
%
9.9
%
39.2
%
42.0
%
Growth Drivers
- We signed 93 new Onsite locations (defined as dedicated sales
and service provided from within, or in proximity to, the
customer's facility) in the third quarter of 2023, resulting in 268
year-to-date signings of new Onsite locations. We had 1,778 active
sites on September 30, 2023, which represented an increase of 13.5%
from September 30, 2022. Daily sales through our Onsite locations,
excluding sales transferred from branches to new Onsites, grew at a
low double-digit rate in the third quarter of 2023 over the third
quarter of 2022. This growth is primarily due to contributions from
Onsites activated and implemented in 2022 and 2023. Based on the
signings in the first nine months of 2023, we currently expect to
sign approximately 350 new Onsite locations for the full year of
2023.
- FMI Technology is comprised of our FASTStock℠ (scanned stocking
locations), FASTBin® (infrared, RFID, and scaled bins), and
FASTVend® (vending devices) offering. FASTStock's fulfillment
processing technology is not embedded, is relatively less expensive
and highly flexible in application, and delivered using our
proprietary mobility technology. FASTBin and FASTVend incorporate
highly efficient and powerful embedded data tracking and
fulfillment processing technologies. Prior to 2021, we reported
exclusively on the signings, installations, and sales of FASTVend.
Beginning in the first quarter of 2021, we began disclosing certain
statistics around our FMI offering. The first statistic is a
weighted FMI® measure which combines the signings and
installations of FASTBin and FASTVend in a standardized machine
equivalent unit (MEU) based on the expected output of each type of
device. We do not include FASTStock in this measurement because
scanned stocking locations can take many forms, such as bins,
shelves, cabinets, pallets, etc., that cannot be converted into a
standardized MEU. The second statistic is revenue through FMI
Technology which combines the sales through FASTStock, FASTBin,
and FASTVend. A portion of the growth in sales experienced by FMI,
particularly FASTStock and FASTBin, reflects the migration of
products from less efficient non-digital stocking locations to more
efficient, digital stocking locations.
The table below summarizes the signings and installations of,
and sales through, our FMI devices.
Nine-month Period
Three-month Period
2023
2022
Change
2023
2022
Change
Weighted FASTBin/FASTVend signings
(MEUs)
18,664
16,005
16.6
%
5,969
5,187
15.1
%
Signings per day
98
83
95
81
Weighted FASTBin/FASTVend installations
(MEUs; end of period)
110,191
99,409
10.8
%
FASTStock sales
$
708.6
621.7
14.0
%
$
234.2
215.9
8.5
%
% of sales
12.5
%
11.6
%
12.5
%
11.8
%
FASTBin/FASTVend sales
$
1,550.6
1,302.2
19.1
%
$
526.2
456.9
15.2
%
% of sales
27.4
%
24.4
%
28.2
%
25.1
%
FMI sales
$
2,259.2
1,923.9
17.4
%
$
760.4
672.8
13.0
%
FMI daily sales
$
11.8
10.0
18.0
%
$
12.1
10.5
14.8
%
% of sales
39.9
%
36.0
%
40.7
%
36.9
%
Our goal for weighted FASTBin and FASTVend device signings in
2023 remains between 23,000 to 25,000 MEUs.
- Our eCommerce business includes sales made through an
electronic data interface (EDI), or other types of technical
integrations, and through our web verticals. Daily sales through
eCommerce grew 41.3% in the third quarter of 2023 and represented
24.5% of our total sales in the period.
Our digital products and services are comprised of sales through
FMI (FASTStock, FASTBin, and FASTVend) plus that proportion of our
eCommerce sales that do not represent billings of FMI services
(collectively, our Digital Footprint). We believe the data that is
created through our digital capabilities enhances product
visibility, traceability, and control that reduces risk in
operations and creates ordering and fulfillment efficiencies for
both ourselves and our customers. As a result, we believe our
opportunity to grow our business will be enhanced through the
continued development and expansion of our digital
capabilities.
Our Digital Footprint in the third quarter of 2023 represented
57.1% of our sales, an increase from 49.5% of sales in the third
quarter of 2022.
Gross Profit
Our gross profit, as a percentage of net sales, was unchanged at
45.9% in the third quarter of 2023 from 45.9% in the third quarter
of 2022. Customer and product mix had a negative effect on our
gross profit percentage. We continued to experience relatively
strong growth from Onsite customers and non-fastener products, each
of which tend to have a lower gross profit percentage than our
business as a whole. This was offset by a number of favorable
variables. First, we continue to experience favorable freight
costs, which reflects elevated domestic freight revenue leveraging
what are relatively stable costs to support our captive fleet,
lower expenses related to external freight providers, and lower
fuel costs. Second, in the third quarter of 2022 we had a $3.4
write-down of pandemic-related gloves that did not recur in the
third quarter of 2023. Third, we experienced slightly positive
price-cost. This reflects moderating product costs, as we took no
meaningful pricing actions in the period, and an easy comparison,
as it largely recaptures the price-cost deficit experienced in the
third quarter of 2022.
Operating Income
Our operating income, as a percentage of net sales, was
unchanged at 21.0% in the third quarter of 2023 from 21.0% in the
third quarter of 2022.
Operating and Administrative Expenses
Our operating and administrative expenses, as a percentage of
net sales, increased to 25.0% in the third quarter of 2023 from
24.8% in the third quarter of 2022. This largely reflects an
increase, as a percentage of net sales, in other operating and
administrative expenses. Our ability to leverage was adversely
impacted by slow sales growth, which made it difficult to leverage
spending on certain business initiatives and investments. Our
ability to leverage was also limited by having one less selling day
in the third quarter of 2023 than we had in the third quarter of
2022, as most of our operating expenses will not vary based on the
number of selling days in a given period.
Employee-related expenses, which represent 70% to 75% of total
operating and administrative expenses, increased 1.6% in the third
quarter of 2023 compared to the third quarter of 2022. We
experienced an increase in employee base pay due to higher average
FTE during the period and, to a lesser degree, higher average
wages. We also experienced higher healthcare-related costs. This
was partly offset by bonus and commission payments declining to
reflect the impact of slower sales and profit growth versus the
prior year.
Occupancy-related expenses, which represent 15% to 20% of total
operating and administrative expenses, increased 3.7% in the third
quarter of 2023 compared to the third quarter of 2022. We continue
to experience rising rent costs for our buildings due to inflation
and upsizing of branches. At the same time, slowing in the pace of
branch closings is resulting in a moderating level of incremental
cost reduction to offset these increases. We also had higher costs
for FMI hardware as we continue to expand our installed base of
such hardware.
Combined, all other operating and administrative expenses, which
represent 10% to 15% of total operating and administrative
expenses, increased 11.0% in the third quarter of 2023 compared to
the third quarter of 2022. The increase in other operating and
administrative expenses relates primarily to higher spending on
information technology, higher bad debt expense, and higher general
insurance costs.
Net Interest Expense
Our net interest expense was $1.3 in the third quarter of 2023,
compared to $3.9 in the third quarter of 2022. We had higher
interest income, reflecting higher cash balances through the period
and higher rates paid on those balances. We also had lower interest
expense, reflecting lower average borrowings through the period, as
well as slightly lower average interest rates.
Income Taxes
We recorded income tax expense of $89.9 in the third quarter of
2023, or 23.4% of earnings before income taxes. During the third
quarter of 2023, the liability for unrecognized tax benefits
decreased $3.9 due to the lapse of statute of limitations, of which
$3.8 impacted the effective tax rate. Income tax expense was $90.7
in the third quarter of 2022, or 24.2% of earnings before income
taxes. We believe our ongoing tax rate, absent any discrete tax
items or broader changes to tax law, will be approximately
24.5%.
Net Earnings
Our net earnings during the third quarter of 2023 were $295.5,
an increase of 3.8% compared to the third quarter of 2022. Our
diluted net earnings per share were $0.52 during the third quarter
of 2023, which increased from $0.50 during the third quarter of
2022.
BALANCE SHEET AND CASH FLOW
We produced operating cash flow of $388.1 in the third quarter
of 2023, an increase of 50.5% from the third quarter of 2022,
representing 131.3% of the period's net earnings versus 90.6% in
the third quarter of 2022. The improvement in operating cash flow,
as a percent of net earnings, reflects working capital being a
source of cash in the third quarter of 2023, as opposed to a use of
cash in the third quarter of 2022. This reflects the normalization
of global supply chains versus the prior year and, to a lesser
degree, slower business activity, which combine to reduce the rate
of working capital expansion necessary to support our customers'
growth. In the first nine months of 2023, our operating cash flow
was $1,078.7, an increase of 68.8% from the first nine months of
2022, representing 121.4% of the period's net earnings versus 76.0%
in the first nine months of 2022. The improvement in operating cash
flow in the first nine months of 2023, as a percent of net
earnings, is driven by the same variables as the third quarter of
2023.
The dollar and percentage change in accounts receivable, net,
inventories, and accounts payable as of September 30, 2023 when
compared to September 30, 2022 were as follows:
September 30
Twelve-month Dollar Change
Twelve-month Percentage
Change
2023
2022
2023
2023
Accounts receivable, net
$
1,171.0
1,110.6
$
60.3
5.4
%
Inventories
1,513.8
1,678.1
(164.3
)
-9.8
%
Trade working capital
$
2,684.8
2,788.7
$
(104.0
)
-3.7
%
Accounts payable
$
275.1
277.2
$
(2.0
)
-0.7
%
Trade working capital, net
$
2,409.7
2,511.5
$
(101.9
)
-4.1
%
Net sales in last three months
$
1,845.9
1,802.4
$
43.5
2.4
%
Note - Amounts may not foot due to
rounding difference.
The increase in our accounts receivable balance in the third
quarter of 2023 is primarily attributable to two factors. First,
our receivables increased as a result of growth in sales to our
customers. Second, we continue to experience a shift in our mix due
to relatively stronger growth from national account customers,
which tend to carry longer payment terms than our non-national
account customers.
The decrease in our inventory balance in the third quarter of
2023 is primarily attributable to the absence of supply disruptions
from the prior year. Our response at the time was to deepen our
inventory as a means of maintaining high service to our customers,
particularly for imported inventory. Dissipation of these
disruptions has allowed us to shorten our product ordering cycle.
It is also likely that slower business activity is reducing the
level of inventory our customers require us to maintain to meet
their production needs.
The decrease in our accounts payable balance in the third
quarter of 2023 is primarily attributable to the dissipation of
supply disruptions from the prior year. That allowed us to
gradually begin to shorten our product ordering cycle and reduce
the volume of product purchases in the third quarter of 2023 versus
the third quarter of 2022.
During the third quarter of 2023, our investment in property and
equipment, net of proceeds from sales, was $42.9, which is a
decrease from $44.4 in the third quarter of 2022. During the first
nine months of 2023, our investment in property and equipment, net
of proceeds from sales, was $127.7, which is an increase from
$120.9 in the first nine months of 2022. For the full year of 2023,
we expect our investment in property and equipment, net of proceeds
from sales, to be within a range of $180.0 to $190.0. This is a
decline from our prior range of $210.0 to $230.0 reflecting a
deferral of several distribution center-related projects. This new
range represents an increase from $162.4 in 2022, due primarily to
investments in fleet equipment to support our network of heavy
trucks and an increase in spending on information technology.
During the third quarter of 2023, we returned $199.8 to our
shareholders in the form of dividends, compared to the third
quarter of 2022 when we returned $272.8 to our shareholders in the
form of dividends ($177.5) and purchases of our common stock
($95.3). During the first nine months of 2023, we returned $599.5
to our shareholders in the form of dividends, compared to the first
nine months of 2022 when we returned $679.0 to our shareholders in
the form of dividends ($534.4) and purchases of our common stock
($144.6).
Total debt on our balance sheet was $260.0 at the end of the
third quarter of 2023, or 7.0% of total capital (the sum of
stockholders' equity and total debt). This compares to $555.0, or
14.9% of total capital, at the end of the third quarter of
2022.
ADDITIONAL INFORMATION
The table below summarizes our absolute and full time equivalent
(FTE; based on 40 hours per week) employee headcount, our
investments related to in-market locations (defined as the sum of
the total number of branch locations and the total number of active
Onsite locations), and weighted FMI devices at the end of the
periods presented and the percentage change compared to the end of
the prior periods.
Change Since:
Change Since:
Change Since:
Q3 2023
Q2 2023
Q2 2023
Q4 2022
Q4 2022
Q3 2022
Q3 2022
Total selling personnel - absolute
employee headcount
16,261
16,302
-0.3
%
15,898
2.3
%
15,662
3.8
%
Total selling personnel - FTE employee
headcount
14,750
14,993
-1.6
%
14,476
1.9
%
14,284
3.3
%
Total personnel - absolute employee
headcount
22,862
22,913
-0.2
%
22,386
2.1
%
22,025
3.8
%
Total personnel - FTE employee
headcount
20,284
20,631
-1.7
%
19,854
2.2
%
19,519
3.9
%
Number of branch locations
1,615
1,635
-1.2
%
1,683
-4.0
%
1,716
-5.9
%
Number of active Onsite locations
1,778
1,728
2.9
%
1,623
9.6
%
1,567
13.5
%
Number of in-market locations
3,393
3,363
0.9
%
3,306
2.6
%
3,283
3.4
%
Weighted FMI devices (MEU installed
count)
110,191
107,115
2.9
%
102,151
7.9
%
99,409
10.8
%
During the last twelve months, we increased our total FTE
employee headcount by 765. This reflects an increase in our total
FTE selling personnel of 466 to support growth in the marketplace
and sales initiatives targeting customer acquisition. We had an
increase in our distribution and transportation FTE personnel of 95
to support increased product throughput at our facilities and to
expand our local inventory fulfillment terminals (LIFTs). We had an
increase in our remaining FTE personnel of 204 that relates
primarily to personnel investments in information technology,
manufacturing, and operational support, such as purchasing and
product development.
The table below summarizes the number of branches opened and
closed, net of conversions, as well as the number of Onsites
activated and closed, net of conversions during the periods
presented.
Nine-month Period
Three-month Period
2023
2022
2023
2022
Branch openings
8
11
3
3
Branch closures, net of conversions
(76
)
(88
)
(23
)
(24
)
Onsite activations
252
230
79
92
Onsite closures, net of conversions
(97
)
(79
)
(29
)
(26
)
In any period, the number of closings tends to reflect normal
churn in our business, whether due to redefining or exiting
customer relationships, the shutting or relocation of customer
facilities that host our locations, or a customer decision, as well
as our ongoing review of underperforming locations. Our in-market
network forms the foundation of our business strategy, and we will
continue to open or close locations as is deemed necessary to
sustain and improve our network, support our growth drivers, and
manage our operating expenses.
CONFERENCE CALL TO DISCUSS QUARTERLY RESULTS
As we previously disclosed, we will host a conference call today
to review the quarterly results, as well as current operations.
This conference call will be broadcast live over the Internet at
9:00 a.m., central time. To access the webcast, please go to the
Fastenal Company Investor Relations Website at https://investor.fastenal.com/events.cfm.
ADDITIONAL MONTHLY AND QUARTERLY INFORMATION
We publish on the 'Investor Relations' page of our website at
www.fastenal.com both our monthly
consolidated net sales information and the presentation for our
quarterly conference call (which includes information, supplemental
to that contained in our earnings announcement, regarding results
for the quarter). We expect to publish the consolidated net sales
information for each month, other than the third month of a
quarter, at 6:00 a.m., central time, on the fourth business day of
the following month. We expect to publish the consolidated net
sales information for the third month of each quarter and the
conference call presentation for each quarter at 6:00 a.m., central
time, on the date our earnings announcement for such quarter is
publicly released.
FORWARD LOOKING STATEMENTS
Certain statements contained in this document do not relate
strictly to historical or current facts. As such, they are
considered 'forward-looking statements' that provide current
expectations or forecasts of future events. These forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements
can be identified by the use of terminology such as anticipate,
believe, should, estimate, expect, intend, may, will, plan, goal,
project, hope, trend, target, opportunity, and similar words or
expressions, or by references to typical outcomes. Any statement
that is not a historical fact, including estimates, projections,
future trends, and the outcome of events that have not yet
occurred, is a forward-looking statement. Our forward-looking
statements generally relate to our expectations and beliefs
regarding the business environment in which we operate, our
projections of future performance, our perceived marketplace
opportunities, our strategies, goals, mission, and vision, and our
expectations about future capital expenditures, future tax rates,
future inventory levels, pricing, future Onsite and weighted FMI
device signings, investment in property and equipment, the impact
of inflation on our cost of goods or operating costs, and future
operating results and business activity. You should understand that
forward-looking statements involve a variety of risks and
uncertainties, known and unknown (including risks disclosed in our
most recent annual and quarterly reports), and may be affected by
inaccurate assumptions. Consequently, no forward-looking statement
can be guaranteed and actual results may vary materially. Factors
that could cause our actual results to differ from those discussed
in the forward-looking statements include, but are not limited to,
those detailed in our most recent annual and quarterly reports.
Each forward-looking statement speaks only as of the date on which
such statement is made, and we undertake no obligation to update
any such statement to reflect events or circumstances arising after
such date. FAST-E
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Amounts in millions except share
information)
(Unaudited)
Assets
September 30, 2023
December 31, 2022
Current assets:
Cash and cash equivalents
$
297.5
230.1
Trade accounts receivable, net of
allowance for credit losses of $6.6 and $8.3, respectively
1,171.0
1,013.2
Inventories
1,513.8
1,708.0
Prepaid income taxes
15.3
8.1
Other current assets
150.0
165.4
Total current assets
3,147.6
3,124.8
Property and equipment, net
1,011.7
1,010.0
Operating lease right-of-use assets
274.0
243.0
Other assets
163.3
170.8
Total assets
$
4,596.6
4,548.6
Liabilities and Stockholders'
Equity
Current liabilities:
Current portion of debt
$
60.0
201.8
Accounts payable
275.1
255.0
Accrued expenses
235.8
241.1
Current portion of operating lease
liabilities
97.0
91.9
Total current liabilities
667.9
789.8
Long-term debt
200.0
353.2
Operating lease liabilities
181.9
155.2
Deferred income taxes
79.3
83.7
Other long-term liabilities
0.9
3.5
Stockholders' equity:
Preferred stock: $0.01 par value,
5,000,000 shares authorized, no shares issued or outstanding
—
—
Common stock: $0.01 par value, 800,000,000
shares authorized, 571,404,311 and 570,811,674 shares issued and
outstanding, respectively
5.7
5.7
Additional paid-in capital
24.6
3.6
Retained earnings
3,507.8
3,218.7
Accumulated other comprehensive loss
(71.5
)
(64.8
)
Total stockholders' equity
3,466.6
3,163.2
Total liabilities and stockholders'
equity
$
4,596.6
4,548.6
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Statements
of Earnings
(Amounts in millions except
earnings per share)
(Unaudited)
(Unaudited)
Nine Months Ended September
30,
Three Months Ended September
30,
2023
2022
2023
2022
Net sales
$
5,588.1
5,285.0
$
1,845.9
1,802.4
Cost of sales
3,033.0
2,837.6
998.3
975.9
Gross profit
2,555.1
2,447.4
847.6
826.5
Operating and administrative expenses
1,380.2
1,326.7
460.9
447.3
Operating income
1,174.9
1,120.7
386.7
379.2
Interest income
1.8
0.4
0.8
0.2
Interest expense
(8.9
)
(9.3
)
(2.1
)
(4.1
)
Earnings before income taxes
1,167.8
1,111.8
385.4
375.3
Income tax expense
279.2
270.5
89.9
90.7
Net earnings
$
888.6
841.3
$
295.5
284.6
Basic net earnings per share
$
1.56
1.46
$
0.52
0.50
Diluted net earnings per share
$
1.55
1.46
$
0.52
0.50
Basic weighted average shares
outstanding
571.1
574.7
571.4
573.0
Diluted weighted average shares
outstanding
572.9
576.6
573.1
574.7
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Statements
of Cash Flows
(Amounts in millions)
(Unaudited)
(Unaudited)
Nine Months Ended September
30,
Three Months Ended September
30,
2023
2022
2023
2022
Cash flows from operating activities:
Net earnings
$
888.6
841.3
$
295.5
284.6
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation of property and equipment
126.1
123.8
42.1
41.4
(Gain) loss on sale of property and
equipment
(2.7
)
1.2
(1.5
)
(1.1
)
Bad debt expense (recoveries)
1.4
(0.9
)
1.2
(1.3
)
Deferred income taxes
(4.4
)
4.3
(5.0
)
3.8
Stock-based compensation
5.6
4.4
1.8
1.4
Amortization of intangible assets
8.0
8.1
2.6
2.7
Changes in operating assets and
liabilities:
Trade accounts receivable
(159.5
)
(222.9
)
(4.5
)
(13.6
)
Inventories
191.7
(176.9
)
46.1
(26.3
)
Other current assets
15.4
15.9
(8.3
)
(43.0
)
Accounts payable
21.7
44.1
11.8
(14.6
)
Accrued expenses
(4.7
)
(15.9
)
6.6
13.7
Income taxes
(7.2
)
5.3
(0.6
)
3.3
Other
(1.3
)
7.3
0.3
6.9
Net cash provided by operating
activities
1,078.7
639.1
388.1
257.9
Cash flows from investing activities:
Purchases of property and equipment
(136.5
)
(131.0
)
(46.9
)
(48.0
)
Proceeds from sale of property and
equipment
8.8
10.1
4.0
3.6
Other
(0.5
)
(0.7
)
(0.1
)
(0.1
)
Net cash used in investing activities
(128.2
)
(121.6
)
(43.0
)
(44.5
)
Cash flows from financing activities:
Proceeds from debt obligations
790.0
1,390.0
155.0
695.0
Payments against debt obligations
(1,085.0
)
(1,225.0
)
(245.0
)
(645.0
)
Proceeds from exercise of stock
options
15.4
7.8
2.9
2.0
Purchases of common stock
—
(144.6
)
—
(95.3
)
Cash dividends paid
(599.5
)
(534.4
)
(199.8
)
(177.5
)
Net cash used in financing activities
(879.1
)
(506.2
)
(286.9
)
(220.8
)
Effect of exchange rate changes on cash
and cash equivalents
(4.0
)
(16.0
)
(4.3
)
(9.0
)
Net increase (decrease) in cash and cash
equivalents
67.4
(4.7
)
53.9
(16.4
)
Cash and cash equivalents at beginning of
period
230.1
236.2
243.6
247.9
Cash and cash equivalents at end of
period
$
297.5
231.5
$
297.5
231.5
Supplemental information:
Cash paid for interest
$
10.3
9.2
$
2.1
4.2
Net cash paid for income taxes
$
288.0
257.3
$
94.3
81.9
Leased assets obtained in exchange for new
operating lease liabilities
$
96.3
74.0
$
32.0
18.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231011439428/en/
Taylor Ranta Oborski Financial Reporting & Regulatory
Compliance Manager 507.313.7959
Fastenal (NASDAQ:FAST)
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Fastenal (NASDAQ:FAST)
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