Fastenal Company (Nasdaq:FAST) (collectively referred to as
'Fastenal' or by terms such as 'we', 'our', or 'us'), a leader in
the wholesale distribution of industrial and construction supplies,
today announced its financial results for the quarter ended June
30, 2024. 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. Beginning in the
first quarter of 2024, references to 'net earnings', 'operating and
administrative expenses', and 'earnings before income taxes' have
been revised in our condensed consolidated financial statements and
financial reports, including this document, to 'net income',
'selling, general, and administrative (SG&A) expenses', and
'income before income taxes', respectively, and are calculated in
conformity with U.S. GAAP.
PERFORMANCE SUMMARY
Six-month Period
Three-month Period
2024
2023
Change
2024
2023
Change
Net sales
$
3,811.3
3,742.2
1.8
%
$
1,916.2
1,883.1
1.8
%
Business days
128
128
64
64
Daily sales
$
29.8
29.2
1.8
%
$
29.9
29.4
1.8
%
Gross profit
$
1,725.1
1,707.5
1.0
%
$
863.5
857.5
0.7
%
% of net sales
45.3
%
45.6
%
45.1
%
45.5
%
Selling, general, and administrative
expenses
$
948.0
919.4
3.1
%
$
476.6
462.6
3.0
%
% of net sales
24.9
%
24.6
%
24.9
%
24.6
%
Operating income
$
777.1
788.1
-1.4
%
$
386.9
394.9
-2.0
%
% of net sales
20.4
%
21.1
%
20.2
%
21.0
%
Income before income taxes
$
776.2
782.3
-0.8
%
$
386.4
392.6
-1.6
%
% of net sales
20.4
%
20.9
%
20.2
%
20.9
%
Net income
$
590.4
593.1
-0.5
%
$
292.7
298.0
-1.8
%
Diluted net income per share
$
1.03
1.04
-0.7
%
$
0.51
0.52
-2.0
%
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 $33.1, or 1.8%, in the second quarter of
2024 when compared to the second quarter of 2023. Both periods had
the same number of selling days. Changes in foreign exchange rates
negatively affected sales in the second quarter of 2024 and 2023 by
approximately 20 and 40 basis points, respectively.
We experienced higher unit sales in the second quarter of 2024
primarily due to growth with larger customers and Onsite locations
opened in the last two years. The impact of product pricing on net
sales in the second quarter of 2024 was a decline of 30 to 60 basis
points, in contrast to the second quarter of 2023, which
experienced an increase of 190 to 220 basis points. The decline
reflects lower fastener pricing, which is a by-product of lower
transportation costs, as well as lower pricing in certain safety
and other products categories.
From a product standpoint, we have three categories: fasteners
[including fasteners used in original equipment manufacturing (OEM)
and maintenance, repair, and operations (MRO)], safety supplies,
and other product lines, the latter of which includes eight smaller
product categories, such as tools, janitorial supplies, and cutting
tools. We continued to experience a divergence in the performance
of our fastener versus our non-fastener product lines in the second
quarter of 2024, which we believe relates to three factors. First,
fasteners are more heavily oriented toward production of final
goods than maintenance, which results in greater susceptibility to
periods of weaker industrial production. Second, pricing for
fasteners has decelerated at a faster pace than non-fastener
products. Third, we continued to experience relatively faster
growth with warehousing customers due to market share gains,
product mix, and easier comparisons. This factor primarily
benefited our safety product line. 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
2024
2023
2024
2023
OEM fasteners
-2.3
%
4.1
%
19.5
%
20.4
%
MRO fasteners
-4.3
%
-6.2
%
11.5
%
12.2
%
Total fasteners
-3.0
%
0.0
%
31.0
%
32.6
%
Safety supplies
7.1
%
7.9
%
21.8
%
20.7
%
Other product lines
3.0
%
9.8
%
47.2
%
46.7
%
Total non-fasteners
4.2
%
9.2
%
69.0
%
67.4
%
From an end market standpoint, we have five categories: heavy
manufacturing, other manufacturing, non-residential construction,
reseller, and other, the latter of which includes
government/education and transportation/warehousing. We continued
to experience a modest divergence in the performance of our
manufacturing end market versus our non-manufacturing end markets
in the second quarter of 2024. This primarily reflects the relative
strength we are experiencing with key account customers with
significant managed spend where our service model and technology is
particularly impactful. This 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
2024
2023
2024
2023
Heavy manufacturing
1.8
%
13.0
%
43.3
%
43.4
%
Other manufacturing
4.0
%
7.0
%
32.2
%
31.4
%
Total manufacturing
2.7
%
10.4
%
75.5
%
74.8
%
Non-residential construction
-5.5
%
-8.8
%
8.5
%
9.2
%
Reseller
-6.4
%
-8.7
%
5.3
%
5.7
%
Other end markets
6.0
%
0.2
%
10.7
%
10.3
%
Total non-manufacturing
-1.0
%
-5.3
%
24.5
%
25.2
%
We report our customers in two categories: national accounts,
which are customers with significant revenue potential and a
national, 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
2024
2023
2024
2023
National accounts
5.8
%
10.3
%
62.4
%
59.3
%
Non-national accounts
-4.3
%
0.2
%
37.6
%
40.7
%
Growth Drivers
- We signed 107 new Onsite locations (defined as dedicated sales
and service provided from within, or in proximity to, the
customer's facility) in the second quarter of 2024, resulting in
209 year-to-date signings of new Onsite locations. We had 1,934
active sites on June 30, 2024, which represented an increase of
11.9% from June 30, 2023. Daily sales through our Onsite locations,
excluding sales transferred from branches to new Onsites, grew at a
low single-digit rate in the second quarter of 2024 over the second
quarter of 2023. This growth is due to contributions from Onsites
activated and implemented in 2024 and 2023, which more than offset
the impact of closures and a decline in revenues from Onsites
activated prior to 2023. Our goal for Onsite signings in 2024
remains between 375 to 400.
- 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. 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 sales 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. Our goal for weighted
FASTBin and FASTVend device signings in 2024 remains between 26,000
to 28,000 MEUs. The table below summarizes the signings and
installations of, and sales through, our FMI devices.
Six-month Period
Three-month Period
2024
2023
Change
2024
2023
Change
Weighted FASTBin/FASTVend signings
(MEUs)
13,914
12,695
9.6
%
7,188
6,794
5.8
%
Signings per day
109
99
112
106
Weighted FASTBin/FASTVend installations
(MEUs; end of period)
119,306
107,115
11.4
%
FASTStock sales
$
484.2
474.4
2.1
%
$
244.4
237.7
2.8
%
% of sales
12.5
%
12.5
%
12.6
%
12.5
%
FASTBin/FASTVend sales
$
1,123.9
1,024.3
9.7
%
$
567.0
520.6
8.9
%
% of sales
29.1
%
27.0
%
29.2
%
27.3
%
FMI sales
$
1,608.1
1,498.7
7.3
%
$
811.4
758.3
7.0
%
FMI daily sales
$
12.6
11.7
7.3
%
$
12.7
11.8
7.0
%
% of sales
41.7
%
39.6
%
41.8
%
39.8
%
- Our eBusiness includes eProcurement activities [e.g.,
integrated transactions, including electronic data interchange
(EDI)] and eCommerce (transactional website sales). Growth of our
eBusiness reflects both new sales that enhance our growth rate and
a shift in existing sales from non-digital to digital processes
that improves efficiency. Daily sales through eBusiness grew 25.5%
in the second quarter of 2024 and represented 28.7% of our total
sales in the period. In the second quarter of 2024, daily sales
through eProcurement and eCommerce grew 30.9% and 11.6%,
respectively.
Our digital products and services are comprised of sales through
FMI (FASTStock, FASTBin, and FASTVend) plus that proportion of our
eBusiness 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 us 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 second quarter of 2024 represented
59.4% of our sales, an increase from 55.3% of sales in the second
quarter of 2023.
Gross Profit
Our gross profit, as a percentage of net sales, decreased to
45.1% in the second quarter of 2024 from 45.5% in the second
quarter of 2023. Our gross profit percentage was primarily impacted
by two factors. First, we experienced unfavorable customer and
product mix. This reflects relatively stronger growth from large
customers, including Onsite customers, and non-fastener products,
each of which tend to have a lower gross profit percentage than our
business as a whole. Second, as we disclosed in our April 2024
earnings call, we incurred short-term inefficiencies in our supply
chain to support certain warehousing customers, which we believe
will contribute to our future growth in this end market. We expect
these inefficiencies will ease as we move through the third quarter
of 2024 and normalize as we approach the fourth quarter of 2024.
These factors were partly offset by favorable leverage of
organizational/overhead costs, primarily due to greater utilization
of domestic transportation resources as we move more product to
support current stocking levels. Price-cost did not meaningfully
impact our gross profit percentage during the second quarter of
2024.
SG&A Expenses
Our SG&A expenses, as a percentage of net sales, were 24.9%
in the second quarter of 2024 versus 24.6% in the second quarter of
2023. Efforts to control growth in operating expenses in the second
quarter of 2024 produced a modest 3.0% expansion of total SG&A
in the period. Notwithstanding this, growth in net sales was below
growth in SG&A, resulting in our deleveraging of costs in the
second quarter of 2024.
Employee-related expenses, which represent 70% to 75% of total
SG&A expenses, increased 2.4% in the second quarter of 2024
compared to the second quarter of 2023. We experienced an increase
in employee base pay due to higher average FTE and higher average
wages during the period. This was only partly offset by lower bonus
and commission payments reflecting slower sales and profit growth
versus the second quarter of 2023.
Occupancy-related expenses, which represent 15% to 20% of total
SG&A expenses, increased 0.1% in the second quarter of 2024
compared to the second quarter of 2023. We had moderate increases
in branch costs related to general inflation, as well as non-branch
expenses from incremental depreciation and other costs associated
with hub investments and upgrades. This was mostly offset by lower
FMI expense where the roll-off of depreciation on a large number of
vending devices that had reached the end of their depreciable lives
in the second quarter of 2023 more than offset higher depreciation
resulting from growth in bins.
Combined, all other SG&A expenses, which represent 10% to
15% of total SG&A expenses, increased 10.1% in the second
quarter of 2024 compared to the second quarter of 2023. This
reflects primarily three items. First, we had higher lease costs in
our selling-related vehicle fleet due to an increase in the mix of
larger truck types and higher prices on newer vehicles. Second, as
we had disclosed in our April 2024 earnings call, we incurred
significant expenses related to our Customer Expo as a result of
the event being larger than we had originally expected. Third, we
experienced an increase in general insurance expenses. These items
were partly offset by a reduction in spending related to travel,
meals, and supplies.
Operating Income
Our operating income, as a percentage of net sales, decreased to
20.2% in the second quarter of 2024 from 21.0% in the second
quarter of 2023.
Net Interest
We had net interest expense of $0.5 in the second quarter of
2024, compared to net interest expense of $2.3 in the second
quarter of 2023. We had higher interest income reflecting higher
rates earned on our cash balances. We had lower interest expense,
reflecting lower average borrowings through the period only partly
offset by slightly higher rates paid on our debt balances.
Income Taxes
We recorded income tax expense of $93.7 in the second quarter of
2024, or 24.2% of income before income taxes. Income tax expense
was $94.6 in the second quarter of 2023, or 24.1% of income 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 Income
Our net income during the second quarter of 2024 was $292.7, a
decrease of 1.8% compared to the second quarter of 2023. Our
diluted net income per share was $0.51 in the second quarter of
2024, compared to $0.52 in the second quarter of 2023.
BALANCE SHEET AND CASH FLOW
Net cash provided by operating activities was $258.0 in the
second quarter of 2024, a decrease of 14.6% from the second quarter
of 2023, representing 88.1% of the period's net income versus
101.4% in the second quarter of 2023. The decrease in operating
cash flow, as a percent of net income, reflects our operating
assets and liabilities being a more significant use of cash in the
second quarter of 2024 than we experienced in the second quarter of
2023. In particular, inventory swung to a modest use of cash in the
second quarter of 2024 versus a significant source of cash in the
second quarter of 2023. This more than offset modest benefits to
cash from other working capital items. For comparison, our
five-year average of net cash provided by operating activities as a
percent of net income in the second quarter is 78.6%.
Net cash provided by operating activities was $593.6 in the
first six months of 2024, a decrease of 14.0% from the first six
months of 2023, representing 100.5% of the period's net income
versus 116.4% in the first six months of 2023. The decrease in
operating cash flow, as a percentage of net income, reflects our
operating assets and liabilities being a significant use of cash in
the first six months of 2024 versus our operating assets and
liabilities being a modest source of cash in the first six months
of 2023. In particular, inventory was a significantly more modest
source of cash in the first six months of 2024 than we experienced
in the first six months of 2023. For comparison, our five-year
average of net cash provided by operating activities as a percent
of net income in the first six months of the calendar year is
95.8%.
The dollar and percentage change in accounts receivable, net,
inventories, and accounts payable as of June 30, 2024 when compared
to June 30, 2023 were as follows:
June 30
Twelve-month
Dollar Change
Twelve-month
Percentage Change
2024
2023
2024
2024
Accounts receivable, net
$
1,204.8
1,171.6
$
33.2
2.8
%
Inventories
1,504.6
1,565.4
(60.8
)
-3.9
%
Trade working capital
$
2,709.4
2,737.0
$
(27.6
)
-1.0
%
Accounts payable
$
292.6
262.0
$
30.6
11.7
%
Trade working capital, net
$
2,416.8
2,475.0
$
(58.2
)
-2.4
%
Net sales in last three months
$
1,916.2
1,883.1
$
33.1
1.8
%
Note - Amounts may not foot due to rounding difference.
The increase in our accounts receivable balance in the second
quarter of 2024 was 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 second quarter of
2024 reflects three factors. First, customers are consuming less
inventory as they adjust production to address soft demand. Second,
we have made progress over the last twelve months to reduce
inventory following the normalization of the supply chain after the
disruptions experienced in 2022. We responded to that event by
deepening inventory to support customer growth, and the process of
rightsizing our stock can be protracted given the quantity of
imported product we source. Third, we have also experienced modest
deflation in our inventory.
The increase in our accounts payable balance in the second
quarter of 2024 was primarily attributable to our product purchases
increasing to support the growth in our business and to reflect a
normalization of purchasing activity versus the year ago period
when purchasing was subdued by efforts to rightsize inventory.
During the second quarter of 2024, our investment in property
and equipment, net of proceeds from sales, was $52.6, which was
comparable to $53.9 in the second quarter of 2023. During the first
six months of 2024, our investment in property and equipment, net
of proceeds from sales, was $100.9, which was an increase from
$84.8 in the first six months of 2023. This was primarily related
to three factors. First, spending on FMI is higher based on strong
signings and installations, particularly of higher-end and
higher-cost vending devices. Second, we have had an increase in
spending for facility construction and upgrades. Third, higher
vehicle spending reflects the timing of deliveries from our
suppliers.
For the full year of 2024, we expect our investment in property
and equipment, net of proceeds from sales, to be within a range of
$235.0 to $255.0, an increase from our originally anticipated range
($225.0 to $245.0) and an increase from $160.6 in 2023. The
expected growth on a year-to-year basis is based on spending to
complete our Utah distribution center, investments in picking
technology and equipment in our hubs and branches, higher outlays
for FMI hardware reflecting our higher targeted signings, and an
increase in spending on information technology. The increase from
our original expected range for investment in property and
equipment, net of proceeds from sales, reflects an increase in
expected investment in vending devices to reflect both strong
signings and that those signings are concentrated more heavily in
higher-value, higher-cost units.
During the second quarter of 2024, we returned $223.3 to our
shareholders in the form of dividends, compared to the second
quarter of 2023 when we returned $199.9 to our shareholders in the
form of dividends. During the first six months of 2024, we returned
$446.5 to our shareholders in the form of dividends, compared to
the first six months of 2023 when we returned $399.7 to our
shareholders in the form of dividends. We did not repurchase any of
our common stock in the first half of 2024 or 2023.
Total debt on our balance sheet was $235.0 at the end of the
second quarter of 2024, or 6.3% of total capital (the sum of
stockholders' equity and total debt). This compares to $350.0, or
9.4% of total capital, at the end of the second quarter of
2023.
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:
Q2
2024
Q1
2024
Q1
2024
Q4
2023
Q4
2023
Q2
2023
Q2
2023
Selling personnel - absolute employee
headcount
16,774
16,764
0.1
%
16,512
1.6
%
16,302
2.9
%
Selling personnel - FTE employee
headcount
15,386
15,102
1.9
%
15,070
2.1
%
14,993
2.6
%
Total personnel - absolute employee
headcount
23,629
23,695
-0.3
%
23,201
1.8
%
22,913
3.1
%
Total personnel - FTE employee
headcount
21,249
20,935
1.5
%
20,721
2.5
%
20,631
3.0
%
Number of branch locations
1,599
1,592
0.4
%
1,597
0.1
%
1,635
-2.2
%
Number of active Onsite locations
1,934
1,872
3.3
%
1,822
6.1
%
1,728
11.9
%
Number of in-market locations
3,533
3,464
2.0
%
3,419
3.3
%
3,363
5.1
%
Weighted FMI devices (MEU installed
count)
119,306
115,653
3.2
%
113,138
5.5
%
107,115
11.4
%
During the last twelve months, we increased our total FTE
employee headcount by 618. This reflects an increase in our total
FTE selling and sales support personnel of 393, which is oriented
heavily toward supporting expansion of our Onsite locations. We had
an increase in our distribution and transportation FTE personnel of
119 to support increased product throughput at our distribution
facilities. We had an increase in our remaining FTE personnel of
106 which relates primarily to personnel investments in information
technology and business analytics.
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.
Six-month Period
Three-month Period
2024
2023
2024
2023
Branch openings
3
5
3
3
Branch closures, net of conversions
(1
)
(53
)
4
(28
)
Onsite activations
175
173
96
89
Onsite closures, net of conversions
(63
)
(68
)
(34
)
(35
)
Our in-market network forms the foundation of our business
strategy. In recent years, we have seen a gradual increase in our
in-market locations. This has reflected significant growth in
Onsites and, to a lesser degree, international branches, which has
more than overcome a meaningful decline in our traditional branch
network from a strategic rationalization that aligned our physical
footprint with changes in our business strategies. Branch closures
may occur in the future to reflect normal churn in our business,
but the strategic rationalization has concluded. As a result, we
expect to see an increase in the rate of in-market location growth
as we continue to open Onsites while our traditional branch network
remains stable or grows moderately to sustain and improve our North
American network, to continue our global expansion beyond North
America, and to support our growth drivers.
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 our
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 including our prospects to capture long-term value
from certain warehousing customers and the related end market, 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 or
deflation on our cost of goods, controlling SG&A expenses
including FTE growth, future traditional branch closures and
openings, 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
June 30, 2024
December 31, 2023
Current assets:
Cash and cash equivalents
$
255.5
221.3
Trade accounts receivable, net of
allowance for credit losses of $4.2 and $6.4, respectively
1,204.8
1,087.6
Inventories
1,504.6
1,522.7
Prepaid income taxes
16.5
17.5
Other current assets
165.3
171.8
Total current assets
3,146.7
3,020.9
Property and equipment, net
1,025.8
1,011.1
Operating lease right-of-use assets
275.5
270.2
Other assets
155.5
160.7
Total assets
$
4,603.5
4,462.9
Liabilities and Stockholders'
Equity
Current liabilities:
Current portion of debt
$
110.0
60.0
Accounts payable
292.6
264.1
Accrued expenses
216.2
241.0
Current portion of operating lease
liabilities
98.2
96.2
Total current liabilities
717.0
661.3
Long-term debt
125.0
200.0
Operating lease liabilities
183.0
178.8
Deferred income taxes
74.2
73.0
Other long-term liabilities
8.7
1.0
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, 572,620,247 and 571,982,367 shares issued and
outstanding, respectively
5.7
5.7
Additional paid-in capital
63.6
41.0
Retained earnings
3,500.8
3,356.9
Accumulated other comprehensive loss
(74.5
)
(54.8
)
Total stockholders' equity
3,495.6
3,348.8
Total liabilities and stockholders'
equity
$
4,603.5
4,462.9
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Statements
of Income
(Amounts in millions except
income per share)
(Unaudited)
(Unaudited)
Six Months Ended
June 30,
Three Months Ended
June 30,
2024
2023
2024
2023
Net sales
$
3,811.3
3,742.2
$
1,916.2
1,883.1
Cost of sales
2,086.2
2,034.7
1,052.7
1,025.6
Gross profit
1,725.1
1,707.5
863.5
857.5
Selling, general, and administrative
expenses
948.0
919.4
476.6
462.6
Operating income
777.1
788.1
386.9
394.9
Interest income
2.9
1.0
1.3
0.6
Interest expense
(3.8
)
(6.8
)
(1.8
)
(2.9
)
Income before income taxes
776.2
782.3
386.4
392.6
Income tax expense
185.8
189.2
93.7
94.6
Net income
$
590.4
593.1
$
292.7
298.0
Basic net income per share
$
1.03
1.04
$
0.51
0.52
Diluted net income per share
$
1.03
1.04
$
0.51
0.52
Basic weighted average shares
outstanding
572.5
571.0
572.6
571.1
Diluted weighted average shares
outstanding
574.1
572.8
574.1
572.9
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Statements
of Cash Flows
(Amounts in millions)
(Unaudited)
(Unaudited)
Six Months Ended
June 30,
Three Months Ended
June 30,
2024
2023
2024
2023
Cash flows from operating activities:
Net income
$
590.4
593.1
$
292.7
298.0
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of property and equipment
81.2
84.0
41.0
42.2
Gain on sale of property and equipment
(1.7
)
(1.2
)
(1.1
)
(0.6
)
Bad debt (recoveries) expense
(0.6
)
0.2
0.3
1.6
Deferred income taxes
1.2
0.6
0.4
0.3
Stock-based compensation
4.0
3.8
2.0
1.9
Amortization of intangible assets
5.4
5.4
2.7
2.7
Changes in operating assets and
liabilities:
Trade accounts receivable
(120.9
)
(155.0
)
6.7
(21.3
)
Inventories
12.2
145.6
(9.7
)
87.9
Other current assets
6.5
23.7
(28.4
)
(21.7
)
Accounts payable
30.7
9.9
15.1
1.4
Accrued expenses
(22.5
)
(11.3
)
9.4
0.6
Income taxes
1.0
(6.6
)
(73.5
)
(90.5
)
Other
6.7
(1.6
)
0.4
(0.4
)
Net cash provided by operating
activities
593.6
690.6
258.0
302.1
Cash flows from investing activities:
Purchases of property and equipment
(106.9
)
(89.6
)
(56.1
)
(55.9
)
Proceeds from sale of property and
equipment
6.0
4.8
3.5
2.0
Other
(0.2
)
(0.4
)
(0.1
)
(0.3
)
Net cash used in investing activities
(101.1
)
(85.2
)
(52.7
)
(54.2
)
Cash flows from financing activities:
Proceeds from debt obligations
385.0
635.0
225.0
405.0
Payments against debt obligations
(410.0
)
(840.0
)
(190.0
)
(455.0
)
Proceeds from exercise of stock
options
18.6
12.5
2.8
6.6
Cash dividends paid
(446.5
)
(399.7
)
(223.3
)
(199.9
)
Net cash used in financing activities
(452.9
)
(592.2
)
(185.5
)
(243.3
)
Effect of exchange rate changes on cash
and cash equivalents
(5.4
)
0.3
(1.4
)
(0.8
)
Net increase in cash and cash
equivalents
34.2
13.5
18.4
3.8
Cash and cash equivalents at beginning of
period
221.3
230.1
237.1
239.8
Cash and cash equivalents at end of
period
$
255.5
243.6
$
255.5
243.6
Supplemental information:
Cash paid for interest
$
4.2
8.2
$
1.8
3.1
Net cash paid for income taxes
$
181.8
193.7
$
165.8
184.0
Leased assets obtained in exchange for new
operating lease liabilities
$
49.4
64.3
$
19.0
38.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240711727737/en/
Taylor Ranta Oborski Financial Reporting & Regulatory
Compliance Manager 507.313.7959
Fastenal (NASDAQ:FAST)
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