Fastenal Company Reports 2024 Annual and Fourth Quarter Earnings
PERFORMANCE SUMMARY
|
Twelve-month Period |
|
Three-month Period |
||||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||
Net sales |
$ |
7,546.0 |
|
|
7,346.7 |
|
|
2.7 |
% |
|
$ |
1,824.5 |
|
|
1,758.6 |
|
|
3.7 |
% |
Business days |
|
255 |
|
|
253 |
|
|
|
|
|
63 |
|
|
62 |
|
|
|
||
Daily sales |
$ |
29.6 |
|
|
29.0 |
|
|
1.9 |
% |
|
$ |
29.0 |
|
|
28.4 |
|
|
2.1 |
% |
Gross profit |
$ |
3,401.9 |
|
|
3,354.5 |
|
|
1.4 |
% |
|
$ |
818.2 |
|
|
799.4 |
|
|
2.3 |
% |
% of net sales |
|
45.1 |
% |
|
45.7 |
% |
|
|
|
|
44.8 |
% |
|
45.5 |
% |
|
|
||
SG&A expenses |
$ |
1,891.9 |
|
|
1,825.8 |
|
|
3.6 |
% |
|
$ |
473.4 |
|
|
445.5 |
|
|
6.2 |
% |
% of net sales |
|
25.1 |
% |
|
24.9 |
% |
|
|
|
|
25.9 |
% |
|
25.3 |
% |
|
|
||
Operating income |
$ |
1,510.0 |
|
|
1,528.7 |
|
|
-1.2 |
% |
|
$ |
344.8 |
|
|
353.9 |
|
|
-2.6 |
% |
% of net sales |
|
20.0 |
% |
|
20.8 |
% |
|
|
|
|
18.9 |
% |
|
20.1 |
% |
|
|
||
Income before income taxes |
$ |
1,508.1 |
|
|
1,522.0 |
|
|
-0.9 |
% |
|
$ |
344.3 |
|
|
354.2 |
|
|
-2.8 |
% |
% of net sales |
|
20.0 |
% |
|
20.7 |
% |
|
|
|
|
18.9 |
% |
|
20.1 |
% |
|
|
||
Net income |
$ |
1,150.6 |
|
|
1,155.0 |
|
|
-0.4 |
% |
|
$ |
262.1 |
|
|
266.4 |
|
|
-1.6 |
% |
Diluted net income per share |
$ |
2.00 |
|
|
2.02 |
|
|
-0.6 |
% |
|
$ |
0.46 |
|
|
0.46 |
|
|
-1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Note – Daily sales are defined as the total net sales for the period divided by the number of business days (in the |
QUARTERLY RESULTS OF OPERATIONS
Sales
Net sales increased
An increase in unit sales in the fourth quarter of 2024 was primarily due to growth at Onsite locations opened in the last two years and, to a lesser extent, larger customers not serviced through an Onsite. This more than offset weaker activity with smaller customers and non-manufacturing end markets. The impact of product pricing on net sales in the fourth quarter of 2024 was not material, in contrast to the fourth quarter of 2023, when the impact of product pricing was modestly positive. Price levels remained relatively stable in the fourth quarter of 2024.
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. The rate of contraction of our fastener line eased in the fourth quarter of 2024, but continued to lag our non-fastener product lines. Product categories, like fasteners, that are more closely aligned with final goods production tend to be more significantly impacted by periods of weak industrial production, such as we are currently experiencing. We achieved growth in our safety category reflecting the lower volatility of PPE demand and our success in growing our vending installed base. Moderation in the rate of growth reflects a difficult comparison in our warehousing end market as a result of strong holiday-related shipments we experienced in the fourth quarter of 2023. Other product lines experienced stronger growth from MRO-oriented lines, such as electrical and janitorial, than from OEM-oriented lines, such as tools, cutting tool, and welding and abrasives. 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 |
0.4 |
% |
-1.2 |
% |
|
19.0 |
% |
19.4 |
% |
MRO fasteners |
-4.5 |
% |
-4.1 |
% |
|
10.9 |
% |
11.7 |
% |
Total fasteners |
-1.4 |
% |
-2.3 |
% |
|
29.9 |
% |
31.1 |
% |
Safety supplies |
4.8 |
% |
9.4 |
% |
|
23.0 |
% |
22.5 |
% |
Other product lines |
4.0 |
% |
5.3 |
% |
|
47.1 |
% |
46.4 |
% |
Total non-fasteners |
4.3 |
% |
6.6 |
% |
|
70.1 |
% |
68.9 |
% |
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. Our manufacturing end markets outperformed primarily due to 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. We believe weakness in our reseller end market reflected efforts in many industries to reduce channel inventories. Other end market sales were favorably impacted by growth with state and local government customers and data center 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 |
1.7 |
% |
5.8 |
% |
|
42.3 |
% |
42.5 |
% |
Other manufacturing |
5.4 |
% |
3.3 |
% |
|
32.0 |
% |
31.1 |
% |
Total manufacturing |
3.3 |
% |
4.7 |
% |
|
74.3 |
% |
73.6 |
% |
Non-residential construction |
-4.1 |
% |
-7.4 |
% |
|
8.2 |
% |
8.8 |
% |
Reseller |
-11.3 |
% |
-7.9 |
% |
|
4.9 |
% |
5.6 |
% |
Other end markets |
7.6 |
% |
13.5 |
% |
|
12.6 |
% |
12.0 |
% |
Total non-manufacturing |
-0.3 |
% |
0.9 |
% |
|
25.7 |
% |
26.4 |
% |
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 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 |
4.2 |
% |
8.5 |
% |
|
64.2 |
% |
62.0 |
% |
Non-national accounts |
-1.0 |
% |
-3.2 |
% |
|
35.8 |
% |
38.0 |
% |
Growth Drivers
-
We signed 56 new Onsite locations (defined as dedicated sales and service provided from within, or in proximity to, the customer's facility) in the fourth quarter of 2024, resulting in 358 new Onsite location signings for the full year. The full year number was below our goal of 375 to 400 signings, though did constitute an increase from 2023 (326 signings) and was consistent with previous peak signing years in 2019 (362 signings) and 2022 (356 signings). We had 2,031 active sites on December 31, 2024, which represented an increase of
11.5% from December 31, 2023. Daily sales through our Onsite locations, excluding sales transferred from branches to new Onsites, grew at a mid single-digit rate in the fourth quarter of 2024 over the fourth 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 the associated decline in revenues from Onsites activated prior to 2023. - FMI Technology comprises our FASTStock℠ (scanned stocking locations), FASTBin® (infrared, RFID, and scaled bins), and FASTVend® (vending devices) offerings. 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.
-
We signed 6,790 weighted FASTBin and FASTVend devices in the fourth quarter of 2024, resulting in 27,984 new FASTBin and FASTVend signings for the full year. This was consistent with our goal of signing between 26,000 and 28,000 MEUs in 2024. Our goal for weighted FASTBin and FASTVend device signings in 2025 is between 28,000 to 30,000 MEUs.
The table below summarizes the signings and installations of, and sales through, our FMI devices.
|
Twelve-month Period |
|
Three-month Period |
||||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||
Weighted FASTBin/FASTVend signings (MEUs) |
|
27,984 |
|
|
24,126 |
|
|
16.0 |
% |
|
|
6,790 |
|
|
5,462 |
|
|
24.3 |
% |
Signings per day |
|
110 |
|
|
95 |
|
|
|
|
|
108 |
|
|
88 |
|
|
|
||
Weighted FASTBin/FASTVend installations (MEUs; end of period) |
|
|
|
|
|
|
|
126,957 |
|
|
113,138 |
|
|
12.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
FASTStock sales |
$ |
956.6 |
|
|
927.6 |
|
|
3.1 |
% |
|
$ |
227.6 |
|
|
219.0 |
|
|
3.9 |
% |
% of sales |
|
12.5 |
% |
|
12.5 |
% |
|
|
|
|
12.3 |
% |
|
12.3 |
% |
|
|
||
FASTBin/FASTVend sales |
$ |
2,295.5 |
|
|
2,070.2 |
|
|
10.9 |
% |
|
$ |
584.8 |
|
|
519.6 |
|
|
12.6 |
% |
% of sales |
|
30.0 |
% |
|
27.8 |
% |
|
|
|
|
31.6 |
% |
|
29.2 |
% |
|
|
||
FMI sales |
$ |
3,252.1 |
|
|
2,997.8 |
|
|
8.5 |
% |
|
$ |
812.4 |
|
|
738.6 |
|
|
10.0 |
% |
FMI daily sales |
$ |
12.8 |
|
|
11.8 |
|
|
7.6 |
% |
|
$ |
12.9 |
|
|
11.9 |
|
|
8.2 |
% |
% of sales |
|
42.5 |
% |
|
40.3 |
% |
|
|
|
|
43.9 |
% |
|
41.5 |
% |
|
|
-
Our eBusiness includes eProcurement activities, which are 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
27.6% in the fourth quarter of 2024 and represented30.9% of our total sales in the period. In the fourth quarter of 2024, daily sales through eProcurement and eCommerce grew37.6% and2.0% , 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 fourth quarter of 2024 represented
Gross Profit
Our gross profit, as a percentage of net sales, decreased to
SG&A Expenses
Our SG&A expenses, as a percentage of net sales, were
Employee-related expenses, which represent
Occupancy-related expenses, which represent
Combined, all other SG&A expenses, which represent
Operating Income
Our operating income, as a percentage of net sales, decreased to
Net Interest
We had lower interest income reflecting a reduction in capital being invested in higher-earning short-term instruments during the period. We had higher cash balances in the fourth quarter of 2023 prior to paying a special fifth dividend toward the end of the period. We also had lower interest expense as a result of lower average borrowings through the fourth quarter of 2024. The greater reduction in interest income relative to interest expense resulted in our generating net interest expense of
Income Taxes
We recorded income tax expense of
Net Income
Our net income during the fourth quarter of 2024 was
BALANCE SHEET AND CASH FLOW
Net cash provided by operating activities was
In 2024, net cash provided by operating activities was
The dollar and percentage change in accounts receivable, net, inventories, and accounts payable as of December 31, 2024 when compared to December 31, 2023 were as follows:
|
|
December 31 |
Twelve-month Dollar Change |
Twelve-month Percentage Change |
|||||||
|
|
2024 |
|
2023 |
|
2024 |
2024 |
||||
Accounts receivable, net |
|
$ |
1,108.6 |
|
1,087.6 |
|
$ |
21.0 |
|
1.9 |
% |
Inventories |
|
|
1,645.0 |
|
1,522.7 |
|
|
122.3 |
|
8.0 |
% |
Trade working capital |
|
$ |
2,753.6 |
|
2,610.3 |
|
$ |
143.3 |
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
$ |
287.7 |
|
264.1 |
|
$ |
23.6 |
|
8.9 |
% |
Trade working capital, net |
|
$ |
2,465.9 |
|
2,346.2 |
|
$ |
119.7 |
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|||
Net sales in last three months |
|
$ |
1,824.5 |
|
1,758.6 |
|
$ |
65.9 |
|
3.7 |
% |
Note - Amounts may not foot due to rounding difference.
The increase in our accounts receivable balance in the fourth quarter of 2024 was primarily attributable to growth in sales to our customers.
The increase in our inventory balance in the fourth quarter of 2024 was primarily attributable to three factors. First, our inventory increased as a result of growth in sales to our customers and the addition of stock to ensure we can support our customers' future growth. Second, we added
The increase in our accounts payable balance in the fourth quarter of 2024 was primarily attributable to an increase in our product purchases as reflected in the growth in inventories.
During the fourth quarter of 2024, our investment in property and equipment, net of proceeds from sales, was
For 2025, we expect our investment in property and equipment, net of proceeds from sales, to be within a range of
During the fourth quarter of 2024, we returned
Total debt on our balance sheet was
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: |
||
|
Q4 2024 |
|
Q3 2024 |
Q3 2024 |
|
Q4 2023 |
Q4 2023 |
||
Selling personnel - absolute employee headcount |
16,712 |
|
16,666 |
0.3 |
% |
|
16,512 |
1.2 |
% |
Selling personnel - FTE employee headcount |
15,055 |
|
15,080 |
-0.2 |
% |
|
15,070 |
-0.1 |
% |
Total personnel - absolute employee headcount |
23,702 |
|
23,518 |
0.8 |
% |
|
23,201 |
2.2 |
% |
Total personnel - FTE employee headcount |
20,958 |
|
20,894 |
0.3 |
% |
|
20,721 |
1.1 |
% |
|
|
|
|
|
|
|
|
||
Number of branch locations |
1,597 |
|
1,597 |
— |
% |
|
1,597 |
— |
% |
Number of active Onsite locations |
2,031 |
|
1,986 |
2.3 |
% |
|
1,822 |
11.5 |
% |
Number of in-market locations |
3,628 |
|
3,583 |
1.3 |
% |
|
3,419 |
6.1 |
% |
Weighted FMI devices (MEU installed count) |
126,957 |
|
123,193 |
3.1 |
% |
|
113,138 |
12.2 |
% |
During the last twelve months, we increased our total FTE employee headcount by 237. Our total FTE selling and sales support personnel decreased by 15. While we added FTE to support growth in our Onsite locations, we reduced personnel at our branch locations reflecting both shifts to Onsite locations and tight management of headcount given challenging business conditions. We had an increase in our distribution and transportation FTE personnel of 115 to support increased product throughput at our distribution facilities. We had an increase in our remaining FTE personnel of 137 which related primarily to personnel investments in manufacturing, quality control, IT, 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.
|
Twelve-month Period |
|
Three-month Period |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Branch openings |
11 |
|
10 |
|
|
4 |
|
2 |
|
Branch closures, net of conversions |
(11 |
) |
(96 |
) |
|
(4 |
) |
(20 |
) |
% of net closures vs. prior year-end number of branch locations |
-0.7 |
% |
-5.7 |
% |
|
-0.3 |
% |
-1.2 |
% |
|
|
|
|
|
|
||||
Onsite activations |
343 |
|
329 |
|
|
75 |
|
77 |
|
Onsite closures, net of conversions |
(134 |
) |
(130 |
) |
|
(30 |
) |
(33 |
) |
% of net closures vs. prior year-end number of Onsite locations |
-7.4 |
% |
-8.0 |
% |
|
-1.6 |
% |
-2.0 |
% |
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
CONFERENCE CALL TO DISCUSS QUARTERLY AND ANNUAL RESULTS
As we previously disclosed, we will host a conference call today to review the quarterly and annual 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, future sales attributable to our Digital Footprint, 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, the impact of fluctuations in freight and shipping costs, future operating results and business activity, and the impact of natural disasters on daily sales. 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 and per share information) |
|||||||
|
|
|
|
|
|||
|
|
December 31,
|
|
December 31,
|
|||
Assets |
|
(Unaudited) |
|
|
|||
Current assets: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
255.8 |
|
|
221.3 |
|
Trade accounts receivable, net of allowance for credit losses of respectively |
|
|
1,108.6 |
|
|
1,087.6 |
|
Inventories |
|
|
1,645.0 |
|
|
1,522.7 |
|
Prepaid income taxes |
|
|
18.8 |
|
|
17.5 |
|
Other current assets |
|
|
183.7 |
|
|
171.8 |
|
Total current assets |
|
|
3,211.9 |
|
|
3,020.9 |
|
|
|
|
|
|
|||
Property and equipment, net |
|
|
1,056.6 |
|
|
1,011.1 |
|
Operating lease right-of-use assets |
|
|
279.2 |
|
|
270.2 |
|
Other assets |
|
|
150.3 |
|
|
160.7 |
|
|
|
|
|
|
|||
Total assets |
|
$ |
4,698.0 |
|
|
4,462.9 |
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|||
Current portion of debt |
|
$ |
75.0 |
|
|
60.0 |
|
Accounts payable |
|
|
287.7 |
|
|
264.1 |
|
Accrued expenses |
|
|
225.6 |
|
|
241.0 |
|
Current portion of operating lease liabilities |
|
|
98.8 |
|
|
96.2 |
|
Total current liabilities |
|
|
687.1 |
|
|
661.3 |
|
|
|
|
|
|
|||
Long-term debt |
|
|
125.0 |
|
|
200.0 |
|
Operating lease liabilities |
|
|
186.6 |
|
|
178.8 |
|
Deferred income taxes |
|
|
68.9 |
|
|
73.0 |
|
Other long-term liabilities |
|
|
14.1 |
|
|
1.0 |
|
|
|
|
|
|
|||
Stockholders' equity: |
|
|
|
|
|||
Preferred stock: outstanding |
|
|
— |
|
|
— |
|
Common stock: 571,982,367 shares issued and outstanding, respectively |
|
|
5.7 |
|
|
5.7 |
|
Additional paid-in capital |
|
|
88.6 |
|
|
41.0 |
|
Retained earnings |
|
|
3,613.5 |
|
|
3,356.9 |
|
Accumulated other comprehensive loss |
|
|
(91.5 |
) |
|
(54.8 |
) |
Total stockholders' equity |
|
|
3,616.3 |
|
|
3,348.8 |
|
Total liabilities and stockholders' equity |
|
$ |
4,698.0 |
|
|
4,462.9 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
|||||||||||||
Condensed Consolidated Statements of Income |
|||||||||||||
(Amounts in millions except income per share) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
||||||||||
|
Year Ended December 31, |
|
Three Months Ended December 31, |
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
||||||
Net sales |
$ |
7,546.0 |
|
|
7,346.7 |
|
|
$ |
1,824.5 |
|
|
1,758.6 |
|
Cost of sales |
|
4,144.1 |
|
|
3,992.2 |
|
|
|
1,006.3 |
|
|
959.2 |
|
Gross profit |
|
3,401.9 |
|
|
3,354.5 |
|
|
|
818.2 |
|
|
799.4 |
|
|
|
|
|
|
|
|
|
||||||
Selling, general, and administrative expenses |
|
1,891.9 |
|
|
1,825.8 |
|
|
|
473.4 |
|
|
445.5 |
|
Operating income |
|
1,510.0 |
|
|
1,528.7 |
|
|
|
344.8 |
|
|
353.9 |
|
|
|
|
|
|
|
|
|
||||||
Interest income |
|
5.4 |
|
|
4.1 |
|
|
|
1.2 |
|
|
2.3 |
|
Interest expense |
|
(7.3 |
) |
|
(10.8 |
) |
|
|
(1.7 |
) |
|
(2.0 |
) |
Income before income taxes |
|
1,508.1 |
|
|
1,522.0 |
|
|
|
344.3 |
|
|
354.2 |
|
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
357.5 |
|
|
367.0 |
|
|
|
82.2 |
|
|
87.8 |
|
Net income |
$ |
1,150.6 |
|
|
1,155.0 |
|
|
$ |
262.1 |
|
|
266.4 |
|
|
|
|
|
|
|
|
|
||||||
Basic net income per share |
$ |
2.01 |
|
|
2.02 |
|
|
$ |
0.46 |
|
|
0.47 |
|
Diluted net income per share |
$ |
2.00 |
|
|
2.02 |
|
|
$ |
0.46 |
|
|
0.46 |
|
|
|
|
|
|
|
|
|
||||||
Basic weighted average shares outstanding |
|
572.7 |
|
|
571.3 |
|
|
|
573.2 |
|
|
571.7 |
|
Diluted weighted average shares outstanding |
|
574.3 |
|
|
573.0 |
|
|
|
574.7 |
|
|
573.4 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
|||||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||||
(Amounts in millions) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
Year Ended December 31, |
|
Three Months Ended December 31, |
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||
Net income |
$ |
1,150.6 |
|
|
1,155.0 |
|
|
$ |
262.1 |
|
|
266.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||
Depreciation of property and equipment |
|
164.7 |
|
|
166.6 |
|
|
|
41.7 |
|
|
40.5 |
|
Gain on sale of property and equipment |
|
(3.8 |
) |
|
(4.3 |
) |
|
|
(0.8 |
) |
|
(1.6 |
) |
Bad debt expense |
|
1.3 |
|
|
2.2 |
|
|
|
1.5 |
|
|
0.8 |
|
Deferred income taxes |
|
(4.1 |
) |
|
(10.7 |
) |
|
|
(6.9 |
) |
|
(6.3 |
) |
Stock-based compensation |
|
8.0 |
|
|
7.3 |
|
|
|
2.0 |
|
|
1.7 |
|
Amortization of intangible assets |
|
10.7 |
|
|
10.7 |
|
|
|
2.7 |
|
|
2.7 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||
Trade accounts receivable |
|
(31.9 |
) |
|
(72.3 |
) |
|
|
81.6 |
|
|
87.2 |
|
Inventories |
|
(133.9 |
) |
|
189.1 |
|
|
|
(97.7 |
) |
|
(2.6 |
) |
Other current assets |
|
(11.9 |
) |
|
(6.4 |
) |
|
|
7.7 |
|
|
(21.8 |
) |
Accounts payable |
|
27.5 |
|
|
8.4 |
|
|
|
(12.8 |
) |
|
(13.3 |
) |
Accrued expenses |
|
(16.5 |
) |
|
(0.6 |
) |
|
|
(1.7 |
) |
|
4.1 |
|
Income taxes |
|
(1.3 |
) |
|
(9.4 |
) |
|
|
(2.0 |
) |
|
(2.2 |
) |
Other |
|
13.9 |
|
|
(2.9 |
) |
|
|
5.4 |
|
|
(1.6 |
) |
Net cash provided by operating activities |
|
1,173.3 |
|
|
1,432.7 |
|
|
|
282.8 |
|
|
354.0 |
|
|
|
|
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||
Purchases of property and equipment |
|
(226.5 |
) |
|
(172.8 |
) |
|
|
(60.2 |
) |
|
(36.3 |
) |
Proceeds from sale of property and equipment |
|
12.4 |
|
|
12.2 |
|
|
|
2.8 |
|
|
3.4 |
|
Other |
|
(0.4 |
) |
|
(0.6 |
) |
|
|
(0.1 |
) |
|
(0.1 |
) |
Net cash used in investing activities |
|
(214.5 |
) |
|
(161.2 |
) |
|
|
(57.5 |
) |
|
(33.0 |
) |
|
|
|
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||
Proceeds from debt obligations |
|
775.0 |
|
|
880.0 |
|
|
|
185.0 |
|
|
90.0 |
|
Payments against debt obligations |
|
(835.0 |
) |
|
(1,175.0 |
) |
|
|
(225.0 |
) |
|
(90.0 |
) |
Proceeds from exercise of stock options |
|
39.6 |
|
|
30.1 |
|
|
|
13.3 |
|
|
14.7 |
|
Cash dividends paid |
|
(893.3 |
) |
|
(1,016.8 |
) |
|
|
(223.4 |
) |
|
(417.3 |
) |
Net cash used in financing activities |
|
(913.7 |
) |
|
(1,281.7 |
) |
|
|
(250.1 |
) |
|
(402.6 |
) |
|
|
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents |
|
(10.6 |
) |
|
1.4 |
|
|
|
(11.6 |
) |
|
5.4 |
|
|
|
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents |
|
34.5 |
|
|
(8.8 |
) |
|
|
(36.4 |
) |
|
(76.2 |
) |
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of period |
|
221.3 |
|
|
230.1 |
|
|
|
292.2 |
|
|
297.5 |
|
Cash and cash equivalents at end of period |
$ |
255.8 |
|
|
221.3 |
|
|
$ |
255.8 |
|
|
221.3 |
|
|
|
|
|
|
|
|
|
||||||
Supplemental information: |
|
|
|
|
|
|
|
||||||
Cash paid for interest |
$ |
7.8 |
|
|
12.2 |
|
|
$ |
1.8 |
|
|
1.9 |
|
Net cash paid for income taxes |
$ |
356.5 |
|
|
383.0 |
|
|
$ |
87.1 |
|
|
95.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250116950607/en/
Taylor Ranta Oborski
Accounting Manager
507.313.7959
Source: Fastenal Company