Fastenal Company Reports 2024 First Quarter Earnings
- Net sales increased by 1.9% in Q1 2024 compared to Q1 2023.
- Fastenal signed 102 new Onsite locations and aims to sign between 375 to 400 in 2024.
- Daily sales through Onsite locations grew at a low single-digit rate.
- FMI Technology offerings, including FASTStock, FASTBin, and FASTVend, contributed to sales growth.
- Digital footprint represented 59.2% of total sales in Q1 2024, up from 54.1% in Q1 2023.
- Net income increased by 0.9%, while operating income decreased by 0.8%.
- SG&A expenses increased to 24.9% of net sales in Q1 2024.
- eCommerce sales grew by 33.6% and represented 28.6% of total sales.
- Gross profit percentage decreased to 45.5% in Q1 2024.
- Operating cash flow decreased by 13.6% in Q1 2024 compared to Q1 2023.
- Gross profit percentage decreased due to customer and product mix.
- Operating income decreased by 0.8% in Q1 2024.
- SG&A expenses increased to 24.9% of net sales in Q1 2024.
- Operating cash flow decreased by 13.6% in Q1 2024.
- Inventory reduction slowed in Q1 2024.
Insights
The financial results of Fastenal Company indicate a modest growth in net sales by 1.9% and a slight increase in net income by 0.9% for the quarter ended March 31, 2024. Notably, the company's gross profit margin has slightly declined and selling, general and administrative (SG&A) expenses as a percentage of net sales have risen, potentially signaling inefficiencies or increased operational costs. The stability in diluted net income per share suggests earnings growth is in line with share dilution factors, such as stock options exercise.
The company's performance in various product lines and end markets reveals a nuanced picture. The decline in sales of OEM and MRO fasteners could be a concern, as it may reflect a contraction in industrial production, which is a key driver of demand for Fastenal's products. However, the growth in safety supplies and other product lines, as well as the expansion of Onsite locations and digital sales, demonstrates the company's adaptability and potential areas of resilience.
Investors should consider the implications of Fastenal's operating cash flow decrease, which may affect the company's liquidity and ability to invest in growth opportunities. Additionally, the balance sheet reflects a significant reduction in inventories, which may indicate a strategic adjustment to optimize stock levels post-supply chain disruptions, potentially improving future cash flows.
Fastenal's strategic focus on expanding its Onsite locations and digital footprint is indicative of a shift towards providing integrated supply solutions and enhancing customer engagement through technology. The increase in sales through FMI technology and eCommerce platforms highlights the growing importance of digital channels in the industrial supply sector. This trend is likely to continue as businesses increasingly seek efficiency and inventory management solutions.
The divergence in performance between fastener and non-fastener product lines, as well as between manufacturing and non-manufacturing end markets, suggests that Fastenal's customer base is experiencing varying economic conditions. The company's ability to capture growth in specific sectors, such as safety supplies, may offset challenges in other areas. However, the slowdown in sales growth for national accounts versus non-national accounts could reflect a maturation of the market or increased competition for large-scale contracts.
From a market perspective, Fastenal's results provide insight into the broader industrial economy, indicating areas of strength and weakness. The performance of the non-residential construction sector, which experienced a decline in sales, may be a bellwether for future trends in the construction industry. Conversely, the growth in heavy manufacturing and other end markets could signal underlying economic resilience in those areas.
Fastenal's inventory management strategy, which has led to a significant reduction in inventory levels, reflects a response to previous supply chain disruptions. The company's efforts to rightsize inventory levels after deepening stock to support customer growth during the supply chain normalization process is a key aspect of working capital management. This reduction in inventory, coupled with modest deflation, can enhance the company's nimbleness and mitigate the risk of overstocking.
The increase in accounts payable suggests a strategic re-stocking of certain products, which may be in anticipation of future demand or to take advantage of favorable purchasing conditions. The timing of product purchases and payment terms, especially with the Good Friday holiday affecting sales at the end of the quarter, underscores the importance of understanding the cyclical nature of the business and its impact on the company's financials.
Overall, Fastenal's supply chain and working capital management practices will be critical in maintaining operational efficiency and supporting its growth initiatives. The company's ability to adapt to changing market conditions and optimize its inventory and accounts payable will continue to be a key factor in its financial performance.
PERFORMANCE SUMMARY
|
Three-month Period |
||||||||
|
2024 |
|
2023 |
|
Change |
||||
Net sales |
$ |
1,895.1 |
|
|
1,859.1 |
|
|
1.9 |
% |
Business days |
|
64 |
|
|
64 |
|
|
|
|
Daily sales |
$ |
29.6 |
|
|
29.0 |
|
|
1.9 |
% |
Gross profit |
$ |
861.6 |
|
|
850.0 |
|
|
1.4 |
% |
% of net sales |
|
45.5 |
% |
|
45.7 |
% |
|
|
|
Selling, general, and administrative expenses |
$ |
471.4 |
|
|
456.8 |
|
|
3.2 |
% |
% of net sales |
|
24.9 |
% |
|
24.6 |
% |
|
|
|
Operating income |
$ |
390.2 |
|
|
393.2 |
|
|
-0.8 |
% |
% of net sales |
|
20.6 |
% |
|
21.2 |
% |
|
|
|
Income before income taxes |
$ |
389.8 |
|
|
389.7 |
|
|
0.0 |
% |
% of net sales |
|
20.6 |
% |
|
21.0 |
% |
|
|
|
Net income |
$ |
297.7 |
|
|
295.1 |
|
|
0.9 |
% |
Diluted net income per share |
$ |
0.52 |
|
|
0.52 |
|
|
0.6 |
% |
|
|
|
|
|
|
||||
Note – Daily sales are defined as the total net sales for the period divided by the number of business days (in |
|||||||||
QUARTERLY RESULTS OF OPERATIONS
Sales
Net sales increased
We experienced higher unit sales in the first quarter of 2024 primarily due to growth with larger customers and Onsite locations opened in the last two years. The impact of product pricing was not material to net sales in the first quarter of 2024, as compared to the impact of product pricing on net sales in the first quarter of 2023 of 290 to 320 basis points. Incremental pricing actions over the past twelve months have been modest in scope, resulting in mostly stable price levels through the first 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. We continued to experience a divergence in the performance of our fastener versus our non-fastener product lines in the first 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, while the rate of outgrowth has slowed relative to what we experienced during the final two months of 2023, we continued to experience relatively faster growth with our retailer-oriented 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
|
|
% of Sales
|
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
OEM fasteners |
-4.0 |
% |
12.6 |
% |
|
19.6 |
% |
20.8 |
% |
MRO fasteners |
-5.1 |
% |
-1.1 |
% |
|
11.9 |
% |
12.8 |
% |
Total fasteners |
-4.4 |
% |
7.0 |
% |
|
31.5 |
% |
33.6 |
% |
Safety supplies |
8.3 |
% |
5.7 |
% |
|
21.6 |
% |
20.4 |
% |
Other product lines |
3.9 |
% |
12.4 |
% |
|
46.9 |
% |
46.0 |
% |
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 divergence in the performance of our manufacturing end market versus our non-manufacturing end markets in the first quarter of 2024, although the scale of that divergence has continued to narrow. These trends reflect a number of factors. First, we are growing relatively faster with key account customers with significant managed spend where our service model and technology is particularly impactful, which disproportionately benefits manufacturing customers. At the same time, this benefit has been increasingly offset by weakening end markets. Second, while our non-residential and reseller end markets remain relatively weak, they are beginning to come across easier comparisons in the preceding periods. Third, while the rate of outgrowth has slowed relative to what we experienced during the final two months of 2023, we continued to experience relatively faster growth with our retailer-oriented customers due to market share gains, product mix, and easier comparisons. This factor primarily benefited our other product lines. 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
|
|
% of Sales
|
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Heavy manufacturing |
2.7 |
% |
17.6 |
% |
|
43.4 |
% |
43.1 |
% |
Other manufacturing |
2.5 |
% |
10.2 |
% |
|
31.6 |
% |
31.5 |
% |
Total manufacturing |
2.6 |
% |
14.4 |
% |
|
75.0 |
% |
74.6 |
% |
Non-residential construction |
-6.6 |
% |
-2.4 |
% |
|
8.5 |
% |
9.3 |
% |
Reseller |
-2.5 |
% |
-5.7 |
% |
|
5.7 |
% |
6.0 |
% |
Other end markets |
7.7 |
% |
-3.6 |
% |
|
10.8 |
% |
10.1 |
% |
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
|
|
% of Sales
|
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
National accounts |
6.3 |
% |
13.6 |
% |
|
62.0 |
% |
59.2 |
% |
Non-national accounts |
-4.5 |
% |
3.4 |
% |
|
38.0 |
% |
40.8 |
% |
Growth Drivers
-
We signed 102 new Onsite locations (defined as dedicated sales and service provided from within, or in proximity to, the customer's facility) in the first quarter of 2024. We had 1,872 active sites on March 31, 2024, which represented an increase of
11.8% from March 31, 2023. Daily sales through our Onsite locations, excluding sales transferred from branches to new Onsites, grew at a low single-digit rate in the first quarter of 2024 over the first quarter of 2023. This growth is due to contributions from Onsites activated and implemented in 2024 and 2023, as well as an increase in revenues per location among our more mature locations. These factors were only partly offset by Onsite closures. 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.
The table below summarizes the signings and installations of, and sales through, our FMI devices.
|
Three-month Period |
||||||||
|
2024 |
|
2023 |
|
Change |
||||
Weighted FASTBin/FASTVend signings (MEUs) |
|
6,726 |
|
|
5,902 |
|
|
14.0 |
% |
Signings per day |
|
105 |
|
|
92 |
|
|
|
|
Weighted FASTBin/FASTVend installations (MEUs; end of period) |
|
115,653 |
|
|
104,673 |
|
|
10.5 |
% |
|
|
|
|
|
|
||||
FASTStock sales |
$ |
239.8 |
|
|
236.7 |
|
|
1.3 |
% |
% of sales |
|
12.5 |
% |
|
12.6 |
% |
|
|
|
FASTBin/FASTVend sales |
$ |
556.9 |
|
|
503.7 |
|
|
10.6 |
% |
% of sales |
|
29.0 |
% |
|
26.8 |
% |
|
|
|
FMI sales |
$ |
796.7 |
|
|
740.4 |
|
|
7.6 |
% |
FMI daily sales |
$ |
12.4 |
|
|
11.6 |
|
|
7.6 |
% |
% of sales |
|
41.5 |
% |
|
39.4 |
% |
|
|
|
Our goal for weighted FASTBin and FASTVend device signings in 2024 remains between 26,000 to 28,000 MEUs.
-
Our eCommerce business includes sales made through EDI, or other types of technical integrations, and through our web verticals. Daily sales through eCommerce grew
33.6% in the first quarter of 2024 and represented28.6% 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 first 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, increased to
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 net interest expense of
Income Taxes
We recorded income tax expense of
Net Income
Our net income during the first quarter of 2024 was
BALANCE SHEET AND CASH FLOW
We produced operating cash flow of
The dollar and percentage change in accounts receivable, net, inventories, and accounts payable as of March 31, 2024 when compared to March 31, 2023 were as follows:
|
|
March 31 |
Twelve-month
|
Twelve-month
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
||||
Accounts receivable, net |
|
$ |
1,213.2 |
|
1,149.8 |
|
$ |
63.4 |
|
|
5.5 |
% |
Inventories |
|
|
1,496.3 |
|
1,651.9 |
|
|
(155.6 |
) |
|
-9.4 |
% |
Trade working capital |
|
$ |
2,709.5 |
|
2,801.7 |
|
$ |
(92.2 |
) |
|
-3.3 |
% |
|
|
|
|
|
|
|
|
|
||||
Accounts payable |
|
$ |
276.0 |
|
266.8 |
|
$ |
9.2 |
|
|
3.4 |
% |
Trade working capital, net |
|
$ |
2,433.5 |
|
2,534.9 |
|
$ |
(101.4 |
) |
|
-4.0 |
% |
|
|
|
|
|
|
|
|
|
||||
Net sales in last three months |
|
$ |
1,895.1 |
|
1,859.1 |
|
$ |
36.1 |
|
|
1.9 |
% |
Note - Amounts may not foot due to rounding difference.
The increase in our accounts receivable balance in the first 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 first quarter of 2024 primarily reflects progress made 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. We have also experienced modest deflation in our inventory.
The increase in our accounts payable balance in the first quarter of 2024 was primarily attributable to our product purchases increasing to support the growth in our business. The growth in our accounts payable balance is above the growth in our sales reflecting re-stocking of certain products that were depleted to support certain customer needs during the fourth quarter of 2023. It also reflects the timing of the Good Friday holiday, as our purchasing activities remained steady relative to slower sales at the end of the first quarter of 2024.
During the first quarter of 2024, our investment in property and equipment, net of proceeds from sales, was
During the first 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
|
|
|
Change
|
||
|
Q1
|
|
Q4
|
Q4
|
|
Q1
|
Q1
|
||
Selling personnel - absolute employee headcount |
16,764 |
|
16,512 |
1.5 |
% |
|
16,178 |
3.6 |
% |
Selling personnel - FTE employee headcount |
15,102 |
|
15,070 |
0.2 |
% |
|
14,704 |
2.7 |
% |
Total personnel - absolute employee headcount |
23,695 |
|
23,201 |
2.1 |
% |
|
22,820 |
3.8 |
% |
Total personnel - FTE employee headcount |
20,935 |
|
20,721 |
1.0 |
% |
|
20,262 |
3.3 |
% |
|
|
|
|
|
|
|
|
||
Number of branch locations |
1,592 |
|
1,597 |
-0.3 |
% |
|
1,660 |
-4.1 |
% |
Number of active Onsite locations |
1,872 |
|
1,822 |
2.7 |
% |
|
1,674 |
11.8 |
% |
Number of in-market locations |
3,464 |
|
3,419 |
1.3 |
% |
|
3,334 |
3.9 |
% |
Weighted FMI devices (MEU installed count) |
115,653 |
|
113,138 |
2.2 |
% |
|
104,673 |
10.5 |
% |
During the last twelve months, we increased our total FTE employee headcount by 673. This reflects an increase in our total FTE selling personnel of 398 to support growth in the marketplace and sales initiatives targeting customer acquisition. We had an increase in our distribution and transportation FTE personnel of 158 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 117 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.
|
Three-month Period |
|||
|
2024 |
2023 |
||
Branch openings |
— |
|
2 |
|
Branch closures, net of conversions |
(5 |
) |
(25 |
) |
|
|
|
||
Onsite activations |
79 |
|
84 |
|
Onsite closures, net of conversions |
(29 |
) |
(33 |
) |
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 Onsites continue to increase while our traditional branch network remains stable or grows moderately to sustain and improve our network and 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 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.
ANNUAL MEETING OF SHAREHOLDERS WEBCAST
On Thursday, April 25, 2024, we will be holding our Annual Meeting of Shareholders (the 'Annual Meeting') at the Remlinger Muscle Car Museum located at 3560 Service Drive,
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 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 |
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Condensed Consolidated Balance Sheets |
|||||||
(Amounts in millions except share information) |
|||||||
|
|
|
|
|
|||
|
|
(Unaudited) |
|
|
|||
Assets |
|
March 31,
|
|
December 31,
|
|||
Current assets: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
237.1 |
|
|
221.3 |
|
Trade accounts receivable, net of allowance for credit losses of |
|
|
1,213.2 |
|
|
1,087.6 |
|
Inventories |
|
|
1,496.3 |
|
|
1,522.7 |
|
Prepaid income taxes |
|
|
— |
|
|
17.5 |
|
Other current assets |
|
|
136.9 |
|
|
171.8 |
|
Total current assets |
|
|
3,083.5 |
|
|
3,020.9 |
|
|
|
|
|
|
|||
Property and equipment, net |
|
|
1,013.0 |
|
|
1,011.1 |
|
Operating lease right-of-use assets |
|
|
278.1 |
|
|
270.2 |
|
Other assets |
|
|
158.1 |
|
|
160.7 |
|
|
|
|
|
|
|||
Total assets |
|
$ |
4,532.7 |
|
|
4,462.9 |
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|||
Current portion of debt |
|
$ |
— |
|
|
60.0 |
|
Accounts payable |
|
|
276.0 |
|
|
264.1 |
|
Accrued expenses |
|
|
207.5 |
|
|
241.0 |
|
Current portion of operating lease liabilities |
|
|
97.4 |
|
|
96.2 |
|
Income taxes payable |
|
|
57.0 |
|
|
— |
|
Total current liabilities |
|
|
637.9 |
|
|
661.3 |
|
|
|
|
|
|
|||
Long-term debt |
|
|
200.0 |
|
|
200.0 |
|
Operating lease liabilities |
|
|
186.0 |
|
|
178.8 |
|
Deferred income taxes |
|
|
73.8 |
|
|
73.0 |
|
Other long-term liabilities |
|
|
5.8 |
|
|
1.0 |
|
|
|
|
|
|
|||
Stockholders' equity: |
|
|
|
|
|||
Preferred stock: |
|
|
— |
|
|
— |
|
Common stock: |
|
|
5.7 |
|
|
5.7 |
|
Additional paid-in capital |
|
|
58.8 |
|
|
41.0 |
|
Retained earnings |
|
|
3,431.4 |
|
|
3,356.9 |
|
Accumulated other comprehensive loss |
|
|
(66.7 |
) |
|
(54.8 |
) |
Total stockholders' equity |
|
|
3,429.2 |
|
|
3,348.8 |
|
Total liabilities and stockholders' equity |
|
$ |
4,532.7 |
|
|
4,462.9 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
||||||
Condensed Consolidated Statements of Income |
||||||
(Amounts in millions except income per share) |
||||||
|
|
|
|
|||
|
(Unaudited) |
|||||
|
Three Months Ended
|
|||||
|
2024 |
|
2023 |
|||
Net sales |
$ |
1,895.1 |
|
|
1,859.1 |
|
|
|
|
|
|||
Cost of sales |
|
1,033.5 |
|
|
1,009.1 |
|
Gross profit |
|
861.6 |
|
|
850.0 |
|
|
|
|
|
|||
Selling, general, and administrative expenses |
|
471.4 |
|
|
456.8 |
|
Operating income |
|
390.2 |
|
|
393.2 |
|
|
|
|
|
|||
Interest income |
|
1.6 |
|
|
0.4 |
|
Interest expense |
|
(2.0 |
) |
|
(3.9 |
) |
|
|
|
|
|||
Income before income taxes |
|
389.8 |
|
|
389.7 |
|
|
|
|
|
|||
Income tax expense |
|
92.1 |
|
|
94.6 |
|
|
|
|
|
|||
Net income |
$ |
297.7 |
|
|
295.1 |
|
|
|
|
|
|||
Basic net income per share |
$ |
0.52 |
|
|
0.52 |
|
|
|
|
|
|||
Diluted net income per share |
$ |
0.52 |
|
|
0.52 |
|
|
|
|
|
|||
Basic weighted average shares outstanding |
|
572.3 |
|
|
570.9 |
|
|
|
|
|
|||
Diluted weighted average shares outstanding |
|
574.1 |
|
|
572.6 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
||||||
Condensed Consolidated Statements of Cash Flows |
||||||
(Amounts in millions) |
||||||
|
|
|
|
|||
|
(Unaudited) |
|||||
|
Three Months Ended
|
|||||
|
2024 |
|
2023 |
|||
Cash flows from operating activities: |
|
|
|
|||
Net income |
$ |
297.7 |
|
|
295.1 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||
Depreciation of property and equipment |
|
40.2 |
|
|
41.8 |
|
Gain on sale of property and equipment |
|
(0.6 |
) |
|
(0.6 |
) |
Bad debt recoveries |
|
(0.9 |
) |
|
(1.4 |
) |
Deferred income taxes |
|
0.8 |
|
|
0.3 |
|
Stock-based compensation |
|
2.0 |
|
|
1.9 |
|
Amortization of intangible assets |
|
2.7 |
|
|
2.7 |
|
Changes in operating assets and liabilities: |
|
|
|
|||
Trade accounts receivable |
|
(127.6 |
) |
|
(133.7 |
) |
Inventories |
|
21.9 |
|
|
57.7 |
|
Other current assets |
|
34.9 |
|
|
45.4 |
|
Accounts payable |
|
15.6 |
|
|
8.5 |
|
Accrued expenses |
|
(31.9 |
) |
|
(11.9 |
) |
Income taxes |
|
74.5 |
|
|
83.9 |
|
Other |
|
6.3 |
|
|
(1.2 |
) |
Net cash provided by operating activities |
|
335.6 |
|
|
388.5 |
|
|
|
|
|
|||
Cash flows from investing activities: |
|
|
|
|||
Purchases of property and equipment |
|
(50.8 |
) |
|
(33.7 |
) |
Proceeds from sale of property and equipment |
|
2.5 |
|
|
2.8 |
|
Other |
|
(0.1 |
) |
|
(0.1 |
) |
Net cash used in investing activities |
|
(48.4 |
) |
|
(31.0 |
) |
|
|
|
|
|||
Cash flows from financing activities: |
|
|
|
|||
Proceeds from debt obligations |
|
160.0 |
|
|
230.0 |
|
Payments against debt obligations |
|
(220.0 |
) |
|
(385.0 |
) |
Proceeds from exercise of stock options |
|
15.8 |
|
|
5.9 |
|
Cash dividends paid |
|
(223.2 |
) |
|
(199.8 |
) |
Net cash used in financing activities |
|
(267.4 |
) |
|
(348.9 |
) |
|
|
|
|
|||
Effect of exchange rate changes on cash and cash equivalents |
|
(4.0 |
) |
|
1.1 |
|
|
|
|
|
|||
Net increase in cash and cash equivalents |
|
15.8 |
|
|
9.7 |
|
|
|
|
|
|||
Cash and cash equivalents at beginning of period |
|
221.3 |
|
|
230.1 |
|
Cash and cash equivalents at end of period |
$ |
237.1 |
|
|
239.8 |
|
|
|
|
|
|||
Supplemental information: |
|
|
|
|||
Cash paid for interest |
$ |
2.4 |
|
|
5.1 |
|
Net cash paid for income taxes |
$ |
15.9 |
|
|
9.7 |
|
Leased assets obtained in exchange for new operating lease liabilities |
$ |
30.4 |
|
|
25.9 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240410932569/en/
Taylor Ranta Oborski
Financial Reporting & Regulatory Compliance Manager
507.313.7959
Source: Fastenal Company
FAQ
What was the percentage increase in net sales for Fastenal in Q1 2024 compared to Q1 2023?
How many new Onsite locations did Fastenal sign in Q1 2024?
What percentage of total sales did the digital footprint represent in Q1 2024?
Did Fastenal's operating income increase or decrease in Q1 2024?
What was the growth rate of eCommerce sales in Q1 2024?
Why did Fastenal's gross profit percentage decrease in Q1 2024?
How did Fastenal's operating cash flow change in Q1 2024 compared to Q1 2023?
