Fastenal Company Reports 2024 Third Quarter Earnings
Fastenal Company (FAST) reported its Q3 2024 earnings with net sales increasing 3.5% to $1,910.2 million. The company's daily sales rate grew 1.9% compared to Q3 2023. Net income rose 0.9% to $298.1 million, with diluted earnings per share remaining unchanged at $0.52. Fastenal's gross profit margin decreased to 44.9% from 45.9% in Q3 2023, while SG&A expenses as a percentage of net sales improved to 24.6% from 25.0%. The company signed 93 new Onsite locations in Q3, bringing the year-to-date total to 302. FMI Technology sales grew 9.3% and represented 43.0% of total sales. Fastenal's Digital Footprint increased to 61.1% of sales, up from 57.1% in Q3 2023. The company's operating cash flow decreased 23.5% to $296.9 million, representing 99.6% of net income.
Fastenal Company (FAST) ha riportato i suoi utili per il terzo trimestre del 2024, con vendite nette in aumento del 3,5% a 1.910,2 milioni di dollari. Il tasso di vendita giornaliero dell'azienda è cresciuto dell'1,9% rispetto al terzo trimestre del 2023. Il reddito netto è aumentato dello 0,9% a 298,1 milioni di dollari, con utili per azione diluiti rimasti invariati a $0,52. Il margine di profitto lordo di Fastenal è diminuito al 44,9% rispetto al 45,9% nel Q3 2023, mentre le spese SG&A come percentuale delle vendite nette sono migliorate al 24,6% dal 25,0%. L'azienda ha firmato 93 nuove sedi Onsite nel Q3, portando il totale dall'inizio dell'anno a 302. Le vendite di FMI Technology sono aumentate del 9,3% e hanno rappresentato il 43,0% delle vendite totali. L'impronta digitale di Fastenal è aumentata al 61,1% delle vendite, rispetto al 57,1% nel Q3 2023. Il flusso di cassa operativo dell'azienda è diminuito del 23,5% a 296,9 milioni di dollari, rappresentando il 99,6% del reddito netto.
Fastenal Company (FAST) informó sus ganancias del tercer trimestre de 2024, con ventas netas aumentando un 3.5% a 1,910.2 millones de dólares. El tasa de ventas diarias de la empresa creció un 1.9% en comparación con el tercer trimestre de 2023. Las ganancias netas aumentaron un 0.9% a 298.1 millones de dólares, con las ganancias por acción diluidas manteniéndose sin cambios en $0.52. El margen de ganancia bruta de Fastenal disminuyó al 44.9% desde el 45.9% en el Q3 2023, mientras que los gastos SG&A como porcentaje de las ventas netas mejoraron al 24.6% desde el 25.0%. La empresa firmó 93 nuevas ubicaciones Onsite en el Q3, llevando el total del año a 302. Las ventas de FMI Technology crecieron un 9.3% y representaron el 43.0% de las ventas totales. La huella digital de Fastenal aumentó al 61.1% de las ventas, subiendo desde el 57.1% en el Q3 2023. El flujo de efectivo operativo de la empresa disminuyó un 23.5% a 296.9 millones de dólares, representando el 99.6% de las ganancias netas.
패스너널 회사(Fastenal Company, FAST)는 2024년 3분기 실적을 발표하며 매출이 3.5% 증가하여 19억 1,020만 달러에 달했다고 밝혔다. 회사의 일일 매출 성장률은 1.9%로 2023년 3분기와 비교되었다. 순이익은 0.9% 증가한 2억 9,810만 달러로, 희석 주당순이익은 $0.52로 변동이 없었다. 패스너널의 총 이익률은 2023년 3분기의 45.9%에서 44.9%로 감소했으며, 순매출 대비 SG&A 비용 비율은 25.0%에서 24.6%로 개선되었다. 회사는 3분기 동안 93개의 새로운 현장(Onsite) 위치를 계약하여 연간 총 302개로 증가시켰다. FMI 기술 판매는 9.3% 증가했으며 총 판매의 43.0%를 차지했다. 패스너널의 디지털 발자국은 3분기 57.1%에서 61.1%로 증가했다. 회사의 운영 현금 흐름은 23.5% 감소하여 2억 9,690만 달러에 달하며, 이는 순이익의 99.6%를 나타낸다.
Fastenal Company (FAST) a annoncé ses résultats pour le troisième trimestre 2024, avec des ventes nettes en hausse de 3,5 % à 1 910,2 millions de dollars. Le taux de ventes quotidiennes de l'entreprise a crû de 1,9 % par rapport au troisième trimestre 2023. Le revenu net a augmenté de 0,9 % à 298,1 millions de dollars, avec un bénéfice par action dilué inchangé à 0,52 $. La marge brute de Fastenal a diminué à 44,9 % contre 45,9 % au troisième trimestre 2023, tandis que les dépenses SG&A en pourcentage des ventes nettes se sont améliorées à 24,6 % contre 25,0 %. L'entreprise a signé 93 nouveaux emplacements Onsite au T3, portant le total depuis le début de l'année à 302. Les ventes de FMI Technology ont augmenté de 9,3 % et représentent 43,0 % du chiffre d'affaires total. L'empreinte numérique de Fastenal a augmenté à 61,1 % des ventes, contre 57,1 % au T3 2023. Le flux de trésorerie d'exploitation de l'entreprise a diminué de 23,5 % pour atteindre 296,9 millions de dollars, représentant 99,6 % du revenu net.
Die Fastenal Company (FAST) berichtete über ihre Ergebnisse des dritten Quartals 2024, mit einem Anstieg der Nettoumsätze um 3,5% auf 1.910,2 Millionen Dollar. Die tägliche Verkaufsrate des Unternehmens wuchs um 1,9% im Vergleich zum dritten Quartal 2023. Der Nettogewinn stieg um 0,9% auf 298,1 Millionen Dollar, während der verwässerte Gewinn pro Aktie unverändert bei 0,52 Dollar blieb. Die Bruttogewinnmarge von Fastenal sank von 45,9% im Q3 2023 auf 44,9%, während die SG&A-Ausgaben als Prozentsatz der Nettoumsätze auf 24,6% von 25,0% besser wurden. Das Unternehmen eröffnete im Q3 93 neue Onsite-Standorte, was die Gesamtzahl seit Jahresbeginn auf 302 bringt. Die Verkäufe der FMI-Technologie stiegen um 9,3% und machten 43,0% des Gesamtumsatzes aus. Der digitale Fußabdruck von Fastenal stieg auf 61,1% des Umsatzes, von 57,1% im Q3 2023. Der operative Cashflow des Unternehmens sank um 23,5% auf 296,9 Millionen Dollar, was 99,6% des Nettogewinns entspricht.
- Net sales increased 3.5% to $1,910.2 million in Q3 2024
- Net income rose 0.9% to $298.1 million
- SG&A expenses as a percentage of net sales improved to 24.6% from 25.0%
- Signed 93 new Onsite locations in Q3, with 302 year-to-date signings
- FMI Technology sales grew 9.3% and represented 43.0% of total sales
- Digital Footprint increased to 61.1% of sales, up from 57.1% in Q3 2023
- Gross profit margin decreased to 44.9% from 45.9% in Q3 2023
- Operating cash flow decreased 23.5% to $296.9 million
- Diluted earnings per share remained unchanged at $0.52
- Operating income as a percentage of net sales decreased to 20.3% from 21.0%
Insights
Fastenal's Q3 2024 results show modest growth amid challenging market conditions. Net sales increased 3.5% year-over-year to
Key observations:
- Gross profit margin declined to
44.9% from45.9% due to unfavorable customer/product mix and higher import duties. - SG&A expenses improved to
24.6% of sales from25.0% , reflecting cost control efforts. - Operating margin decreased to
20.3% from21.0% . - Net income increased slightly by
0.9% to$298.1 million . - The company's digital footprint expanded to
61.1% of sales, up from57.1% last year.
While Fastenal is navigating a soft demand environment, particularly in fasteners, its focus on Onsite locations and FMI technology is helping to drive growth. The company's ability to maintain profitability and expand its digital presence positions it well for future growth as market conditions improve.
Fastenal's Q3 results reveal interesting market trends and shifts in customer behavior:
- Divergence between fastener and non-fastener product lines continues, with fasteners declining
4.0% and non-fasteners growing4.7% . - Manufacturing end markets outperform, particularly in key accounts with managed spend.
- National accounts grew
5.6% , while non-national accounts declined4.1% , highlighting the importance of large customer relationships. - Safety supplies sales increased
6.8% , benefiting from growth with warehousing customers. - The reseller market weakened
11.3% , likely due to inventory reduction efforts across industries.
These trends suggest a shift towards larger, more digitally-integrated customers and a focus on safety and efficiency. Fastenal's investments in Onsite locations and FMI technology align well with these market dynamics. The company's ability to adapt to changing customer needs and industry trends will be important for maintaining its competitive edge in the industrial supply sector.
PERFORMANCE SUMMARY
|
Nine-month Period |
|
Three-month Period |
||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Net sales |
$ |
5,721.5 |
|
|
5,588.1 |
|
|
2.4 |
% |
|
$ |
1,910.2 |
|
|
1,845.9 |
|
|
3.5 |
% |
Business days |
|
192 |
|
|
191 |
|
|
|
|
|
64 |
|
|
63 |
|
|
|
||
Daily sales |
$ |
29.8 |
|
|
29.3 |
|
|
1.9 |
% |
|
$ |
29.8 |
|
|
29.3 |
|
|
1.9 |
% |
Gross profit |
$ |
2,583.7 |
|
|
2,555.1 |
|
|
1.1 |
% |
|
$ |
858.6 |
|
|
847.6 |
|
|
1.3 |
% |
% of net sales |
|
45.2 |
% |
|
45.7 |
% |
|
|
|
|
44.9 |
% |
|
45.9 |
% |
|
|
||
Selling, general, and administrative expenses |
$ |
1,418.5 |
|
|
1,380.2 |
|
|
2.8 |
% |
|
$ |
470.5 |
|
|
460.9 |
|
|
2.1 |
% |
% of net sales |
|
24.8 |
% |
|
24.7 |
% |
|
|
|
|
24.6 |
% |
|
25.0 |
% |
|
|
||
Operating income |
$ |
1,165.2 |
|
|
1,174.9 |
|
|
-0.8 |
% |
|
$ |
388.1 |
|
|
386.7 |
|
|
0.4 |
% |
% of net sales |
|
20.4 |
% |
|
21.0 |
% |
|
|
|
|
20.3 |
% |
|
21.0 |
% |
|
|
||
Income before income taxes |
$ |
1,163.8 |
|
|
1,167.8 |
|
|
-0.3 |
% |
|
$ |
387.6 |
|
|
385.4 |
|
|
0.6 |
% |
% of net sales |
|
20.3 |
% |
|
20.9 |
% |
|
|
|
|
20.3 |
% |
|
20.9 |
% |
|
|
||
Net income |
$ |
888.5 |
|
|
888.6 |
|
|
0.0 |
% |
|
$ |
298.1 |
|
|
295.5 |
|
|
0.9 |
% |
Diluted net income per share |
$ |
1.55 |
|
|
1.55 |
|
|
-0.2 |
% |
|
$ |
0.52 |
|
|
0.52 |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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
An increase in unit sales in the third quarter of 2024 was 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 third quarter of 2024 was not material, in contrast to the third quarter of 2023, when the impact of product pricing was modestly positive. The pricing environment was stable throughout the third 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 third quarter of 2024, which we believe primarily relates to two 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, we continued to experience relatively faster growth with warehousing customers due to market share gains and product mix, which primarily benefits our safety product line. This impact is beginning to moderate as we come up against more difficult comparison periods. 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 |
- |
|
|
|
|
MRO fasteners |
- |
- |
|
|
|
Total fasteners |
- |
- |
|
|
|
Safety supplies |
|
|
|
|
|
Other product lines |
|
|
|
|
|
Total non-fasteners |
|
|
|
|
|
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 are outperforming 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. Other end market sales are improving primarily as a result of strength with warehousing customers due to market share gains and product mix. We believe the weakness in our reseller end market reflects efforts in many industries to reduce channel inventories. 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 |
|
|
|
|
|
Other manufacturing |
|
|
|
|
|
Total manufacturing |
|
|
|
|
|
Non-residential construction |
- |
- |
|
|
|
Reseller |
- |
- |
|
|
|
Other end markets |
|
|
|
|
|
Total non-manufacturing |
- |
- |
|
|
|
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 |
|
|
|
|
|
Non-national accounts |
- |
- |
|
|
|
Growth Drivers
-
We signed 93 new Onsite locations (defined as dedicated sales and service provided from within, or in proximity to, the customer's facility) in the third quarter of 2024, resulting in 302 year-to-date signings of new Onsite locations. We had 1,986 active sites on September 30, 2024, which represented an increase of
11.7% from September 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 third quarter of 2024 over the third 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, although the lower half of this range seems most likely given the pace of signings through the third quarter of 2024.
- 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.
|
Nine-month Period |
|
Three-month Period |
||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Weighted FASTBin/FASTVend signings (MEUs) |
|
21,194 |
|
|
18,664 |
|
|
13.6 |
% |
|
|
7,281 |
|
|
5,969 |
|
|
22.0 |
% |
Signings per day |
|
110 |
|
|
98 |
|
|
|
|
|
114 |
|
|
95 |
|
|
|
||
Weighted FASTBin/FASTVend installations (MEUs; end of period) |
|
|
|
|
|
|
|
123,193 |
|
|
110,191 |
|
|
11.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
FASTStock sales |
$ |
728.9 |
|
|
708.6 |
|
|
2.9 |
% |
|
$ |
244.7 |
|
|
234.2 |
|
|
4.5 |
% |
% of sales |
|
12.6 |
% |
|
12.5 |
% |
|
|
|
|
12.7 |
% |
|
12.5 |
% |
|
|
||
FASTBin/FASTVend sales |
$ |
1,710.7 |
|
|
1,550.6 |
|
|
10.3 |
% |
|
$ |
586.8 |
|
|
526.2 |
|
|
11.5 |
% |
% of sales |
|
29.5 |
% |
|
27.4 |
% |
|
|
|
|
30.3 |
% |
|
28.2 |
% |
|
|
||
FMI sales |
$ |
2,439.6 |
|
|
2,259.2 |
|
|
8.0 |
% |
|
$ |
831.5 |
|
|
760.4 |
|
|
9.3 |
% |
FMI daily sales |
$ |
12.7 |
|
|
11.8 |
|
|
7.4 |
% |
|
$ |
13.0 |
|
|
12.1 |
|
|
7.6 |
% |
% of sales |
|
42.1 |
% |
|
39.9 |
% |
|
|
|
|
43.0 |
% |
|
40.7 |
% |
|
|
||
-
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
25.6% in the third quarter of 2024 and represented30.1% of our total sales in the period. In the third quarter of 2024, daily sales through eProcurement and eCommerce grew33.2% and6.6% , 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 third 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 net interest expense of
Income Taxes
We recorded income tax expense of
Net Income
Our net income during the third quarter of 2024 was
BALANCE SHEET AND CASH FLOW
Net cash provided by operating activities was
Net cash provided by operating activities was
The dollar and percentage change in accounts receivable, net, inventories, and accounts payable as of September 30, 2024 when compared to September 30, 2023 were as follows:
|
|
September 30 |
Twelve-month Dollar Change |
Twelve-month
|
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
Accounts receivable, net |
|
|
|
1,171.0 |
|
|
|
|
Inventories |
|
1,559.5 |
|
1,513.8 |
|
45.7 |
|
|
Trade working capital |
|
|
|
2,684.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
275.1 |
|
|
|
|
Trade working capital, net |
|
|
|
2,409.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales in last three months |
|
|
|
1,845.9 |
|
|
|
|
Note - Amounts may not foot due to rounding difference.
The increase in our accounts receivable balance in the third 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 increase in our inventory balance in the third quarter of 2024 was primarily attributable to two factors. First, our inventory increased as a result of growth in sales to our customers. Second, we began to add stock intended to improve service to our in-market locations and generate efficiencies in our hubs. We expect to add
The increase in our accounts payable balance in the third quarter of 2024 was primarily attributable to an increase in our product purchases to support the addition of inventory intended to improve service to our in-market locations and generate efficiencies in our hubs.
During the third quarter of 2024, our investment in property and equipment, net of proceeds from sales, was
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
During the third 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: |
|
|
Change Since: |
|
Q3 2024 |
|
Q2 2024 |
Q2 2024 |
|
Q4 2023 |
Q4 2023 |
|
Q3 2023 |
Q3 2023 |
Selling personnel - absolute employee headcount |
16,666 |
|
16,774 |
-0.6 % |
|
16,512 |
|
|
16,261 |
2.5 % |
Selling personnel - FTE employee headcount |
15,080 |
|
15,386 |
-2.0 % |
|
15,070 |
|
|
14,750 |
2.2 % |
Total personnel - absolute employee headcount |
23,518 |
|
23,629 |
-0.5 % |
|
23,201 |
|
|
22,862 |
2.9 % |
Total personnel - FTE employee headcount |
20,894 |
|
21,249 |
-1.7 % |
|
20,721 |
|
|
20,284 |
3.0 % |
|
|
|
|
|
|
|
|
|
|
|
Number of branch locations |
1,597 |
|
1,599 |
-0.1 % |
|
1,597 |
—% |
|
1,615 |
-1.1 % |
Number of active Onsite locations |
1,986 |
|
1,934 |
2.7 % |
|
1,822 |
|
|
1,778 |
11.7 % |
Number of in-market locations |
3,583 |
|
3,533 |
1.4 % |
|
3,419 |
|
|
3,393 |
5.6 % |
Weighted FMI devices (MEU installed count) |
123,193 |
|
119,306 |
3.3 % |
|
113,138 |
|
|
110,191 |
11.8 % |
During the last twelve months, we increased our total FTE employee headcount by 610. This reflects an increase in our total FTE selling and sales support personnel of 330, which is oriented heavily toward supporting expansion of our Onsite locations. We had an increase in our distribution and transportation FTE personnel of 167 to support increased product throughput at our distribution facilities. We had an increase in our remaining FTE personnel of 113 which relates primarily to personnel investments in 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.
|
Nine-month Period |
|
Three-month Period |
||
|
2024 |
2023 |
|
2024 |
2023 |
Branch openings |
7 |
8 |
|
4 |
3 |
Branch closures, net of conversions |
(7) |
(76) |
|
(6) |
(23) |
|
|
|
|
|
|
Onsite activations |
268 |
252 |
|
93 |
79 |
Onsite closures, net of conversions |
(104) |
(97) |
|
(41) |
(29) |
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 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, 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) |
|||||||
|
|
|
|
|
|||
|
|
(Unaudited) |
|
|
|||
Assets |
|
September 30,
|
|
December 31,
|
|||
Current assets: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
292.2 |
|
|
221.3 |
|
Trade accounts receivable, net of allowance for credit losses of |
|
|
1,200.6 |
|
|
1,087.6 |
|
Inventories |
|
|
1,559.5 |
|
|
1,522.7 |
|
Prepaid income taxes |
|
|
16.8 |
|
|
17.5 |
|
Other current assets |
|
|
191.4 |
|
|
171.8 |
|
Total current assets |
|
|
3,260.5 |
|
|
3,020.9 |
|
|
|
|
|
|
|||
Property and equipment, net |
|
|
1,044.2 |
|
|
1,011.1 |
|
Operating lease right-of-use assets |
|
|
280.7 |
|
|
270.2 |
|
Other assets |
|
|
153.0 |
|
|
160.7 |
|
|
|
|
|
|
|||
Total assets |
|
$ |
4,738.4 |
|
|
4,462.9 |
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|||
Current portion of debt |
|
$ |
115.0 |
|
|
60.0 |
|
Accounts payable |
|
|
301.7 |
|
|
264.1 |
|
Accrued expenses |
|
|
225.7 |
|
|
241.0 |
|
Current portion of operating lease liabilities |
|
|
99.2 |
|
|
96.2 |
|
Total current liabilities |
|
|
741.6 |
|
|
661.3 |
|
|
|
|
|
|
|||
Long-term debt |
|
|
125.0 |
|
|
200.0 |
|
Operating lease liabilities |
|
|
187.6 |
|
|
178.8 |
|
Deferred income taxes |
|
|
75.8 |
|
|
73.0 |
|
Other long-term liabilities |
|
|
11.0 |
|
|
1.0 |
|
|
|
|
|
|
|||
Stockholders' equity: |
|
|
|
|
|||
Preferred stock: |
|
|
— |
|
|
— |
|
Common stock: |
|
|
5.7 |
|
|
5.7 |
|
Additional paid-in capital |
|
|
73.3 |
|
|
41.0 |
|
Retained earnings |
|
|
3,575.5 |
|
|
3,356.9 |
|
Accumulated other comprehensive loss |
|
|
(57.1 |
) |
|
(54.8 |
) |
Total stockholders' equity |
|
|
3,597.4 |
|
|
3,348.8 |
|
Total liabilities and stockholders' equity |
|
$ |
4,738.4 |
|
|
4,462.9 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
|||||||||||||
Condensed Consolidated Statements of Income |
|||||||||||||
(Amounts in millions except income per share) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
(Unaudited) |
|
(Unaudited) |
||||||||||
|
Nine Months Ended September 30, |
|
Three Months Ended September 30, |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net sales |
$ |
5,721.5 |
|
|
5,588.1 |
|
|
$ |
1,910.2 |
|
|
1,845.9 |
|
Cost of sales |
|
3,137.8 |
|
|
3,033.0 |
|
|
|
1,051.6 |
|
|
998.3 |
|
Gross profit |
|
2,583.7 |
|
|
2,555.1 |
|
|
|
858.6 |
|
|
847.6 |
|
|
|
|
|
|
|
|
|
||||||
Selling, general, and administrative expenses |
|
1,418.5 |
|
|
1,380.2 |
|
|
|
470.5 |
|
|
460.9 |
|
Operating income |
|
1,165.2 |
|
|
1,174.9 |
|
|
|
388.1 |
|
|
386.7 |
|
|
|
|
|
|
|
|
|
||||||
Interest income |
|
4.2 |
|
|
1.8 |
|
|
|
1.3 |
|
|
0.8 |
|
Interest expense |
|
(5.6 |
) |
|
(8.9 |
) |
|
|
(1.8 |
) |
|
(2.1 |
) |
Income before income taxes |
|
1,163.8 |
|
|
1,167.8 |
|
|
|
387.6 |
|
|
385.4 |
|
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
275.3 |
|
|
279.2 |
|
|
|
89.5 |
|
|
89.9 |
|
Net income |
$ |
888.5 |
|
|
888.6 |
|
|
$ |
298.1 |
|
|
295.5 |
|
|
|
|
|
|
|
|
|
||||||
Basic net income per share |
$ |
1.55 |
|
|
1.56 |
|
|
$ |
0.52 |
|
|
0.52 |
|
Diluted net income per share |
$ |
1.55 |
|
|
1.55 |
|
|
$ |
0.52 |
|
|
0.52 |
|
|
|
|
|
|
|
|
|
||||||
Basic weighted average shares outstanding |
|
572.6 |
|
|
571.1 |
|
|
|
572.7 |
|
|
571.4 |
|
Diluted weighted average shares outstanding |
|
574.1 |
|
|
572.9 |
|
|
|
574.2 |
|
|
573.1 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
|||||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||||
(Amounts in millions) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
(Unaudited) |
|
(Unaudited) |
||||||||||
|
Nine Months Ended September 30, |
|
Three Months Ended September 30, |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||
Net income |
$ |
888.5 |
|
|
888.6 |
|
|
$ |
298.1 |
|
|
295.5 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||
Depreciation of property and equipment |
|
123.0 |
|
|
126.1 |
|
|
|
41.8 |
|
|
42.1 |
|
Gain on sale of property and equipment |
|
(3.0 |
) |
|
(2.7 |
) |
|
|
(1.3 |
) |
|
(1.5 |
) |
Bad debt (recoveries) expense |
|
(0.2 |
) |
|
1.4 |
|
|
|
0.4 |
|
|
1.2 |
|
Deferred income taxes |
|
2.8 |
|
|
(4.4 |
) |
|
|
1.6 |
|
|
(5.0 |
) |
Stock-based compensation |
|
6.0 |
|
|
5.6 |
|
|
|
2.0 |
|
|
1.8 |
|
Amortization of intangible assets |
|
8.0 |
|
|
8.0 |
|
|
|
2.6 |
|
|
2.6 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||
Trade accounts receivable |
|
(113.5 |
) |
|
(159.5 |
) |
|
|
7.4 |
|
|
(4.5 |
) |
Inventories |
|
(36.2 |
) |
|
191.7 |
|
|
|
(48.4 |
) |
|
46.1 |
|
Other current assets |
|
(19.6 |
) |
|
15.4 |
|
|
|
(26.1 |
) |
|
(8.3 |
) |
Accounts payable |
|
40.3 |
|
|
21.7 |
|
|
|
9.6 |
|
|
11.8 |
|
Accrued expenses |
|
(14.8 |
) |
|
(4.7 |
) |
|
|
7.7 |
|
|
6.6 |
|
Income taxes |
|
0.7 |
|
|
(7.2 |
) |
|
|
(0.3 |
) |
|
(0.6 |
) |
Other |
|
8.5 |
|
|
(1.3 |
) |
|
|
1.8 |
|
|
0.3 |
|
Net cash provided by operating activities |
|
890.5 |
|
|
1,078.7 |
|
|
|
296.9 |
|
|
388.1 |
|
|
|
|
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||
Purchases of property and equipment |
|
(166.3 |
) |
|
(136.5 |
) |
|
|
(59.4 |
) |
|
(46.9 |
) |
Proceeds from sale of property and equipment |
|
9.6 |
|
|
8.8 |
|
|
|
3.6 |
|
|
4.0 |
|
Other |
|
(0.3 |
) |
|
(0.5 |
) |
|
|
(0.1 |
) |
|
(0.1 |
) |
Net cash used in investing activities |
|
(157.0 |
) |
|
(128.2 |
) |
|
|
(55.9 |
) |
|
(43.0 |
) |
|
|
|
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||
Proceeds from debt obligations |
|
590.0 |
|
|
790.0 |
|
|
|
205.0 |
|
|
155.0 |
|
Payments against debt obligations |
|
(610.0 |
) |
|
(1,085.0 |
) |
|
|
(200.0 |
) |
|
(245.0 |
) |
Proceeds from exercise of stock options |
|
26.3 |
|
|
15.4 |
|
|
|
7.7 |
|
|
2.9 |
|
Cash dividends paid |
|
(669.9 |
) |
|
(599.5 |
) |
|
|
(223.4 |
) |
|
(199.8 |
) |
Net cash used in financing activities |
|
(663.6 |
) |
|
(879.1 |
) |
|
|
(210.7 |
) |
|
(286.9 |
) |
|
|
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents |
|
1.0 |
|
|
(4.0 |
) |
|
|
6.4 |
|
|
(4.3 |
) |
|
|
|
|
|
|
|
|
||||||
Net increase in cash and cash equivalents |
|
70.9 |
|
|
67.4 |
|
|
|
36.7 |
|
|
53.9 |
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of period |
|
221.3 |
|
|
230.1 |
|
|
|
255.5 |
|
|
243.6 |
|
Cash and cash equivalents at end of period |
$ |
292.2 |
|
|
297.5 |
|
|
$ |
292.2 |
|
|
297.5 |
|
|
|
|
|
|
|
|
|
||||||
Supplemental information: |
|
|
|
|
|
|
|
||||||
Cash paid for interest |
$ |
6.0 |
|
|
10.3 |
|
|
$ |
1.8 |
|
|
2.1 |
|
Net cash paid for income taxes |
$ |
269.4 |
|
|
288.0 |
|
|
$ |
87.6 |
|
|
94.3 |
|
Leased assets obtained in exchange for new operating lease liabilities |
$ |
75.5 |
|
|
96.3 |
|
|
$ |
26.1 |
|
|
32.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241010220641/en/
Taylor Ranta Oborski
Accounting Manager
507.313.7959
Source: Fastenal Company
FAQ
What was Fastenal's (FAST) net sales growth in Q3 2024?
How many new Onsite locations did Fastenal (FAST) sign in Q3 2024?
What was Fastenal's (FAST) Digital Footprint percentage in Q3 2024?
How did Fastenal's (FAST) gross profit margin change in Q3 2024?
What was Fastenal's (FAST) net income in Q3 2024?
