Fastenal Company Reports 2024 Second Quarter Earnings
PERFORMANCE SUMMARY
|
Six-month Period |
|
Three-month Period |
||||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||
Net sales |
$ |
3,811.3 |
|
|
3,742.2 |
|
|
1.8 |
% |
|
$ |
1,916.2 |
|
|
1,883.1 |
|
|
1.8 |
% |
Business days |
|
128 |
|
|
128 |
|
|
|
|
|
64 |
|
|
64 |
|
|
|
||
Daily sales |
$ |
29.8 |
|
|
29.2 |
|
|
1.8 |
% |
|
$ |
29.9 |
|
|
29.4 |
|
|
1.8 |
% |
Gross profit |
$ |
1,725.1 |
|
|
1,707.5 |
|
|
1.0 |
% |
|
$ |
863.5 |
|
|
857.5 |
|
|
0.7 |
% |
% of net sales |
|
45.3 |
% |
|
45.6 |
% |
|
|
|
|
45.1 |
% |
|
45.5 |
% |
|
|
||
Selling, general, and administrative expenses |
$ |
948.0 |
|
|
919.4 |
|
|
3.1 |
% |
|
$ |
476.6 |
|
|
462.6 |
|
|
3.0 |
% |
% of net sales |
|
24.9 |
% |
|
24.6 |
% |
|
|
|
|
24.9 |
% |
|
24.6 |
% |
|
|
||
Operating income |
$ |
777.1 |
|
|
788.1 |
|
|
-1.4 |
% |
|
$ |
386.9 |
|
|
394.9 |
|
|
-2.0 |
% |
% of net sales |
|
20.4 |
% |
|
21.1 |
% |
|
|
|
|
20.2 |
% |
|
21.0 |
% |
|
|
||
Income before income taxes |
$ |
776.2 |
|
|
782.3 |
|
|
-0.8 |
% |
|
$ |
386.4 |
|
|
392.6 |
|
|
-1.6 |
% |
% of net sales |
|
20.4 |
% |
|
20.9 |
% |
|
|
|
|
20.2 |
% |
|
20.9 |
% |
|
|
||
Net income |
$ |
590.4 |
|
|
593.1 |
|
|
-0.5 |
% |
|
$ |
292.7 |
|
|
298.0 |
|
|
-1.8 |
% |
Diluted net income per share |
$ |
1.03 |
|
|
1.04 |
|
|
-0.7 |
% |
|
$ |
0.51 |
|
|
0.52 |
|
|
-2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Note – Daily sales are defined as the total net sales for the period divided by the number of business days (in |
QUARTERLY RESULTS OF OPERATIONS
Sales
Net sales increased
We experienced higher unit sales in the second quarter of 2024 primarily due to growth with larger customers and
From a product standpoint, we have three categories: fasteners [including fasteners used in original equipment manufacturing (OEM) and maintenance, repair, and operations (MRO)], safety supplies, and other product lines, the latter of which includes eight smaller product categories, such as tools, janitorial supplies, and cutting tools. We continued to experience a divergence in the performance of our fastener versus our non-fastener product lines in the second quarter of 2024, which we believe relates to three factors. First, fasteners are more heavily oriented toward production of final goods than maintenance, which results in greater susceptibility to periods of weaker industrial production. Second, pricing for fasteners has decelerated at a faster pace than non-fastener products. Third, we continued to experience relatively faster growth with warehousing customers due to market share gains, product mix, and easier comparisons. This factor primarily benefited our safety product line. The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:
|
DSR Change Three-month Period |
|
% of Sales Three-month Period |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
OEM fasteners |
-2.3 |
% |
4.1 |
% |
|
19.5 |
% |
20.4 |
% |
MRO fasteners |
-4.3 |
% |
-6.2 |
% |
|
11.5 |
% |
12.2 |
% |
Total fasteners |
-3.0 |
% |
0.0 |
% |
|
31.0 |
% |
32.6 |
% |
Safety supplies |
7.1 |
% |
7.9 |
% |
|
21.8 |
% |
20.7 |
% |
Other product lines |
3.0 |
% |
9.8 |
% |
|
47.2 |
% |
46.7 |
% |
Total non-fasteners |
4.2 |
% |
9.2 |
% |
|
69.0 |
% |
67.4 |
% |
From an end market standpoint, we have five categories: heavy manufacturing, other manufacturing, non-residential construction, reseller, and other, the latter of which includes government/education and transportation/warehousing. We continued to experience a modest divergence in the performance of our manufacturing end market versus our non-manufacturing end markets in the second quarter of 2024. This primarily reflects the relative strength we are experiencing with key account customers with significant managed spend where our service model and technology is particularly impactful. This disproportionately benefits manufacturing customers. The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:
|
DSR Change Three-month Period |
|
% of Sales Three-month Period |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Heavy manufacturing |
1.8 |
% |
13.0 |
% |
|
43.3 |
% |
43.4 |
% |
Other manufacturing |
4.0 |
% |
7.0 |
% |
|
32.2 |
% |
31.4 |
% |
Total manufacturing |
2.7 |
% |
10.4 |
% |
|
75.5 |
% |
74.8 |
% |
Non-residential construction |
-5.5 |
% |
-8.8 |
% |
|
8.5 |
% |
9.2 |
% |
Reseller |
-6.4 |
% |
-8.7 |
% |
|
5.3 |
% |
5.7 |
% |
Other end markets |
6.0 |
% |
0.2 |
% |
|
10.7 |
% |
10.3 |
% |
Total non-manufacturing |
-1.0 |
% |
-5.3 |
% |
|
24.5 |
% |
25.2 |
% |
We report our customers in two categories: national accounts, which are customers with significant revenue potential and a national, multi-site contract, and non-national accounts, which include large regional customers, small local customers, and government customers. We continued to experience a significant divergence in the performance of our national account customers versus our non-national account customers, which relates to the relative growth of our sales through
|
DSR Change Three-month Period |
|
% of Sales Three-month Period |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
National accounts |
5.8 |
% |
10.3 |
% |
|
62.4 |
% |
59.3 |
% |
Non-national accounts |
-4.3 |
% |
0.2 |
% |
|
37.6 |
% |
40.7 |
% |
Growth Drivers
-
We signed 107 new
Onsite locations (defined as dedicated sales and service provided from within, or in proximity to, the customer's facility) in the second quarter of 2024, resulting in 209 year-to-date signings of newOnsite locations. We had 1,934 active sites onJune 30, 2024 , which represented an increase of 11.9% fromJune 30, 2023 . Daily sales through ourOnsite locations, excluding sales transferred from branches to new Onsites, grew at a low single-digit rate in the second quarter of 2024 over the second quarter of 2023. This growth is due to contributions from Onsites activated and implemented in 2024 and 2023, which more than offset the impact of closures and a decline in revenues from Onsites activated prior to 2023. Our goal forOnsite signings in 2024 remains between 375 to 400. -
FMI Technology is comprised of our FASTStock℠ (scanned stocking locations), FASTBin® (infrared, RFID, and scaled bins), and FASTVend® (vending devices) offering. FASTStock's fulfillment processing technology is not embedded, is relatively less expensive and highly flexible in application, and delivered using our proprietary mobility technology. FASTBin and FASTVend incorporate highly efficient and powerful embedded data tracking and fulfillment processing technologies. The first statistic is a weighted FMI® measure, which combines the signings and installations of FASTBin and FASTVend in a standardized machine equivalent unit (MEU) based on the expected output of each type of device. We do not include FASTStock in this measurement because scanned stocking locations can take many forms, such as bins, shelves, cabinets, pallets, etc., that cannot be converted into a standardized MEU. The second statistic is sales through FMI Technology, which combines the sales through FASTStock, FASTBin, and FASTVend. A portion of the growth in sales experienced by FMI, particularly FASTStock and FASTBin, reflects the migration of products from less efficient non-digital stocking locations to more efficient, digital stocking locations.
Our goal for weighted FASTBin and FASTVend device signings in 2024 remains between 26,000 to 28,000 MEUs.
The table below summarizes the signings and installations of, and sales through, our FMI devices.
|
Six-month Period |
|
Three-month Period |
|||||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||
Weighted FASTBin/FASTVend signings (MEUs) |
|
13,914 |
|
|
12,695 |
|
|
9.6 |
% |
|
|
7,188 |
|
|
6,794 |
|
|
5.8 |
% |
|
Signings per day |
|
109 |
|
|
99 |
|
|
|
|
|
112 |
|
|
106 |
|
|
|
|||
Weighted FASTBin/FASTVend installations (MEUs; end of period) |
|
|
|
|
|
|
|
119,306 |
|
|
107,115 |
|
|
11.4 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
FASTStock sales |
$ |
484.2 |
|
|
474.4 |
|
|
2.1 |
% |
|
$ |
244.4 |
|
|
237.7 |
|
|
2.8 |
% |
|
% of sales |
|
12.5 |
% |
|
12.5 |
% |
|
|
|
|
12.6 |
% |
|
12.5 |
% |
|
|
|||
FASTBin/FASTVend sales |
$ |
1,123.9 |
|
|
1,024.3 |
|
|
9.7 |
% |
|
$ |
567.0 |
|
|
520.6 |
|
|
8.9 |
% |
|
% of sales |
|
29.1 |
% |
|
27.0 |
% |
|
|
|
|
29.2 |
% |
|
27.3 |
% |
|
|
|||
FMI sales |
$ |
1,608.1 |
|
|
1,498.7 |
|
|
7.3 |
% |
|
$ |
811.4 |
|
|
758.3 |
|
|
7.0 |
% |
|
FMI daily sales |
$ |
12.6 |
|
|
11.7 |
|
|
7.3 |
% |
|
$ |
12.7 |
|
|
11.8 |
|
|
7.0 |
% |
|
% of sales |
|
41.7 |
% |
|
39.6 |
% |
|
|
|
|
41.8 |
% |
|
39.8 |
% |
|
|
- Our eBusiness includes eProcurement activities [e.g., integrated transactions, including electronic data interchange (EDI)] and eCommerce (transactional website sales). Growth of our eBusiness reflects both new sales that enhance our growth rate and a shift in existing sales from non-digital to digital processes that improves efficiency. Daily sales through eBusiness grew 25.5% in the second quarter of 2024 and represented 28.7% of our total sales in the period. In the second quarter of 2024, daily sales through eProcurement and eCommerce grew 30.9% and 11.6%, respectively.
Our digital products and services are comprised of sales through FMI (FASTStock, FASTBin, and FASTVend) plus that proportion of our eBusiness sales that do not represent billings of FMI services (collectively, our Digital Footprint). We believe the data that is created through our digital capabilities enhances product visibility, traceability, and control that reduces risk in operations and creates ordering and fulfillment efficiencies for both us and our customers. As a result, we believe our opportunity to grow our business will be enhanced through the continued development and expansion of our digital capabilities.
Our Digital Footprint in the second quarter of 2024 represented 59.4% of our sales, an increase from 55.3% of sales in the second quarter of 2023.
Gross Profit
Our gross profit, as a percentage of net sales, decreased to 45.1% in the second quarter of 2024 from 45.5% in the second quarter of 2023. Our gross profit percentage was primarily impacted by two factors. First, we experienced unfavorable customer and product mix. This reflects relatively stronger growth from large customers, including
SG&A Expenses
Our SG&A expenses, as a percentage of net sales, were 24.9% in the second quarter of 2024 versus 24.6% in the second quarter of 2023. Efforts to control growth in operating expenses in the second quarter of 2024 produced a modest 3.0% expansion of total SG&A in the period. Notwithstanding this, growth in net sales was below growth in SG&A, resulting in our deleveraging of costs in the second quarter of 2024.
Employee-related expenses, which represent 70% to 75% of total SG&A expenses, increased 2.4% in the second quarter of 2024 compared to the second quarter of 2023. We experienced an increase in employee base pay due to higher average FTE and higher average wages during the period. This was only partly offset by lower bonus and commission payments reflecting slower sales and profit growth versus the second quarter of 2023.
Occupancy-related expenses, which represent 15% to 20% of total SG&A expenses, increased 0.1% in the second quarter of 2024 compared to the second quarter of 2023. We had moderate increases in branch costs related to general inflation, as well as non-branch expenses from incremental depreciation and other costs associated with hub investments and upgrades. This was mostly offset by lower FMI expense where the roll-off of depreciation on a large number of vending devices that had reached the end of their depreciable lives in the second quarter of 2023 more than offset higher depreciation resulting from growth in bins.
Combined, all other SG&A expenses, which represent 10% to 15% of total SG&A expenses, increased 10.1% in the second quarter of 2024 compared to the second quarter of 2023. This reflects primarily three items. First, we had higher lease costs in our selling-related vehicle fleet due to an increase in the mix of larger truck types and higher prices on newer vehicles. Second, as we had disclosed in our
Operating Income
Our operating income, as a percentage of net sales, decreased to 20.2% in the second quarter of 2024 from 21.0% in the second quarter of 2023.
Net Interest
We had net interest expense of
Income Taxes
We recorded income tax expense of
Net Income
Our net income during the second 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
|
|
Twelve-month Dollar Change |
Twelve-month Percentage Change |
||||||
|
2024 |
2023 |
2024 |
2024 |
|||||
Accounts receivable, net |
$ |
1,204.8 |
1,171.6 |
|
$ |
33.2 |
|
2.8 |
% |
Inventories |
|
1,504.6 |
1,565.4 |
|
|
(60.8 |
) |
-3.9 |
% |
Trade working capital |
$ |
2,709.4 |
2,737.0 |
|
$ |
(27.6 |
) |
-1.0 |
% |
|
|
|
|
|
|
||||
Accounts payable |
$ |
292.6 |
262.0 |
|
$ |
30.6 |
|
11.7 |
% |
Trade working capital, net |
$ |
2,416.8 |
2,475.0 |
|
$ |
(58.2 |
) |
-2.4 |
% |
|
|
|
|
|
|
||||
Net sales in last three months |
$ |
1,916.2 |
1,883.1 |
|
$ |
33.1 |
|
1.8 |
% |
Note - Amounts may not foot due to rounding difference.
The increase in our accounts receivable balance in the second quarter of 2024 was primarily attributable to two factors. First, our receivables increased as a result of growth in sales to our customers. Second, we continue to experience a shift in our mix due to relatively stronger growth from national account customers, which tend to carry longer payment terms than our non-national account customers.
The decrease in our inventory balance in the second quarter of 2024 reflects three factors. First, customers are consuming less inventory as they adjust production to address soft demand. Second, we have made progress over the last twelve months to reduce inventory following the normalization of the supply chain after the disruptions experienced in 2022. We responded to that event by deepening inventory to support customer growth, and the process of rightsizing our stock can be protracted given the quantity of imported product we source. Third, we have also experienced modest deflation in our inventory.
The increase in our accounts payable balance in the second quarter of 2024 was primarily attributable to our product purchases increasing to support the growth in our business and to reflect a normalization of purchasing activity versus the year ago period when purchasing was subdued by efforts to rightsize inventory.
During the second quarter of 2024, our investment in property and equipment, net of proceeds from sales, was
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 second 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
|
|
|
|
Change Since: |
|
|
Change Since: |
|
|
Change Since: |
|||
|
Q2 2024 |
|
Q1 2024 |
Q1 2024 |
|
Q4 2023 |
Q4 2023 |
|
Q2 2023 |
Q2 2023 |
|||
Selling personnel - absolute employee headcount |
16,774 |
|
16,764 |
0.1 |
% |
|
16,512 |
1.6 |
% |
|
16,302 |
2.9 |
% |
Selling personnel - FTE employee headcount |
15,386 |
|
15,102 |
1.9 |
% |
|
15,070 |
2.1 |
% |
|
14,993 |
2.6 |
% |
Total personnel - absolute employee headcount |
23,629 |
|
23,695 |
-0.3 |
% |
|
23,201 |
1.8 |
% |
|
22,913 |
3.1 |
% |
Total personnel - FTE employee headcount |
21,249 |
|
20,935 |
1.5 |
% |
|
20,721 |
2.5 |
% |
|
20,631 |
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||
Number of branch locations |
1,599 |
|
1,592 |
0.4 |
% |
|
1,597 |
0.1 |
% |
|
1,635 |
-2.2 |
% |
Number of active |
1,934 |
|
1,872 |
3.3 |
% |
|
1,822 |
6.1 |
% |
|
1,728 |
11.9 |
% |
Number of in-market locations |
3,533 |
|
3,464 |
2.0 |
% |
|
3,419 |
3.3 |
% |
|
3,363 |
5.1 |
% |
Weighted FMI devices (MEU installed count) |
119,306 |
|
115,653 |
3.2 |
% |
|
113,138 |
5.5 |
% |
|
107,115 |
11.4 |
% |
During the last twelve months, we increased our total FTE employee headcount by 618. This reflects an increase in our total FTE selling and sales support personnel of 393, which is oriented heavily toward supporting expansion of our
The table below summarizes the number of branches opened and closed, net of conversions, as well as the number of Onsites activated and closed, net of conversions during the periods presented.
|
Six-month Period |
|
Three-month Period |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Branch openings |
3 |
|
5 |
|
|
3 |
|
3 |
|
Branch closures, net of conversions |
(1 |
) |
(53 |
) |
|
4 |
|
(28 |
) |
|
|
|
|
|
|
||||
|
175 |
|
173 |
|
|
96 |
|
89 |
|
|
(63 |
) |
(68 |
) |
|
(34 |
) |
(35 |
) |
Our in-market network forms the foundation of our business strategy. In recent years, we have seen a gradual increase in our in-market locations. This has reflected significant growth in Onsites and, to a lesser degree, international branches, which has more than overcome a meaningful decline in our traditional branch network from a strategic rationalization that aligned our physical footprint with changes in our business strategies. Branch closures may occur in the future to reflect normal churn in our business, but the strategic rationalization has concluded. As a result, we expect to see an increase in the rate of in-market location growth as we continue to open Onsites while our traditional branch network remains stable or grows moderately to sustain and improve our North American network, to continue our global expansion beyond
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
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
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
FASTENAL COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Amounts in millions except share information) |
|||||||
|
|
|
|
|
|||
|
|
(Unaudited) |
|
|
|||
Assets |
|
|
|
|
|||
Current assets: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
255.5 |
|
|
221.3 |
|
Trade accounts receivable, net of allowance for credit losses of |
|
|
1,204.8 |
|
|
1,087.6 |
|
Inventories |
|
|
1,504.6 |
|
|
1,522.7 |
|
Prepaid income taxes |
|
|
16.5 |
|
|
17.5 |
|
Other current assets |
|
|
165.3 |
|
|
171.8 |
|
Total current assets |
|
|
3,146.7 |
|
|
3,020.9 |
|
|
|
|
|
|
|||
Property and equipment, net |
|
|
1,025.8 |
|
|
1,011.1 |
|
Operating lease right-of-use assets |
|
|
275.5 |
|
|
270.2 |
|
Other assets |
|
|
155.5 |
|
|
160.7 |
|
|
|
|
|
|
|||
Total assets |
|
$ |
4,603.5 |
|
|
4,462.9 |
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|||
Current portion of debt |
|
$ |
110.0 |
|
|
60.0 |
|
Accounts payable |
|
|
292.6 |
|
|
264.1 |
|
Accrued expenses |
|
|
216.2 |
|
|
241.0 |
|
Current portion of operating lease liabilities |
|
|
98.2 |
|
|
96.2 |
|
Total current liabilities |
|
|
717.0 |
|
|
661.3 |
|
|
|
|
|
|
|||
Long-term debt |
|
|
125.0 |
|
|
200.0 |
|
Operating lease liabilities |
|
|
183.0 |
|
|
178.8 |
|
Deferred income taxes |
|
|
74.2 |
|
|
73.0 |
|
Other long-term liabilities |
|
|
8.7 |
|
|
1.0 |
|
|
|
|
|
|
|||
Stockholders' equity: |
|
|
|
|
|||
Preferred stock: |
|
|
— |
|
|
— |
|
Common stock: |
|
|
5.7 |
|
|
5.7 |
|
Additional paid-in capital |
|
|
63.6 |
|
|
41.0 |
|
Retained earnings |
|
|
3,500.8 |
|
|
3,356.9 |
|
Accumulated other comprehensive loss |
|
|
(74.5 |
) |
|
(54.8 |
) |
Total stockholders' equity |
|
|
3,495.6 |
|
|
3,348.8 |
|
Total liabilities and stockholders' equity |
|
$ |
4,603.5 |
|
|
4,462.9 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
|||||||||||||
Condensed Consolidated Statements of Income |
|||||||||||||
(Amounts in millions except income per share) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
(Unaudited) |
|
(Unaudited) |
||||||||||
|
Six Months Ended
|
|
Three Months Ended
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Net sales |
$ |
3,811.3 |
|
|
3,742.2 |
|
|
$ |
1,916.2 |
|
|
1,883.1 |
|
Cost of sales |
|
2,086.2 |
|
|
2,034.7 |
|
|
|
1,052.7 |
|
|
1,025.6 |
|
Gross profit |
|
1,725.1 |
|
|
1,707.5 |
|
|
|
863.5 |
|
|
857.5 |
|
|
|
|
|
|
|
|
|
||||||
Selling, general, and administrative expenses |
|
948.0 |
|
|
919.4 |
|
|
|
476.6 |
|
|
462.6 |
|
Operating income |
|
777.1 |
|
|
788.1 |
|
|
|
386.9 |
|
|
394.9 |
|
|
|
|
|
|
|
|
|
||||||
Interest income |
|
2.9 |
|
|
1.0 |
|
|
|
1.3 |
|
|
0.6 |
|
Interest expense |
|
(3.8 |
) |
|
(6.8 |
) |
|
|
(1.8 |
) |
|
(2.9 |
) |
Income before income taxes |
|
776.2 |
|
|
782.3 |
|
|
|
386.4 |
|
|
392.6 |
|
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
185.8 |
|
|
189.2 |
|
|
|
93.7 |
|
|
94.6 |
|
Net income |
$ |
590.4 |
|
|
593.1 |
|
|
$ |
292.7 |
|
|
298.0 |
|
|
|
|
|
|
|
|
|
||||||
Basic net income per share |
$ |
1.03 |
|
|
1.04 |
|
|
$ |
0.51 |
|
|
0.52 |
|
Diluted net income per share |
$ |
1.03 |
|
|
1.04 |
|
|
$ |
0.51 |
|
|
0.52 |
|
|
|
|
|
|
|
|
|
||||||
Basic weighted average shares outstanding |
|
572.5 |
|
|
571.0 |
|
|
|
572.6 |
|
|
571.1 |
|
Diluted weighted average shares outstanding |
|
574.1 |
|
|
572.8 |
|
|
|
574.1 |
|
|
572.9 |
|
FASTENAL COMPANY AND SUBSIDIARIES |
|||||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||||
(Amounts in millions) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
(Unaudited) |
|
(Unaudited) |
||||||||||
|
Six Months Ended
|
|
Three Months Ended
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||
Net income |
$ |
590.4 |
|
|
593.1 |
|
|
$ |
292.7 |
|
|
298.0 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||
Depreciation of property and equipment |
|
81.2 |
|
|
84.0 |
|
|
|
41.0 |
|
|
42.2 |
|
Gain on sale of property and equipment |
|
(1.7 |
) |
|
(1.2 |
) |
|
|
(1.1 |
) |
|
(0.6 |
) |
Bad debt (recoveries) expense |
|
(0.6 |
) |
|
0.2 |
|
|
|
0.3 |
|
|
1.6 |
|
Deferred income taxes |
|
1.2 |
|
|
0.6 |
|
|
|
0.4 |
|
|
0.3 |
|
Stock-based compensation |
|
4.0 |
|
|
3.8 |
|
|
|
2.0 |
|
|
1.9 |
|
Amortization of intangible assets |
|
5.4 |
|
|
5.4 |
|
|
|
2.7 |
|
|
2.7 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||
Trade accounts receivable |
|
(120.9 |
) |
|
(155.0 |
) |
|
|
6.7 |
|
|
(21.3 |
) |
Inventories |
|
12.2 |
|
|
145.6 |
|
|
|
(9.7 |
) |
|
87.9 |
|
Other current assets |
|
6.5 |
|
|
23.7 |
|
|
|
(28.4 |
) |
|
(21.7 |
) |
Accounts payable |
|
30.7 |
|
|
9.9 |
|
|
|
15.1 |
|
|
1.4 |
|
Accrued expenses |
|
(22.5 |
) |
|
(11.3 |
) |
|
|
9.4 |
|
|
0.6 |
|
Income taxes |
|
1.0 |
|
|
(6.6 |
) |
|
|
(73.5 |
) |
|
(90.5 |
) |
Other |
|
6.7 |
|
|
(1.6 |
) |
|
|
0.4 |
|
|
(0.4 |
) |
Net cash provided by operating activities |
|
593.6 |
|
|
690.6 |
|
|
|
258.0 |
|
|
302.1 |
|
|
|
|
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||
Purchases of property and equipment |
|
(106.9 |
) |
|
(89.6 |
) |
|
|
(56.1 |
) |
|
(55.9 |
) |
Proceeds from sale of property and equipment |
|
6.0 |
|
|
4.8 |
|
|
|
3.5 |
|
|
2.0 |
|
Other |
|
(0.2 |
) |
|
(0.4 |
) |
|
|
(0.1 |
) |
|
(0.3 |
) |
Net cash used in investing activities |
|
(101.1 |
) |
|
(85.2 |
) |
|
|
(52.7 |
) |
|
(54.2 |
) |
|
|
|
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||
Proceeds from debt obligations |
|
385.0 |
|
|
635.0 |
|
|
|
225.0 |
|
|
405.0 |
|
Payments against debt obligations |
|
(410.0 |
) |
|
(840.0 |
) |
|
|
(190.0 |
) |
|
(455.0 |
) |
Proceeds from exercise of stock options |
|
18.6 |
|
|
12.5 |
|
|
|
2.8 |
|
|
6.6 |
|
Cash dividends paid |
|
(446.5 |
) |
|
(399.7 |
) |
|
|
(223.3 |
) |
|
(199.9 |
) |
Net cash used in financing activities |
|
(452.9 |
) |
|
(592.2 |
) |
|
|
(185.5 |
) |
|
(243.3 |
) |
|
|
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents |
|
(5.4 |
) |
|
0.3 |
|
|
|
(1.4 |
) |
|
(0.8 |
) |
|
|
|
|
|
|
|
|
||||||
Net increase in cash and cash equivalents |
|
34.2 |
|
|
13.5 |
|
|
|
18.4 |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of period |
|
221.3 |
|
|
230.1 |
|
|
|
237.1 |
|
|
239.8 |
|
Cash and cash equivalents at end of period |
$ |
255.5 |
|
|
243.6 |
|
|
$ |
255.5 |
|
|
243.6 |
|
|
|
|
|
|
|
|
|
||||||
Supplemental information: |
|
|
|
|
|
|
|
||||||
Cash paid for interest |
$ |
4.2 |
|
|
8.2 |
|
|
$ |
1.8 |
|
|
3.1 |
|
Net cash paid for income taxes |
$ |
181.8 |
|
|
193.7 |
|
|
$ |
165.8 |
|
|
184.0 |
|
Leased assets obtained in exchange for new operating lease liabilities |
$ |
49.4 |
|
|
64.3 |
|
|
$ |
19.0 |
|
|
38.4 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240711727737/en/
Financial Reporting & Regulatory Compliance Manager
507.313.7959
Source: