Fastenal Company (Nasdaq:FAST) (collectively referred to as
'Fastenal' or by terms such as 'we', 'our', or 'us'), a leader in
the wholesale distribution of industrial and construction supplies,
today announced its financial results for the year and quarter
ended December 31, 2024. Except for share and per share
information, or as otherwise noted below, dollar amounts are stated
in millions. Throughout this document, percentage and dollar
calculations, which are based on non-rounded dollar values, may not
be able to be recalculated using the dollar values included in this
document due to the rounding of those dollar values. References to
daily sales rate (DSR) change may reflect either growth (positive)
or contraction (negative) for the applicable period. Beginning in
the first quarter of 2024, references to 'net earnings', 'operating
and administrative expenses', and 'earnings before income taxes'
have been revised in our condensed consolidated financial
statements and financial reports, including this document, to 'net
income', 'selling, general, and administrative (SG&A)
expenses', and 'income before income taxes', respectively, and are
calculated in conformity with U.S. GAAP.
PERFORMANCE SUMMARY
Twelve-month Period
Three-month Period
2024
2023
Change
2024
2023
Change
Net sales
$
7,546.0
7,346.7
2.7
%
$
1,824.5
1,758.6
3.7
%
Business days
255
253
63
62
Daily sales
$
29.6
29.0
1.9
%
$
29.0
28.4
2.1
%
Gross profit
$
3,401.9
3,354.5
1.4
%
$
818.2
799.4
2.3
%
% of net sales
45.1
%
45.7
%
44.8
%
45.5
%
SG&A expenses
$
1,891.9
1,825.8
3.6
%
$
473.4
445.5
6.2
%
% of net sales
25.1
%
24.9
%
25.9
%
25.3
%
Operating income
$
1,510.0
1,528.7
-1.2
%
$
344.8
353.9
-2.6
%
% of net sales
20.0
%
20.8
%
18.9
%
20.1
%
Income before income taxes
$
1,508.1
1,522.0
-0.9
%
$
344.3
354.2
-2.8
%
% of net sales
20.0
%
20.7
%
18.9
%
20.1
%
Net income
$
1,150.6
1,155.0
-0.4
%
$
262.1
266.4
-1.6
%
Diluted net income per share
$
2.00
2.02
-0.6
%
$
0.46
0.46
-1.9
%
Note – Daily sales are defined as the
total net sales for the period divided by the number of business
days (in the U.S.) in the period.
QUARTERLY RESULTS OF OPERATIONS
Sales
Net sales increased $65.9, or 3.7%, in the fourth quarter of
2024 when compared to the fourth quarter of 2023. There was one
more selling day in the fourth quarter of 2024 relative to the
prior year period and, taking this into consideration, our net
daily sales increased 2.1% in the fourth quarter of 2024 compared
to the fourth quarter of 2023. The slow rate of growth reflects
continuation of the soft manufacturing environment that has been
sustained throughout 2024. This was exacerbated by many of our
largest customers enacting unusually sharp production cuts in the
last two weeks of December during holiday-related plant shutdowns.
Changes in foreign exchange rates negatively affected sales in the
fourth quarter of 2024 by approximately 20 basis points as compared
to positively affecting sales in the fourth quarter of 2023 by
approximately 10 basis points.
An increase in unit sales in the fourth quarter of 2024 was
primarily due to growth at Onsite locations opened in the last two
years and, to a lesser extent, larger customers not serviced
through an Onsite. This more than offset weaker activity with
smaller customers and non-manufacturing end markets. The impact of
product pricing on net sales in the fourth quarter of 2024 was not
material, in contrast to the fourth quarter of 2023, when the
impact of product pricing was modestly positive. Price levels
remained relatively stable in the fourth quarter of 2024.
From a product standpoint, we have three categories: fasteners,
including fasteners used in original equipment manufacturing (OEM)
and maintenance, repair, and operations (MRO), safety supplies, and
other product lines, the latter of which includes eight smaller
product categories, such as tools, janitorial supplies, and cutting
tools. The rate of contraction of our fastener line eased in the
fourth quarter of 2024, but continued to lag our non-fastener
product lines. Product categories, like fasteners, that are more
closely aligned with final goods production tend to be more
significantly impacted by periods of weak industrial production,
such as we are currently experiencing. We achieved growth in our
safety category reflecting the lower volatility of PPE demand and
our success in growing our vending installed base. Moderation in
the rate of growth reflects a difficult comparison in our
warehousing end market as a result of strong holiday-related
shipments we experienced in the fourth quarter of 2023. Other
product lines experienced stronger growth from MRO-oriented lines,
such as electrical and janitorial, than from OEM-oriented lines,
such as tools, cutting tool, and welding and abrasives. The DSR
change when compared to the same period in the prior year and the
percent of sales in the period were as follows:
DSR Change
Three-month Period
% of Sales
Three-month Period
2024
2023
2024
2023
OEM fasteners
0.4
%
-1.2
%
19.0
%
19.4
%
MRO fasteners
-4.5
%
-4.1
%
10.9
%
11.7
%
Total fasteners
-1.4
%
-2.3
%
29.9
%
31.1
%
Safety supplies
4.8
%
9.4
%
23.0
%
22.5
%
Other product lines
4.0
%
5.3
%
47.1
%
46.4
%
Total non-fasteners
4.3
%
6.6
%
70.1
%
68.9
%
From an end market standpoint, we have five categories: heavy
manufacturing, other manufacturing, non-residential construction,
reseller, and other, the latter of which includes
government/education and transportation/warehousing. Our
manufacturing end markets outperformed primarily due to the
relative strength we are experiencing with key account customers
with significant managed spend where our service model and
technology is particularly impactful. This disproportionately
benefits manufacturing customers. We believe weakness in our
reseller end market reflected efforts in many industries to reduce
channel inventories. Other end market sales were favorably impacted
by growth with state and local government customers and data center
customers. The DSR change when compared to the same period in the
prior year and the percent of sales in the period were as
follows:
DSR Change
Three-month Period
% of Sales
Three-month Period
2024
2023
2024
2023
Heavy manufacturing
1.7
%
5.8
%
42.3
%
42.5
%
Other manufacturing
5.4
%
3.3
%
32.0
%
31.1
%
Total manufacturing
3.3
%
4.7
%
74.3
%
73.6
%
Non-residential construction
-4.1
%
-7.4
%
8.2
%
8.8
%
Reseller
-11.3
%
-7.9
%
4.9
%
5.6
%
Other end markets
7.6
%
13.5
%
12.6
%
12.0
%
Total non-manufacturing
-0.3
%
0.9
%
25.7
%
26.4
%
We report our customers in two categories: national accounts,
which are customers with significant revenue potential and a
national, multi-site contract, and non-national accounts, which
include large regional customers, small local customers, and
government customers. We continued to experience a divergence in
the performance of our national account customers versus our
non-national account customers, which relates to the relative
growth of our sales through Onsite locations and larger, key
accounts. The DSR change when compared to the same period in the
prior year and the percent of sales in the period were as
follows:
DSR Change
Three-month Period
% of Sales
Three-month Period
2024
2023
2024
2023
National accounts
4.2
%
8.5
%
64.2
%
62.0
%
Non-national accounts
-1.0
%
-3.2
%
35.8
%
38.0
%
Growth Drivers
- We signed 56 new Onsite locations (defined as dedicated sales
and service provided from within, or in proximity to, the
customer's facility) in the fourth quarter of 2024, resulting in
358 new Onsite location signings for the full year. The full year
number was below our goal of 375 to 400 signings, though did
constitute an increase from 2023 (326 signings) and was consistent
with previous peak signing years in 2019 (362 signings) and 2022
(356 signings). We had 2,031 active sites on December 31, 2024,
which represented an increase of 11.5% from December 31, 2023.
Daily sales through our Onsite locations, excluding sales
transferred from branches to new Onsites, grew at a mid
single-digit rate in the fourth quarter of 2024 over the fourth
quarter of 2023. This growth is due to contributions from Onsites
activated and implemented in 2024 and 2023, which more than offset
the impact of closures and the associated decline in revenues from
Onsites activated prior to 2023.
- FMI Technology comprises our FASTStock℠ (scanned stocking
locations), FASTBin® (infrared, RFID, and scaled bins), and
FASTVend® (vending devices) offerings. FASTStock's fulfillment
processing technology is not embedded, is relatively less expensive
and highly flexible in application, and delivered using our
proprietary mobility technology. FASTBin and FASTVend incorporate
highly efficient and powerful embedded data tracking and
fulfillment processing technologies. The first statistic is a
weighted FMI® measure, which combines the signings and
installations of FASTBin and FASTVend in a standardized machine
equivalent unit (MEU) based on the expected output of each type of
device. We do not include FASTStock in this measurement because
scanned stocking locations can take many forms, such as bins,
shelves, cabinets, pallets, etc., that cannot be converted into a
standardized MEU. The second statistic is sales through FMI
Technology, which combines the sales through FASTStock,
FASTBin, and FASTVend. A portion of the growth in sales experienced
by FMI, particularly FASTStock and FASTBin, reflects the migration
of products from less efficient non-digital stocking locations to
more efficient, digital stocking locations.
- We signed 6,790 weighted FASTBin and FASTVend devices in the
fourth quarter of 2024, resulting in 27,984 new FASTBin and
FASTVend signings for the full year. This was consistent with our
goal of signing between 26,000 and 28,000 MEUs in 2024. Our goal
for weighted FASTBin and FASTVend device signings in 2025 is
between 28,000 to 30,000 MEUs. The table below summarizes the
signings and installations of, and sales through, our FMI
devices.
Twelve-month Period
Three-month Period
2024
2023
Change
2024
2023
Change
Weighted FASTBin/FASTVend signings
(MEUs)
27,984
24,126
16.0
%
6,790
5,462
24.3
%
Signings per day
110
95
108
88
Weighted FASTBin/FASTVend
installations
(MEUs; end of period)
126,957
113,138
12.2
%
FASTStock sales
$
956.6
927.6
3.1
%
$
227.6
219.0
3.9
%
% of sales
12.5
%
12.5
%
12.3
%
12.3
%
FASTBin/FASTVend sales
$
2,295.5
2,070.2
10.9
%
$
584.8
519.6
12.6
%
% of sales
30.0
%
27.8
%
31.6
%
29.2
%
FMI sales
$
3,252.1
2,997.8
8.5
%
$
812.4
738.6
10.0
%
FMI daily sales
$
12.8
11.8
7.6
%
$
12.9
11.9
8.2
%
% of sales
42.5
%
40.3
%
43.9
%
41.5
%
- Our eBusiness includes eProcurement activities, which are
integrated transactions, including electronic data interchange
(EDI), and eCommerce (transactional website sales). Growth of our
eBusiness reflects both new sales that enhance our growth rate and
a shift in existing sales from non-digital to digital processes
that improves efficiency. Daily sales through eBusiness grew 27.6%
in the fourth quarter of 2024 and represented 30.9% of our total
sales in the period. In the fourth quarter of 2024, daily sales
through eProcurement and eCommerce grew 37.6% and 2.0%,
respectively.
Our digital products and services are comprised of sales through
FMI (FASTStock, FASTBin, and FASTVend) plus that proportion of our
eBusiness sales that do not represent billings of FMI services
(collectively, our Digital Footprint). We believe the data that is
created through our digital capabilities enhances product
visibility, traceability, and control that reduces risk in
operations and creates ordering and fulfillment efficiencies for
both us and our customers. As a result, we believe our opportunity
to grow our business will be enhanced through the continued
development and expansion of our digital capabilities.
Our Digital Footprint in the fourth quarter of 2024 represented
62.2% of our sales, an increase from 58.1% of sales in the fourth
quarter of 2023. We expect that at some point during 2025, 66% to
68% of our sales volume will run through our Digital Footprint.
Gross Profit
Our gross profit, as a percentage of net sales, decreased to
44.8% in the fourth quarter of 2024 from 45.5% in the fourth
quarter of 2023. Our gross profit percentage was primarily impacted
by three factors. First, we experienced unfavorable customer and
product mix. This reflects relatively stronger growth from large
customers, including Onsite customers, and non-fastener products,
each of which tend to have a lower gross profit percentage than our
business as a whole. Second, we experienced pressure on fastener
and safety product margins related to higher freight and shipping
costs, the negative effect of which should moderate as we enter
2025. Third, we experienced higher import duty fees. This was a
result of both relatively low fees in the fourth quarter of 2023
creating a difficult comparison and duties related to Mexico,
although the impact of the latter began to ease relative to the
third quarter of 2024.
SG&A Expenses
Our SG&A expenses, as a percentage of net sales, were 25.9%
in the fourth quarter of 2024 versus 25.3% in the fourth quarter of
2023. Fourth quarters traditionally experience seasonally low
sales, and in the fourth quarter of 2024 that was exacerbated by
soft underlying business activity and unusually sharp production
cuts during holiday-related plant shutdowns. Combined with
continued investment in our business, the quarter produced low
volume that resulted in deleveraging of SG&A expenses, which
increased 6.2%, or above the rate of net sales growth.
Employee-related expenses, which represent 70% to 75% of total
SG&A expenses, increased 3.1% in the fourth quarter of 2024
compared to the fourth quarter of 2023. We experienced an increase
in employee base pay due to higher average FTE and, to a lesser
degree, higher average wages during the period, as well as higher
health insurance costs. This was partly offset by lower bonus and
commission payments reflecting slower sales and profit growth
versus the fourth quarter of 2023.
Occupancy-related expenses, which represent 15% to 20% of total
SG&A expenses, increased 4.3% in the fourth quarter of 2024
compared to the fourth quarter of 2023. This was primarily a result
of modest increases in a number of cost categories, including
general inflation in branch costs, incremental depreciation and
other costs associated with hub investments and upgrades, and
higher depreciation from an increase in the installed base of FMI
hardware.
Combined, all other SG&A expenses, which represent 10% to
15% of total SG&A expenses, increased 31.2% in the fourth
quarter of 2024 compared to the fourth quarter of 2023.
Selling-related transportation costs were higher reflecting higher
lease costs as we refreshed our fleet of pick ups, which more than
offset lower fuel expense. We also incurred incremental expense
relating to currency revaluation of certain assets as the dollar
strengthened, particularly against the Mexican peso. We had
relatively smaller increases in IT expenses, general insurance
costs, and sales-related travel expense.
Operating Income
Our operating income, as a percentage of net sales, decreased to
18.9% in the fourth quarter of 2024 from 20.1% in the fourth
quarter of 2023.
Net Interest
We had lower interest income reflecting a reduction in capital
being invested in higher-earning short-term instruments during the
period. We had higher cash balances in the fourth quarter of 2023
prior to paying a special fifth dividend toward the end of the
period. We also had lower interest expense as a result of lower
average borrowings through the fourth quarter of 2024. The greater
reduction in interest income relative to interest expense resulted
in our generating net interest expense of $0.5 in the fourth
quarter of 2024, compared to net interest income of $0.3 in the
fourth quarter of 2023.
Income Taxes
We recorded income tax expense of $82.2 in the fourth quarter of
2024, or 23.9% of income before income taxes. Income tax expense
was $87.8 in the fourth quarter of 2023, or 24.8% of income before
income taxes. We believe our ongoing tax rate, absent any discrete
tax items or broader changes to tax law, will be approximately
24.5%. Our tax rate in the fourth quarter of 2024 was below our
expected ongoing tax rate due to the tax benefits associated with
the exercise of stock options.
Net Income
Our net income during the fourth quarter of 2024 was $262.1, a
decrease of 1.6% compared to the fourth quarter of 2023. Our
diluted net income per share was $0.46 in the fourth quarter of
2024, compared to $0.46 in the fourth quarter of 2023.
BALANCE SHEET AND CASH FLOW
Net cash provided by operating activities was $282.8 in the
fourth quarter of 2024, a decrease of 20.1% from the fourth quarter
of 2023, representing 107.9% of the period's net income versus
132.9% in the fourth quarter of 2023. The decrease in operating
cash flow, as a percent of net income, primarily reflects our
operating assets and liabilities being a use of cash in fourth
quarter of 2024 as compared to a significant source of cash in the
fourth quarter of 2023. This was primarily attributable to
relatively greater investment in inventory.
In 2024, net cash provided by operating activities was $1,173.3,
a decrease of 18.1% from 2023, representing 102.0% of the period's
net income versus 124.0% in 2023. The decrease in operating cash
flow, as a percent of net income, primarily reflects our operating
assets and liabilities being a significant use of cash in 2024 as
compared to a significant source of cash in 2023. This was
primarily attributable to investing in inventory in 2024 as opposed
to reducing inventory in 2023.
The dollar and percentage change in accounts receivable, net,
inventories, and accounts payable as of December 31, 2024 when
compared to December 31, 2023 were as follows:
December 31
Twelve-month
Dollar Change
Twelve-month
Percentage Change
2024
2023
2024
2024
Accounts receivable, net
$
1,108.6
1,087.6
$
21.0
1.9
%
Inventories
1,645.0
1,522.7
122.3
8.0
%
Trade working capital
$
2,753.6
2,610.3
$
143.3
5.5
%
Accounts payable
$
287.7
264.1
$
23.6
8.9
%
Trade working capital, net
$
2,465.9
2,346.2
$
119.7
5.1
%
Net sales in last three months
$
1,824.5
1,758.6
$
65.9
3.7
%
Note - Amounts may not foot due to rounding difference.
The increase in our accounts receivable balance in the fourth
quarter of 2024 was primarily attributable to growth in sales to
our customers.
The increase in our inventory balance in the fourth quarter of
2024 was primarily attributable to three factors. First, our
inventory increased as a result of growth in sales to our customers
and the addition of stock to ensure we can support our customers'
future growth. Second, we added $30.0 to $35.0 in stock to improve
service to our in-market locations and generate efficiencies in our
hubs. Third, we took advantage of year-end opportunities arising
from our suppliers' desire to reduce inventory at year-end. These
factors more than offset the effects of soft underlying business
activity and modest product cost deflation.
The increase in our accounts payable balance in the fourth
quarter of 2024 was primarily attributable to an increase in our
product purchases as reflected in the growth in inventories.
During the fourth quarter of 2024, our investment in property
and equipment, net of proceeds from sales, was $57.4, which was an
increase from $32.9 in the fourth quarter of 2023. In 2024, our
investment in property and equipment, net of proceeds from sales,
was $214.1, which was an increase from $160.6 in 2023, but below
our anticipated range of $235.0 to $255.0. The reduction in capital
spend was due to lower demand to install incremental picking
modules at our in-market locations than anticipated and, to a
lesser degree, lower spending on FMI bins due to lower FASTBin
signings and installations than anticipated.
For 2025, we expect our investment in property and equipment,
net of proceeds from sales, to be within a range of $265.0 to
$285.0, an increase from $214.1 in 2024. This increase reflects
three items. First, we expect elevated IT spending as projects that
were expected in 2024 experienced delays and will occur in 2025.
Second, we expect higher distribution center spending to complete
our upgraded Utah hub, begin construction on a new Atlanta hub, and
improve our picking capacity and efficiency across our hub network.
Third, we expect greater outlays for FMI hardware reflecting an
increase in our targeted signings.
During the fourth quarter of 2024, we returned $223.4 to our
shareholders in the form of dividends, compared to the fourth
quarter of 2023 when we returned $417.3 to our shareholders in the
form of dividends. The latter value included a special fifth
dividend paid in the fourth quarter of 2023. Excluding this special
dividend payment, our regular dividend payment was up 11.7% in the
fourth quarter of 2024. In 2024, we returned $893.3 to our
shareholders in the form of dividends, compared to 2023 when we
returned $1,016.8 to our shareholders in the form of dividends. The
latter value included a special fifth dividend paid in the fourth
quarter of 2023. Excluding this special dividend payment, our
regular dividend payment was up 11.7% in 2024. We did not
repurchase any of our common stock in 2024 or 2023.
Total debt on our balance sheet was $200.0 at the end of 2024,
or 5.2% of total capital (the sum of stockholders' equity and total
debt). This compares to $260.0, or 7.2% of total capital, at the
end of 2023.
ADDITIONAL INFORMATION
The table below summarizes our absolute and full time equivalent
(FTE; based on 40 hours per week) employee headcount, our
investments related to in-market locations (defined as the sum of
the total number of branch locations and the total number of active
Onsite locations), and weighted FMI devices at the end of the
periods presented and the percentage change compared to the end of
the prior periods.
Change
Since:
Change
Since:
Q4
2024
Q3
2024
Q3
2024
Q4
2023
Q4
2023
Selling personnel - absolute employee
headcount
16,712
16,666
0.3
%
16,512
1.2
%
Selling personnel - FTE employee
headcount
15,055
15,080
-0.2
%
15,070
-0.1
%
Total personnel - absolute employee
headcount
23,702
23,518
0.8
%
23,201
2.2
%
Total personnel - FTE employee
headcount
20,958
20,894
0.3
%
20,721
1.1
%
Number of branch locations
1,597
1,597
—
%
1,597
—
%
Number of active Onsite locations
2,031
1,986
2.3
%
1,822
11.5
%
Number of in-market locations
3,628
3,583
1.3
%
3,419
6.1
%
Weighted FMI devices (MEU installed
count)
126,957
123,193
3.1
%
113,138
12.2
%
During the last twelve months, we increased our total FTE
employee headcount by 237. Our total FTE selling and sales support
personnel decreased by 15. While we added FTE to support growth in
our Onsite locations, we reduced personnel at our branch locations
reflecting both shifts to Onsite locations and tight management of
headcount given challenging business conditions. We had an increase
in our distribution and transportation FTE personnel of 115 to
support increased product throughput at our distribution
facilities. We had an increase in our remaining FTE personnel of
137 which related primarily to personnel investments in
manufacturing, quality control, IT, and business analytics.
The table below summarizes the number of branches opened and
closed, net of conversions, as well as the number of Onsites
activated and closed, net of conversions during the periods
presented.
Twelve-month Period
Three-month Period
2024
2023
2024
2023
Branch openings
11
10
4
2
Branch closures, net of conversions
(11
)
(96
)
(4
)
(20
)
% of net closures vs. prior year-end
number of branch locations
-0.7
%
-5.7
%
-0.3
%
-1.2
%
Onsite activations
343
329
75
77
Onsite closures, net of conversions
(134
)
(130
)
(30
)
(33
)
% of net closures vs. prior year-end
number of Onsite locations
-7.4
%
-8.0
%
-1.6
%
-2.0
%
Our in-market network forms the foundation of our business
strategy. In recent years, we have seen a gradual increase in our
in-market locations. This has reflected significant growth in
Onsites and, to a lesser degree, international branches, which has
more than overcome a meaningful decline in our traditional branch
network from a strategic rationalization that aligned our physical
footprint with changes in our business strategies. Branch closures
may occur in the future to reflect normal churn in our business,
but the strategic rationalization has concluded. As a result, we
expect to see an increase in the rate of in-market location growth
as we continue to open Onsites while our traditional branch network
remains stable or grows moderately to sustain and improve our North
American network, to continue our global expansion beyond North
America, and to support our growth drivers. This dynamic played out
in 2024.
CONFERENCE CALL TO DISCUSS QUARTERLY AND ANNUAL
RESULTS
As we previously disclosed, we will host a conference call today
to review the quarterly and annual results, as well as current
operations. This conference call will be broadcast live over the
Internet at 9:00 a.m., central time. To access the webcast, please
go to our Investor Relations Website at
https://investor.fastenal.com/events.cfm.
ADDITIONAL MONTHLY AND QUARTERLY INFORMATION
We publish on the 'Investor Relations' page of our website at
www.fastenal.com both our monthly consolidated net sales
information and the presentation for our quarterly conference call
(which includes information, supplemental to that contained in our
earnings announcement, regarding results for the quarter). We
expect to publish the consolidated net sales information for each
month, other than the third month of a quarter, at 6:00 a.m.,
central time, on the fourth business day of the following month. We
expect to publish the consolidated net sales information for the
third month of each quarter and the conference call presentation
for each quarter at 6:00 a.m., central time, on the date our
earnings announcement for such quarter is publicly released.
FORWARD LOOKING STATEMENTS
Certain statements contained in this document do not relate
strictly to historical or current facts. As such, they are
considered 'forward-looking statements' that provide current
expectations or forecasts of future events. These forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements
can be identified by the use of terminology such as anticipate,
believe, should, estimate, expect, intend, may, will, plan, goal,
project, hope, trend, target, opportunity, and similar words or
expressions, or by references to typical outcomes. Any statement
that is not a historical fact, including estimates, projections,
future trends, and the outcome of events that have not yet
occurred, is a forward-looking statement. Our forward-looking
statements generally relate to our expectations and beliefs
regarding the business environment in which we operate, our
projections of future performance, our perceived marketplace
opportunities including our prospects to capture long-term value
from certain warehousing customers and the related end market, our
strategies, goals, mission, and vision, and our expectations about
future capital expenditures, future tax rates, future inventory
levels, pricing, future Onsite and weighted FMI device signings,
future sales attributable to our Digital Footprint, investment in
property and equipment, the impact of inflation or deflation on our
cost of goods, controlling SG&A expenses including FTE growth,
future traditional branch closures and openings, the impact of
fluctuations in freight and shipping costs, future operating
results and business activity, and the impact of natural disasters
on daily sales. You should understand that forward-looking
statements involve a variety of risks and uncertainties, known and
unknown (including risks disclosed in our most recent annual and
quarterly reports), and may be affected by inaccurate assumptions.
Consequently, no forward-looking statement can be guaranteed and
actual results may vary materially. Factors that could cause our
actual results to differ from those discussed in the
forward-looking statements include, but are not limited to, those
detailed in our most recent annual and quarterly reports. Each
forward-looking statement speaks only as of the date on which such
statement is made, and we undertake no obligation to update any
such statement to reflect events or circumstances arising after
such date. FAST-E
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Amounts in millions except share
and per share information)
December 31, 2024
December 31, 2023
Assets
(Unaudited)
Current assets:
Cash and cash equivalents
$
255.8
221.3
Trade accounts receivable, net of
allowance for credit losses of $5.2 and $6.4,
respectively
1,108.6
1,087.6
Inventories
1,645.0
1,522.7
Prepaid income taxes
18.8
17.5
Other current assets
183.7
171.8
Total current assets
3,211.9
3,020.9
Property and equipment, net
1,056.6
1,011.1
Operating lease right-of-use assets
279.2
270.2
Other assets
150.3
160.7
Total assets
$
4,698.0
4,462.9
Liabilities and Stockholders'
Equity
Current liabilities:
Current portion of debt
$
75.0
60.0
Accounts payable
287.7
264.1
Accrued expenses
225.6
241.0
Current portion of operating lease
liabilities
98.8
96.2
Total current liabilities
687.1
661.3
Long-term debt
125.0
200.0
Operating lease liabilities
186.6
178.8
Deferred income taxes
68.9
73.0
Other long-term liabilities
14.1
1.0
Stockholders' equity:
Preferred stock: $0.01 par value,
5,000,000 shares authorized, no shares issued or
outstanding
—
—
Common stock: $0.01 par value, 800,000,000
shares authorized, 573,320,452 and
571,982,367 shares issued and outstanding,
respectively
5.7
5.7
Additional paid-in capital
88.6
41.0
Retained earnings
3,613.5
3,356.9
Accumulated other comprehensive loss
(91.5
)
(54.8
)
Total stockholders' equity
3,616.3
3,348.8
Total liabilities and stockholders'
equity
$
4,698.0
4,462.9
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Statements
of Income
(Amounts in millions except
income per share)
Year Ended
December 31,
Three Months Ended
December 31,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
Net sales
$
7,546.0
7,346.7
$
1,824.5
1,758.6
Cost of sales
4,144.1
3,992.2
1,006.3
959.2
Gross profit
3,401.9
3,354.5
818.2
799.4
Selling, general, and administrative
expenses
1,891.9
1,825.8
473.4
445.5
Operating income
1,510.0
1,528.7
344.8
353.9
Interest income
5.4
4.1
1.2
2.3
Interest expense
(7.3
)
(10.8
)
(1.7
)
(2.0
)
Income before income taxes
1,508.1
1,522.0
344.3
354.2
Income tax expense
357.5
367.0
82.2
87.8
Net income
$
1,150.6
1,155.0
$
262.1
266.4
Basic net income per share
$
2.01
2.02
$
0.46
0.47
Diluted net income per share
$
2.00
2.02
$
0.46
0.46
Basic weighted average shares
outstanding
572.7
571.3
573.2
571.7
Diluted weighted average shares
outstanding
574.3
573.0
574.7
573.4
FASTENAL COMPANY AND
SUBSIDIARIES
Condensed Consolidated Statements
of Cash Flows
(Amounts in millions)
Year Ended
December 31,
Three Months Ended
December 31,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income
$
1,150.6
1,155.0
$
262.1
266.4
Adjustments to reconcile net income to net
cash provided by
operating activities:
Depreciation of property and equipment
164.7
166.6
41.7
40.5
Gain on sale of property and equipment
(3.8
)
(4.3
)
(0.8
)
(1.6
)
Bad debt expense
1.3
2.2
1.5
0.8
Deferred income taxes
(4.1
)
(10.7
)
(6.9
)
(6.3
)
Stock-based compensation
8.0
7.3
2.0
1.7
Amortization of intangible assets
10.7
10.7
2.7
2.7
Changes in operating assets and
liabilities:
Trade accounts receivable
(31.9
)
(72.3
)
81.6
87.2
Inventories
(133.9
)
189.1
(97.7
)
(2.6
)
Other current assets
(11.9
)
(6.4
)
7.7
(21.8
)
Accounts payable
27.5
8.4
(12.8
)
(13.3
)
Accrued expenses
(16.5
)
(0.6
)
(1.7
)
4.1
Income taxes
(1.3
)
(9.4
)
(2.0
)
(2.2
)
Other
13.9
(2.9
)
5.4
(1.6
)
Net cash provided by operating
activities
1,173.3
1,432.7
282.8
354.0
Cash flows from investing activities:
Purchases of property and equipment
(226.5
)
(172.8
)
(60.2
)
(36.3
)
Proceeds from sale of property and
equipment
12.4
12.2
2.8
3.4
Other
(0.4
)
(0.6
)
(0.1
)
(0.1
)
Net cash used in investing activities
(214.5
)
(161.2
)
(57.5
)
(33.0
)
Cash flows from financing activities:
Proceeds from debt obligations
775.0
880.0
185.0
90.0
Payments against debt obligations
(835.0
)
(1,175.0
)
(225.0
)
(90.0
)
Proceeds from exercise of stock
options
39.6
30.1
13.3
14.7
Cash dividends paid
(893.3
)
(1,016.8
)
(223.4
)
(417.3
)
Net cash used in financing activities
(913.7
)
(1,281.7
)
(250.1
)
(402.6
)
Effect of exchange rate changes on cash
and cash equivalents
(10.6
)
1.4
(11.6
)
5.4
Net increase (decrease) in cash and cash
equivalents
34.5
(8.8
)
(36.4
)
(76.2
)
Cash and cash equivalents at beginning of
period
221.3
230.1
292.2
297.5
Cash and cash equivalents at end of
period
$
255.8
221.3
$
255.8
221.3
Supplemental information:
Cash paid for interest
$
7.8
12.2
$
1.8
1.9
Net cash paid for income taxes
$
356.5
383.0
$
87.1
95.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250116950607/en/
Taylor Ranta Oborski Accounting Manager 507.313.7959
Fastenal (NASDAQ:FAST)
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