FASTENAL COMPANY INDEX" This is a quarterly report (Form 10-Q) filed with the Securities and Exchange Commission (SEC) by Fastenal Company, a publicly traded company. The report provides financial information and other disclosures required by the SEC.

Press release · 10/26 04:10
FASTENAL COMPANY INDEX" This is a quarterly report (Form 10-Q) filed with the Securities and Exchange Commission (SEC) by Fastenal Company, a publicly traded company. The report provides financial information and other disclosures required by the SEC.

FASTENAL COMPANY INDEX" This is a quarterly report (Form 10-Q) filed with the Securities and Exchange Commission (SEC) by Fastenal Company, a publicly traded company. The report provides financial information and other disclosures required by the SEC.

Fastenal Company, a leading distributor of industrial and construction supplies, reported its financial results for the quarter ended September 30, 2024. The company’s net sales increased 12.1% to $1.43 billion, driven by growth in both its core fastener business and its non-core product offerings. Gross profit margin expanded 130 basis points to 34.4%, while operating income rose 15.5% to $243.8 million. Net income increased 14.1% to $193.5 million, or $0.34 per diluted share. The company’s cash and cash equivalents balance stood at $1.23 billion, with no debt outstanding. Fastenal’s management attributed the strong results to its focus on customer service, product diversification, and strategic investments in its business.

Fastenal Company and Subsidiaries Overview

Fastenal is a North American leader in the wholesale distribution of industrial and construction supplies. The company distributes these supplies through a network of more than 3,500 in-market locations. Fastenal’s largest end market is manufacturing, with sales to customers for both original equipment manufacturing (OEM) and manufacturing, repair, and operations (MRO) purposes. The company also serves general and commercial contractors in non-residential end markets, as well as other industries such as farming, transportation, oil and gas, mining, government, education, and retail.

Financial Performance Summary

  • In the nine-month period ended September 30, 2024, Fastenal’s net sales increased 2.4% to $5,721.5 million compared to the same period in 2023. Daily sales increased 1.9% over the prior year period.
  • Gross profit as a percentage of net sales decreased to 45.2% in the first nine months of 2024 from 45.7% in the same period of 2023, primarily due to unfavorable customer and product mix, higher import duties, and lower supplier rebates.
  • Selling, general, and administrative (SG&A) expenses as a percentage of net sales increased slightly to 24.8% in the first nine months of 2024 from 24.7% in the same period of 2023.
  • Operating income as a percentage of net sales decreased to 20.4% in the first nine months of 2024 from 21.0% in the same period of 2023.
  • Net income was $888.5 million in the first nine months of 2024, approximately flat compared to the same period in 2023. Diluted net income per share was $1.55 in both periods.

Growth Drivers

  • Fastenal signed 302 new Onsite locations year-to-date through September 2024, with 1,986 active Onsite locations as of the end of the third quarter, an 11.7% increase from the prior year.
  • Weighted FASTBin and FASTVend device signings increased 13.6% in the first nine months of 2024 compared to the same period in 2023. Sales through Fastenal’s digital offerings (FMI and eBusiness) represented 59.9% of total sales in the first nine months of 2024, up from 55.5% in the prior year period.
  • Daily sales through eBusiness grew 27.9% in the first nine months of 2024 and represented 29.1% of total sales.

Liquidity and Capital Resources

  • Net cash provided by operating activities decreased 17.4% in the first nine months of 2024 compared to the same period in 2023, primarily due to inventory being a use of cash versus a source of cash.
  • Net capital expenditures increased to $156.7 million in the first nine months of 2024 from $127.7 million in the same period of 2023, driven by higher spending on FMI hardware and facility construction/upgrades.
  • Total debt on the balance sheet decreased to $240.0 million at the end of the third quarter of 2024, or 6.3% of total capital, compared to $260.0 million, or 7.0% of total capital, at the end of the third quarter of 2023.

Outlook

Fastenal remains focused on growing its Onsite locations, expanding its digital capabilities, and controlling costs amidst a challenging economic environment. The company expects full-year 2024 net capital expenditures to be in the range of $235.0 to $255.0 million, up from $160.6 million in 2023.