Fastenal Company · NASDAQ:FAST
Fastenal — Q1 2024 Earnings Presentation
14 slides from Fastenal's earnings presentation, Apr 11, 2024
Slide 1: First Quarter Investor Teleconference
2024 FIRST QUARTER INVESTOR TELECONFERENCE APRIL11, 2024 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT All statements made herein that are not historical facts (e.g., future operating results, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, future inventory levels, pricing, Onsite and weight
Slide 3: CEO Messages on 1Q24
CEO MESSAGES ON 1Q24 • 1Q24 net sales were +1.9%. The core issue remains Daily Sales Rate (DSR) Growth poor demand. Encouragingly, the Purchasing Manager's 20% 18.4% 18.0% Index topped 50 in March, after 16 consecutive months 18% 16.0% sub-50. Still, such slow growth resulted in margin 16% pressure
Slide 4: 1Q24 Growth Driver Update
1Q24 GROWTH DRIVER UPDATE • Onsites: We had 102 signings in 1Q24. Active sites Onsite Signings and Active Locations finished at 1,872, +11.8% from 1Q23. Daily sales, 180 1,872 2,000 1,674 1,800 excluding transferred branch sales, grew low single- 160 1,440 1,600 digits from 1Q23 reflecting both weak
Slide 5: 1Q24 Business Cadence
1Q24 BUSINESS CADENCE • U.S. Industrial Production fell 0.3% in Jan./Feb. 2024 End Market Daily Sales Rate (DSR) Growth over 1Q23. Heavier manufacturing categories like 40% fabricated metal (-0.9%) and machinery (-5.3%) 30% remained weaker than the broader index. U.S. PMI averaged 49.1 in 1Q24. Marc
Slide 6: 1Q24 Margin Summary
1Q24 MARGIN SUMMARY Gross Profit Margin • Gross margin in 1Q24 was 45.5%, down from 45.7% in 50% 1Q23. Product and customer mix was a drag, partly offset by modestly positive price/cost that is recovering 46.6% 45.7% the deficit experienced in the year-earlier period and 45.5% 45% better utilization
Slide 7: 1Q24 Cash Flow Profile
1Q24 CASH FLOW PROFILE Operating Cash Flow (in millions) • 1Q24 operating cash flow was $335.6, or 112.7% of net 400 131.7% income, below 1Q23 (131.7%) but in line with historical 350 112.7% first quarter conversion rates. In 1Q23 we were just beginning to unwind layers of stock that we had built to
Slide 8: Appendix: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures The appendix includes information on our Return on Invested Capital ('ROIC'), which is a non-GAAP financial measure. We define ROIC as net operating profit less income tax expense divided by average invested capital over the trailing 12 months. We believe ROIC is
Slide 9: Return on Invested Capital
RETURN ON INVESTED CAPITAL* Calculation of Return on Invested Capital (ROIC) Reconciliation of ROIC to Return on Assets (ROA) TTM TTM TTM TTM (Amounts in millions) 1Q24 1Q23 (Amounts in millions) 1Q24 1Q23 Operating Income $ 1,525.7 1,488.8 Net Income $ 1,157.6 1,112.4 Income Tax Expense (364.5) (36
Slide 10: Sequential Trends
SEQUENTIAL TRENDS* Cum. Cum. Cum. Cum. Chg., Chg., Chg., Chg., Jan. Jan. Jan. Jan. Daily Sales Rate (DSR) to to to to BENCHMARKS Jan.* Feb. Mar. Mar. Apr. May Jun. Jun. Jul. Aug. Sep. Sep. Oct. Oct. Nov. Dec. BENCHMARK** 0.1% 1.6% 3.3% 4.9% (0.7%) 2.5% 1.4% 8.2% (3.2%) 2.7% 3.6% 11.5% (2.1%) 9.2% (3
Slide 11: Employee Statistics
EMPLOYEE STATISTICS Absolute Count FTE Count (1) Change Change Change Change HEADCOUNT Since Since Since Since STATISTICS 1Q24 4Q23 4Q23 1Q23 1Q23 1Q24 4Q23 4Q23 1Q23 1Q23 (2) Selling personnel 16,764 16,512 1.5% 16,178 3.6% 15,102 15,070 0.2% 14,704 2.7% Distribution/Transportation personnel 4,184
Slide 12: In-Market Location Statistics
IN-MARKET LOCATION STATISTICS Year-to- Date 2014 (1) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Starting Branches 2,687 2,637 2,622 2,503 2,383 2,227 2,114 2,003 1,793 1,683 1,597 Opened Branches 24 41 40 18 11 12 12 10 12 10 — Closed/Converted Branches (2) (74) (56) (159) (138) (167) (125) (
Slide 13: End Market Profile
END MARKET PROFILE End Market Mix - Full Year 2023 Transportation/ Other, 2.4% Warehousing, 4.6% Gov't/Education, 3.7% Heavy Manufacturing, 43.1% Reseller, 5.8% Non-Residential Construction, 9.1% All Other Manufacturing, 31.3% MAJOR SEGMENT GROWTH Year- Full (Daily Sales rates) Jan. Feb. Mar. to-Dat
Slide 14: Thank You
THANK YOU 14