Fastenal Company · NASDAQ:FAST
Fastenal — Q2 2021 Earnings Presentation
14 slides from Fastenal's earnings presentation, Jul 13, 2021
Slide 1: Investor Teleconference Presentation Second Quarter 2021
Investor Teleconference Presentation Second Quarter 2021 Fastenal Company July 13, 2021 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement All statements made herein that are not historical facts (e.g., future operating results and business activity in light of the COVID-19 pandemic, as well as expectations regarding operations, including gross margin, future inventory levels, pricing, Onsite and weighted FMI devi
Slide 3: CEO Messages on 2Q21
CEO Messages on 2Q21 Daily Sales Rate (DSR) Growth ◦ Sales to manufacturing and construction customers grew 18% 21.5% in 2Q21, but the fall-off of pandemic-related sales 16% from 2Q20 resulted in flat overall sales. 14% 12.2% ◦ We continue to manage costs well. Operating profit grew 12% 10.3% slight
Slide 4: 2Q21 Growth Driver Update
2Q21 Growth Driver Update Onsite Signings and Active Locations ◦ Onsites: 87 signings in 2Q21 were a second straight post- 150 1,500 1,323 pandemic high. We finished with 1,323 active sites, +9.2% 120 1,200 from 2Q20. Daily sales, excluding transferred branch sales, grew more than 25%. An improving
Slide 5: Two Year Results of Operations
Two Year Results of Operations (Comparison to 2019 Periods) Six-month Period Three-month Period 2021 2019 Change 2021 2019 Change Net sales $ 2,924.7 $ 2,677.7 9.2% $ 1,507.7 $ 1,368.4 10.2% Gross profit $ 1,344.1 $ 1,265.9 6.2% $ 700.7 $ 641.2 9.3 % % of net sales 46.0% 47.3% 46.5% 46.9% Operating
Slide 6: 2Q21 Business Cadence
2Q21 Business Cadence End Market Daily Sales Rate (DSR) Growth ◦ U.S. PMI averaged 60.8 in 2Q21. U.S. Industrial Production in 40% 32.6% Apr/May 2021 increased 14.2% versus 2Q20. The data reflects 30% strong manufacturing conditions, aided by an easy comparison. 24.5% 20% ◦ In 2Q21, fastener daily s
Slide 7: 2Q21 Margin Summary
2Q21 Margin Summary Gross Profit Margin ◦ Gross margin improved in 2Q21. Mix contributed, as the 50% fastener/non-fastener product growth gap widened faster 46.9% 46.5% than the large/small customer growth gap. We also 44.5% leveraged overhead/organizational costs on strong demand 45% from tradition
Slide 8: 2Q21 Cash Flow Profile
2Q21 Cash Flow Profile Operating Cash Flow ◦ 2Q21 operating cash flow was $171.5, or 71.6% of net income. (in millions) 350 Second quarter conversion rates tend to be lower, averaging 300 63.5% from 2Q15-2Q19, and in light of this we view our 2Q21 104.9% cash generation as healthy. It was below 2Q20
Slide 9: 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 10: Return on Invested Capital
Return on Invested Capital* Calculation of Return on Invested Capital Reconciliation of ROIC to Return on Assets (ROA) TTM TTM TTM TTM (Amounts in millions) 2Q21 2Q20 (Amounts in millions) 2Q21 2Q20 Operating Income $ 1,152.6 1,108.1 Net Earnings $ 867.9 833.7 (Income Tax Expense) (275.0) (264.0) To
Slide 11: Sequential Trends
Sequential Trends* Daily Sales Rate (DSR) Cum. Chg., Cum. Chg., Cum. Chg., Cum. Chg., BENCHMARKS Jan.* Feb. Mar. Jan. to Mar. Apr. May June Jan. to Jun. July Aug. Sep. Jan. to Sep. Oct. Jan. to Oct. Nov. Dec. BENCHMARK** (1.0%) 1.2% 3.1% 4.3% 0.1% 1.7% 1.8% 8.1% (3.4%) 3.3% 2.2% 10.3% (2.5%) 7.5% (4
Slide 12: Employee Statistics
Employee Statistics Absolute Count FTE Count 1 Change Change Change Change Change Change HEADCOUNT STATISTICS Since Since Since Since Since Since 2Q21 1Q21 1Q21 4Q20 4Q20 2Q20 2Q20 2Q21 1Q21 1Q21 4Q20 4Q20 2Q20 2Q20 In-market locations (branches & Onsites) 12,446 12,683 (1.9%) 12,680 (1.8%) 12,982 (
Slide 13: In-Market Location Statistics
In-Market Location Statistics BRANCH STATISTICS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 New Branch Openings 1Q 37 28 11 9 2 17 5 0 3 3 2 2Q 38 25 22 8 6 10 5 5 3 4 5 3Q 19 20 11 5 5 8 5 3 2 3 4Q 28 7 9 2 28 5 3 3 4 2 Cumulative 122 80 53 24 41 40 18 11 12 12 7 Closed/Converted Branche
Slide 14: End Market Profile
End Market Profile End Market Mix — 2019 End Market Mix — 2020 Transportation/ Other, 4.0% Other, 3.3% Transportation/ Warehousing, 2.6% Warehousing, 6.9% Gov't/Education, 3.7% Gov't/Education, 8.1% Manufacturing, 39.0% Manufacturing, 41.6% Reseller, 9.2% Reseller, 8.0% Construction, 12.9% Construct