Fastenal Company · NASDAQ:FAST
Fastenal — Q1 2022 Earnings Presentation
14 slides from Fastenal's earnings presentation, Apr 13, 2022
Slide 1: Investor Teleconference Presentation First Quarter 2022
Investor Teleconference Presentation First Quarter 2022 Fastenal Company April 13, 2022 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, as well as expectations regarding operations, including gross margin, future inventory levels, pricing, Onsite and weighted FMI device signings, the size of our U.S./
Slide 3: CEO Messages on 1Q22
CEO Messages on 1Q22 Daily Sales Rate (DSR) Growth • Net sales grew 20.3% and pre-tax profit grew 28.0% 20% 18.4% versus 1Q21 amid robust demand, healthy pricing, and 18% good execution. It also benefited from an extra business 16% 14.6% day and the absence of last year's severe weather and 14% mask
Slide 4: Performance Summary
Performance Summary (Comparison to 2020 Periods) Three Months Ended March 31, 2022 2020 Change Net sales $ 1,704.1 1,367.0 24.7% Business days 64 64 Daily sales $ 26.6 21.4 24.7% Gross profit $ 793.3 636.8 24.6% % of net sales 46.6% 46.6% Operating and administrative expenses $ 435.3 365.5 19.1% % o
Slide 5: 1Q22 Growth Driver Update
1Q22 Growth Driver Update Onsite Signings and Active Locations • Onsites: We had 106 signings in 1Q22 and finished with 1,440 150 1,285 1,500 active sites, +12.1% from 1Q21. Daily sales, excluding 1,440 1,179 transferred branch sales, grew more than 20% from 1Q21. Our 120 1,200 106 2022 goal remains
Slide 6: 1Q22 Business Cadence
1Q22 Business Cadence End Market Daily Sales Rate (DSR) Growth • U.S. PMI averaged 57.8 in 1Q22. U.S. Industrial Production in 40% Jan./Feb. 2022 rose 5.1% over 1Q21. The data reflects 30% 29.0% favorable manufacturing conditions, which is reinforced by 23.9% positive sentiment from our field sales
Slide 7: 1Q22 Margin Summary
1Q22 Margin Summary Gross Profit Margin • Higher gross margin reflects two items. First, the absence of 50% last year's mask write-down added 60 bps. Second, product 46.6% 46.6% margin was higher. Safety margins returned to pre-pandemic 45.4% levels, more than offsetting slightly lower fastener marg
Slide 8: 1Q22 Cash Flow Profile
1Q22 Cash Flow Profile Operating Cash Flow • 1Q22 operating cash flow was $230.0, or 85.3% of net (in millions) 350 earnings. The lower conversion rate reflects increases in 300 130.5% working capital to support growth and account for inflation. 119.0% 85.3% 250 • Inventory increased 22.6%. Inflatio
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) 1Q22 1Q21 (Amounts in millions) 1Q22 1Q21 Operating Income $ 1,295.1 1,150.8 Net Earnings $ 984.0 867.1 Income Tax Expense (301.6) (274.3) Tota
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** (0.1%) 0.8% 3.4% 4.1% 0.1% 2.2% 1.9% 8.5% (3.3%) 3.1% 3.4% 11.9% (2.1%) 9.5% (3
Slide 12: Employee Statistics
Employee Statistics Absolute Count FTE Count (1) HEADCOUNT STATISTICS Change Change Since Change Since Change 1Q22 4Q21 4Q21 1Q21 Since 1Q21 1Q22 4Q21 4Q21 1Q21 Since 1Q21 In-market locations (branches & Onsites) 12,855 12,464 3.1% 12,683 1.4% 11,644 11,337 2.7% 11,323 2.8% Non-in-market selling 2,2
Slide 13: In-Market Location Statistics
In-Market Location Statistics BRANCH STATISTICS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 New Branch Openings 1Q 28 11 9 2 17 5 0 3 3 2 6 2Q 25 22 8 6 10 5 5 3 4 5 3Q 20 11 5 5 8 5 3 2 3 1 4Q 7 9 2 28 5 3 3 4 2 2 Cumulative 80 53 24 41 40 18 11 12 12 10 6 Closed/Converted Branches, Net
Slide 14: End Market Profile
End Market Profile End Market Mix — Full Year 2021 Transportation/ Other, 3.0% Warehousing, 4.9% Gov't/Education, 4.6% Reseller, 7.5% Manufacturing, 41.9% Construction, 11.1% Mfg - Heavy Equip., 27.0% MAJOR SEGMENT GROWTH Year- Full (Daily Sales rates) Jan. Feb. Mar. to-Date Apr. May June July Aug.